Cupids Arrow Inc. of Marketing Plan - Essay Example

CUPID'S ARROW INC. MARKETING PLAN Table of Contents 0 Executive Summary 2 2.0 Situation Analysis 3 3.0 Product Description 4 4.0 Market summary 5 4.1 SWOT Analysis 6 4.2 Competition 9 4.3 Product Offering 9 4.4 Keys to Success 10 4.5 Critical Issues 11 5.0 Marketing Strategy 11 5.1 Mission and Objectives 12 5.2 Financial Objectives 12 5.3 Target Markets 13 5.4 Strategies 13 5.5 Pricing 14 5.6 Distribution 14 5.7 Marketing Communications 14 5.8 Marketing Mix 15 5.9 Marketing Research 16 6.0 Financials 17 6.1 Three years Sales Forecasts 17 6.2 Profitability Statement for Three Years 18 6.3 Break Even Point 19 7.0 Controls 20 7.1 Implementation 20 7.2 Marketing Organization 20 7.3 Contingency Planning 21 Reference 22 MARKETING PLAN 1.0 Executive Summary: Aging boomers want all the comforts and privileges of growing old without giving up any of the pleasures of and peccadilloes of youth - including their Harleys, an icon of youthful rebellion. The mature population is even changing the way the products are paid for; Chicago based Chase Bank issues a Kiss Platinum Visa Credit card. And the market place that wants their estimated US $ 1 trillion disposable income purchasing power is eager to help them do so. Apart from this class of customers there are other people who are deprived of the worldly pleasures because of their physical conditions caused by obesity and weight problems. Obviously this class of consumers also have a considerable disposable income and they would not hesitate to spend money to increase the sexual pleasures that they derive by using any aids which prove worthy of the price. Considering these rare psychological phenomena Cupid's Arrow Inc have come out with their new product 'Easy Rider' which increases the sexual pleasure by an aid which adjusts the physical position of the female partner during the sexual act. This product is complementary to other personal care products that are being dealt with by Cupid's Arrow Inc. and since the company is already having its network of distributors it would well within the control of the company to introduce this product into the market in a short span of time and achieve the targeted market share of 20 percent in the estimated $ 1 billion of the sex aid products market share in the country of United States in the first year of its introduction. The company expects to achieve a turnover of $ 50 million by selling close to 1 million products to the niche market. 2.0 Situation Analysis: Cupid's Arrow Inc. is known for its health care products of a world class and has earned the continued support of the elite class consumers for their wide range of products covering the aristocratic lifestyle of the consumers. The company was formed in the year 1985 and has received many accolades for their credit in the health care product range. Their products are of premium range and are available all through the United States for sale by super retails stores and high end pharmacies dealing premium health care products. This product 'Easy rider' is the first of its kind from the Company and because of the unique purpose it serves to a unique class of consumers, the product is expected to catch up a good market in the short run. Since the sex aid products market is highly fragmented and is in the hands of small manufactures and sellers, definite market data on the total turnover of the industry cannot be assimilated and hence this market plan is unable to present an analysis of the current market data of the sex aid products in the US. However the market sources indicate the sales to be in the region of $ 1 billion in the sex aid products apart from the sex toys market. While the fact goes like there are many causes for sexual dysfunction, not all which are treated through do-it-yourself online courses. Side effects from some mediations and hormonal changes often reduce the ability to feel aroused. While Walgreen and Rite Aid have shied away from selling anything other than herbal supplements under their sexual wellness sections, the online company Drug store.com is still trying to thrive in the sexual aid product market. Although, about seventy percent of its sexual enhancement customers are women, their top sellers are vibrators followed by herbal supplements and creams. The site doesn't venture much beyond that. Another situation prevailing in the sex aid products is the kind of 'pleasure parties' hosted by women to promote the wares of sexy toy companies like Sweet Sinsations. In this background the 'Easy Rider' promoted by Cupid's Arrow Inc. is definite to capture the attention of the sex starving women of the target market of Baby Boomers and couples having body weight problems. The Sex Aid products market is expected to touch a record figure of $ 12 billion by 2010, which is currently $8 billion for the year 2006. This signifies a growth of around 12.5 percent annually. The targeted market share of 20 percent to be achieved by Cupid's Arrow is not an impossible taking into account the market scenario of the sex aid products. 