Below is a full marketing plan example for a cordless hair dryer by the name of Kordess.
Kordess has developed a new, eco-friendly cordless hair dryer called Kordess Hura. With the beauty industry on a steady rise, eco-friendliness is driving the market faster than any other factor. Hura will be positioned by “freedom for all women” and eco-friendly solutions for busy, on the go women with features, attributes and benefits that are appealing to the women who look for quality in a product. Hura, which translates to free woman, reinforces the notion that Kordess puts its consumers first. By taking a luxury standpoint, we offer a competitive price compared to existing companies that sell corded hair dryers.
Kordess’ initial objective is to have $2 million in sales at the end of the first fiscal year in Ohio. By the end of the second year, we look forward to doubling our total sales. We believe that in this competitive market, building a relationship with our consumers and winning their loyalty is the most effective method for sales. By using street teams and a heavy interactive online and offline presence, we can achieve this goal quickly and efficiently.
Current Marketing Situation
The target market of Kordess includes women with annual incomes ranging from $40,000-$100,000 living in urban and suburban areas of Ohio. These women are college-educated and working women who are frequently on the go. They are environmentally conscious or are gaining an interest in becoming environmentally conscious. She uses a hair dryer as often as daily, to as seldom as once every two weeks. Our ideal consumer wants to contribute to reducing the carbon footprint. We know the majority of our target market, millennials, are more inclined to buy from companies that give back to the environment (Elkan, 2018, p.15). She, the consumer, is more likely to purchase green products because she wants to contribute to a greater cause.
Figure A1 in appendix A, shows populations of college graduates. We will target women in the green, blue and gold areas. Research shows individuals with a college education are more likely to participate in green purchasing (Elkan, 2018, p.17).
The cordless feature sets Kordess apart from the competition. This feature allows the consumer to use the product anywhere. Hura also includes a diffuser attachment, which dries curly hair without causing frizz. Hura’s slim concentrated nozzle allows stronger air pressure in concentrated areas. A comb attachment is included for straight and voluminous hair. Settings range from hot to cool; a cool shot button is included. The rechargeable battery allows 45 minutes of continual use. A built-in immersion protection device protects consumers from electric shock. The AC motor provides a longer product life, more powerful airflow and a reduction in noise.
The first benefit of using Hura by Kordess is healthy and strong hair that will have women feeling their best during the next leadership meeting or conference. The second benefit is using an environmentally friendly product that reduces carbon emissions, creating a safer planet for their children.
Effective color manipulation allows shoppers to easily identify the brand when surrounded by other products (Kumar, 2017, p. 7). Hura’s pearl white represents cleanliness and purity for a clean environment. Mint green and gold are also incorporated. Green signifies the earth and eco-friendliness; gold signifies that Kordess is a dependable brand promising a healthy mane. With 100% recyclable packaging, the box displays the primary color palette. Images of the cordless hair dryer and attachments are also revealed, as well as the eco-friendly symbol. “KORDESS” stretches across the package in black, to offset the white and catch the attention of consumers. “Hura” is sure to stand out in 3D gold foil, calligraphy text. A brief history of Kordess and our promise to the consumer is also included. Images of the product can be found in Appendix B.
At the high-end price of the competition, the Dyson Supersonic hair dryer retails for $399, is offered in various colors and is engineered to prevent “extreme” heat damage. At the low-end price, the Harry Josh Pro Tools Pro Dyer 2000 retails for $249 and features a dual filtration system that reduces energy consumption.
Kordess finds it extremely important to offer all the basics of a hair dryer – and more. To set us apart, our batteries will have a longer life, providing a strong flow of heat for a more extended period. That technology, paired with attachments available for any hair type, will allow women to dry and style simultaneously. And unlike the competitors, Kordess will practice caring capitalism and set ourselves apart by satisfying the needs of environmentalists, those encouraged to protect and improve our environment (Kotler & Armstrong, 2017).
