Implementation, Evaluation, Control

Winds of Freedom

Implementation: We will use "Customer relationship management, (CRM) a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups. This is accomplished by organizing the company around customer segments, establishing and tracking customer interactions with the company, fostering customer-satisfying behaviors, and linking all processes of the company from its customers through its suppliers." (MKTG, Lamb Hair McDaniel, pg 293, chapt. 19) By using this method we can customize our product and service offering based on data generated through the interactions between the customer and the company and all of our company's decisions and actions are a direct result of customer information. By focusing on what satisfies our customers, we can build long-term relationships.

All our employees will be trained in customer knowledge management and empowerment to market our products. Being able to collect customer information through comments and feedback on product and service performance we will be able to learn ways to enhance our product and service offerings.

Because our company is small and internet based, each employee will be crossed trained so that they can fill in where needed. At the same time, each employee will have a specific job so that when a customer calls they will be able to talk to the same representative each time so that we can build customer trust. "Web-based interactions are an increasingly popular touch point for customers to communicate with companies on their own terms. Web users can evaluate and purchase products, make reservations input preferential data, and provide customer feedback on services and products,. Data from these Web-based interactions are then captured, compiled, and used to segment customers, refine marketing efforts, develop new products, and deliver and degree of individual customization to improve customer relationships." (MKTG, Lamb Hair McDaniel, pg 297, chapt. 19)

Within the company, we will have daily meetings to discuss what is going on, problems that are being encountered and brainstorm as to how to solve them. We will all be included, employee and employers, on the decision making on the spot as to what to do. We want our employees to feel like the company also belongs to them and what they think is important.

Every individual in the company will fill out daily paperwork so that we can keep track on if our timelines are being met and how our budget is being spent.

Evaluation: We will review all information on a daily basis and have weekly meetings to discuss if our objectives are being met and if not what to do to keep us on the right path.

Control: We will use the "marketing audit-a through, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization." (MKTG, Lamb Hair McDaniel, pg. 27, chapt. 2) This will be done every quarter so that we can allocate marketing resources efficiently.

In light of all of this, we want our company to be a delight not only to our customer, but to our employees as well. We want to build relationships along with building a company.

Marketing Mix

"True marketing "Delights" the customer." (Mr. Pinto, week 8)  "Advertising affects consumers' daily lives, informing them about products and services and influencing their attitudes, beliefs, and ultimately their purchases. ...Though advertising cannot change consumers' deeply rooted values and attitudes, advertising my succeed in transforming a person's negative attitude toward a product into a positive one." (MKTG, Lamb Hair McDaniel, pg 228, chapt. 15)
"The term marketing mix refers to a unique blend of product, place (distribution), promotion, and pricing strategies (often referred to as the four Ps) designed to produce mutually satisfying exchanges with a target market." (MKTG, Lamb Hair McDaniel, pg 24, chapt.2)

Product strategies: Our product is a fragrance made from all natural, organic ingredients, bottled in a reusable metal flask, inlaid with a brush metal design which will change seasonally, making it collector's item. The package is a wooden box with a simple graphic engraving. The box, which is also reusable, is strong enough to protect its contents. Our fragrance has a customer satisfaction guarantee.

"We buy things not only for what they do (benefits) but also for what they mean to us (status, quality, or reputation). (MKTG, Lamb Hair McDaniel, pg. 25, chapt. 2) People who buy our product align themselves with our socially responsible business and our commitment to environmental sustainability.

Place (distribution) strategies: With our target market in mind, the baby boomers who are always looking for time-saving devices, we will be implementing "Online retailing, or e-tailing, is a type of shopping available to consumers with personal computers and access to the Internet. Over 70 percent of Americans have Internet access at home or at work." (MKTG, Lamb Hair McDaniel, pg 201, chapt. 13)
"Opening an e-commerce site on the Internet immediately puts a company in the international marketplace. Sophisticated language translation software can make any site accessible to people around the world. Global shippers such as UPS, FedEx, and DHL help solve international e-commerce distribution complexities. Currency conversion software allows companies to post prices in U.S. dollars, then ask their customers what currency they wish to use for payment." (MKTG, Lamb Hair McDaniel, pg 60, chapt. 4)

