Silmon_Charlesa_Unit5_AssignmentGB530

Unit 5 1 Unit 5 Assignment-Adams Components Charlesa Silmon Purdue Global University GB530-02: Marketing Management Professor Samantha Bietsch December 11, 2023

Unit 5 2 1.0 Executive Summary Adams Components is a newly developed brand name men’s natural intimate wash. Adams Components is a brand line extension of Summer’s Eve intimate wash. This brand was designed and formulated as of November 5, 2023. We are focused on creating healthy hygiene products for men. We will start our journey with our first product called Adams Components intimate natural wash. Adams Components intimate wash is formulated with natural ingredients. The product will remain paraben-free and sulfate-free. This product is designed for men and particularly their intimate areas. The product will contain natural ingredients such as tea tree oil, aloe vera, chamomile, witch hazel, and calendula. These ingredients are all natural and will help to keep healthy hygiene within the intimate area. The product will benefit men and their personal hygiene. An intimate wash will help to maintain a healthy PH balance. Men also have a PH balance which should be maintained healthy. The product will also help men be less prone to infections and diseases when used appropriately. The target market of this product will include all men from the age range of 18-65 within the United States. We chose this age range because typically men within this age range care for grooming. Men nationally and internationally will be included also within this target audience once Adams Components decides to expand globally. Adams Components is a company that considers its customers needs. We will provide great customer service to our customers. Providing not only a high value product is needed, but also a product that is affordable for customers. We will host events, focus groups, and etc. to make sure we are up to date with our customers and the market. Adams Components will make its customers not only feel better about their hygiene, but also give them a refreshing feeling. This intimate wash will also be budget friendly to our customers, so customers will not have to worry about excessive costs. This brand is also an extended brand line from our well-known parent company Summer’s Eve. Summer’s Eve has been around for quite some time so customers should feel that this product is of quality. Also, all ingredients that will be used in this intimate wash will be natural, so customers should feel safe using this wash in their intimate areas. Adam’s Components promises to provide new and improved products. Adams Components will be marketing on both a national and international level. We are marketing to all men. Marketing through social media, surveys, and research studies will also be conducted. We will first start off marketing domestically, but then gradually market globally if there is success within the domestic market. When marketing globally, we will make sure to assess all cultures and any language barriers. To show the proper understanding of different cultures we will conduct the proper research to assess the different cultures and any language barriers as well.

Unit 5 4 o A male who pays special attention to his appearance. o A male who pays special attention to his social perception. o The psychographics within this target market will focus on men who want to feel and smell good. Men who particularly focus on their health and hygiene. Men who pay special attention to bettering themselves.   2.1.2 Market Needs Adams Components truly seeks to understand its customers and provide the best product for its customers. o Providing top tier customer service will be needed to maintain customers. o Providing an effective product at a fair price to maintain consumers. Customers do not always want to spend lots of money on products. This product will not only be effective, but it will also be maintained at a reasonable price for consumers. o Providing a product that is of quality. Consumers want to be able to purchase a product of quality. 2.1.3 Market Trends o According to Kotler (2016), a fad is short-lived and unpredictable, while a trend is more long-term and predictable. o A current trend that is on the rise is having products that are all natural. Adam’s Components will be formulated with all natural ingredients. This will influence consumers to purchase Adams Components product since it will be within the trend. o Another trend currently on the rise is having products with additional benefits such as exfoliation, moisturizing, and even sun protection. Not only will Adams Components be an intimate body wash, but it will provide additional benefits such as helping men to maintain a healthy PH balance, and also less prone to infections and diseases. o Lastly, another trend that is quite popular is cruelty free products and sustainable packaging. Adams Components will be distributing its products in sustainable packaging, and again all ingredients within the body wash are all natural. This will influence consumers to purchase this product.   2.1.4 Market Growth o The market within the health and hygiene industry is tremendously growing. More men are paying more attention to their grooming. The growth trends include men caring more for beards, and health and hygiene. o According to Broeke (2023), male grooming is booming. Also, male grooming is predicted to be worth $115 billion by 2028 (Broeke, 2023). Adams Components will utilize research methods such as forecasting, surveys, customer buying