Channels and Logistics Review
Kordess will take a selective shopping distribution approach using a wholesaler to sell Hura. Kordess will sell its products directly to consumers online and in four traditional beauty-based brick and mortar stores around Ohio. Hura will be sold through Amazon, Target, Ulta Beauty, and Sephora, all listed on the Fortune 500 list.Placing Hura in these dominating beauty stores will ensure that Hura will have a successful launch. Women who purchase from these retailers contribute to the $56.4 billion market in the United States, which calls for a very profitable future in Kordess if released into these storefronts.
In exchange for consumers buying from us, they can expect healthier hair alternatives that also benefit the earth. The younger age group of our target market, ages 22-35, are 11% more likely to visit an Ulta than any other consumer population. Studies show 60% of millennials shop online. Of those millennials, 64% of the online shoppers make most of their purchases on Amazon. Kordess believes in ease of accessibility for our target market; reaching this audience online is beneficial to the consumer and us.
Strengths, Weaknesses, Opportunities, Threat Analysis
- High quality and brand recognition: Kordess is well-known for its high quality. Hura’s quality is greater than other cordless hair dryers, offering the only luxury cordless dryer.
- Eco-friendly: This energy-saving solution to healthy hair is an excellent option for women seeking a healthier environment.
- Cordless feature: The cordless feature allows women to have dry hair without being confined to the space around an electrical outlet.
- Faster drying time: With ceramic, ionic technology, women will have more leisure time.
- Various attachments included: By including multiple attachments, such as the diffuser and comb attachment, women who use Hura will have beautiful hair, no matter the hair type.
- Substantial budget: A thoughtful strategy has been planned and supported by senior leaders of Kordess to allow for a significant budget.
- New product: We can assume that consumers will want the product, but there could be a chance that there is little demand.
- The number of hair dryer users in the United States is increasing and the global hair dryer market is expected to grow by an estimated 5% during 2018-2022 (Technavio Research, 2019).
- Competition: With many hair dryers on the market, competition can pose as a threat. Our competition consists of cordless and corded hair dryers.
- Unfamiliar feature: Since the cordless feature is a new concept, consumers may not feel the need to have a cordless dryer.
Political, Economic, Social, and Technology Analysis
Hand-held hair dryers must incorporate integral immersion protectors to protect consumers against electric shock; however, certification and testing are not needed (“Hand-Supported Hair Dryers Business Guidance,” n.d. para. 3). A convenience for airplane travelers, lithium batteries are allowed in carry-on luggage, so women can take their Hura hair dryers with them on vacation and work trips.
In the United States, 19 million hair dryers were purchased in 2018, through retail channels (Shahbandeh, 2019, p. 1). Households in Ohio have a median annual income of $52,000 (“Retail Sales of Hair Dryers,” n.d.).
As households become more aware of energy efficiencies, battery-operated appliances will be more desired. The percent of women with children under age 18 that are working or either looking for work was 71.5 percent in 2018 (U.S. Department of Labor, 2019, p.2). This data shows a need for time-savers and conveniences.
Infrared technology dries hair from the inside out, using longer energy wavelengths; this is a benefit for all hair types, especially to fine or dry hair (Guglielmetti, 2016).
Objectives and Issues
Kordess has proposed a logical, achievable goal for the first two years on the market.
First Year Objectives
By the end of the first fiscal year, Kordess hopes to achieve $2 million in sales across Ohio and online. This $2 million goal takes into consideration Hura’s retail price of $299 and is equivalent to 6,688 dryers.
Second Year Objectives
The price of the Hura is reduced by 10 percent at the beginning of the second year. Demand will increase, and our second-year objective is to double sales across Ohio.
With Hura being a new product in the market, the most relevant issue is creating awareness. By utilizing street teams and social media, Kordess will grow our presence and build trusted relationships with our target market better than ever.
Kordess strives for a 90-percent-awareness level for the Hura cordless hair dryer during the 12-month introductory period. (In the second year of sales, we’d like to achieve a market share of equal to or greater than 75 percent.)
