Sustainable Marketing Plan: Ozone Device & Mineral Sunscreen

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Marketing plan for sustainable marketing offering in
Assessment 2
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Executive Summary
The residents of Australia are facing the major problem of sunburn and various diseases
associated with it. In order to negate these issues, a sustainable market offering has been
developed in the likes of a device that generates ozone molecules, and a mineral sunscreen
that does not harm the skin. Marketing strategies have been developed that would help the
product launch successfully in the market. The financial, marketing and stakeholder
objectives of the company has been listed in this report. The target market for the
applicability of the product has been decided based on demographic and psychographic
conditions. Penetrative marketing strategies have been used to promote the product and get a
competitive edge over several close substitutes in the market. The nature and the unique
selling proposition of the products have been mentioned to the customers so that they would
prefer this product over anything else in the market. Promotion of the product is to be
facilitated using horizontally integrated marketing communication. In the next section, the
implementation of the marketing strategies has been outlined, and a budgeted cost sheet has
been estimated. Lastly, different internal and external sources have been identified that would
reveal the performance of the implemented marketing strategies.
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Table of Contents
Executive Summary...................................................................................................................2
1. Current Situation.................................................................................................................4
2. Objectives...........................................................................................................................4
3. Target Market.....................................................................................................................5
4. Marketing Strategies...........................................................................................................6
4.1 Positioning...................................................................................................................6
4.2 Product.........................................................................................................................6
Additional product-related strategies.....................................................................................7
4.3 Price.............................................................................................................................7
4.4 Placement....................................................................................................................7
4.5 Promotion....................................................................................................................7
5. Marketing Implementation.................................................................................................8
6. Budget forecast...................................................................................................................8
7. Evaluation and control........................................................................................................9
Reference List..........................................................................................................................10
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1. Current Situation
Sustainable provision of services aims to analyse the negative impact of the environment and
come up with solutions. The solutions will usher the individuals to a more comfortable life
without the direct effects of the environmental issues on them. Sustainable offerings may
come in the form of services and products that provide a practical and social resolution to the
consumers and producers in general (Garg, 2015). In this report, the effect of sunburn has
been discussed, and a sustainable offering has been designed in the form of mineral
sunscreen. The environmental impact of sunburn among Australians. It has been researched
that over 2.7 million Australians are directly affected by sunburn mainly due to their
negligence and lack of awareness on its effects (Barr, Clark and Steel, 2016). A consistently
rising temperature and depletion in the ozone layer has only severely enhanced the issues
related to sunburn. Therefore, owing to the increasing concern among customers at present,
and a need to sustain the environmental protection, the product has been created. In order to
protect from the harmful rays of the sun, the consumers use air conditioning products,
aerosols, sunglasses and sun-protective clothes. Ozone molecule generating devices is
another solution to this problem, as they bock the harmful UV rays of the sun.
The market for sunscreens and skin protections is experiencing an upward surge. It has been
found that even though the ozone-generating device will not perform particularly well in the
present market, mineral sunscreens will. This is because consumers prefer a readily available
solution. They are more likely to protect themselves directly with the use of sunscreens and
sunglasses than depend on a device that generates ozone molecules. The customers in
Australia face a significant issue from sunburn. This leads to cancer and another fatal skin
disease. Therefore, they always prefer better and more effective sunscreens. The consumers
want a product that is better than the existing products in the market. Mineral sunscreens have
the potential to be a great success in the market because they differ from contemporary
sunscreens. Thus, it is essential to come up with an effective marketing strategy to make this
potentially successful product launch in the market.
2. Objectives
The sustainable marketing offering will span for three years. During the three years, the
market offering is aimed to achieve the following purposes:
 Financial Objectives – The average revenue generated from the sales of the
product is designed to stand at $200,000 per year, for the three years. The
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production costs will not exceed $100,000, and the average profit margin will
stand at $100,000. Besides, the financial objectives will focus on the maintenance
of a strong liquidity ratio. The Return on Investments is forecasted to hold at 13%
for the three years consecutively (Burns, 2016).
 Marketing objectives – By the end of the first year, the marketing plan is
expected to occupy about 20% of the market share. By the end of the third year, it
is likely to range at around 30% to 35%. The plan will also aim to create an
awareness among the consumers against the fatal effects of the UV rays of the
sun, and how important it is to protect the skin. In order to make the product
readily available to the consumers, there must be a minimum of 200 dealers all
over the country.
