5.1 Competitor Analysis - Andrea Busiko



SUSTAINABLE MARKETING REPORTBy Andrea Busiko (13011104), Taylor Marsh (12468818), Patrizia Coric (12862457), Paige Morris (12823810), & Tamarah Benson (12681976)BX2184-TSV-INT Sustainable Marketing Management Lecturer - Dr Breda McCarthyJames Cook University - School of BusinessDue - 16/10/2015Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc433363529 \h 31. Introduction PAGEREF _Toc433363530 \h 32. Marketing Mix PAGEREF _Toc433363531 \h 42.1 Product PAGEREF _Toc433363532 \h 42.2 Price PAGEREF _Toc433363533 \h 52.3 Place/Distribution PAGEREF _Toc433363534 \h 52.4 Promotion/Marketing Communications: PAGEREF _Toc433363535 \h 63. PESTLE Analysis PAGEREF _Toc433363536 \h 63.1 Political-legal PAGEREF _Toc433363537 \h 73.2 Economic PAGEREF _Toc433363538 \h 73.3 Socio-cultural PAGEREF _Toc433363539 \h 83.4 Technological PAGEREF _Toc433363540 \h 83.5 Ecological PAGEREF _Toc433363541 \h 94. Market Audit PAGEREF _Toc433363542 \h 105. Competition and SWOT Analysis PAGEREF _Toc433363543 \h 105.1 Competitor Analysis PAGEREF _Toc433363544 \h 106. Market Segmentation and Description of the Target Market PAGEREF _Toc433363545 \h 146.1 Demographic PAGEREF _Toc433363546 \h 146.2 Geographic PAGEREF _Toc433363547 \h 146.3 Psychographic PAGEREF _Toc433363548 \h 146.4 Behavioural PAGEREF _Toc433363549 \h 157. Customer Audit PAGEREF _Toc433363550 \h 168. Objectives PAGEREF _Toc433363551 \h 169. Financials PAGEREF _Toc433363552 \h 1710. Implementation, metrics and control PAGEREF _Toc433363553 \h 1810.1 Implementation PAGEREF _Toc433363554 \h 1810.2 Metrics PAGEREF _Toc433363555 \h 1810.3 Control PAGEREF _Toc433363556 \h 1911. Conclusion PAGEREF _Toc433363557 \h 20References PAGEREF _Toc433363558 \h 21Executive SummaryThe purpose of this report was to conduct a sustainability analysis on the Australian natural cosmetics brand Sukin. Through the use of a marketing mix analysis, utilising three sustainability frameworks (Triple Bottom Line, Natural Capitalism and The Natural Step Framework) Sukin was found to be fairly sustainable with major efforts in negating its carbon emissions through its carbon neutral certification, online based promotional activities, low economically friendly pricing, environmentally friendly and socially responsible products. Sukin distribution and choice of suppliers/retailers were not as highly sustainable with possibly excessive fossil fuel use through transportation and retailers. A PESTLE analysis found that Sukin complied with legal and moral requirements with good Corporate Social Responsibility. An increase in sustainable awareness highlighted an opportunity for the brand and recognition of good understanding within the ecological and technological environments has helped Sukin further their brand successfully and sustainably. The brand and products were found to appeal predominantly to female consumers within the green market, and represented a strong target market as they are considered to have greater influence over regular low involvement purchase decisions for their household. The target market was found to be split into three segments: young, typically single females aged 15-24; mothers aged 24-44; and women 45 and over. A market audit found increased media attention and awareness of environmental issues has led to a preference for green, eco-friendly products among these consumers. With this information, objectives were set for the company. Marketing objectives included to increase brand awareness through a 12 month media campaign, utilise social media channels, and successfully maintain a strategic alliance with Bianca Cheah as brand ambassador. The main financial objective was set to increase market share over the next five years by 11% by following through with marketing objectives. Finally the societal objective was set to improve efforts to educate consumers by reinforcing Sukin’s company culture and deeply-held values of sustainability, with a media campaign recommended to be implemented whereby consumers will be educated on sustainable practices they can adopt.These are to be implemented over the 13 months, with a breakdown of estimated finances and a timeframe contained within the report. A variety of metrics for each objective will be used to measure and evaluate the program, such as social media followers, sales and profits and new and existing membership numbers. Control measures have been put in place to ensure success, through the use of contingency plans regarding natural disasters, shifts in external environments, PR disasters and poor implementation. Limitations for this report were found when analysising Sukin’s sustainability with limited access to internal information on Sukin and its suppliers. 1. Introduction The following report aims to outline a marketing plan for Sukin to improve its business sustainability, in the form of a social media marketing campaign to educate consumers and change their behaviour in terms of product consumption. As an Australian natural skincare range, Sukin strives to deliver high quality, affordable, and effective natural skin and hair care that consumers trust to meet their needs while remaining environmentally, economically and socially sustainable (Sukin, 2015). Using data sourced from a variety of textbooks, websites, articles and statistic reports, internal and external situation analysis, market segmentation and promotional evaluation have been undertaken to provide an insight into the business and its current environment to remain proactive and adaptive to change within the market. Given rising concerns regarding consequences of unsustainable business and consumption practices have on the environment and our society, demand has increased for accountability and therefore environmental education and awareness has produced a growth in supply of organic and natural brands (Carey, 2004; Korink, 2013). Furthermore, objectives were developed surrounding projected increase in awareness, engagement and revenue, while implementation and control measures for the recommended campaign are provided to ensure organisational strategy aligns with Sukin’s mission, values and culture.2. Marketing MixTo analyse, evaluate and make recommendations for a business in terms of sustainable improvement, the concept of sustainability must be fully understood. The World Commission on Environment and Development’s Brundtland Report defines sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Martin & Schouten, 2012, p. 28). The report is widely regarded to be the first definition, philosophy and vision of sustainability with The World Commission calling for governments and industries to show more environmental and social responsibility (Martin & Schouten, 2012). In terms of incentives, sustainable marketing can differentiate a business, give them a competitive advantage in the market, encourage innovation and development and lower operating costs. While there are a number of frameworks available, all theories present important information and considerations which businesses should use to develop sustainable and responsible practices in everyday production.This section of the report will analyse Sukin’s current sustainability efforts through the application of the marketing mix. The marketing mix consists of four controllable elements used to market a product fitted to the needs of the consumer (Quester, Pettigrew, Kopanidis, Rao Hill & Hawkins, 2014). These four elements are: product, price, place and promotion. To analyse the level of sustainability and determine the successfulness of Sukin’s current sustainability efforts the marketing mix will be looked at through a number of sustainability frameworks. Triple Bottom Line:Martin and Schouten (2012) discuss sustainability within the three dimensions of environmental, social and economic, known as the Triple Bottom Line, coined by entrepreneur John Elkington. This framework encourages businesses to maintain competitive advantages in each of the three pillars by looking at specific measurable points of references. For example: sales and profits can be used to indicate economic activity; energy usage and waste production for environmental impacts; and labour practices and product safety for social performance.Natural Capitalism:Martin and Schouten (2012) recognise Natural Capitalism as the act of a business recognising and valuing four sources of capital; financial (cash and investment), manufactured (infrastructure and technology), natural (natural resources and ecosystems services) and human (labour, talent, intelligence and creativity), with “particular emphasis on building natural and human capital” (pp 300). To adapt and maintain the focus on these four capitals, four interlinking principles are emphasised: Radical resource productivity: using limited