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8. Marketing Plan
In this section, we describe the demographic, socioeconomic and psychographic profile of our target audience. From there, we then introduce different personas which represent the various groups within our target market who are segmented based on the driving force behind their inclination towards zero waste consumption. Lastly, we present a comprehensive marketing strategy aligned with our audiences’ demands and profile.
To present a more accurate and detailed strategy, we limit our marketing plan to our first target market – Manila, Philippines.
8.1. Baader-Meinhof Phenomenon
Our primary strategy in getting first-time consumers to come into STOR will be to create what is commonly referred to as the “frequency illusion”. This phenomenon refers to an event whereby when you first hear about a new product and/or idea, you then suddenly start noticing variations of that same product everywhere. Such frequent sighting of the same product stimulates consumers to engage with it to try and find out why it is so popular. Creating the
“frequency illusion” will work particularly well for STOR because the novelty of the refill concept will easily attract the curiosity of our target audience. This strategy is not only effective in raising awareness for STOR but also in encouraging consumers to take action and experience a zero-waste approach to buying their bath and skin care products first-hand.
To execute this strategy, we will require online and offline initiatives to get our message across through various channels. Offline, we will host events in-store and in other pop-up locations with STOR’s mobile van to boost the business and the brand. For our vision of a zero waste Asia, we will invest in guerilla type marketing and advertising to raise awareness of the negative effects of single-use plastic. With guerilla marketing, we hope to spend as little as possible
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while attracting the most attention and leave a memorable impression. Our installations or ads will be inspired by the World Wildlife Fund (WWF) who have consistently portrayed some of the most accurate and moving advertising as presented below.
Figure 17: Advertisement on Plastic Pollution17
Online, we will maintain a strong social media presence throughout various channels with the help of influencers that have an existing following in the Philippines. Details of this partnership will be presented in the Partnership Marketing with Influencers section.
8.2. Building a Zero Waste Brands Coalition
As a startup with a novel business model, alliance marketing is amongst the most efficient ways to reach our target audience with the support of existing brands that have an established following and trustworthy reputation with the market. With this initiative, STOR intends to form a coalition whose business goals are for sustainability in the form of banning plastic.
Members of the coalition could be farm-to-table restaurants, hotel and resorts, airline companies, clothing brands, and the list goes on. The goal of this coalition is to learn from each other’s experiences and find ways to collaborate on our products or services to enrich customer’s experiences with our brands. This is particularly helpful in converting potential customers into
17 Note. Reprinted from Ocean Care and World Wildlife Fund. Retrieved from www.oceancare.org and www.wwf.org
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actual buyers with a crossover effect. An example could be partnering with Bench, the biggest local clothing brand in the Philippines, who use bamboo fiber to manufacture some of their clothes. We could propose collaborating on a collection whereby customers who come into STOR with any clothing from the bamboo collection can get a discount in any STOR branch within a span of a few months. Regardless of competition within brand members in the coalition, the demand of environmental protection comes as top priority.
Alongside this local coalition, STOR hopes to seek out and build alliances with big multinational brands whose network and reach encompass all over Asia. A target timeline is when STOR reaches 200 branches, we hope to partner with Adidas who is known for their support to stop plastic pollution. In 2017, Adidas partnered with Parley for the Oceans by launching a line of shoes whose material is plastic pollution recovered from the ocean.
Figure 18: Adidas Against Plastic Pollution18
With Adidas open to partnerships that fit their vision, Impossible is Nothing, there are many
18 Note. Reprinted from Adidas X Parley. Retrieved from http://www.chrisdarmon.com
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ways we can collaborate with them in the future.
8.3. Partnership Marketing with Influencers
There are numerous big-name influencers in Asia across various age ranges that appeal to our target market and support the use of natural personal care products. However, STOR will be very selective with its set of chosen influencers because our ideal partners for collaboration are those whom we can grow with. A few examples are @mari_jasmine and @thegirlgonegreen who, despite not having as many supporters other Instagrammers, provide authentic content and are genuine supporters of zero waste as well as using natural products on their skin. We intend to find and establish relationship with a set of six to eight influencers with different followers.
To successfully execute this collaboration, we will host a “brand day” where the STOR team will have an intimate sit down with all our partners to simply talk about our passion, our vision and why we are in this business. In addition, we will explain every detail behind STOR, My Eco Legacy. This is to ensure consistent communication when our partners tell their version of our STOR story to their followers. We will also offer our partners access to the zero waste refillery shopping experience before we officially open our doors for business. Each of them will serve as our testers who can give us input on how we can serve our customers better, they can also use this time to take photos and show sneak peaks to their followers to excite them and announce our opening dates and branch locations. They will be amongst the first people we will update with every future branches and new products. In addition, we will share our brands’
standard PR kit that have talking points on our products and sustainability projects should they choose to share this information. However, the objective of our collaboration is not to market each of our individual products but for these partners to become advocates of the brand so that not only do they attract the attention of the potential target market but that they continually support our vision of bringing awareness to the benefits of living a zero-waste lifestyle.
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In this section, we present particulars for STOR’s initial investment, a five-year projection and an NPV profitability analysis to determine whether this business is worth pursuing.
9.1. Initial Investment Summary
Table 4: Initial Investment Summary (Unit:Php) Fixed Asset Cost
Dispensary Equipment 350,000.00
Furnitures & Fixtures 176,000.00
Leasehold Improvements & Other Installations 72,000.00
Informational Website 20,000.00
Working Capital
Inventory 5,625,000.00
3 Month Rent & Deposit 1,000,000.00
3 Month Salary 465,000.00
3 Month Marketing 120,000.00
Licenses, Legal Fees & Permits 100,000.00 Miscellaneous and Cash Reserve 500,000.00
Total 8,428,000.00
9.1.1. Dispensary Equipment
The quality and efficiency of STOR’s tanks and dispensing valves are key to our business operations. Therefore, a big initial investment will be spent to manufacture the best quality custom tanks and dispensing valves. Details of these equipment were previously presented in the Key Resources section.
9.1.2. Furnitures & Fixtures
STOR sets a budget of Php2,200 per square meter. This budget will invest in creating a space that is visually stimulating and engaging for our customers surrounded by intelligent layout that is designed for optimum space and operations management. Our furniture and fixtures will