 Stakeholder objectives – The plan also implements waste reduction programmes
and conducts environment sustainability programmes. Creating mass awareness
about the importance of sunscreens, and educating the customers on the same is
the primary objective of the plan.
3. Target Market
The need for a target market is to evaluate the consumer base and segregate them according
to their needs and preferences. This will help in enhancing the popularity of the product, and
make it easier for the company to market it. Market segmentation is done before launch a
product, and it gives information about the marketing trends that prevail at present (Venter,
Wright and Deeb, 2015). The target market of the sustainability plan has been provided
below:
Table 1: Target consumers of the plan
(Source: Created by the Author)
Demographic
Age 14 – 65
Gender Males and Females
Income Over $100,000 p.a
Occupation Employed and Unemployed
Psychographic
Social Class All classes
Lifestyle Austere and Luxurious
Personality Openness and Spontaneity
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The market mentioned above segment has been selected because the customers of sunscreen
products belonged to the classified group. It has been found that the target consumers
mentioned are more likely to be affected by sunburn disorders.
4. Marketing Strategies
The marketing strategies that the organisational unit must follow has been mentioned in this
section:
4.1 Positioning
The product will be placed in a way that attracts the consumers in the age group of 14 to 65,
having an income in the range of $100,000 per annum. There exists heavy competition in the
sunscreen industry, with the presence of several products that are already popular among
consumers. The lifestyle of the consumers has been selected to be austere and luxurious so
that all the classes of consumers are covered. In order to beat the competition, the product
will focus on its key ingredients. Since the sustainable offering will be processed from natural
minerals, it will be free from chemicals of all sorts. The product will be advertised in such a
way that highlights its difference from chemical products, that hurt the skin. Since the
customers of the present generation are concerned about their skin and well-being, this
product will help beat the strict competition (Alden and Nariswari, 2017). Due to its natural
composition, it can be applied by consumers three times a day, during their regular outings,
and weekend outings to beaches and parks.
4.2 Product
 Nature – The first offering will include a mechanical device that produces ozone
molecules through the employment of UV rays and high voltage electricity. The
second product is a mineral sunscreen, that is composed of zinc and titanium oxides,
which is in contrast to the chemically formed sunscreens available in the market.
 Level – The product will be an augmented consumer product.
 Type – The ozone generating device is an industrial product, whereas the mineral
sunscreen is a consumer product.
 USP – The first product will have the uniqueness of regenerating the ozone layer,
while the sunscreen will be composed of natural minerals. It is safe on the skin, unlike
the other chemically-composed products.
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Additional product-related strategies
The sustainable product offering will be accompanied by a well-oriented customer service
that will provide information to the consumers regarding the product, and will facilitate
promotion and advertising. It will also help solve the customer’s queries (Lovelock and
Patterson, 2015).
4.3 Price
In order to penetrate the market and capture the interest of the consumers, the pricing will be
done aggressively (Bang, Joshi and Singh, 2016). The focus will be made on the promotion
of the product. Thus, the products will be priced lower than the price of its immediate
competitors.
 Pricing goals – The pricing of the products will be made in a way that focuses on its
sales. Less price will increase its unit sales.
 Pricing strategy – Penetrative pricing strategy shall be followed.
 Demand forecast – It is estimated that the product will capture about 20% of the
market in its first year. The production cost will amount to $7.40 per unit, and it will
be priced at $9.99 per unit. This will result in a $5.59 profit per unit sold.
 Fine-tuning base price – The techniques of price lining, odd pricing and reference
pricing will be used to decrease the production cost, and at the same time, adjust the
base price.
4.4 Placement
The final product will be offered to the consumers in a direct distribution channel. An
intensive level of distribution will be followed. In saying so, all the targeted consumers will
be able to receive the product. Selective and exclusive models of delivery will not be
supported. Also, supply chain services will be charged with the role of moving the final
product from the manufacturer to the consumer. It is the most convenient mode of logistics
that will transport the product to the consumers (Hansson and Mattsson, 2017).
4.5 Promotion
Integrated Marketing Communication (IMC) will help in implementing and combining all the
promotional tools so that they can work cooperatively. Horizontal integration approach has
been chosen to facilitate all the promotion departments in the organisational unit. This helps
in making information about the product being available to the consumers
(multimediamarketing.com, 2019).
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5. Marketing Implementation
In order to implement marketing strategies, the company must take care of several factors.
