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Capstone Applied Project in Marketing 24100
Project 2A and 2B
Daily Naturals
Bachelor of International Marketing
University of Technology Sydney
15.06.2018
Marius R. Ekeland
This paper is done as a part of the undergraduate program at BI Norwegian Business
School. This does not entail that BI Norwegian Business School has cleared the
methods applied, the results presented, or the conclusions drawn.
2
PROJECT REPORT 2A
3
TABLE OF CONTENT
Internal Analysis ........................................................................................................................ 4
The Company/ Product Line overview ................................................................................... 4
Strengths and Weaknesses ..................................................................................................... 5
Strengths ............................................................................................................................. 5
Weaknesses ......................................................................................................................... 6
Business Model Canvas ........................................................................................................... 6
External Analysis ........................................................................................................................ 9
Market Analysis, Opportunities and threats .......................................................................... 9
External Market Analysis ...................................................................................................... 13
External competitive analysis ............................................................................................ 13
Customer Analysis ................................................................................................................. 17
Behavioural Analysis (Customer Buying Criteria) .............................................................. 17
Behavioural Analysis (Purchase Process and Patterns) .................................................... 18
Customer Demographics ................................................................................................... 18
Macro environmental Analysis ............................................................................................. 19
PESTEL ............................................................................................................................... 19
Weighted SWOT Matrix..................................................................................................... 21
Three key issues ................................................................................................................ 22
Apendix 1 .............................................................................................................................. 28
4
Internal Analysis
The Company/ Product Line overview
The formulation chemist, John Sloan, established Dresslier & Co in 1930. Sloan´s
manufacturing of hair care products such as hair oils, shampoos, talcum powders and
aftershaves started in Adelaide. Dresslier has previously served as a key distributor for several
international brands, some of them being Joiken, Wella, Redken and American Crew.
Dresslier developed a new and innovative product range in the 1980s. A plant-based product
range with the name Davroe. After John and Mary Centofanti acquired the company in 2006,
Dresslier went from being a salon supplier to manufacturing their own brand and contract
packs. They also made the decision of removing petrochemicals, such as parabens and
sulphates from their products.
It became apparent that there was a demand for Davroe in the pharmaceutical market.
However, Dresslier was concerned that introducing Davroe to this market would cheapen the
brand. The solution Dresslier developed was to start a new product line - Daily Naturals (DN).
Dresslier introduced DN to the National Pharmacies in South Australia in 2011. The product
range consists of shampoos, conditioners, and various hair treatment products. This product
range is 100%- vegan, cruelty-free (no animal testing) and is Australian owned and made.
5
Strengths and Weaknesses
We have assessed the internal strengths and weaknesses of Dresslier, as a company, and DN
as a brand.
Strengths Dresslier´s owner and director, Mary Centofanti, started her career with the company at 15
years of age as a receptionist. This provides her with an in-depth understanding of the
company's operations and how to operate in the industry. Dresslier has a minor HR advantage,
due to long-term employments such as their lead chemist which has been with the company
for several decades.
Dresslier has experienced success with Davroe, a recognized brand in the salon market. This
provides Dresslier with experience and knowledge in the industry at hand. This can be
leveraged to the DN branch as well.
Dresslier and all their products are both Australian owned and made. This represents a
domestic strength as shown by a survey conducted by the “Australian made association”,
stating that more than two-thirds of Australians would give preference to buying locally made
and grown goods (haircare, 2018). However, this might have some limitations and will be
examined in detail.
DN has a unique combination of natural ingredients in their product, that provides great
performance without any chemicals. DN provides high-quality products that are animal
cruelty-free and only tested on humans.
Dresslier specializes in hair-care products, whilst many of their competitors have a more
diverse product line. They are specialists in their industry and hasn’t diluted their brand to a
wide product portfolio.
6
Weaknesses
The fact that Dresslier has no website or online presence for DN is a weakness as this
prevents potential customers to gain knowledge about the brand and its products. This also
makes it harder for DN to gain brand recognition in a market where this is of value.
Dresslier´s factory is not geographically located to promote sales in Sydney. The long-
distance decreases the efficiency and lead-time from order to delivery and increases the cost
of distribution. In comparison, their main competitor (Sukin) has their facilities located in
Melbourne, which gives them an advantage in this area of distribution.
Dresslier has done no marketing for DN, which also means they have no market information
to base this report on. They also have no marketing department, and no staff fully allocated to
deal with marketing for their products. Their moderate allocation of funds to this marketing
campaign limits their potential marketing efforts, and therefore its effect ($500,000 AUD).
As Dresslier specializes in hair-care products, whilst many of their competitors diverse into a
broader product range, consumers will be less exposed to DN compared to other brands.
Business Model Canvas
DN currently has an indirect business model, where they rely on pharmacies and a website to
distribute their products. Therefore, their business model contains little consumer
relationships, but they retain a relationship with their b2b customer - National Pharmacies and
Flora & Fauna. You will find the model in the appendixes 1.
Customer segments
The customer segment is in the pharmacy market. This is where men and women of any age
can acquire a higher quality hair-care product than what the regular supermarkets offer. DN
want to target this market and be perceived as a high-quality brand.
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Value proposition
DN tries to deliver an all-natural, cruelty-free and hair care solution to the pharmacy
market. With no harmful ingredients included, they have managed to create a quality product
from natural ingredients which supports Australian workers due to that its Australian made.
With the cruelty free and all-natural products, they bring a certain “status” for the people who
buy their product. The most important aspect of their value proposition is quality. With their
internal intellectual resources, they have developed quality over many years of production.
Channels
DN is sold through Flora and Fauna’s website and through National Pharmacies. There are no
noticeable online presence or marketing efforts towards creating brand awareness. This
creates a disconnected relationship between the consumer and DN.
Customer Relationships
Their customer relationships are retained with their distributors, but their consumer
relationships are retained through their distributors which can lead to diverse communication
to the end consumer and the intended message of the product might be misunderstood.
Revenue streams
DN uses asset sales as their revenue stream through fixed “menu” pricing – selling their rights
to the product so the consumer can do as he/she pleases with the product for a fixed price.
Key Resources
Physical resources
DN physical resources consist of manufacturing facilities. The products are produced and assembled
in Australia which is one of DN selling points – Australian made and owned. The fact that DN uses
Australian made and owned as a selling point promotes the importance of the facility as a key
resource.
8
Intellectual Resources
Intellectual resources are an intangible value for a business. Dresslier has been a company
since the 1930s and through many years of producing and distributing hair care products,
Dresslier has achieved ingredient and production knowledge to attain and sustain quality
products.
Human Resources
Mary Centofanti has worked with the company for several years. This provides her with an
in-depth understanding of the company’s operations. Furthermore, the DN chemist is the son
of the chemist who started the company i 1930 and has many years of experience.
Key activities
Production
Seeing as DN is strictly using second-hand retailers, the manufacturing of the products is key
to meet the demands of the consumers. According to the Dresslier owners, “there is no such
thing as a production advantage in this business”.
Key Partners
National Pharmacies
It became apparent that there was a demand for Davroe in the pharmaceutical market.
Dresslier created DN in order to capitalize on this demand without devaluing Davroe. Most of
DN´s revenue stems from sales through National Pharmacies.