Unit 5 5 trends, and questionnaires to continuously determine the market growth rate as this market grows tremendously. o Adams Components will address the tremendously growing market by understanding its consumer’s base. By understanding customers prices can potentially be lowered, a new product can be introduced, and Adams Components could potentially expand more quickly globally. 2.2 SWOT Analysis 2.2.1 Strengths  Adams Components has a very well-known parent company Summer’s Eve.  Adams Components will be formulated with all natural ingredients.  Adams Components will have a wide variety of men that it will be to market and sell its products to. These men will be men of different races, ethnicities, and etc. 2.2.2 Weaknesses  Our parent company Summer’s Eve focused on women.  May be less popular in rural areas.  As a start-up brand line extension raising awareness to men of different age groups and making sure to market appropriately. 2.2.3 Opportunities  Creating an extended brand specifically targeted to men that will help increase awareness on men’s hygiene. This will lead to success because it will help consumers to consider Adam’s Component more likely. This will also help to differentiate our brand amongst our competitors.  Participating within a growing industry. This will potentially lead to the success of Adams Components because the health and hygiene industry continues to grow, so there will be an increase in demand for products.  The ability to conduct research market studies with different age groups. 2.2.4 Threats  Due to many businesses selling and marketing body wash Adams Component’s will have many competitors.  With changes in government regulations and policies this could cause prices of this product to increase, it could cause for the company to change how this product is formulated, and also even packaged.  Adams Components will also be formulated with natural ingredients, so with unexpected acts of nature this can limit the availability of the product. It will limit the availability of the product because it will disrupt the supply of the materials or potentially damage the facilities where the products are being produced.

Unit 5 7 infections and diseases. The natural ingredients within the body wash will be aloe vera, calendula, witch hazel, tea tree oil, and chamomile. o Adams Components will fit within the health and hygiene industry because this product is a body wash. Body washes are commonly sold within this industry. This body wash is also used for the intimate area, which is also common within the health and hygiene industry. There is an extremely good fit between this product and the health and hygiene industry, because this type of product is commonly sold within its industry. Adams Components intimate body wash will fit right in within the health and hygiene industry. 2.5 Keys to Success o This product will contain all natural ingredients which help men to be less prone to infections and diseases. So, bringing awareness to our target audience about health and hygiene will aid in the success of Adams Components. o The rising concern for healthy hygiene is current in today’s world. Bath and body products are growing by a CAGR of 4.55% ( Bath and shower products market demand & growth to 2030, n.d.). So, continuously doing marketing research within an emerging industry to ensure Adams Components will be continued to be formulated properly to provide the proper care for healthy hygiene. o Ensuring that our customers are satisfied with our product will help determine Adams Components success.   2.6 Critical Issues o Adams Components will leverage its strengths and opportunities to its advantage by improving our product or expanding our resources. This will help Adams Components separate from its competitors and shine in an such growing industry. o Adams Components will lessen the impact of its weaknesses and threats by using our strengths and opportunities to act against many of the weaknesses and threats that our product may face o Currently Adams Components is in the introductory stage of the life cycle. Although this product is a brand line extension, this is a new product from the parent company Summers Eve. The new product is being introduced into the market, and expenses may be quite heavy. When a product is being introduced into the market sales can be slow, and expenses can be heavy (Kotler, 2016). 3.0 MARKETING STRATEGY