The price is to be designed in such a way that it penetrates the market but at the same time,
results in a profit for the company. Promotional activities are to be undertaken according to
the horizontally integrated marketing communication (Armstrong et al. 2015). The product
design will reflect the USP of the product – its composition of natural minerals and its safety
on the skin. The marketing strategies are needed to be implemented in 3 months before the
launch of the product. The sales department will be responsible for product promotion, and
the finance department will be responsible for apportioning the costs of the company and
fixing forecasted sales. It is calculated that the total cost for the implementation of marketing
costs will amount to approximately $17,000.
6. Budget forecast
Table 2: Forecasted budget sheet
(Source: Created by the Author)
Budget Forecast for three years
Particulars 2019 2020 2021
Revenue:
Unit sales 10000 15000 17000
Average Price ($) 9.99 10.3 10.5
Total Sales 99900 154500 178500
Less: Production Cost 2300 4700 5300
Less: Distribution Cost 7800 8600 6120
Less: Marketing Cost 17000 15000 23000
Total Costs 27100 28300 34420
Projected Profit 72800 126200 144080
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The approximate budget of the plan draws out its estimated sales, costs and profits for the
three years, ending in 2021. A budgeted cost sheet helps the company in determining its
operations so that it does not face any crisis in the financing sector.
7. Evaluation and control
The marketing department of the organisational unit will be charged with the responsibility of
monitoring the marketing activities of the sustainable plan. Both internal and external events
will be controlled by the marketing department to ensure the implementation of the
operations according to the program. The first facet will be monitoring the internal activities.
Several activities are required to be controlled in this facet. The types of media channels
used, production costs and the timing of the promotion shall be controlled by the marketing
department. The department is also required to comply with the estimated cost budgets and
maintain a margin of production costs. It must also make sure that the expected profits are
met. These are some of the most impactful representatives of the effectiveness of the
marketing strategy. The financial department will be responsible for analysing the market
share occupied by the product, and the increase in customer interaction (McKiernan, 2015).
The external monitoring processes include analysing the sales generation in the market. The
marketing department is required to use the forecasting tools to ensure that revenue generated
by the product is following the estimated plans. A negative gap in the planned and actual
revenue will mean that the product has been unable to meet the expectations of the financial
managers. On the other difference, a definite gap would indicate that the project has been a
success, and generated greater revenue than the management’s expectations. Customer
feedback is also a prominent representative of the customer's viewpoint of the company. A
positive response from the majority of the consumers would indicate that the project has been
a success and the consumer base has widely accepted it. The financial metrics include sales
and profitability. Comparison of the actual financial performance with the standards would
indicate the effectiveness of the marketing policy. Since the product aims to maintain
environmental sustainability, a review of the relevant environmental laws in the country
would suggest if the company has been able to adhere to the environmental standards. All the
factors mentioned above will help in evaluating marketing strategies.
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Reference List
Alden, D.L. and Nariswari, A., 2017. Brand Positioning Strategies During Global Expansion:
Managerial Perspectives from Emerging Market Firms. In The Customer is NOT Always
Right? Marketing Orientations in a Dynamic Business World(pp. 527-530). Springer, Cham.
Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V. and Gaudet, D., 2015. Marketing: an
introduction. http://131.193.209.39:8003/view_syllabi/static/view_syllabi/syllabus/MKTG
%20360%20CRN%2038150%20Trampas%20Spring%202018.pdf
Bang, V.V., Joshi, S.L. and Singh, M.C., 2016. Marketing strategy in emerging markets: a
conceptual framework. Journal of Strategic Marketing, 24(2), pp.104-117.
Barr, M.L., Clark, R. and Steel, D.G., 2016. National Institute for Applied Statistics Research
Australia.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Garg, A., 2015. Green marketing for sustainable development: an industry
perspective. Sustainable Development, 23(5), pp.301-316.
Hansson, I. and Mattsson, L., 2017. Product placement: A study of audience perception on
brand recognition and congruence.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
McKiernan, P., 2015. Profit Impact of Market Strategy (PIMS). Wiley Encyclopedia of
Management, pp.1-4.
Multimedia Marketing. (2019). Integrated Marketing Communications - Multimedia
Marketing. [online] Available at:
http://multimediamarketing.com/mkc/marketingcommunications/ [Accessed 9 Mar. 2019].
Venter, P., Wright, A. and Dibb, S., 2015. Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), pp.62-83.
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