Marketing Analysis

Marketing Analysis
Angel Morris, Juan
Duarte, Miguel

Amaya, Efrain
Gomez

Carol Davis
BUS 306
December 7, 2014

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Table of Contents
Table of Figures..................................................................................................................4
Executive Summary...........................................................................................................5
Situation Analysis...............................................................................................................6
Market Summary................................................................................................................6
Geographic.........................................................................................................................7
Demographic......................................................................................................................7
Income............................................................................................................................8
Age and Family Life-cycle...............................................................................................8
Behavioral Factors..............................................................................................................8
Market Needs.....................................................................................................................9
Market Trends...................................................................................................................10
Market Growth..............................................................................................................11
SWOT Analysis.................................................................................................................11
Strengths......................................................................................................................11
Weaknesses..................................................................................................................12
Opportunities................................................................................................................12
Threats..........................................................................................................................12
Competition......................................................................................................................12
Product Offering...............................................................................................................13
Keys to Success................................................................................................................14
Critical Issues...................................................................................................................14
Marketing Strategy...........................................................................................................15
Value Proposition..........................................................................................................15
Mission Statement............................................................................................................15
Marketing Objectives........................................................................................................16
Financial Objectives.........................................................................................................16
Target Markets..................................................................................................................16
Positioning........................................................................................................................17
Strategies.........................................................................................................................17
Marketing Mix...................................................................................................................18
Pricing...........................................................................................................................18
Distribution...................................................................................................................18

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Marketing Communication............................................................................................19
Marketing Research......................................................................................................19
Breakeven Analysis......................................................................................................20
Controls.........................................................................................................................22
Implementation.............................................................................................................23
Marketing Organization....................................................................................................24
Contingency Planning......................................................................................................24
Works Cited......................................................................................................................26
Appendix..........................................................................................................................27

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Table of Figures

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Chemical Comparison..............................................................................................4
Survey Data............................................................................................................. 7
Survey Data............................................................................................................. 8
Break-Even Analysis Graph....................................................................................19
Sales Forecast........................................................................................................ 20
Sales Forecast........................................................................................................ 20
Fix and Variable Cost............................................................................................. 21

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Executive Summary
Consumers in the U.S. are becoming more aware of how the products they consume affect the
world around them. Household cleaners are products that consumers view as abrasive and harm
the environment. Some of the ingredients listed on labels of these cleaners are known to be
carcinogenic, and cause side-effects such as asthma attacks, and other respiratory diseases. This
situation presents the opportunity for LAs Totally Awesome to introduce Super-Blue an
environmentally friendly cleaner into the household cleaner market.
The cleaning product manufacturing industry in the U.S. generates about 51.97 billion U.S.
dollars annually. The cleaning product market presents Super-Blue with an opportunity to
compete in market in which there are a limited number of environmentally friendly cleaning
products. LAs Totally Awesome will be targeting customers who use cleaning products to
sanitize homes, offices, hospitals, schools and restaurants. Consumers will have the opportunity
to purchase Super-Blue at a national level in stores like Dollar Tree, 99 Cents only Store, and
Dollar General.
The main competitors of Super-Blue will be the likes of Green Works, Simple Green, and Green
Clean, which are also environmentally friendly all-purpose cleaning products. Super-Blue has an
advantage over these competitors in that, this product will be sold at discount stores, and will be
priced at lower prices compared to the competition. This approach will position Super-Blue in
the minds of consumers as a great product at an exceptional price.
LAs Totally Awesome has set a goal of selling a yearly rate of 1,500,000 units of Super-Blue by
year three of this product being in the environmentally friendly cleaner market. This Objective
was set in order to achieve profitability, and after analyzing the break-even data. Super-Blue will
be sold at $2.6 per unit, and sales are expected to reach the break-even point by month nine after
introduction to market.
LAs Totally Awesome already has an extensive customer base, which includes people who
purchase their products from discount stores. The initial introduction of Super-Blue will be
focused on pushing LAs Totally Awesomes environmentally friendly cleaning product line to
consumers so they can adapt to using environmentally friendly cleaners. Super-Blues superior

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cleaning abilities and low price will help ensure that customers become aware of this products
value.