or irreplaceable resources effectively and wisely (resulting in slower depletion of natural resources, less pollution and greater employment)Biomimicry: Industrial processes mimicking biological models where nothing is wasted, and all waste products have a new use (i.e. food waste being turned into fuel). Service economies: Reducing waste by meeting consumers’ needs with a multi-use service (i.e. a video store loaning one movie to multiple consumers creates less need for production and, therefore less waste).Reinvestment: using dividends and profits to buy additional productive capital (i.e. using profits to invest in local education programs, which in turn offer the business more local potential staff) (Martin and Schouten, 2012)The Natural Step Framework:Alternatively, The Natural Step Framework (TNSF) provides a set of four principles to guide businesses towards implementing sustainable measures in everyday operations. A sustainable society, organisation, or business is one that satisfies each of these system conditions:Causes no systematic increases in environmental concentrations of substances from the Earth’s crustCauses no systematic increases in environmental concentration of synthetic substancesCauses no systematic increases in ecosystem degradation, andCauses no systematic barriers to people meeting their own needs (The Natural Step, 2015).2.1 ProductSukin’s focus is on face and body cleansers, moisturisers, masks, and scrubs, as well as hair shampoos and conditioners. The products fall within the Australian organic cosmetics industry and of the nine human well-being fundamental conditions identified by Max-Neef (Martin and Schouten, 2012), Sukin’s products were identified as meeting three; creation (self-expression), identity (sense of self), and freedom (access to choice). These products serve the consumers core level need for maintaining hygiene. The products are created with “active botanicals and natural oils” (Sukin, 2009) free from harsh chemicals, detergents, synthetic fragrances or animal derived products. The products have in-depth ingredient listing on the Sukin website and there is a section of the website dedicated to explaining every ingredient. This helps Sukin with transparency and can help to increase consumer trust, however, there is no information available on where these ingredients are sourced. This makes it hard to evaluate the products and their formulations through a sustainability perspective as it is not known where the ingredients are grown, or how sustainably focused the suppliers are. Without this information it must be highlighted that some ingredients may not be sourced locally from Australia and therefore must be shipped from greater distances to be delivered to Sukin’s manufacturing plants. Consequently, this may not align with the Natural Capitalism principal of radical resource productivity, due to possible unnecessary fossil fuel consumption used during transportation. Many of the ingredients are certified organic, biodegradable and grey water safe which is environmentally beneficial with the elimination of synthetic substances which natural systems struggle to adequately break down (Martin and Schouten, 2012) and satisfies system conditions 2 and 3 of TNSF. Additionally, the products are vegan friendly with no animal by-products or animal testing, which is not only environmentally beneficial, but also socially praised by the ‘green activists’ consumer market (Finisterra do Pa?o, Barata Raposo & Filho, 2009). The products are packaged in almost 100% recyclable PET plastic bottles, LDPE tubes (a recyclable product that can be re-processed many times), glass containers, and recyclable metal springs within the pump lids (Sukin, 2015). Only the sticker labelling and polypropylene pump lids are un-recyclable. While Sukin utilises a more sustainable choice to use recyclable packaging, there is a heavy reliance on consumers to act sustainably and take part in recycling behaviours. Also, while the materials used in the packaging are recyclable, the raw materials (such as crude oils and natural gasses) required to create the finished materials are not highly sustainable. This directly contradicts the first three conditions of the TNSF.However, to combat the negative environmental impacts, Sukin is a certified carbon neutral business, through collaboration and certification from The Carbon Reduction Institute (CRI) (Sukin, 2015). The certification represents that Sukin has committed to annually calculating their carbon footprint through the use of a carbon audit, following CRI’s online reporting, reducing emissions where possible, and purchasing high-quality carbon credits through CRI to offset unavoidable emissions. The carbon neutral certification means that Sukin strives to avoid emissions and purchases enough carbon credits to negate unavoidable emissions. This helps Sukin to combat negative environmental impacts in an economical way. While the product is strives towards sustainability Sukin has opportunities to further its sustainability commitments through packaging, and ingredient sourcing.2.2 PriceSukin’s product costs are low, aiming to be affordable for their target market (outlined in the Market Audit). Competitively, their pricing for all products is noticeably lower or directly similar than that of their main competitors products (outlined in the Competitor Analysis) and comparable, competitive pricing to “non-green” competitor’s products. Sukin employs a mix of cost-based pricing for its products. Cost based pricing refers to marketers setting a fixed amount or percentage to the products cost in an effort to keep consumer prices minimal while generating high volumes of sales (Martin & Schouten, 2012). This is sustainable economically for Sukin as long as it maintains a profit margin adequate enough to continue business practices, and socially sustainable as long as production costs are payed fairly and the target market can continue to afford the products. A value based pricing strategy is difficult to use due to consumers questioning “green” products personal worth and quality (Martin & Schouten, 2012). While, Sukin has not used pricing to position itself as a luxury product, its brand image and labelling is used to present itself as trustworthy and transparent, which helps to alleviate consumer concern for quality (Martin & Schouten, 2012). 2.3 Place/DistributionSukin offers its products across many different countries in-store and online but its main geographic targets remain Australia, New Zealand and multiple countries across Asia. To have a presence in-store across the world requires Sukin to ship physically ship products around the world and enter in to partnerships with retail outlets. Here in Australia their main retailers are Chemist Warehouse and Priceline Pharmacy. Aligning with specific brands means that Sukin’s sustainability efforts are impacted by the chosen retail company’s sustainability stances and efforts. Retailers are not often highly sustainable as they generally require excessive energy consumption (through lighting, store fronts, transportation of stock, etc.) and produce excessive waste (delivery packaging and advertising such as catalogues and poster, etc.). Through the use of these retailers, Sukin does not meet TNSF conditions. A positive benefit to choosing Priceline pharmacy lies in societal sustainability, as Priceline (through recognition of corporate social responsibility) often supports social causes that benefit the population (such as anti-bullying campaigns and fund-raisers to aid in health issues). This is a good example of the reinvestment condition of Natural Capitalism. Alternatively Sukin also offers its products through their own website online with delivery postal options. While it would initially seem more eco-friendly to be based online and offer products direct to consumers, there are both positives and negatives. The costs of running a warehouse that product is sent direct to consumers from can be more economical than distribution to, and selling through a retailer. However sending product direct to consumers relies on transport services which consume more fossil fuels and result in more emissions than bulk distribution. Sukin does combat this with their offset purchases through the CRI, however, does not have any innovative steps in place to avoid the actual emissions. Online retailing would be more economical as Sukin receives 100% of the profits, although cost of each individual purchase being sent out would inevitably cost more than bulk shipping. It also allows consumers to easily access their product no matter their location, which satisfies step 4 of TNSF. Overall the use of physical retailers and online retailing pose both negative and positive environmental sustainability issues, but Sukin’s