Marketing Plan for the FlaBlaster Product

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Executive Summary

This is a document about FlaBlaster, a product that is able to reduce the weight of a person without using other weight loss procedures such as surgery. This cream has the ability to reshape and make bodies physically fit without going under various dangerous procedures. We have explained how the product is being manufactured. Our targeted group for this product is obese persons, people willing to reshape the size and nature of their bodies, beauty contestants and beauty houses and finally those willing a physical view of their body at all ages. This product is found at GNC Shoppe and it is an international product. FlaBlaster is the only product sold at GNC Shoppe.

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It is used for both males and females. The aim of this product is to meet the weight loss management industry mark by 2015 in terms of finance. We have therefore given our market strategies, price strategies that will ensure to track more customers and our distribution strategies. We have also highlighted our market advantages as being the only producer and manufacturer of FlaBlaster. We also aim high at satisfying our customer needs as illustrated in this document.

The product has been approved by the Food and Drug administration therefore we do not have trust issues with our customers. The government regulations are also in our favor since we tend to meet all their requirements. Since we aim to be the number one producer of weight loss products we have given out our financial objectives and where we want to be by the year 2015. This document shows all our strengths in dealing with the issues of weight loss and how it is able to reach our target consumers.

Situation Analysis

Mission Statement

Our mission is to establish a worldwide leading product to the solution of weight loss, beauty enhancement and physical body fitness. In clinical trials, the product has been tested and been proven to be safe and effective for users of all ages. Our manufacturer, Nutra, is private label manufacture for GNC. We intend to use ethical manufacturing practices, along with robust distribution channels to bring FlaBlaster to market.

Product Description – Features, Size, Shape & Design

Features

FlaBlaster cream is a product that targets people, who are looking for a quick and safe way to reshape, and tone their bodies without dangerous, costly procedures. Our product provides the quickest and safest way of toning and reshaping bodies because it’s a topical cream, which is non-invasive and has no toxins or chemical side effects. This cream is unlike any other cream on the market; customers will experience instant visible results within one use. It is the most cost-effective, non-invasive method in reducing fat in the body; comparable to liposuction. As soon as it is applied to the area a warming effect is experienced, which signals its immediate process of emulsifying fat. Customers, who utilize the cream, will visibly see a reduction in cellulite and a fat reduction within 30- 45 minutes after application.

Size

The original 32-ounce cream is packaged in a jar with a round open lid; trial size comes in a pump jar. The common sizes are convenient for shelving and handling. The cream is available in two sizes, 32 ounces and 24-ounce trial size. A package of 24 ounces is for a week’s supply, while a package of 32 ounces is for a month’s supply.

Shape

The cream is packaged in brown plastic PET opaque bottles. The opaqueness preserves and extends the shelf life of the cream. It also has a “green” refillable bag that is environmentally friendly. Moreover, the packing is colorful for shelf attraction.

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Design

FlaBlaster is a white, non-greasy, fast absorbing, and non-comedogenic cream. The whiteness of the cream symbolizes purity because the cream has no coloring agent added to it. As a design, the bottle has a wide opening, which enhances the use and accessibility of the cream. The cream package, Boston brown PET bottle, has a very attractive sleek design that appeals to customers.

Value Proposition

FlaBlaster will position itself as the leading fat-burning cream in the weight loss industry. Our firm intends to achieve this by gaining leverage over our competitors by having the only FDA-approved clinically proven product that actually shrinks fat cells topically. We offer our customers a product manufactured by Nutra manufactures which is the top worldwide private labeling manufacturing division of General Nutrition Center (GNC).

Nutra has had a strong commitment to delivering customers safe, reliable, environmentally conscientious products for over a century. Thorough research has been conducted to create a product that gives the best results at a reasonable price for customers of different backgrounds, ages and consumer power. We assure the high-quality, eco-friendly product that not only works, but it helps improve the lives of all consumers. Lastly, satisfying our stockholders with a profitable business through research, acquiring new equipment, creating reserves and launching new products (JNJ.com, 2014).

SWOT Analysis

SWOT Analysis

Critical Issues

FlaBlaster’s opportunities lie within its strengths. It has penetrated the weight loss market very quickly. The general public is more information-driven and health-conscious than ever due to studies throughout history linking obesity with a variety of health issues. The organization has partnered with GNC and The Vitamin Shoppe will place the product on shelves that individuals most interested in health and fitness shop on regularly.