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Situation Analysis
The main goal of having a clean home is to keep a good health. Then, the cleaning activities
might part of the daily life of most people in the United States. The necessity of cleaning
generates a substantial level of competition in the current cleaning manufacturing industry.
However, the existing brands are not properly satisfying customers needs. Most of the
households interviewed stated, that during the cleaning activities they have to use all kind of
protection including masks, goggles, and gloves, so they can minimize the risk of getting sick,
due to the toxic emissions most cleaning brands release to the air (personal communication,
October 16, 2014). According to the users, these precautions might increase when children and
pets are around.
This situation presents an opportunity to the all-purpose cleaning Super-Blue, a friendly
environmental, non-toxic, concentrated formula that is easy to use. Super-Blue certainly
eliminates all the extra cost, labor, and health risks customers experience every time they use
current brands. The following table shows, a chemical comparison between other brands and
Super-Blue.
Figure 1 Chemical Comparison

(Sunshine Makers, 2014)

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Market Summary
Statista Inc. reveals that the cleaning products manufacturing industry in the U.S. generates an
estimate of 51.97 billion U.S. dollars annually, and 26% of these earnings are on the hands of the
soap and cleaning compound manufacturing industry (Statista, 2013). Procter and Gamble
(P&G) is one of the strongest competitors in the industry. P&G controls almost 20% of the
cleaning product market, with estimate annual revenues of 10.18 billion (Statista, 2013).
Super Blue will be targeting people that use products to clean homes, offices, hospitals, schools,
and restaurants. These places are of special interest, since they have the greatest needs for the
product. Keep the family healthy is very important, then, there are places at home like bathrooms
and the kitchen, that need to be clean all the time. Offices and commercial places also need to
keep their installations clean to attract more customers. Schools have the obligation to keep
children safe. Finally, for hospitals the cleaning activities are mandatory duties, so germs from
that place do not spread into the environment. Emphasizing that the product is safe and
eliminates germs will be the key in targeting these segments.

Geographic
The product will be manufactured in West Memphis, Arkansas and Orange County, California.
The distribution of Super-Blue will be at national level. The 2013 expenditures survey of the
Bureau of Labor Statistics suggests that in the U.S. the total average annual expenditures in
housekeeping supplies by region is about $ 655. The survey includes data from the Northeast,
Midwest, South, and the West region with annual expenditures of $ 648, 665, 586, and 721
respectively (U.S. Bureau of Labor Statistics, 2013).
The consumer expenditure analysis of housekeeping supplies suggests that population density
will have a minimum impact on the selection of Super-Blues target market. According to the
2013 expenditures survey of the U.S. Bureau of Labor Statistics, the average annual expenditure
for housekeeping supplies outside urban areas is $ 667; while, the expenditure on similar
products in the urban areas is about $ 636. The total average annual expenditures for the urban
area, is based on the estimate of 100,000 to 5000,000 households (U.S. Bureau of Labor
Statistics, 2013).

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Demographic
Kotler suggests in his book Principles of Marketing to classify the demographic segment in
factors related to gender, occupation, income, age, family life cycle and other important factors
(Kotler & Armstrong, 2014, p. 194); Accordingly, Super-Blue will use income, age, and
occupation to target the market. This will help to properly monitor customers needs.

Income
The main focus of the product is the low- and middle income families. Information from the
bureaus 2013 survey indicates that families with annual income from $10,000 to $ 70,000 and
more; spend about $ 542 in housekeeping products a year. While, consumers with annual income
from $ 100,000 to $ 150,000 and more; expend an average of $ 1,112 a year for similar products
(U.S. Bureau of Labor and Statistics, 2013). Another source, suggests that as much as 15% of
the American population could fall into the upper class, these families makes about $ 150,000
or more than $ 250,000 a year (Alhanati, 2012). The main reason, of targeting low and middle
income families is because they represent a potential 85% of the market, however, the company
does not ignore the great advantage of building good relationship with high income consumers as
well.

Age and Family Life-cycle

The goal of Super-Blue is to generate extra value to all customers. Nevertheless, the analysis of
consumer expenditures on housekeeping products, suggests that customers that are 30 years and
older expend more in housekeeping supplies, than customers under 30 years. The Bureaus 2013
survey reveals, that 30 and older customer expend about $ 684 a year on housekeeping products,
while customers under 30 years expend approximately $ 402 a year (U.S. Bureau of Labor
Statistics, 2013).