Outsourced bottle makers
Currently, DN outsource their manufacturing of the bottles, making them a key partner.
Cost structure
Cost-driven business models
Cost-driven implies that the business tries to minimize cost wherever possible. DN outsource
manufacturing of their bottles and import ingredients from different suppliers and assemble
the product in Australia to achieve a lower price of their end product.
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Fixed costs
DN’s fixed costs consist of salaries of employees and manufacturing facility.
Low variable costs
The company has a low variable cost per bottle made; only an significant increase when
production increases over a certain level that requires investment in workforce/manufacturing
External Analysis
Market Analysis, Opportunities and threats
The market analysis contains information about the total market Dresslier is in, the niche market that
DN product line is targeting, and measures to consider to be successful in the industry.
According to information gathered from IBISWorld, the Cosmetic & Toiletry Retailing industry in
Australia is a 4.1 Billion AUD industry, with an overall profit of 316.7 Million AUD, which leads to
an industry profit margin of 7.72%. It is estimated the industry will grow by 2.0% annually until 2018,
where the growth will slow down to 1.9% from 2018-2023. 2022-2023 revenues are estimated to be at
4.5 Billion AUD, which means there will be more revenues for Dresslier and DN to capture in the
future. (Richardson 2018) The population growth in Australia is expected to grow with a 1,4% annual
increase (Worldbank 2016), which means the industry has a net growth of 0,6%.
Some of the key economic drivers for the market is the female population above 18 years of age,
increase in household discretionary income, and the demand for online shopping. These factors have
been identified as the drivers that affect the industry in the most substantial way, both positively and
negatively. Despite there being a growing market for men within this market, it is still dominated by
women aged 18 and above, as this segment of the population is estimated to reach 9.9 Million in 2017-
2018 (Richardson 2018).
When discretionary income rises, consumers tend to use more money on luxurious products like the
product line DN are offering. Estimates indicate that discretionary income will fall 2017-2018.
(Richardson 2018)
The growing number of online-only cosmetics retailers is one of the biggest external threats to the
industry. More Australian consumers have been taking advantage of the discounted prices, parallel
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imports and the greater range of brands that many online retailers offer. Online cosmetics sales are
expected to continue growing over 2017-18, to the detriment of industry retailers (Richardson 2018).
The increased confidence in online sales has reduced the unit prices due to more efficient business
models and smarter value-chains in general. This is something that has led to increased discounting
from pharmacies and discounts outlets, which has put downward pressure on industry profits in
combination with growing competitive pressure.
However, introduction to premium products and services with higher added value has helped to offset
these trends, allowing industry profits to have an overall growth in the period. This is most relevant for
cruelty-free, sustainable and environmental-friendly products with all-natural ingredients and no
chemicals as these product niches grow faster than the mainstream industry. A study from Canstar
Blue reveals that 34% of choose to purchase chemical free or low shampoo’s. (Professional Beauty
2011)
Cruelty-free products are expected to gain even more ground following the potential ban of cosmetic
& hair-care products tested on live animals. Should the relevant Industrial Chemicals Bill 2017 be
enacted, the ban is due to commence from 1. July 2018. (www.aph.gov.au 2018)
The industry is divided into differently weighted segments. You can argue that DN product
range can be seen as “Bath, shower and skincare products” (27.5%) and “Hair-care products”
(19.0%), leaving them with a potential market of 46.5%. (Richardson 2018) This is
furthermore backed up by numbers from Euromonitor defining the Australian shampoo
market at 430,4 MAUD and the conditioner market at 366,2 MAUD. Which gives DN a
combined market of 796,6 MAUD (Euromonitor 2017).
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Model from Euromonitor Industry analysis 2017.
The industry is labelled as mature, which means the large main players will control a lot of
mainstream areas such as discounted cheap shower-gel. However, it also means that there are
niche markets that are open and growing, such as eco-friendly, all-natural products as
mentioned. Both IBIS world industry report and Euromonitor report agrees that these niches
are in higher growth than the rest of the industry.
Industry demand determinants
The main factors that decide the demand for products in the industry:
• The fashion & beauty industry is often correlated to the cosmetic- & hair-care
industry. The fashion industry has been using Social Media as well as other non-
traditional channels to promote hair-care products.
• There is a growing trend of a holistic approach to beauty, meaning a more natural way
with natural ingredients in the beauty products instead of chemicals which is falling
out of flavour. Consumer trends are pointing towards natural products that repair hair
and gives volume. (Euromonitor 2017)
• Socioeconomic factors, this means that households usually respond to financial
difficulties by buying lower priced products. In other words, people want value for
their money in times of financial uncertainty.
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Most impactful risks moving forward
• The increasing trend in the industry of driving promotional offers with prices as low as
40%-50% on hair-care products. Combined with a stagnating revenue growth in the
market it will increase the competition the next years & squeeze profits.
• Not adapting to new consumer trends and preferences. Such as natural ingredients,
moisturizing and repairing hair-care products.
• Not being consumer-centric. This means knowing who your customer is and knowing
their every need even before they know they need it themselves. This is essential in a
very competitive market in the mature stage.
SuccessFactors to consider
• Ability to control inventory: increase efficiency & throughput for the stock at hand
to reduce inventory costs and increase turnover.
• Having a clear market position: Project a clear and consistent image to attract the
target segment. In the social media age, this is growing in importance.
• Production of goods currently favoured by the market: Ensure an appropriate
product mix and pricing strategy for the target market.
• Experienced workforce: In the prestige segment of the industry, it is important that
the staff is well informed, and educated in the area and able to convey the consumers
to try the product.
• Attractive product presentation: The placement in the store (pharmacy) will be
essential for how good the product does. The packaging will also play a role for this
point. Digital displays will increase over the next five years.
• Competitive advantage: Make sure your customer views your perceived competitive
advantage as an actual advantage over other brands.
• Attract the target market: Find different ways make your customers notice the
products and develop an interest in your brand. Creative & innovative ways of giving
your brand attention are welcome in the market.
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External Market Analysis
External competitive analysis To be able to determine how competitors can impact DN we need to conduct a competitor
analysis by looking into the current market situation. Today, the global hair shampoo market
is relatively competitive with several large established vendors like L’Oréal, Schwarzkopf,
Head & Shoulders and Garnier. In June 2016, 73.9% of Australians purchased shampoo at
least once in an average six months. 14.5% of them purchased Alberto shampoo, right above
the 14.1% who bought Head & Shoulders (Inside FMCG, 2018).
Aside from the key vendors, there are several small, medium, and large size companies that
operate extensively in the global market. Some private brands are also making an entrance
into this market due to its high growth potential. Still, the threat of new entrants is moderately
low due to high competition and large companies. However, studies show that brand loyalty
amongst millennials are very low and that consumers brand loyalty amongst beauty products,
in general is around 50% (Global Cosmetic Industry, 2018). This makes it easier for new
products to get through the entry barriers.
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The threat of substitute products is high because hair products with different features are
constantly being developed. The growing hair-care industry and the various number of
substitutes in the market gives the companies relatively high bargaining power over the
different suppliers.
Customers have high bargaining power because they easily can get information about
different products and their attributes. This challenges the companies to stand out and offer
the best quality to the best price. The switching cost for the consumer is low due to low brand
loyalty and high similarity between products. One thing that could increase switching cost is
to have a product that really distinguishes from others. People who have problems with hair or
scalp conditions and struggle to find the right product will often have a stronger relationship
with their hair care brand and have a higher switching cost.