Its unique quality of being a fat-burning cream is what will set this product apart from all the other weight loss products offered in these retailers. Along with being in these two health and fitness specialty stores, the product is being manufactured by one of the most reputable manufactures for dietary supplements. Nutra is an experienced manufacturer of “new wave” supplements. The company has given FlaBlaster the golden opportunity to be marketed alongside household brands in hopes that it will become a household name as well ( Nutra manufactures 2014).

Market Analysis

Macro Environment

There are several factors that can affect the performance and decision-making when it comes to FlaBaster. Because our product is environmentally conscientious there are government regulations, competition and market trends to consider.

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The ingredients are simple, yet complex. The product is made up of SAP, which comes from an English Ivy plant, cayenne pepper, and raspberry ketones. One problem that can affect our decision-making is the limitations on raw material supplies. Two of the main ingredients are SAP and ketones; which could become extinct because these ingredients are natural and exotic. If the environment changes, these ingredients may no longer exist. In addition, some of our competitors used ketones, making the supply limited as well. As of right now, there are no known government regulations that interfere with the sale or use of our main ingredients (Food and Drug Administration, 2013).

As for competition, GNC sells 249 weight-loss items, which many come from vendors, and weight loss or fat burning creams. This creates an advantage for our products because it will be the first item sold in GNC that is not considered a supplement, but a cream that works instantly (GNCincholdings.2013). This places us in an upper hand over other products sold by GNC. We also produce a quality product that ensures there is an instant effect on our users. Since our product is not produced by any other company we will be able to set the pace for other weight loss products. This will make us a leading company in the weight loss industry which will enable us to explore more ways on how to produce a quality product.

Another advantage is that market trends are leaning toward more FDA-approved products. FlaBlaster is FDA approved and will be more accepted by the growing culture of health-conscious consumers. According to the Food and Drug Administration (FDA), dietary supplements do not have to be FDA approved, thus, making customers feel more secure about using our products. Moreover, our product has a “state-of-the art” technology delivery system patent. Under Patent Law Article 57, FlaBlaster can be considered a “new invention”. Marketing it as a new invention that instantly shrinks fat creates an attractive appeal to customers (Princeton University 2013).

Market Size and Growth

According to Strategy (2014) Weight loss industry is rapidly growing. One of the important things that we are focusing on is the market penetration of a new product in a heavily competitive billion-dollar industry. The weight loss management industry was valued at an approximate value of $390.3 billion in 2010. This value was meant to rise at an approximate value of $671.8 billion by 2015. This is an indication of how the weight loss company is rising at a higher rate.

At this rate of growth, weight loss management has implemented various mechanisms and devices for distributing their products. They launched mobile health apps and solutions by connected devices so that their clients could access their products whenever they needed. This came through because different clients are situated and different places and all need to enjoy these weight loss products, therefore the need to make these products available to the customers was very vital. Our way of increasing the growth and size of the industry is by giving our clients a discount every time purchase weight loss products.

For instance, we usually give a 10% discount to our early buyers and for regular customers, we usually offer them 15% off whenever they purchase these products. We as a company have also implemented the current technology and system of delivering products to our users. This has the effect of increasing our product users all over the world due to the quality services we offer.

Market Appeal

FlaBlaster is entering the weight loss market. The growing number of obesity in the United States and the world at large constitute a big potential demand for the growing demand to resolve obesity without surgery such as bariatric or other dangerous weight loss treatments.

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  1. Strategic Significance: Currently there has been a tremendous amount of weight loss products that have claims to reduce fat or quick weight loss. However, there is no proven product on the market that does this. Over time, FlaBlaster intends to capture this audience.
  2. Market Scope: There is an enormous amount of small and larger companies entering the weight loss industry, making it difficult for market penetration and share. However, because of the vastly growing demand for weight loss worldwide, FlaBlaster can find a space and start to infiltrate with aggressive marketing campaigns.
  3. Potential for Revenue: There is lucrative potential in the health and beauty industry. The operating cost is relatively low to enter this segment, which can allow for a high return on investment. $10.00 is what we only require to produce one unit of FlaBlaster. While there exist entry barriers due to high competition, no one company has gained a dominant market share. There exist a high rate of failing companies and the existent is short-lived. Because FlaBlaster has a unique patent leaves great potential for sustainability (Kaho M, 2014).

