Executive Summary
New business is offering Dead Sea products. This business aims to operate in the main place, California. It seems an ideal location for the company to initiate the business and get an early market share. However, due to the competitive market, a comprehensive business plan is required. After elaborating on the business and its main products, the vision and mission of the company are illustrated. The company depicts the legal structure in the new market to run business operations. The approach of the management in this business process is democratic. However, department heads will control the whole process. Some key entry barriers have been identified. Identifying the key entry barriers is good thinking for effective preparation. Before using strategic analysis such as SWOT analysis, core competencies are developed. The SWOT analysis streamlined strengths and opportunities for the business in the new market. Based on the key insights, key performance indicators are developed to measure performance and success. It seems the initial phase of the plan. In the second phase, Industry analysis is done to know the latest industry trends and standing of the US cosmetics industry. Many competitors have emerged in the market. Along with their products, some key competitive traits are part of this section in the plan. Competitive insights will be used to make competitive strategies. Some key suggestions or small steps to build emotional intelligence are highlighted. Corporate social responsibility initiatives are also included in this business planning process to create a positive impact on society an environment. In the last section of the business plan, a comprehensive marketing plan by using a marketing mix is designed for the firm to market its products and enhance the customer attraction. The market budget is limited. However, it will be enough for effective positioning and promotion. The intention of this new firm is to successfully implement the plan along with some improvisations due to changing beauty trends in the market.
Introduction
Starting a new business is always a big challenge for the management. It seems interesting to choose a new market to start a business and target new customers. To gain success in the new market, the firm needs a good entry strategy along with a comprehensive marketing plan. The United States industry is competitive, and competitive strategies are required for the company to make the difference in this competitive landscape. Entering the Dead Sea product industry is a good idea. The firm can enter with some high-quality products to enhance customer attention and increase the market share early. In this comprehensive business plan, a wide industry and competitive analysis along with an effective marketing plan are included. Also, some corporate social responsibility initiatives will be illustrated for this new business to reduce the environmental impact.
The Company (Business)
The company intends to sell Dead Sea mud products such as Mud, face-mask, tanning oil, and soap and body lotion. The company is intending to start a business in California. The main mall in California is the best choice for the company. The location is ideal because the company can target an immense range of customers. The customer traffic at this location is ideal for business. Dead Sea business is in the limelight in the cosmetics industry. Traditionally, organizations in this industry use artificial materials to make products. Now, companies in this industry are using dead mud sea to make some organic cosmetics products for the customer. The firm has come up with a new idea to start this particular business. Apart from Mud, face-mask, tanning oil, and soap and body lotion, other products are removals, cleansing creams, masks, and facial scrubs.
· Mission Statement
The mission of the company is to produce high-quality Dead Sea products in health and beauty care industry for customers to take care of their skin and make them loyal and satisfied in the next two years.
· Vision statement
The vision of the company is to increase its credibility in the organic business in the skincare industry to reduce negative effects on human health.
Legal Structure of the Business
It is the limited partnership. The structure includes CEO, store manager, four sales representatives, and 2 cashiers. Under the sales section, sales representatives will work. It is a partnership between two members. The company is owned by these two partners. The big advantage of the partnership is the easy formation. Both members are the founder of the company and share responsibility. Interestingly, both partners have complementary skills, and profit is to be shared. The partnership is to be legalized in the United States (California) easily due to minimum flexible regulations for partnership business. A larger pool of capital is a prominent advantage that makes the formation of this business easy. The legal structure, despite containing advantages and disadvantages, is better for this company due to its flexibility. With the change in business regulations, the company can make some changes easily.
Organizational Chart
Management
The management of the company is effective and capable of running the business in this region. This first thing that the management can do is to localize the business effectively to integrate with local skin care or beauty care trends. The management team of the company consists of five key managers. Different departments such as marketing, administration, human resources, supply chain, and production will have a general manager. Line managers are controlled by these managers in all departments. Line managers will control the bottom-line of the company, such as sales representatives. These general managers will play the role of the department heads and report to the chief executive officer. It is to mention that the management structure exists in a democratic culture. Management will delegate and work with subordinates to improve the work process and produce outcomes according to expectations. The management decisions are to be made at both top level and bottom of the company. The business is looking to apply the concept of managerial leadership to build a strong internal force and create a good impact on the internal business environment.
The new business needs some key management traits. The structure of the firm is small, and the management will have to play a role of leadership to manage and organize the bottom-line enthusiasm, decisiveness, and integrity are key traits for this management team.