Behavioral Factors
Marketing for Super-Blue the company will focus on personal and social factors. The company will push the
product to schools, hospitals, and restaurants who really emphasize on staying clean to not help spread germs
around their facility or building. Also, the product is low in price where it will be a great fit to those on a

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budget. This personal factor will aim to those with an occupation in any of these fields. The company will also
push Super Blue product to women and low-income families. The low price of product will be suitable to those
families who are at low financial standings because it will not be a big burden on their wallet. They will get a
safe and green product at a suitable price. The company will also target women because they are mostly known
to look at the product and the ingredients it contains for safer use. A psychographic variable that the company
will focus is on its values because a lot of women take pride in having a clean home. A behavioral factor that
the company will focus on is usage rate and looking at how often consumers use cleaning products and what
type of cleaning products they use.

Market Needs
Researching the competition the company found many cleaning products had harmful chemicals in them such
as ammonia, sodium hypochlorite, and 2-butoxyethanol (epa.gov). Also many green products out in the
market are at a high price. The analysis indicates that the groups the company is trying to attract are looking
for safe environmental cleaning products at a low price. According to the survey (refer to Marketing Research
section) the majority of the people agreed to buy environmental friendly cleaning products that would be at an
affordable price. The following graph shows some of the customer needs.

Figure 2 Survey Data

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Figure 3 Survey Data

Recently, the University of Berkeley in California in combination with Lawrence Berkeley National
Laboratory, conducted a study to determine if the use of cleaning product were harmful to humans. They
copied indoor characteristic where the cleaning activities usually take place, then, they calculated the chemical
emission coming from cleaning product. At the end of the experiment, they concluded that most multi-purpose
cleaning products release to the air chemical substance like glycol ethers, formaldehydes, and ultrafine
particles that are harmful to humans if they are used continuously. Glycol ethers according to the ARB are
classified like Toxic Air Contaminants and high exposure might lead to exposure to one of the compounds,
2-butoxyethanol (ARB, 2008), a human carcinogen that cause cancer, trigger asthma, and related lung and
heart diseases.

Market Trends
Environmentally friendly products are a trend that are steadily taking over the consumer market.
As an example, in the automotive industry, environmentally friendly all electric vehicles have
seen a 228% increase sales in 2013 (Shahan, 2014). The light bulb market is good example
where environmentally aware products completely took over the market, while traditional
filament light bulb production in the U.S. has ceased as of January 1, 2014 (Kiger, 2013).
According to Cleanlink (2013), consumers in developed countries have become more aware of
how their everyday activities are affecting our world, in other words consumers are buying
products that have less of an impact on our planet. By introducing a cost-effective,
environmentally friendly all-purpose cleaner, LAs Totally Awesome will be able to stretch its

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current product line and gain an increase in its market share of all-purpose cleaners by taking
advantage of the environmentally friendly market trend.
An important variable that is affecting the all-purpose cleaner market is cost-effectiveness.
Cleanlink (2014) says that the significance of cost vs. effectiveness changes according to where a
product is being sold Customers in developed regions often dont mind higher prices for a
product if it performs well, while underdeveloped regions are sometimes willing to buy products
that do not perform at a high level but have a low cost. LAs Totally Awesome can address this
trend by offering Super Blue in smaller bottle sizes and at a lower price, which would allow the
product offering to gain acceptance in both developed and underdeveloped regions.

Market Growth
The eco-friendly or green cleaners market is growing at a fast rate, as noted by Wholefoods
magazine (2010). The green cleaners retail market is anticipated to grow to 7% as of this year,
up from 3% of the total household cleaners market. This market growth is not expected to
decline in the coming years, as the total cleaner market is forecast to grow at 3+% per year
through 2018 (WholeFoods, 2010), and the eco-friendly market is expected to have a
compounded 27% annual growth rate (WholeFoods, 2010). This means that not only is the
cleaner market expected to grow, but that the eco-friendly green products are expected to
increase their share of the cleaner market.

SWOT Analysis
Strengths
Super-Blue has the advantage that it is a result of product line extension by LAs Totally
Awesome, and all the infrastructure needed to launch this new product is already in place. LAs
Totally Awesome already has customer equity and can use this as an advantage when launching
Super-Blue, as customers already familiar with the LAs brand will be more willing to accept
Super-Blue.
Another strength that LAs Totally Awesome has is that it chose a name like Super-Blue for its
product and can differentiate itself from other eco-friendly products most of which have similar

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names like Rock on Green, Clean Green, Simple Green, and Green Works. Super-Blues name
stands out among its competitors, and at the same time implies superiority.