Our company will also use just-in-time manufacturing. "Borrowed from the Japanese just-in-time production (JIT), sometimes called lean production, requires manufacturers to work closely with suppliers and transportation providers to get necessary items to the assembly line or factory floor at the precise time they are needed for production." (MKTG, Lamb Hair McDaniel, pg 185, chapt. 11) Using this method, our ingredients will always be fresh, and we will always have product available without having too much stock on hand sitting in a warehouse. "JIT means supplying customers with products in just a few days, or even a few hours, rather than weeks... JIT means lower costs, shorter lead times, and products that more closely meet the consumer's needs." (MKTG, Lamb Hair McDaniel, pg 185, chapt. 12)

Our promotional strategy will use the promotional mix which employs "several ingredients--which may include advertising, public relations, sales promotion, and personal selling--to reach our target market." (MKTG, Lamb Hair McDaniel, pg 211, chapt 14) We will advertise in appropriate magazines using inserts of samples of our fragrance. We will use billboards, television and transit cards. All advertisements will be simple, leading the potential customer to our interactive website. Our public relations will help us to maintain a positive image and also to educate the public about the company's goals and objectives about sustainability, producing a green, natural product, and to introduce new products, and help support the sales effort.

We will use the "modern views of personal selling which emphasize the relationship that develops between a sales person and a buyer. ...With relationship selling, the objective is to build long-term branded relationships with consumers/buyers, so the focus is on building mutual trust between the buyer and seller through the delivery of anticipated, long-term, value-added benefits to the buyer." (MKTG, Lamb Hair McDaniel, pg 251-252, chapt. 16) Using the internet chat room ability and the phone, our trained personnel will be empowered to be problem solvers for their customers as they strive to build long term relationships.

Pricing Strategies: "When a purchase decision involves great uncertainty, consumers tend to rely on a high price as a predictor of good quality. Reliance on price as an indicator of quality seems to occur for all products, but it reveals itself more strongly for some items than for others. ..In the absence of other information, people typically assume that prices are higher because the products contain better materials, because they are made more carefully, or, in the case of professional services, because the provider has more expertise." (MKTG, Lamb Hair McDaniel, pg275, chapt 17) Keeping in mind the competitiveness of the fragrance industry and that consumers see price as an indicator of quality, we will use status quo pricing which "seeks to maintain existing prices or to meet the competitions' prices. Our fragrance will sell for $78 for a 4oz flask.

Winds Of Freedom

VolksWagen Facts - Week 10 EOC

• The history of the VolksWagen and the Beetle started in 1934 when in the Hall of Berlin Adolf Hitler announced that the car had not to be an exclusive privilege of the rich.

• To Ferdinand Porsche, defined by Hitler as "the most famous designer of all time". Hitler entrusted the assignment to construct the Volkswagen (the people's car to Porsche; and Hitler did not limit himself just to the definition of the name, but dictated also terms about the peculiarities that it had to have (speed, consumption, price, etc...).

• In '36 the first 3 prototypes were ready (two sedans and one cabriolet) so that, a little bit later, Hitler entrusted the task to find out the suitable place to build up the factory of the future Beetle.

• The place was located in a vast zone of the Low Sassonia, in the surroundings of the castle of Wolfsburg of Earl Von Schulenberg, who was dispossessed of his land.

• In '38 it took place, the ceremony of the laying of the foundation stone of that factory which became (and it is still) the biggest car factory of automobiles in the world.

• The name chosen for the future Beetle was KDF Wagen (Kraft Durch Freude Wagen), that is "Car of the force by means of joy"

It is no use saying that Porsche tried to set himself against such name, but the choice came from Hitler personally, and there was nothing he could do about it.

• In '39 the KDF-Wagen officially appeared at the Hall of Berlin and it was such a modern and revolutionary car that is made the competitors look like nothing.

• In September '39 the Second World War began and the civil production of the Beetle was converted to a military production. This had a lot of importance for the future of the Beetle because on account of the war it had to sustain the hardest test which no other car had ever been submitted to before (and today).

• It got off very well: in any climatic condition (from torrid Africa to icy Russia) and in any sort of ground (in the mud, in the sand and the snow) the Beetle was unstoppable.

