Sample Maketing Plan

SAMPLE MARKETING PLAN | NAURALLY BEAUTIFUL
1
Marketing
Plan for
Naturally
Beautiful
Sneha Lundia

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Table of Contents
I. Executive Summary ............................................................................................................3
II. Situation Analysis................................................................................................................3
MarketDescription...........................................................................................................................................................3
Distribution Network......................................................................................................................................................4
Product Analysis................................................................................................................................................................5
Competitor Analysis.........................................................................................................................................................6
Macro Environmental Analysis.................................................................................................................................7
Financial Analysis..............................................................................................................................................................8
Strengths, Weaknesses, Opportunities andThreat Analysis...................................................................8
III. Goals.......................................................................................................................................9
Increase Sales Revenue..................................................................................................................................................9
BrandManagement..........................................................................................................................................................9
IV. Marketing Strategy ...........................................................................................................10
Product Strategy..............................................................................................................................................................10
Promotional Strategy...................................................................................................................................................10
Pricing...................................................................................................................................................................................10
Positioning..........................................................................................................................................................................10
Marketing Research......................................................................................................................................................11
V. Tactical Programs.............................................................................................................11
Engage Target Audience at key touch points.................................................................................................11
Encourage Repeat Purchases fromExistingCustomers..........................................................................11
Increase Average OrderValue from within the cart..................................................................................11
VI. Implementation.................................................................................................................11
First Year (2016).............................................................................................................................................................12
Second Year (2017).......................................................................................................................................................12
Third year (2018)...........................................................................................................................................................12
Forth Year (2019)...........................................................................................................................................................12
Fifth Year (2020).............................................................................................................................................................12
VII. Budget..................................................................................................................................12
VIII.Controls...............................................................................................................................13
References ..................................................................................................................................14

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I. Executive Summary
Naturally Beautiful is a cosmetic company, specializing in creating organic skin care
cosmetic products. It was founded in 2010 by an entrepreneur who has 35+ years of experience
working in the cosmetics industry. The company initially started with developing products like
Face Wash, Toner, Face Moisturizer, Facial Pack, Body Wash, and Body Oil. After being accepted
in the market, just one year back in 2015, Naturally Beautiful launched skincare make-up
products too.
With increase in buying capability, rising concerns for health safety, growing consumer
awareness about the hazards caused by synthetic chemicals, and increasing green
consciousness the demand for organic cosmetics is on a rise. Widened distribution channels
and new product developments also contribute to the growth in the market. Naturally Beautiful
will be positioned as an “Organic Beauty Product” indicating that the brand offers enriching
beauty products at a competitive cost. As the company name suggests, it manufactures
cosmetic products, which keep the skin healthy. All the ingredients used to make the product
are organic.
Naturally Beautiful is taking advantage of its existing experience and brand equity
among its loyal current customer base of women who use its products. The company will target
similar women who are conscious about their skin health and believe in looking good naturally.
The primary marketing objective is to capture approximately 9% of organic cosmetics market in
US within the next five years, increasing the company’s annual sale to nearly $110 million.
II. Situation Analysis
MarketDescription
The skin care cosmetics market consists of many different types of products. Varieties of
cosmetics include chemical based, mineral based, nature based – contains 95% of natural
ingredients and organic – 100% natural.
Most consumers have different perceptions about different brands. They are drawn to
specific product features and benefits provided by different brands. For example, consumers
perceive that organic products are beneficial for the skin. Some may look for cosmetics as a
utility product while others may find it a luxury. Product selection could be based on brand,
ingredients, fragrance, or utility. The cosmetics industry as a whole has positioned products into
various categories like skincare, hair care, make-up, perfumes, oral care, and hygiene products.
Cosmetic brands also distinguish themselves by size and type of product. Naturally
Beautiful’s market consists of consumers looking for travel size and regular size natural
products. “Natural” in this context means no artificial fragrance or color. This market includes
traditional cosmetic users who are conscious about product composition. Specific segments

