The marketing term project is designed to provide you with experience in analyzing a specific industry (Organic Food Industry)

Clearpell ® - Cumin Oil for Acne Healing and Protection

1. SITUATIONAL ANALYSIS

1. Executive Summary and Organization Mission

Glo n’ Shine is a new yet vibrant entrant into the natural beauty products market. The mission of this company is to ensure environmental sustainability while at the same time improving how people feel during their day-to-day interaction with natural beauty products. With its vast range of organically produced and meticulously processed beauty products, this company seeks to improve the skin health of its consumers, leaving them glowing and shining after each application. Data by 360 Research Reports show that in 2017, the beauty products market was valued at US $532.43 billion, and experts estimate that the current value is at US $805.61 billion. This translates to a compound annual growth rate (CAGR) of 14% in the last five years (360researchreports.com). Given these metrics, it is clear that this industry is growing at a fast rate, and Glo n’ Shine desires to make an impact in this segment. 

One of the company’s pioneer products is Clearpell. This product is based on Cumin seed oil that has been shown to have chemical compounds such as oils and vitamins that are helpful to skin and other connective tissues (Farhan, Sali, and Salimon 2). The physiochemical substances in this plant are antibacterial, antioxidants, and highly nourishing to the skin (Farhan, Sali, and Salimon 2). Clearpell, therefore, presents a solution to many consumers who fruitlessly search for commodities to cure their acne and black spots. Indeed, this condition is a major issue in society as Dr Neera Nathan and Dr. Payal Patel write in an article published by Harvard Health Publishing (Harvard.edu). According to the article, women who have acne or scars after acne heals suffer from emotional distress. Moreover, they face stigmatization in the workplace, thus affecting their professional and economic growth. Clearpell, therefore, is not any other skin care product. It is a solution to a major mental health issue that is often overlooked.  The company’s team of scientists and aestheticians have invested time and energy to run laboratory studies and conduct trials with consumers who have expressed their satisfaction with the product. Indeed, Clearpell has already found approval from initial users who are already spreading its goodness to other people both offline and online.

1. Environmental Scanning

With the growing health burden in the world, people are now looking for natural and healthier consumer goods to boost healthy living. Consequently, the need for organic foods, dairy products, poultry, meat, and other products has been on the rise in the recent past. Since 2017, green consumerism has driven the organic food products market up by US $97 billion from 2017 (Photcharoen, Chung, and Sann 100). Green consumerism is a broad term denoting the buyer’s preference for sustainable, environmental-friendly, and healthy products. The health benefits of organic or naturally cultivated crops cannot be overstated. These foods protect human beings from diseases such as cancer, cardiovascular conditions, and diabetes (Rana and Paul 162). Natural products also have strong antibacterial, antioxidant, and anti-inflammatory properties (Rana and Paul 165). This means that these products protect the body holistically, providing both treatment and prevention of disease. They boost the body’s immunity and consumers prefer to take them as accompaniments to meals and drinks. Organic food products can come in whole, like eggs, or are incorporated in other food preparations.

The consumption of natural beauty products follows a similar trend.  In solidarity with the global effort to slow down climate change, entrepreneurs in the cosmetic industry are now committed to the manufacture of environmentally friendly products (Lavuri et al. 1). These products incorporate seeds, flowers, leaves, stems, roots, or other botanical entities that thrive in nature (Ahmed et al. 293). Therefore, the cosmetic industry employs scientists with the relevant know-how to isolate various phytochemicals from natural products and tests them for the intended purposes. This widespread production of natural beauty products has changed consumer behavior, with buyers showing bias towards beauty products labeled as natural (Meier, Dillard, and Lapas 1). The marketing campaigns of these products emphasize this catchy word since those beauty products without natural derivatives are likely to perform poorly in the market. The struggle to find natural anti-aging cosmetics has also driven the manufacture and sale of beauty products in the market (Ahmed et al. 295). In sum, this promising industry is worth venturing into.  Natural beauty cosmetics are not only beneficial to the consumer. Mother Nature also benefits from the organic and natural cultivation of products intended for beauty products. Most importantly, the entrepreneur enjoys massive revenue from the sale of these goods, especially when consumers test and find value in a particular brand.