• In this period the KÜBELWAGEN (car "made like a bucket", was built in many versions), and the SCHWIMMWAGEN (a car "which could swim", was able to achieve the speed of 10 Km/h in the water), and many other military models were built.

• In May '45 the war was over but the factory was seriously damaged by the bombardment. It was thought to have been demolish, but thanks, to the Major Ivan Hirst (who it had been trusted to) the English changed their mind and, some years later, gave it back to the Germans, entrusting the task to manage it to Heinz Nordhoff.

• In the meantime the workers, with the last materials saved from the bombardment, had laboriously started building the Beetle again, but the production had very low levels.

• It was just Nordhoff, in ’46 who preformed a "miracle": from a few hundred cars produced in '46 the productions went to 19.000 in the '48 and 46.000 in the '49 in a continuous and exponential growth which slowed down only in the middle seventies.

• In that period of time, many technical improvements were continuously introduced, however without ever touching the original look and formulation of Porsche's project.

• And with regard to Porsche: where was he?

• Porsche was prisoner in France even accused by Pierre Peugeot of war crimes (while it seems that Porsche himself had helped Peugeot form being arrested by the Gestapo). In ‘47 Peugeot was declared innocent and was set free, but he could not go back to Germany until '49.

• He died on 30 January 1951 without being able to know what "incredible career" his Beetle would make in future.

• In those years the exports began in other countries: Holland, Denmark, Luxembourg, Sweden, Belgium, Switzerland and United States.

• In '53 the Brazilian production started with the affiliated firm "Volkswagen of Brasil" and the "Volkswagen of America" was built too; in '64 another overseas branch was built, the "Volkswagen de Mexico", and in '66 a factory opened in South Africa too.

• In '55 the millionth Beetle was built and, for that occasion, it was made in gold metalized color, with brocade seats and embellishments in little glass pearls on the chromizings.

• In the meantime in all the Countries where the Beetle was constructed or exported the sales grew constantly: in Italy '63, 42.000 Beetles were registered and America, people who wished to buy a Beetle had to wait up to 5 months.

• In '67 the look of the Beetle was remarkably modified: the headlight became round and vertical, the bumpers squared and increased in size, the tail lights magnified and the electrical system was strengthened (from 6 to 12 Volt).

• Even in '70 there was an important changes: in fact, the Super Beetle (mod.1302 and 1302/S) was born.

• Substantial differences regarded the appearance (a front hood more "plumper") and the mechanics (McPherson front chassis and rear axle with double flexible shafts) that were further modified in '73 with the Super Beetle mod.1303 (curved anterior glass and new dash-board stuffing). As it was already said, in the course of the years improvements never gave up, and it is interesting to notice that they were almost always ahead of their time and, therefore, destined to set a fashion; like the water resistant sun roof cover in PVC (1955), the tubeless tyres (1957) or the acrylic painting rather than the nitro painting (1949).

• Since '74, periodically, special series were built in a limited number, which had very particular inner fittings and colorations.

• The Jeans, the City, the Big, the Special Bug, the Fioriserie, the Winter, the Samtrot, the Silver Bug were built, and in '87, in order to celebrate the 50th year since its birth, the last one of the series was born, considered the best by the most: the Beetle of the Jubilee (Jubiläums-käfer). It was metalized grey and it had athermic, blue-tinted windshield, printed steel sports rims, the steering wheel of the Golf GTI and grey inners with strips of several tonalities.

• In the middle seventies sales began to decrease and in '74 they decided to move the Beetle production from Wolfsburg to Emden in order to make room for a new car: the Golf.

• In the '78 the European production definitively stopped and the Beetle continued being built only in Mexico, from where it was imported in Europe.

• In '76 the Super Beetle sedan had topped being built, and it was only built in the cabriolet version, but only until 1980.

• Recently the production in Mexico has been stopped.