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that Naturally Beautiful will target include, the skin heath conscious, the socially responsible,
teen girls, and adult women. Naturally Beautiful has established a strong base of customers,
primarily among skin health conscious individuals. Below is how Naturally Beautiful addresses
the need of targeted consumer segments.
Targeted Segment Customer Need Corresponding
Features/Benefits
Skin Heath Conscious  Avoid harmful chemicals and
additives
 Desire to have a healthier
skin
 All natural ingredients
 Lead, Parabens and Mineral
oil free
Socially Conscious  Support causes that help
solve world’s social
problems
 20-cent donation from each
purchase to The Skin Cancer
Foundation
Teens  Prevent skin problems like
acne during puberty
 Try variety of cosmetics
 Different products for
different skin types
 Variety in terms for flavors,
fragrances and colors
Adult Women  Natural look
 Daily use
 Fight skin problems like
aging
 Maximum variety of nude
shades
 Can be used daily without
harming skin
 Prevents aging of skin
naturally
Distribution Network
Naturally Beautiful will be distributed through an independent distributor to a network of
retailers in the United States. This strategy will avoid some of the head-on competition with a
few brands in the luxury naturals market that rely heavily on distribution through specialty
retail stores, boutiques, and spas. The focus will be placing products in retail stores known for
selling organic products. These retailers include:
 Health and natural food stores: Retail Stores like Whole Foods, Safeway etc.
 Mass Outlets: Mass outlets offer ample shelf space to private label products
 Beauty Salons: Various local beauty salons
 Pharmacies and Drug Stores: Chains such as Walgreens, CVS etc.
As the brand gains acceptance, channel will expand into direct marketing via e-commerce
platforms, specialty stores, and unique locations relevant to the target customer segment (Ewa
Grigar, 2013).

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ProductAnalysis
Product features are:
 All Natural – no artificial color, or fragrance
 Lead, Parabens and Mineral oil free
 No Animal Testing
 Formulated to enhance skin health
 Twenty cents from each purchase will be donated to The Skin Cancer Foundation, a non-
profit organization with the mission to educate, prevent and treat the world’s most
common cancer.
The various product categories offered by Naturally Beautiful are:
Skin Care Products
 Face Wash
o Four skin types – very dry, dry, combination and oily
o Sizes: Travel size (2 oz.) and Regular size (8.4 oz.)
 Face Pack
o Categorized based on utility – Anti-ageing and Skin Lightning
o Size: 3.85 oz.
 Face Moisturizer:
o Categorized based on time of use – Daytime with SPF and night lotion
o Size: 1.5 oz.
 Toner
o Common for all skin types
o Size: 8.4 oz.
 Body Wash
o Available in various flavors based on content – Olive Oil, Argon Oil, Strawberry
and Honey
o Size: Travel size (2 oz.) and Regular size (8.4 oz.)
 Body Oil
o Categorized based on type of oil – Coconut and Olive
o Size: 3.3 oz.
Color Cosmetic Products
 BB Cream
o Three shades (light, medium and dark) to moisturize skin while acting as a base
for makeup
o Size: 1.5 oz.

