Marketing Plan for a Cosmetics and Beauty Brand - Case Study Example

Intrоduсtiоn of рrinсiрlеs of marketing: Marketing plan for a Cosmetics and beauty brand Name Institution Course Tutor Date Brand: Neon Cosmetics in Australia Brand extension: Provision of facial treatment with massage Table of Contents Executive summary Cosmetic industry in Australia is very competitive, though highly profitable to the market players. The paper looks at Neon Cosmetics in Australia and its intention to advance its presence in the cosmetic market through provision of facial treatment with massage to its interested customers. The paper contains the company profile and overview of its operations There is the environmental analysis of the cosmetic company bother internal and external. There is SWOT analysis of the company. There is discussion of the segmentation targeting, and positioning of Neon market especially for the new service. The paper contains the discussion of the marketing mix (product, price, place, promotion) There is also the conclusion or the summary of the report content and recommendations in relation to the findings. Introduction Neon Cosmetic is a company located in Australia and offers beauty products. The company deals with cosmetic manufacturing and offers services associated with packaging procurement, product formulation, manufacturing, as well as logistic management of the colour cosmetics (Neon Cosmetics, 2016, 1). The company offers services related to cosmetic formulation skills, manufacturing expertise, house laboratory, technical experience, as well as operational systems to the cosmetic specialists. It is the leading manufacturer of the colour cosmetics in the Australian continent, which provides retailers with quality products, and innovations. Through its innovative activities, the company provides creative products and tailored supply solutions to meet the customer interests in the cosmetic industry. Neon Cosmetics offers a variety of beauty and cosmetic products among them being the products to be used on the face (Neon Cosmetics, 2016, 1). The cosmetic company focus on extending its operations or services through the provision of facial treatment with massage to its interested customers. The company will work with its beauty professionals who work as a team to offer quality and satisfaction facial treatment services to customers. The marketing plan aims at evaluating the introduction of facial treatment with massage by Neon Cosmetic in the Australian market. The paper will contain the environmental analysis to identify the opportunity of the service development. There will be the analysis of the internal and external market of the company, that is, PEST analysis, SWOT analysis, and Michael Porter’s five forces. The paper looks at Segmentation, Targeting, and Positioning of the new service in the cosmetic market. There is also the conduct of marketing mix for the new service and then the conclusion of summary of the paper’s ideas and recommendations. Environmental analysis Macro-environment PEST analysis Political and legal factors Neon Cosmetic operates through a political language Abides the regulations established by government Runs through appropriate legal documentation Follows rules and regulations accordingly Committed to eliminating adverse effects to environment by abiding to environmental regulations, legislations and standards Economic factors; Neon Cosmetic is not majorly affected economic issues, such as economic instability. Operates through huge financial budgets Realization of high profits (Neon Cosmetics, 2016, 1) Growth of the market support its operation Forecast economic trends to predict price changes in products and services Social-cultural factors; Neon Cosmetic experience social and cultural issues because of serving diverse customers The consumer attitude and opinion regarding the company’s services is friendly because its offer quality services. Approaches all its activities in a socially responsible manner (Neon Cosmetics, 2016, 1) The company acknowledges differences in ethnic background, religion, disability, race, gender, political activity, personal association and disability among other social aspects Technological factors; Neon Cosmetic embraces technological changes in its operations Staffs are trained to be competent in operation of the current technology Adoption of new technology to offer online service to customers and market the products and services Microenvironment The consumer trends; Neon Cosmetic serves both men and women, young and old. Customers require quality products and services from the company and this motivated them to market the lodge through word of mouth (Neon Cosmetics, 2016, 1). Customers communicate with the company through online where they post their opinions to its websites. Stakeholders; Neon Cosmetic stakeholders are; employees, customers, government organisations, and the community. Neon Cosmetic values its stakeholders very much because of their influence to growth, production of cosmetic products, and provision of services. Suppliers; Neon has dedicated and friendly suppliers of the raw materials used in the company