    But the Beetle is not likely to disappear from the roads of our planet: a great part of the 22 million models that had been built cover miles of miles every day along the roads all over the world, asking in exchange only a little bit of oil and petrol.And their owners are sure of one thing: if they love it and they treat it well, "he" will never betray them. (Central Kentucky VW Club; HISTORY OF THE VW- THE BEGINNING: http://centralkyvwclub.com/centralkyvw.aspx)
    In the third episode of Mad Men the men were in a meeting to talk about a marketing plan about laxatives. One of the men bought up the article in a magazine about the VW Beetle. None of the men liked the article or the car, but they sat there and discussed the article for at least 15 minutes.
    In 1960, New York ad agency Doyle Dane Bernbach took a gamble and introduced the comely, low-priced Volkswagen Beetle as a "lemon"--ordinarily the ultimate insult for a car. But the attention-getting copy took an intriguing twist, explaining that though the car looked perfect, a VW inspector discovered a blemished chrome strip on the glove compartment that needed to be replaced before the car could be sold. (Bug’s Smashing Campaign, Los Angeles Times, March 5, 1998, By DIANE SEO, http://articles.latimes.com/keyword/doyle-dane-bernbach-company)
    The charming, honest advertising became part of the charm and honesty of the car. The advertisements they produced changed the face of advertising. Not just in America but across the world.

Target Market Strategy

My target market is the white, male baby boomer professional with a stable job, weekend adventurer. "A market segment is (1) people or organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy." Within a market, a market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs." (MKTG, Lamb Hair McDaniel, pg 97, chapt. 7)

The Boomer is the largest generation, with a population nearly doubles that of Gen X. Boomers are seated at the very top of the world's largest, most powerful companies and as established career professionals, they have tremendous buying power. At more than 100 million strong, baby boomer and senior customers (born before 1965) are the single largest consumer group in America, and they are the wealthiest, best educated and most sophisticated of purchasers. With more disposable income than any population in America, they are, in fact, the New Customer Majority.

"Any market segment that is targeted must be fully described. Demographics, psychographics, and buyer behavior should be assessed." (MKTG, Lamb Hair McDaniel, pg 24, chapt. 2)

"To be useful, a segmentation scheme must produce segment that meet four basic criteria:

1. Substantiality: a segment must be large enough to warrant developing and maintaining a special marketing mix." (MKTG, Lamb Hair McDaniel, pg 98, chapt. 7) Baby Boomers are turning 50 at an astonishing rate of 1 every 10 seconds. That's more than 12,000 each day and over 4 million a year for each year of the next decade! Baby Boomers have charged social and cultural revolutions and built vast, far-reaching corporate empires. They have helped weave the social, political and economic fabric of our country today. Their many achievements have made them one of the greatest generations of all time. Their wealth and influence is greater than any other generation today. (Examining Baby Boomers: Stats, Demographics, Segments, Predictions, Ethan Lyon, Mar 02, 2010, http://sparxoo.com/2010/03/02/examining-baby-boomers-stats-demographics-segments-predictions/)

For many organizations, baby boomers and mature consumers are an important audience. People 40 and older compose 42 percent of the U.S. population, and will grow to almost half (47 percent) by 2010. This immense demographic group is responsible for 66 percent of all expenditures tracked by the Consumer Expenditure Survey (CXS); enjoys 64 percent of all pretax income and controls 65 percent of all discretionary spending; and, according to the U.S. Bureau of Labor Statistics, comprises 47 percent of all employees. (ALLBUSINESS A D&B Company, www.allbusiness.com/marketing/direct-marketing/395828-1.html )

2. Identifiability and measurability: Segments must be identifiable and their size measurable. (MKTG, Lamb Hair McDaniel, pg 98, chapt. 7) There are 223,965,009 white people in the United States. Of this number 15% are 45 to 54 years old and 11.9% are between 55 to 64 years old. 43% of those people are male.30% have a bachelor's degree or higher and 34% are working in management, professional, and related occupations, and 80% earn at least $55,229 and 29% earn over $75,995.

3. Accessibility: The firm must be able to reach members of targeted segment with customized marketing mixes.(MKTG, Lamb Hair McDaniel, pg 98, chapt. 7) Of the 223,965,009, 86.5% speak only English, of this number, 152,690,957 have a bachelor's degree or higher and 30.1% are white males.
(U.S. Census Bureau, United States, S0201. Selected Population Profile in the United States, Population Group: White alone Data Set: 2006-2008 American Community Survey 3-Year Estimates Survey: American Community Survey http://factfinder.census.gov/servlet/IPTable?)