Unit 5 8 The key to the marketing strategy is developing a product that brings awareness to men and the importance of their hygiene. Adams Components has developed a product that fits within the health and hygiene industry. This product is also formulated with all-natural ingredients. This product will be composed of all-natural ingredients and be in sustainable packaging. Although each segment is unique, this product will make sure to cater to the segments within its market. 3.1 Mission o Adams Components mission is to provide its customers with all-natural products of quality that will help men to look good, smell good, and also maintain healthy hygiene. We seek to maintain healthy hygiene for men. We seek to bring awareness of not only being clean, but also healthy hygiene. Our products will be composed of all-natural ingredients. We will go above and beyond to deliver quality products to our customers. o Adams Components is a brand line extension of the parent company Summers Eve. This brand line will be offering a product called Adams Components Intimate Body Wash. The body wash will consist of natural ingredients such as tea tree oil, chamomile, aloe vera, witch hazel, and calendula. This product will also be sulfate- free and paraben-free. This product will also be in sustainable packaging. This product will be marketed to men. o Adams Components fundamental goals will be to increase its return on investment by 10% within two years. Adams Components would like to establish a brand authority after the first year. Adams Components would like to generate high quality leads within its industry after the first year. Adams seeks to maintain its customers. Adam Components seeks to create satisfied and delighted customers. o Adams Components will not only make its customers feel clean, but also help them to realize why it is important to be clean and stay clean. 3.2 Marketing Objectives  Marketing objectives o Adams Components marketing objectives are to launch a new product, acquire new customers after launching the new product, promote its new product with avid marketing and advertising, boost the brand awareness within the first quarter, boost sales by 10% after the first quarter and to increase customer value to reduce costs by 2% of acquiring new customers by end of first quarter.  Quarterly Market share

Unit 5 10 o Within the demographics with males between the ages of 18-65, in 2022 alone $80 billion dollars were established from male grooming (Broeke, 2023). This shows how emerging the grooming industry is. Within the geographics, the product will be sold domestically. After researching statistics, it was seen that male grooming within the United States is doing quite well. Male grooming was forecasted to grow to be worth $115 billion dollars by 2028 (Broeke, 2023). With the psychographics focusing on men who pay special attention to grooming, and wanting to feel and smell good will help for Adams Components to identify its customers wants and needs. Knowing one’s customers wants and needs can potentially lead a company to its success, because this can help a company develop the right product or service (Kotler, 2016). 3.4 Positioning Adams Components will meet the needs of its target market because we will position our product to meet the needs of our customers within each segment. According to Kotler (2016), a market offering is developed with positioning in a target buyers mind as delivering some benefit(s). Adams Components contains a competitive advantage over competitors because this body wash will be composed of natural ingredients. This brand will also bring awareness to many men to sustain a healthy PH balance, so encouraging healthy hygiene amongst this brand is something that stands out with our competitors. Adams Components distinguishes itself from its competitors because this body wash is composed of all-natural ingredients. Formulating a product composed of all natural ingredients makes this body wash highly valuable. 3.5 Marketing Mix Product According to Kopp (2021), product differentiation is the key aspect(s) which distinguishes a company product(s) from its competitors. If the product differentiation is successful this will create a competitive advantage and build great brand awareness (Kopp, 2021). Adams Components stands out from its competitors because not only does this body wash bring a fresh clean feeling, but it helps to maintain a healthy PH balance within men, when used properly. This product also is composed of all natural ingredients, para-ban free, and sulfate-free. Adams Components wants to succeed with bringing awareness to men’s health, and also provide a product that will add to health and wellness. According to Palan (2021), the product value is the benefit that a customer receives by using a product to satisfy their needs. Many of Adams Components customers will receive benefits from using its body wash such as a healthy PH balance, feeling refreshed with natural ingredients, and in general feeling happy. Adams Components will have more value than its competitors because of the natural ingredients. Having a product composed of natural ingredients is quite valuable. The product design of Adam