use of their own personal online retail website can be considered more sustainable than the use of suppliers and distributors.2.4 Promotion/Marketing Communications:Martin and Schouster (2012) recognise five tools within sustainable marketing communication; advertising, public relations (PR), sales promotion, personal selling and direct marketing. Sukin avoids producing traditional adverting material in favour of more sustainable promotional activities. Sukin does not produce any print media of their own, although, they do benefit from featuring in retail supplier’s print and television media. Often their promotional sales are ‘percentage off’ sales or ‘buy two get one free’ delivered through the retailer. Both of these kinds of promotional sales need to be monitored to make sure that the profits are still sustainable and that they do not increase excess consumption by consumers too much. An offer like ‘buy two get one free’ can generate excess consumption as consumers will purchase more than what is necessary. Sukin’s products do not pose a major waste threat as they have a very long shelf life (less risk of spoiling before the consumer can use it all) and come in small manageable sized packaging. Public relations and direct marketing are utilised through the use of the ‘Sukin Club’ online, where consumers can sign up and elect to receive targeted promotions and brand information. Email is a good tool to utilise from a sustainable stand point as most consumers already have an electronic devices through which they will access the information, and has low costs involved (therefore, economically effective in comparison to traditional print media). Although devices require electricity to power and aren’t often sustainable to produce, few consumer will purchase electronic devices for the intent purpose of view Sukin related information, but will instead be a by-product of the initial consumption. To further communicate its sustainable practices to consumers, Sukin also uses a consumer friendly website, and use of social media. The brand has been awarded with many reputable sustainability certifications such as the Carbon Neutral stamp (positioned next to their logo) from the Carbon Reduction Institute of Australia which Sukin provides information on through their website. Sukin’s website, while also serving as an online store, is used as an educational tool, dedicated to providing information to their consumers about their sustainability efforts, natural ingredients and personal benefits for consumers. In addition, to keep fresh on social media, Sukin has recently appointed their first brand ambassador, Bianca Cheah (Proietto, 2015). Cheah is the founder of the online boutique Sports Luxe and operates a successful blog dealing with topics of health, travel, style and fitness. The use of Cheah as a brand ambassador helps consumers to trust and connect with Sukin while further emphasising their sustainable image. Overall their promotional marketing is deemed fairly sustainable societally with no misleading information, environmentally with little to no unnecessary waste and consumption and economically affordable. 3. PESTLE AnalysisA PESTLE analysis can be used to examine a business’ external environment by researching and identifying key issues in the political / legal, economic, socio-cultural, technological, and ecological components of the industry, and can provide an insight into where a business need improvements.3.1 Political-legalHaving a strong understanding of the political and legal influences of an industry is of vital importance for any business. Specifically, the cosmetics and personal care industry has various regulatory bodies who monitor the market to ensure safe practice. Firstly, Product Safety Australia, an organisation within the Australian Competition and Consumer Commission (ACCC), provides strict regulations for the cosmetics industry, including mandatory standards of ingredients labelling (Australian Competition and Consumer Commission, 2015). Product Safety Australia also works with the Australian Government’s Department of Health and their National Industrial Chemicals Notification and Assessment Scheme (NICNAS), which regulates cosmetic ingredients. Specifically, chemicals are monitored and regulated under the Industrial Chemicals (Notification and Assessment) Act 1989 (Department of Health, 2015).The Australian Government’s Department of Communications and the Arts also includes various regulations for online businesses and provides information on e-Commerce, marketing campaigns and spam and the use of social media platforms. Any business marketing programs must abide by a variety of laws; particularly, the Spam Act (2003) outlines how businesses can target consumers online with regards to commercial electronic messages like emails (Department of Communication and the Arts, 2015). A variety of other laws regarding consumer privacy and security also apply to all Australian businesses under the ACCC.Greenwashing is another major issue within any organic industry, with the Australian Consumer Law (effective from 1 January 2011) containing simple rules to ensure that businesses trade fairly with consumers. Specifically, the law states “that businesses must not mislead or deceive consumers in any way”, with penalties applying to business who do (Australian Competition and Consumer Commission, 2011, p. 1). It is important for Sukin to ensure that all of these laws and standards, including those set by the Carbon Reduction Institute regarding carbon neutral status, are abided by both now and in the future if regulation requirements change.Additionally, the Australian Government’s Department of the Environment offers a variety of grants and funding. For example, the Emission Reduction Fund provides incentives for projects to reduce their emissions, while the Department awards a variety of other grants multiple times per year to organisations improving sustainability (Department of the Environment, 2015). Businesses should take advantage of these grants which could not only boost brand awareness and bottom-line sales but encourage other businesses to also set sustainable practices in their everyday operations. Therefore, key findings from the political-legal analysis conclude that Sukin must be aware of and adhere to various regulatory requirements from different organisations, and that grants and funding from the Australian Government are advantageous to pursue to increase publicity of the brand and its sustainable achievements.3.2 EconomicUnderstanding the economic climate of the industry, country and the general international market is also important for a business. Specifically, there are trade agreements and various regulations businesses must follow to export to specific countries. For example, Australia and Sukin’s major international market, the UK, have extensive economic and trade agreements, with the UK being Australia’s seventh largest two-way trading partner (Department of Foreign Affairs and Trade, 2015). However, if Sukin wishes to expand their international market and export to other countries, specific rules and regulations must be followed to ensure correct exporting procedures are put in place. In terms of economic trends, discretionary income, which is the income consumers have available to spend on nonessential items, has been shown to be a key external driver in the organic cosmetic industry (IBIS World, 2015). With a predicted increase of household discretionary income over 2014-15, the sustainable personal care and cosmetics industry should be experiencing growth as consumers have more income available to spend on nonessential organic and natural products (IBIS World, 2015). While Sukin’s low pricing strategy suggests that higher income would have little effect on the business because the product is already affordable, the rise in disposable income would make consumers more open to purchasing organic products in general. In turn, this would increase consumer’s likelihood to consider Sukin and other green products in their decision-making process, boosting brand awareness and creating an opportunity to acquire habitual consumers once customers realise how affordable the product is. Thus, key economic impacts include trade requirements, including tariffs and regulations, which must be followed by businesses wishing to expand into the international market, and a favourable increase in disposable household income.3.3 Socio-culturalHaving a strong understanding of the socio-cultural climate of a business is vitally important, especially for the growing organic industry. Understanding consumer behaviour is key to effectively positioning and targeting the potential market. There is an evident increase in the number of environmentally-conscious consumers, whose