Weaknesses
At the same time Super-Blues name can also be a weakness because although it does stand out,
it does not imply eco-friendliness, and is more like likely to be confused with a Windex (due to
the color), or even a Super Glue competitor, than a Green Clean rival. Another weakness that
LAs Totally Awesome has is that it is a fairly new company. It was founded in 1983 (Awesome
Inc., 2014), and as a result it might not have as strong brand equity as other competitors like
Clorox who has a similar product offering named Green Works.

Opportunities
LAs Totally Awesome proudly states on their website that their products are made in the U.S.
(2014). Super-Blue could benefit from using made-in-USA as a marketing tool. According to
St John (2013), 80% of American consumers are willing to pay more for products made in the
USA. The use of made in the USA as a marketing tool for Super-Blue, combined with the ecofriendly trend can result in a greater chance of success for our Super Blue all-purpose cleaner.

Threats
One of the risks that LAs Totally Awesome runs by extending their product line, is cannibalizing
its current all-purpose cleaner product offerings. Super-Blue also faces a big competitor in
Cloroxs Green Works, therefore limiting Super-Blue to a smaller market share of the already
small eco-friendly cleaner market.

Competition
One competitor that has great reviews is Green Works. This company uses plant- and mineralbased cleaning ingredients, comes from biodegradable ingredients that are derived naturally, not

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tested on animals, and has environmental sustainable packaging whenever possible. Right now
Green Works has 11 products on their product line.
These products include:

All-purpose cleaner

Bathroom cleaner

Chlorine-free bleach

Compostable cleaning wipes

Dishwashing liquid

Glass cleaner

Glass and surface cleaner

Hand soap

Laundry detergent

Oxi stain remover

Toilet bowl cleaner

Green Works (GW) only target is mothers and is moderately more expensive than traditional
cleaners. All major stores sell this brand and are also available for sale on their official Green
Works Cleaner website. The going price for their all-purpose cleaner is $2.99 (Target, 2014). GW
markets through advertisement such as using their Facebook page to reach this new generation.
One successful strategy they currently have is a 75 cents off coupon when you rate and review
their products. This strategy works for them because not only do the customers benefit but so
does the company. With this strategy in place, they receive information from consumers on what
should be changed or what is working. Getting feedback is essential for a company. GW also has
a free monthly newsletter in which you can sign up automatically using your Facebook account.
Their monthly newsletter benefits include:

Special offers

Exclusive events

Cleaning tips

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Product Offering
Our product, Super-Blue, is an all-purpose environmental friendly cleaner. Super-Blue is nonflammable, no silicone, and non-corrosive. Its safe to use on multiple surfaces throughout a
persons household such as in the kitchen and bathroom. Surfaces it works well on includes
counters, cooktop hoods, sinks, toilets, and appliances. This product is free of harsh chemicals by
being 98% naturally derived. Super-Blue is also a great product for the industrial level. Industries
can use this product to clean work pieces, tables, pliers and other tools, welding equipment.
LA's Totally Awesome focuses on customer satisfaction and needs; customers are the reason for
our work. We work hard to make sure each customer has their own individual prodigious
experience with our product. Customers will be informed of our benefits through advertisement:
TV commercials, newspapers, and through the internet. Our most important piece that we
believe, as a company, is vital to every customers experience with our product is our customer
support line. With this type of support, company specialist will be available to assist any
customer questions and concerns. A specialist is also available to make an in-person visits to
ensure correct use and how to get full use of the product. As an eco-friendly company, we
understand the importance of having and keeping a good relationship with our customers,
suppliers, and distributors.

Keys to Success
Green cleaning products are quickly rising in the cleaning market. They are being sold in stores
throughout the United States. What our product offers is personal benefits for our customers:
low-cost and serves the environment.
When an economically friendly cleaner is introduced, its essential target is mothers. Our product
also targets huge companies. Our all-purpose cleaner can be used for almost any surface: all
purpose. Its important that we have more than one target. Customers are vital to a companys
success; we are consciously aware of this fact. Because we are aware of this, we have widened
our target spectrum. Targeting huge companies and industries helps us in terms of our sales.

