Marketing Strategy of Aesop Company - Example

Title: Aesop marketing strategy Name Name of institution Table of Contents Table of Contents 2 Executive Summary 3 Mission 3 Aesop Company 3 Products 4 The market 4 Market analysis summary 5 Literature review 5 Situation analysis 6 Strengths 6 Weaknesses 7 Opportunities 7 Threats 8 Marketing strategy 8 Desired marketing segmentation 8 Preferred marketing mix 9 Product 9 Price 9 Placement 9 Promotion 9 Positioning strategy 10 Sales forecast 10 Tactics to achieve marketing objectives 10 Promotion tools to be used 11 Timeline 11 Conclusion 12 References 13 Executive Summary Aesop Company has created brand recognition in Australia consisting of variety of cosmetics of skin, hair and body care and has used multiple channels in market for distributing its products. The company is seeking recurring venture in order to brand the new brands and also position itself in the market. The plan that follows elaborates company’s market, value proposition and market segmentation strategy. The plan will also incorporate company’s financial plans relative to building brand recognition in Australian market. Mission The mission of Aesop Company is to establish brand recognition in the market though its skin, hair and body quality products. This will be accomplished through extensive research on body care products, creative marketing, comprehensive network distribution and high quality manufacturing of products. The company will provide consumers with product catalogue through the website and distribution stores. The company has been really doing well in reaching niche markets effectively by utilizing multi-channel approach. This will further develop brand recognition for skin, hair and body products within the target markets. Aesop Company Aesop Company was founded in 1987 with the pursuit of offering superlative skin and body products. The company’s mode of production was unique in such a way that it used both plant-base and laboratory-based constituents of highest quality and efficacy defined by utmost anti-oxidant properties. The company advocates for the use of Aesop formulations in order to better their lives and induce healthy diet and sensible exercise. The company’s products are available in various stores as indicated on the website. The stock list is also presented to the customer on the website and also upon inquiry. Products Skin, hair and body lotions are the products produced by Aesop Company in Australia. Among other services include sensible exercises that are offered normally as supplements to the customers who may need. Basically, the company has three product lines which include skin, hair and body care products line. Within the skin line, the company offers makeups removers, creams, scrubs and facial scrubs. Within hair care product line, the company offer hair treatment and hair food and maintenance. Within body product line, the company offer variety of lotions and jelly. The pricing strategy of this marketing plan is to position all the products within a shelf price to accommodate the returns of high quality brands (Anon, 2015). The market Aesop Company occupies a market position with low competition in Australian market. Very few cosmetic companies in Australia offer diverse product lines that include skin, hair, body and fitness apparel within the country. However, only three product lines (Skin, body and hair) has been existing since the establishment of the company. Fitness package, gift and fragrance have come as a way of product diversification to the company. In the skin and body care category, the company targets everyone across all geographies. In hair product category, the company targets mostly female customers across the world. Customers access the products through department stores, retailers to the company and affiliate health clubs (Anon, 2015). Market analysis summary According to the reports by Direct Selling Association of Australia (DSAA), more than 90.5 million people are in cosmetic industry globally. The annual sales from retailers in 2013 were estimated to be AUD $147 billion at the end of the year. In Australia therefore, the report shows that the sales by cosmetic retailers reached AUD $1.4 billion in 2013 where more than 400,000 Australians were involved in the industry. The report also shows that majority who are involved in cosmetic sales in Australia are women and are approximated to be 81%. The direct client industry in Australia has received a boost gaining a market share of 20% of the domestic annual sales. This industry has resulted having a significant 15% of Australian skin and body care market (Anon, 2015). Literature review There is this old saying that says ‘Do people plan fail or fail to plan?’ Apparently, most business men do not plan to fail, but the end is common (Tranter and Hanson, 2013). Therefore, marketing is a strategic game that involves various factors that ensures that a customer is persuaded to endorse, support and utilize the product provided by a seller (Baines, Fill and Page, 2013). According to Harvey (2012), marketing is the matching of company’s capabilities and customers wants in order to achieve mutual objectives. Most cosmetic industries around the world are becoming successful in selling their products through effective marketing plan. McDonald, for instance, has created franchises around the world with its successful products lines of the products (Blery and Antoniades, 2010). Thought the company is diverse in terms of products they offer, the department of cosmetics normally increases the market share of the company every year. Currently, McDonald is recognized as the global largest franchise due to its effective marketing plan. Aesop Company has the potential to position itself in the growing market of cosmetics not only in Australia but also around the world. Therefore, utilizing the growing technology and expanding human skills will boost company’s brand recognition (Kew and Stredwick, 2005). This report examines Aesop Company’s environment (both external and internal) recommend an appropriate marketing plan for the company as far as its goals is concerned. Situation analysis Strengths Aesop Company has strong brand portfolio. Customers will get variety of cosmetic products for hair, body and skin within the company. Also, the company offers supplementary products within its portfolio like corporate gifts (Anon, 2015). Due to its online accessibility, the company is geographically diversified. A customer can order the products online and being shipped to him/her irrespective of geographical position. Luxury consumers are majority who benefits from the easier accessibility of the company. The company has strong research and development team which has established new products in the cosmetic industry (Anon, 2015). These products build the brand image of the company thus attracting more consumers locally, regionally and internationally. Weaknesses The performance of segments outside Australia is weak. Aesop Company has not established itself fully outside Australia and therefore the returns from the market segments outside Australia strain the performance of other segments. The company has slow revenue growth. Looking at the life cycle of the company, Aesop is at growth stage where most of its profits are used to expand market share. These expansions has limited the growth of the company since more finances is invested in operational activities. Opportunities The increasing demographic trends in Australia and globally opens up new market for the company. The company is likely to increase its market share with the strong brand portfolio it has currently. Cosmetic market in emerging economies like china is growing. This will open up new target market for its products thus increasing revenue to the company. Advance in technology, like the use of Instagram and Facebook in marketing products would boost the sales of the company. This has been experienced over the past five years where the growth of the company increased by 3% in 2012 as a result of effective marketing (Kim and Mauborgne, 2005). Customers are shifting to using products which are safer and eco-friendly. Therefore, acquisition and alliancing with research laboratories would give the business an opportunity to grow. Research on organic cosmetics has established and developed major segments of cosmetic companies Aesop Company inclusive. Threats The growing cosmetic industry with strong ‘game players’ would reduce the market share of the company. Also, there is currently intense completion in the industry which has called the company to invest much on marketing. The counterfeiting of cosmetic products is most likely to influence the market growth of Aesop Company. Also, the low quality counterfeits products reduce the brand image of the company thus making the customers to lose confidence on the company’s products. At the end of the day, counterfeit products will deny the company revenue increase as well as diluting brand image (Kim and Mauborgne, 2005). Marketing strategy Aesop Company is needed to launch a unique project where it comprises of care center in Australia. The strong brand portfolio comprising of hair, body and skin lotions with also products for massaging and waxing services will boost company’s image in the market. Desired marketing segmentation The first target market is the women living in Sydney among other major cities in Australia between the age of 18 and 44 years old. These women should belong to middle or upper class since majority of the products to be offered is considered luxury. The second target market is men living in Sydney among other major cities in Australia between the age of 20 and 45 who belong to upper middle class. Apparently, the two target markets identified reflect the growing demand on the customers of cosmetic products in the current society. Preferred marketing mix Product Company’s products will be produced by use of differentiation strategy and the renewal of the older packages. Allies with organic research laboratories will be used as to come up with acceptable products which are diversified. Also, the company should consider product differentiation through packaging. Price Aesop Company will consider three aspects when it comes to price policy of its products: price level, the degree of diversification and price mobility. As far as financial objectives are concerned, the company should improve price and quality by 5% relative to products