Daily naturals

1

Katrine Z. Nessler

2

A CKNOWLEDGEMENT

This report is based on my profile in International Marketing and the main course, “Applied Project in Marketing”. First, I would like to use the opportunity to properly thank Dresslier for providing us with information and background material to write this report. Additionally, I would like to thank my supervisor and course manager, Ingo Bentrott, for providing me with professional guidance and inspiration throughout the semester.

Finally, I would like to thank both the University of Technology Sydney and BI Norwegian Business School, for the development of an exchange cooperation program with good opportunities for me as a student.

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T ABLE OF C ONTENT

... 1

ACKNOWLEDGEMENT... 2

EXECUTIVE SUMMARY ... 5

DESCRIPTION OF DRESSLIER AND DAILY NATURALS’ PRODUCT LINE... 6

BUSINESS MODEL CANVAS ... 7

1.0 INTERNAL ANALYSIS ... 7

1.1RESOURCE AUDIT ... 7

1.1.1 Human Resources ... 7

1.1.2 Physical Resources ... 8

1.1.3 Intangible Resources ... 8

1.1.4 Financial Resources ... 9

1.2VALUE CHAIN ANALYSIS ... 9

1.2.1 Inbound Logistics ... 10

1.2.2 Operations ... 10

1.2.3 Outbound Logistics ... 10

1.2.4 Marketing and Sales... 11

1.2.5 Service ... 11

2.0 EXTERNAL ANALYSIS ... 11

2.1MARKET ANALYSIS ... 11

2.1.1 Estimating Market Size ... 12

2.1.2 Porter’s Five Forces ... 13

2.2COMPETITOR ANALYSIS ... 15

2.2.1 Sukin ... 15

2.2.2L’ORÉAL ... 16

2.3CUSTOMER ANALYSIS ... 17

2.4MACRO ENVIRONMENTAL ANALYSIS... 19

2.4.1POLITICAL FORCES ... 19

2.4.2ECONOMIC FORCES ... 19

2.4.3 Socio-economic Forces ... 20

2.4.4TECHNOLOGICAL FORCES ... 20

3.0 SWOT ... 21

3.1THREE KEY ISSUES ... 21

3.1.1 Patent ... 21

3.1.2 Competitors- Economies of Scale ... 22

3.1.3 Marketing ... 22

4.0 LIMITATIONS ... 22

5.0 MARKETING OBJECTIVES ... 23

5.1SALES OBJECTIVE ... 23

5.2MARKETING OBJECTIVE 1–MARKET POSITIONING ... 23

4

5.3MARKETING OBJECTIVE 2–BRAND AWARENESS ... 24

5.4MARKETING OBJECTIVE 3–BRAND LOYALTY... 24

6.0 TARGET MARKETS AND POSITIONING... 25

6.1SEGMENTATION ... 25

6.2TARGET MARKETS ... 26

6.3POSITIONING ... 27

6.3.1 Positioning For NMWC ... 27

6.3.2 Positioning For Established Families ... 28

6.3.3 Positioning For Students ... 28

7.0 KEY STRATEGIES ... 28

7.1MARKET POSITIONING STRATEGY ... 28

7.2BRAND AWARENESS STRATEGY... 29

7.3BRAND LOYALTY STRATEGY ... 29

8.4MONITORING AND CONTROL ... 30

8.0 KEY RECOMMENDATIONS ... 30

8.1MARKET POSITIONING RECOMMENDATION... 31

8.2 BRAND AWARENESS RECOMMENDATION ... 31

8.3 BRAND LOYALTY RECOMMENDATION ... 32

9.0 REFERENCES ... 33

10.0 APPENDIX ... 38

5

E XECUTIVE S UMMARY

Based on the conducted situation analysis, three main issues have been identified for Daily Naturals to focus on.

1. The challenges of entering the haircare market in Australia without economies of scale.

2. Due to no previous marketing efforts, Daily Naturals has an unknown brand name with low customer awareness in the haircare market.

3. In a cluttered and competitive haircare market, it is a significant threat of competitors producing similar products to Daily Naturals.

These issues are also seen as the key opportunities for Dresslier to strengthen the position of its Daily Naturals product line in the haircare market. The overall objectives to address these issues is to expand distribution of Daily Naturals by use of an indirect distribution channel, establish a well-known brand name by use of external insight from a marketing consultant to secure good branding, and strengthen the brand loyalty by focusing on R&D and customer service. The identified target markets for Daily Naturals are namely; newly married with young children, established families, and students.

For Dresslier to be able to successfully expand distribution nationwide in Australia, it is recommended to follow this activity plan:

Indirect distribution:

Priceline

Marketing

consultant Social media

presence R&D _program^Loyalty

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D ESCRIPTION OF D RESSLIER AND

D AILY N ATURALS ’ P RODUCT L INE

Dresslier is a family owned and driven haircare company, located in Adelaide, South Australia (i.e. see Appendix 1). Over the past 80 years, it has experienced great success both nationally and internationally. Mary and John Centofanti, are third

generation owners and are now looking to take their business to the next level. All Dresslier’s products are Australian made, cruelty-free and natural- petrochemical, sulfate and paraben free.

It is important to them that quality shows in all their products.

Additionally, they are certified as vegan by the Vegan Society. Dresslier operates in an estimated $111 billion haircare market (Statista, 2018). Further, Dresslier has two haircare brands- Davroe and Daily Naturals.

Daily Naturals’ product line consists of six shampoos and conditioners. Different customer needs are addressed in this product line; color protect, volume enhance, moisture intense, smooth control, all clear and blonde toner. Moreover, Daily Naturals also offers hair treatments and styling products, and all products are considered unisex. Through international suppliers, Dresslier has managed to be innovative regarding ingredients for Daily Naturals, while staying ahead of the ever-changing haircare market. Daily Naturals is currently sold through pharmacies and retailers mainly in South Australia.

In this report, we have conducted both internal and external analysis of Daily Naturals to identify strengths, weaknesses, threats and opportunities. These analyses are done as its goals are to expand distribution, increase sales and improve its brand awareness (i.e. see Appendix 1).

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B

USINESS

M

ODEL

C

ANVAS

To assess how Daily Naturals creates, delivers and captures value, a Business Model Canvas has been constructed (Osterwalder, 2010). Through the analysis the factors are demonstrated from the four core areas of the business: customers, infrastructure, offer and financial

viability.