Market Trends

In our research, we find that the needs of consumers change over time. According to health and beauty experts, there are evolutional physical changes in human beings every decade or so. For example, we intend to target the age group 25 years and over, but in the next few years, there is a trend targeting enhancement beauty products for 50+-year-olds. The demand has raised by almost 30%. This will exist because of their need to stay in the workforce longer and will need the use of beauty enhancement products, in order to keep competitive in the workforce (cosmeticdesign. 2014).

Considering the increase in beauty houses, our product has aimed at improving one’s beauty, not only for the teenagers but also for those who are already old but wish to fit back in the beauty competitions. We are working in line with the beauty houses since they are the main targets. The rise of various beauty contests has given the advantage to produce effective products. Lastly, we will target the highest obesity countries, such as Mexico which is now the leading United States, with a 32.8% obesity rate; with the United States running close at 31%. Right now, Mexico is a good future market with 70% of Mexico’s population either overweight or obese (nydailynews. 2013).

Our main aim is to reduce the number of obesity not only in Mexico but also all over the world. Diabetes is a fast-growing disease and in the future will affect many countries; therefore we are aiming at making the cases at a very minimal number possible.

Target Market Segmentation

The demographics for FlaBlaster’s market may initially and historically appear to be women, but the large number of potential customers who need fat-burning products are diverse. We expect to serve two segments of our target market, individual consumers and retailers. According to Markets and Markets (2011), a consumer research firm, obesity and weight gain are on the rise as evidenced by the increase of available products and devices on the market.

The individual consumer segment will consist of men and women between the ages of 18 to 60. They are active and very busy professionals with a mean income of $45,000 – $65,000. It is presumed that these consumers are concerned with appearance, but they don’t have the time or the funds for surgical removal of fat. Results of a survey on a study to determine the prevalence of non-prescription use of some form of weight lost supplements revealed that many adults were long term users and that race/ethnicity and education level were equal (National Center for Biotechnology Information, U.S. National Library of Medicine [NCBI], 2007).

The survey revealed the following additional demographics about non-prescription supplement users: 15.2% of adults had used; highest use by women between the ages of 18 to 34 (16.7%). According to data collected by the World Health Organization (2013), more than 1.4 billion adults, 20 and over are overweight in 2008” (“Obesity,” 2013). Of these over 200 million men and nearly 300 million women “had body mass indexes that indicated they had “excessive fat accumulation” (“Obesity,” 2013).

Considering the data, we can assume that the consumer will buy products that help reduce or eliminate fat that as a means of fulfilling a desire to lose body fat. The generate connection has become wider, with parents, teens and grandparents all working out together and attempting to lose the body fat together. The younger segment has much less income; however, the older segment understands the importance that society places on body image, so the parents will support the teens. As such the price is important, as these consumers are looking for value-added products. Using a strategy of multi-channels to distribute FlaBlaster will target consumers who identify with these groups.

Customer Analysis

  • Customer Needs – In the event of self-image and health comes to concern, customers want a product that will supplement their efforts on exercising and eating healthy. They are looking for a product that is easy to use, reasonable price, has a good feeling sensation and with visible results within the shortest possible time. And all in all, they need a trusted product that is approved by Food and Drug Administration. Our product, therefore, satisfies all these qualifications giving us customer needs an advantage.
  • Target Customers – The target customers for the FlaBlaster are men and women between the ages of 25 and 50, with the lower age range (18-25) possibly choosing a trial option and/or the regular option mainly and with the higher age range (25-50) possibly utilizing the spa option in addition to the trial and regular options. This is following the 20% increase in demand for the weight loss product in the market. We are also targeting customers who are obese and need to cut on weight. We are targeting beauty contestants since they need to be presentable at their job. Therefore we target most of the beauty houses due to the rise of beauty contests oblate.
  • Product Options – For many of the consumers that would prefer not to take a pill, the cream will be a better option. Advertising should include all our target customers in order to build the desired impact for the product, meaning a mother and a daughter in a spa receiving the treatment including the FlaBlaster, or a couple deciding to live a healthier life and include the FlaBlaster in the weight loss plan (eHow Money, 2014). The advertisement also should include the second option so as to create awareness that their product is not only limited at take pills but also the use of the cream.

