B&B Soaps

Marketing Proposal of

Beard and Body Soaps

Final Project

MKT302a

December 4, 2017

Executive Summary
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Beard and Body Soaps or B&B Soaps

Mission: To provide uniquely scented, all natural products to the discerning male through high
quality, small batch processes, and excellent customer satisfaction.

Business Description: B&B Soaps only uses locally sourced, organic or completely sustainable,
fair-trade and eco-friendly ingredients in its products. B&B Soaps combines unique ingredients
and attractive scents to give men better options when it comes to keeping themselves feeling and
looking great. B&B Soaps is tailored by men for men with the slogan of Who says rugged men
cant smell good? and Making you and your beard look better.

Product: Mens all natural soap products formulated for beard and body use. Advantages of use
include softer, more manageable facial hair and specific product formulations to address specific
conditions such as dry skin, oily skin, acne and beard dandruff (beardruff), while still smelling
manly.

Technologies:

Social media marketing and online selling through company website.

Small batch processes with sustainable, locally sourced ingredients
Company produced ingredients such as distilled essential oils.
Flat rate shipping

Markets: Environmentally conscious men between the ages of 20-50 with income levels
between $30,000 -$70,000 with facial hair who enjoy the outdoors, beer, like to be clean, and
smell like men.

Distribution Channels:

Social Media
Company Website

Competition: Local more established soap companies and larger all natural corporations such as
Burts Bees and Yes10.

Industry: Bar Soap Manufacturing NAICS Code: 325611

Mission Statement
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According to the Business Dictionary, a mission statement can be defined as, A written

declaration of an organization's core purpose and focus that normally remains unchanged over

time (Business Dictionary). It goes on to further describe the three functions mission statements

should cover, (1) serve as filters to separate what is important from what is not, (2) clearly state

which markets will be served and how, and (3) communicate a sense of intended direction to the

entire organization (Business Dictionary). Using these criteria, the mission statement of B&B

Soaps comes into focus. To provide uniquely scented, all natural products to the discerning male

through high quality, small batch processes, and excellent customer satisfaction. B&B Soaps

only uses locally sourced organic or completely sustainable, fair-trade and eco-friendly in its

products. B&B Soaps combines unique ingredients and attractive scents to give men better

options when it comes to keeping themselves feeling and looking great. B&B Soaps is tailored

by men for men with the slogan of Who says rugged men cant smell good? and Making you

and your beard look better.

SWOT Analysis

Marketers must understand the current and potential environment in which the product

or service will be marketed (Lamb, Hair, Jr, & McDaniel, 2015). A Strengths, Weakness,

Opportunities and Threats Analysis, better known as a SWOT analysis, is key in developing a

marketing plan as it allows for an in-depth look at these components in relation to the business

and its prospective operations.

Strengths
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Most small business soap company owners are typically females whos target market is

other females, leaving the male market virtually untouched. According to recent data, Natural

and/or organic personal care sales have rocketed to $4.3 billion [2005], and may reach $6.6

billion in 2010 -- a jump of more than 50% (Market Research, 2005) with more current

information detailing even higher expansions within the market, Forecasts that the U.S.

consumer market for natural and organic skincare, haircare, and makeupwhich during 2005-

2010 boomed 61% to $7.7 billioncould top $11.0 billion as of 2016 (Packaged Facts, 2011).

While this market is clearly growing, there has been little development in companies applying

solid marketing tactics involving: developing their brand and logo, implementing customer

relations management (CRM) strategies, or utilizing current technologies such as social media or

selling through an owned website. Branding should be the focus of any company as it identifies

and separates the businesses product from the rest. A crucial component of this is the use of a

logos, slogans and packaging to convey these messages. B&B Soaps will implement designs to

incorporate themes of old fashion, outdoors, and ruggedness that will not only convey the type of

product being offered, but will give it distinctiveness which is absolutely necessary in the soap

market while appealing to its male market. B&B Soaps will utilize its website, paired with social

media platforms, to develop a CRM strategy. This will enable product reviews and not only

business to consumer (B2C) interactions but consumer to business (C2B) interactions which is

not currently being done in this market. B&B Soaps will take advantage of thorough research in

formulating product recipes before its initial launch to ensure uniqueness, quality and most

importantly demand. This will be conducted through a family and friends network in which

samples will be distributed in which individuals will then submit feedback on the product. By
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focusing on these key areas of neglected marketing, B&B Soaps will have a clear and distinct

competitive advantage over other soap companies.