1.0 I NTERNAL A NALYSIS

1.1 R

ESOURCE

A

UDIT

By conducting a Resource Audit Analysis, Dresslier can examine its core strengths assessing human, physical, intangible and financial resources. Each resource that distinguish Dresslier from its competitors, is considered a competitive advantage. These competitive advantages can steer Dresslier towards long-term success in the Australian haircare market (Small Business, 2017).

1.1.1 H

UMAN

R

ESOURCES

Dresslier currently has 20 full-time employees, including management, production team and delivery team. With only 2% employee turnover, we assume the company has a good

organizational culture. Its organizational culture, as well as staff, are sustainable competitive advantages for Dresslier because these are not imitable for its competitors. These factors contribute to more efficiency, better interaction between employees, and inspires to creativity.

8 Moreover, this can lead to innovative solutions and developments for Dresslier (Training, 2017).

1.1.2 P

HYSICAL

R

ESOURCES

In 2006, Dresslier refocused its business from salon supplier to manufacture of its own brands and contract packs. It also re-formulated its products to become petrochemical, paraben and sulfate free. These changes were implemented to satisfy the increasing demand from

consumers for natural based haircare products with high quality (i.e. see Appendix 1).

Dresslier has for the last couple of years increased its production by purchasing new machines for better efficiency and faster production. According to one of Dresslier’s owner, John Centofanti, its business strategy is; “If it’s profitable, keep rolling” (Dresslier, 2018). This business strategy might not be sustainable over time due to the importance of being perceived as ethical by consumers in order to create close customer relationships (Fink, 2018).

1.1.3 I

NTANGIBLE

R

ESOURCES

Firstly, Dresslier is 100% family owned, with third generation as formulating chemist (i.e. see Appendix 1). This is one of Dresslier’s most important intangible resources. Family members who run a business together, tend to be more committed to its success, because they have a stake in seeing the business prosper. The deep commitment and motivation, often makes family businesses resilient, even in fluctuating times (Burks, 2017).

To gain satisfied customers, it is important for Dresslier to create customer credibility. With over 80 years of local Australian operations, Dresslier has established knowledge of the local haircare market, as well as an understanding of the consumers’ needs. Since the introduction of Daily Naturals to National Pharmacies in July 2011, the product range has been

continuously in the top 3 most sold haircare brands (i.e. see Appendix 1).

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1.1.4 F

INANCIAL

R

ESOURCES

Dresslier has achieved 28% increase in sales in 2015, 29% in 2016, 28%

in 2017 and tracking at 26% for 2018. This indicates a steady increase in sales. However, Dresslier’s Daily Naturals range, within National Pharmacies, has achieved 11% growth in 2015, 9% in 2016, 7% in 2017 and tracking at 5% for 2018 (Dresslier, 2018). These numbers show a slight decline in sales growth over the past three years.

Daily Naturals reported a sales revenue of $156,000 in 2014-2015, $136,000 in 2015-2016 and $127,000 in 2016-2017 (i.e. see Appendix). The numbers indicate that there has been a decline in sales revenue. Its economic goal is to achieve sales growth in the years to come.

The financial situation presented so far in 2018, looks promising. Daily Naturals has reported sales of $100,000 by the end of March, tracking to $135,000 by the end of June. Daily

Naturals has been allocated $500,000 towards marketing in 2018/2019 in order to reach its economic goals (i.e. see Appendix 1).

Product development is an important part of Dresslier’s business strategy. In order to maintain an innovative role in the natural haircare market, Dresslier invests a significant amount of resources into new product development. Such an investment contributes to strengthen both Dresslier and Daily Naturals’ position in the market (i.e. see Appendix 1). Further, Dresslier uses its largest share of financial resources on staff, ingredients and running costs (Dresslier, 2018).

1.2 V

ALUE

C

HAIN

A

NALYSIS To identify Daily Naturals competitive advantages, a Value Chain Analysis is conducted to examine all of the activities involving Daily Naturals, and how everything is connected.

Product value is the amount customers are willing to pay for certain products. By looking at how the supporting activities affect each of the primary activities, we seek to understand where Daily Naturals is creating value. Daily Naturals is profitable if the value it creates exceeds the cost of performing the activities. To gain competitive advantage, Daily Naturals must understand where it can increase its investments to create greater value to strengthen its competitiveness (Porter and Millar, 1985).

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1.2.1 I

NBOUND

L

OGISTICS

Inbound logistics is the process concerning storing, receiving and distributing inputs within the company. Dresslier has a good relationship with its distributers in Australia which import ingredients from major suppliers in Asia (10%) Europe (30%) and America (55%). This contributes to Dresslier staying ahead of the ever-changing market developments in regards to quality vegan ingredients. Dresslier is also a part of the current informational revolution which affects the competition in the haircare market by impacting innovations and market trends. This is a benefit for Dresslier as it provides insight into future trends within the haircare market (Porter and Millar, 1985).

1.2.2 O

PERATIONS

With today's consumers’ increased focus on sustainability, companies are forced to focus on pollution and the use of harmful chemicals in their products (i.e. see Appendix 1). This change in attitudes has led to a consumer shift towards product selectivity. It is important to track market changes in order to maintain customers’ satisfaction and develop a competitive advantage. Throughout the Daily Naturals’ product range, Dresslier was the first on the market to use innovative vegan ingredients. Daily Naturals’ operation process consists of import of ingredients, production, packaging and delivering products to its distributors (i.e.

see Appendix 1).

Patents are important for large companies, but also small companies as they are less likely to have a diversified product line and are dependent on few key products. Often, a patent is the only thing protecting a small and innovative company from larger competitors (Bennett, 2002).

1.2.3 O

UTBOUND

L

OGISTICS

Daily Naturals is a pharmacy and retail outlet product. It was first manufactured after a growing demand for a natural based haircare product with salon quality. One of Daily Naturals major competitive advantages, is that it manufactures all of its haircare products in Australia, which means it has shorter lead times, consistent quality and complete control over the production. Local produce strengthens Daily Naturals brand image (i.e. see Appendix 2).

Currently, Daily Naturals is mainly sold in pharmacies in South Australia (i.e. see Appendix 1). Additionally, Daily Naturals is sold online at flora and fauna (Flora and Fauna, 2018). The lack of online presence due to not having its own website, can prevent Daily Naturals from reaching its desired, and possibly most valued, customer group.