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Critical Issues
While the company is targeting low-income families and offering the product at lower prices, the
company came to the issue that Super- Blue is entering a market where the company is already
competing against bigger name brands. These brands like Clorox and Lysol already have a
cultural value to it where it has become a custom to keep buying the same brand. For example, if
a mother buys the same cleaning product every time, some children become accustomed to
seeing that product and develop a connection with it. It will be difficult to compete with these
products and try to capture the attention of those customers. One big critical issue that the
company could face is another competitor that also makes low price green cleaning product
coming out into the market. Right now, Super Blue will be one of the only products that are
selling a green all-purpose cleaning product at half the price of the competition.

Marketing Strategy
Super-Blue is designed to be environmentally friendly, but a fierce combatant against dirt, grit
and grime. Consumers will be able to trust Super-blue with their most delicate cleaning tasks, as
well as with the toughest clean up duties.
To facilitate promotion and distribution at national level, the company will work closely with
discount stores like Dollar Tree Store, 99 Cents only Store, Dollar General Store, Family Dollar
Store, and many more companies in the U.S. that promises a discount (Awesome Inc., 2013). The
use of technology will facilitate the distribution and the promotion of the product. The LAs
totally awesome company is incorporating an online platform. The platform can be managed
from the companys webpage, by using any smart-phone, tablet, or computer with access to
internet. This application make easy to customers to locate the closest discount store where the
product is available; besides, they can have access to the product details such as prices,
promotions, discounts, product location among the store, and many more information and details
about the product, so they can make a good purchase decision.

Value Proposition
In introducing Super-Blue to the environmentally friendly all-purpose cleaner market, LAs
Totally Awesome will provide consumers with a low priced alternative product for the
environmentally conscious consumer. Super-Blue will exceed the cleaning performance levels of

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household cleaners that are currently in the market. LAs Totally Awesome will provide a product
that is priced low and performs better than its competition, and Super-Blue will do this in an
environmentally friendly way.

Mission Statement
LAs Totally Awesome is committed to providing customers with the most environmentally
friendly and effective surfactants at the best possible price. We constantly strive to meet
customer needs and deliver high value products at outstanding prices.

Marketing Objectives
In order to capitalize on information obtained through market research in which it was found that
87% of respondents are willing to purchase an environmentally friendly all-purpose cleaner
(Amaya, Duarte, Gomez, Morris, Survey, December, 2014). LAs Totally Awesome must
penetrate the environmentally friendly all-purpose market by extending its product line to
include Super-Blue in its line-up, and position itself in the minds of consumers as the market
leader in environmentally friendly cleaning products. The objective of this strategy is to increase
its market share, which will eventually lead to an increase in profitability.

Financial Objectives
It is LA's Totally Awesome's goal to sell 320,000 units at $2.60 per unit within the first nine
months of having Super-Blue on the market in order reach the break-even point of $832,000
(refer to figure 2: Break-even analysis). Super-Blue is expected to have an annual sales rate of
1,200,000 units in the first year of introduction yielding $3,120,000 in revenue. LA's Totally
Awesome expects to see a 10% increase in sales in the second year compared to year one. In year
three it is expected that unit sales will have increased to 1,500,000 per year resulting in an annual
revenue increases of 25% compared to year one, which would translate to $3,900,000 annually.

Target Markets
Super-Blue is targeting housekeepers and companies offering cleaning services to other
businesses. This segment has a lot of purchasing power in the market; for example, housekeepers
work in all types of places, from small apartments to large homes, and usually they suggest to

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their clients what kind of cleaning product offer the best benefit. The cleaning service industry
plays an important role in the success of Super-Blue. Basically, they are the future connection to
places like offices, schools, hospitals, and many more institutions in need of all-purpose cleaning
products.
When an economically friendly cleaner is introduced, its essential target is mothers. Our product
also targets mothers in the households, however, we also target huge companies. Our all-purpose
cleaner can be used for almost any surface: all purpose. Its important that we have more than
one target. Customers are vital to a companys success; we are consciously aware of this fact.
Because we are aware of this, we have widened our target spectrum. Targeting huge companies
and industries helps us in terms of sales.

