Total Protection’s Sunblock Product
Have you ever not been able to put sunscreen on a part of your body because you couldn’t reach? Have you ever missed a spot and got sunburn? A sizeable portion of the United States population may be having the same problem. The elderly and single, middle-aged adults are the target market for the Total Protection. The elderly may have lost the flexibility required to apply sunscreen to every bodily area that needs application. Even if they have the flexibility, they may miss a spot. This is similar to single, middle-aged adult population. If one can not completely cover his body with sunscreen, and there is no one around to help, what do you do? Use the Total Protection.
Total Protection is a revolutionary new device that assists you in applying sunscreen to those hard to reach places. To use the device, pour your sunscreen product into the rubber bottle at the end of the metal frame. Simply squeeze the trigger on the handle, and sunscreen is dispersed throughout the sponge. Then, rub the sponge over any bodily areas that you can’t reach. To clean the device, remove the sponge, wash the sunscreen out of it, and then reattach it. You’re done! Enjoy your day in the sun.
Why is the Total Protection worth pursuing?
The Total Protection is worth pursuing for a few reasons. First, the Total Protection is a product unlike any other on the market today. It helps those people who can’t completely cover their bodies in sunscreen because of inflexibility.
Second, the target market is the elderly and single, middle-aged adults. The population of elderly has been increasing steadily over the past few years, and is expected to increase at a greater rate in the coming years as the first wave of the Baby Boomer generation hits age 65. The single, middle-age adult population is another very large group within the United States. These people don’t have a significant other to put their sunscreen on for them if they cannot reach themselves, so they need our help.
Lastly, there is a great profit opportunity for the Total Protection, not only because of the large target market, but also because of the lack of competition. Our product is a device used to apply sunscreen. Other than the Total Protection, there are no other devices in existence that apply sunscreen. This could mean significant profits for our company if we play our cards right.
Key Features of the Marketing Plan:
The target market of the elderly and single, middle-aged adults is very large. There are no direct competitors because our product is original. Our product has no brand recognition, so we will have to increase its exposure for more brand recognition. The price of the each product will be $20 minus a percentage commission paid to West Albany Scrap Metal and minus other expenses. We will reach our audience using television advertisements. Major retailers like Walmart, Kmart, and Sams Club will carry our product. The financial estimates result in an $8.99 profit on the sale of each product.
The implementation issues include a lack of brand recognition because we are a new company that no one has ever heard of before, and a lack of financial resources because we are a new, start-up company.
Trips to the beach, picnics in the sun and enjoyment of the outdoors are but a few of America’s favorite pastimes and recreational activities in the sun. However, hobbies that expose our bodies to the sun can be dangerous to our health if we don’t protect ourselves accordingly. Sunscreen and sun-block are necessary ingredients for a day in the sun, and it’s easy to apply when there are friends and family to help. What about those people who enjoy these times alone? What about the population who doesn’t have a significant other to help with applying sun-care products? What about the people who don’t necessarily have the ability to apply sunscreen or sun-block to those hard-to-reach places? These people need an answer to their problem, and the answer is Total Protection.
The New Product:
Total Protection is an easy to use product that makes applying sunscreen or sun-block a hassle-free experience. A simple product, Total Protection has a long metal rod with a sponge at the end. Inside the sponge is a rubber tube that contains the sun-care product of choice; it dispenses through the sponge when activated by the customer. The customer does this by lightly squeezing the lever that is located on the handle. Now that the sunscreen or sun-block has been filtered through the sponge, the consumer can easily move the tool wherever they need the sun-care product to be applied! Now, without the assistance of anyone, a customer can independently apply sun-care products to any hard to reach places. Total Protection is perfect for single people who don’t have the help of significant others or for elderly people who lack the flexibility needed to apply their sunscreen or sun-block themselves. Total Protection is the perfect answer to this new market opportunity. People have been needing a product like Total Protection for a long time and now it can finally be available, and without a doubt, a success.
The target market for Total Protection will be single, middle-aged adults and the elderly. We chose this market segment because it has a large population that will only increase in the coming years. . According to the census, the elderly population will double from 36 million to 72 million people by 2030. The census also showed that the population of middle-aged people in the United States was around 30%; of that 30%, single, middle-aged people represented nearly 50% of the population. Based on the numbers, this target market is concise, and yet covers a very large market segment.