awareness of ecological issues has led to a preference for green products in a variety of industries (Greendex, 2010). Consumers are becoming increasingly aware of the consequences of their daily purchases on the environment, with the sale of natural products, especially natural cosmetics, increasing steadily (Korink, 2013). Along with this increase of environmentally-concerned consumers, health consciousness has also increased amongst many customers, and has been identified as "one of the most important drivers of the organic movement” (IBIS World, 2015). This trend indicates that consumers will demand healthier product alternatives, such as those with natural ingredients which are beneficial for the skin (Korink, 2013). Both of these key socio-cultural shifts of increased environmental awareness and health-consciousness create an opportunity for Sukin and similar businesses to capitalize on consumer values, which are further discussed in the Customer Audit.3.4 TechnologicalIn the current technologically-driven world, businesses must ensure they remain innovative and up-to-date with technological advances in their industry and the sustainable landscape as a whole. For the cosmetics and personal care industry, technology plays a major role in sourcing natural ingredients, packaging and general sustainable programs during business operations. For example, recycling innovations has provided Sukin the opportunity to use PET plastic, metal springs, LDPE tubes, and amber glass in its packaging and labelling, all being recyclable and reusable (Sukin, 2015). Furthermore, Sukin’s ‘Grey Water Safe’ scheme ensures that their product range has been formulated to be biodegradable and grey water safe. Other businesses should adopt this scheme to not only remain competitive in the industry but lessen their impact on their environment.The rise of digital mediums and social media also gives businesses a chance to communicate directly with consumers, receive instant feedback and provide information to educate consumers around the world on sustainable practices. This saves money and resources spent on traditional promotional channels, such as printed advertisements, magazines, and mailed brochures and flyers. Additionally, the rise of e-commerce allows consumers all over the world to order products online, saving time and resources.Finally, innovations in product development, manufacturing and transportation gives businesses the opportunity to continuously improve their day-to-day operations in an attempt to lower carbon emissions and unnecessary waste. Organisations such as the Carbon Reduction Institute of Australia encourage businesses to implement sustainable practices, by providing Carbon Neutral labelling which Sukin has proudly worn for a number of years. Businesses must remain proactive to these innovations to maintain a strong marketing position, through the use of sustainable packaging, labelling, promotional channels and business platforms.3.5 EcologicalIn today’s environmentally-conscious world, there are many issues in the ecological environment that pose major threats to not only specific businesses and markets, but the world as a whole. Martin and Schouten argue that “humans are using up or destroying that Earth's vital resources much faster than those resources can be replenished” which is resulting in a number of serious issues (2012, p. 10). In the past, increased industrialisation and burning of fossil fuels caused a number of environmental issues, such as air pollution, smog and acid rain from carbon being released into the atmosphere (Black & Weisel, 2010). Previously, technological advances and modelling highlighted that components of the Earth’s protective ozone layers were rapidly depleting and that heat was being trapped within the atmosphere, known as the natural greenhouse effect (Black & Weisel, 2010). Today, other issues such as global warming, melting glaciers, rising sea levels and adverse weather events may have detrimental consequences. Scientists predict severe flooding of cities and entire island nations may occur, with natural disasters becoming more destructive for coastal regions (Roach, 2006). The environmental issues of the cosmetic and personal care industry include ingredients, specifically dangerous chemicals, packaging, and general consumer behaviour.Destruction of the environment for natural resources presents a number of issues around the world, such as widespread deforestation across Indonesia and Malaysia due to unsustainable practices from the palm oil industry (Zoological Society of London, 2015). As the demand for natural cosmetics rises, businesses are trying to find cheaper and quicker ways to extract and process ingredients, which often leads to unsustainable practices. This can have detrimental effects on the environment, including disrupting ecosystems and depleting non-renewable natural resources (Simple Luxe Living, n.d.; Dean, 2006).Chemicals used in products also raise concerns, as the chemicals are eventually washed into lakes, streams, rivers and public water systems. This can have a range of adverse effects on the environment, including animals, plants and water quality (Simple Luxe Living, n.d.). Research also shows direct links between toxic chemicals and major health concerns, such as birth defects, asthma, cancer, depression and many more (Ecoaction, n.d.).Finally, unsustainable consumption and consumer behaviour presents a number of issues. According to studies from Organic Monitor, 94% of the carbon footprint of shampoo occurs at the consumer level, with small changes in water temperature or shower length significantly reducing the overall environmental impact of the product (Cosmetics Business, 2013). These environmental concerns are only getting worse, with the growing population numbers, globalisation and increased standards of living, however scientists agree that these scenarios can be avoided with responsible practices and sustainable procedures (Martin & Schouten, 2012). Therefore, key environmental impacts for the cosmetics industry include carbon emissions, environmental destruction and unsustainable consumption. Conclusively, it is important for businesses to gain a thorough understanding of their external environment to be aware of issues which may impact the business. This ensures businesses will remain proactive and adaptive to sudden change within the market.4. Market AuditSkincare is the key revenue driver within the cosmetics market, generating global sales exceeding US$111 billion in 2014 (Euromonitor International, 2015). Australia’s cosmetics wholesaling industry currently generates $7 billion in revenue and had an annual growth of 2% between 2010 and 2015 (IBIS World, 2015). The Australian cosmetics industry currently consists of 1030 business with market share of companies dominated by L’Oreal Australia, Procter and Gamble and Unilever Australia (IBIS World, 2015). While there are no brands within the Australian organic cosmetics industry with dominant market share, Sukin remains affected by direct competitors such as A’kin and Moreish Skincare due to similar positioning strategies as a natural skincare brand. Revenue for this industry of 96 businesses is significantly less than general cosmetics at $265 million, however annual growth is almost six times as much at 17.4% between 2010 and 2015 (IBIS World, 2015). This phenomenal growth is due to surging consumer awareness and increasing concerns about the dangers of chemical compounds in traditional cosmetics (IBIS World, 2015). Key trends in the skincare market include rising demand for natural products containing vitamins and minerals, as well as domestic and international interest in Australia’s natural skincare products with botanical ingredients such as tea tree and eucalyptus (Austrade, 2015). Ethical consumerism is also a key behavioural trend as many consumers take into account the ethical, social and environmental consequences of their purchases (Austrade, 2015). This focus on social, economic and environmental sustainability in the cosmetics industry indicates that further sustainable actions implemented by Sukin will position the company as a leader in the organic cosmetics industry. Thus, proving extremely lucrative, considering the predicted high growth in future years. 