Entry Barriers
Competition, differentiation, and regulations of the country are some key entry barriers. The firm has to make an effective strategy to eliminate these barriers and make a successful entry. It is important for the management of the company to identify these barriers before entering this market and make pertinent strategies. For Instance, the major entry barrier is the intense competition. In California, many rivals exist with high-quality skin care products for customers. Customers of these companies are loyal and satisfied, and it seems tough for the company to enter the market and enhance customer attention. Competitors are well established regarding financial capability, business expansion, and competitive advantage. It may take a lot of time for the company to establish the business in this competitive landscape. Thus, some thoughtful considerations are needed to enter successfully in this market. Another entry barrier is product differentiation. Firms in this region are capable of depicting differentiation. Many skincare products are in the limelight, which is differentiated by companies to create an entry barrier. The differentiation of skin care products is done by pricing, packaging, and design. Differentiation is a key trait in the competitive market that can restrain new arrivals from entering successfully. It also hits the product standard of the new company. In the skin care industry, business regulations are complex. Health regulations are also imposed on business. The firm is responsible for providing a pertinent rationale for any product development. The product research and development process is triggered by some complex regulations (Happi.com, 2017).
Core Competencies
Decision making, work standard, product quality, and integrity are core competencies of the company. The effective decision-making process is a major core competency of the business. The firm management has to make competitive decisions in the best interest of the company. Right decisions at the right time for the business can enable business consistency and sustainability. Regarding product development, marketing, supply chain, and competition, these are firm decisions that can help to survive. This business is integrated with some new work standards. The work standard is a key to sustaining the quality of different skincare products. The firm has to create some key measures to evaluate product performance and develop the standard. The standardization of the product is a core competency that also provides a lead to the customer attraction and attention. The quality of the product is also a key core competency that leads to the high brand image of the company. For Instance, the new firm is intending to use organic Dead Sea material to make these cosmetics products. The product quality is also aligned with the mission and vision of the company. To maintain the work standard, the use of quality Material is mandatory for company management. Also, product quality is the main demand or customer requirement. Now, in this new region, quality is going to be a major strength that can help the firm make the difference in the presence of other rivals. As far as the internal business process is concerned, integrity is the main core competency. Employees will be working in different teams, and it will show harmony or integrity.
SWOT Analysis
This strategic analysis tool will help the company derive several insights and make an effective business strategy in a competitive landscape. It is important for the business to identify its strengths, weaknesses, opportunities, and threats to make effective business strategies.
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Strengths 1. The Wide Range of the Product 2. Innovative Display of Products 3. A Good Brand Image 4. Business & Product Expansion 5. Product Development Process
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Weakness 1. Lack of Knowledge 2. Lacking Search Engine Optimization 3. Poor Social Media Marketing 4. Lack of Differentiation 5. Limited Portfolio |
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Opportunities 1. Business Expansion 2. New Trends of Customers 3. Personalization Regarding Product Development 4. Customized Design of Products |
Threats 1. New Arrivals in the Market 2. Existing Brands 3. Negative Publicity 4. H Conscious People 5. The Business Controversy |
The wide range of the product is the biggest strength of the company in main Place California. For Instance, body lotion, made from dead mud sea material, contains many categories, which is based on the nature of body skin and age of customers. Similarly, the customer can have different options when making buying decisions due to this product line. The product line provides an edge to the company regarding availability. The strength of the firm is the innovative display of products. In the store, the innovative display is a key trait or strength that enhances the customer assertiveness. Due to work standardization and quality measures in the business, the company may have a good brand image. The good brand image is a key strength of the firm, and it provides a lead to gaining a competitive position. Financially, the firm is capable of making pertinent investments such as business expansion and the product development process. Financial capability is a key strength because it supports strategic business consideration.
The firm is starting a business through an online platform. The biggest weakness of the firm is that people or the intended target audience do not know the firm of the product. The search engine optimization is needed to eliminate this weakness Lack of marketing, especially on different media channels, is a big weakness. The company does not have any campaign on different media channels to attract customers and get to know the brand. The major weakness of the business is lack of differentiation. For Instance, customers may find products with the same features and qualities from different companies.
Business expansion is a big opportunity for this business in California. As mentioned, the financial capability of the firm is good, and it can make the pertinent investment. This strength also provides a great opportunity to expand the business. Along with the business expansion, the firm is in the best position to integrate with the new trends of customers in the cosmetics market. Dead Sea products for skin care can be molded according to shift in the customer demand, needs and behaviors. The firm can increase sales and grab new customers in this potential market. Based on the financial capability and workforce in the internal business process, the firm management can depict the personalization regarding product development. Based on different customer needs, products such as Mud, face-mask, tanning oil, and soap and body lotion can be personalized. Customer design of products in the cosmetics industry is a big trend that can motivate customers and increase sales. Through personalization, the firm can guide customers regarding their skin care. Based on the nature of skin, pertinent customization is to be done.