Due to an increased demand for organic and environmentally friendly products, the sales of
hair care products through specialty stores has witnessed dramatic growth over the last years.
The competition in the haircare industry is high because of continuous change in the market
and the consumers preferences (GmbH, 2018). Due to the growing concern about haircare and
different hair conditions, the development of new products and adopting of new technology
has become important to keep the customer loyalty and survive in the market.
DN largest competitors are brands that are sold in pharmacies or the same online stores. They
also share the same features as; natural, plant-based, vegan and cruelty-free. The two main
competitors are Sukin and Klorane.
Sukin is an Australian made brand with a large range of products for skin and hair. In 2007,
Sukin was launched in Melbourne, after identifying a gap in the market for high efficacy,
environmentally sustainable and affordable natural skincare. Since then Sukin has expanded
and is now sold in10 different countries and has become the largest natural skincare brand in
Australia.
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The company utilises botanicals, antioxidants, and oils to restore natural vitality to hair and
skin. All their products are made with ingredients that are vegan, cruelty-free and naturally
derived. All formulations are also 100% Carbon Neutral, biodegradable and grey water safe
(Sukinorganics.com, 2018).
Sukin is owned by BWX which is a developer, manufacturer, distributor and marketer of
branded skin and hair care products. In the first half of 2017, BWX reported that revenues
from Sukin increased 59.4% (compared to the prior corresponding period), accounting for
almost 83% of total sales and commands a 7.3% market share in the cosmetic skin care
market (Bwxltd.com, 2018).
Sukin is a well-known brand in Australia and they are a big threat for DN due to brand
awareness through their different product lines. DN is also sold at pharmacies for twice the
price as Sukin which make them even more of a threat. On the other hand, Sukin sells large
bottles of one liter and 500ml which appeals to customers that want to buy in bulk. Sukin sells
bottles of 250ml for $8.95, bottles of 500ml for $12.95 or $14.95 and 1L bottles for $20.95 or
$24.95 (Sukinorganics.com, 2018). This could mean that they are focusing on value-
customers and neglecting the premium/luxurious segment, due to cheap prices and large
bottles. This also means that they could target both families, bulk buyers and people that
prefer small bottles.
Sukin has a pure and simple homepage with nice colours and professional pictures of the
different lines combined with flowers, herbs and plants. They have put a lot of effort in their
Instagram profile and have 61.4K followers (as of May 2018) targeting young women that
emphasize a natural lifestyle. Sukin uses several female influencers with a lot of followers,
they sponsored the last season of The Bachelorette Australia and teamed up with Lé Buns and
Holland and Barrett to create awareness and get more customers (Instagram.com, 2018).
(Instagram.com, 2018)
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The advantage for DN is that Sukin does not focus much on hair care, but all over skin care.
This could make it easier for DN to target a smaller niche and penetrate the market from a
different angle by focusing on their hair products.
Klorane is not Australian made but is plant based, vegan and cruelty-free. The company
launched in South West of France by Pierre Fabre in 1965. Driven by his passion for the
health and beauty benefits of plants. Their products are based on one simple concept; one
concern, one plant, one benefit. They have further launched the first dry shampoo on the
market and shampoo based on plant milk.
In 1994 there was founded a botanical institute of Pierre Fabre to protect, explore and educate
on plant species and biodiversity (Laboratoire Klorane, 2018). They have later got rewards for
quality and sustainable development and have supported different environmental projects.
Klorane have a long history on the market but not as long in Australia. They have a broad
product line for hair and face but only sell their hair-care products in Australia.
Klorane sells their 200ml bottles for $13.99 which is in the same price range as DN. They
have a lot of shelf space at the pharmacies and are sold in Priceline and chemists around
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Australia. Klorane is sold at the National Pharmacies website and in the pharmacy together
with DN. We have also noticed them to be placed right above the DN products which give
them a better shelf placement.
Their website is very clean and easy to use with bright colours. They have a map where you
can find their products and they interact with the customer by providing a diagnosis of your
hair by answering a few questions about your lifestyle etc. Klorane also got tutorial videos
with the model Rebecca Judd showing their products (Laboratoire Klorane, 2018).
Their Australian Instagram account have 10.8K followers (as of May 2018) which is not a lot
compared to Sukin which is well known in Australia. Their profile targets young females and
uses Instagram influencers to reach their target group. The profile is clean and focuses on the
product and includes also information about ingredients and application to interact with the
customer (Instagram.com, 2018).
Due to the fact that Klorane is not that big in Australia, DN should use this advantage and try
to take a larger market share before Klorane and similar brands with moderately low brand
awareness get more visible in their target market.
Customer Analysis
Behavioural Analysis (Customer Buying Criteria) The customers vary in purchasing criteria, but some of the most important attributes
appreciated by the consumers are that the products are all-natural and cruelty-free
(Stephenson Personal Care, 2018). The fact that a product is cruelty-free is attractive to the
consumers in the purchasing decision. It gives them a sense of wellbeing seeing as most
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people prefer products that do good and preserve animal rights. (The Business of Fashion,
2018).
Price is always an important factor when consumers consider purchasing natural shampoo.
All-natural products are often priced higher than non-natural products, which also means DN
need to target segments thereafter. It is a trend to purchase all-natural and cruelty-free
products. Natural ingredients have more trust from the end users than what non-natural
ingredients have (Prnewswire.com, 2018). Natural ingredients may not have a better effect
than products with chemicals, however, some customers value these products and are willing
to pay a higher price.
Behavioural Analysis (Purchase Process and Patterns) The information the customers seek is if the product´s perceived effect is something that can
help them satisfy their needs or solve their problem(s). Purchasing patterns will vary on
demographics, brand loyalty, and behavioural criteria. Our customers are ethically persuaded
and favour products that are sustainable. The involvement of hair-care products will vary for
the different customers. Some will have high involvement due to pain-removing (dandruff &
scalp issues), and others will view it as a low involvement product.
Word of mouth (WOM) is a crucial part of being recognized by our consumers. They will
seek information from family and/or friends to find out if the product covers their needs. In an
age with advertising noise everywhere, people tend to hold the opinion of people they know
in the highest regard. (Research, 2018) In a B2B context, there are many parties that need to
agree on the purchase. While in a B2C context, the end user will always have the final say in
the decision and are easier to influence on non-cost factors.
Customer Demographics The customer demographic of the target market is women from 20-35 years. It is becoming
more and more popular to purchase all-natural products, contributing to the wellness of the
world and its animals. Females are more interested in these products and are, therefore, our
target segment as a survey conducted in Australia say: “73 to be exact—of millennial women
seek out cleaner, all-natural products” (Kinonen, 2018).
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Our segment does not just pick any alternative off the shelves without some consideration.
The users will know the impact of their purchase and which effect it will have on them and
the environment. It is necessary to acknowledge that customers are much more aware of what
ingredients they expose themselves to and the perception of all-natural products is that it has a
positive and natural effect on your hair, skin and overall wellbeing. (Stephenson Personal
Care, 2018)
Macro environmental Analysis
PESTEL Political
• China’s legislation towards new products (must currently be tested for 6 months on
animals). This could be a problem on some online stores or if DN expands
• Legislation toward animal cruelty and eco-friendly products.