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 Lip Balm
o Tinted shades – Nude, Rose, Cherry, Grapefruit, Sweet Violet
o Size: 0.15 oz.
 Lipstick
o Shades – Nude, Plum, Brown, Red, Pink, Blush
o Size: 0.15 oz.
 Eye and Cheek Pallet
o One pallet containing nude shades for eye and cheek makeup to give a natural
look
 Eye Pencil
o Shades – Black, Blue, Green, Brown
o Size: 0.01 oz.
CompetitorAnalysis
The beauty industry is highly competitive and, at times, subject to rapidly changing
consumer preferences and industry trends. A wide range of skincare cosmetics products are
offered by various brands like Avon, Bobbi Brown, Chanel, Clarins, Clinique, Estée Lauder,
L’Oréal, Lancôme, M.A.C., Maybelline, Neutrogena, Shiseido and Smashbox.
Pricing for organic cosmetics is higher than traditional chemical based cosmetics.
Cosmetics sold in specialty locations cost more than those sold in retail stores. Key competitors
to Naturally Beautiful include the following:
 The Body Shop: Founded in 1976, it is a British cosmetics and skincare company
owned by L’Oréal. It currently offers 1,200 products, which sells in 2,500 franchised
stores in 61 countries. It employees direct marking strategy through franchise retail
stores and online e-commerce stores. The Body Shop exceeds $950 million in
annual sales, with approximately 11.5 % coming from North America (L’Oréal, 2016).
 Aveeno: Skin care and hair care manufacturer in United States and a subsidiary of
American consumer goods and pharmaceutical company Johnson & Johnson. They
have categorized their products as for body, face, hair, sun and baby. Currently they
produce only skincare products and have not entered the color cosmetics market.
They employee retail store distribution channel.
 Origins: Founded in 1990 by Leonard Lauder, son of Estée Lauder, it is one of the
original brands of The Estée Lauder Companies. With 25 years the brand now has
approximately 2,000 stores. They harness the power of trees to create high
performance skincare. They have worked with organizations like Global ReLeaf to
plant trees around the world (Origins, n.d.).
 Kiehl’s: Kiehl's is an American cosmetics brand retailer that specializes in premium
skin, hair, and body care products. Kiehl's was founded in 1851 and purchased by

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the L'Oréal Group in 2000. It has more than 250 retail stores worldwide, and over
1,000 points of sale supplemented by sales in high-end department stores, select
airport locations, as well as independent stockists.
 bareMinerals: Subsidiary of Bare Escentuals, this brand includes its core mineral
based foundation products and a wide variety of eye, face and cheek products (Bare
Escentuals Inc. ,2009)
 RareMinerals: Another subsidiary of Bare Escentuals, represents an innovative
extension of the brand’s mineral-based expertise into the skin care category and
offers women a natural, mineral-based alternative to traditional skin care products.
The RareMinerals line currently includes a facial cleanser, facial mist, moisturizer,
nighttime skin treatment and an acne treatment product (Bare Escentuals Inc.
,2009).
Despite the strong competition, Naturally Beautiful believes that it can create a relevant
brand image and gain recognition among the targeted segments. The company competes
on the basis of product differentiation, sales and marketing strategy and its distribution
model. In addition innovative product formulation and differentiated product concepts,
expertise within the organic cosmetics category, loyal consumer base, and focused
marketing and distribution expertise provides the company with competitive advantages in
the market for organic cosmetics.
Macro EnvironmentalAnalysis
Political
 Industry-specific rules and regulations
 The relationship between USA and the countries from which raw material is sourced
Economic
 Buying power of consumer
 Local economic environment within each market
Social
 Changing family patterns in USA
 Consumer preferences
 Changes in lifestyle in population
 Changing values among population
Technological
 Emergence of innovative technology