3.0 Product Description: The product 'Easy Rider' fits exactly in to the description of a sex aid device as defined for the purpose of US Patent issued under United States Patent # 7018329 which goes as under: "A sex aid device is for assisting a human male and female couple to engage in sexual intercourse. The device includes a frame and resilient belts attached to the frame for providing a seat for a female above the male lying beneath the frame. The frame includes a pair of substantially parallel, transverse rods and a pair of substantially U-shaped upright legs, allowing the male to lie down beneath the rods without being hindered by the legs. The resilient belts define and opening to permit access to the seated female's genitals." (Patent Storm) The product is a mat made of flexible plastic and silicone rectangular in shape. On the ends of the rectangle are two silicone triangular shapes which the female can insert her knees. This gives the woman a more ease height in the riding position. A lot of times they begin to develop belly and a women is unable to ride a guy so that when she gets on top her knees would be touching the bed, instead she would have to ride the guy in the sitting position. This product allows women to be able to revisit the old riding position by being able to get a little lift with the added knee cushions. 4.0 Market Summary: Cupid's Arrow Inc. market consists of couples specifically older/baby boomer types and couples having weight as an issue in their sexual life. The product is aimed to aid especially the women in their sex acts. Primary targeted market segment is the group of women from the Baby Boomers to include women born between 1950 and 1964 and also women whose husbands are having excessive belly resulting in dysfunction of sexual acts. In the words of Dr. Laura Berman, who is also the director of the Berman Center in Chicago "Using sexual aids and devices is a normal and healthy part of life, but it is clear that we still have a long way to go. Many women don't know what's right for them, where to find sexual aids, or how to use them. In my practice, I educate women about sexual aids and prescribe devices tailored to their individual needs." Hence by adopting suitable advertisement materials and media the product can be reached a wide niche consumer range. Since the market is the infant stage there is every opportunity for Cupid's Arrow to capture a sizeable market share in the near future. 4.1 SWOT Analysis: An analysis of the strengths and weaknesses of the product 'Easy Rider' being introduced by Cupid's Arrow Inc. is produced below for the information of the readers of the Market Plan. To outline the strengths of the product, a specific mention should be made of the uniqueness of the product. Although some other companies make and market similar products they are not in a position to offer distinguishing features of their products which make them different from 'Easy Rider'. The relative strengths and weaknesses are discussed below: 4.1.1 Strengths: 1. Uniqueness of the Product: 'Easy Rider' is the product which is first of its kind in the market, which is a great strength for Cupid's Arrow Inc. Boomers really want to be active, adventurous, attractive and sexual and with the features of this product the company will be able to attract a large business. 2. Psychological Impact: The psychological impact that the product creates in the minds of the Boomers and the couples having body weight problem is definitely a strength that adds to the product, because with the product it becomes easier to make sex and the product makes sex more enjoyable, romantic and interesting. 3. Brand Image of Cupid's Arrow Inc. Backed by the image created by Cupid's Arrow Inc, which is renowned for its other personal care products, the 'Easy Rider' will definitely command a high regard among the targeted consumers. 4. Advantage of Distribution Channels: Cupid's Arrow Inc's other personal care products are being distributed and are being available for sale throughout the United States and it is easy for the company to introduce the product in to the market without too much of a hassle and this is a distinct strength of the company. 4.1.2. Weaknesses: 1. Privacy needed by Women for purchasing the device: The feeling of privacy that a woman expects while buying the sex aid device, in contact to the men, it may pose a problem for the sale of higher quantities in specialty stores or pharmacies. 2. Alternatives: The availability of alternatives to such kind of devices in herbal supplements may be looked at by the consumers without really understanding the need for a device. The shyness to discuss the problems relating to sexual behaviours may be viewed as a weakness for the product. 3. Selling Points: The targeted sales points of specialty stores and high end pharmacies may sometimes prove a weakness as the women would prefer to buy such devices on line instead of physically going to the stores. 4.1.3 Opportunities: Cupid's Arrow Inc finds the following opportunities for its new product 'easy rider' in the current market situation with respect to the sex aid products: 1. Widened Market area: According to a study on the Health Benefits of Sexual Aids and Devices, approximately 75 percent of women purchase sexual aids and devices at specialty stores and this opens up a new opportunity for the market for this product. 2. Physical comfort for the users: As the product really provides an unforeseen comfort for the couples during their sexual acts, this product projects a good opportunity for Cupid's Arrow Inc. to clinch a sizeable market share. 