Need Analysis

FlaBlaster’s unique ability to be used by men and women of all ages determines its target market to be just that, men and women of all ages. Men and women of all ages have sought out the ultimate weight loss solution. That solution has arrived.

  • Men: Our product is perfect for the modern-day man who wishes there were more hours in a day. It can be used at the customers’ leisure by simply taking a few minutes to apply the cream to the desired areas and proceeding with normal activities without the hassle of going to the gym or counting calories. It is also extremely affordable considering other weight loss products on the market today. Our product is also made convenient for use by men without any major side effects.
  • Women: It has the ability to benefit women customers in multiple ways. Not only does the topical solution rid the body of cellulite instantly, it actually burns the fat cells with a relaxing warming sensation great for spa relaxation or therapeutic massage therapy. It also improves the body shape of our women. Women in the current world require beauty through all means therefore our product is able to solve this major beauty problem. Our product also does not need all the tiresome procedures to cut weight such as going to the gym. This gives our women customers the advantage to be able to do all their tasks at a time without sweeting.

Competitive Analysis

Weight loss is a 2 billion dollar highly competitive industry with a high rate of a product launch failure. One of our major concerns is market penetration and gaining market share from our major competitors. Below are examples of direct and indirect competition such as Cutting Gel, plastic surgeons performing Liposuction and weight loss treatments.

Direct Competition

The product Cutting Gel is our closest direct competitor. It is currently the number one leading topically gel and owns a 12% market share. It specifically targets problem areas where fat pockets are found. It claims to have dramatic noticeable results in reducing fat, and transport through skin layers, to where fat is stored. It also claims to help prevent the development of new fat-storing cells. However, the results are not immediate. It can take up to 2 weeks or longer to be seen. There is no proven scientific or medical data to support its statements. Its main active ingredient which claims to reduce fat called Epridril; when researched is which a mysterious substance that has not scientific is finding. Cutting Gel is also very expensive, costing $79.00 dollars per bottle and offers no money-back guarantee (novexbiotech.com 2014).

Indirect Competition

The fat and cellulite burning product market has strong competition not only from those businesses that compete directly but from businesses that offer alternatives to giving the customers what they need. Some examples are liposuction and popular weight loss treatment such as body wraps. These services or products combined are responsible for over 50% of the market share in the weight loss industry. Liposuction currently is the most performed surgery in the US (Kaho M, 2014).

It reshapes and slims certain areas of the body by removing fat. Liposuction is considered plastic surgery and has certain risks involved. While there are other non-invasive procedures like Weight-loss programs that include wellness programs to help clients lose weight and burn fat through aerobic-type activities, and health clubs like Gold’s Gym and LA Fitness are other indirect competitors. Their weakness, however, is fact that the average overweight person has not successfully availed themselves of the products, because according to the Centers for Disease Control and Prevention, 69% of adults in the United States are still overweight and that number is increasing (“Obesity,” 2013).

Lastly, Body Wraps such as It Works Inc. is another indirect competitor offering body contouring applicator wrap that contains an all-natural plant-based formula that is created to tone and firm the skin with a few days. It is to be applied for 45 minutes at a time and results are shown within 72 hours of the application. However, the weakness of this method of weight loss is this product is mainly consisting of water loss. In addition, unlike Flablaster, this product is not advertised in stores, ads or television. It is only sold through networking or word-of-mouth and online (ItWorks.com 2014).

Strategy

Marketing Objectives

One of the most important goals is to increase sales and drive business among women and men between the ages of 25 and over. By end of 2018, we hope to increase sales by 5% each year from the number of people that initially purchased from our promotional launch. FlaBlaster is a trademark company. It also has a patent on its proprietary blend of active ingredients: Ivy, Capsicum, and Raspberry Ketones. This mix helps it create product differentiation (Kaho 2014).