New arrivals in the market of cosmetics industry are in the limelight along with the differentiation capability. They adopt the differentiation trait as a key marketing strategy. It seems a huge threat for this business because it can put a big dent on sales and customer traffic. Existing luxury brands in California have already positioned in the minds of customers effectively. Thus, it seems tough to convert customers. In the cosmetics market of California, negative publicity of products is a major threat. People are becoming health conscious, and they usually perceive new products controversial. Thus, the business controversy due to the negative publicity is a big threat. When containing the strategic considerations, the management must have to keep these threats in mind.
Key Performance Indicators
Key performance indicators will be developed by the management to measure the performance of the product in the market and employees in the internal business process. The first key performance indicator of the company is quality control. The new business aims to control the quality of the product, and based on it, increase sales. The company aims to increase the quality of the product through enabling consistency regarding the quality of products. If the product quality is prominent and consistent in the skin care or cosmetics market, it seems the company is going in the right direction. Interestingly, the key performance indicators of the company are divided into different segments. For instance, these are divided into financial, customer, process, and people matrices.
· Financial Metrics
In the financial metrics, profitability, sales, and revenues are key performance indicators. The firm will set the profit margin in each quarter. If the company gains 3% increase in the profit margin in each quarter, it depicts the success. Also, regarding sales, the firm will set the daily sales targets. If the management meets these targets on a daily basis in main place California, the firm may declare its success. Increased revenue streams or growth is a key success indicator. High revenue streams in the skin care industry open ways for the management to expand the business.
· Customer Metrics
On the other hand, the customer acquisition cost and customer satisfaction and loyalty are key success indicators. Satisfied customers in the cosmetics markets usually depict loyalty due to the quality and benefits. Even, they are willing to pay high prices of products to get the product benefits. The company intends to judge the level of customer satisfaction to demonstrate its success in the competitive market. Moreover, the customer acquisition cost should be low. Estimating customer estimation cost is a good approach to streamline the success or failure of the company.
· People Metrics
In the people metrics, employee’s satisfaction and employee turnover are two prominent key success indicators. In California, the best strategy for the company is localization to integrate with the local cultural values and build the internal culture of the business. The business can satisfy its employees through the pertinent work culture and reduce the employee turnover. Employee retention strategies such as monetary benefits, appreciation, promotions, and delegation are effective to reduce employee turnover and enhance satisfaction. The firm is looking to retain its best talent, which is a key success factor or indicator.
Industry Analysis
Industry analysis will include the investigation of several industry insights and trend. It can articulate the industry or current business situations of companies in the market. As far as this particular business is concerned, industry analysis is to be done by navigating different macro forces. Moreover, it has been observed that people in United States are becoming tech-savvy. People are using different digital media channels to buy cosmetic products. In different regions of United States, people use technologies to buy and pay to make the whole buying process easy. The industry is full of customers, including different demographics. Companies in this industry have made different products for different customers from teenagers to young adults and young adults to senior citizens. Thus, based on different demands and the nature of customers in California, the firm can make segments effectively.
The growth rate of the economy is increasing with the passage of time, and it seems a good sign for any new business. Trade, media, and tourism are three main pillars of this economy. It is a fact that trade barriers are less than any other part of the country, and it goes in favor of the new business. Interestingly, in this stabilized economy, the firm can have the customer with more buying power (Sorvino, 2017).
Concerning the social factor of this region, it is seen that racial intolerance is increasing. Apart from these differences, people are well educated and health conscious. Skin care or beauty care products can also be developed for those people in this industry that are discriminated against due to the color differences. It will be a competitive trait that the company can use to make the difference.
https://www.forbes.com/sites/chloesorvino/2017/05/18/self-made-women-wealth-beauty-gold-mine/#36037b012a3a
With the global perspective, millions of immigrants are coming to this region to start a professional career and get the education. These are global customers for the company in this particular industry. It seems imperative to integrate with multinational cultural values to engage with these global customers and take long-term business benefits. People are coming and going in this global business era, and the US cosmetics industry is the best place for the company to entre with these Dead Sea products. However, several strategies regarding marketing are to be designed for long-term advantages. Revenue in the Cosmetics segment amounts to US$13,591m in 2018 (Statista.com, 2018).