both locally and internationally Competitors; Neon Cosmetics operate in a competitive market, but it wins the competitive advantage because of its quality products and services. Among its competitors are; Satin Cosmetics, e.l.f Cosmetics, Besame Cosmetics, and Sephora (Neon Cosmetics, 2016, 1) Microenvironment Neon Cosmetics meets the needs and interests of its customers. The company handles its employees in a friendly manner since it retains its employees for a long period because of availability of worker satisfaction. SWOT analysis; Strengths The market innovation Making high profits Improvement and growth (Neon Cosmetics, 2016, 1) High quality cosmetics products Weaknesses Reduced dynamic from some products Poor service charges Weak annuity system Opportunities Market growth from emerging markets Increased marketing opportunities Advancement of technology (Neon Cosmetics, 2016, 1) Threats Increased competitors Regulation issues (Neon Cosmetics, 2016, 1) Michael Porter’s five forces; Rivalry among existing competitors; Neon Cosmetics compete with Satin Cosmetics, e.l.f Cosmetics, Besame Cosmetics, and Sephora. Neon operates in a unique strategy, which enhances its competitiveness. Threat of new entrants; No strict restrictions market entry, but Neon being the leading company cannot shaken Bargaining power of buyers; Low bargaining power because Neon offers the best quality products and services (Neon Cosmetics, 2016, 1) Bargaining power of suppliers; Suppliers have minima bargaining power because the market is wide, although Neon relates well with its suppliers. Threat of substitute products and services; Neon cosmetic products and services are unique, so no substitutes Segmentation, Targeting, Positioning Segmentation is division of customers in accordance to their demographic, economic, and geographical factors. The major consumer segments of the Neon cosmetics are the babies, children, toddlers, and teenagers, school going population, adults, young adults, and the elder.ly. Neon serves people from any geographic location (Neon Cosmetics, 2016, 1). In the provision of facial treatment with massage, the company targets both men and women purchasing its skincare products. There is also segmentation of the face products according to the creams, lotions, and powder like products. In the provision of its new service, Neon Cosmetics majorly target young people and adults since they are the most population group known to be concerned about their facial appearance and maintenance. It is clear that the young population is a very vital segment in the cosmetic market. This is because young populations engage into luxurious spending through purchase of the cosmetic products. The new service also targets the people around its stores because of the provision of the service by its beauty professionals. The facial treatment service targets cosmetic customers in high and middle economic classes (Neon Cosmetics, 2016, 1). Neon Cosmetic also segments customers according to their locations, for instance those from cosmopolitan areas and those from the small cities. There is growth of the young cosmetic market because of the increase of the young population in the country, thus making the company to target the young and adults in the urban areas. Neon is highly positioned in the market because of the quality of its products and services. Given that the facial treatment market is high concentrated of the young population who like beauty products for their improved beauty, Neon will experience high growth. The company is loyal to all the potential customers, thus allowing improved growth because the cosmetic customers tend to have more trust on the Neon cosmetic products. Neon is influenced by technological growth, which supports its growth and improvement of its operations, as well as provision of services to its customers. Marketing mix Product/ service Neon Cosmetic will be offering an advanced service to its customers of facial treatment. The facial treatment with massage is a service conducted with the aim of treating and maintaining one’s face (Neon Cosmetics, 2016, 1). Facial treatment with massage is a very efficient service for those people who purchase Neon’s skincare products and those willing to maintain good look for their face. Facial treatment allows one to feel relaxed and eliminated the dead skin, which makes the face to react with some facial products. The service will be offered through Neon face products, which include; foundations (powder and liquid), blushers, skin primer, liquid bronzers, concealers, BB creams, bronzing powder, highlighting/ illuminating products, bronzing highlighter, skin brightening, and bronzing foundation. There are powders such as active powders, mineral powders loose powders, and pressed powders. Other products applied during the facial treatment are eye products, such as eye primers, mascara, brow shapers/wax, liquid eyeliner, loose eye powders, eyeshadow powders, and shimmers and eye creams. On the lips, the Neon professionals apply lip balm, lipgloss, lip care speciality and treatment actives, lipsticks, and lip plumper. It is also an entertainment device to use during