Did you know that more than 20 people a day die from skin cancer? The Skin Cancer Foundation found that over 1 million people are diagnosed with skin cancer each year (1). The process of applying sunscreen can not only prevent cancer, but prevent burns as well. Our target market of single, middle-aged people and elderly people need to be able to completely cover themselves with a sun-care product. Most people cannot reach all of the areas on their bodies that require sunscreen application. Analysis of the current market shows that there are numerous brands and types of sunscreen, but there has been no innovation in the process of applying either product. It should be relatively easy to persuade customers to use our product because there is nothing else like it on the market. Brand recognition is the biggest issue because people will not have heard of our company. The Total Protection makes it easy to apply sunscreen to even the most hard-to-reach areas, like the lower and middle back.
The Sunscreen Market:
Sunscreen can be defined as a lotion or spray that helps to protect the skin from the sun’s ultraviolet radiation. Overexposure to ultraviolet radiation can cause cancer. Currently, the sunscreen market has an extensive variety of competitors, including popular brands like Coppertone, Banana Boat and Neutrogena. The sun-care business has become increasingly popular in the past 20 years, as more studies have discovered the negative effects of the sun on the human body. In the year 2000, sunscreen sales totaled $850 million (Packaged Facts 1). Coppertone had the largest market share at 15%.
There are no direct substitutes for sunscreen. However, possible indirect substitutes for Total Protection could include beach-wear or just clothing in general. White-t-shirts for example, have an SPF of 15, meaning that it protects the body just as much as sunscreen. In general, clothing is a major substitute for sunscreen. Some people may choose to not even wear sunscreen.
The sun care market is very competitive because there are a vast amount of sunscreen companies, but the market is controlled by a select few. Coppertone, Banana Boat, and Neutrogena hold the largest market shares, and will not be easy to compete with. Fortunately, Total Protection applies the sunscreen product that the consumer chooses, but does not create it. This will lessen the competitive effect of our indirect competitors.
Key Point of Differentiation:
Total Protection is a unique product because it is not itself a sunscreen; it is a mechanism that applies the product that the consumer chooses. This factor makes our product stand alone in the industry and also presents an interesting opportunity. Since we apply sunscreen, we could possibly collaborate with our indirect competitors.
Possible Collaboration with Indirect Competitors:
Coppertone, Banana Boat, and Neutrogena are all very well-known sunscreen brands. If our company could license with one or all of those companies, they could provide the sunscreen products and our company could provide the device to put the sunscreen on (the Total Protection). The sunscreens could possibly be sold in packages with the Total Protection. This would gain exposure to the Total Protection and our company, as well as increase the sales of the sunscreen companies.
Like any other product on the market today, Total Protection has its share of strengths and weaknesses that will affect its success. Fortunately, this product could not be easier to use. By the simple pull of a lever, sunscreen or sun-block can be easily applied by almost anyone. Not only is it easy to use, but it is realistic and easy to produce. Its simple parts will prove inexpensive to our company, and the finished product will prove inexpensive to the consumer. Another benefit is that there is nothing like the Total Protection on the market today. Therefore, there are no competitors that will halt in our success! Total Protection is a unique product that offers the one and only way to solve people’s sunscreen application problems.
However, Total Protection is not without weaknesses. Because we are a start-up company, we have limited funds available to us. Also because we are a new company, we have no brand recognition. No one has heard of us before and therefore, will not respect our brand or have any loyalty to it. One more obstacle for the company is that the product does not have any sun-care products included. Because of this, the customer must go out and buy sunscreen or sun-block themselves and then manually insert it into the Total Protection. This may shy some people away from buying the product. The last weakness is that the Total Protection cannot be folded for easier transportation.
Ethical, Environmental, Legal and Political Considerations:
We also must consider the legal side of marketing this product. There are no other products like the Total Protection on the market, so the worry of legal problems, such as copyright infringements is almost nonexistent. However, our company should patent this product immediately to avoid any other companies copying the idea. Because it is such a basic product, it would be very easy for another business to base a new product on our idea and use it to their advantage.