3. Consumer Range: The targeted consumer range for the product represents a comparatively large proportion of couples as the obesity and overweight are becoming more common among men. 4. Awareness: The increased awareness among the couples about the reasons sexual dysfunctions is another opportunity distinctly available for easy rider. 4.1.4 Threats: 1. Expected Competition from the market: Since the market for sex aid products as compared to sex toys, is comparatively virgin, it is exposed to the entry from new firms which may act as fierce competitors for Cupid's Arrow Inc. 2. Lack of Product Knowledge among couples: There is every possibility that most of the couples having weight problem may not have the knowledge of the existence of the product which may be a potential threat for the success of the product. 3. Lack of understanding of the product usage: There is a chance that the product may be mistaken as sex toy rather than a sexual aid. This poses a threat. 4.2 Competition: The product may face a stiff competition from the companies selling such products on line along with sex toys. Fro example mail order companies and online stores like Drugstore.com, Pillowmail.com, and Good Vibrations.com pose a severe competition to the product of Cupid's Arrow Inc. Taiwan based Long Love & Happiness Company Limited makes an identical product to be marketed in the United States which may also bring in some competition for the product. Apart from these companies there are lots of smaller firms which sell feminine hygiene products, condoms, lubricants, grooming aids and products related to pregnancy and conception also sell sex aid devices and pose competition to the product of Cupid's Arrow. 4.3 Product Offering: The company Cupid's Arrow offers a unique product 'Easy Rider' mainly aimed to increase the physical comfort of the couples during their sexual act through the design of the product. The product is aimed to: Help old couples and couples having body weight as their problem for having the real pleasure in sexual act. It also helps pregnant women and arthritic people to enjoy sex Acts as a great aid to sex in reducing the weight of the women Provides more intimate interactions To reach orgasm there is no need to change position due to pain and fatigue Since it is made of flexible plastic and silicon materials it is easy to handle The product is designed carefully after taking into account the difficulties being faced by the couple having excessive body weights and the design offers an easy riding position without much difficulty. 4.4 Keys to Success: Though the product is relatively new in the market the following aspects will make the product a successful one for Cupid's Arrow: 1. Less Competition: Since the product has distinguishing features than sex toys the differentiation is the main key to success. The main promotional point for the product is that it should be regarded as sex aid device rather than a sex toy the purpose of which is totally different. 2. Target Customers: This is another key point which will make the product a grand success. By adopting a detailed explanatory way of advertising the benefits of this aid it is quite possible that the product may sell well. 3. Target Market Area: Since the proposed market area includes more metropolitan cities there is every likelihood that the product will earn its popularity as the couples who are need of such aids would be well informed about the range of products available and their relative merits. 4.5 Critical Issues: Among other things, advertising the product through proper media and materials will be the critical issue. Unless proper explained about the purpose and the targeted people who should use this product, there are chances that the product is regarded as one of the other sex toys and may lose its importance. Secondly, the privacy the women may need in purchasing these kinds of sex aid devices may be a critical factor which needs the attention of the company. Another critical factor is the lack of awareness in the non-metropolitan areas about the product availability and usage. The company should while drafting its advertising policies take this factor into account. 5.0 Marketing Strategy: Having a considerable experience in the promotion and sales of personal care products, the company Cupid's Arrow has very tactically drafted its marketing strategy with respect to its new product 'Easy Rider'; The turnover the company aims to achieve in the first year is twenty percent of the total un-assessed US market for Sex Aid devices of $ 1 billion which works out to approximately $ 50 million. This means that the company aims at selling 1 million units priced at $ 49.99 each. For the consecutive years the turnover estimates range at $ 60 million for the year 2008 and around$ 86 million for 2009. The relative financial workings are exhibited in other sections of this market plan. 5.1 Mission and Objectives: The mission of the company is to produce and deliver a quality product which should really eliminate the discomfort for the couples, hitherto suffering from untold inconveniences. The life style of such couples should be changes dramatically by using this product. Being an innovative product the easy rider should command a good respect among so many other cheaper alternatives available in the market. With this meaningful innovation the company has introduced a purpose based product and the company will ensure its success. It is not forgotten by the company that awareness and reactions to market efforts and consumer opinions are the keys to the company's success. The company will always to strive to make adjustments in their marketing efforts based on such customer feedbacks. 