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1.2.4 M

ARKETING AND

S

ALES

Presently, Dresslier has not spent any resources on marketing of the Daily Naturals product range. Daily Naturals is an unknown product in most retailers in Australia, which indicates we should treat them as a startup company entering the consumer market (i.e. see Appendix 1). Its financial goal is to increase growth in sales. Dresslier has allocated

$500,000 towards marketing of Daily Naturals. Moreover, Daily Naturals wants to increase brand awareness through word of mouth (WoM) and by using influencers, it seeks to create brand recognition among consumers (Dresslier, 2018). Lastly, the package size allows the consumer to return purchase more often, at least once a month. Repeat purchase promotes strong loyalty, which retailer can benefit from (i.e. see Appendix 1).

1.2.5 S

ERVICE

Dresslier values good customer service as an important aspect of success. Hence its representation in every mainland state in Australia, which provides high level of service to each store. As Dresslier is a small business in a B2B marked, it can be difficult to provide a direct customer service contact (i.e. see Appendix 1).

2.0 E XTERNAL A NALYSIS

2.1 M

ARKET

A

NALYSIS

The haircare industry is highly competitive and mature. Currently it contributes to more than 15% of the global beauty and personal care market revenue. The global haircare market is expected to increase from $111 billion to $139,6 billion by 2023, at a compound annual growth rate (CAGR) of 3.69% between 2018 and 2023 (Mordor Intelligence, 2018). Haircare is the second most purchased product in the cosmetic market with 22,9% (L’Oréal, 2016).

The domestic haircare industry is valued at $123,79 million in 2018 with a CAGR of -0.04%

between 2018 and 2021(Statista, 2018). The Australian population is aging, 53% of the population is between 25 and 64. The share of hair colorant products is expected to increase due to the concern with the effects of aging. There is an increasing focus on categories that benefit the health of the hair, the increased focus is due to factors such as sun damage, scalp issues, hair thinning/loss and pollution (Mordor Intelligence, 2017).

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2.1.1 E

STIMATING

M

ARKET

S

IZE

The forecasted market size of the natural and organic industry, where haircare is included, is expected to reach $21,79 billion USD in U.S. in 2024 (Statista, 2018). As the United States mainly has the same demographics as Australia, we can view this estimated market size to be equal for Australia. In order to estimate Daily Naturals’ total market potential, it is important to determine the target B2B customers. The main B2B customer segments are supermarkets, pharmacies, salons and online retailers. As Daily Naturals is a premium product it is

important that the segments legitimize its products (i.e. see Appendix 1). Pharmacies are legitimizing Daily Naturals’ products, with the PSA’s Code of Ethics, which value pharmacy profession and expected standards of ethical behavior (PSA, 2017).

Guardian Pharmacy scored best overall, followed by Amcal and Priceline (Canstar Blue, 2018). In Australia there are 400+ Priceline pharmacies (Priceline, 2018), 150+ Guardian Pharmacies (Guardian Pharmacies, 2018), and 223 Amcals (Amcal Pharmacies, 2018). We consider these pharmacies to be the target segments for Daily Naturals, as they had the highest overall score.

Penetration rate:

Daily Naturals is not the market leader; therefore, the competitive market penetration rate is assumed to be low. The penetration rate of the personal care market is estimated at 9.6%

(Statista, 2018).

Market volume:

In order to estimate Daily Naturals’ market potential, the amount of targeted pharmacies, is multiplied by the penetration rate. Due to lack of exact numbers, an estimate is done based on the total amount of target segments. The total amount is 773 and the penetration rate is 9.6%.

Daily Naturals potential market volume is estimated to 773 x 9.6%= 74 business transactions.

Market value:

National Pharmacies (NP) is currently the main distributor for Daily Naturals. Daily Naturals’

net retail sales of $254,000 is primarily from South Australia (i.e. see Appendix 5). Assuming Daily Naturals is sold in every NP in South Australia and dividing the net retail price on the number of NP in South Australia, you will get the estimated average value. Of 39 NPs in South Australia, the average value is $6,512 (Samsa, 2018). By multiplying the market value with the average value, Daily Naturals’ market volume is calculated to be 74 x $6,512 =

$481,888.

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2.1.2 P

ORTER

’

S

F

IVE

F

ORCES

Porter’s Five Forces analysis provides insight in the competitiveness within the industry. By conducting the analysis, Dresslier can easier get an insight as to how competitive the haircare industry is and how it is positioned in relation to the competitive nature of the industry.

Bargaining Power of Suppliers

Bargaining power of suppliers refers to the pressure a supplier can put on businesses by raising prices, lowering quality or reducing availability of products. The “personal care ingredients” market is relatively fragmented with major companies holding 45% of total market share (Global Market Insight, 2017). As Dresslier values cruelty-free, vegan and all natural products, there will be less suppliers who can meet Dresslier’s demand. As a

consequence, these few suppliers will have more bargaining power over Dresslier. There is an increasing awareness on sustainability, and companies are forced to focus on the use of non- harmful chemicals and ingredients. Therefore, suppliers in the “personal care ingredients”

market will start to operate under the same conditions, which will decrease the suppliers bargaining power in the future (Global Market Insights, 2017). The bargaining power of the suppliers is rated as moderate to high for Dresslier.

Bargaining Power of Buyers

Bargaining power of buyers refers to the pressure buyers put on companies in order to get them to provide high quality products, lower prices and better customer service. The desired B2B target segments for Daily Naturals, are Guardian Pharmacy, Amcal and Priceline. The B2B buyer is making decisions based on the end user’s behavior and current trends in the market. When there is a small number of buyers with many substitute products their bargaining power gets higher. Daily Naturals can therefore be less prioritized opposed to better positioned brands.

14 Threat of New Entrants

Threat of new entrants identifies the level of difficulty for companies to introduce new products to the market. Dresslier belongs in the niche haircare market with certain

requirements, such as being all natural, which protects it from new entrants penetrating its market share (Veloso, 2016). Dresslier has a patent on its products. Having a patent does not prevent other brands from imitating its products and enter the same niche market, it only protects from the use of exact same ingredient formulation. To enter the haircare market, one is legally responsible to ensure that products meet the requirements enforced by the

Australian Consumer Law (Rickard, 2014). The Australian Government has approved a ban of all animal-testing (Australian Government, 2016). The obligation to meet the requirements by the Australian Consumer Law and the Australian Government raises the entry barrier. The market entry cost is high, due to the R&D, production and marketing needed to succeed.

Additionally, the presence of established companies like L’Oréal can discourage new entry.

Hence the threat of new entrants being low.

