Wednesday, March 17, 2010
Opportunities
Because of the uniqueness of the product ingredients and packaging, Lemuria will stand out among other products which are similar. There is only 1 major international competitor offering a similar product, from which Lemuria’s basic concept was derived, and improved upon. “A sustainable competitive advantage is a function of the speed with which competitors can imitate a leading company’s strategy and plans.” (MKTG, Lamb Hair McDaniel. Pg.22) We expect consistent growth of online sales because of the explosive growth of the use of computers and online retailing. “Online retailing, or e-tailing, is a type of shopping available to consumers with personal computers and access to the Internet. Over 70% of Americans have Internet access either at home or at work.” (MKTG, Lamb Hair McDaniel. Pg.201) Expansion of product line can include various jewelry diffusers, calendars, books, and clothing which reflect the eclectic Lemuria mystique. A portion of projected sales will go to benefit environmental causes, such as deforestation. Also, a portion of projected sales will go to benefit international disaster relief.
Weaknesses
Lemuria is a new product being introduced to a market that may have brand loyalty to similar products being marketed as essential oils and aromatherapy oils. “Baby boomers are likely to be vigorous consumers in the future, and even though historically, consumers lock in brand preferences by age 40, today’s over-50 crowd is just as likely - and in some cases more likely - as younger generations to try different brands within a product category.” (MKTG, Lamb Hair McDaniel. Pg.36) During the introductory phase we will have a strategic partnership with an outside company that provides the essential oil ingredients, until we have the capacity to produce them in-house. “A strategic partnership, is a cooperative agreement between business firms. Strategic alliances can take the form of licensing or distribution agreements, joint ventures, research and development consortia and partnerships.” (MKTG, Lamb Hair McDaniel. Pg.86) In the event of an unexpected order of large quantity, there would be an added cost for labor and production, and because of unique packaging material, we may have to price somewhat higher than similar products.
Strengths
By launching our product online, we will not incur a huge output of capital, and we can use the Internet for leverage in marketing, advertising, networking, analytics, and ultimately, sales.“Online retailing has exploded in the last several years as consumers have found this type of shopping convenient and, in many instances, less costly. Consumers can shop without leaving their home, choose froom a wide selection of merchanst, use shoping comparison services to search the Web for best price, and then have the items delivered to their doorsteps." (MKTG, Lamb Hair McDaniel. Pg. 201) The marketing team has an extensive combined background in design, marketing, advertising, and sales, and with technology know-how, we are capable of creating effective digital media presentations, websites, and video advertisements as necessary. Research indicates that the target market and society in general is receptive to environmentally conscious products; the 'going green’ concept. Product implementation will require minimal start up investment because viral marketing costs are substantially less expensive than traditional marketing avenues. "Often nontraditional channel arrangements help differentiate a firm’s product from the competition. Nontraditional channels include the Internet.” (MKTG, Lamb Hair McDaniel. Pg.178) Pre-payment for all internet orders will enable us to cover the cost of all orders regardless of quantity. Initial orders in small quantities can be produced in-house without paid labor. By providing inventory only on a pre-paid basis, from actual paid online sales, there will be no inventory expense or loss if sales are slow in the introductory phase.
Objectives
Through online research and marketing, we expect to increase product awareness among the target audience by 30 percent in one year. We will also inform target audience about features and benefits of our product and its competitive advantage, resulting in a 10 percent increase in sales in one year. “Companies increasingly are using the Internet in their public relations strategies. Company web sites are used to introduce new products, promote existing products, obtain consumer feedback, post news releases, communicate legislative and regulatory information, showcase upcoming events, provide links to related sites, release financial information, and perform many more marketing activities. (MKTG, Lamb Hair McDaniel. Pg. 242)
The company intends to donate a portion of profits to benefit areas and peoples victimized by natural disasters, and specific 'green' causes, such as the deforestation of Earth's natural rainforests. “The newest theory in social responsibility is called ‘sustainability’. This refers to the idea that socially responsible companies will out perform their peers by focusing on the world’s social problems, viewing them as opportunities to build profits and help the world at the same time. It is also the notion that companies cannot thrive for long in a world where billions of people are suffering and are desperately poor. Thus, it is in business’s best interest to find ways to attack society’s ills.” (MKTG, Lamb Hair McDaniel. Pg.29)
The company intends to donate a portion of profits to benefit areas and peoples victimized by natural disasters, and specific 'green' causes, such as the deforestation of Earth's natural rainforests. “The newest theory in social responsibility is called ‘sustainability’. This refers to the idea that socially responsible companies will out perform their peers by focusing on the world’s social problems, viewing them as opportunities to build profits and help the world at the same time. It is also the notion that companies cannot thrive for long in a world where billions of people are suffering and are desperately poor. Thus, it is in business’s best interest to find ways to attack society’s ills.” (MKTG, Lamb Hair McDaniel. Pg.29)
Business Mission Statement
To create and sell a unique and exotic essential body oil and fragrance, with a passionate commitment to using pure, natural ingredients and packaging while promoting a conscious awareness and respect for the universe, our planet earth, and all living beings.