5.2 Financial Objectives: The product will be priced at $ 49.99 in the first year and $ 54.99 in the year 2009 As outlined above the financial objectives can be represented as below: year Quantity Units Sales 2007 1,000,000 49,990,000 2008 1,200,000 59,988,000 2009 1,560,000 85,784,400 5.3 Target Markets: Cupid's Arrow's marketing strategy is based on a positioning of the product differentiation. The primary target market for the product is the consumers belonging to boomer group and couples having an excess body weight. The product will be placed mainly in metropolitan areas and high Christian faith areas followed by other areas. Positioning: Using product differentiation as a positioning technique, the easy rider is placed in the market as sex aid device as opposed to a sex toy. The sex aid devices are not that popular as sex toys among the consumers. By offering a convenient method of enjoying their sex life this product places itself in a unique position among various other products available in the market like supplementary herbal products. As the product mainly takes care of the physical positioning of the couples there obviously are not any side effects as in the case of any other medicinal products. By giving pleasure to both the partners of the sexual act, the product can command higher respect among those who are in need of such a device. 5.4 Strategies: In any marketing plan, the company's marketing strategies should be classified into the strategies relating to the product, pricing, distribution and marketing communication which are very essential features of the marketing strategies. Product: Easy-rider incorporating all the features described in the product description will be sold with a trail offer and a money back guarantee in case the customer is not completely satisfied. Since the product is sold under the brand image of Cupid's Arrow the logo and the emblem of the company will be prominently displayed both on the product and the packaging of the product. This will command a higher respect for the product. The company will adopt the uniform packaging policy as in the case of its other products. 5.5 Pricing: The initial offering of the product in the market will be with a retail price of $ 49.99, which will later on be revised depending on the demand pattern. Fro forecast purposes the price of $ 54.99 is assumed for the year 2009, the third year of the introduction of the product in the market. The prices have been worked out after a careful analysis of the prices of other products available in the market and the affordability of the target consumers. 5.6 Distribution: The product will be distributed through the existing channels of distribution of the company and will be available for sale in specialty stores and high end pharmacies initially as a test market in Florida and later on in the other parts of US. For the promotion of the product, the company will provide its all round professional support through advertising pamphlets and other materials which will be displayed in all mens and womens magazines, pharmaceutical magazines and porno magazines. Samples will be sent for display in sex shops, porn production companies. 5.7 Marketing Communications: The exclusivity of the product will be covered in all media of advertising by suitably explaining the usage and superiority of the product. The purpose of any marketing communication is to create the awareness of the product. The company will keep this point while drafting the advertising matters for print and visual media which is the very essence of the success of the product. As a promotional offer, the company may decide to include some freebies of its own products. The advertising materials like pamphlets and flyers will be distributed at all sex shops, porn centers and will be on prominent display in all the stores and pharmacies where the other products of the company will be sold. Promotional discounts may be offered to the distributors to encourage them to achieve the marketing goals of the company. 5.8 Marketing Mix: As a part of the overall marketing plan the company proposes to undertake the following action plan to activate the market for the new product: Fortnight I Commercials will be run on the important television channels during such time where the channels can ensure the viewing by the target customer group. The commercials will explain the usage of the product and will also announce the date on which the product will be available for sale in the sores. Fortnight II During the second fortnight, the flyers and advertisement materials will be moved to all the sales points. Advertisement in all the planned magazines will appear during this fortnight highlighting the usage and features of the product. Fortnight III Free samples will be sent for display in the sex shops, porno film production centers and other sales points. This should accelerate the expectation of the products in the sales points. Also the announcements regarding the freebies should reach the target market during this period. Fortnight IV Actual movement of the products should be undertaken during this fortnight. Having crated the necessary expectation among the target customer group the launching of the product can take off during this fortnight which will make the product launching a success. 