Threats of Substitutes

Since not all haircare brands are considered competitors due to diversity in product attributes, we identify all brands which are not 100% natural and cruelty-free, as substitutes. Dresslier operates with direct and indirect competitors with economies of scale. L’Oréal is an example of a substitute who does not produce vegan products. L’Oréal has 20% of the Australian market share, and can challenge Dresslier on price which could result in price-sensitive customers switching over to a substitute (Euromonitor, 2017). As the haircare market is mature, new products are constantly developed and introduced to the market and the

consumers. The switching cost of haircare products are low -in the absence of brand loyalty- which means that the consumer will be more likely to try other brands and substitutes.

Another factor to have in mind, is the pricing of Dresslier’s product. Any move to a higher price than substitutes might lead to the customers switching brands and there will be a loss of profit (Martin, 2014). The threat of substitutes is placed at a high threat level.

Competitive Rivalry

The intensity of rivalry among competitors, refers to the extent firms can pressure one another and further limit each other’s potential profit. Dresslier is a small company compared to the industry leaders in a mature market. The Australian Government has committed to introduce a ban on animal-testing (Australian Government, 2016). Dresslier’s products are cruelty-free, not tested on animals, and will not be negatively affected. The implementation of the ban is still being postponed (PETA Australia, 2018). If Dresslier is able to increase its market share and the ban of animal-testing is implemented, the competitive rivalry will become more significant. Pricing differences within the industry is low and it is therefore easier for

customers to switch brands, this implicates low brand loyalty. It is a high level of competitive rivalry within the industry.

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2.2 C

OMPETITOR

A

NALYSIS

In order to determine how competition can impact Daily Naturals, a competitor analysis is conducted. In this competitor analysis, we analyzed a direct competitor, Sukin, and an indirect competitor, L’Oréal. “Most consumers believe that Daily Naturals is organic because it is all natural and plant based. That’s not the case; we don’t want to be an organic product”- John Centofanti, we have therefore excluded organic brands from this analysis (Dresslier, 2018).

Both primary and secondary research was conducted in order to gain more insight of Daily Naturals’ competition.

2.2.1 S

UKIN

As Sukin is an Australian made, all natural and vegan brand, it is Daily Naturals’ biggest direct competitor (Dresslier, 2018). The range of haircare products is similar to Daily

Naturals’ with seven shampoos and conditioners, as well as one hair treatment. The products are sold in pharmacies and supermarkets in Australia, as well as in several Asian and

European countries. Sukin is well established as it is the number one natural skincare brand in Australia (Sukin, 2018). With a revenue of $62 million in 2017, compared to Daily Naturals’

2016-2017 sales revenue, Sukin is significantly larger than Daily Naturals (BWX Ltd, 2017).

Our qualitative research shows that bottle design is an important attribute in the consumer’s buying process (i.e. see Appendix 2). Packaging is an important element of brand identity, as design reflects the brand. An effective logo should be simple and memorable, and help the consumer discover, share and remember the brand (Lamson, 2017). Sukin’s use of color (brown, white and green) reflects nature, purity and the environment, which align with the brand’s values (Bourn, 2011). Our primary research indicates Daily Naturals’ lack of brand personality (i.e. see Appendix 2). The current design is perceived as confusing due to too much information making it difficult for the consumer to relate to its brand identity.

16 Further, Sukin has established a strong online presence which strengthens the brand identity by raising brand awareness in the form of WoM, reviews and accessibility (Zwilling, 2015).

We consider Sukin’s online presence to be a major strength, as our research shows the importance of having a website as well as social media accounts.

2.2.2L’ORÉAL

L’Oréal specializes in cosmetics, such as make-up, skincare and haircare (L’Oréal, 2017). The company employs 82,600 and operates in 150 countries all over the world. L’Oréal had a revenue of

$46,760 billion in 2017. Out of total revenue in 2016, 19.2% of sales were haircare products (L’Oréal, 2016). By holding a 20% value share in Australia in 2016, L’Oréal Australia

maintained its leading position in haircare (Euromonitor, 2017). We consider L’Oréal a major indirect competitor of Daily Naturals due to its size.

L’Oréal’s sustainability goal is to reach 1 billion new consumers by 2020 (O’Reilly, 2013).

L’Oréal is working on improving response times as well optimizing production and logistics to reduce time to market. If these goals are met, L’Oréal will most likely gain a bigger market share, which is a threat for Daily Naturals, as it might be negatively impacted.

Our qualitative research shows that price is important for the consumers when purchasing haircare products (i.e. see Appendix 2). L’Oréal offers discounts and sales promotions, to attract new customers (Lulu, 2011). Primary research indicates offering sales promotions does not have a negative effect on an established brand, but can be confusing as to where a brand is positioned in the market if one is not established. Sales promotions and price in general can be crucial in the consumer’s decision-making process (Jayasinghe, 2016). L’Oréal’s

promotion strategy is considered a strength.

With several websites and social media accounts, L’Oréal effectively reach consumers. Our qualitative research indicates online presence is of high importance (i.e. see Appendix 2).

L’Oréal’s “Beauty Squad” consists of influencers, actresses and models whom reinforce the brand’s identity and values (Kegg, 2018). Females, age 18-26, believe the use of influencers will strengthen a brand’s personality (i.e. see Appendix 2).

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2.3 C

USTOMER

A

NALYSIS

To identify potential consumer segments for Daily Naturals in the Australian haircare market, primary research consisting of three in-depth interviews and a focus group was conducted.

Along with secondary research, this resulted in the identification of four main segments for Daily Naturals- Y&P, F&P, M&P and B&O.

The Young and Professional (20- 29). Homogeneous characteristics for the

youngest segment is that they tend to live in urban areas, follow market trends and are found on all social media platforms (i.e. see Appendix 4). Our research shows that this segment is not brand loyal, even though brand name is important for females (i.e. see

Appendix 2). Further, one can divide this segment into ‘students’ and ‘newly graduated’. The biggest difference between these sub segments is price sensitivity. Although most students are known to be price sensitive and living on restricted budgets, they are a market worth tapping into because they will be among tomorrow’s largest spenders (Euromonitor, 2013). The newly graduated are full-time workers. After the transition from living on a student-budget to

receiving an income, they are now capable of purchasing higher priced products. They tend to look to social media for inspiration, and the focus on social status and self-promotion has increased (Aguilar, 2017). Brand name and identity is therefore more important for the newly graduated, than for students.