• Industrial Chemicals Bill 2017 be enacted, the ban is due to commence from 1. July
2018.
Environmental
• Sourcing of materials might be disrupted due to natural events.
• Bottle makers shipments get delayed due to natural events
• Increase in gasoline prices might increase transport costs for DN (From Adelaide to
Sydney)
• Their European and American suppliers move away from “All-natural ingredients”
• Loreal or another big player buys up one of DN’s main competitors and provide them
with unlimited funding until Dresslier runs out of money
• Pharmacies dilute the DN brand equity by using discounts as a tool to sell more
product from their shelves
Social-cultural
• Vanity, growing trend of all natural and green consumers via social media.
• Increased awareness of animal cruelty and more people are turning to all-natural
products.
P
E
S
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• People are moving towards online shopping
• Environmental-purchasing, people do research before shopping.
• Growing awareness for environmental issues, which increases the demand for eco-
friendly and sustainable products.
• Increased information in society about firms and how they practice CSR
• Growing trend on social media towards influencers, their lifestyle and what products
they use
• Growing interest in tutorial videos on styling and beauty products
• The population is getting older
• A trend towards people colouring their hair
• An increased trend towards buying products in pharmacies an specialty stores
Technological
• An increasing importance of competing on online platforms, both for sales and
marketing/branding
• New ways of making the product in a more efficient and eco-friendly way.
• New ways of distributing the product e.g. more efficient packaging, more spacious
trailers.
• New ways of making the value-chain more efficient (LEAN). Lower labour costs with
more automation at the factory. Inventory management to reduce waste and excess.
• New main channels to reach the customer (online, social media)
Economic
• Disposable income is a big determinant of how much consumers use on products that
are all natural and of a higher quality than the cheaper discount products.
• Good economic times provide a more lucrative market for DN.
• Interest rates and currency fluctuations might affect sales in the industry, especially if
they move the product abroad like Davroe.
• Asset appreciation which leads to higher consumer spending.
Legal
T
E
L
21
• Strawberry.net thought about buying DN, but due to regulations in China, it is
required that hair-product is tested on animals for 6 months this was not done. DN
could also face restrictions like that when expanding their market.
• Tariffs might increase transaction costs of shipping the product to other countries, e.g.
the US.
• Legislation toward the hair-care industry will have a direct impact on DN.
• Labelling law (Chinese labels/packaging)
Weighted SWOT Matrix
Weighted SWOT Matrix Opportunities
- Establish online presence
(Influencers)
- Focus on a concentrated segment
- Make additional revenue from
the Asian market
- Take advantage of holistic beauty
trends
- Co-branding with a company that
has a similar segment
- Improve bottle design
- Subscription-based online shop
- Recommendation-based guide
Threats
- Not keeping up with trends
- Economic recession
- Not having a CLEAR market
position
- Getting outcompeted by the
harsh competition
- Low brand loyalty in the market
- Not getting the desired results
from the marketing campaign
Strengths
- Minor HR advantage
- Experienced success in the
industry before DN
- Australian made & owned
- Unique product: Salon
performance,
• Unique product focused
on a concentrated
segment
• Experienced staff from DN
to help establish online an
presence
• Combine their unique
product and experience
• Not keeping up with
trends can be countered
by the HR advantage
• Providing a unique
product of higher quality
will keep the competition
at bay.
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Environmentally friendly and
animal cruelty-free
- Chemical free
- Hair-care specialists
with social media to reach
a niche market
• Co-branding combined
with their experience in
the industry to attract
higher
• Having an experienced
workforce in times of
economic recession
Weaknesses
- No online presence
- No sustained competitive
advantage
- Low campaign budget
- No marketing information
due to the fact that they
have done no marketing
research
- No marketing department
- Low brand awareness
- The geographical position
of factory compared to
competitors
• Establishing an online
presence from scratch
• Focus on a concentrated
segment since we don't
have a sustained
competitive advantage
• With no marketing
information, Daily Naturals
have a chance to create
their own position
• Not having a CLEAR
market position
combined with a low
campaign budget
• No sustained competitive
advantage and not
keeping up with trends
• Hard keeping up with
trends with bad
marketing and zero
information from the
market.
• Low brand awareness
combined with no
marketing department
Three key issues
1. Combine their unique product and experience with social media to reach
a niche market
DN has an advantage of having a unique product and a lot of experience in the
haircare industry. They also focus solely on hair care compared to their
competitors which make them specialists in their field. This is an advantage
that DN should focus on towards the consumers. Combined with the fact that
they have no presence on social media they have a chance to start from scratch
and really try to reach their niche market. To do that DN should focus on their
expertise and the performance of their product combined with interaction with
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the customer through social media. This can be done through tutorial videos,
influencers, competitions and making DN about more than just a brand.
Creating a platform where DN can communicate with their target market is
essential to keep up with the competitors and to create a bond with the
customers in a market with low brand loyalty and high competition. It is
important for DN to create awareness through social media to be a part of the
consumer’s decision-making process. Due to fact that they also have a low
budget on marketing social media is maybe one of the cheapest and easiest
ways to create awareness if it is done right.
2. Low brand awareness combined with no marketing department
In the industry of hair care, shampoo and conditioners the brand awareness is
low. The consumer changes brands based on convenience, price and are on a
constant search for better products that suit them better. Combined with DN
not having a dedicated marketing department there is nothing to influence the
consumer towards buying their product besides from other users, pharmacy
promotion, placement in shelves or the design of the shampoo itself. DN is
placing a lot of trust in their quality of the product for the consumers to share
with word of mouth. When there are products like L’Oréal and other big names
that are heavily invested in marketing, DN is easily overshadowed by not only
big brands but also might look like any other shampoo bottle for a consumer
influenced by marketing campaigns. When the market has a low brand loyalty
of a product in an industry, a consumer is more inclined to buy a product they
have heard of from a commercial than one that they have not. Low brand
awareness is a threat for DN. Combined with the low marketing efforts, DN
will not be able to fill the potential profit margin if consumers don’t know
about their brand.
3. Co-branding combined with their experience in the industry to attract
higher
Dresslier can leverage their long experience in the industry by using their
network to gain access to higher performing brands than they would have had
the chance to if they were a new company on the market. Dresslier has a long
history in Australia and this is something other companies will consider when
24
deciding to do co-branding. The reason co-branding is an effective strategy is
that it allows us to access the core segment of the brand we do the cooperation
with. The company needs to have the same or very similar customer segment
that is drawn to the same values, attributes and branding strategies as our
segment has. If done correctly, co-branding will open and expose us to a
concentrated group of people that will increase our niche customer group
favourably and increase sales to achieve our marketing goals.
25
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industry-analysis-size-share-growth-trends-and-forecast-2016-2024-1001839738
[Accessed 14 May 2018].
26
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Global Cosmetic Industry. (2018). Brand Loyalty in the Beauty Industry. [online] Available
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f [Accessed 14 May 2018].
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[Accessed 14 May 2018].
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https://www.klorane.com/au-en [Accessed 14 May 2018].
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[online] Available at: https://www.instagram.com/kloraneau/ [Accessed 14 May 2018].
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2024. [online] Available at: https://www.inkwoodresearch.com/reports/hair-care-market/
[Accessed 14 May 2018].