Weaknesses

As a new business, there are many challenges that pose weaknesses and even the best laid

plans can lead to ruin. Lack of experience using online selling platforms, starting, and owning a

business are likely the largest weak points for B&B Soaps, not to mention the permits and other

legal requirements involved. While the initial investment may be small in comparison to other

small businesses, a slow start and the high cost of marketing can quickly require outside funding

and loans to keep the business going. Investors may be hard to come by as soap companies are

not known for high profits due to a typically saturated market.

Opportunities

With more and more individuals becoming conscientious of the ecological impact of

businesses and their products, they are looking for alternatives that promote sustainability.

Likewise, there is a growing movement toward small business patronization and away from large

corporations. The lack of masculine marketed soap products leaves this niche market widely

available and the lack of market penetration from current natural soap companies gives

opportunity for large growth. B&B Soaps looks to take advantage of small initial costs to

develop high quality products before market implementation. The use of social media as a

marketing platform is still relatively new, even for larger businesses, and capitalizing on this

early on offers lower cost yet still effective marketing strategies. Special promotions and

discounts such as: serviceman discounts, loyalty rewards, and subscriptions similar to an of the
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month club will also drive website traffic and sales as they are not currently available through

other soap companies. As a non-perishable product, B&B Soaps will be able to take advantage of

small batch production which leads to cost effectiveness in staging inventories.

Threats

Many of today's products and services are so similar to each other that the only

difference is in their marketing (Levinson, 1997) and in the soap business this could not be

more true. The biggest threat is loss of product individuality due to the sheer amount of small

business soap companies. To the consumer, you become just another name in a list of hundreds

of the same product. Another threat is the time to build substantial penetration into the target

market. At a certain point the cost of production will level off but marketing will continue to be

an expense and with no profit being made the company could potentially bankrupt. On the other

hand, successful marketing could lead to demand out-pacing production capabilities which could

cost the company significant profits and damage its image of reliability. The possibility for large

companies to enter the market is also a threat as they could push out smaller businesses due to

larger production capabilities allowing them to price at lower profit margins.

Objectives

While the aim for any business regardless of size is to make a profit, there must be other

specific goals that enable focus and forward momentum for the organization. B&B Soaps goal

of providing excellent cleansing products for men can only be realized through specific targeted

market analysis, implementation of this market data, and cost effective production and logistics

processes. Targeted market analysis for B&B Soaps consists largely of initial market data
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gathered through other soap competitors. By visiting stores, trade shows and other online selling

platforms, B&B Soaps will gain valuable information regarding pricing, packing, distribution

methods as well as demographic information to find competitive advantages. Another form of

market analysis will involve reaching out to friends, family, and initial consumer base through

questionnaires or short surveys to gather information on product preferences and purchasing

habits. By gathering this data early on, B&B Soaps will have stronger marketing foundation

when introducing its brand, leading to increased marketing success through proper utilization of

this information. Cost effective production and shipping methods involving zero waste practices,

small batch processes, and flat-rate shipping will help keep operational costs low, enabling a

large focus towards continued marketing efforts. This works to establish B&B Soaps short term

goals of quick market introduction, adaptability to new market demands and feedback, and

timely consumer transactions. These short terms goals will the work toward B&B Soaps long

term goals of: name brand recognition, establishing multiple product lines, and continued

consumer loyalty. Through the use of these goals and strategies B&B Soaps will quickly gain

market share as well as maintain profitability.