4. Responsiveness: Markets can be segmented using any criteria that seem logical. Unless one market segment responds to a marketing mix differently from other segments. (MKTG, Lamb Hair McDaniel, pg 98, chapt. 7) The baby boomer is more likely to be an innovator. "Innovators: the first 2.5 percent of all those who adopt the product. Innovators are eager to try new ideas and products, almost as an obsession. In addition to having higher incomes, they are more worldly and more active outside their community than non-innovators. They rely less on group norms and are more self-confident. Because they are well educated, they are more likely to get their information from scientific sources and experts. Innovators are characterized as being venturesome." (MKTG, Lamb Hair McDaniel, pg 152, chapt.10)

Baby boomers today are between 35 and 53 years of age. They are in their peak earning years, and the oldest of them have reached the prime age. Boomers, however, are significantly different consumers than their parents, and they are different than any other generation and experts expect them to maintain those differences as they age. Industry organizations that fail to identify and heed the boomers' unique qualities could soon find themselves in serious trouble.

Baby boomers are interested in bettering themselves, physically and intellectually. Their behavior is less dependent on life stage or the economy. Having experience, boomers seek out the exotic or in-depth ways of experiencing familiar places. Been-there-done-that is one reason adventure appeals to them. Physically-challenging outdoor activity or off-the-beaten-path activities are what the boomer seeks. Boomers see themselves as forever young. "Adult teenagers" Boomers will always try to act much younger than their chronological age." As a result, boomers still want to fulfill the dreams they had at 25 - even if their bodies aren't always willing or able. Boomers want to have fun.

Boomers demand immediate gratification. Unlike their Depression-era parents, boomers grew up in times of plenty. Easy gratification bred a desire for still more and quicker rewards. If they don't have the money, they just use plastic. Boomers' instant-gratification lifestyle means they don't plan far in advance as their predecessors. But when they are ready to buy something, they want to do it NOW. Finally, it's important to remember boomers invented the question, "Are we there yet?" They have little patience for long, uninterrupted stretches of time.

Boomers are not passive. They want a measure of control in designing their experience, and, they want to choose their activities. The challenge for marketers is to make it clear their product offers plenty of options. Boomers also want more interactivity in their experience; they don't want to hear about it, they want to do it. Boomers also crave "local human touch." They like to do things with other people.

Boomers think they are special. Always been a force to be reckoned with, they are very demanding consumers. Boomers like things that reinforce their feelings of specialness, so they are attracted to credit cards that offer preferred theater seats or tours that give them after-hours access to a museum. They also want products designed to fit their individual needs, so customization, or the illusion of it, is important. What boomers definitely do not want is herding. They don't want to feel like they are just another face in a crowd.

Boomers like creature comforts. Boomers don't want generic-style; they demand the amenities they are accustomed to. Boomers are time deprived. To get relief from their stressful schedules, boomers want to do absolutely nothing but be pampered. Or they may go to the opposite extreme, choosing adventures that are physically or mentally challenging - or both. Letting somebody else deal with all the details is very appealing, but the hang-up for boomers is trust. They wonder whether they can rely on somebody else. Boomers also need time-saving devices. They like 800 numbers, the Internet, videos and virtual reality because they offer convenience and interactivity. Their predilection for technology can reduce suppliers' costs and printing and mailing brochures. However, it also means call centers must be staffed to meet whenever boomers call. Internet use is so common the baby boomer Boomers use the Internet more for information gathering than buying. Having information makes them feel more connected to what they are purchasing. Boomers also like the freedom of not involving other people when they are exploring a subject. Their attitude is, "When I've decided, I'll initiate the next move."

Boomers will pay for luxury, expertise and convenience. ATM fees, nannies and bottled water prove boomers are willing to pay for what they want. "Boomers are willing to do things for themselves, if it's a hobby or if they think it won't require too much effort, but they really like to hire others to do it for them because it implies status."

Boomers want to do it right. They still look for a bargain, but a bargain to them means getting a good price on something of great value. To attract boomers emphasize must be put on expertise. They must add value boomers can't get on their own. The company must demonstrate the skill and knowledge boomers will respect and pay for.