5. Competition and SWOT Analysis 5.1 Competitor AnalysisAustralia’s organic cosmetics industry is a highly competitive sector regardless of no brands dominating the market. Sukin’s direct competitors include A’kin, Moreish Skincare, Goodness and Natural Instinct, as these brands demonstrate similar positioning strategies as a natural skincare brand with emphasis on sustainability and natural products. As seen in Table 1, all product ranges are free from animal testing, parabens, sulphates, toxins, and harsh chemicals and are made from recyclable packaging. Other similarities between competitors include almost identical distribution strategies as all brands retail through channels like Priceline, Chemist Warehouse and various other pharmacies, as well as e-commerce through various websites, including brand websites. The business ethos of each brand also resembles similar ideologies of creating natural cosmetic products that benefits the consumer and the environment.While the brand’s products are similar in various aspects, there are multiple differentiating factors to be analysed. All competitors frequently use social media channels in the form of Facebook and Instagram to communicate with their consumers. Sukin gains a competitive advantage as it boasts 41,646 Facebook likes and 15.7k Instagram followers, which is significantly higher than its competitors (Instagram, 2015) (‘Sukin’, 2015). Opportunities to differentiate are clear in the target markets for each brand as A’kin clearly targets those of a higher earning income bracket who are also being a somewhat ethical consumer. The company is reasonably sustainable, although much less than Sukin as A’kin is not carbon neutral, grey water safe or certified cruelty free. A’kin is also priced more expensively and produce packaging of a higher quality and is presented in a more appealing way compared to the other brands. This raises the issue of quality indicators, as ethical consumers of a higher income bracket are likely to assume that A’kin’s products are of a higher standard than Sukin’s, whereas Sukin is a much more sustainable brand of equal quality products (See Figure 1). Moreish Skincare also provides products of a higher quality packaging, although only priced slightly higher than Sukin, which allows for quality indicator assumptions. Moreish is not as sustainable as Sukin, as it is not carbon neutral, grey water safe, vegan safe or certified cruelty free. It is critical for Sukin to effectively communicate the high calibre of its products and emphasise its sustainability without compromising its sustainable packaging and biodegradable product to remain at a competitive advantage.Goodness is a competitor in the sense that it is a clear option for younger less environmentally knowledgeable consumers, which is a market that Sukin wishes to maintain. This is clearly demonstrated through the language used by Goodness, such as, ‘Blissful bunnies (animal testing? No way!)’ (Goodness, 2015). Goodness is similarly priced to Sukin, however it is not as sustainable, due to not being carbon neutral, a vegan brand or certified cruelty free, and is packaged and positioned as a fun brand.Natural Instinct is Sukin’s main direct competitor as both brands match similar sustainable criteria, with Sukin proving to be more sustainable as it is carbon neutral and certified cruelty free, unlike Natural Instinct, thus indicating a competitive advantage. Similar pricing strategies are employed by both brands as they offer the lowest priced natural products amongst the competitors, thus demonstrating a cost leadership strategy. These lower production and retailing costs are the reason for lower quality streamlined packaging, common in both brands’ ranges. Natural Instinct holds an almost identical ethos to Sukin of providing products that are environmentally friendly and sustainable at an affordable price. This is evident through Natural Instinct’s aim of providing, ‘high quality, natural products that offer your family the best results at a price that’s equally down to earth.’ (Natural Instinct, 2015) Sukin’s tagline, ‘Skincare that doesn’t cost the earth’, presents a similar ideology (Sukin, 2015). These factors clearly validate that Natural Instinct is a close competitor to Sukin and is a viable substitute product for the market segment both brands target. While each competitor claims their own advantages, Sukin remains the leader in the industry as seen by their high social media following compared to its competitors and is at the forefront of sustainability with certified cruelty free and carbon neutral status. Table 1. Sustainability Analysis Sustainability FactorsBrandsSukinA’kinNatural InstinctGoodnessMoreishCarbon Neutral?????Grey Water Safe/Biodegradable?????Recyclable Packaging?????Vegan Brand?????Animal testing/by products/ derivatives free?????Certified Cruelty Free?????Paraben Free?????Sulphate Free?????Toxin Free?????Harsh Chemical Free?????Information sourced from: (Sukin, 2015), (The Purist Company, 2015), (Natural Instinct, 2015), Goodness, 2015), (Moreish Skincare, 2015).Figure 1. Perceptual Map 5.2 SWOT AnalysisStrengthsWeaknessesMost sustainable skincare brand amongst competitors (due to carbon neutral status and other eco certificates).Strong brand following, as indicated by social media presence (Facebook 41293, Instagram 15.1k).Distributed through retailers across 10 countries, both in store and online.Affordable price allows for high accessibility from market segments with low income but high eco consciousness.Australia’s highest selling natural skincare brand (Sukin, 2015)- ???????Perceived as low quality compared to competitors such as A’kin and Moreish. Also due to low price and bland packaging, as a negative quality indicator.Minimal differentiation between competitors without knowledge of Sukin’s superior sustainability efforts. All brands have similar positioning as a natural skincare brand with similar aims and mission statements.Increasing availability across the world can decrease Sukin’s sustainability due to increased shipping costs and energy consumption.- ???????OpportunitiesThreatsOrganic Cosmetics is a growing industry, thus will continue to be profitable in the future.Behavioural shift to ethical consumerism/favouring sustainability (green consumers).Social media is a continuing technological trend that allows for instant communication between Sukin’s petition in the organics cosmetics industry is high and the trend is increasing. Barriers to entry are low in this industry which increases the likelihood of additional competitors. 6. Market Segmentation and Description of the Target MarketSukin products dominantly appeal to female consumers within the green market. The target market has been categorised into three segments: young females aged 15 – 24 typically single and educated, mothers aged 25 – 44 and, women 45 and over. The majority of Sukin products appeal to the second market segment, mothers aged between 25 and 44, classified as household decision-makers who evaluate perceived benefits of products based on the needs of their family (Sahota, 2014). This is evident amongst Sukin’s existing product range and mission statement, declaring they offer affordable and effective natural products that are appropriate for the entire family (Sukin, 2015). 6.1 DemographicIn Australia, females between 25 and 44 equate to 28.1% (3,054,220 million) of the total female population, most residing in or around metropolitan cities and large regional towns (Australian Bureau of Statistics, 2011). While almost half of the population is married, 60.5% of all Australian families have children, averaging two children per family (Australian Bureau of Statistics, 2011). Both Australia’s national disposable income and natural personal care market has increased over the past few years, with average weekly expenditure on personal care products being only $11 per family, indicating most Australian families are price sensitive towards these purchases (Australian Bureau of Statistics, 2013; Money Smart, 2012). This demographic falls within the ‘Green Activists’ segment, identified as individuals possessing a higher education, greater earning occupations and favourable disposition toward environmental perspectives (Finisterra do Pa?o, Barata Raposo & Filho, 2009; Furlow & Knott, 2009, p. 85). These individuals are considered more susceptible to environmental sensitivity due to greater access to information, consequently accumulating knowledge of environmental issues and the ability of a higher earning family to sustain the marginal escalation in costs that accompany supporting most green products (Finisterra do Pa?o, Barata Raposo & Filho, 2009). However, given Sukin’s affordable pricing consumers from even a modest social class, conscious of their budget, can purchase these high quality products. 