Y&P

18 Family and Professional (30-39). F&P tend to live in the suburbs where they spend their time with family and friends, and Facebook is their most used social media platform (Sensis, 2017). As they are always on the go, either with children or for work, convenience is key to reach them. Additionally, this segment has two sub segments; ‘newly married with young children’ (NMWC) and ‘career oriented’. For NMWC most of their income is spent on their children, paying off mortgages and on household goods (ABS, 2016).

It is highly important for them to consume goods which are not harmful on their children’s skin or scalp. Many therefore tend to seek natural products of high quality (i.e. see Appendix 1). On the opposite side are the career oriented. This sub segment is climbing the career ladder. They are not price sensitive and tend to be willing to pay more for higher quality products.

The Mature and Professional’s (40-49) common traits are; stable economy, tend to be routinized, quality oriented, and are found on Facebook, but to a smaller extent than F&P (Sensis, 2017). Because this segment tends to be routinized, they are also expected to be more brand loyal as purchases like haircare may be automatic (Business Dictionary, 2018). M&P can be divided into ‘established families’ and ‘career professionals’.

Established families are influenced by their children’s consumer preferences as they are moving towards the teenage stage. Moreover, ‘career oriented’ has now become

professionals. They have high incomes which results in more freedom in terms of lifestyle choices and personal consumer preferences.

Boomers and Older (50 +). This is the largest segment, due to its size,

subsequently there are some variety among these consumers. B&O are concerned with the value of good customer service and are highly influenced by sales people (Business Insider, 2015). Most of them experiences a shift in lifestyle. They are harder to reach than the other three segments, but traditional media is the most effective marketing channel

(Sisenwein, 2015). One can divide this segment into ‘empty nesters’ and ‘retired’. The empty nesters now have the chance to focus on their own personal goals, with lowered expenses and more free time (Yagana, 2013). Many are now looking for something new. The previously professionals, now retired, have new needs and desires which is presenting a good

opportunity for marketers to show them how their products fit into their new lifestyle.

F&P

M&P

B&O

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2.4 M

ACRO

E

NVIRONMENTAL

A

NALYSIS

Several uncontrollable external forces can impact Daily Naturals in the future.

Understanding how globalization is a major momentum for market development is significant. Even though Daily Naturals is not considered to be a global company, they must acknowledge the changes that happen in the global market. To identify key external macro environmental forces, we conducted a PEST analysis.

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.4.1 P^OLITICAL F^ORCES There are many political forces that can impact Daily Naturals’

operations in Australia. Due to

globalization, it is important to be aware of patents, trade restrictions, taxation and tariffs. Trump administration returning the US tariffs can cause higher prices on the imported ingredients from USA. As a consequence, Daily Naturals may end up having to shift suppliers (Pash, 2018).

Moreover, the Chinese Government has accepted the first cruelty-free products to be sold in China, a PETA grant to fund the Institute for In Vitro Science (IIVS) to pursue cruelty-free testing of cosmetics (Sullivan, 2017). China is therefore an opportunity for Daily Naturals if it decides to expand distribution internationally in the future. We find political forces to be a minor threat to Daily Naturals because of the stability in Australian economy. On the other hand, US tariffs are considered to be a major threat.

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.4.2ECONOMIC FORCES

Australia is one of the largest capitalist economies in the world, and has experienced economic growth 26 years in a row (Santander, 2018). The IMF has estimated Australia’s GDP growth to 3%, inflation rate of 1.9% and unemployment rate of 5.3% (Pash, 2018). If Australia

experiences a recession in the future, Daily Naturals needs to prepare for a tougher market where the consumer has less to spend on goods, like shampoo and conditioner.

Australian Post recently presented the Asian Strategy, which focuses on offering logistics support to Australian businesses that are either selling in Asia, or sourcing their products there (McCauley, 2017).

This is a major threat to Daily Naturals as of today, because the Chinese market distributors currently requires one to test on animals before entering their cosmetics market. In other words, Daily Naturals’

competitors can gain a competitive advantage by selling in China. In the future, the Asian Strategy can become an opportunity for Daily Naturals when cruelty-free products are fully accepted by Chinese distributors.

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2.4.3 S

OCIO

-

ECONOMIC

F

ORCES Socio-economic factors, such as demographics, lifestyles and consumer trends, are highly relevant forces for Daily Naturals to consider when entering new markets in Australia. Australia’s current population is 24,707,112 of whom 88.8%

lives in urban areas (Worldometer, 2018).

Generation Z, born 1995-2009, is the largest generation in Australia with 18.7%

of the population (The McCridle Blog, 2018). Generation X, born 1980-1994, also known as the Millennials, dominate

employment and are predicted to make up 42% of the workforce in Australia by 2020 (Scopelliti, 2016). Due to size, these generations are major opportunities for Daily Naturals.

Both Generation Z and Generation X are investigative shoppers, which means they spend more time building trust and brand loyalty, than the previous generations (Inside Franchise Business, 2018). They are well aware of the different brands on the market, as well as what they stand for- a brand is either a friend or an enemy.

Transparency between the consumer and Daily Naturals, is therefore an opportunity to gain the consumer’s trust and loyalty.

The average consumer is increasingly mindful of their purchases. Healthy and environment-friendly lifestyles are

becoming a focus (Rowsell, 2017). This is a major opportunity for Daily Naturals as they can provide a product suitable for these consumer lifestyles.

2.4.4TECHNOLOGICAL

FORCES

In order to stay relevant, Daily Naturals must be aware of the technological forces surrounding them- nationwide, internationally and globally.

Digital change is constant, and the importance of innovation has never been more evident. Innovation in regards to machinery and production can impact Daily Naturals and it is crucial that they manage to stay ahead of the game, otherwise this can be a major threat as competitors might become the market leaders.

A technological trend Daily Naturals should be aware of is situational marketing, also known as real-time marketing. This form of marketing is optimal to reach a particular customer at a particular time and place. Real-time marketing specifically appeals to the younger generations because it often appears on social media (The McCridle Blog, 2018).

There is currently a small online market for Daily Naturals, as health and beauty

products only make up 8.5% of all online shopping in Australia (Franzi, 2017). In spite of this, the numbers are increasing as consumers are becoming more comfortable buying health and beauty essentials online.

This is an opportunity for Daily Naturals, if they were to go online.

21 Big Data, which includes sales, marketing, customer service and operations data, has become a driving force for companies in decision-making (Rowsell, 2017). Big Data can be used for better understanding of the customers’ needs and wants, and makes it easier for companies to create customer profiles. We therefore see Big Data as both an opportunity for Daily Naturals to personalize products and promotions, and a threat, due to competitors having access to the same data.

