Jurlique Marketing - Case Study Example

Student’s Name Your Instructor’s name The Course Date Jurlique (Natural Skin Care Products) Summary Of late, discovery on how rich nature is and how well it can serve human beings without chemical additives have been on the rise. Globally, people have decided to go back to herbs and natural products for healthy living. This could not have been the case if chemically processed products had not proved to develop health problems including skin problems. Jurlique is one of the companies that offer herbal skin care products that guarantee a healthy, glowing and youthful skin. The company through the marketing department has a plan to venture into India and extend its services there. This venture calls for planning and product adaptation to be able to meet the market needs. Introduction Having circulated the areas around the company with skin care products, it is time as a company we venture into new markets. This will not only increase our market base, but will see to it that the company grows its operations to make more profits. In this endeavor, India has been identified as one of the most productive places where we can venture to. This paper will bring to light how the venture will be founded, the estimated budget and how the company will adapt the products to meet the market needs. It will also discuss how the marketing mix will be utilized plus elaborate on the next step after the products have been launched in India. To be able to make lasting impact in this venture, the company will need to be tactful in its marketing strategies as well as plan for future marketing. This calls for a good utilization of place, price, product and promotion. The products appearance and packaging will change to capture the attention of the target audience. This will be done in a price sensitive manner to take care of all categories of people (Danaher, Hardie and Putsis 501). Product appearances that will be affected include color, container size and shapes. Among many marketing strategies that we can use, we will emphasize on giving discounts on purchasing products worth a certain amount, media advertisements, sale promotion seminars, trade show booths, and personal selling. Through the company’s website, face book, Twitter, and linked pages, the company’s products knowledge will reach a wide base of customers. To avoid working with un-proportional costs in relation to product price, the venture will be founded on the grounds of product performance in the current market (Danaher, Hardie and Putsis 501). Since the products have been doing well in sales, the company has a good base to project from. Therefore the current market stands as the solid ground to access the degree of sustainability the product could have in India. All the promotion decisions are compliant with the budget and break-even analysis and aim at communicating to the consumers on the products the company have to offer (Quick MBA 1). Budget Estimates The estimated budget below will cater for all the marketing expenses that pertain to product promotion. This will ensure an effective launching of the company products in India through all means possible. Marketing Expenses Budget Prices Media Advertisement $15,000 Sales Promotions Seminars $1,000 Personal Selling $15,000 Discounts $15,000 Website, Face book, Twitter & Linked $0 Trade show booths $10,000 Total Marketing Expenses $56,000 With a Total fixed cost of $ 180,000, the marketing venture estimate to produce a profit margin of 40% on first 4000 units of products manufactured for India Market. The profits will be calculated on the following formulas; Total Cost= Total Fixed Cost + Total Marketing Expenses =$ 180,000+ $ 56,000= $ 236,000 Total Revenue= 140% of Total Cost = 140% of $236,000= $330400 Gross profit= Total Revenue- Total Cost =$330,400-$236,000= $ 94, 400 This means that Selling Price per unit will be $ 82.6 calculated by Selling Price= Total Revenue/Number of Units=$330400/4000= $82.6 Break-Even Budget Estimate To operate at break even, adjustments will have to be done on Total fixed cost, marketing expenses and product prices. All that will be done to ensure that the company neither gets loss nor profit. Therefore Total Costs= Total Revenue In this case Total Cost= $ 236,000 = Total Revenue With marketing expenses reducing by $25,000 to $31,000 Total fixed cost lowered by 20% to $144,000 The price of every unit increased by $15.25, to $97.85, break-even budget will be as follows; Marketing Expenses Budget Prices Media Advertisement $10,000 Sales Promotions Seminars $1,000 Personal Selling $10,000 Discounts $5,000 Facebook, Twitter & Linked $0 Trade show booths $5,000 Total Marketing Expenses $31,000 The mentioned variables were calculated as follows: Total Expenses= Total Fixed Cost + Total Marketing Expenses Total Fixed Cost= 80% of $180,000= $ 144,000 Total Expenses= $ 175,000, the remaining $ 61,000 to be shared among the 4,000 units produced. This will reduce the total volume required to break even while increasing the profit margin in a way that the customer may not realize (Business Town 1). How the products and services will be adapted to meet the needs of the India markets India as a region is unique in its needs, potentials, value and customs. For the company to meet the needs in the market, scrutiny on areas that touch on uniqueness of the market had to be done. These include packaging products in local languages and having advertisements and publicity done in local language. Although this will be a new concept to Jurlique, it will open up the market since local languages offers the most effective way of communication in the region. The other adaptation will be on product appearance. Product’s sizes, shapes and colors may change from what we have to fit the market’s likes. Like for the example, the color of men skin care products and the containers may change from white to pink which is the favorite color for Indian men (Wordpress 1). All those adaptations are aimed at lowering the degree of competition in the market and reach the maximum number of audience we can. Launching the products will be the first step in the market; the next step will be to position our products. With good market positioning, the company is guaranteed of a growing demand for its products since it will have gained trust with the consumers. Positioning will include choosing shops and stalls in strategic places like shopping malls, busy towns and in the supermarkets. We will use all our marketing tools to ensure that Indian market believe in the company and its products. Recommendation As the company’s marketing department, we recommend the Indian market be adopted as the newest company’s marketing venture. Adopting it will not only help the tap into the market potential in consumption of our products but also will increase the market base for the company. The department also recommends the budget estimated to be adopted since it will see into it that proper product knowledge is done. With proper marketing, the company will realize its set profit targets of 40%. Conclusion Successful adoption of this proposal will not only show support for the department, but will also enhance a growing spirit. This is because; the company anticipates having a successful venture into India with correct use of the marketing mix variables. The company’s products with a few modifications in packaging will meet the market needs at the most affordable market prices. This will ensure that as a company, we get a competitive edge over other companies trading in similar products. With a successful venture the company is certain to grow in revenue which will enhance growth in every other sector. Works Cited BusinessTown. Accounting-Projection: Break Even Analysis. Businesstown.com, 2003. Web. 23 Jan 2012. Danaher, Peter J., Hardies, Bruce G. S. & Putsis, William P. “Marketing-Mix Variables and the Diffusion of Successive Generations of a Technological Innovation”. Journal of Marketing Research XXXVIII (2001): 501-514. Web. 23 Jan 2012. Quick MBA. “The Marketing Mix”. Quickmba.com, 2010. Web. 23 Jan 2012. Wordpress. The Life and Times of an Indian Homemaker. Indianhomemaker,2011. Web. 23 Jan 2012. Read More