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Growth, Trends, Forecast 2024. [online] Available at:
https://www.transparencymarketresearch.com/hair-care-market.html [Accessed 14 May
2018].
28
Marketing-schools.org. (2018). Marketing Shampoo | Understanding consumer psychology
and marketing Shampoo .... [online] Available at: http://www.marketing-
schools.org/consumer-psychology/marketing-shampoo.html [Accessed 14 May 2018].
Bloomberg.com. (2018). Here’s How China Is Moving Away From Animal Testing. [online]
Available at: https://www.bloomberg.com/news/articles/2018-01-16/ending-china-animal-
tests-is-salve-for-big-beauty-quicktake-q-a [Accessed 14 May 2018].
Appendix 1
Key partners
National
Pharmacies
Outsourced bottle
makers
Key activities
Production
Value
propositions
Quality product
Improved quality
of life
Animal friendly
Supporting
Australian
workers
Status
Customer
relationships
B2B Direct
B2C Indirect
Customer
segments
Pharmacy
market
Key
Resources
Physical
Human
Intellectual
Channels
Partnered online
store
National
Pharmacies
Cost Structure
Cost-driven business model
Fixed costs
Low variable
costs
Revenue streams
Asset sales
Fixed “menu” pricing
29
PROJECT REPORT 2B
30
TABLE OF CONTENT
1.0 Executive summary 31
2.0 Issues resulting from the situation analysis 31
2.3 Creative communication efforts combined with their experience in the industry to attract higher
perceived value brands 32
3.0 Marketing objectives 32
3.1 Promotion strategy 33
3.2 Distribution strategy 33
3.3 Differentiation 34
4.0 Target market and positioning 34
4.1 Positioning 36
5.0 Key Strategies 37
5.1 Promotional Strategies 37
5.1.1 Pull Strategy 37
5.1.2 Product launch campaign and free samples 37
5.1.3 Lifestyle branding as part of Daily Naturals value proposition 37
5.1.4 Cause marketing 38
5.2 Distribution strategies 38
5.2.1 Online distribution 38
5.2.2 subscription-based purchase 38
5.2.3 Increase sales points 39
5.3 Differentiation strategies 39
5.3.1 Differentiation focus strategy 39
5.3.2 Marketing strategy 39
6.0 Key recommendations 40
7.0 References 41
8.0 Appendices 42
31
1.0 Executive summary
By conducting an external and internal analysis based on primary and secondary research
gathered, the three most impactful issues & opportunities for Daily Naturals was:
Daily Naturals are in a rare position where they can leverage the expertise of their mother
company Dresslier to better combine their unique product in a promotional package. The
experience & strong brand name of Dresslier also allows DN to aim for higher quality
partners in their supply chain to maintain the qualitative perception of the brand while getting
access to the ‘conscious millennial women’ segment.
Three key objectives to deal with the issues has been established:
1. Promotional objectives: Increase brand awareness of 25% in the target
segment. Increase sales of 50% within a year – monthly sales growth of 4,16%.
2. Distribution objectives: Expand to 10 additional stores in NSW. Receive 10%
of revenue from the online distribution channel.
3. Differentiation objectives: Become the top 3 brand in the all-natural hair-care
niche within 1 year. Achieve a total Social Media following of 10.000+ within 1 year.
To achieve desired sales growth, brand awareness and social media following there will be
implemented strategies for promotion, distribution and differentiation. The strategic measures
outlined in the report should be implemented in a time prioritized matter to achieve maximum
effect. The strategies that are used is justified by thorough research and implementation of
strategic and marketing models & theories.
2.0 Issues resulting from the situation analysis
Combine their unique product and experience with promotional efforts
to focus on a niche market
Low brand awareness combined with no
assigned marketing department/responsible
Creative communication efforts combined with their experience in the
industry to attract higher perceived value brands
32
2.1 Combine their unique product and experience with promotional efforts to
focus on a niche market
Use DN’s strength of having an experienced staff within the hair-care industry leveraged
towards promotional efforts on social media and other channels to promote DN in the best
possible way.
2.2 Low brand awareness combined with no assigned marketing
department/responsible
DN has low brand awareness in the market. The shampoo & conditioner market has low
customer loyalty, and customers are easily swayed to try new products if it offers the right
value proposition to them. DN has no assigned marketing responsible from Dressliers
marketing team, this is neglecting a big opportunity that could increase sales substantially.
2.3 Creative communication efforts combined with their experience in the
industry to attract higher perceived value brands
Use Dressliers strong position as an established player in the hair-care industry to attract
partnerships with higher perceived value brands to access their quality-focused segment of
millennials. Co-branding, better distribution networks, and goodwill with suppliers are some
of the opportunities.
3.0 Marketing objectives
Marketing objectives are defined as goals a business sets when they want to promote their
product to potential customers that will be achieved within a set timeframe. (Business
dictionary 2017) These following objectives follow the SMART framework and are made to
solve and take advantage of our three key issues. Incorporation in detail is set in the action
plan in the appendix (figure 13)
33
3.1 Promotion strategy
Specific: Create IMC plan to promote Daily Naturals as a hair-care brand
Issue: Low brand awareness combined with no assigned marketing department/responsible
Objective: Increase brand awareness by 25% in the target segment. Increase sales of 50%
within a year – monthly sales growth of 4,16%.
Measure: Social media-following, SEO & Quarterly sales report
When: Create IMC plan by 01.10.18. Reach the goal within 01.10.19.
Strategy: 1. Pull strategy 2. Product launch strategy 3. Cause marketing
The objective of promotional efforts is made to increase the awareness of DN’s product in the
market, increase customer knowledge, and most importantly, increase sales. This objective is
linked to the low brand and product awareness of DN in the market. This objective is essential
as it will help differentiate DN from the competition, averting Sukin and Klorane to take
additional market share.
The expected growth for natural products is expected to grow at a much more rapid rate than
the main-stream hair-care market. (Richardson 2018) DN should position themselves through
promotional efforts to capitalize on this trend as it is more profitable, less competitive and
long-term sustainable. DN is still in its early life-cycle stage and have good potential to grow
with the millennials as their main segment.
3.2 Distribution strategy
Specific: Expand points of penetration in the market to more sales point, as well as online
channels
Issue: Low brand awareness and low market penetration
Objective: Expand to 10 additional stores in NSW. Receive 10% of revenue from the online
distribution channel.
Measure: Quarterly & annual reports for sales
When: Within 01.10.19
Strategy: 1. Expand market penetration width 2. Expand channels to online
By expanding and improving the current business model of DN, they will be more exposed
and have a wider penetration of the market. This objective addresses the issue of low brand
awareness and the fact that they can leverage their existing experience & recognition to
34
achieve good product placement in spa’s, massage places and other pharmacies. Although
distributors will sell their product, it is important that DN keeps strong partnerships and an
open information flow with the distributors to continuously improve the product, promotion,
process, and placement.
DN should create an online channel to sell their product to make it more convenient and
friction-free for consumers to purchase the product, this is especially important because many
of the promotional measures will be conducted online.
3.3 Differentiation
Specific: Focus on a niche market with high profitability, and differentiate through marketing
& branding
Issue: Competitors have a dominant position in the niche areas of the market. Ineffective
communication efforts.