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 Biotechnological development
Environmental
 Environmental rules and regulations
 Environmental disasters in countries producing various raw materials
 Global warming and other environmental issues at a global level
Legal
 Introduction of policies by health authorities about animal testing
 Introduction of tougher customs and trade regulations
 Licensing regulations relating to industry
(Academia, n.d.)
FinancialAnalysis
The cosmetic market is estimated to reach $675 billion by 2020 growing at 6.4%, with
skin care products having the highest market share (Business Wire, 2015). The color cosmetics
market is estimated to be valued at $77.7 billion, by 2020 (Statista, n.d.). With increase in
awareness, rise in consumer income and lifestyle changes the organic cosmetics market is
growing steadily. It is predicted that the global demand for organic personal care products will
reach $13.2 billion by 2018. North America accounts for roughly 35% of the global demand for
organic cosmetics (Michelle Yeomans, 2013).
Strengths,Weaknesses, Opportunities and ThreatAnalysis
Naturally Beautiful has several powerful strengths on which to build, but its major
weakness is limited budget for promotional activities. Major opportunities include a growing
market and consumer trends targeted by Naturally Beautiful’s product traits. Threats include
barrier to entry posed by limited retail space.
Strengths
1. Superior Quality: Naturally Beautiful boasts the best quality skin care products with
100% natural ingredients. It has no artificial fragrance or color to its products.
2. Industry Experience: The founder of the company has 35+ years of industry experience
making him an expert in understanding the needs of the consumer and building
products accordingly.
3. Expertise in alternative skincare product marketing: Naturally Beautiful went from
nothing to a rapidly growing successful skincare brand with fiercely loyal customers in a
matter of only five years. This success was achieved by staring small and focusing on the
gaps in the marketplace.

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4. Social Responsibility: Every customer will have the added benefit of helping skin cancer
affected patients throughout the world. Although the price of Naturally Beautiful
products are in line with its competitors, low promotional costs allow for substantial
charitable donation of 20 cents per purchase while maintaining profitability.
Weaknesses
1. Limited Budget: Being a small company Naturally Beautiful has much smaller funds
available for research and promotion.
2. Limited Partnership: Limited partnership and not a very strong relationship with all retail
stores.
Opportunities
1. Growing Market: The global organic cosmetics market is growing at CAGR of 9.6 per
cent (Michelle Yeomans, 2013).
2. Increased Awareness: With increasing buying capabilities and awareness consumers are
spending more on organic products as opposed to traditional chemical based cosmetics.
3. Loyal Customers: The consumers of cosmetic products tend to stay loyal to a brand that
enriches their skin.
Threats
1. Limited Shelf Space: Retail stores offer limited shelf space since the number of
competitor products in the same category is high.
2. Strong Competitors: Competitors like The Body Shop, Bare Escentuals etc. have a
stronger brand name
(Jim Makos, 2014)
III. Goals
Naturally Beautiful has well defined aggressive but achievable goals.
IncreaseSales Revenue
One of the most important goals of marketing for-profit entities is driving business and
increasing sales of the organization. Naturally Beautiful aims to achieve a 9% market share of
the growing organic cosmetics market or approximately reach $110 million in annual sales
within 5 years.
BrandManagement
Maintain a place in the minds of existing customers and create one in the minds of
prospective customers.

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(Mason Kaho, n.d.)
IV. Marketing Strategy
Naturally Beautiful’s marketing strategy will involve developing a “look beautiful
naturally” positioning based on extra benefits for the price. The brand will also establish
channel differentiation, as it will be available in locations where major competing brands are
not available. The primary target segment is Women in the age group of 15-60.
ProductStrategy
Naturally Beautiful products will be sold will all features described in Product Analysis
section. As awareness takes hold and retail availability increases, more product lines will be
introduced. Hair care products will be added to the product line. All aspects of the marketing
mix will be consistent with the brand.
PromotionalStrategy
Based on the information presented in the Distribution Network section, Naturally
Beautiful will employ a selective distribution strategy with well-known retail stores, health and
natural departmental stores and pharmaceutical stores. This distribution strategy will be
executed through a network of independent distributors, as there are no other major brands of
organic cosmetics manufacturers following this strategy. Naturally Beautiful will also partner
with local beauty salons to use, showcase and sell its products. Later the brand will employee
direct marketing through franchise retail stores and e-commerce outlets.
Naturally Beautiful will leverage various social media platforms to create awareness. It
will conduct free skincare consulting campaigns and distribute free samples to advertise and
build brand loyalty. It will promote its products through customer testimonials.
Pricing
There is a lot of price variation between products offered by luxury brands and other
brands. Naturally Beautiful will follow customer value-based pricing strategy. Given that
Naturally Beautiful claims superior quality, it must be careful not to position itself as a lower
cost alternative. The pricing of the products will vary depending on the place. The products may
be marked at a little lower price in discounted-retail stores while they will sold at a higher cost
in salons. They will be priced higher that traditional chemical based cosmetics but lower than
luxury brand cosmetics.
Positioning
Naturally Beautiful will be positioned on an “Organic Beauty Product” value proposition.
This will allow for differentiating the brand based on product features (all organic ingredients