6.2 GeographicSpecific to Australia’s rugged, desiccated environment, with high UV exposure and severe humidity, products that complement local climate settings are in need from Australian consumers (Australian Trade Commission, 2015). According to the Australian Trade Commission, domestic and international demand is rising for natural and organic personal care products produced with high quality native Australian ingredients, particularly in areas of body, hair and skin products, cosmeceuticals, sunscreen and anti-aging products (Australian Trade Commission, 2015). Allowing local manufacturers, including Sukin, to capitalise on growing recognition of prestigious Australian ingredients.6.3 PsychographicEnvironmentally conscious consumers actively seek products that align with their values and needs, as green is not just a status symbol but a core belief (Sahota, 2014). When a consumer identifies product or brand attributes relative to their own values and needs they are more inclined to exhibit high brand commitment (Guthrie & Kim, 2008). Sukin attracts consumers within Roper’s Genuine Greens, Not Me Greens and Dream Green segments (Martin & Schouten, 2012). Martin and Schouten (2012, p.92) defines ‘Genuine Greens’ as committed activists, who believe all pro- environmental behaviour is achievable, while ‘Not Me Greens’ refers to those environmental advocates who are apprehensive of big issues and commit to convenient actions. ‘Dream Greens’ exhibit environmentally concerned attitudes, but their naivety restricts behaviour (Martin & Schouten, 2012, p.92). Each is different, however common consensus is these individuals currently are or would be willing to actively participate in pro-environmental behaviours, given they knew how and the actions were convenient (Martin & Schouten, 2012). Green consumers with high consumption levels of green products are usually involved in community or social responsible activities (Finisterra do Pa?o, Barata Raposo & Filho, 2009). They are highly influenced by others opinions and display a strong concern for the environment, however their strong attitudes toward environmental activism does not always guide their purchase decisions (Finisterra do Pa?o, Barata Raposo & Filho, 2009). Consumers are sceptical of brands that promote and advertise themselves as sustainable organisations, although most individuals are willing to trust familiar logos that represent cruelty free and environmentally friendly establishments (Finisterra do Pa?o, Barata Raposo & Filho, 2009; Sahota, 2014). Some consumers experience ‘green fatigue’, an adverse perception toward environmentally friendly products, as individuals’ cynicism creates focus on cost and functionality of items, in the belief products are too expensive and have limited benefits for the environment (Sahota, 2014).As people become more informed on environmental issues, consumers recognise the consequences associated with their individual actions and feel empowered to make green choices, subsequently encouraging ethical consumerism (Australian Trade Commission, 2015; Sahota, 2014). For mothers the health of their family comes first, while environmental concern is close second, indicating that for green products to gain acceptance they must not compromise the needs or wants of the consumer (Sahota, 2014). These consumers want products that are effective, providing a functional benefit for themselves and their family, while being environmentally friendly and reasonably priced (Sahota, 2014). As a ‘no compromise green’ organization, Sukin has the opportunity to reach consumers outside of the green-niche market (Sahota, 2014).6.4 BehaviouralIt is considered women have greater influence over regular low involvement purchase decisions, such as groceries and personal care products, as they usually do the shopping for the family and are therefore more familiar with suitable product options (Sirgy, Rahtz and Portolese Dias, 2015). Women between the ages of 25 and 44 spend the most amount of time on household work, which includes shopping for family items (ABS, 2011). This demographic has been identified as the primary target market for Sukin, given the comprehensive range of natural products suitable for the whole family, which appeals to a mother's concern for purchasing the most effective and safe personal care products to fulfil immediate needs (Sahota, 2014). While women are also believed to be more inclined to display pro-environmental attitudes and behave with greater concern toward the environment when making purchase decisions (Finisterra do Pa?o, Barata Raposo and Filho, 2009; Furlow and Knott, 2009, p. 85).Increased media attention and growing social concern for environmental issues, has influenced shifts within demographic variables of green consumers, encouraging poorer socioeconomic consumers to support green products (Furlow and Knott, 2009, p. 85). As premium quality green personal care products are increasingly more accessible and affordable, a large variety of consumers are purchasing such luxury goods that they would not have been able to in the past (Sahota, 2014). The demand for organic and natural cosmetics and personal care products has increased as consumers become conscious of hygiene and beauty trends (Sahota, 2014; Souiden & Diagne, 2009). An emerging trend exists surrounding male cosmetic products, as research indicates most male grooming consumption is influenced by the women of the household (Data panel, 2002; Junaid & Nasreen, 2012). While decision to purchase personal care products is primarily determined by meeting consumer health and wellness needs, ethical and environmental concerns are also motivating factors (Sahota, 2014). As consumers are increasingly concerned with individual purchasing patterns causing negative environmental impacts, they begin to exhibit a preference toward purchasing environmentally friendly products (Finisterra do Pa?o, Barata Raposo and Filho, 2009). However, if the product fails to meet expectations consumers are likely to complain (Sahota, 2014). Given the identified market is active in technology, they are also inclined to post their product experience on social media and online forums to reach a broader audience (Sahota, 2014).7. Customer AuditAs the demand for and use of natural products continues to increase, it is vital for marketers to have a thorough understanding of this new market’s motivations and consumer behaviour. Firstly, in terms of Maslow’s Hierarchy of Needs, consumers are driven to purchase personal care products as a result of their belongingness motives, such as a desire for love, friendship, affiliation and group acceptance, although sustainable consumption may be driven by esteem motives for consumers to feel superior, prestigious or reach a level of self-respect (Quester, Pettigrew, Kopanidis, Rao Hill, & Hawkins, 2014). Furthermore, consumers may be heavily influenced by social factors, specifically reference and membership groups as individuals may strive to identify themselves as part of an environmentally-conscious group or aspire to join the Sukin Club membership program. In turn, they conform to purchasing environmentally friendly products to feel a sense of belongingness in the group.Other important aspects of this market's consumer behaviour are the evaluative criteria consumers use to search and evaluate product alternatives. Firstly, consumers in this market would generally be looking for an environmentally-friendly product through informative and symbolic packaging and promotions. Sukin effectively targets this consumer need by using earthy colours, natural imagery and the symbolism of a leaf as their logo to identify the product as eco-friendly. However, problems concerning the trustworthiness and reliability of sustainable claims have arisen in the market, with terms such as ‘green’ and ‘recyclable’ being so overused and misused that marketers worry these claims could ultimately become meaningless to consumers (Furlow & Knott, 2009, p. 87; Zimmer, Stafford and Stafford, 1994). Some consumers also struggle to distinguish between official, third-party certifications and non-official eco-labels on products, which again leads to a high level of mistrust and doubts of the genuinely of these labels (Korink, 2013).Many studies also show that consumers in the natural personal care market considers the product’s impact on their skin, body and general health and well-being as well as that of their family. Korink mentions that ingredients are one of the most important product attributes consumers consider when choosing cosmetic products, with heightened awareness of health implications resulting in a “preference for cosmetics that maintain or promote a healthy lifestyle by containing ingredients which are beneficial for the skin” (2013, p. 13).Despite Martin and Schouten (2012) describing a green market as consisting of customers who will pay a premium price for organic products, Furlow and Knott (2009) argue that environmental consumerism is no longer for the socially elite. Sukin specifically has targeted a market who is not only environmentally conscious, but also price sensitive by providing affordable, eco-friendly products, therefore, price may be a very important criteria factor 8. ObjectivesMarketing