For the busy, on-the-go woman looking for a hair drying product for her individualized needs, Kordess offers an economically friendly solution in a cordless dryer that meets the needs of all women, no matter their hair type. Kordess delivers a sleek and luxurious portable hair dryer for consumers. Our rechargeable hair dryer offers women the possibility to dry their hair anywhere they would like, and the ability to use in foreign countries with differing electric socket types.
Kordess does not believe that product design is enough. We are strongly committed to the preservation of our environment, helping to give women and our world freedom from the negative impacts of pollution and wasted energy.
As referenced in the product review, Kordess will sell Hura with three attachments. As Kordess gains a reputable brand amongst consumers, a cordless flat iron will be available for purchase, which will increase sales for Hura. Similar to Hura, the flat iron will also be eco-friendly.
Market-skimming pricing will be the most effective pricing strategy for this new product. Psychological pricing, in which consumers use price to judge quality (Kumar, 2017), will be the price adjustment strategy. The retail price of a Hura is $299. Hura’s price will drop 10% six months after launch, down to $269, which will increase demand.
Kordess will employ an exclusive distribution approach; this allows customer loyalty for the Kordess brand and loyalty for the retailers. Selling Hura on Amazon, in Target, Sephora and Ulta allow accessibility to our target market as they are frequent shoppers of these retailers.
Marketing Communication Strategy
The average target consumer of Kordess utilizes the internet consistently. Therefore, Kordess will take advantage of social media and mobile marketing to attract consumers. Through informative advertising, messaging will reveal Hura’s value, product features, and a luxurious brand image. Influencers will be utilized via YouTube and Instagram and offer personalized coupons for Hura in their videos or posts, using #WhyHura.
Kordess will also create a blog titled “I am Hura,” which will include tips on living a minimalist, sustainable, and eco-friendly life. Kordess will create ads on Facebook, Twitter, and Instagram. When clicked, the ads open to a page of Kordess content consisting of photos, videos of employees in Kordess transit vans, options to follow Kordess on social media, and information about the product.
Coupons will be included in weekly store ads where Hura can be purchased and in ad inserts mailed to consumers’ homes. Target, Sephora and Ulta Beauty’s mobile apps will also include coupons.
Store signage will include captivating images of women with different hair textures using the dryer. Interactive displays will be stationed in top-performing stores in Ohio’s five largest cities and consist of touch screens that encourage customer interaction.
Street teams in Kordess transit vans will attract consumers in heavily populated areas such as colleges, malls and downtown areas. These teams will interact with potential customers offering demonstrations, discounts and freebies.
Kordess will monitor conversations online about the Kordess brand to gain an idea of customers’ perceptions of the product. Because women of our target audience use the internet daily, it is essential to watch these online interactions closely. When creating new products, Kordess will conduct primary market research to understand what our target market is looking for in cordless heating tools. Focus group interviews across Ohio will be the main way of collecting primary data.
January: Kordess representatives will speak with distributors and retailers about the distribution of Hura. We will discuss in-store advertising and begin creating relationships with influencers.
February: Finalization of distribution plan and budgeting. Kordess will begin to create social awareness through social accounts and blogs.
March: Hiring of street teams and training for product, company beliefs, and team building.
April: Influencers will begin introducing audiences to Hura by Kordess and generating buzz around the #WhyHura social media campaign. Interactive ads will be released on social sites.
May: Official launch of Hura in stores and online.
June: Street teams will travel throughout Columbus, Cleveland, Cincinnati, Toledo and Akron. Street teams will visit populated areas such as malls, college campuses, downtown areas and store locations, giving prizes, product demonstrations, discounts and Kordess gear.
Kordess will use the objective-and-task method, the method in which the budget is set based on what we want to accomplish with promotion (Kotler & Armstrong, 2017). The budget will be higher in the introduction phase in order to build awareness. The proposed promotion budget is $712,500.
Kordess will closely monitor Hura sales, tracking by city and by retailer. By acknowledging these measures, Kordess will have the ability to focus on high-performing stores and cities, having products available to meet the high demand. We will also monitor social media sites for consumer reactions and engagement regarding the product and brand image. If issues arise, we have a communication plan in place for potential intervention.