Unit 5 11 Components will also have the competitive advantage. The quality of this product will also aid in why Adams Components will have more value than its competitors. Price Adams Components will price its product comparing it to its competitor price. Currently most of Adams Components competitors price men’s body around $10. Adams Components will price its body wash since using all natural ingredients at $12 per unit and with using reference pricing. According to Kotler (2016), reference pricing is the pricing information a customer preserves within their memory which will be later used to compare with the price of a competitor product or previously advertised price. Since Adams Components will be using reference pricing with its product this will help with saving cost. This will help to gain a competitive advantage over our competitors. It will help to gain a competitive advantage because prices will be able to be negotiated and there will be flexible pricing. Some competitors within the market have set prices, but Adams Components will use reference pricing. Place Adams Components will distribute its product through wholesalers, supermarkets, local stores, and its website. Alternative delivery methods that Adams Components will develop will be an order online and pick up in store location method. Some consumers may prefer this method to save on shipping costs which is why Adams Components will also offer this method. Adams Components will rely on an outside firm for distribution. Currently Adams Components parent company Summers Eve uses an outside firm to distribute its products. Choosing an outside firm will not only make the job easier for Adams Components, but it will potentially also create more profit. Adams Components will be able to see if relying on outside firm will create more profit by creating sales projections, and comparing delivery costs (Gartenstein, 2012). Promotion Adams Components will use multiple promotional tools to promote effectively. Adams Components will use advertising to promote its product. Advertising across different platforms will used. Advertising across social media, commercials, and newspapers will also be done. Adams Components will also use promotional tools such as influencers. Using influencers, will help build brand awareness through social media. Also, future consumers will also be able to know how our product works. Adams Components will determine which promotional tactic worked best based on results, and customers reviews. Adams Components is a company that truly caters to its customers and will truly seek its best to meet the needs and wants of its customers. Even if Adams Components has a limited budget this brand will strive. Adams Components will gain a market share using social media marketing, positioning its brand throughout the community, email marketing, content marketing, and defining our audience. Adams Components will always analyze data. When it comes to evaluating the results of our promotional campaign, we will look at the cost of promotion (ROI) versus how much it cost to

Unit 5 13 At this rate, Adams Components breakeven will be reached when sales reach 14,000,000 units: 42,000,000 / $12-$9 = 14,000,000 units. This is estimated to take place in the second year. Break-even analysis assumes per-unit wholesale revenue will remain at $12 average. Variable costs are $9 per unit. BREAK EVEN TOTAL PER UNIT Sales (14,000,000 items) $168,000,000 $12 Less variable expenses $126,000,000 $9 Contribution Margin $42,000,000 $3 Less fixed expenses $42,000,000 Net operating income $0 Please refer to the table below and see that Adams Components will break even when 14,000,000 million units are sold. This will give an operating profit of $0. This will then cover all fixed costs/start-up costs. Units Sold Sales Revenues Variable Costs Fixed Costs Operating Profit 0 $0 $0 $42,000,000 ($42,000,000) 3500000 42,000,000 31,500,000 42,000,000 -31,500,000 7000000 84,000,000 63,000,000 42,000,000 -21,000,000 10500000 126,000,000 94,500,000 42,000,000 -10,500,000 14000000 168,000,000 126,000,000 42,000,000 0 17500000 210,000,000 157,500,000 42,000,000 10,500,000 21000000 252,000,000 189,000,000 42,000,000 21,000,000 24500000 294,000,000 220,500,000 42,000,000 31,500,000 28000000 336,000,000 252,000,000 42,000,000 42,000,000 31500000 378,000,000 283,500,000 42,000,000 52,500,000 4.2 Sales Forecast: 1 st year by month; 2 nd and 3 rd years by quarter Adams Components within the first-year projects a 10% growth after the first month. We expect a 20% growth within each quarter within year 2 and 3. The target market of men 18-65 were our main target segment. Sales projected within this segment are the highest as this is our main target market. Potential Customers Year 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Men 18-65 10% Growth after 1 st month 330,000 363,000 399,30 0 450,00 0 500,0 00 656,3 66 718, 000 800,0 00 900, 000 1,000 ,000 1,250 ,000 1,850,000