Source: https://nailcenter.us/cost-trends-of-industry-beauty-2016/
Many trends in the United States Cosmetics industry are emerging, and firms are adopting in an effective and lucrative manner. In this industry, the new trend is linked with the female customer. Many brands exist due to the demand of females to find and try new brand’s products. The trend of developing new products can be seen, and for the new business, the adaptation of this trend can be rationalized. Also, creativity, innovation, differentiation, and new ideas have been enhanced by companies. Cosmetics companies are making this business unique with time, and customers accept it. The industry size can be measured by the growth and development of skin care in the United States, which is $ 20.1 billion from 2014 to 2018.
http://karlasmallmanxx.wixsite.com/thekikoblog/single-post/2015/10/21/Beauty-Industry-Analysis
Market Analysis
Market analysis is mandatory to make a good marketing plan. To increase sales of Dead Sea mud products in California, market analysis is imperative to come up with a competitive strategy. Furthermore, the market is expected to grow (3.7%) every year. It depicts rapid market growth. In this market, the buying power of millennials has increased due to the skincare or beauty care requirement. In the fashion industry, people need to take care of their skin and promote themselves. In California, many people work in the fashion industry, and they contain increased buying power due to their needs. Sales in the market have increased due to health consciousness. Use of chemicals has converted many customers. However, business is coming up with a big change. The cosmetic market of California is going to be changed due to the Dead Sea. Making the cosmetic market mud product market is a big challenge. However, it is possible if customers depict positive perceptions.
Moreover, it is seen that internet retailing is increasing in Orange County. Some companies, to be elaborated in the competitive analysis, are selling dead sew mud products along with a wide range of cosmetics. The market is growing due to the rapid growth of companies on different social media channels. These firms are marketing products on these channels to let customers get information and place orders. According to the results of the secondary research, the market is triggered by some new trends as well. For Instance, cosmetics firms are using those ingredients in the skincare product, which are trending. It is a great trait to meet needs and satisfy customers. This market is unique due to its uniqueness. People in this market must contain a rationale to buy products, especially Dead Sea products. For Instance, this region welcomes tourists from all over the world. To protect the skin from sunshine, dryness, and other damage, customers will buy the product. It can be said that skin protection is the main reason for customers to buy body lotions, cleansing creams, and many other products. The California market is also associated with other factors. Natives take care of their health and skin by using organic cosmetics. To shape the behaviors of people in this market, the firm needs to eliminate the side effects of using these products. The positive perception of products and brands can increase sales.
US beauty market, including California and Orange County, depicts more than 16% global market share. Color cosmetics may help beauty companies to increase the revenue growth (US$15 billion) by 2022, and it will be more than 4% from 2018. Brands such as Coty, Estee lauder, L’Oréal, LVMH, new Avon, Ulta Beauty, and Revlon are some key brands in the United States (Technavio.com, 2018). Apart from this growth, business regulations are tough, which can restrain firms from product development. For instance, in California, selling or introducing products which have been tested on animals are prohibited (Beautypackaging.com, 2018).
This comprehensive market analysis elaborates many key trends, customer behaviors and possible traits to be used by the company. However, to make an effective marketing plan, the firm management can use industry and market analysis as a base to demonstrate a big strategy. Going deeper in the market analysis, targets in the market are to be identified. In the competitive market, it is essential for the company to target customers and provide them with a rationale to buy the product.
Target Market
People are to be targeted through segments. Based on demographics, behavioral, geographic and psychological segments, the firm can enhance the targeting and positioning. Target customers for products are both males and females.
· Demographics
Regarding demographics, target customers of this new business are male and females, containing the age of 20. From 20 to 60, it is a great opportunity for the company to make different segments and highlight them in the marketing strategy (Cosmeticsbusiness.com, 2015). Most of these customers are students, professionals, and households. The upper class is becoming health conscious, and it can be targeted. However, the middle class or lower middle class are the main targets. Low priced products are suitable for this customer. The most important thing is to make customers minds by creating a positive perception. The target customer segment is to be assertive (Cahill, 2014)
· Geographic
In the geographic section of the targeting, the business can target customers, which is like in both urban and semi-urban areas in California. The geographic segment is integrated with climate change and its effect on the skin of people. In extreme weather conditions, these products are to be sold to an immense range of customers.
· Behavioral
The behavioral segment is also prominent because it includes many customers. People who are extrovert are prominent targets. As mentioned in the market analysis, people like to have new brands to improve skin health. These people, especially young adults, are health conscious and want to improve the healthy lifestyle. Innovators and value-oriented people can also be included in this customer segment. Both males and females like to use innovative products, especially placed in an innovative manner in store. They are good adapters of skin care products, and they create the space for the company to arrange a reasonable product line. The positive attitude in buying skincare items is in favor of the company
· Psychological
In the psychological segment, customers like to use products to depict beauty. They want to depict high social status by improving skin quality. People in California usually perceive these skincare products to improve personality. In other words, they align beauty with personality. The wide range of this customer segment is visible in the market, and therefore, this segment has been designed (Weinstein, 2013).