The decision of this company to venture into natural beauty products was derived from these realities. In addition to the market research conducted over the Internet, the company also carried out interviews with potential male and female consumers. The findings of this physical market survey were consistent with the online data. Truly, the thirst for workable beauty products is present in the market. Both men and women recounted their struggle with acne and other skin conditions. Some respondents who had healed from acne still complained of scars, and none of the products they tried on themselves offered any remarkable improvement. This insight prompted the company to undertake further studies to assess the scar-healing properties of Clearpell. The initial studies showed that the active ingredient in this compound has the ability to offer this. Another significant finding of this market research was the complaint about the undesired effects of some products labeled as “natural” or “organic.” This complaint is replicated in research where Courtney Blair Rubin and Bruce Brod, both medical doctors, show that not all products termed natural are free from synthetic derivatives that may cause irritation to the skin (1345). The manufacturing process that produces Clearpell, therefore, considered this comment to avoid undesired effects on its consumers.

1. MARKETING OBJECTIVES

Start-up companies are at risk of collapsing soon after establishment due to factors like competition, inexperience in management, and low capital among others. Moreover, new companies tend to be overambitious, given the vigor with which they enter the market (Freytag 26). Glo n’ Shine, with its wide range of natural beauty products and Clearpell being its primary commodity, intends to curve a sizeable share of the multi-billion natural cosmetics industry in the country. At the risk of being overambitious, Glo n’ Shine estimates that its annual sales will surpass US $100 million, a figure that is consistent with start-up firms younger than 5 years in the United States (Embroker.com). If this is to be achieved, the market share for Glo n, Shine will be 0.01%, which is a remarkable indicator of organizational growth. Over the next five years, it is the dream of the company that annual revenue will increase fivefold to half a billion US dollars. This will represent a market share of 0.05% in 2028. With an increase in the range of beauty products produced by the company, popularity in the market, and more investment by venture capitalists, this dream is not far-fetched. It is possible to reach these heights given the aggressiveness with which this company will penetrate the market. 

The mission of this company is hinged on environmental sustainability and customer satisfaction. Therefore, Glo n’Shine faces an uphill task of meeting these two objectives. In the end, it is the desire of the company to brand itself as a notable contributor to people’s health and well-being, while ensuring that commerce does not get in the way of sustainability. With this initial pitch, the company will delve into familiarizing the consumers with its products through advertisement in mass media, corporate social responsibility, and aggressive face-to-face marketing. In the initial phases, the company will offer free samples to customers with acne or scars from acne healing. The samples will serve as an experiment where users will be asked to self-report the outcome after a specific period. The company will publish and broadcast these findings for all to appreciate the incredible results that come with using Clearpell. The company will also employ a dynamic and focused team of sales experts to reach out to all customers and inform them about this product. The company will liaise with all grocery stores for the product to be displayed on strategic shelves. Additionally, the company will establish an online sales and promotion campaign that will incorporate, among other tactics, social media and email marketing. The digital marketing campaign will also employ both search engine optimization and search engine marketing. As is common with beauty products, the company will appoint a celebrity brand ambassador who will serve as a popular testimony of how this brand works. 

1. MARKETING STRATEGY

1. Target Market

The target market for Clearpell is diverse. For brand promotion, the market is segmented on five bases. The first basis for segmentation is demographic. The potential buyers for this product come from different genders and individuals from non-mainstream sexual orientations. Acne is a skin condition does affect men, women, and transgender individuals. Regarding age, the buyers will range from adolescents, a stage where this problem begins to manifest, to people in their fifties. The other relevant basis for segmentation is geographic. In the initial stages, the product will be marketed within the state, although the company desires to reach the national and international markets through e-commerce and other channels. Again, people from across the globe agree that acne is a stubborn condition, meaning that Clearpell will perform exemplarily well in the international market. The other basis for segmentation is income. The company understands that the buying potential of customers is dependent on their income status. Therefore, the product will be packaged in different sizes to suit the buying potential of different customers.

