Cimeta Argent

Implementation and Evaluation Control

In order to implement this marketing plan Haute Fragrances will utilize a 6-month schedule. During the first two months we will finish producing the fragrance while slowly the starting promotions in the magazines GQ, Conde Nast Traveler, and Forbes. In months three and four we will ship the fragrance to our flagships stores in preparation for the launch. This shipment will include some of the sample fragrances that may be given out to our most loyal consumers. In the fifth month we will begin a more aggressive advertising campaign in the magazines listed above as well as in our flagship stores and start sending out promotion material to the select Bloomindales locations. Finally, in the sixth month, the rest of the product will be shipped to Bloomindales stores and will officially launch in our Haute flagship stores with special events in each store for our loyal customers. Introductory stage of the product life cycle represents the full scale launch of a new product into the marketplace. (MKTG;Lamb, Hair, McDaniels;155)

In order to be sure that this plan has been effective we will look at the sales figures for the first six months after the product launch to ensure that sales are where they need to be in order for us to reach our goals. If changes may need to be made we will then know before it is too late in the fiscal year to make changes. Marketing research provides decision makers with data on the effectiveness of the current marketing mix and also with insights for necessary changes. (MKTG;Lamb, Hair, McDaniels;114)

Marketing Strategy

Target Market Strategy:

A target market is a defined group that managers feel is most likely to buy a firms product. (MKTG;Lamb, Hair, McDaniels;32) The target market for Cimeta Argent would more than likely be considered a niche market. Concentrated targeting strategy, a firm selects a market niche (one segment of the market) for targeting its marketing efforts...to concentrate on understanding the needs, motives, and satisfaction. (MKTG;Lamb, Hair, McDaniels;107) We are aiming for single males between the ages of 25 and 35 who earn $100,000+ annually, or aspire to one day earn such a salary. These males will likely shop at other specialty stores such as Tom Ford and Dior Homme and high level department stores such as Bloomingdales and other locations such as Whole Foods and Equinox gyms. Customers can also be segmented into frequent users, moderate users, and heavy users. (MKTG;Lamb, Hair, McDaniels;303) Fortunately this niche market are very loyal consumers who once they find a product will continue to make frequent purchases throughout the rest of their lives.

Marketing Mix

Product: The product that we will be marketing is our newest men’s fragrance, Cimeta Argent.

Price: Cimeta Argent will sell for $175 for 50 mL, which is very much the price of our main competitors fragrances. Pricing is always an important aspect of marketing but is especially crucial in terms of inflation and recession. (MKTG;Lamb, Hair, McDaniels;289)

Place: As stated, Cimeta Argent will be exclusively available at Haute flagship stores in New York, Chicago, and Los Angeles and in select Bloomingdales across the country. Exclusive distribution is distribution which entails only one or few dealers within a given area. (MKTG;Lamb, Hair, McDaniels;181)

Promotion: Promotion is communication by marketers that informs, persuades, and reminds potential buyers of a product in order to influence their opinion or elicit a response. (MKTG;Lamb, Hair, McDaniels;211) Cimeta Argent will be advertised selectively in publications that our target market may read, magazines such as GQ, Conde Nast Traveler, and Forbes. Also in store launches will be held in Haute flagship stores in order to announce the new fragrance line. We will always keep in mind that to sell the sizzle, not the steak-that is, in advertising the goal is to sell the benefits of the product, not its attributes. (MKTG;Lamb, Hair, McDaniels;230)

SWOT Analysis

Strengths:

Our consumer product [a consumer product is a product that is bought to satisfy an individual's wants. (MKTG; Lamb, Hair, McDaniels;131)] offers a sense of uniqueness by those who choose to wear it. It will be produced in limited quantities that are sold only at select retail stores, our Haute flagship stores and through the strategic alliance [strategic alliance...is a cooperative agreement between business firms-these may take the form of licensing, distribution agreements...and partnerships. (MKTG; Lamb, Hair, McDaniels;86)] that we have set up with select Bloomindales stores throughout the country. Our product also offers this uniqueness by being created with all natural ingredients, naturally harvested scents procured by hand by our fragrance specialists. Our scents will also seamlessly fit into our consumers current lifestyles, so much so that they may feel they need it with them always. Lifestyle is a mode of living, as identified by a persons activities, interests, and opinions. (MKTG; Lamb, Hair, McDaniels;76)

Weaknesses:

The weakness of our new product may be the fact that it is in fact a new product. In the economy that we are in consumers are less willing to spend frivolously on new products that they have not tried.