  • Product Awareness- To become the only known beauty product that instantly shrinks fat cells upon topical application worldwide. In addition, also become a household name synonymous with manufacturing exceptionally high-quality products that actually live up to their claims. This will be accomplished by consistently running stimulating ads in high-profile magazines; such as Cosmopolitan, TV ads, using “word-of-mouth” and online advertising. A brief explanation of using our product will also be made necessary so to improve our product awareness. In addition, we also use powerful search engines so as our products can be found easily on the internet Google search. We will display the success effect of our product so that the customers can be aware of what our product can do.
  • Market Share, Growth and Continuity – Our Company intends to obtain a majority market share (75%) of the health and beauty industry. This will be accomplished by creating a strong marketing mix, product branding and continuously standardizing products internationally. The product will be priced relatively low, to quickly gain more of the market share we will also ensure that our international customers are not taxed highly so as not to pay highly. This will improve our market growth and share over other firms and companies and hence dominate the market (Kotler & Keller 2012).
  • Trademark and Patent- FlaBlaster has obtained a patent for its proprietary blend of natural ingredients Ivy, cayenne pepper, and ketones. Since our company is the only company providing FlaBlaster we will have the trademark and patent right to our product. Once having this patent has allowed the company to have a unique advantage over its competitors.

Financial Objectives

Nutra expects to launch FlaBlaster in the 3rd quarter of 2014 in GNC stores. We expect profitability to start in the 3rd quarter of the year 2015. The first year will be financed by funds budgeted for new product development funds. In year double-digit growth rate for the first three years. We expect 5% incremental sales growth in years 3 through 5. We do not only expect funds from our customers but also we intend to give out quality goods and services so as in return we get the funds at a higher profit. We expect our profit to be at a higher value than expected by the year 2015. This is following the rapid increase in the weight loss industry which expects to have billions of dollars by the year 2015. Our main financial objective is to meet the weight loss management profit set to be at the year 2015.

Positioning Strategy

Fitness is a goal that has many health and beauty benefits. FlaBlaster has the ability to shrink fat cells, resulting in weight loss. It reduces cellulite and tightens skin. The warming sensation during application is therapeutic during application. FlaBlaster’s only competitors are laser surgery and liposuction. Although both competitors are effective, FlaBlaster is the most convenient and safe procedure to get immediate results at a fraction of the cost. This gives us an upper hand advantage over other procedures used to cut body weight. The ease to use our product makes it convenient for our customers to use it. Its approval by the Food and Drug Administration is also making it trusted by many of our customers.

Product Strategy

FlaBlaster cream is a fat-burning product that has the ability to reshape the body instantly by shrinking fat cells upon application. FlaBlaster is an all-natural, non-toxic, and fragrance-free weight loss product. It is a cream that is offered in two sizes, a 24-ounce trail size white squeezable bottle for $24.00 and a one-month supply 32-ounce white open lid jar. Both containers are labeled with identical natural colored labels with an easy-to-read dark brown print. All containers and paper used in packaging are made from recycled plastic and paper. There is a 1-year warranty and a toll-free 24-hour customer service number listed just below the ingredients on each rear label.

FlaBlaster is distributed at GNC, The Vitamin Shoppe and at some participating spas that have trained technicians that specialize in the application FlaBlaster will take advantage of social media, word-of-mouth, location, and mobile marketing strategies to reach its target market. We also offer after-sales service to our product such as the procedure of how to use our product. We also give our customers some brief explanation and the history of our product. This is a way of advertising our products to the customers. We create awareness and interest to use our product.

Price Strategy

FlaBlaster intends to use Penetration Pricing Strategy primarily because we really want to dominate the market. Our pricing goal is set to achieve 50% of the market share. The product unique Liposome22 Patent will give us the edge in doing so. We have carefully priced each ingredient used, to figure out the total cost figure out our margin profit. The item is marketed at a moderate low- end, in order to gain volume sales and keep customers buying.

Therefore, it is priced at $40.00 and trial size $24.99. This price will attract price-sensitive customers. This also considers our target customers which are: housewives (18-50+), young adults 18-24) and men (18-50). We don’t want to lock our customers to use this product because of financial issues that is why we priced it so pocket-friendly. Our pricing procedure will also consider the product quality and its effects on our customers. Overall, we feel this is ideal pricing for FlaBlaster because it is not underpriced and recovers our cost; thus it is not over-priced which may drive customers away into the hands of our competitors (marketingplan.net 2012).

Distribution Strategy (Direct and Indirect)

FlaBlaster’s intentions are to have a direct storefront available exclusively at GNC, Vitamin Shoppe and FlaBlaster.com. Indirect distribution will be available at selected spas. We also offer our agents in different countries to distribute our goods. A good distribution of our product will ensure that we have the consumers’ comments and compliments about our products through the agents. This will help us improve on the quality of our product through this vital information from our customers. For our local distribution, we may offer door-to-door delivery of our products to our customers (Marketing Plan: Pricing Strategies, 2012).