Objective: Become the top 3 brand in the all-natural hair-care niche within 1 year. Achieve a
total Social Media following of 10.000+ within 1 year.
Measure: Annual sales report vs. industry
When: Within 01.10.19
Strategy: 1. Differentiation focus strategy 2. Marketing strategy
The differentiation strategy is necessary for major success in the market. Our research has
uncovered what our segment looks for in brands, and to capitalize on this will set DN in a
higher perceived value than their competitors. If done right, brand image is a sustainable
competitive advantage.
The objective addresses low brand awareness, their high industry experience, and their unique
product to create a package that will increase sales sustainably over the long-term. The
strategies utilized will be in combination with promotional efforts such as cause marketing
and co-branding to differentiate effectively.
4.0 Target market and positioning
Based on respondent’s answers in the analysis shown in figure 1 & secondary research
(Richardson 2018), we have decided that women in NSW are the best match for our product.
35
Women have a clear preference towards DN’s bottles in comparison to men, which prefer
Klorane. This was also confirmed by an interviewee: “I like the simple packaging with little
information.” And the 24-year-old women also told us: “It looks intelligent and classy… that
doesn’t have heaps of writing on it in order to sell”. This reinforces the idea.
The target market prefers all-natural, cruelty-free products, but they also want the same
performance as the saloon. Figure 4 shows that 24,1% of the sample would pay more for all-
natural products, and 14,8% would pay more for cruelty-free products. This means that DN
can justify a higher price, and it can be used in marketing efforts. Figure 2 shows that the
current awareness of our sample is only around 31% regarding all-natural and cruelty-free
products, which means that most people in the sample don’t have much knowledge in the
field. This was also confirmed in an in-depth interview, where one girl admitted: “I would
purchase their product if I knew it was cruelty-free now.” This is also something DN can use
in their marketing, teaching & informing. Figure 5 shows us a significant correlation between
people that claim to be all-natural hair product users and the fact that they would pay more for
the product.
Our segment is also very influenced by Instagram (IG), and other platforms online. This will
make our marketing more effective as we can reach a wide number of people with less costs
than traditional marketing efforts would allow. This is confirmed by figure 8 which tells there
is a significant coefficiency between people that are influenced by IG and people that would
pay more for all-natural products. And figure 10 that tells us there is also a significant
relationship between people influenced by IG and how much people spend on hair-care
products.
Daily Naturals should target the conscious women millennial segment. Of the current
Australian workforce, 37.0% is millennials between 16-35 years. (Figure 14) This segment is
in constant growth and they have a substantial purchasing power that only will grow as they
get older and into more executive, senior positions in their work-life-cycle. (Ruthven P. 2017)
A BCG report concluded that millennials trust has shifted from looking to experts with a
professional or academic background to recommend the products, to potentially anyone with
firsthand experience, which ideally should be a peer or a friend. (Barton C. 2012) We can
further justify this claim up by our primary research, as our in-depth interviewees were clear
about how easily influenced they were from friends and coworkers.
36
Another reason to target this segment is the fact that they have larger social networks than
other generations. 79% of millennials use social media platforms regularly and have more
connections on the platforms than non-millennials. (Barton C. 2012) Millennials want to
make the world a better place, in general. A study found that millennials would be less
inclined to make a one-off charitable donation, and rather integrate their causes into daily life
by being an ‘ethical buyer’ or ‘conscious purchaser’. (Barton C. 2012) This means buying
products that are aligned with their values of sustainability, like ‘fair trade’, or other products
that have a cause behind them.
Figure 15 is a summary of the ‘Conscious Millennials women’ segment’s characteristics.
4.1 Positioning
Sukin as the main competitor is positioned as an all-natural hair-care brand with a medium
price range. The main weakness of Sukin is the fact that they are skin-specialists. Daily
Naturals should position themselves as a hair-specialist, providing a premium, high-quality
product with a cause (Being all-natural & cruelty-free). By claiming to be a specialist you can
defend the high pricing, and consumers will have a higher perceived quality in relations to the
product. As uncovered in our survey, our main segment wants all-natural products, and are
willing to pay more for them. This is more important than being Australian made & owned
and should be communicated in a higher regard. The primary research done for this report has
revealed a potential attractive niche in the hair-care market that Daily Naturals should exploit
by investing into an IMC campaign.
A report conducted by Euromonitor claims “The health and wellness trend will also support
the growth of natural hair care brands … brands with a strong natural positioning are expected
to perform well” (Euromonitor 2018) This means that current trends are supporting the
positioning recommendation which can furthermore be justified by claims from IBISWorld
(Richardson 2018). If Daily Naturals can position themselves as a ‘strong natural’ brand they
will take advantage of sociocultural trends in the market. They will also operate in a niche
market that has a much higher growth than the traditional mainstream hair-care market.
The perceptual map in the appendix (figure 12) is the all-natural pharmacy hair-care products
in Australia, where we have included the most relevant to this case. We can currently see
where in the map there is a room that represents an opportunity for Daily Naturals.
37
5.0 Key Strategies
5.1 Promotional Strategies
A promotion strategy will provide extra value or incentive to the sales force, distributors, or
the ultimate consumer and can stimulate immediate sales (Belch & Belch 2015).
5.1.1 Pull Strategy
Develop pull strategy for Daily Naturals where consumer ‘come to you’. This means both to
actively come to the Pharmacies where the product is sold, and to pursue it online. A pull
strategy will require investments in advertising on different platforms to create word of
mouth.
5.1.2 Product launch campaign and free samples
As millennials often are characteristically affected by all-natural products and often
categorized as brand-switchers DN should capitalize on this by investing in a launch
campaign to ‘introduce’ the product to the market. They have never done any marketing
before, and this can be an opportunity for DN to position themselves in the most profitable
section of the pharmacy hair-care-market. As admitted by the management, they have used
free samples as a tool to increase sales with high success-rates, this is something that should
be implemented in the launch campaign.
5.1.3 Lifestyle branding as part of Daily Naturals value proposition
Using elements from lifestyle branding to get an association towards healthy natural living as
perceived from the consumer-segment will build a deeper connection with the customers. This
is because their values are aligned with the brand. Consumers that say they would pay more
for all-natural products also say they are influenced by marketing efforts via social media
channels like Instagram. This is a good way to start building the consumer perception by
using tools like content marketing, demonstrative videos and visual content that supports an
all-natural lifestyle.
38
5.1.4 Cause marketing
A study conducted by BCG (Barton C. 2012) found that millennials are less likely to donate
money to an organization but are much more likely to purchase from companies that have
cause-marketing. “Cause-marketing refer to aligning a brand with a cause to produce
profitable and societal benefits for both parties.” (Marketing schools 2016) For Daily Naturals
this should be a charity for natural products/against unstainable work-condition or cruelty free
products.
5.2 Distribution strategies
Is a plan to specify how the firm intends to transfer its products to retailers and end consumer.
(Business Dictionary 2017) DN should focus on distributing the product to the areas where
sales are highest, make sure these stores never run out of product, as well as making sure
online orders are delivered at a valid pace.
5.2.1 Online distribution
DN has been selling their product through Pharmacies and have at one point claimed to be a
B-2-B business, which is not entirely true as their product is sold to and used by B-2-C-
consumers. They have been relying on the promotional efforts of these pharmacies and their
only worry has been to send product on request to these stores. DN can use and improve the
current online distribution network used by Davroe, this would require low levels of
investments while increasing market penetration.