1. Analysis of Buyer Behavior

Types of consumer buying decisions

Clearpell is a skin care product that requires a buyer to buy and use it routinely. According to Goswami et al (p. 373), routinely buying customers do not have high involvement and tend to go for the best option available. The company understands that the customer’s decision to come for a repeat purchase will be determined by the results seen in the initial stages of product use. Therefore, the product is designed to give the best results in the initial stages. Acne does not go easily, meaning consistency is required for best results. This needs for consistency will result in routine purchasing. 

Cultural influences

The acceptance of natural beauty products across diverse religions, societies, and ethnicities is a boosting factor for this product. Another factor that will drive the sale of this product is the people’s desire for beauty. In an age where almost everyone has a social media account, physical beauty is an issue that people take seriously nowadays. Acne and black spots are considered a challenge to this beauty, and anyone who has this challenge will most likely purchase a remedy for this skin condition, Clearpell is developed with this notion in mind, and the product seeks to present the solution that people from all cultures are searching for in the market. 

Lifestyle analysis

A typical customer for this product is a 25 years-old African-American woman whose skin tone is light to chocolate. This imaginary client has landed a job as a pharmaceutical company sales agent and she frequents doctors’ offices and pharmacies selling her employer’s products. Therefore, she is always concerned about her acne problem and wishes to have a smooth face. This product, therefore, presents the much-needed solution that will result in a perfect match between what she does and how she looks. Besides this typical customer, Glo’ n Shine welcomes anyone looking for the solution to black spots and acne, or who is exposed to this condition due to the nature of their work to buy and try this marvelous product. The product will especially appeal to people who love nature and appreciate its healing capabilities. Advocates of natural conservation will not only make up the client base for his product but will also serve as ambassadors for its goodness. 

1. THE 4 Ps - MARKETING TACTICS

1. Product

Clearpell comes in the form of a lotion with four color variants: green, white, cream, and chocolate. The principal ingredient is cumin extracted from the seeds of the cumin plant. The extraction process follows a scientific protocol that is validated by the company’s team of experts. Cumin seeds oil consists of carvacrol, thymohydroquinone, nigellone, and thymoquinone among other volatile oils derived from the plant (Forouzanfar, Bazzaz, and Hosseinzadeh 930), The product undergoes quality control before release to ensure that it meets its therapeutic objectives and prevents any side effects that may come from using topical products. The product is packaged in a squeezable aluminum tube that delivers the product to the user’s palm or any other place in the body. The smallest tube is 30ml while the biggest is 200ml. the product bears the company logo, Beauty without Bunnies logo, and the mark of standardization to show the consumer that the product meets the minimum quality standards. Moreover, this product lists the ingredients used to make the formula, including water, stabilizers, glycerin, and preservatives. Other information on the package includes the batch number, the date of manufacture, the expiry date, and the storage conditions. The recycling symbol is printed on the tube to ascertain that the packaging material can be reprocessed to make other products and reduce pollution of the environment. 

Given the amount of expertise and detail that goes into the production of this beauty lotion, the company promises the user that they will achieve the desired outcomes when they apply the product consistently. In other words, the warranty for this product is implied. Besides the warranty, the product has unique features that make it stand out against its competitors. Most of the available beauty products in the market that pose as natural contain synthetic chemicals in addition to the natural derivative. The companies assume this approach to reduce the production cost and increase their profits. Moreover, such scrupulous companies do not have a reliable source for their natural ingredients (Rubin and Blod 1344). They also lack the equipment and expertise required to extract natural products from plants and incorporate them into the products. Glo’n Shine, on the other hand, organically cultivates the cumin plant in its farms spread across the state. Our field and factory scientists regularly consult to ensure that the production process from cultivation to processing is seamless and faultless. The quality assurance team focuses on the final product and tests any non-conformity in the production line. This emphasis on quality is the selling factor for this product. The company does not compromise on quality. Its culture is grounded on honesty and customer satisfaction is its operating mantra. 

1. Pricing Strategy

Due to the high investment made in producing green or environmentally friendly products, the price of these products tends to be higher than those of the competitors in the market (Qomariah and Prabawani 1). The purchase of such products is also a function of the buyer’s knowledge about environment conservation, green production, and sustainability concepts. In other words, consumers who know about environmental sustainability will most likely buy green products even if they are higher in price than the others (Qomariah and Prawabani 10). The attitude of consumers about such products will also have a significant effect on their buying behavior (Boon, Fern, and Chee 61). The pricing strategy used to sell Clearpell is, therefore, based on customer preference. As said earlier, one of the product’s target clientele comprises people who have failed to find results in the alternatives available in the market. Informing the client about the effort that goes into the production of this lotion will serve as the justification for the prices of the different packages of this product. 