3.0 SWOT

This SWOT-analysis identifies the most important internal strengths and weaknesses, and external opportunities and threats of Daily Naturals. From the SWOT-analysis we summarize the three key issues and justify why these are the most concerning issues for Daily Naturals.

3.1 T

HREE KEY ISSUES

3.1.1 P

ATENT

Even though Daily Naturals’ formulation patent is considered a strength, it can also be a major threat. Considering the fact that Dresslier is a small company, it is possible for competitors to produce an almost identical product. With big and wealthy competitors like L’Oréal, it is important to see the possibility of competitors producing similar products in bigger scale than Daily Naturals is capable of. For small companies having a patent can act

22 more as a “false truth”. Therefore, one of Daily Naturals’ key issues is the threat of

competitors creating similar and almost identical products.

3.1.2 C

OMPETITORS

- E

CONOMIES OF

S

CALE

As Daily Naturals is a small company, there are few employees and a small production site.

Nevertheless, for the last years, Dresslier has increased its production to become more efficient. “If it’s profitable, keep rolling” is Dresslier’s business strategy. It is important for Daily Naturals to have in mind that if they enter the growth stage, there will be more competitors. This will lead to more competition and it will become difficult for small

companies without economies of scale to survive. On the other hand, small family businesses tend to be more committed to its success, because the employees have a stake in seeing the business prosper. The deep motivation of Daily Naturals, can make it more flexible in fluctuation times where economies of scale will not necessarily help the company to survive.

Dresslier has established knowledge of the local haircare market, which can also be of

assistance in a competing market, as big international companies might not have local market information.

3.1.3 M

ARKETING

Previously, there has been no resources allocated to marketing of Daily Naturals. As a consequence of no marketing efforts, Daily Naturals may have to start from the beginning.

The bottle design, fragrance and how it wants to position itself can now be based marketing research. With competition for the biggest market share, it can be hard to get one’s marketing messages across to the consumer. Daily Naturals must be aware of the importance of cutting through the clutter (Neil, K. 2017). Due to the fact that little has been done through

marketing, the possibilities are many. A renewal of the brand can give possibilities and strengthen Daily Naturals’ position in the market. Packaging is an important element of brand identity, as design reflects the brand. An effective logo should be simple and memorable, and help the consumer discover, share and remember a brand (Lamson, 2017). Because Daily Naturals has done no marketing efforts to get consumers to remember their brand, it can be difficult to attract them to purchase its haircare products, especially if the packaging is not discovered or remembered.

4.0 L IMITATIONS

Time and money restrictions were some limitations we encountered during our marketing research project. The time frame for this marketing project was six weeks, which limits the time to gather information of all aspects in the report. Due to the marketing group being students, the budget was tight and no money was spent on research. We acknowledge the possibility of these factors having an impact on our research.

23

5.0 M ARKETING O BJECTIVES

In order for Dresslier to address the identified key issues, one sales objective and three marketing objectives have been identified. The objectives need to be SMART: specific, measurable, achievable, relevant and time bound (mindtools, 2018). The timeframe for this report is 12 months, starting July 2018.

5.1 S

ALES

O

BJECTIVE

The Daily Naturals product line is currently represented in 51 National Pharmacies stores, with approximately 50 units sold weekly in each store.

Currently the estimated yearly sale of Daily Naturals is 132 600 units (51x50x52).

Dresslier has the capacity to further expand the production, and as a part of the product life cycle, Dresslier should consider how the Daily Naturals product line could increase from the current introduction stage, to over time, reach the strategic goal defined as a sales growth of 500% in 2019. Furthermore, the strategic measures and recommendation will explain how to reach the sales objective.

5.2 M

ARKETING

O

BJECTIVE

1 – M

ARKET

P

OSITIONING

Issue: The challenges of entering the haircare market in Australia without economies of scale.

Objective: Expanding distribution of the Daily Naturals line into the pharmacy market across Australia by June 2019.

Measure: The number of distributors in Australia.

Strategy:

- Indirect distribution channel - Sample marketing

Daily Naturals is a small company without the possibility to take advantage of economies of scale, which some of its main competitors are capable of. It is therefore important that they overcome the challenge and manage to expand distribution of its product line into the Australian pharmacy market by finding the most suitable distributor.

Dresslier ought to find the balance between its promotion style and its production capability.

Their promotion strategy should consider the gap between their current capability and the wanted capability. It is of importance that Dresslier does not “over promote” Daily naturals, hence the product line is not presented to the market. An over promotion would not be economically beneficial, in the current life cycle stage for Daily Naturals.

24

5.3 M

ARKETING

O

BJECTIVE

2 – B

RAND

A

WARENESS

Issue: Due to no previous marketing efforts, Daily Naturals has an unknown brand name with low customer awareness in the haircare market.

Objective: Establish a well-known brand name by June 2019.

Measure: Monthly sales revenue Strategy:

- Branding

- Marketing Consultant

It is essential to establish a well-known brand name, as the value proposition communicated is not sufficient enough regarding the characteristics of Dresslier’s Daily Naturals product line.

Customers need to be able to understand the characteristics and reliability of the Daily Naturals line, such as physical quality and the benefits of using all natural ingredients.

Furthermore, a strong brand name is also an important contribution to increase of sales.

5.4 M

ARKETING

O

BJECTIVE

3 – B

RAND LOYALTY

Issue: In a cluttered and competitive haircare market, there it is a significant threat of competitors producing similar products to Daily Naturals.

Objective: Strengthen Daily Naturals brand loyalty June 2019.

Measure: Market share in the haircare market and customer satisfaction level through questionnaire.

Strategy:

- Research and Development (R&D) - Customer service

The line between stealing ideas and creating similar products has become more blurred, as the haircare market is highly competitive. To survive in a mature haircare market, it is important to strengthen the market position, through focus on product development and consistency to strengthen customer’s loyalty.

25

6.0 T ARGET M ARKETS AND P OSITIONING

6.1 S

EGMENTATION

The previous research conducted in assignment part A, identified four segments for Daily Naturals; The Young and Professional, Family and Professional, The Mature and

Professionals, and Boomers and Older. To further understand the characteristics of the segments, a survey of consumer behaviour related to purchases of natural products was conducted. By use of social media, 190 respondents complete the survey (i.e. see Appendix 6).