Positioning
Super-Blue will be positioned as a more for less product (Kotler and Armstrong, 2014). SuperBlues customers will get the lowest price in the market for an all-purpose cleaner, in comparison
to the competition. LAs Totally Awesome will continue to grow the eco-cleaner market by
continuing to use its current distribution network, which places products in front of customers
that respond to a more for less value proposition. In placing Super-Blue in stores like Dollar
Tree, Dollar General and Food4Less, LAs Totally Awesome can differentiate Super-Blue from
its competitors as the environmentally friendly and effective cleaner at rock bottom prices that
are hard to beat.
When positioning our brand we thought about our customers need and what would appeal to
them. Super-Blue was named to connect its consumers to a desirable benefit. The Super in its
name shows that our cleaning product is a heavy-duty substance that was designed to clean tough
surfaced. This is desirable to consumers for the simple fact that many people take hours to clean
multiple surfaces because their cleaning products are not as strong so the process takes longer.
LAs Totally Awesome will implement our product as a low-priced and great performing cleaning
product. Super-Blue will exceed the cleaning performance levels of cleaners that are currently in
the market by having a low price, the product being heavy-duty, and also eco-friendly. We want
our consumers to engage with our product on a deep emotional level. The names explains its
strength which will attract consumers to try the product. Once they have tried Super-Blue we
want them to have a connection with the product. The connection of finally finding something

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that cleans easily, does not take much out of their wallet, and is better for the environment which
is something our society needs at this time.

Strategies
The strategy of Super-Blue focuses on the cleaning products value proposition. The product is
reached to our consumers by the low cost. Next advertising this products benefits from being
eco-friendly will be used to attract buyers that are not concerned with the price, just the cleaners
quality. In introducing Super-Blue to the environmentally friendly all-purpose cleaner market,
LAs Totally Awesome will provide consumers with a low priced alternative product for the
environmentally conscious consumer. Super-Blue will exceed the cleaning performance levels of
household cleaners that are currently in the market. LAs Totally Awesome will provide a product
that is priced low and performs better than its competition, and Super-Blue will do this in an
environmentally friendly way. According to Queensland Government, Promoting your
environmentally friendly methods can set your business apart from your competitors and attract
new customers who want to buy products and services from an environmentally friendly
business (For Business, 2014).

Marketing Mix
Pricing
The company started determining the price for Super-Blue and decided to base it of the
competitions price. The company wanted to set a price that was lower than any all-purpose green
cleaning product in the market. This would attract Super-Blues target market, who are low and
middle-income families (many who are on budgets). Researching the most popular competitors
the company found that Clorox Green Works and Simple Green to be the biggest names in the
market and are priced above $5.00. Basing the product price from the companys research the
company determined the product price for Super Blue to be $2.60. This price would attract Super
Blue target customers because it is almost half the price of the leading competitors and the
quality is just as good.

Distribution
The company will be distributing Super-Blue to customers by buying the materials and
chemicals for the product, making the product, selling to the stores, and relying on them to sell

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the companys customers. This four -step system was the best option for the product because the
company wanted the product to be sold in stores so customers can see it. The companys
distribution plan also minimized as much middlemen from getting the product to the customer.
LAs Totally Awesome products are sold at stores like Dollar Tree, Food4Less, and Superior
Grocers (lastotallyawesome.com) and the company wanted to add Super Blue to that line.
Families that are already familiar with LAs Totally Awesome cleaner will see that there is now a
green cleaner and they will be curious to try Super- Blue.
This distribution process will help Super Blue to get to the companys desired stores along with
other products from LAs Totally Awesome line. Selling to these stores helps them to get to the
companys target customers because low and middle -income families are the main demographic
that shop there.

Marketing Communication
There are so many green cleaning products out in the market and the company wanted to show
the customers that you can get a safe green cleaning product without having to pay a high price,
and still get the same quality. The company decided to do comparative advertising where they
would directly compare Super Blue with another all-purpose green cleaning product (Kotler &
Armstrong, 2014, p. 435). The company would do comparative advertising through a 30 second
commercials and also through social media. With the commercials the company will be
advertising in local channels and will also be doing a commercial in Spanish to target the Latino
market. The company decided this would be the best option for the product because many low
and middle-income families are the ones watching these local channels. Social media will also be
a good way to communicate Super Blue to the public because many people around the world are
online and that way the company will be able to reach them with minimal cost.

