Management Capstone Proposal for the Project

Introduction

The recent past has seen changes in the world economy. One of the aspects that have varied is the spending habits of consumers. Moreover, there has been economic growth in both developed countries and those with emerging economies. Such tendencies have changed the marketplace and increased the demand for luxury goods. Besides, the Internet has also made marketing easier. Marketers have the ability to reach a large number of people within a short period of time and get direct feedback from the current as well as prospective customers.

At the same time, it is cheaper as the cost of advertising is not as expensive as in the traditional platforms such as the electronic and the print media. The current paper presents a capstone proposal for the project, which is a new high-end perfume packaged in 500 ml bottles and manufactured to meet customers’ preferences, especially in light of the changing market trends and economic advancements.

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High-end Perfumes

The research has shown that there is slow but steady growth in the demand for luxury goods. Such products include luxury cars and expensive services such as tourism and cosmetics. We are mainly concerned with the market for high-end perfumes. Although there is an increased demand for them, there were only a few manufacturers who met the criteria of the consumers. The world market has changed in such a way that customers are more aware of the available choices. They are willing and ready to pay any price for a particular product provided they get the quality they want (Kamakura & Mazzon 2013).

Packaging

We intend to make a unique product that meets consumers’ specifications. Currently, the product is packaged in a 500ml bottle and is mainly sold in the United States. The bottles are made of attractive glass in the shape of a minaret. There were incidents when the labels on the packaging came unstuck. The business has solved this problem by having all the information about the product type on the bottle. The products are also available in the Chinese market. However, there are plans to reach a greater number of customers. Since it is a high-end product, the pricing is high too. The 500ml package deters many potential customers. That is why there are plans to have the product packed in smaller bottles in order to get more clients.

Selling perfumes in smaller bottles involves additional expenses. The suppliers sell bottles of all sizes at the same price. Therefore, the smaller size packaging is likely to be more expensive when compared to big bottles (Kamakura & Mazzon 2013). Despite this fact, there is a need to do that to reach a greater number of consumers.

Legal Requirements

Our high-end perfumes fall into the category of cosmetics. There are certain requirements that are to be met before getting to this market. One of the requirements is the safety of the product. In some cases, there were perfumes that hurt users by causing allergic reactions. Our products have gone through strict laboratory testing to ensure that are safe for the clients. Therefore, they meet all the criteria that are set by the FDA (Hall 2013). They are also of the highest quality, and the distribution is closely monitored to ensure that they do not get adulterated.

The products are made under very strict conditions and, consequently, there are no questions about hygiene or sanitary norms. Additionally, the ingredients that are used in the manufacture are taken from trusted sources, and they all have been tried and approved by the relevant authorities (Kamakura & Mazzon 2013).

The labels on the products are also very secure in terms of listing all the ingredients that were used to make the products. There are some consumers who do not use alcohol-based perfumes. The business puts the label on the bottle, which says that the product contains alcohol to eliminate the chances of the consumer purchasing the product without full knowledge about its composition. In addition, there is a label that tells the customers that the product is for external use only, as required by law. Moreover, due to their attractive packaging and smell, the perfumes are likely to be taken by children. There is a caution on the bottle that it should be kept away from children.

Perfumes are also packaged in transparent glass containers. Glass is one of the best packaging materials for cosmetics, especially for perfumes. Technology has helped to make hard glass, which does not break easily. It makes the merchandise be easily transportable without worrying that it can get destroyed while being in transit. There is also a factor that glass does not react with most substances. It means that the nature of the perfume will remain the same long time after it has been packaged. By following the above standards, we are meeting both the legal requirements and the needs of the consumers (Nwankwo, Hamelin & Khaled 2014).

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The Manufacturer

We have collaborated with the Guangzhou cosmetics company to make the products. There are several reasons why this company was chosen over the other American companies. One of the reasons is the availability of cheap labor in the country. Therefore, the cost of production is going to be lower as compared to other countries. There is also the factor of tax regulations. China does not have a thriving cosmetics industry (Kamakura & Mazzon 2013).

Consequently, in order to encourage the growth of the industry, there exists a friendly tax regime, and we found that we could take advantage of that. There is also a growing number of the middle class in the country, and it will provide a market for the products. However, the initial market is the United States, which has a mature customer base for the cosmetics industry. Indeed, the products are already on sale in the country, and the reception is very positive.

New Markets

As stated earlier, the main market is the United States. We are banking on the quality of the product and the ready market to provide a good start for the perfume. However, it will last only during the initial stage. There are other markets that are under consideration, and the goods will be sold in them soon. One of the new markets that are being targeted is China (Kravets & Sandikci 2014).

There are many prospective customers in this country, and they will form a good market. However, we are not restricting the market to these two countries only. There is a ready demand in the whole world, and we are planning to apply the best marketing techniques to reach the masses. There are also plans in place to spread over the emerging economies. After that, we will be able to extend our influence all over the globe.

The business has employed researchers in different markets, who will devise the best strategies that can be used to access these markets. One of the places of concern is India. There is a big population there and the already existing market for cosmetic products. However, the government of India is very keen on protecting the local industries from international competition. There are tariffs and other taxes on imported cosmetic products that are meant to make them more expensive than the locally produced goods (Kravets & Sandikci 2014). The company has plans of getting to this market as there is a big and growing customer base that is not concerned about the price. Since our products are of the highest quality, we expect to break into this market despite some obstacles.