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with no artificial color or fragrance), desirable benefits (expect healthier more beautiful skin),
and values (do more for a social cause). Marketing will focus on conveying that Naturally
Beautiful is more than just a cosmetic brand: It gives customers much more for their money in a
variety of ways.
MarketingResearch
Naturally beautiful will monitor, online discussions to remain consistent with the online
promotional approach, and use insights to reach target customers. In this manner company will
gauge customer perceptions of the brand, the products, and general satisfaction. For future
development of the product and new distribution outlets, crowdsourcing methods will be
utilized.
(Kotler & Armstrong, 2014)
V. Tactical Programs
Engage TargetAudienceatkeytouchpoints
 Run Facebook advertising during high traffic around consumers with similar interests
 Acquire Coverage in National Fashion Magazines
 Run Online Banner Advertising on Fashion, e-commerce sites targeted at Women
between 15-60 years of age
 Create content around the shopping & lifestyle needs of targeted customers
Encourage RepeatPurchasesfromExisting Customers
 Email existing customers with referral percentage discount deals for new customers 
 Add print vouchers to all orders sent during a specific timeframe  
IncreaseAverage OrderValuefromwithin the cart
 Add attractive deals to the cart automatically (worth around 10% of transaction value)
 Increase the Free Delivery Threshold from $35 to $45
 Add gift wrapping options to the cart (with images of premium gift packaging)
 Add a free gift for purchase of $200 or more
(Charlie, 2013)
VI. Implementation
Here is the year wise action plan for reaching an annual sale of $110 million in the next
five years.

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FirstYear (2016)
Increase Naturally Beautiful’s market presence by organizing campaigns with free skin
consultation and distribution of sample products. Promote the social and health benefits of
using the products.
SecondYear(2017)
Sales team will partner with mass-distributors to gain shelf space in large retail stores.
They will encourage salons to use products of Naturally Beautiful for their clients.
Representatives will listen to suggestions from salon professionals to make improvements in
products.
Third year(2018)
Once Naturally Beautiful has a good brand presence and the loyal customer base has
increased, a new hair care product line will be introduced. This will include shampoos and
conditioners for variety of hair types like dry, frizzy, chemically treated, oily scalp, daily use,
dandruff, and hair fall. A variety of hair oil like argon oil, olive oil and coconut oil for hair will
also be added in the product portfolio.
ForthYear(2019)
Expand the distribution channel by setting up specialty stores. Skin and Hair care
consultation services will also be provided at these specialty retail stores. E-commerce platform
will be created for direct purchase from the manufacturer.
FifthYear(2020)
New weather-based products will be added to the product catalog and the annual sales
of the company will reach $110 million. Expand globally and move to growing international
markets like Asia.
VII. Budget
The marketing expense budget is approximately $90,000 for 2016. This encompasses
external marketing efforts as well as internal activities such as marketing training. Marketing
expenses will increase with increase in promotional activities. It will also be affected by inflation
for the next five years. The budget is calculated by employing percentage-of-sales method and
Objective-and-Task method. Below is the estimated sale for the next five years and promotional
budget for each year.
2015 2016 2017 2018 2019 2020