Objectives:Increase brand awareness throughout the 12 month long campaign and thereafter, via; social media channels, strategic alliance with Bianca Cheah, and word-of-mouth.Gain 11% increase in market share over the next five years (2016-2020), through expansion of the target market.Retain current customers over the period of the campaign, and thereafter.Increase Sukin following of social media channels by 20% in the initial month of the campaign and by 10% for the remaining months of the campaign.Acquire a 20% increase of new customers during the 12 month long campaign.Financial Objectives:Increase revenue by 11% over the next five years. Predictions show that the industry will grow 9% over 2016-2020 (IBIS World, 2015). In the first year of the campaign, revenue is expected to grow faster than the industry, and thereafter Sukin will aim to emerge a market leader with larger growth rates than the industry.Table 2. Sukin Expected Annual Growth Rate (Sales Forecast)Revenue Growth Rate201620172018201920203%2%2%2%2%Societal Objectives:Educate consumers on easily adopted sustainable behaviours, via social media channels, Sukin website and brand ambassador, of which can be implemented at an individual level over the duration of the 12 month long campaign.Encourage ongoing individual sustainable behaviours amongst consumers via social media channels, Sukin website and brand ambassador.9. FinancialsSukin marketing budget, profit and loss statement, and sales forecast (Table 2) estimates are not exact amounts, and have been established using fictitious data. Sukin have anticipated total revenue will increase 3% within the first year ($315,438) and a further 2% increase within the following three years ($321,746, $328,181, $334,745). Higher predicted growth rate in the first year reflects the intense marketing schedule intended for maximum exposure to strengthen total market share, while the following year’s expenditure will decrease and concentrate on maintaining existing market share (Belch, Belch, Kerr & Powell, 2014). It is also expected overall operational expenses will increase as revenue increases. These are specified in the profit and loss statement (Table 4) as administrative, marketing and manufacturing expenses. Prior to finalizing the marketing budget, strategic objectives were first developed then appropriate mediums to achieve those objectives were selected (Belch, Belch, Kerr & Powell, 2014). This budgeting approach is referred to as the objective-and-task method, as marketing efforts are selected based on their ability to successfully achieve the outlined objectives (Belch, Belch, Kerr & Powell, 2014). Planned marketing channels and estimated expenditure have been detailed in the budget, Table 3. ?Table 3. Marketing BudgetSukin Marketing BudgetOnline Advertising Price per unitCombined CostTotalSukin Website (redesign of site including maintenance)?17,000$17,000 Priceline Website 80010,400$10,400 Chemist Warehouse Website 80010,400$10,400 ????Social Media ???Facebook?0?Instagram?0?Pinterest?0?Twitter ?0???0?Bianca Cheah???Blog/Social Media Posts65020,800$20,800 ????E-publications/ E-magazines???Fashion & Beauty (1/2 page digital coloured)2,05024,600$24,600Lifestyle (1/2 page digital coloured)2,05024,600$24,600????Instore???POP Displays (Participating Priceline Stores) 1504,500$4,500????Internal ???Team Meetings50800$800Marketing Communications Total$6,550$113,100$119,650 Table 4. Sukin Profit and Loss Statement 2016Sukin Profit and Loss Statement 2016Total revenue3,200,000Cost of Goods Sold(1,400,000)Gross Profit1,800,000??Expenses?Postage/delivery (65,000)Advertising(119,650)Depreciation (Equipment)(27,000)Electricity(30,000)Property Insurance/tax(30,200)Interest and bank charges(29,000)Accounting and legal fees(12,600)Printing and stationary(12,000)Rent for premises(130,000)Repairs and maintenance(21,100)Training(8,800)Salaries(980,000)Workers compensation(13,400)Miscellaneous expenses(15,000)Total Expenses(1,493,750)Net Profit (Before Income Taxes)306,25010. Implementation, metrics and control10.1 Implementation The implementation of marketing strategy is paramount to the achievement of the marketing objectives set out by a firm. Sukin should adhere to the Organisational Culture implementation approach, by which the organisation’s strategy becomes an extension of Sukin’s mission, values and culture (Ferrel and Hartline, 2012), which is obvious of the campaign. This approach also allows for much more effective and efficient implementation of strategy throughout an organisation’s structure. This is possible because the campaign is built upon the value of sustainability. Therefore, employees, already exposed to the values of the company, are much more motivated to implement the strategy (Ferrel and Hartline, 2012). The internal marketing process is called upon at this point to guide the actions of management to communicate the strategy to employees and persuade them on it. This will happen in the lead up to the launch of the campaign with weekly e-newsletters, emails and fortnightly team meetings.Sukin’s communication strategies to consumers is also of great importance throughout the campaign and even prior. The campaign is set to launch January 2016 however, there will be communications in December 2015, which will be hints to consumers that something exciting is coming. The Sukin website, social media accounts and internal emails communications will run continually throughout the campaign. Communications will be particularly dense in the first month of the campaign to gain greater awareness from consumers, particularly concerning involvement in the competition being run in that same month. Sukin will also be extending communications via Bianca Cheah, retailer websites and instore, and E-publications such as magazines. The schedule has been created so that outside of the Sukin website, social media, and internal communications there are external communications of some sort every week that consumers will come into contact with. The communications schedule (Table 5) below will enable Sukin to achieve objectives efficiently and effectively with decreased discrepancy between intended and realised marketing strategy. Specifically, it is recommended that Sukin embark upon a strong social media marketing campaign that includes a competition for consumers. The goal of the campaign is to encourage sustainable consumer behaviours in line with the Sukin philosophy, expand the Sukin’s brand awareness and target market through the use of co-branding, brand personality, and consumer involvement. The competition will be based upon consumers sharing their own innovative sustainable behaviours with others, using the hashtag “Sukinsecrets”. This not only expands and strengthens the brand community but also the brand awareness amongst those whom are non-users of Sukin. The inclusion of incentives in the form of cosmetic gift packs also promotes involvement in the campaign which in turn directs learning and attitude change of the potential consumers (Quester, 2014).36906201100455Table 5. Sukin Marketing Gannt Chart00Table 5. Sukin Marketing Gannt Chart10.2 MetricsThe following metrics (Table 6) have been devised to achieve the objectives and to also monitor the progress. From these metrics Sukin can correct and control any areas that are not meeting standards, so as to once more decrease the discrepancy between the intended and realised strategy. ?Table 6. Objectives and MetricsObjectiveMetricIncrease brand awareness throughout the campaign and there after via social media channels.Measure the percentage increase in followers, likes, posts, and shares of Sukin material from the beginning of the campaign to the end and also thereafter.Increase brand awareness throughout the campaign and there after via strategic alliance with Bianca Cheah.Measure the percentage of people who are cross over consumers of both brands.Retain current customers over the period of the campaign.Measure percentage of customers who continue to purchase during the campaign and after.Increase following within social media channels by 20% during the initial month of the campaign and by 10% thereafter.Measure percentage increase of followers (or likes where necessary) across the multiple social media channels.Acquire 20% increase of new customers during the 12 month long campaign.Measure percentage of new customers acquired within the duration of the campaign.Measure number of new email subscribers.Measure increase in sales percentage.Gain 11% increase in market share over 5 years (2016-2020).Measure dollar sales divided by total industry sales during the 5 years.Measure product sales in dollars (over the same period) per year with weekly, monthly and quarterly updates to track progress.Encourage sustainable behaviours amongst