Target Marketing & Positioning Strategy

Targeting a specific market does not mean that you have to exclude people that do not

fit your criteria from buying from you. Rather, target marketing allows you to focus your

marketing dollars and brand messages on a specific market that is more likely to buy from you

than other markets (Porta, 2010). A commodity product, such as soap, can be used by anyone,

as most individuals use, or should use, soap on a fairly regular basis. B&B Soaps looks to take

this common place, convenience product and make it a heterogeneous shopping product. This
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means creating a clear market differentiation between B&B Soaps and other soap companies

known as positioning. Position is the place a product, brand, or group of products occupies in

customers minds relative to competing offerings (Lamb, Hair, Jr, & McDaniel, 2015). The

role of positioning is to give an overall image to potential customers, setting one's business

above competitors and adhering to the customers wants and needs. In order to achieve this type

of differentiation, B&B Soaps not only needs to identify the type of individuals to which it

intends to reach, but how to take advantage of distribution and marketing channels not currently

being used in the industry. Traditionally, commodities are purchase as a part of a households

routine grocery shopping in which females are the most prevalent participants. This trend has

steadily diminished over recent years as men are just a likely to be performing these duties for

the house. With few options available in most commercial retail markets targeted toward men,

B&B Soaps aims to infiltrate this opportunity. In targeting the male demographic, B&B Soaps

looks to leverage the trend toward eco-friendly products as well as the growing beard trend.

These types of individuals are often looking for more masculine products to aid in their rugged

appearance to which B&B Soaps scents and ingredients will also aim. These types of individuals

look for unique or novelty products that cater to their appreciation of taking care of themselves,

but in manly fashion. B&B Soaps will also implement use of social media to match this

demographics high level of this medias usage to encourage consumer participation in new

product formulation and reviews as well as take advantage increased visibility due to word of

mouth. Using these targets within its ideal market, B&B Soaps can define its target market as

environmentally conscious men, between the ages of 20-50, with income levels between $30,000

-$70,000, and facial hair who enjoy the outdoors and beer.
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Marketing Mix Strategy

A Marketing Mix is a unique blend of product, place, promotion, and pricing strategies

designed to produce mutually satisfying exchanges with a target market. (Lamb, Hair, Jr, &

McDaniel, 2015). According to the Business Dictionary, this strategy is A planned mix of the

controllable elements of a product's marketing plan commonly termed as 4Ps: product, price,

place, and promotion. These four elements are adjusted until the right combination is found that

serves the needs of the product's customers, while generating optimum income (Business

Dictionary). The marketing mix strategy is therefore key to the successful launch of B&B Soaps

or any organization for that matter.

Product

B&B Soaps products are as the company name implies, Beard and Body Soaps. To keep

in line with current soap market trends and consumer usage behavior the product will be offered

in standard 4oz bars and 1oz trial sizes. The soaps themselves will feature unique base

ingredients such as varying types of beer or soda to further the appeal to men. Not only does this

contribute to the image and scent of the soap, but the actual chemical makeup of including these

ingredients generates a richer lather due to increased sugar content over traditional soaps. Other

ingredients will consist of essential oils and a wide range of carrier oils which will determine the

final texture, scent and specific attributes of the soap such as anti -inflammatory, moisturizing

and conditioning properties. Additional additives such as coffee grounds, oatmeal and other

abrasives can be added to reach desired textures, create appeal, and add to the functionality or

appearance of the soap. All B&B Soap products will carry the brand logo on the product as well

as packaging to create brand identification and recognition. Packaging will be 100% recycled
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materials to further back the environmentally sustainable ideals being promoted by the products

themselves.

Pricing

Ann Logue, the author of Hedge Funds for Dummies, wrote, businesses may want to

start with low introductory prices. Its a common strategy to do promotional pricing to tell the

world who you are and what you do (Logue, 2012). B&B Soaps will use a market penetration

pricing strategy in that most products will cost less than those of its direct competitors. This will

encourage new consumers to try the products as they shop for cheaper alternatives or new

experiences. This strategy will carry on with introductions of new products throughout the

companys life to keep consumers buying and trying new products or product lines. While most

independent soap companies price 4oz bars starting around $7, depending on ingredients. B&B

Soap will offer all of its 4oz bars at $6.50 with trial sizes at a $1.75. Additionally, pricing per

ounce will decrease with increased basket size to encourage larger purchases. Example, a

purchase of 6 bars costing $34 which equates to a $5 savings over purchasing six bars one at a

time. Discounts will also be offered to servicemen such as Police, Fire of Military personnel to

show appreciation and appeal to these submarket categories. Free shipping above a specified

basket size will also be available as well as promotional codes as explained in the promotion

section.