Boomers are skeptical of institutions and individuals. With Viet Nam and Watergate as touchstones, who can blame this generation for lacking trust? As a function of their distrust, boomers are not joiners. They are less involved with alumni groups, civic organizations and museum societies than their predecessors, so these traditional sources of group business may be less viable in the future. Because they are skeptical, boomers actively research their options, so suppliers must expect a lot of information gathering before the buy decision. Public relations efforts that impart third-party or expert endorsement help break through boomers' skepticism. NTA focus groups in 1997 and 1998 said ads in local newspapers and word of mouth were the best sources of information and persuasion for products.

In marketing materials, patting oneself on the back too vigorously is sure to raise boomers' suspicions and hackles. Companies hoping to build long-term relationships must not promise more than they can deliver because failure to perform undermines boomers' trust.

Boomers like to associate with people like themselves. As noted earlier, boomers do not identify with people older than themselves. One of the questions uppermost in their minds when they purchase is, "Who is buying the same product? Is it people like me or a bunch of stodgy, gray-haired people?" They look for people who share their values, so they are very selective about who they'll use.

The industry can respond to these needs by not mixing age groups and using younger images and words in their marketing materials. They should stress the flexibility and participative nature of the experience as well as hype the expertise of their staff. Environmental and social awareness will strike a responsive note in some boomers, so they should be highlighted.

Boomers are not homogenous. While boomers identify themselves as boomers, they are not a single group. In terms of life stages, boomers may be the least homogenous generation to date. There are childless-by-choice boomers, others with new babies, others with grandchildren and some with both. Fifty year olds who are retiring and others starting new careers or returning to college. There are empty nesters downsizing their lives, parents who can't get their Gen Xers out of the house and others raising their grandchildren. These variations affect spending habits, the amount of time available for vacations and with whom boomers spend their time with

There is also a dichotomy between older and younger boomers. For those born between 1946 and 1955, Viet Nam was the defining event of their lives. For those who came later, it was Watergate. When older boomers finished college, jobs were plentiful and interest rates low. Younger boomers faced recession and 21% interest. The older group, the first to benefit from women's movement, tends to be more career-oriented. The younger ones experienced the down side of women's lib - the higher divorce rate.

They also felt they never got as much attention as their older siblings, so they are more family-oriented. Younger boomers, who watched Donna Reed and Ozzie and Harriet reruns on TV, have unleashed this whole wave of nostalgia.

All these factors impact the baby boomers buying behavior.(Kim Ross, BOOMING MARKETPLACE: http://www.atme.org/pubs/archives/77_253_1108.cfm)

SWOT Analysis

"Before specific marketing activities can be defined, marketers must understand the current and potential environment that the product or service will be marketed in. A situation analysis is sometimes referred to as a SWOT analysis; that is the firm should identify its internal strengths (S) and Weaknesses (W) and also examine external opportunities (O) and threats (T)." (MKTG, Lamb Hair McDaniel, pg 19, chapt. 2)

In identifying the strengths of our business offering we will have experienced perfumers. Our employees will be reliable and educated in our product offerings and that of what other businesses are offering so that they can intelligently help our customers. They will also be empowered to help our customers where needed, when needed. Our operating costs will be low operating costs. Our products are reliably consistent as is our product support. We are a member of the Natural Perfumers Guild. We offer a green product.

Our keys to success will be studying "consumer behavior which describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services" (MKTG, Lamb Hair McDaniel, pg 63 chapt 5) we can produce our products accordingly. We will conduct annual marketing research which "plays a key role in the marketing system. It provides decision makers with data on the effectiveness of the current marketing mix and also with insights for necessary changes." (MKTG, Lamb Hair McDaniel, pg 114, chapt. 8) We will be in line with the current trend which according to AskMen.com the trend for Men's colognes for 2010 are genuinely unique blends of the masculine aromas of wood and musk balanced with floral and citrus notes.

Our competitive advantage of our business offering are our cost competitive advantages by obtaining and using inexpensive "processed materials which are products used directly in manufacturing other products" (MKGT, Lamb Hair McDaniel, pg 92, chapt 6) (the essential oils), efficient, experienced employees, creating an efficient way to produce our product and run backend operations, designing our products for ease of manufacturing, controlling overhead and business service costs, and avoiding marginal customers. Our product/service differentiation competitive advantage is our product reliability, our offering of reusable, collectable bottles, our green product and green production of the product. Our niche competitive advantage is in targeting the male baby boomer who is a weekend adventurer.