Integrated Marketing Communication Strategy

The objective of the integrated communications strategy is to bring awareness of our product to the target audience and to increase the purchases of FlaBlaster by 5% in years three through five. The use of integrated communications will allow us to reach our target customers by promoting our product through the use of the most common promotional mix: print, media and internet. Magazine ads will be placed in the most common publications, like Good Housekeeping, Glamour, People and Healthy Eating.

Discount coupons will be inserted in the magazines, which will also be promoted on the television commercials by directing viewers to a specific issue of any of the magazines listed. Television commercials will be used to increase awareness in two ways. First, the commercials will drive customers to the company website, Facebook and internet social media sites. Secondly, the commercials will imprint the message of the product in the minds of the targeted consumer.

The commercials will be placed on the most-watched television channels: ABC, NBC, Fox, ESPN and TBN during the hours of the most-watched television programs, like Scandal, Game of Thrones, Monday and Thursday night Football and NBA’s All-stars Game programs. With the use of internet-based advertisements and social media like Facebook, YouTube and Google, we expect to reach a large percentage of our target audience (Marketing Plan: Pricing Strategies, 2012).

Branding

FlaBaster is the brand of fat-burning cream. The logo is an infinity sign inside a square flash box. The product lettering is white with a black label for the purpose of catching consumers’ attention. FlaBaster’s slogan “Fat here today, gone by tomorrow” and cation “removes unwanted fat in one application” will also appear on the label. We chose this slogan because it is true to our product, and is also chosen because it is catchy, simple and easy to remember.

The design scheme consists of a 32oz brown bottle with a black label with white lettering capitalized letters, which is the title. The white background keeps it simple, yet directs the focus straight to the bottle and title itself. The slogan is located directly under the name of the product in white letters as well. This way, the slogans describe the product without having the customers’ second guess or even consider another fat-burning product. It subliminally convinces and persuades the consumer to purchase the product.

Marketing Research

The proper research has to be done to inform the target market of FlaBlaster’s benefits and existence. Consumer research: Consumer research will be conducted by online surveys accessible at partnering distributors GNC, The Vitamin Shoppe, and participating spas websites. Our distributor’s website, Nutra, has also agreed to post our online survey. Industry reports will be studied of competing weight loss products such as supplements and offered at our distributors to take note of market trends over the past five years. These trends will then be used to determine decisions made on distribution and marketing tactics for FlaBlaster.

Financial Analysis

Break-Even Analysis

The break-even analysis indicates that $957,540 is needed in monthly revenue to break even. The break-even date is projected to be February 2015. In order to make a profit, the product sales count will need to exceed 122,460 per month, with revenue exceeding the break-even point of $122,460. (Refer to Appendices Table I).

Sales Forecast

We are projecting the FlaBlaster sales for the next three years starting in June 2014, followed by the next two calendar years (2015 and 2016). Starting with 500 units at the price of $40.00 for the full-size product, we project an increase of 100 units each subsequent month. This will bring an increase of $4,000.00 for each 100 units increase. Monthly reviews of the sales will be made in order to make adjustments to stay on track or to improve the sales (Refer to Appendices Table II).

Expense Forecast

The marketing expense forecast is an estimated marketing budget based on forecasted sales revenue. The startup year is projected from six-month estimation and annually from the year 2015 on. The first year is projected off 11% of sales revenue and decreases 1% every year for the next 2 years. (Refer Appendices to Table III)

Implementation and Control

Implementation

To implement and carry out sales of the product, FlaBaster successfully, we will first have to get buy-in from our sellers, which include GNC and the Vitamin Shoppe. We have to ensure that they understand the product’s purpose, sales goal, target market and more. Then, we will push out ads, TV commercials and internet ads to inform our targeted customers of the new exclusive product. Once customers begin purchasing FlaBaster, then as stated earlier, we will monitor the success of our product up against the marketing plan and projected sales. For additional success measures, we will solicit feedback from each customer target group.