Based on the market condition and the perception of customers, the management can estimate the growth rate of the target customer segments. The geographic segment will Market, and industry evolve with time due to new beauty trends. Therefore, these numbers can be changed. The analysis of the competition is also important for the company to judge target market segments of rivals. Evaluating these segments or targets is through sales and buying behavior is essential to make relevant strategies. The shift in these target segments is not rare because these customers want to take immediate benefit from skincare products.
Competitive Analysis
Competitive analysis can help to make competitive strategies. It includes a competitive profile matrix and competitive positioning map.
List of different local competitors, which are operating in California, is as under
| Companies | Proctor & Gamble |
Dead Sea |
| Sales | $16.69 Billion (Thomas & Galligan, 2018) | $ 4.0 Billion |
Except for Odalisque California and Dead Sea of Jordan, all competitors are selling traditional or artificial skin care products. These companies can give a tough time to the new business due to brand image, differentiation, price, and effective placement. However, by coming up with some organic cosmetics products in California, the firm has depicted the differentiation. These products are not to be imitated by these competitors. Thus, it seems a competitive edge. However, major competitors with the same product line are Odalisque California and Dead Sea of Jordan.
· Odalisque California
Main products of this competitor are Dead Sea soap, Dead Sea body mud (natural), Dead Sea salt body scrub, Dead Sea magnesium oil, and moisturizing Dead Sea mineral soap. In the facial category, this competitor offers Dead Sea mud mask and purifying Dead Sea soap. Also, bath bombs in the bather category is one of the most prominent products of this company.
· Dead Sea of Jordan
It is also a top competitor of the new business. As compared to Odalisque California, this company offers the personalization or customization of skincare products to customers. The bestselling item of the company is a body mud mask. Dead Sea wet paste Black Mud Mask is the top product, which is filtered from Impurities, Stones, and unnecessary Particles. This mud product is sterilized effectively to make it ready for use. Apart from this bestseller, hair, foot, hand, and facial masks are included in the product category. Interestingly, due to personalization of the product, the company charges the customer regarding LB.
· Competitive Profile Matrix
| CMP | Dead Sea Mud | Proctor & Gamble | |||||
| Critical Success Factor | Weight | Score | Weighted Score | Score | Weighted Score | ||
| Quality | 0.80 | 4 | 3.2 | 4 | 3.2 | ||
| Marketing | 0.60 | 4 | 2.4 | 3 | 1.8 | ||
| Innovation | 0.70 | 3 | 2.1 | 3 | 2.1 | ||
| Product Range | 0.65 | 3 | 1.95 | 4 | 2.6 | ||
| Price Competitiveness | 0.75 | 4 | 3.00 | 3 | 2.25 | ||
| Management Competency | 0.25 | 3 | 0.75 | 3 | 0.75 | ||
· Competitive Positioning Map
Competitive Advantage
The Dead Sea Mud Product business needs to focus on areas or aspects of the business that provides a lead to a competitive advantage over other rivals in California. The best thing that the company can do to gain and sustain the competitive advantage is to integrate with the new industry trends and come up with some differentiated products. It is a fact that these companies or competitors have gained a competitive advantage over other rivals or new arrivals by sustaining the research and development process. Product development is triggered by the new industry trends and needs of customers. If the customer finds a new product which meets the newly identified need, the firm can gain a competitive advantage.
Also, another trait to gain a competitive advantage in this industry is to depict sustainability. Some key corporate social responsibility initiatives are to be taken by this new business in this industry. However, it is to mention that it is a key to get an edge. It has been revealed that companies have falsified in cosmetics, especially in organic or Dead Sea industry. The most important thing for the customer is to maintain the product standards and produce the product, which is not destructive for people’s skin. It makes any cosmetics brand reliable in the industry, and it leads towards competitive advantage. Regarding all these products, Dead Sea of Jordan has maintained the product standard and made the difference.
Another key competitive trait to get the advantage over these competitors is to enhance the marketing process to attract millennial customers. It is a key marketing strategy that can help to focus on target customers. Competitors in this region have done it broadly, and it has provided long-term benefits. Customers have become loyal and emerge as an entry barrier for new arrivals (Porter, 2008 ).
Several ways have been presented in the business communities to get an edge when entering the new market. It depends on the firm’s capability to use the product and market resources and meet the objective. The most appropriate strategy for this new business is effective branding. It can be tough to emerge in a market where substitutes are in the limelight. The competitor mentioned above positioned better in the minds of customers, and it also helped the management to change prices. Customer loyalty makes assertiveness of customers, and they usually want to pay higher for products. Thus, it is a great opportunity for the company to increase its brand image and get benefits.