5.2.2 subscription-based purchase
“Subscription business models are based on the idea of selling a product or service to receive
monthly or yearly recurring subscription revenue.” (Tarver, E 2017) Daily Naturals should
establish the possibility for online customers to make a subscription-based purchase, where
they can choose 1. What product they want (Shampoo and/or conditioner), and 2. How often
they want this sent to their house (Frequency). This will create a friction-free sales process
that can be managed by the right IT systems and website.
39
5.2.3 Increase sales points
Daily Naturals should look to sell their product in other stores than only Pharmacies. By
investing and making their product available in Spa’s, massage-places, and other wellness-
oriented facilities they will expand their market penetration and gain the attention of the
customer segment they want to focus on. This will also help minimize risk as they spread their
sales to more channels, providing diversification for DN. Spa’s and massage places are often
used by the target segment, and it is good to associate the DN brand with a place of relaxation
& wellness.
5.3 Differentiation strategies
5.3.1 Differentiation focus strategy
Porter’s generic strategies divide a company’s strategic focus into 4 different strategies to
differentiate themselves by. A combination between focus and differentiation is most fitting
for DN. “A focused differentiation strategy requires offering unique features that fulfill the
demands of a narrow market “as defined by Porter (Porter 1980). Our research has found it
most profitable to focus on one niche in the market. The owners of DN has also claimed that
there is no such thing as a cost-advantage in the industry, although their prices are much
higher than low-cost producers like L’oreal and Garnier. We can assume that he is referring to
the niche market they are operating in. This means that they must go for a focused
differentiation strategy. This can be done through focusing on brand image and marketing as
the product itself is hard to differentiate.
5.3.2 Marketing strategy
Using marketing strategies and planning as a tool to differentiate the product from the
competitors will be necessary. This entails implementing strategic marketing efforts in a
timely fashion over the next year to maximize the brand awareness gained, and the units sold
by DN. Cause marketing and lifestyle-branding will be some of the tools used to create a
perceptual image of DN as a high quality, all-natural product with a high performance. This
will differentiate them from their competitors, synergize with market trends and lead to higher
profitability and sales in the long-term as well as in the campaign period.
40
6.0 Key recommendations
Based on primary and secondary data Daily naturals should implement the three key strategies
to accomplish their marketing objectives. Daily Naturals should implement key activities in a
prioritized matter to achieve the greatest effect, this is outlined in detail in the action-plan in
the appendix. (Figure 13)
1. Promotional efforts through IMC campaign
2. Expand & improve distribution model
3. Differentiation through marketing & branding
The priority of Daily Naturals should be to create a promotional IMC plan to pull consumers
to them, the industry has very low loyalty as uncovered in 2a, and therefore we suggest that
DN focus on selling more product by increasing their distribution network to more stores.
This should be accomplished by differentiating themselves through clever marketing efforts.
The main objective of the promotional campaign should be to increase brand awareness &
sales from target segment while creating a brand image that aligns company values with its
target market.
Promotional efforts are usually risky and are often hard to measure correctly. Although this is
only partly true, as social media and online advertising have made it more accurate to
measure. Based on our primary research we can provide Daily Naturals with primary data to
better base their main promotional efforts on. We have uncovered that our segment is
influenced by Instagram influencers & free samples, as well as they, prefer all-natural
products and think the packaging if DN is ‘elegant and smart.’
Social media should be a substantial part of the campaign, as our research (Figure 8 & 10) and
secondary sources have shown that the millennial segment is highly affected by social media
commercials & influencers. Inbound marketing uses many forms of the pull-strategy; content
marketing, blogs, social media and search engine optimization (SEO) to share interesting
content, engaging the consumer and keeping them informed. Daily naturals should focus on
features like it being all-natural and high performing as these are highly valued by the end-
users. They should use different Instagram influencers & establish social media channels to
better communicate their marketing as outlined in the action plan.
41
Recommendation two involves widening the indirect and direct sales model of Daily Naturals.
From only being exposed in Pharmacies to widening it to Spa’s, massage-places and other
well-being facilities that don’t intervein with Davroe. They should also implement an online
platform where consumers can buy directly from DN. The main reasons for this are because
it’s much easier for the consumers to order based on promotional efforts on social media,
blogs, and SEO than getting them to go to the store. The second reason is that there is a clear
trend of purchasing online and receiving it at home – friction free.
Finally, we recommend a differentiation strategy as a part of DN’s value proposition to the
customer. DN should differentiate themselves through cause marketing, supporting a selected
charity to align their values and synergize with millennials trends as mentioned earlier. They
should also focus on lifestyle branding in their social media focusing on clean, healthy, ‘all
natural’ lifestyles in their visual efforts on IG. They should use influencers on IG to promote
their product through paid promotions. They should also look for ambassadors in the social
media universe and use social media competitions and friend referring programs to spread the
brand awareness to their target segment. Social media should also be used as a platform to
collect data and feedback for improving marketing and product for future references.
7.0 References
Literature:
Belch, G.E & Belch, M.A. 2015, Advertising and Promotion: An Integrated Marketing
Communications Perspective, 10th
edn, McGraw-Hill, NY
Websites:
Barton, C. 2012, The millennials consumer, viewed 12 May
2018,<https://www.bcg.com/documents/file103894.pdf>
Business dictionary n.d. Marketing objectives, viewed 12 May 2018,
<http://www.businessdictionary.com/definition/marketing-objectives.html>
Business dictionary n.d. Distribution Strategy, viewed 12 May 2018,
42
<http://www.businessdictionary.com/definition/distribution-strategy.html
Euromonitor International 2017, Hair Care in Australia Country Rapport, viewed 14 May
2018, <http://www.portal.euromonitor.com.ezproxy.lib.uts.edu.au/portal/analysis/tab>
Marketing schools 2012, Cause marketing, viewed 12 May 2018,
< http://www.marketing-schools.org/types-of-marketing/cause-marketing.html >
Mindtools n.d. Porter´s Generic Strategies, viewed 14 May 2018,
<https://www.mindtools.com/pages/article/newSTR_82.htm>
Porter, M. E. 1980. Competitive strategy: Techniques for analyzing
industries and competitors. New York, NY: Free Press.
Richardson 2018, IBISWorld Industry Report G4271b, viewed 14 May 2018,
<http://clients1.ibisworld.com.au.ezproxy.lib.uts.edu.au/reports/au/industry/default.aspx?
entid=1879>
Tarver, E. n.d. How do subscription business models work? Viewed 12 May 2018,
<https://www.investopedia.com/ask/answers/042715/how-do-subscription-business-
models-work.asp>
Ruthven, P. 2017, ´The millennials are where the action is´, IBIS WORLD, viewed 7 May
2018, <https://www.ibisworld.com.au/media/2017/08/21/the-millennials-are-where-
the-action-is/
8.0 Appendices
Figure 1
43
Figure 2
Figure 3
Figure 4
44
Figure 5
45
Figure 6
Figure 7
46
Figure 8
Figure 9
47
Figure 10
Figure 11
48
Figure 12: Perceptual map
49
Figure 13 Action plan
50
When What Why
Start: 01.07.18
Accomplished: 01.10.18
Contact Spa’s, massage places and other pharmacies for potential partnerships
Distribution strategy: To increase sales points and hence increasing market penetration, increase brand awareness & sales revenue
Start: 01.07.18
Accomplished: 01.08.18
Use existing online sales channel from Davroe and implement Daily Naturals.