Controls

To maximize the return on our marketing plan, the controls that will be used to monitor the progress of the FlaBaster product will be Target Market Sales. Given that our target customers are housewives, young adults and men, we will measure the progress based on the units sold to each customer target group each week to both GNC and the Vitamin Shoppe stores. This progress or lack of progress will be measured up against our marketing plan of projected sales. In addition, we will solicit customer feedback for the purpose of measuring progress to each customer target group.

Marketing Organization

“The structure of Nutra is based on the principle of decentralized management. The Executive Committee is the principal management group responsible for the strategic operations and allocations of the resources of the Company (“Senior Management,” n.d., para. 2). The committee that oversees the marketing functions is led by Linda Pendergrass, who oversees the consumer segment of the organization. The new product development and marketing team will report to Linda and will be led by Cherylene Anderson, functioning as the Product Manager.

Using the “brand-asset management team (BAMT)” horizontal structure, the product team will consist of the following positions: engineer (E), finance/accounting specialist (F), distribution specialist (D), sales manager (S), communication specialist (C), and market researcher (R) (Kotler & Keller, 2012, p. 625). The organization chart shown below represents the structure of the team.

Product Team Structure.
Figure 1. Product Team Structure (Kotler & Keller, 2012, figure 22.3).

Contingency Planning

In the event that Nutra is contacted with any questioning about patenting, as well as possible lawsuits due to confirmed cases of health setbacks caused by the FlaBlaster, the following procedures should be followed:

  1. Consult with our legal department in order to access the possible damage.
  2. Consult with our financial department for available funds to possible payoffs.
  3. Through our legal department, contact the legal departments for the subsequent companies in order to discuss patent issues and settlements.

We also have consulted with FM Global in order to establish cost-effective prevention-loss protection and decide on an insurance plan that will protect the company and value our business in order to remain loyal to our customers, employees and shareholders (FM Global, 2014).

References

Blanck, M., (2007). The use of nonprescription dietary supplements for weight loss is common among Americans. Web.

Center for Disease Control (2013). Obesity and overweight. Web.

Consumer Health Digest: Fat Loss Supplement Reviews. (2014). Web.

Currie, M. (2014). Example of target market analysis. Web.

FM Global:(2014). Protecting planning: Protection from the ground up. Web.

Food Drug Administration (2013). Code of Federal Regulations Title 21. Web.

Jones, T. (2012). Even the most expensive cosmetic creams cannot live up to claims that they repair skin from within, study finds. Web.

Kaho M. (2014). Examples of Marketing Objectives. Web.

Kotler, P., & Keller, L. (2012). Developing Marketing Strategies and Plans: Marketing Management. Web.

Marketing Plan: Pricing Strategies. (2012). Web.

Markets and Markets: Global Weight Loss and Diet Management Products and Services Market 2010 – 2015. (2011). Web.

Mathews, I. (2014a). Future Beauty Trends: Finding the Right TargetWeb.

Mathews, I. (2014b). Tapping into the Potential of Older Beauty Consumers. Web.

Miller, T. (7 July 2013). Mexico surpasses U.S. as world’s fattest nation: report. Web.

MyItWorks: Join the Therapy. (2013). Web.

Novex Biotech Inc: Cutting gel. (2014). Web.

Princeton University: State-of-the-art. (2013). Web.

PRWeb: (2013). Dr. Oz’s Capsicum Extract Weight Loss Supplement Review: What Science Suggests about New Capsicum Pure Cayenne Red Pepper Capsaicin Extract Product with CLA. (2013). Web.

Strategy: (2014). Invest only in high-growth markets with sizing methods that show the way. (2014). Web.

World Health Organization (2014). Obesity and overweight: Factsheets. Web.

Yahoo Finance: GNC Holdings, Inc. (2013). Web.

Appendices

Table I. Break Even Analysis.

Break-even Analysis
Total fixed expenses $ 122,460
Total fixed expenses ratio 4.23%
Break-even sales 122,460
Break-even % 4.29%
Operating profit $ 957,540

A Monthly Breakeven Table

Breakeven point.
Graph 1: Breakeven point.
5.1B Breakeven Analysis Table
Monthly Revenue Break-even $24,789
Assumptions:
Average Percent Variable Cost 14%
Estimated Monthly Fixed Cost $29,345

Monthly breakeven table

Sales and Cost Forecast.