After researching numerous companies, we have chosen West Albany Scrap Metal as our production partner. Licensing with West Albany Scrap Metal will allow us to keep the cost of supplies and production low because their company owns a production facility and has access to not only metal, but sponges and rubber as well. West Albany Scrap Metal uses recycled materials in their production process. Since our product uses only recyclable materials, it was relatively easy to persuade West Albany Scrap Metal into producing our product. West Albany Scrap Metal has agreed to produce the Total Protection in their facilities and then distribute the product through their downstream channel members. The estimated costs are as follows: the metal is $0.35, the rubber is $0.20, and the sponge is $.15. The total cost to West Albany Scrap Metal is $0.70 for each product produced. Their company will charge us $1.00 per item produced and then take a 15% commission on our total revenue for the year.
Downstream Channel Members:
West Albany Scrap Metal supplies the products they create for other licensed companies to many well-known retailers such as Walmart, Kmart and Sam’s Club. Walmart, Kmart and Sam’s Club all have deals with West Albany Scrap Metal, allowing each of them to carry any products that West Albany Scrap Metal produces. The distribution will not cost our company a cent because all of the retailers who work with West Albany Scrap Metal send vehicles to pick up the products. Since West Albany Scrap Metal will be negotiating with the retailers instead of our company, it should be easy to convince the retailers to carry the Total Protection.
One important aspect that we believe will make the Total Protection successful is that it is environmentally friendly. West Albany Scrap Metal uses only recycled products in its production process. By adding the added benefit of being environmentally friendly into our advertising, we are more likely to attract environmentally conscious consumers, who will respect our efforts to minimize our affect on the environment. This extra effort to be environmentally conscious puts our company one step ahead of our competitors.
There are no unfavorable factors that affect the environment. The Total Protection is made completely from recycled materials and therefore, can once again be recycled when it is no longer useful.
What makes this opportunity attractive?
Why should this idea be pursued? Why not!? The market and its opportunity are wide open and should be utilized immediately! This easy to use, attractive product has little holding it back from the road to success.
Why should this venture be successful?
Lack of competition, low price, and large, easy to reach target market are only some of the reasons that Total Protection would succeed in the market today. Although the company will have to be persistent in its marketing efforts, once the word of the product has reached the public, its popularity will skyrocket. We will need a strong marketing team in order to market our product. Our strategic plan will have to be specially made to introduce our product to the market, in order for the process of brand recognition to begin. Although it will prove a challenge to get this product on the map, the success will ultimately be worth the struggle.
The consumer market can be divided into six market segments. These segments are as follows: elderly, single, middle-aged adults, middle-aged adults in a relationship, married middle-aged adults, teens, and children. Our target segment is the elderly and the single, middle-aged adults. These two segments are very attractive because they are both very large. The elderly population has increased in the past couple of years. The U.S. Census Bureau’s latest population projections show a significant increase in the elderly population starting in 2011, as the Baby Boomer generation begins to turn 65 (U.S. Bureau of the Census 6). This amounts to about 12% of the total United States’ population. The single, middle-aged adult population also represents a large portion of the population.
There are no direct competitors of Total Protection because the Total Protection is the first product of its kind. The indirect competitors are all sun-care companies. The main target of all sun-care companies is anyone who is in the sun for an extended period of time. Although the target markets are usually everyone, many commercials and advertisements are geared more toward children by instilling the idea of protecting the kids. The point of differentiation with Total Protection is that it is a device to apply sunscreen, but not a sunscreen itself. The Total Protection applies sunscreen by simply rubbing the sponge on your skin. Our positioning statement is: “To the elderly and single, middle-aged adults who needs help applying sunscreen, the Total Protection is a revolutionary new device that can be used to easily apply sunscreen.”
The following statements describe the Total Protection using the layers of the product concept. The Total Protection core benefit is offering protection from the sun’s harmful rays. The actual product accomplishes this because it is a device that can be used to apply the sunscreen that protects from the sun’s harmful rays. The augmented product is the Total Protection which comes with a life-time warranty, replacing unintentionally damaged products for free.