Opportunities:

We also have an opportunity in the fact that our product is new. We can begin a new marketing approach with this product, we will produce small .5 mmL bottles of sample fragrance that will allow the consumer to use our product for only a few days and begin to wonder how they could not continue to use it, leading to them coming back and purchasing a full priced bottle. Sampling can increase sales by as much as 40%, so its no surprise that sampling has increased more than 20% annually in recent years. (MKTG; Lamb, Hair, McDaniels;249) Also, if the fragrance is successful in the US market we may considering taking it overseas to the European market. When a company decides to enter the global market, exporting is usually the least complicated and least risky alternative. (MKTG; Lamb, Hair, McDaniels;55)

Threats:

Our biggest threats come from two main competitors, Tom Ford fragrances and Jo Malone. Tom Ford offers similar boutique fragrances like Cimeta Argent that are created using all natural fragrances and create an exclusive feel. Jo Malone is a competitor because they hand mix a personal fragrance for their consumer. This extra additive of exclusivity may hurt our exclusive image since we only produce certain scents and do not offer a ‘mix your own’ option.

Objectives

In order to successfully launch our new fragrance, Cimeta Argent, we will come up with a marketing plan to help organize the launch of the product. The creation and implementation of a complete marketing plan will allow the organization to succeed. (MKTG; Lamb, Hair, McDaniels;16)

Our objectives are to retain at least 90% of purchasers of our products in 2009 as return customers in 2010. We hope that this customer loyalty will enable us to reach a return on investment of at least 10% that we can reinvest in research and development for future products. We hope to gain at least 2% market share with the addition of our new fragrance, Cimeta Argent. Market share is a company's product sales as a percentage of total sales for that industry. (MKTG;Lamb, Hair, McDaniels;263) We will also strive for ethical responsibility with this particular product line by donating 5% of profits to a charitable non-profit organization. A non-profit organization is an organization that exists to achieve some goal other than the usual business goals of profit, market share, and return on investment. (MKTG; Lamb, Hair, McDaniels;161)

Business Mission Statement

Haute fragrances, a division of Haute Inc, aims to provide men and women with fragrances to enhance their lives in way that they didn’t even think possible. We will provide our customers with specialty fragrances that will help them express their individuality and stand out in a group. Our flagship stores and partner stores will set high levels of customer service in order to capitalize on the needs and wants of our consumers. Some retailers, such as exclusive clothing stores, offer huge levels of surface by providing services such as alterations, gift wrapping, and personal shopping. (MKTG;Lamb, Hair, McDaniels;194) This will give meaning to our business and help to inspire the working lives of our employees. When an organization creates a high level of employee satisfaction, this leads to greater effort, which leads to higher quality goods, which leads to higher growth and profits, which leads to higher stockholder satisfaction, which leads to more investment and so on. (MKTG; Lamb, Hair, McDaniel; 3)

Week 10 EOC -- Volkswagen

The term Volkswagen in German means family car, the fact that VW has presented itself this way since its start in the 1930s proves that a car company can remain true to what it is and what it believes and still create sellable, dependable vehicles. While they have extended their line beyond just the beetle and have entered into a little higher market with the Touareg SUV Volkswagen and remained pretty true to form, still offering very affordable cars that get great gas mileage and are dependable cars. Ten fun facts about VW, enjoy.

*The idea for the Beetle came from Adolph Hitler, who while in prison in 1924 following the unsuccessful putsch on the Federal German capital. Hitler conceived of an idea to solve Germany's unemployment problem, the Government would build special roads (autobahns) for motor vehicles. He would also mass-produce a car ( the peoples car, the Volkswagen ) which the average man in the street would be able to buy.

*The Design's for the Volkswagen were not finalized until 1933 and the Volkswagen finally saw the light of day in 1939

*Ferdinand Porsche, in April 1934 was given the important task of designing this special car within 10 months

*Audi and Volkswagens use the same parts bin

*The Karmann Ghia was first produced in 1956 to spice up the VW product line

*Volkswagen had innovative advertising campaigns, combining witty humor with simple facts.

*Volkswagens have been produced in Germany, Mexico, Brazil, and the USA. The US plant in Virginia closed in 1988.

*Brazil and Mexico still produce VW vehicles.

*Almost 22 million air cooled Beetles were produced before their discontinuation in 2003.

*On 24 May 2005 VW presented a Touran (it’s 100,000,000th vehicle) to the German President’s wife Eva Louise Köhler.

(sites used include, VW Fun Facts, Volkswagen Trivia, and Volkswagen-Talk.com)