Sales Forecast
2014 2015 2016
Sales
Females $201,300 $385,458 $412,540
Males $20,500 $30,540 $40,160
Total Sales $220,950 $410,100 $400,500
Cost forecast
Direct Cost of Sales 2014 2015 2016
Females $31,031 $44,500 $45,345
Males $2,400 $4,300 $4,350
Subtotal Direct Cost of Sales $27, 986 $51, 657 $52, 986

Cost forecast

Expense Forecast.

Expenses Forecast
June-December 2014 2015 2016
Magazine advertisement $5,000 $19, 800 $37,260
Television advertisement $10,000 $39 $74,520
Online advertisement $4,800 $39,600 $37,260
Total marketing expenses $19,800 $19,800 149,040
Percent of sales 11% 10% 9%

Table IV. Milestone Chart.

Milestone Chart
Milestone Start Date 2014 End Date
2014
Budget Manager Department
Marketing plan 1 March 30 March $957,540 Cherylene Anderson Management
Website 14 March 10 April $500,600 Rashad Pruitt Engineering
Budgeting 15 March 30 March $2,000,000 Michelle Brannan Finance
Transport 15 May 10 June $300,450 Brittany Goodman Distribution
Sales 15 April 30 May $122,460 James Keith Sales
Advertisement 1 March 1 April $19,800 Omar David Communication
Market research 1 March 30 April $200,500 Melanie Dealecar Research

Organizational Charts

Product Team Structure.

FlaBlaster

Instantly Removes Unwanted Fat in One Application

FlaBlaster

FlaBlaster

Convient 32.Oz & 24.Oz Pump
Convient 32.Oz & 24.Oz Pump

White cream, fast absorbent & non- greasy 

White cream, fast absorbent & non- greasy

Additional product Info

How It Works

Deep in the Amazon Rainforest Forest a group of scientist discovered an English Ivy plant, that when tested, the active ingredients SAP emulsified fat on contact (mdidea.com, 2013). According to Ramsey (2013), saponoids have therapeutic activity as they help in the absorption of lipids in adipocytes into the blood stream and thus speed their metabolism. The product includes some of the best proven fat burning extracts such as cayenne pepper (Capsicum) and Raspberry Ketones. Then these ingredients are mixed into a Liposome cream that transports these toning ingredients into the walls of the adipocytes through the skin.

When the active ingredients touch the adipocytes, they generate heat and cause adipocytes to heat up, rupture, and shrink. Eventually, the cream causes loss of fats in the adipocytes and contributes to weight loss (PrWeb.com 2013). The circumference area will be smaller if measured. The effects will be retained even if water is consumed, because it is not water loss.

Directions

Use twice a day, for one full week, preferable same time, and same area. Then use every other day until desired weight is achieved. First measure the area before applying and again after. Massage the cream for 3-5 minutes on an entire area (ie. back of the thighs). Wait 30-45 minutes, a visible realized. If, cellulite was present, the dimples will be decreased and the skin will be smoother and look tighter. If no cellulite, the circumference area measured will have a decrease in inches. You can still eat sensibly with using this cream and still lose the weight!

Disclaimer

We recommend that you eat a healthy diet and working out 30 minutes will enhance the results. Results will vary. If you have any medical conditions see a physician before using the product. All patrons use at their own discretions. Our labs or any affiliates are not held liable for any malpractices. We have a money back guarantee for any reason customers are not satisfied.

FlaBlaster Inc. Located: Flablaster Inc. 221 FlaBlaster Lane, Denton, Texas 92123 (202) 999-9999.

Manufacture: Nutra HQ

FlaBlaster Cream – Product Slogan- “Fat Here Today, Gone By Tomorrow”.

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BusinessEssay. (2022, August 24). Marketing Plan for the FlaBlaster Product. Retrieved from https://business-essay.com/marketing-plan-for-the-flablaster-product/

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BusinessEssay. (2022) 'Marketing Plan for the FlaBlaster Product'. 24 August.

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BusinessEssay. 2022. "Marketing Plan for the FlaBlaster Product." August 24, 2022. https://business-essay.com/marketing-plan-for-the-flablaster-product/.

1. BusinessEssay. "Marketing Plan for the FlaBlaster Product." August 24, 2022. https://business-essay.com/marketing-plan-for-the-flablaster-product/.


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BusinessEssay. "Marketing Plan for the FlaBlaster Product." August 24, 2022. https://business-essay.com/marketing-plan-for-the-flablaster-product/.