The management competency is highlighted in the competitive matrix. Organizations intend to strengthen the internal business process to improve efficiency and build a strong workforce. Making high-quality products needs a strong work culture that can retain bets employees. Product development needs concentration regarding innovative and creative ideas. These firms exist in this market due to excellent management competency, and it is also one of the prominent reasons for the competitive advantage. Improving customer service is a major competitive trait in this industry. People usually want to know about the product, its features, and benefits. Improving the customer service team can facilitate the string and long-term customer relationship. Makeup artists or skin experts are to be trained to communicate with customers in main place California. The organic cosmetics industry contains companies, which use customers as key sources of competitive advantage (McGrath, 2013).
Dead Sea business in California can get the competitive advantage by developing competitive intelligence. Competitive intelligence is an ability of the company to think in competitive terms and make competitive strategies. This business can build competitive intelligence and hold a competitive position.
Competitive Intelligence
Competitive intelligence is based on management cognition. Mud product business management has to demonstrate strong competitive intelligence and get an edge and implement strategies. Competitive intelligence is a way of gathering the customer and competitor’s data of information and making competitive strategies.
Dead Sea business aims to portray competitive intelligence by using modern data tools. The model data collection and the relevant adaptation have emerged as a good approach for companies to get accurate information about customers and competitors. For Instance, by using a proper system, this firm can divide the data or information into two sections. First, it can investigate the data of the healthcare industry and customers, especially, which are concerned with skincare. On the other hand, the management can gather data regarding the organic cosmetic industry. Health analysis can help the firm to identify different skincare issues. Organic cosmetic industry analysis can present modern industry trends.
The concept of market continuity is suitable. Business management can apply it effectively. The best way is to conduct frequent market research. Trying something new or unique regarding information is a unique idea to produce an extraordinary product. The industry is changing and is imperative to get an edge through emotional intelligence. It refers to increasing the market and customer knowledge to take appropriate actions (Murphy, 2016 ).
The competitor analysis is a part of competitive intelligence. In this new market, the administration wants to trigger several metrics to measure competitive intelligence. First, in Place California, the plan is to observe sales and investigate how they perceive competitive content. New business likes to use competitive content on the digital channel. Its sales seem better or upward, the firm can sustain the level of competitive intelligence.
The mentioned competitors have increased competitive intelligence and the impact on business. It includes both learning and growth in the business process. Based on data or analysis, it is to be learned how the firm can develop Dead Sea products. It is a modern industry, and usually, competitors compare products regarding process, features, and quality, impact on customers and the impact on society and the environment. Similarly, the firm should go with the same trait to increase its intelligence and build the base for the competitive advantage.
This business is new in this market. Instead of just attempting the differentiation of dead-sea mud products, the focus must be on quality. The competitive advantage will be gained by streamlining emotional intelligence. It may take time to increase and learn from the market. However, the management is looking to take it as long-term strategic consideration (David, 2013).
Porter Five Forces
| Power of Buyers | The bargaining power of customers is high due to the availability of different substitutes in this region |
| Power of Suppliers | Supplier’s power is also high, as access to organic deep sea materials is quite tough |
| Threats of Substitutes | The threat of substitutes is high due to imitating capability of different organizations |
| The threat of New Entrant | New arrivals can take benefits of easy formation of the busyness. Pertinent investment can help to grow in a new market |
| Competitive Rivalry | The rivalry is high due to new arrivals and existing competitors. Competitors like Proctor and Gamble contain a high brand image and customer loyalty. |
Key Success Factors
Six key success factors of the business in California are divided into three different segments. These three segments are strong leadership, strategic planning, and perfect execution.
| Strong Leadership | Strategic Planning | Perfect Execution |
| Right people at right jobs | Sustainable business | Effective collaboration |
| Customer Focus | Product developments | Systematic Business Operations |
Product Life Cycle
| Stages | Consequences and Initiatives |
| Introduction | The firm may have low dead sea product sales in the market, as customer conversion is a steady process |
| Growth | The firm will improve operations mall and inventory to reduce the cost. Due to high quality and differentiation, sales will be increased. |
| Maturity | The firm will gain a competitive advantage over competitors. With constant sales, the firm will focus on profitability. |
| Decline | It is a situation to avoid any product. If the company observes reduced sales of the product, it can start new developments to sustain profitability. |
Corporate Social Responsibility
To sustain the business in this contemporary business era, corporate social responsibility initiatives are to be taken. The firm intends to depict the reduced society an environmental impact.