consumersMeasure the number of shares, likes and pins of #Sukinsecrets posts amongst consumers during the campaign.Educate consumers about easily adopted sustainable behavioursMeasure consumer knowledge via the quality of user generated content being posted to Sukin social media.It is also of importance for Sukin to evaluate sales key performance indicators (KPIs), online orders from consumers, retailer orders and the request of new wholesalers or retailers to measure sales performance. These measures will be audited every week, month, quarter and year in line with respective targets to evaluate progress of the objectives.10.3 ControlThe above tools and strategies aid Sukin in controlling the profitability, productivity and strategy of the campaign and the objectives. It is critical to success that the evaluation of marketing activities by both management and employees are initiated and executed throughout the life of the campaign. Another key consideration of implementation and control of marketing strategy is to monitor progress and also if the plan is beginning to fall off course; this particularly shows the worth of metrics. This is the final system in successful implementation - contingency plans. Sukin will have various contingency plans in place in the case of strategy going off course whether controllable or not. Such plans will be concerned with anticipating issues surrounding natural disasters (affecting distribution and production), shifts in external environment (economic, political and cultural), PR disasters (Sukin or Sukin affiliates) and poor implementation of strategy.Finally, upon reflection of the implementation, metrics and control systems in place, Sukin can efficiently evaluate the discrepancies of the intended strategy and the realised strategy. From this point the knowledge acquired can then aid in the contextualising of expected outcomes, historical events, competitive or industry outcomes, and environmental influences via metrics that may have taken place over the campaign. All of which aids in future implementation programs. ??A strong implementation program is of paramount importance. Communication schedules clearly organise activities to lower the risk of confusion, metrics allow staff to effectively measure the progress towards achieving objectives and control systems provide assets both in the present and the future success of implementation. Therefore, Sukin’s strong implementation program that combines the aforementioned tools, programs, and strategies minimises risk and increases the expected success of the campaign by coming as close as possible to the intended strategy.11. ConclusionIn order for Sukin to remain a leading Australian provider for natural skin and hair care products, continuous responsiveness is necessary to maintain competitive advantage. Adhering to various regulatory requirements and pursuit of potential grants and funding from the Australian Government are advantageous to increase publicity of Sukin and its sustainable achievements (Department of the Environment, 2015). While innovations in product development, manufacturing and transportation also provide opportunities to improve day-to-day operations to lower carbon emissions and unnecessary waste. As consumers become increasingly aware of the consequences of their daily purchases have on the environment a behavioural shift towards ethical consumerism, combined with increasing disposable income, sees a projected growth in the sustainable personal care and cosmetics industry (IBIS World, 2015; Korink, 2013). However, as Sukin specifically targets segments who are not only environmentally conscious, but also price sensitive, the existing low pricing strategy suggests that higher income would have little effect on the business because the product is already affordable. Sukin must remain proactive to counteract low quality perceptions, as lower pricing and bland packaging compared to competitors is a potential indicator of inferior quality. Utilizing favoured e-commerce mediums have been considered a valuable resource for promotion, consequently, implementation of the proposed Sukin campaign has been created predominantly using various e-commerce channels.References: Australian Bureau of Statistics, (2011). Census Data, 2011. Available at: [Accessed 9 Sep. 2015]Australian Bureau of Statistics, (2013). 1370.0 - Measures of Australia's Progress, 2013. Available at: [Accessed 9 Sep. 2015].Australian Competition and Consumer Commission. (2015). Cosmetics. Retrieved from Competition and Consumer Commission. (2011). Green marketing and the Australian Consumer Law. Canberra, Australia: Australian Competition and Consumer CommissionAustralian Trade Commission, (2015). Consumer Goods - International recognition for fashion and cosmetics. Australian Government. Available at: [Accessed 15 Sep. 2015]Belch, G., Belch, M., Kerr, G., & Powell, I. (2014). Advertising: an integrated marketing communication perspective (3e). North Ryde, Sydney: McGraw HillBlack, B. & Weisel, G. (2010). Global Warming. [Adobe Digital Editions version]. Retrieved from , J. (2004, August 15). Global Warming. Bloomberg Business. Retrieved from , C. (2006, November 3). Study sees ‘global collapse’ of fish species. The New York Times. Retrieved from Business. (2013). Consumers hold key to reducing environmental footprint of cosmetics. Retrieved from of Communications and the Arts. (2015). Legal tips. Retrieved from of the Environment. (2015). Grants and Funding. Retrieved from of Foreign Affaris and Trade. (2015). United Kingdom country brief. Retrieved from of Health. (2015). Cosmetics. Retrieved from International. (2015). The Future of Skincare: Game-Changing Trends and Influencers. Retrieved from , O. C. and Hartline, M. D. (2012) ‘Marketing Implementation and Control’, in Joyner, E. (ed.) Marketing Strategy, Text and Cases, 6th Edition. United States: South-Western College Publishing, pp. 255–282.Finisterra do Pa?o, A., Barata Raposo, M. and Filho, W. (2009). Identifying the green consumer: A segmentation study. J Target Meas Anal Mark, 17(1), pp.17-25. Avaliable at: [Accessed 15 Sep. 2015]Furlow, N. E., & Knott, C. (2009). Who’s Reading the Label? Millennial’s use of environmental product labels. Journal of Applied Business and Economics: 10(3), 85-97. Retrieved from Goodness. (2015). The Natural Beauty Lab. Retrieved from??????? View Research (2015) Organic Personal Care Market Analysis By Product And Segment Forecasts To 2020. Available at: . (2010). Consumer choice and the environment: A worldwide tracking survey. Retrieved from cb1275487974.pdfGuthrie, M. and Kim, H. (2008). The relationship between consumer involvement and brand perceptions of female cosmetic consumers. J Brand Manag, 17(2), pp.114-133. Available at: [Accessed 14 ?Sep. 2015]IBIS World. (2015). Cosmetics and Toiletry Wholesaling in Australia: Market Research Report. Retrieved from World. (2015). Organic Cosmetics and Toiletries Distributors in Australia: Market Research Report. Retrieved from (2015) Instagram. Available at: . (2015). Sukinskincare. Retrieved from???????, A. and Nasreen, R. (2012). Determination of Consumer Behaviour amongst Millennials in Dermaceuticals (Skin Care Products). IJMS, 4(3). Available at: [Accessed 15 Sep. 2015]Korink. (2013). Reduce the confusion: the influence of additional shelf information about eco-labels to compre green cosmetics [Masters dissertation]. Retrieved from , D & Schouten, J (2012). Sustainable marketing. Upper Saddle River, New Jersey: Prentice-Hall. Money Smart, (2012). Australian spending habits | MoneySmart by ASIC. Available at: [Accessed 9 Sep. 2015]. Moreish Skincare. (2015). Ingredients. Retrieved from??????? Instinct. (2015). About Natural Instinct. Retrieved from???????, J. (2006, March 23). Global warming is rapidly raising sea levels, studies warn. National Geographic. Retrieved from , A. (2014). Sustainability: How the cosmetics industry is greening up. Chichester, West Sussex, United Kingdom: John Wiley & Sons Inc. Available at: Simple Luxe Living. (n.d.). The Environmental Damages of Cosmetics. Retrieved from , J., Rahtz, D. and Portolese Dias, L. (2015). Consumer Behavior Today 1.0 | Flat World Education. [online] Flat World Knowledge. Available at: [Accessed 18 Sep. 2015].Sukin (2009). Sukin: About us. Retrieved from Natural Step (2015). The four system conditions of a sustainable society. Retrieved from Purist Company. (2015). Sustainability. Retrieved from , P., Pettigrew, S., Kopanidis, F., Rao Hill, S. & Hawkins, D. I. (2014) Consumer behaviour: Implications for marketing strategy (Vol. 7). North Ryde, Australia: McGraw-Hill EducationZoological Society of London (2015). Rainforest foundation norway and and green living. Retrieved from ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download