being offered. Placement The degree of company’s participation in the market will be improved through much build-up on its website. The company is expected to use direct distribution, through personal configuration to the stores and passionate control of the marketing team. This placement will reduce time of accessibility and distribution of products. Promotion Promotion strategy will entail presentation of Aesop Company’s image globally as a way of expansion strategy. Major personalities will be used to build company’s image. Also, the products of the company will be presented during the launching of various campaigns such as breast cancers and perhaps lifestyle diseases. These images will be conveyed through social media platforms and company’s website where global consumers can access easily at a lower cost. Positioning strategy The best position for Aesop Company is the use of own brand products and diversification of these products. Staring with own brand management will give a good platform of diversification of products in the next operation year. Sales forecast The four major products to be offered by Aesop Company will give sales forecast of about $ 800, 000 during the first year of implementation. To achieve this financial objective, the company would have to invest much on advertising of the products in order to create traffic on the brand image of the company. Tactics to achieve marketing objectives The company has to cooperate with retail sellers in the major cities, distributors and raw material supplies. The company also is expected to have combined strategies to attract new customers. This will be achieved through efforts in removing counterfeiters who lowers the perceived value of company’s products. Promoting the experience in offering these products line would boost the tactical approach for the company (Mees and Ramsay, 2013). It is important for the company to focus on season promotions like Christmas, giving samples to the customers in new markets and investing more in advertising campaigns. Perfect timing when offering services such as waking and massage is very important. This should be done during evening hours (between 5 and 9 pm) and weekends when customers are having free time for fun. Developing new offers and discounts is another tactical approach to attract customer. Promotion tools to be used Social networks, direct email, special offers, gifts, point of sales, word or mouth and loyalty cards. When it comes to extra services being offered at Aesop, professionals could be hired to perform their duties and trained afterwards for them to give expected results to the company. Also, the location of these new services should be easily identifiable by the customers, preferably should be well indicated on the service charter. Timeline The main aim of this marketing plan is to build brand image through diversification of company’s image. The timeline for implementation is two years. In order to achieve these objectives within the two years stated, the company will develop social media platform that will create awareness of the new products to the customers. This will apparently increase the market share both in the existing markets and new markets as well. The deadline of social medial development is the first quarter of this financial year. After the establishment of the company in the market, the company will use product diversification strategy to enter and sustain itself in the global market. This initiative will be started at the beginning of next financial year all through to the last quarter since product development and sustainability in the global market needs regular monitoring. Conclusion Like other companies, Aesop Company’s position in the market must be constantly improved. Aesop Company being currently appearing as strong and modern cosmetic company in Australia, the major concern is to improve and sustain itself in the changing market. Quality differential strategy should be maintained in order to continue offering superior body, skin and hair products (Muzumdar, 2013). When it comes to marketing research, the company should at least conduct the research each after one year in order to determine the changes in the needs of cosmetic consumers. This would help the company change its game in the competitive market. Basically, the company should run a lot more advertising campaigns on both digital and online platforms in order to have a strong market penetration (Perry, 2009). References Anon, (2015). [online] Available at: http://www.aesop.com/fr/fr&___store=fr_en&___store=fr_en [Accessed 29 Jan. 2015]. Baines, P., Fill, C. and Page, K. (2013). Essentials of marketing. Oxford: Oxford University Press. Blery, E. and Antoniades, L. (2010). Marketing Chewing Gum: A Case Study of a Cypriot Company.Journal of Food Products Marketing, 16(4), pp.337-349. Harvey, D. (2012). Business policy and strategic management. Columbus, Ohio: C.E. Merrill Pub. Co. Kew, J. and Stredwick, J. (2005). Business environment. London: Chartered Institute of Personnel and Development. Kim, W. and Mauborgne, R. (2005). Blue ocean strategy. Boston, Mass.: Harvard Business School Press. Mees, B. and Ramsay, I. (2013). 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