Before designing the CSR strategy in this new business process, it is to ensure that the CSR initiative is aligned with the main business strategy. It is a fact that the beauty industry has become controversial in many regions due to unethical business activities and non-environmentally friendly products. Chemical pollution has hit the health of people badly in recent years. Thus, when starting a new business, some thoughtful considerations are needed by the company. For Instance, the firm is aiming to demonstrate packaging reduction. It can contribute to the reduction of paper consumption. Printing inside the packaging is a good initiative to become an ethical company. Another key initiative to reduce the environmental or health impact is green formulation. The firm is already going with organic ingredients. However, careful formulation is a key to make the difference. Interestingly, an efficient and lucrative supply chain process is required to run a successful business. Now, the need for an ethical supply chain process is mandatory. For Instance, the firm must integrate with the marine regulations to contribute to the safety of the marine life when extracting mineral from the dead sea. The green supply chain is the best option for the company to be ethical and sustainable business. Along with the environmental sustainability, the social responsibility is also a responsibility of the company. Instead of falsifying or overstating products on different media channels, the firm needs to depict actual origin and ingredients of products. The corporate social responsibility is to be implemented with the perspective of the consumer market. Selling Dead Sea beauty products to customers, the company must run additional campaigns for those people, which have sensitive skin. Many customers may damage their skin due to highly formulated products. Instead of gaining benefits from rapid sales, sales limitations are necessary to protect users.
The firm aims to give back to the communities. For Instance, it can initiate public awareness programs with different health organizations at the maturity stage of the product development. Along with greater profitability, the firm will be in a good position to create awareness regarding health. The firm wants to create an impact on health through hand washing initiative. At the community level, healthy activities must be appreciated, and it is one of the best things that the company aims to give back to society.
Dead Sea will be responsible for these community programs In California. The firm can initiate or streamline these initiatives on Black Friday and Boxing Day. For Instance, the firm may arrange community programs and provide details of what it has contributed to the community. The firm will set the initial budget, which is $20,000. The firm has to initiate these programs because it wants to engage with both customers and the environment in a positive manner for a long run.
These are some key CSR initiatives that can also create goodwill in society. Some effective strategies are needed to execute these initiatives. Thus, business must gain support from the top level to execute these initiatives at the bottom level. Engagement at all levels such as supply chain, production, and marketing can assist to meet the purpose at the end. Another strategy is community involvement. The management can initiate several community programs to support females, which are discriminated due to racial, color and religious differences. Sponsorship in community development programs is the best thing that the company can do at the local level.
The new business needs a sustainable partnership in the market. The best thing is to contain the partnership with local communities to support communities. The impact on the environment and society should be positive instead of just prioritizing profitability and growth. By these considerations, the plan is to get a sustainable competitive advantage.
Marketing Plan
The marketing plan includes a complete marketing mix strategy. It includes product, price, place and promotion strategies. It also includes a complete promotional plan to enhance the attraction and get the attention of a large customer base. The marketing mix strategy depicts the complete marketing plan for the company. Every element of the marketing mix contains a separate strategy, which can be combined to depict a complete market plan.
· Product
Mud, facemask, tanning oil, soap, and body lotion are the main products of the company. Based on the industry analysis and strategy analysis tools and results, the firm has decided to differentiate products from other substitutes in the market. Product differentiation is a key product strategy to enhance the visibility of customer attraction and positioning. Moreover, the most important thing for the company is to increase the product line. The wide range of products and availability in the main place California can help to enhance the image and recognition. Along with product standardization and product quality, it seems imperative to make all these products available or assessable to people of all races. Making products usable and available for all customer segments is also an effective product strategy that can contribute to sales and revenues. Personalization can also be considered as a key product strategy that can contribute to getting an edge over other rival. No doubt, personalization is tough and may take time. However, in this contemporary or competitive cosmetic business era, it seems relevant. After gaining the success of the product, the plan is to increase product development to streamline innovative ideas that this firm has shaped to improve the skincare of customers.
· Price
The firm aims to use a penetration pricing strategy in this competitive market. It is a new business or company in California. Customers of other companies want the quality and originality of these products. Usually, they pay high prices for these products. However, the new business has decided to adopt penetration pricing to come up with low prices of products for customers. Customers will find high-quality skin care products at low prices as compared to other companies. The rationale behind this pricing strategy is to increase attraction and make customers assertiveness in the buying process. The firm wants to keep profit margins low in the first three years. The purpose is to create the perception in the market or community that high-quality products are available at cheaper rates. The firm can increase the customer base and make them loyal. More customers will try these products due to low prices. For a while, the penetration pricing will work for the company regarding high sales as well. However, the plan is to increase prices to increase profit margins and revenue streams. Thus, it is a good marketing trait to convince customers. It is a good strategy in California to convert customers. As mentioned, low-income or moderate-income people are the main targets of the company. Thus, this pricing strategy is to be justified (50Minutes.Com, 2015).