Marketing Research
The companys secondary data consisted of information that already existed within LAs Totally
Awesome cleaner, looking at customers buying that product. The company is looking to target
the same customers while also attracting new ones. In order to attract new customers the
company looked at Internet search engines and gathered as much information about Super Blues
competition and the opinions of the people trying their product had. Gathering this information
would help us develop Super Blue to have similar qualities as the companys competition while

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at the same time looking at their problems with their product and making Super-Blue to gain
some of their customers.
The companys primary data consisted of survey research in where the company developed a set
of questions to ask the public about their cleaning habits and if they use green products. Below
you will see a chart with the most common answers for the questions the company asked:
How often do you use all -purpose cleaning products?

Most of the time

64%

How safe do you believe the cleaning products you buy are?

Not very safe

84%

How often do you read a cleaning product ingredient label?

Never

94%

Would you buy an environmental friendly all-purpose

cleaning product?

Yes

87%

When it comes to cleaning your home, have economic

conditions influenced you in any of the following ways?

You buy less expensive

cleaning products

88%

In the future the company looks to move forward with online marketing research to conduct
Super Blues research because the company sees more customers going online to look up
products. The company wants to keep Super Blue in the market for as long as possible and
keeping up with technological advancements will be key in making this happen. With online
marketing research the company can conduct the products surveys through the internet and track
consumers online behavior.

Financials
Breakeven Analysis

The following graph shows the break- even point of Super-Blue.

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Figure 4 Break-Even Analysis Graph

The total fix cost is $ 480,000 and the variable cost is $ 1.10 for unit produced. The
details of the total cost are described in the following section of the analysis. According
to financial information, during the first eight months of introducing Super-Blue to the
market, sales will growth slow, and total cost will be high enough to absorb any profit.
However, it is estimated that by month nine the company will be selling 320,000 units
of the product to reach the break-even point indicated in the graph. At break-even point,
sales will equal total cost by $ 832,000 approximately, and after that, sales will
generate profits.
Sales Forecast
The total sales forecast for the first year will be 1,200,000 units which are expected to
be sold at $ 2.60 per unit, giving the company a total of $ 3,120,000 in sales at the end
of the year. It is expected, that the current low price of $2.60 per unit, will increase
customer demand during the next two years for about 10 and 25 percent respectively,
which is according to plant capacity.

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Figure 5 Sales Forecast

Figure 6 Sales Forecast

Expenses
The expenses forecast showed in the following illustration, represents estimates of fix
and variable cost needed to incorporate the product to LAs Totally Awesome operations.

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Figure 7 Fix and Variable Cost

The first line of the fix marketing expenses is associated with the salary, and employee
benefits of the product manager that will be in charge of following the marketing
program of Super-Blue. Also, the product will absorb $ 60,000 annual rent of office
installation located in Orange County, California. Information from the marketing
communication camping, suggests that the company will expend an estimate of $
240,000 in advertising and promotion (about 50% of total fix expenses), to
communicate the product benefits to the target market. The estimated cost of the
communication campaign may include: the purchase of a website statistic package, TV
and radio commercials, promotions, trade shows, packaging designs, adds, direct mail,
and public relations. All variable cost are associated to $ 1.10 per unit produced. They
include production employees wages and benefits, machinery and equipment,
depreciations, maintenance, raw materials, laboratory expenses, and miscellaneous
expenses related to the manufacturing of Super-Blue.

Controls
The plan we have designed to monitor progress, is based on two main approaches. First, we have
the return on investment approach based on sales, which means that most of the marketing
budget, especially the investment in advertising and promotion will be tied to sales. For example,
increases in sales will be a good indicator to increase spending on the marketing strategy, but a
drop in sales will need a hold on spending, that will be a warning to re-evaluate each area of the

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marketing plan. The contribution margin of total sales acceptable would fall between 40% and
45%, after reaching the break-even point described in the financial analysis.
In combination to the sales approach, the company will use the customer-center approach. The
customer-center approach will measure Super-Blues marketing impact, which might include
customer acquisition, customer retention, customer lifetime value, customer satisfaction and
equity. This approach complements the sales objective, and our current marketing strategy.
Additionally, the customer approach will measure Super-Blues future in the market in the long
run, and the level of customer relationship the product has created in the market. We are
planning the introduction of a corporate website statistic package to collect information such as
customer feedback related to promotions, customer service, products location, and customers
evaluation of distributors. The main goal is to measure customers satisfaction, and increase
customer equity trough out constant improvement.

