Week 8 Assignment – Creating a Marketing Plan Introduction Week 8 Assignment – Creating a Marketing Plan
“Entrepreneurs must determine what to sell, to whom and how often, on what terms and at what price, and how to get the product or service to the customer. In short, a marketing plan identifies a company’s target customers and describes how it will attract and keep them. The process does not have to be complex.” (1).
With this assignment, you will address some of the basic areas within a marketing plan and help to refine your strategies for creating a successful business.
Using the business from the assignment, Feasibility Analysis, write a 3 page paper in which you:
Identify its primary target market. Explain your response.
Specify three methods you will use to research customer needs and wants.
Describe the marketing mix: a) product, b) pricing strategy, c) promotion, and d) placement or distribution.
Create a one-year advertising budget and plan that incorporate the use of various advertising media and publicity.
Include at least two references outside the textbook. For help with research, writing, and citation, access the Strayer Library or review Bachelor of Business Administration Library Guide.
The specific course learning outcome associated with this assignment is:
Create a marketing plan to help a business effectively promote its products and services.
Norman M. Scarborough. 2015. Entrepreneurship and Effective Small Business Management. p. 274. FEASIBILITY ANALYSIS 2
Small Business Management
As an entrepreneur the starting point of doing business is coming up with a concept, and one of the most difficult things is putting that idea into action and turning it into a sustainable business. A profitable business needs much more than a fantastic idea, and after that idea has been established, the next stage is to conduct a feasibility analysis. This is crucial and among the most essential stages in starting a business. A feasibility analysis, according to our textbook, is an opportunity given to all entrepreneurs to act as eyes openers, by ask harsh questions, and then assess whether the initial idea has to be adjusted, reoriented, or drastically revised (Norman M. Scarborough. 2015). Therefore, the feasibility analysis’ sole objective is to establish whether the proposal is worth pursuing. If the entrepreneur passes this test, he or she can proceed to the business planning stage of beginning a new business. the intention of this essay is to analyse and evaluate my idea of opening MI&U Beauty Company by analysing different aspect of feasibility analysis.
Beauty industry is a flourishing industry I had thought through my idea and found out there is a market gap. However, the biggest question that I face in the daily basis is. Do I have the capacity and capital to compete with other established companies? After I have done my complete research, I found out a need to adjust some tactics by applying feasibility analysis as a too of investigating on the overall marketing, sales and profit analyses of my proposed business.
Industry and marketing feasibility
According to Scarborough, (2015) men and women have turned into fashion and beauty industry. People are spending their fortune to ensure they look nice, classy and good. This luxurious mind set have made beauty industry a turning point of every entrepreneur. According to analysis made by US Cosmetics Industry. (n.d.) it is estimated that the cosmetic market is worth 62.46 billion with the highest contributors being Women who spend roughly $313 per month on beauty products. Due to high rate of growth from the previous years there is a prove of high disposable income. Therefore, there is a need to develop well sustainable, affordable and reliable makeup industry to keep up with this demand.
Product of service feasibility
The main idea of conducting a product feasibility it researches on who are my potential customers, evidence of demand for my product and the desirability of my idea. When I was looking for a gap in the beauty industry, I had to research more about which product are not common and which market line I will focus on. I come up with one main product category that I will major in that is natural make-up products.
My main idea was to provide all-natural product for both genders. From my research many people around the globe have been posting how some cosmetic which contain chemicals have affected their skin. Being one of the victims I have made up my mind to use natural products which will support a healthy lifestyle and a comfortable skin. Therefore, my main aim is to ensure both men and women are comfortable with my beauty product with ought any fear of health complications. I believe that with all of this in place, I will be able to make a successful launch to the millennial demographic that I am attempting to attract to my company.
A financial feasibility study concentrates on the research’s financial components. It evaluates a proposed venture’s economic viability by analyzing launch costs, operational expenses, cash flow, and forecasting future performance. I’ve decided to use cost-plus pricing for my products. The simplicity of the cost-plus. Cost-plus pricing is a method in which the selling price is set by evaluating all variable costs a company incurs and adding a markup percentage to establish the price (Feasibility Analysis (n.d). This pricing system is its greatest advantage. Because I’ll be selling luxury goods and my target market is general population, I believe this is the greatest way to maximize the profit out of each product sold. I’ll also use the price skimming method, which involves charging relatively high rates for new luxury products once they initially come out, then gradually lowering the price over time. This will result in the greatest revenue in the end, and by having a huge range of the most recent cosmetics, I will be capable of charging a premium price for the new things and then lower prices as the products has become more common.
Entrepreneurial readiness is the general aspect of the readiness of running a business by considering the needed skills and knowledge to start and run a business (Cornwall, 2015). Additionally, an entrepreneur should also be ready to endure all the risk involve in the business. Entrepreneurship may not be for everyone, because there are no certainties since there is no way to avoid all risks when beginning a firm on your own. Being a successful entrepreneur necessitates a unique individual with a strong commitment and certain skills. As for me, I am certain I qualify in this category. However, I believe gaining more support from other perspective entrepreneurs or working under other company like the way I am planning to do my business through organizations like amazon will give me an added advantage and a better position in the business field.
In conclusion having analyzed all the aspects of feasibility I have come in to a conclusion that MI&U company is a promising idea. However, the only change needed is to adjust the initial capital needed because it needs high level of marketing and product promotion. I also have a strong feeling that I am ready as an entrepreneur and am prepared to cope with the risks involved in my business.
Cornwall, J.R., (2015) Entrepreneurship and Effective Small Business Management, 11th ed., Pearson
Feasibility Analysis 2. A Sample Feasibility Study. Pet Elan. (n.d.). Retrieved from website: http://highered.mheducation.com/olc2/dl/819112/Feasibility_Study_Pet_Elan.pdf
Norman M. Scarborough. 2015. Entrepreneurship and Effective Small Business Management. p. 237.
US cosmetics industry 2021-2024. US Cosmetics Industry. (n.d.). Retrieved November 10, 2021, from https://www.reportlinker.com/report-summary/Cosmetics/157836/US-Cosmetics-Industry.html.
Scarborough, N. M. (2015). Entrepreneurship and Effective Small Business Management, 11th Edition. [Strayer University Bookshelf]. Retrieved from https://strayer.vitalsource.com/#/books/9780133745368/