· Place
This business decides to contain direct sales. In the main place of California, the firm sells products directly to customers. Interestingly, the company plans to expand the business by integrating with top cosmetics retail stores. These can be used as key distribution channels for this company. Single distribution is to be used by the company because cosmetic stores are limited in this region. In main place California will be the official store to interact directly with customers. The main place is situated in the urban area of the region, and the placement strategy is workable. In the official store, the firm will hire and train makeup artists or experts to assist or guide people when choosing products according to needs. These makeup artists will describe benefits, differences, and quality standards to customers to make this channel more lucrative. Thus, it is the main place for the company, which provides an opportunity to enhance interaction.
· Promotion
To promote products in the competitive market, the company will use both traditional and digital media channels. On traditional media channels such as fashion magazines, TV and billboards, the firm can visualize its products effectively. The big advantage that the company can gain on these media channels is the use of celebrity endorsement. Integrating with celebrities is a good approach to streamline benefits for the general public. On the other hand, the main marketing campaign will be run on different social media channels. It is a cheaper way to promote products. Integrated marketing communication will be accelerated by the company of digital media channels. For Instance, Dead Sea products will be stimulated and visualized attractively and effectively to target an immense range of customers. As mentioned in the weakness section in SWOT analysis, social media integration is a major weakness. Now, it will be a good move to interact with customers and make some improvements, which are based on customer feedback. Also, word of mouth can also be a big promotional tool for the company. Another promotional strategy that can be executed by the company is direct males. Direct mail to loyal customers is also a good move to make them informative and make an early buying decision. The modern promotional tool for the company is the content marketing. On different websites, the firm can publish a brief content that illustrates problems that people a face regarding their skin and health. Accordingly, the content will also include some solutions inform of names and benefits of some Dead Sea products. The purpose of this promotional tool is to reach maximum customers and let them now brand and product.
All these promotional strategies, including traditional and social media advertising, will help to streamline products and depict some differences. Several tough points such as the store, social media, direct males, and beauty care exhibitions are also to be used by this new business to increase favorable customer preferences. In California, the firm can have easy access to all these promotional channels.
· Marketing and Promotional Budget
The company holds a reasonable marketing and promotional budget. The marketing budget is $20,000. Further, it can be divided for both traditional and social media campaigns. In the competitive market, based on the promotional strategies of other rivals, the budget of marketing and promotion can be changed with time to streamline products. In promotional activities, 40% budget will be used on traditional media channels and advertisements. 60% budget is to be used for digital marketing or promotional activities. Online promotions include maintaining the web presence, online public relation & marketing support, and advertisements
Conclusion
In the end, it is to conclude that new business can gain success in this competitive market by some key strategic considerations. Every business needs to come up with a comprehensive plan to hold a strong position in the new market. In this comprehensive business plan, a wide market, industry, and competitive analysis are conducted to get insights and initiative the planning process. Consumer-oriented marketing strategies are made for the management to enhance the positioning and build the brand. The market is competitive but only competitive strategies can help the company to survive and sustain the business for the long run.
It is a complete plan for Dead Sea product business in California. Successful implementation of this business plan can also open new ways to expand the business in other regions of the United States.
References
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Appendix
Work Schedule
| Employees
|
Working hour |
Shift
|
| Store Manager | 8 hours (8:00 am to 4:00 pm) | Morning Shift |
| Assistant Store Manager | 8 hours (4:00 am to 12:00 pm) | Evening Shift |
| Inventory Specialist | 8 hours (8:00 am to 4:00 pm) | Morning Shift |
| Visual Merchandiser | 8 hours (8:00 am to 4:00 pm) | Morning Shift |
|
Sales Representative 1
|
8 hours (8:00 am to 4:00 pm) |
Morning Shift |
|
Sales Representative 2
|
8 hours (8:00 am to 4:00 pm) |
Morning Shift
|
| Sales Representative 3
|
8 hours (4:00 pm to 12:00 am) |
Evening Shift |
| Sales Representative 4
|
8 hours (4:00 pm to 12:00 am) | Evening Shift |
| Cashier 1 | 8 hours (8:00 am to 4:00 pm) |
Morning Shift |
| Cashier 1 | 8 hours (4:00 pm to 12:00 am) | Evening Shift
|