The analysis of the quantitative research identified three distinct clusters. All analysis used to identify and describe the following clusters are significant due to a significance level (p- value) of <0.05. The first three segments from part A, will be the main focus in this part, as the cluster analysis contributes to additionally describe them. The segment Boomers and Older from part A will not be included in part B, due to low potential.

Y&P

The young and Professional (20-29). Homogeneous characteristics for this segment is that they tend to live in urban areas, follow market trends and are found on all social media platforms (i.e. see Appendix 4). The secondary research from part A shows that this segment is not brand loyal, even though brand name is important for females (i.e. see Appendix 2).

Furthermore, one can divide this segment into the sub-segment “students”. Although most students are known to be more price sensitive and live on restricted budgets, they are a market worth tapping into because they will be tomorrow’s largest spenders (Euromonitor, 2013).

The quantitative analysis confirms with cluster 2 that this sub-segment is more concerned with price than brand. They rarely buy all natural products, but the attributes still appeal to them (56%). This segment is mostly affected by low prices and is generally unaware of the benefits of using natural products. The reason why this segment can become an aspiring segment is due to the fact that 83% are “sometimes” willing to pay more for quality. This segment will need clear symbols on the haircare containers to show them the main benefits of the products, as 37% never read the ingredient list.

F&P

Family and Professional (30-39). F&P tend to live in the suburbs where they spend their time with family and friends, and Facebook is their most used social media platform (Sensis, 2017). As they are always on the go, either with children or for work, convenience is key to reach them. Furthermore, by looking into the sub-segment, “newly married with young children” (NMWC), we seek to understand that most of their income is spend on their

children, paying off mortgages and on household goods (ABC, 2016). It is highly important

26 for them to consume goods, which are not harmful on their children’s skin or scalp. Many therefore tend to seek natural products of high quality (i.e. see Appendix 1).

By looking at the quantitative analysis in cluster 1, it shows that 50% already shop natural products more than once a month (4%) or once a month (24%). They acknowledge that attributes such as all natural and vegan are the most important when choosing from the different attributes. This segment is aware of which brand they purchase and are willing to pay more for quality. The main reasons why they do not purchase natural products are

because of “poor variety” and “not available” at their retailers. Seeing that Daily Naturals and the natural haircare market is in the introduction stages, gives Daily Naturals potential.

M&P

The Mature and Professional’s (40-49) common traits are; stable economy, tend to be routinized, quality oriented, and are found on Facebook, but to a smaller extent than F&P (Sensis, 2017). Because this segment tends to be routinized, they are also expected to be more brand loyal as purchases like haircare may be automatic (Business Dictionary, 2018).

Furthermore, this segment can be divided into the sub-segment “established families”.

By looking at cluster 3, it shows that 78% of them are full-time employees. More than half of them are married and with children. What stands out with this segment compared with others is that 84% purchase natural products once a month or more. The most appealing attribute for this segment is locally produced products (61%). This segment has more knowledge about the benefits of purchasing natural products, and is willing to pay more for quality products.

Hence, this segment is a potentially big and important segment for Daily Naturals as they find both local produced and all natural products most appealing, which is Daily Naturals’

competitive advantage.

6.2 T

ARGET MARKETS

The conducted cluster analysis identified three clusters, which appears as the three target markets Dresslier should focus on. Considering the identified key issues and the conducted research, these three target markets will serve as the most attractive and profitable Australian markets for Dresslier’s Daily Naturals product line. In the recommended priority order, the target markets are namely:

- Newly married with young children - Established families

- Students

27

6.3 P

OSITIONING

Dresslier’s positioning of its Daily Naturals product line needs to emphasise the different characteristics wanted by its customers. Dresslier ought to emphasize the unique benefits of using Daily Naturals over competing brands. Attributes such as all natural ingredients with innovative formula, product development and local production are the basic characteristics that Dresslier should focus on. To demonstrate Daily Naturals positioning strategy, a perceptual map has been conducted (see below). The map is conducted based on Daily Naturals direct competitors, namely Australian Native Botanicals, Sukin, Acure, Akin and Ecostore.

6.3.1POSITIONING FOR NMWC

The segment “newly married with young children” value all natural and vegan products, which is good for their children. In order for Dresslier to position Daily Naturals to this market, they must take into account that these customers are always “on the go”. It would therefore be most efficient to position Daily Naturals out of convenience. By using retailers, such as pharmacies nearby grocery stores, local communities and Schools.

28 6.3.2POSITIONING FOR ESTABLISHED FAMILIES

This target market is driven by the demand for quality and value locally produced products as the most important attributes when purchasing haircare products. In order for Dresslier to position its Daily Naturals product line to “established families” it is important that Dresslier clearly communicate its value proposition by focusing on the quality of Daily Naturals to reach this target market.

6.3.3POSITIONING FOR STUDENTS

Dresslier need to acknowledge that the target market “students”, are very price sensitive and more concerned with price than brand. In order for Dresslier to position its Daily Naturals product line to this target market, they may have to work harder to establish a customer relationship, by offering sales promotions, such as discounts, “buy 2 pay for 1”, and trio- packages (shampoo, conditioner and styling products).

7.0 K EY S TRATEGIES

Taking the key issues, sales and marketing objectives into consideration, the key strategies will help to illustrate what Dresslier could do to accomplish its goals. To be able to enter the Australian pharmacy market, they need to establish a well- known brand name. Implementation of specific strategies is essential for Dresslier to be able to survive in a mature haircare market. All of the strategies presented focuses on gaining a sustainable growth, by considering financial margins. The purpose of the strategies is to create a unique, valuable and defensible offer, which addresses the three target markets. A defensible offer is one whose competitive advantage is sustainable by virtue of the fit and alignment of the activities and capabilities deployed by Dresslier against the offer (Michael Porter, 1996).

7.1 M

ARKET

P

OSITIONING STRATEGY Indirect distribution channel:

For Dresslier to be able to expand its distribution of Daily Naturals, they would need an indirect distribution channel. Currently Daily Naturals is sold in National Pharmacies, which have 51 stores nationwide in Australia. Each National Pharmacies sells approximately 50 units of Daily Naturals weekly (Dresslier, 2018). By establishing cooperation with an indirect distributor in the pharmacy market, Dresslier will be able to further expand the Daily Naturals product line. As the Daily Naturals product line is in the introduction stage, without the same financial power as some of its competitors, it is important to have a sustainable growth. The sales growth should provide margins in the short and medium term, in order to prevent Dresslier totake unnecessary high risks. To secure a sustainable growth, Dresslier ought to carefully consider which indirect distributor they choose to engage with.