5.9 Marketing Research: Thoroughly organized market surveys and interviews were conducted by the company before deciding on launching this new product. Several couples who were the potential users of the product were identified and interviews under conditions of anonymity about their sexual experiences and the resultant feelings. The company engaged the services of a professional marketing survey agency to conduct the study on behalf of the company and the purpose of the study was mainly: to produce an academic study in an underreported and emerging area of interest in women's sexuality, to determine the instance of use of sexual aids and devices, and to identify women's attitudes toward such aids and devices and their role in overall health and well-being. The study findings indicate that approximately 75 percent of women purchase sexual aids and devices at specialty stores, although an increasing number of women are opting for the privacy and safety offered by Web-based stores. The Study also revealed that Women who use sexual devices report experiencing higher levels of sexual function and satisfaction with their partners than non-users. This includes higher levels of sexual desire and arousal as well as less pain during and after intercourse. Sexual device users also find it easier to reach orgasm when compared to non-users, who tend to have moderate success. With these findings, we can safely suggest that all of these characteristics were significantly correlated with higher levels of quality of life in the respondents and justified the introduction of the new product 'easy rider'. 6. 0 Financials: This section of the market plan, deals with the projected sales, profitability and break even point of sales. The financials have been worked out with the overall marketing strategy in view. In the second year the sales is expected to increase by 20 percent on he first year and in the third year 30 percent of the sales of the second year. 6.1 Three years Sales Forecasts: Year Quantity Units Unit Price in US $ Sales Value US $ 2007 1,000,000 49.99 49,990,000 2008 1,200,000 49,99 59,988,000 2009 1,560,000 54.99 85,784,400 6.2 Profitability Statement for the Three Years: Details Year 2007 $ Year 2008 $ Year 2009 $ Sales Revenue 49,990,000 59,988,000 85,784,400 Expenses: Cost of Goods Sold 37,145,000 41,998,000 61,240,000 Selling & Distribution Expenses 7,800,000 8,160,000 8,608,000 Research & Development 635,000 455,000 534.000 Other Administrative Expenses 5,760,000 1,260,000 2,240,000 Total Expenses 51,340,000 51,873,000 72,622,000 Income from Operations (1,350,000) 8,115,000 13,162,400 6. 3 Break Even Point: The break even point of sales is arrived at as below: Details Value Us $ Cost of goods Sold 37,145,000 Selling & Distribution Expenses 7,800,000 Research & Development Expenses 635,000 Total Variable Expenses 45,580,000 Price per Unit 49.99 No of units to be sold for breaking even the variable expenses 911,782 7. 0 Controls: The company proposes to introduce the following control measures to achieve the marketing goals effectively: 7.1 Implementation: Easy Rider will undergo tighter control measures in respect of quality, customer satisfaction and distributor participation. The company will gather the feedback reports from the customers for the complaints in the products and will also invite possible suggestions to incorporate in the design and features of the product for better performance. A periodic review of the performance will be undertaken to control the growth of the sales and the possible reasons will be identified for rectification or improvement to maintain the targeted sales growth. Other markets will be identified for a possible expansion in the market. Consumer surveys will be conducted to get to know the first hand information on the usage of the products. 7.2 Marketing Organization: The marketing organization will involve a 'Chief Marketing Officer-Sex Aid Products Division' to be appointed exclusively to look after the marketing of this product as well as other products the company proposes to introduce in the near future. He will be taking the overall responsibility for the product and he will be assisted by such people as may be necessary. 7.3 Contingency Planning: Difficulties and Risks: Problem may occur in achieving the targeted market share due to lack of customer support. Worst Case Risks: The Company may have to reassess the strength of the product by expanding the advertising methods. Still if the product doesn't take off it is advisable to withdraw the product and develop another product after sustained research and development. Reference: 1. Patent Storm [Online] Available from: http://www.patentstorm.us/patents/7018329.html Accessed on 22nd February 2007 Read More