Distribution strategy: To increase sales channels & make it friction-free for online consumers to order when they see online promotions.
Start 01.07.18
Accomplished: 01.08.18
Establish proper Daily Naturals website, subscription-based purchase model for both Davroe & DN, Instagram-, Facebook- account for DN’s social media promotions.
Distribution & promotional strategy:
To reach millennials where they spend most their time and are easiest influenced as well as making the buying process friction-free for the consumer
Start 01.07.18
Accomplished: 15.07.18
Delegate Social Media responsible for Daily Naturals brand from Davroe marketing staff.
Promotional strategy: To have someone working continuously on the social media promotions, content creation, pictures, how-to-videos, knowledge-based advertising on Daily Naturals online platforms.
Start 15.07.18
Accomplished: 01.10.18
Hire PR-firm to create an IMC plan for the company. Use cause-marketing, life-style branding & co-branding as tools in the plan. Focus on pull-strategy to attract customers.
Promotional strategies: To increase brand awareness, sales and differentiate.
Start 01.10.18
Accomplished: 01.10.19
Launch campaign on the bases of the IMC-plan created. Launch
Promotional & differentiation: To increase the perceived value of
Actionplan
Promotional efforts:
- Create IMC plan
- Product launch campaign
- Life-style branding
- Cause marketing
- Co-branding
Distribution strategy:
- Implement online distribution (direct sales
channel)
- Establish subscription-based model
- Contact alternative sales points to increase points
of penetration
Differentiation strategy:
- Implement a differentiation focus
strategy to the company's process
- Coordinate marketing strategies to differentiate
through marketing & branding
51
campaign with free samples & social media advertising as the main attracters
the DN brand in the eyes of the target segment
Start 15.07.18
Implement a differentiated focus strategy for Daily Naturals. Hire speaker to teach this strategic approach to staff that works with DN.
Promotional & differentiate: to implement continuous improvement and keeping everyone on the same page to secure the long-term effects of the strategy
Start 15.07.18 Implement differentiation and value creation to the IMC plan by looking at data & suggestions from this report
Differentiation strategy: To secure the quality of the IMC plan, and making sure it’s differentiating DN in a way that is aligned with the target segment.
Start 01.07.18
Accomplished 01.10.18
Target and find 10 Instagram influencers with following between 3000-7000 with the same values as DN. Find 5 with more than 10000 followers. Use paid promotions from these channels.
Promotional strategy: To attract the main segment on the platform where they are most likely to be influenced by it. Builds brand image, awareness and increases sales.
Start 01.08.18
Accomplished 01.10.18
New marketing manager to establish YouTube channel with hair-related content posted once a month. Create good quality content & promote it on Pinterest.
Promotional: Use a wide range of different promotional efforts to increase brand awareness.
Start 01.08.18
Accomplished 01.10.18
Establish a co-branding cooperation with a brand that has DN’s values and the same target market but is non-competing product. Examples of this is: Nourished life, Ere Perez, Raww Cosmetics, and Green Organics
Promotional & differentiate: To increase exposure to our target segment, and to reach parts of the segment we otherwise wouldn’t have access to. Use high quality brand to be perceived as high quality.
Start: 01.07.18
Accomplished 01.09.18
Find charity to support that is aligned with DN’s values, e.g. Animals Australia or GreenFleet.
Promotional & differentiate: To differentiate promotional efforts through cause-marketing
Start: As soon as possible: 01.08.18
Change “Australian made & owned” to “All-natural & Animal Cruelty-free”.
Promotional: Our research confirms that our segment is more affected by all-natural and cruelty, than Australian made & owned which didn’t really affect them.
Figure 14: Millennial work place
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Figure 15: Main segment Characteristics
In-depth questions: Study Guide
Hi, thanks for your time today. This is a interview to better understand how
consumers make decisions about hair care products. Your responses are confidential
and will remain anonymous.
- Ethical purchasers
- Prefer all-natural
- Prefer Cruelty free
- Conscious purchasing instead of donattions
- Prefers bigger bottles
- Uses shampoo every other day to 1-2 times a week
- Shops in convenient locations
- Influenced by Social Media
- Highly effected by Instagram influencers
- Highly influenced by friends & family and free samples
- Would rather buy a brand that support charity than do a one-off donation
- Willing to pay more for all-natural & curelty free products
- Low current awareness of all-natural & cruelty free products
Concious Millennials Women
53
In depth Questions:
1. What is your name, age, occupation, gender and nationality?
2. How often do you use hair products?
- How often do you buy new hair products?
3. Do you color or dye your hair (how often)?
- Do you use straightener or curl ironing or other heat products on your hair? (how
often)
4. What type of hair product do you usually use? (Brands, shampoo, balsam, masks
leave in balsam, hairspray, styling products?)
- Where did you hear about these, and why do you use exactly these products?
- Price, quality, smell preference?
- How much do you use per month on hair-care products approximately?
5. At what price range are you most likely to shop hair-care products?
- Low, medium or high-end products?
- Is price more important than quality?
6. Do you often change your hair products?
- Why? (convenience, price, size, recommendations)
- Between several or only a few selected brands?
7. How do you purchase your hair products?
- What makes you chose a specific product
- What are some of the most important attributes you consider when purchasing hair
products? (effect on hair, ingredients, smell, price, effect on hair/scalp)
- Where do you buy them? (supermarket, online, discount store, chemist, salon)
54
- Would you consider shopping anywhere else than where you are currently shopping
given the right products?
8. Where do you receive information about hair-care products, and what makes you
consider trying a new brand?
- Blogs, YouTube, Instagram, magazines, TV-commercial, friends & family,
experts/hairdresser.
- Where are you most likely to buy a new product? When at the supermarket, saloon,
pharmacy.
- Who do you listen to when it comes to hair-care products
9. What is it that makes a product stand out when you go to the store?
- Colors, attributes, shape, brand, placement, discount etc.
- Do you look for specific colors, do you go straight to the “discount department”?
10. Have you ever tried a product that are all-natural, plant based or cruelty free (free
for sulfates and parabens?
- If yes (Why, what, what effect did it have etc.)
- If not (why)
- Do you know any hair products that are all natural? (which, how)
- Do you know if the products you use are tested on animals?
- Do you research before purchasing products?
11. If you knew that a product was all natural, vegan and cruelty free. Would it affect
your purchasing decision, even if the price is higher?
- Would it appeal to you? (Possible biased response)
12. If a product is Australian made, what is your associations/thoughts about that
product?
- Would it affect our purchase decision?
55
- Would you pay more for a product that was Australian made and owned?
- Do you consider it a quality trait that a hair-care product, or any other product for
that matter is made in Australia?
13. Big companies such as Loreal, have had history of not being cruelty free. Would
their change into vegan friendly products be something you would be interested in?
14. Have you heard of the following, Davroe, Dresslier or Daily Naturals
15. When shopping for hair-care products, do you shop for anyone else?
16. What do you think of this packaging? (Picture of DN bottle)
Survey Questions: Study Guide
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