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Annual Projected Sale
in million USD
25 30 38 50 70 110
Percentage increase in
sale
20.00% 26.67% 31.58% 40.00% 57.14%
Marketing Budget as %
of Sale
3.00% 3.25% 3.50% 3.50% 4.00%
Marketing Budget in
million USD
0.9 1.235 1.75 2.45 4.4
(Mplans, n.d.)
VIII. Controls
Naturally Beautiful is planning tight control measures to closely monitor product quality,
brand awareness, brand image, and customer satisfaction. This will enable the company to
react quickly in correcting any problems that may occur. Other early warning signals that will be
monitored for signs of deviation from the plan include monthly sales (by segment and channel)
and monthly expenses. Given the market’s volatility, contingency plans are also in place to
address fast-moving environmental changes such as shifting consumer preferences, new
products, and new competition (Kotler & Armstrong, 2014).

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References
[1] Kotler & Armstrong. (2014). Principles of Marketing
[2] KnowThis.com. (2016). How to Write a Marketing Plan Tutorial. Retrieved from
http://www.knowthis.com/how-to-write-a-marketing-plan
[3] Academia. (n.d.). PESTLE Analysis of USA. Retrieved from
http://www.academia.edu/7121048/PESTLE_Analysis_of_USA
[4] Ewa Grigar. (2013). Green Future: Natural Cosmetics Market in the United States in the
United States. Retrieved from
http://www.klinegroup.com/reports/Naturals_Berlin_Kline_%20Sep_2013.pdf
[5] Statista. (n.d.) Value of the color cosmetics market worldwide in 2014 and 2020 (in
billion U.S. dollars). Retrieved from http://www.statista.com/statistics/538169/global-
color-cosmetics-market-value/
[6] Business Wire. (2015). Research and Markets: Global Cosmetics Market 2015-2020:
Market was $460 Billion in 2014 and is Estimated to Reach $675 Billion by 2020.
Retrieved from
http://www.businesswire.com/news/home/20150727005524/en/Research-Markets-
Global-Cosmetics-Market-2015-2020-Market
[7] Michelle Yeomans. (2013). Global organic cosmetics market to reach $13.2 billion by
2018. Retrieved from http://www.cosmeticsdesign-europe.com/Market-
Trends/Global-organic-cosmetics-market-to-reach-13.2-billion-by-2018
[8] L’Oréal. (2016). THE BODY SHOP. Retrieved from http://www.loreal-
finance.com/eng/brands/the-body-shop
[9] Origins. (n.d.). The Origins of Origins. Retrieved from http://www.origins.com/our-
history
[10] Bare Escentuals Inc. (2009). Annual report. Retrieved from
http://www.annualreports.com/HostedData/AnnualReports/PDF/bare2008.pdf
[11] Jim Makos. (2014). SWOT Analysis Examples for Every Business Situation. Retrieved
from http://pestleanalysis.com/swot-analysis-examples/
[12] Mason Kaho. (n.d.). Examples of Marketing Objectives. Retrieved from
http://smallbusiness.chron.com/examples-marketing-objectives-20231.html
[13] Charlie. (2013). Marketing Strategy vs. Tactics – Explaining the Difference. Retrieved
from http://charliesaidthat.com/digital/digital/difference-between-marketing-strategy-
vs-tactics-an-example/
[14] Mplans. (n.d.). Restaurant Marketing Plan. Retrieved from
http://www.mplans.com/restaurant_marketing_plan/critical_numbers_fc.php

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[15] The Body Shop. (n.d.). About The Body Shop. Retrieved from http://www.thebodyshop-
usa.com/about-us/about_thebodyshop.aspx
[16] Aveeno. (n.d.). About Aveeno. Retrieved from http://www.aveeno.com/category/our-
mission.do
[17] bareMinerals. (n.d.). BARE ESCENTUALS STORY. Retrieved from
http://www.bareescentuals.com/on/demandware.store/Sites-BareEscentuals-
Site/en_US/Landing-Show?cid=CA_BM_OURSTORY
[18] Kiehl’s. (n.d.). The World of Kiehl’s. Retrieved from http://www.kiehls.com/heritage

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