In identifying the weaknesses of our business offering; though we have considerable anecdotal information, the company is lacking in marketing research. Our financial resources are limited. Our company is under development while establishing our product line. We have had to supplement our company with independent consulting services.

Ethics and intergrating social responsibility is very important to our company. Sustainability opens new ways of thinking and doing business, both theoretically and practically, for each individual and for the company. Today's consumer wants to associate themselves with companies who are transparent and have full traceability manufacturing processes. This adds value to the relationship with local communities and local associations.

For companies whose green missions are based on inherent values, not a marketing objective, the commitment to environmental sustainability and reporting is important, and allows consumers to align themselves with socially responsible businesses. Consumers want to be able to trace a company's path of environmental responsibility from soil to bottle.(The Demands of Natural Product Claims on Fragrance By: Sara Mason http://www.gcimagazine.com/marketstrends/segments/natural/52977367.html utm_source=Most+Read&utm_medium=website&utm_campaign=Most+Read Posted: August 11, 2009, from the August 2009 issue of GCI Magazine.)

Some of the ethical problems we may face the issues involved in discerning and weighing the benefits and outcomes between a nature-inspired scent and a truly natural one remains, knowing that the olfactory trend toward nature cannot be mistaken.

There is clear reason for consumers moving toward products labeled as natural, and that is the potential dangers, real or perceived, that they feel can impact well-being. Naturals are often perceived as “safe,” when compared to synthetic ingredients but they do open up a whole new category of concerns and safety issues. “Not all ingredients in nature are safe,” said Ulisses Sabará, president, Beraca. “Therefore, safety procedures and caution are more than necessary in order to analyze a natural ingredient.” Brands must be careful to use essential oils properly, as some can be toxic and others are known to cause sensitization. But created properly and thoughtfully, these offer translatable claims for consumers. As a company that will create natural perfume, our principal role is to create authentic, plant-derived aromas that not only provide consumers with enjoyable experiences, but also foster a sense of well-being.

In examining the external environment we found opportunities in;

Demographics, targeting "the baby boomers who make up the largest demographic segment of today's U.S. population. There are 77 million baby boomers (people born between 1946 and 1964). ..For the next five years, one million boomers will join this group of consumer segment each year." "As a group, people aged 50 to 60 have more than $1 trillion of spending power a year." (MKTG, Lamb Hair McDaniel, pg 36 chapt 3)

Economic: By purchasing organic products, companies and consumers create demand for high-quality products and ingredients that support environmentally responsible local farms and sustain indigenous people around the world.

Social trends: Today's consumers are using information technologies that provide the consumer with tremendous insight into how corporations do business, how the aroma is created and manufactured, and the potential environmental consequences of this process. "After getting information and constructing an evoked set of alternative products, the consumer is ready to make a decision. A consumer will use the information stored in memory and obtained from outside sources to develop a set of criteria. These standards help the consumer evaluate and compare alternatives. One way to begin narrowing the number of choices in the evoked set is to pick a product attribute and then exclude all products in the set that don't have that attribute. (MKTG, Lamb Hair McDaniel, pg 66, chapt5)

In identifying other opportunities of our business offering we found that there is a 5% market growth annually, with 87,427 establishments in the U.S there exists an unlimited market across the United States, with internet access there is the opportunity of going global, there is no brand loyalty among consumers which gives us a break into the market, the "Recession is an excellent time to build market share because competitors are struggling to make ends meet." (MKGT, Lamb Hair McDaniel, pg 290, chapt. 18)