The fragrance of Lemuria, and all subsequent products in the Lemuria line will capture the mystique of the legend of Lemuria, which is as follows: Lemuria was an ancient civilization which existed prior to and during the time of Atlantis. Physically, it is believed that Lemuria existed largely in the South Pacific, between North America and Asia/Australia. At its peak of civilization, the Lemurian people were both highly evolved and very spiritual. While concrete physical evidence of this ancient continent may be difficult to find, many people "know" that they have a strong connection to Lemuria. The basic beliefs of Lemuria were the belief in a higher power, love and respect for each other and love and respect for the Earth. That was the spirituality of the ancients and that is the spirituality that is awakening within you. There was a knowing within every Lemurian that all life was harmonious and worked with heart rather than the separated mind/head space. The important concepts were unity, community, awareness, centeredness, absolute love, respect, love of others and unconditional love.
The fragrance of Lemuria, and all subsequent products in the Lemuria line will capture the mystique of the legend of Lemuria, which is as follows: Lemuria was an ancient civilization which existed prior to and during the time of Atlantis. Physically, it is believed that Lemuria existed largely in the South Pacific, between North America and Asia/Australia. At its peak of civilization, the Lemurian people were both highly evolved and very spiritual. While concrete physical evidence of this ancient continent may be difficult to find, many people "know" that they have a strong connection to Lemuria. The basic beliefs of Lemuria were the belief in a higher power, love and respect for each other and love and respect for the Earth. That was the spirituality of the ancients and that is the spirituality that is awakening within you. There was a knowing within every Lemurian that all life was harmonious and worked with heart rather than the separated mind/head space. The important concepts were unity, community, awareness, centeredness, absolute love, respect, love of others and unconditional love.
Thursday, March 11, 2010
Week 9 EOC - McDonald's $10 Burger?
“McDonald's, which has experienced excellent sales during the recession, is going head-to-head with Hardee's and Carl's Jr. restaurants, both of which now offer mammoth Angus burgers priced at around $4. The latter two, which are owned by the same company, even say they'll refund a customer's money if he or she prefers McD's Angus burger to theirs. Burger King, Denny's, Jack in the Box, and Wendy's are all either in the fray, with premium burgers of their own—sirloin burgers, steakhouse burgers, and so on - or they will be soon, per USA Today."
(http://money.blogs.time.com/2009/09/18/fast-food-burgers-go-big-13-pounders-900-calories-4-and-up/)
It’s just a matter of time before McDonald’s will come up with a burger to top all others. They could charge $4, which is the status quo pricing on specialty burgers at the fast food joints. “Although status quo pricing has the advantage of simplicity, its disadvantage is that the strategy may ignore demand or cost or both. If the firm is comparatively small, however, meeting the competition may be the safest route to long-term survival.” (Lamb Hair McDaniel, pg. 280.)
My thought is that, since McDonald’s does not have to worry about being small, they could charge $10 for a super, duper, fantabulous burger that promises to be even better than any of the big burgers coming from the competition. Charge $10 per burger, $20 per burger, whatever amount they wanted to charge. If the price causes no demand, or lack of sales for that one particular item, they still make money off all of the other products. If even only one person buys a $10 burger, McDonald’s will still make a profit. “Price skimming is sometimes called a ‘market plus’ approach to pricing because it denotes a high price relative to the prices of competing products…..companies often use this strategy for new products when the product is perceived by the target market as having unique advantages. Often companies will use skimming and then lower prices over time. This is called ‘sliding down the demand curve’.” (Lamb Hair McDaniel, pg. 278-229.)