There is also the South African market, which our business is interested in. It is viewed as an important base as it will help the company to gain entry to all of the southern and central Africa regions (Kamakura & Mazzon 2013). Although there are no high tariffs or any other protectionism policies in this market, it cannot be considered as a profitable one because of its immaturity. Despite that, the business considers it important due to the location and the potential it has.

Target Market

To maximize profits, there are plans to reach a particular group of people. These are the young working people, who are concerned about their image and the way the public perceives them. The reason for selecting this group is that the goods are luxurious. Therefore, they will need people who are earning enough to be able to afford it. Besides, it is a high-end product, which is targeted at consumers who do not mind the price but consider the quality of the product they are buying.

There are considerations to make heavy investments in the popularization of the product. The aim of doing this is to make sure that consumers will trust the product. There will be more than just advertising. Meeting and exceeding the expectations of the consumers will be the top agenda of the business (Nwankwo, Hamelin & Khaled 2014). There has been an already conducted extensive research, whose results suggest that there is a ready market for the products. One of the market segments seems to be neglected by the existing enterprises, which do not provide their services for that particular group. By filling that gap, the business is going to create a base of loyal customers (Kravets & Sandikci 2014). In return, they will have quality products that meet their needs.

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There is also the working population that does not belong to the youth category. However, they are concerned about their image and the way they look. Women who fall in this category are of our main concern. The business intends to take care of this segment of the market, because, according to the research, most of the marketers are targeting other segments and leave this one unattended (Kamakura & Mazzon 2013). By producing and advertising our goods to this section, the business will undoubtedly grow its market share by a big margin.

Advertising

There are strong indications that Internet advertising is a new way of success. However, there is research, which shows that traditional advertising platforms are still effective. Therefore, in the initial stages, both methods will be applied. The traditional advertising methods will be phased out in favor of the use of the Internet.

With time, the Internet will become the main advertising platform. Blogs and social media are of particular interest to the business. These platforms have proved to be effective as the majority of the target consumers use them. They also enable the business to have a direct link with the clients, because any questions or concerns they have can be expressed here (Hall 2013). Therefore, the chances of having any negative reputation will be reduced.

Consumers

The products have been made to meet the needs of different consumers. The business is aware of the various tastes and preferences of the target market (Hall 2013). Therefore, there are those perfumes that are specifically made for men and others for women. In the past, the use of such products by men was very minimal. In fact, there is a category of modern working men who are aware of their status in society. This group of people has led to a rise in the demand for cosmetic products for men (Kamakura & Mazzon 2013).

Despite this fact, there are still no special products made for this particular group, and the business intends to fill that gap. There are also numerous cosmetic products and perfumes, in particular for women. There were considerations of excluding this segment of the market due to the stiff competition. However, a closer look at this part of the market reveals an emerging trend. Perfumes no longer belong to the group of luxury goods in the women market. In such a way, it has been found that the market is still developing and has a lot of potentials. In addition to that, the demand for the products is on a steady rise (Nwankwo, Hamelin & Khaled 2014). Therefore, with the right strategy, it is possible to penetrate into the market and obtain a group of loyal followers from this segment.

Distribution

The business has plans of selling the products all over the world. If such a plan succeeds, then there will be a need to form partnerships with other companies around the world, where the consumers will be able to get the products. To achieve this, there are intentions to approach major world retailers and have them sell the products. The business will be in control of how the goods are displayed in the retailers’ stores (Kravets & Sandikci 2014). The purpose of this is to ensure that the products are strategically displayed at places, where the consumers can easily spot them. The above cooperation between the company and retailers is expected to increase the sales of the products and give the company a big share of the market.

The target market includes a group of consumers who are tech-savvy. Therefore, they constantly use smart gadgets. Marketing of the products is expected to be done on the Internet platforms to take advantage of this group of people. As a way of attracting more consumers, there will be a free delivery system functioning in some regions (Hall 2013). It means that the products will be sold online and delivered to the consumers at their doorsteps. Such direct marketing will help to eliminate resellers and increase profits.

In addition, it will help to build relationships between the business and the consumers. It is expected to reduce the cost of maintaining the business (Kamakura & Mazzon 2013). The amount of money spent on advertising is expected to decrease as this type of advertising is cheaper when compared to other means. It is also easy to monitor consumers and learn how they use the product and how long it lasts. Such information will help to improve such elements as packaging and create the scents that will suit the needs of the customers.

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The business has chosen to adopt two marketing strategies due to the nature of the products. Adopting one of the methods wholly at the beginning will slow the growth of the business. The combination of two approaches, on the contrary, will help to make the goods available in the market within a short period. In the long run, the orientation of the business towards the consumer model will be preferred. The above decision has been reached after conducting research, which has proved that more consumers will be doing their shopping online.

Conclusion

There have been changes in the world of business in the recent past. Both the marketplace and world economies have varied. The way the goods are purchased is now different. There are modern customers who want all their needs to be met. At the same time, they do not mind the price they pay for products, thus, creating a big market for high-end goods. There are also changes in the world economies as, for instance, a rising number of the middle class. The working people can afford luxury goods, and they want them to be of high quality. The business has identified these opportunities and wants to fill a missing gap in the perfumes market.

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