Promotion

For small businesses, savvy marketing can make a major difference in overall

performance, especially when it comes to promoting products and services to loyal and

prospective customers (Make Your Small Business Marketing Plan "Sizzle", 2014). Promotion
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can make or break a small business as it typically relies heavily on these strategies in order to

build market share and customer loyalty. B&B Soaps will take advantage of promotional pricing

and the use social media platforms in ways that are not currently being utilized by other soap

manufacturers. B&B Soaps promotional strategy starts with it use of beer or soda to incorporate

similar terminology in its products and specials. 1oz trial sizes will be called shots and bars can

be purchased as singles or in a six pack. Promotional offers such as Buy two bars get a free

shot will not only encourage larger basket sizes but also allow the consumer to try varying

products. Loyalty programs such as a Bar of the month club style subscription will also offer

discounted rates starting at $62 which is a 20% saving over the same individually purchased

products. This type of promotion entices consumers to take advantage of the saving by making

larger purchases than they might do otherwise. B&B Soaps will take the clearest advantage with

its use of social media promotions. Offering free shots to individuals who like, subscribe, share

or #hashtag its products. This will create a much larger social media foot print using word of

mouth marketing instead of traditional paid advertising. Having an extra star on a review site

can cause the revenue of a business to rise by five to 10 percent, so there is a direct connection

between ratings and a business' bottom line (Make Your Small Business Marketing Plan

"Sizzle", 2014). Creating customer loyalty through product reviews hosted on the companys

website as well as other product review sites such as Yelp will be furthered by offering new test

products free to selected individuals to gain better consumer data. Targeting specific opinion

leaders through social media to gain increase market share is another promotional strategy B&B

Soaps will employ. These leaders will be sponsored to mention B&B products in their videos or

on their pages along with promotion codes to be used by their followers to generate additional

site traffic and profit.

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Place

B&B Soaps products will be offered on a company owned website that features product

information, reviews, and FAQs as well as general soap information, and company policies and

practices. This will be the spring board for B&B Soaps social media usage as there will be direct

RSS feeds from traditional platform accounts such as Facebook, Twitter and Instagram

embedded in the website, creating a singular point for B2C and C2B information and interactions

to take place. B&B Soaps will integrate a flat rate shipping strategy to help standardize costs and

create more accurate and controllable profit forecasts. Distribution channels may eventually

incorporate retail chains such as Target and 3rd party sellers such as Amazon, but this level of

distribution is not currently forecasted for.

Implementation

Implementation or the actuality of all of these ideas and strategies culminating into a

successful enterprise is dependent funding and enough of it to sustain the business until it

becomes profitable. Initial product development could take months to a few years, depending on

available time, with the formulation of recipes and product testing to ensure desired effects. This

process is relatively cheap and will be accomplished out of the owners initial personal

investment. Once a substantial product base is formulated, the actual launch of the company will

likely require outside funding through bank loans or partnership investors. This will involve

covering all legal aspects such as licensing, copyrights or trademarks, attorney fees and city

and/or state permits, as well as initial materials and equipment costs. Payment for production and

upkeep of the company website will be maintained by the company or potentially sourced to a

family friend that owns a consulting business specializing in social medias. The business will be
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run out of the owners residence until the point in which production demands larger facilities in

which specific rented or owned space will be acquired solely for the companys operations.

Conclusion

Soap may be a common every-day item, but B&B Soaps looks to change this

mentality into one that is sought after by men who not only want an environmentally conscience

product but one that is made with their needs and preferences in mind. By carefully curating

recipes to attract and keep its targeted male markets, B&B Soap will deliver high quality and

recognizable products through its utilization of social media and online services. With high

attention to marketing strategies and branding tactics, B&B Soaps looks to quickly become a

well-known brand with a reputation for excellence.

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