leisure time and keep someone busy and having fun. Customers are provided with education on how to maintain their skin after the provision of facial treatment with massage services. Price/ charges The facial treatment with massage will be charged depending on the products applied in the process and the process followed to offer the service to the customers. Neon Cosmetic has different prices for its cosmetic products (Neon Cosmetics, 2016, 1). The same will apply in the facial treatment service, which will be charged differently, though at a pocket friendly charge to the customers. The particular customers will be involved in the charges decision-making process by being allowed to select the products of their interest and the ones they can afford to pay for in order to receive satisfactory services. Place Neo Cosmetic offers its services and products in all regions in Australia and internationally. The facial treatment with massage service will be provided to customers in all the company’s markets. These are customers who can manage to visit the company’s stores and outlets where its beauty professionals are located. The company might open some beauty and cosmetics shops specifically for sale of the cosmetic products and provision of the facial treatment with massage services to its customers. The shops will be based in the major cities and towns in order to meet the target customers. Promotion Neon Cosmetic in Australia will be promoting the facial treatment with massage service the same way it promotes its cosmetic products in the market. The new service is promoted through the social media, television, and posters around different local stores. The new service is advertised through the website of Neon Cosmetics where people freely login and get to access much information about the company’s products and services and its features. Customers have opportunities to raise their opinions regarding the manner through which the service should be provided and how they feel good to receive the service (Neon Cosmetics, 2016, 1). The users of the company’s cosmetic products also contribute in its promotion whereby they spread information about the brand through word of mouth to their friends and relatives. Neon Cosmetics will engage in ‘Marketing strategy.’ This is where the Neon Cosmetics would be focused at marketing its cosmetic products and the facial treatment service locally and in the international market in order to attract more customers. Neon Cosmetics require to engage into online means of marketing in order to cover the local cosmetic market and the international market. This will enable Neon Cosmetics to reach the young population and adults, which is the majority in the cosmetic market. Neon Cosmetics will have to market its facial treatment service in the major cities and cosmopolitan areas in Australia in order to be known and attract customers to its new service. In order to engage into an effective marketing practice, Neon Cosmetics will require conducting a thorough survey in the market and identifying the opportunity in the market. The company would also enter into the social media since it is the best and diverse means of conducting marketing activities in the modern world. Conclusion Neon Cosmetics is a cosmetic company located in Australia. The company manufactures and sells beauty and personal care products. The company plans to introduce a new service in the market. The facial treatment and massage service will be offered to the Neon customers purchasing the facial products and those interested for facial treatment service. Neon Cosmetics operates in the cosmetic industry, which is very competitive and since the cosmetic market is mostly concentrated in the major cities, Neon will conduct a thorough survey in the market and promote its service in order to be competitive in the market. The cosmetic market is very profitable because of its growth and potential advancement. There is the opportunity of improved technology. Neon requires engaging into marketing activities to have effective operation in the market and meet the target for its facial treatment service. Neon needs to offer quality service through its quality products and employ diverse workers for more success. Continuous marketing of the service will be efficient to enable the company to enter into the wider cosmetic market through its advanced services. References Websites Neon Cosmetics, 2016. Home. http://neoncosmetics.com.au/ Neon Cosmetics, 2016. About us. http://neoncosmetics.com.au/about-us/ Neon Cosmetics, 2016. Research and innovation. http://neoncosmetics.com.au/lab-innovation-evolution/ Neon Cosmetics, 2016. Research and innovation http://neoncosmetics.com.au/product-trends/ Neon Cosmetics, 2016. News. http://neoncosmetics.com.au/news/ Neon Cosmetics, 2016. Description. http://www.aubiz.net/company/neon-cosmetics-pty-ltd-005437865 Neon Cosmetics, 2016. General Information. http://listings.ftb-companies-au.com/l/102092967/Neon-Cosmetics-Pty-Ltd-in-Bayswater-VIC Neon Cosmetics, 2016. http://www.manta.com/ic/mvmzyq7/au/neon-cosmetics-pty-ltd Neon Cosmetics, 2016. Products. http://neoncosmetics.com.au/products Read More