Obviously, there are people who see a unique advantage to eating a burger that costs $10. Burgers priced at $10 or more are sold in restaurants. As we know about the fast food society we live in, people don’t want to wait, or be waited on most of the time. They want their food quickly, but why should they have to sacrifice quality, if they are willing to pay the price? For the same price, they can go to McDonalds for an Angus Corned Beef Kosher Burger served on pure grain whole wheat bun, topped with organically grown lettuce, onion, and tomatoes, and be out of there in less than 20 minutes.
(http://money.blogs.time.com/2009/09/18/fast-food-burgers-go-big-13-pounders-900-calories-4-and-up/)
It’s just a matter of time before McDonald’s will come up with a burger to top all others. They could charge $4, which is the status quo pricing on specialty burgers at the fast food joints. “Although status quo pricing has the advantage of simplicity, its disadvantage is that the strategy may ignore demand or cost or both. If the firm is comparatively small, however, meeting the competition may be the safest route to long-term survival.” (Lamb Hair McDaniel, pg. 280.)
My thought is that, since McDonald’s does not have to worry about being small, they could charge $10 for a super, duper, fantabulous burger that promises to be even better than any of the big burgers coming from the competition. Charge $10 per burger, $20 per burger, whatever amount they wanted to charge. If the price causes no demand, or lack of sales for that one particular item, they still make money off all of the other products. If even only one person buys a $10 burger, McDonald’s will still make a profit. “Price skimming is sometimes called a ‘market plus’ approach to pricing because it denotes a high price relative to the prices of competing products…..companies often use this strategy for new products when the product is perceived by the target market as having unique advantages. Often companies will use skimming and then lower prices over time. This is called ‘sliding down the demand curve’.” (Lamb Hair McDaniel, pg. 278-229.)
Obviously, there are people who see a unique advantage to eating a burger that costs $10. Burgers priced at $10 or more are sold in restaurants. As we know about the fast food society we live in, people don’t want to wait, or be waited on most of the time. They want their food quickly, but why should they have to sacrifice quality, if they are willing to pay the price? For the same price, they can go to McDonalds for an Angus Corned Beef Kosher Burger served on pure grain whole wheat bun, topped with organically grown lettuce, onion, and tomatoes, and be out of there in less than 20 minutes.
Week 8 EOC - My USP Compared to 3 Others
LEMURIA will use pure coconut oil and a selected brand of jasmine essential oil which very closely resembles the exotic fragrance of the Tahitian Tiare flower. In addition to the coconut and jasmine body oil, Lemuria will also provide an essential oil with the 2 fragrances combined. It will be made available in a environmentally safe plastic bottle, or a crystal pendant that can be worn around the neck. The packaging for Lemuria will not be as simplistic as Monoi Tiare Tahiti...it will be more decorative and each packaging item (crystal pendant, pouch, plastic bottle) can be used for a dual purpose. The price for a bottle of Lemuria Body Oil will be $12.99
LEMURIA ESSENTIAL OIL PENDANT will not be sold to address the healing of physical ailments. The crystal pendant used is not made of real crystal, it is made of glass, and is much more streamlined, aesthetic looking, and fashionable. The price for a Lemuria Crystal Pendant is about $20.00 and comes with a vile of Lemuria Essential Oil for refills.
RETURN TO LEMURIA - This spray creates an environment bridging the connection to angels and Spirit. The energy in Lemuria supported this joining of matter and spirit, and it is exciting to facilitate a revival of this awareness for the benefit of all of us in this new millennium. Frankencense and Jasmine essential oils are blended with a hydrosol of Hawaiian sandalwood, the essence of old Hawai`I, and with Hawaiian Holy Water that is energetically activated Kaua'i rain, spring & ocean water. The result is a perfect aromatic moisturizing refresher to the face, skin and air. Gem essences, Celestite, Charoite, Larimar & Ruby, are added to each bottle, as energetic catalysts. Lemurian Mist is unique! This is not sticky essential oil or perfumes in water, but a revolutionary combination of water of sandalwood in a base of powerfully beneficial island waters. The essences added were all chosen for their ability to recreate the energy of Lemuria. Lemurian Mist is available in cobalt blue 1 ounce mist bottles. Price for a 1 oz. bottle is $13.00
LEMURIA ESSENTIAL OIL - Is jasmine essential oil contained in a 1 oz. file. Our marketing strategy will not include any spiritual or healing claims or holy water. It will not have a spray diffuserRecreating the energy of Lemuria will be done in the packaging, design of website, advertising, and marketing materials. The price for a 1 oz. vile of Lemuria Essential Oil will be around $10.00
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