In identify threats to our business offering: There exists a lot competitive competition in the fragrance industry, offerings can be duplicated by knowledgeable experts, and there are larger companies with unlimited budgets. At this time perfumes are a 25 billion dollar industry, yet are one of the poorest performing sectors of the cosmetics industry. The fragrance market is stagnating and is cluttered with new scent products which mean there is no longer any brand loyalty. As many as 300 new brands appear every year. Consumers jump with speed to the latest new "designer perfume" product. This means fragrances often only have a shelf life of 3 years. (http://www.nytimes.com/2009/06/20/business/20perfume.html?pagewanted=all By CHANDLER BURR Published: June 19, 2009 ) Recession is also a threat because "Recession is a period of reduced economic activity. Reduced demands for goods and services, along with higher rates of unemployment, is a common trait of a recession." (MKTG, Lamb Hair McDaniel, pg 290, chapt. 18)

McDonald's $10 Burger - Week 9 EOC

    On page 291 of MKTG by Lamb Hair McDaniel, there is a discussion of pricing at McDonalds. It states, "There would probably be little demand for a menu item that was out of the price/value range established by other items in McDonald's product line. For example, a $10 burger would be well out of the price range that McDonald's customers expect for that product class." I think that with value-pricing, product modification and repositioning of McDonald's burger, the making a $10 burger would not seem exorbitant for that product class.
    If McDonald's took their burger and applied, "product modification which changes one or more of a product's characteristics such as quality modification... increasing quality can help the firm compete with rival firms. Increasing quality can also result in increased brand loyalty, greater ability to raise prices..."(MKTG, Lamb Hair McDaniel, pg 134, chapt. 9) They could produce a burger that communicated "Value-based pricing, also called value pricing, a pricing strategy that has grown out of the quality movement. Instead of figuring prices based on costs or competitors' prices, it starts with the customer, considers the competition, and then determines the appropriate price. ...The basic assumption is that the firm is customer driven, seeking to understand the attributes customers want in the goods and services they buy and the value of that bundle of attributes to customers...Customers determine the value of a product (not just its price) relative to the value of alternatives. Value-based pricing stresses to customers that they are getting a good value for their money. (MKTG, Lamb Hair McDaniel, Pgs 283 & 290 chapt. 18)
    By modifying their burgers McDonald's could give customers the things they would value in a burger such as a healthier, bigger, tastier burger that they could still get with the fast service and convenience that they have come to expect from McDonald's. This product modification can produce "repositioning which involves changing consumers' perceptions of a brand in relation to competing brands." (MKTG, Lamb Hair McDaniel, pg 111, chapt. 7) This would give McDonald's customers the feeling that, even though they are paying $10 for a McDonald's burger, they are getting their money's worth.

Marketing Objectives

Keeping with the idea of sustainability, “the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time, (MTKG, Lamb Hair McDaniel, pg 29, chapt. 3) we build our marketing objectives.

Our objectives are to establish ourselves as a leader in the marketplace by providing and informing our customers of the safe and environmentally aware products we are producing by using all natural, pesticide free ingredients for our fragrances and recycled and recyclable materials for our packaging and promotional and advertising products. Our company will be "a customer-centric company which builds long-lasting relationships by focusing on what satisfies and retains valuable customers." (MKTG, Lamb Hair McDaniel, pg 295, chapt. 19) It is our goal to Delight our customer with our products and services.

In light of the fact that our target market are active, time limited, and do not like to shop we will develop a web site that will keep our customer informed, it will have virtual tours of where our products come from, how our product is made. They will be able to meet all the people behind the scene and get to know them. They will be able to order from the web site and have their product delivered right to their door at their convenience. The web site will be up and running July 2010.

Using the internet to reach out, we plan to have a “global vision by recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets.” (MKTG, Lamb Hair McDaniel, pg 47, chapt. 4)

Our goal is to increase product awareness among the target audience by 30 percent in one year and to inform our target audience about features and benefits of our product and its competitive advantage, leading to a 10 percent increase in sales in that year.

We will also decrease or remove potential customers' resistance to buying our product, by providing information and education on the benefits of using natural products leading to a 20 percent increase in sales by the end of 2010.

We plan to spend 10 percent of sales revenue on research and developing a product line depth so that we are able “to provide a full range of choices to customers. Distributors and retailers are often more inclined to stock the company’s products if it offers a full line. Transportation and warehousing costs are likely to be lower for a product line than for a collection of individual items.” (MKTG, Lamb Hair McDaniel, pg 133, chapt. 9). With this in mind our intentions are to introduce at least 5 new products in this line by the end of 2011.