1. Place

The fourth “P” of marketing denotes the place, that is, where to sell the product and the mode of delivery to customers (American Marketing Association.org). This also includes processes such as warehousing, packaging, inventory, supply chain, delivery, and logistics (Huaing and Rust 40). The main outlet of Clearpell will be the groceries store, although the product will also be available on major online commerce platforms like Amazon. By calling the company’s number, a customer will have direct deliveries made for free as long the value of goods ordered is worth at least $1000. The modes of delivery will take into consideration the packaging, temperature, and other relevant conditions that may affect the product’s quality. Since the delivery of the goods to the customers will be both direct and indirect, the company will ensure that the customer gets their goods in good time without unnecessary delays. The company will contract reputable delivery agents and partners will put the interests of customers first. The indirect delivery approach will be intensive where the company will partner with as many physical and online businesses as possible. 

1. Promotion

The company will employ an aggressive marketing manager who will lead a team of marketers and sales agents to promote the product. The team will come up with a marketing strategy that will be discussed with the operations manager before execution. To begin with, the company will advertise Clearpell through television. It will hire a popular female African-American celebrity who, through video editing effects, will have her Acne gone within 3 months of using this product. The video clip will be one minute long and will be circulated in five major television companies in the country. Visual images of this advertisement will also be developed. The company will use these images for billboard advertising and publication in beauty magazines. 

Additionally, the company will conduct an intensive digital marketing campaign. The chief operations officer will ensure that the marketing team is diverse in skills, meaning that at least one of the marketers will possess knowledge about digital marketing. As such, this marketer will ensure that the brand gets recognition in the digital space through social media marketing, search engine optimization, email marketing, content creation, video advertising, and search engine marketing. In line with the already proven impacts of digital marketing, the company believes that the company will record remarkable metrics soon after this promotion (Dunakhe and Panse 506). 

1. Response of the Target Market

After three months of intensive marketing, the company’s top management will ask for a performance report from the marketing team. The digital marketing team will use digital analytics to find metrics such as email open rate and engine search metrics to quantify the digital clientele that is interested in this product. It is expected that initial results on Acne removal will lead to repeat purchases, and therefore customer behavior in online and physical stores will be analyzed as an indicator of positive feedback. Buyer comments on social media will also be analyzed to determine whether users find value in this product. 

1. COMPETITIVE AND INDUSTRIAL ANALYSIS

The rise of the natural beauty products market had led to a tremendous growth of companies dealing with goods similar to Clearpell. However, not all products labeled “beauty” deliver the desired effect to the user. Nonetheless, these products compete with Clearpell for the market. 

1. Direct Competition

Direct competition in the United States comes from similar natural and organic beauty products made from botanical derivatives. Five of the competitors are True Botanicals, 100% Pure, OSEA, cokokind, and Ursa Major. These brands boast about natural beauty sera and lotions derived from seaweeds, fruits, and volatile oils. Due to their existence in the market, these companies have already curved a significant portion of the market. This existence is their major strength. However, their weakness is that their products do not address a single skin problem, but they make products meant to resolve all skin conditions without focusing on what menaces the consumers the most (thegoodtrade.com).

1. Indirect Competition

The top designer brands that make and sell beauty products in the US are both domestic and international. These brands are associated with celebrities and people who are looking for class regardless of the outcome. Moreover, these cosmetic products are based on petrochemicals and other synthetic ingredients. Some brands are non-designers, like Unilever, although they have a significant market share. The strength of these brands is their existence in the market and their associated popularity. Therefore, these companies are likely to conduct a smear campaign against new entrants like Glo’n Shine and record high success to its detriment. However, their weakness is that their products are harmful to nature. These products release chlorofluorocarbons into the atmosphere, contribute to more skin problems, and harm the natural ecology (O’Del et al. 41).