Unit 5 14 Potential Customers Year 2 1 st Q 2 nd Q 3 rd Q 4 th Q Year 3 1 st Q 2 nd Q 3 rd Q Men 18-65 20% increase each quarter 3,600,000 4,320,000 5,184,000 6,220,8 00 20% increase each quarter 6,000,00 0 7,200, 000 8,640,000  Risks – There are many risks that may come with sales forecasting. According to Markgraf (2012), risks such as unsold inventory with forecasting may threaten the survival of the business. With forecasting it is best to reduce risk with forecasting the demand downward and supply upward (Markgraf , 2012). Other risks that can be imposed with sales forecasting includes poor data quality as well. Adams Components has taken these risks into consideration when projecting sales.  Most important components of sales performance – There are a variety of components that are key when it comes to a sales performance. According to Kotler (2016), a brands strength relies on competitive benchmarking, consistency, responsiveness, differentiation, commitment, authenticity, understanding, and presence. All of these components will help to keep a brand strong, and to keep sales going strong. 4.3 Expense Forecast Marketing Expenses 2023 2024 2025 Website $7,000 $6,000 $5000 Advertising $82,000 $98,400 $118,080 Printed Material $10,000 $15,000 $20,000 Development of retail channel $250,000 $200,000 $190,000 Total sales and Marketing Expenses $349,000 $319,400 $333,080 5.0 CONTROLS Adams Components will monitor its expenses and revenue checking accounting statements. We will also check all budgets. These statements and budgets will be checked on a monthly, and quarterly basis to make sure the product and company are succeeding. According to Bennett (2021), measuring revenue is how a company can assess marketing effectiveness. Adams Components will assess its marketing effectiveness measuring its revenue,

Unit 5 16 References Aragon, C. (2022, March 21).  There’s a market for men’s cosmetics–and a generation gap . Ipsos.com. https://www.ipsos.com/en-us/knowledge/customer-experience/there-is-a- market-for-mens-cosmetics-and-a-generation-gap Bath and shower products market demand & growth to 2030 . (n.d.). Databridgemarketresearch.com. https://www.databridgemarketresearch.com/reports/global-bath-and-shower-products- market Bennett, P. (2021, July 30).  Marketing effectiveness: How to measure it & present to external stakeholders . HubSpot. https://blog.hubspot.com/marketing/easy-ways-to-measure-the- effectiveness-of-your-content Broeke, T. van den, (2023, July 19). The male grooming industry is booming. Here’s why . CNN. https://www.cnn.com/style/male-grooming-industry-booming/index.html#:~:text=Accord ing%20to%20data%20gathered%20by Carney, L. (2016, October 31).  How much does a website cost in 2023? (complete guide) . Website Builder Expert. https://www.websitebuilderexpert.com/building-websites/how- much-should-a-website-cost/ Dove marketing strategy & marketing mix (4Ps) . (2016, December 23). MBA Skool. https://www.mbaskool.com/marketing-mix/products/16875-dove.html How much are you really spending on marketing & sales materials?  (n.d.). Ingage.Io. https://www.ingage.io/post/how-much-are-you-really-spending-on-marketing-sales- materials Kotler, P. & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Prentice Hall. https://mbsdirect.vitalsource.com/books/9780133856606   Markgraf, B. (2012, May 21).  The risks of sales forecasting . Small Business - Chron.com; Chron.com. https://smallbusiness.chron.com/risks-sales-forecasting-47339.html Our story . (n.d.). Summer’s Eve®. https://www.summerseve.com/who-we-are

Unit 5 17 Population of the U.S. by sex and age 2022 . (n.d.). Statista. https://www.statista.com/statistics/241488/population-of-the-us-by-sex-and-age/ U.S. population by sex 2022 . (n.d.). Statista. https://www.statista.com/statistics/241495/us- population-by-sex/