29 Sample marketing:

As haircare products are a part of customer’s daily life, free samples will contribute to keep Daily Naturals in front of the customers on a daily basis, which contributes to visualize the product (Rasen, 2012). Before and during the expanding process, it is important that Dresslier manage to visualize Daily Naturals for the target markets. One of the most efficient ways to promote a new product is through free samples. Free samples allow you to demonstrate the quality of your product, while at the same time building goodwill with potential customers.

Sample marketing can also invoke to reciprocity, when people receive something for free, they will be more likely to purchase the product in the future.

7.2 B

RAND

A

WARENESS

S

TRATEGY Branding:

A well-defined and executed branding strategy affects all aspects of the Daily Naturals product line and is directly connected to the different needs from the target markets. A branding strategy goes beyond Daily Naturals product and logo, by including the intangible aspects of Daily Naturals. It is important to connect with its target markets on an emotional level, to create brand awareness, as people tend to do business with companies they are familiar with (strategynewmedia, 2017). A branding strategy that clearly define Daily Naturals purpose and focus on consistency, contributes to brand recognition and further customer awareness. For Daily Naturals to be able to increase sales by 500% within June 2020, it is crucial that they are able to develop a good branding strategy with the most efficient branding activities.

Marketing consultant:

At an early stage of growth, companies need a certain amount of marketing to be able to provide success and create brand awareness (Profitguide, 2014). Marketing consultants have a variety of different tasks, and specialisations in different areas of marketing. There are several benefits by using a marketing consultant. Firstly, a consultant will save Dresslier time, by doing research and providing marketing activities. Secondly, a consultant provides outside perspective on the haircare industry. Finally, it is only a short-term commitment for Dresslier (Alton, 2017).

7.3 B

RAND

L

OYALTY

S

TRATEGY Research and development (R&D):

R&D is a valuable strategy too conduct, as it can lead to innovation and increase productivity.

R&D involved researching of the market and customer needs, to be able to develop and improve the products and services to fit these needs. For small businesses, such as Dresslier, R&D tends to focus more on product improvement, due to budget and cost limitations (Business Queensland, 2016). A continues focus on product development to meet the target markets needs, contributes to build loyalty to the brand. Product development and innovative

30 improvements, can contribute to make Daily Naturals the obvious and unconscious choice for the customers and prevent brand switching.

In a Darwinian sense, smaller firms have the advantage of being able to evolve rapidly, which in turn, enhances the competitiveness and chance for survival (Hatch & Zweig, 2001).

Dresslier can benefit from being a small company, especially related to flexibility in R&D.

Flexibility is one of the key factors to success, by having the ability to react quickly to developments in the marketplace, and to make the necessary changes to its competitive positioning.

Customer service:

Customer service is not just about being considerate to your customer, it is also a vital

element of business operations that can impact the bottom line and affect how the company is viewed in the public (smallbusiness, 2018). In a competitive haircare market with a

significant threat of competitors producing similar products, it is important to gain loyal customers and prevent brand switching. Daily Naturals direct competitors may be more established in the market or offer better prices, but these factors are hard to control. It is therefor important to focus on the controllable factors, by looking at the service’s Dresslier can offer. A superior level of customer service is a good way to create loyal customers (Furgison, 2016). Good customer service is especially important for products in the

introduction stage, as it generates positive word of mouth. Generating and keeping loyalty to the brand is crucial to compete and grow in a mature market (Australian Government, 2018).

8.4 M

ONITORING AND

C

ONTROL

After implementing the suggested strategic recommendations, it is of significant importance to have a comprehensive but clear plan of how to monitor and control the outcome of the recommendation. As marketing is a big part of the strategic recommendations, it is extremely important to measure the results derived from the marketing activities. This will ensure Dresslier that they continue to gain value from their investments in marketing. Also, an assessment of an increase in sales or customer numbers as a result of promotional activities allows Dresslier to understand who the activities provide results.

8.0 K EY R ECOMMENDATIONS

Based on the analysis from part A and B, and the described key strategies, Dresslier should consider these recommendations to improve its Daily Naturals product line.

Furthermore, it has been developed a budget plan to the recommendation, in order to control

31 that the allocated $500,000 towards marketing is spend in the most sensible way (i.e. see Appendix 7).

8.1 M

ARKET

P

OSITIONING

R

ECOMMENDATION

Firstly, Secondary research from part A shows that Priceline Pharmacy is the most appealing pharmacy for the Daily Naturals product line, as they have the ability to express the important value; quality. Therefore, Dresslier should choose Priceline as its indirect distribution channel to expand the distribution of Daily Naturals across Australia. Dresslier need to contact the Australian Pharmaceutical Industries (API), which is the parent company of Priceline to arrange an agreement (api, 2018).

A partnership with Priceline, will make Dresslier the supplier and Priceline the reseller of the Daily Naturals products. Priceline have 400 stores nationwide in Australia (Priceline, 2018).

As Daily Naturals is considered to be in the introduction stage, it is firstly reasonable to assume that Daily Naturals could be sold in 200 Priceline stores, in addition to the current 51 National Pharmacies stores. 2019 should be considered as a trial year for the cooperation, which further can be expanded in parallel to the success rate of the partnership. Moreover, Priceline would be the one to decide the Recommended Retail Price.

Two weeks before the nationwide launch of Daily Naturals at Priceline, Dresslier should conducted free samples to possible customers. It is especially important to reach the target markets. Dresslier should participate at “All natural” and “Vegan” events and use free samples of Daily Naturals as a way to stand out. By participating at such events, they would most likely reach the target market “newly married with young children” and “established families”. The target market “students”, would be harder to find at such events, as they rarely buy all Natural products. On the other hand, research from part A shows that many students are unaware of the benefits of using all natural products, free samples could therefore be used to eliminate doubt and inform of benefits (Rasen, 2012).

8.2

BRAND

A

WARENESS

R

ECOMMENDATION

Secondly, it is recommended that Dresslier hire a marketing consultant, which can contribute to establish brand awareness of the Daily Naturals product line. The marketing consultant can provide Dresslier with the proper marketing insight for development of marketing activities in the introduction stage of Daily Naturals. The marketing consultant should have the

responsibility for increasing the general marketing of Daily Naturals and establish Social Media presence. The marketing manager should cooperate with Dresslier’s current in-house marketing team for a five-months period, starting 1^st of August 2018, to establish a well- known brand name of Daily Naturals.