The brand name of the product is Total Protection. The brand image portrays a product that is useful to people who are in the sun. The brand positioning is made up of the product’s attributes, benefit, and its related beliefs and values. The attributes of the Total Protection are that it is easy to use, easy to clean, and has a sturdy, durable structure. The benefit of the Total Protection is that it allows people to protect themselves from the sun, by assisting them in applying their sunscreen. The beliefs and values related to the Total Protection are that it will help to keep your skin healthy and beautiful.
West Albany Scrap Metal manufactures the metal, rubber, and sponges necessary for the Total Protection for a total cost of $.70. They can make the metal for $.30, the rubber for $.20, and the sponge for $.15. In order to produce our product, West Albany Scrap Metal has agreed to charge $1.00 to produce each product, and also take a 15% commission on the year’s total revenue.
Our company’s pricing objective is to set the price at a level that is reasonable, but can lead to significant profit. Competitive pricing is not necessary because there are no direct competitors.
The positioning strategy of the Total Protection has been geared toward the elderly and the single, middle-aged adults because they represent our target market. Because he Total Protection has been advertised on television, it will be sold in retail stores such as Kmart, Walmart, and Sams Club as an “As Seen on TV” product.
The perceived value of the Total Protection is exactly what the customer gets. We advertise a product that helps people apply sunscreen, and that is exactly what it is. There are no tricks. What you see is what you get.
As stated before, there is no direct competition, so competitive pricing is unnecessary. This allows our company to choose a price that we see fit for the Total Protection. The price of the Total Protection will be $12.99.
The target market we intend to reach with the Total Protection is the elderly, and the single, middle-aged adults. We developed a commercial with the message that the Total Protection is a quick, easy way to apply sunscreen to those hard to reach places on your body. The Total Protection is a creative concept because no one has ever done it before. As stated above, it is an innovative, new product that works both effectively and efficiently. The promotional tool used to market the Total Protection is the television, which is why we created a commercial.
The upstream channel supplier that has agreed to license with our company is West Albany Scrap Metal. The Downstream channel retailers that have agreed to sell our product are Kmart, Walmart, and Sams Club, all of which already have agreements with West Albany Scrap Metal to sells its products. We chose West Albany Scrap in part because of its ability to produce our product for a low price, but also because of its connections. Since West Albany Scrap Metal has deals with Kmart, Walmart, and Sams Club already, our company does not need to search for channel alternatives. Any problems that we encounter will be dealt with by our management in coordination with the management of West Albany Scrap Metal and its downstream retailers.
Unit contribution = selling price – unit variable cost
Unit variable cost = cost of goods sold / # units sold.
Unit Contribution = $12.99 – ($1.95 x 10,000)/10,000
Unit Contribution = $11.04
The selling price of the Total Protection is $12.99. The 15% commission results in a cost of goods sold of $1.95 per unit. We anticipate a sale of 10,000 units during the first year. Therefore, the resulting unit contribution is $11.04.
The fixed cost each year will be $19,500 because West Albany Scrap Metal will produce 10,000 products a year, with each product costing our company $1.95.
The total market size is 4,750,000 people. The total population in New York State is 19 million people (U.S. Bureau of the Census 1). The elderly represent 12% of the New York State population (2,228,000 people), and the single, middle-aged adults represent roughly 13% of the New York State population (2,470,000).
Break Even Point = Fixed Costs / Unit Contribution
Break Even Point = 19,500 / $11.04
Break Even Point = 1,767 units
Break Even Market Share = Break Even Point / Market Size
Break Even Market Share = 1,767 units / 4,750,000
Break Even Market Share = .000372 x 100
We need to capture less than 1% of the market in order to break even. This appears to be very feasible and easy to attain. Our expected revenue in the first year is $110,400. This amount represents our unit contribution of $11.04 multiplied by the products we expect to sell, 10,000 units. From $110,400, we must subtract the West Albany Scrap Metal’s 15% commission (total of $16,560) and the $.30 that they make when we are charged for the materials used in the production of each product (total of $3,000). This results in a profit of $90,840 for our company.
In realizing our plan, there are a few critical issues that must be dealt with. First, we have no brand recognition yet since we are a new company. Second, because we have no brand recognition and we are a new company, we have no brand loyalty. Lastly, we have limited funds because we are a start-up company.