Implementation
The first step in bringing Super-Blue to market is contacting LA's Totally Awesome's suppliers in order to
purchase materials needed to start the manufacturing process. Once the manufacturing process is started, LA's
Totally Awesome next focus should be to increase the products exposure on social media. Starting an online
presence for Super-Blue will prime the cleaner market, and build anticipation for the product. Two months
prior to releasing Super-Blue, distributors like Dollar Tree, 99 Cents Only, Dollar General, and Family Dollar
Store will be provided with manufacturer coupons to be distributed in stores. Coupons can also be distributed
via mail, with an increased focus on households who are geographically closest to stores where Super-Blue
will be sold. This strategy will ensure that customers are aware that Super-Blue is being introduced to market,
and give consumers a chance to compare Super-Blue's price compared to the competition. On launch date,
sample stands will be made available throughout the different stores where Super-Blue will be sold. These
stands will allow customers to touch, feel and smell Super-Blue, as well as test its efficiency in cleaning.
Customers will be encouraged to post their experiences with Super-Blue on LAs Totally Awesomes social
media page. In addition to experiences with Super-Blue, customers will be asked to upload "How to" videos
that feature Super-Blue. The videos uploaded by real life users of Super-Blue will create a buzz-marketing
campaign.

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Marketing Organization

Contingency Planning
Potential problems that the company might see with selling Super-Blue in the stores is
that the stores that the company sells dont place the product in a visible spot. If stores
place the product at the bottom of the shelf, the customers have a harder time seeing
the product and buying it. Another risk that the company might encounter is the low
and middle-income families still thinking the price is too high for a cleaning product. If
the company doesnt get the message out to those families that a green product is safe
for their families, then the company runs the risk of those families not caring if its
green and just going for another lower price product.
A worst case scenario for Super Blue would be a company coming out with a low price
green product. Right now the company is marketing the product by comparing it to
those high priced green products, but if another company comes out with a lower price
product then Super Blue will have to re-think a marketing and advertising plan. The
company would also run the risk of losing customers to that lower price brand and can
potentially harm Super Blues revenue. This could lead to Super Blue getting
discontinued.
To solve some of these issues, in case the stores are placing Super Blue in a non-visible
location, the companys plan would be keep constant communication with distributors.

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The company will also pay the stores in the beginning for a display shelf so customers
can see that Super Blue is a new product. The company will also make sure that
families are aware that Super Blue is a green product and is safer to use around their
house by advertising it on all of our commercials and in social media. The company will
make sure to focus on that main point in order for families to care about Super Blue
being green. The company will also make sure to emphasize that message on Super
Blues label. If the company faces a new low price competitor then the companys plan
would be to have heavier advertising. The company would make sure that the target
market knows Super Blues brand over any other low-priced green cleaning product.

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Works Cited
Alhanati, Joao. 23 Sept. 2012 "Which Income Class Are You?" Investopedia. Web. 2 Dec. 2014.
<http://www.investopedia.com/financial-edge/0912/which-income-class-are-you.aspx>.
Kiger, P. (2013, December 13). U.S. Phase-Out of Incandescent Light Bulbs Continues in 2014
with 40-, 60-Watt Varieties. (n.d.). The Great Energy Challenge Blog. Retrieved October
15, 2014, from http://energyblog.nationalgeographic.com/2013/12/31/u-s-phase-out-ofincandescent-light-bulbs-continues-in-2014-with-40-60-watt-varieties/
Kotler, P., & Armstrong, G. (2014). Principles of Marketing. Upper Saddle River: Pearson
Education, Inc.
"LA's Totally Awesome Products - Store Locator." LA's Totally Awesome Products - Store
Locator. Web. 5 Dec. 2014.
<http://www.lastotallyawesome.com/html/Store_Locator.html>.
Statista. 2013. Topic: Cleaning products industry in the U.S. (n.d.). Retrieved October 20, 2014,
from http://www.statista.com/topics/1277/cleaning-products-industry-in-the-us/
Sunshine Makers. 2014."Cleaning Product Comparison." News and Media. Web. 7 Nov. 2014.
<http://simplegreen.com/news-and-media/cleaning-product-comparison/>.
Target.com. 18 Feb. 2014. Web. 8 Dec. 2014.
"The Benefits of an Environmentally Friendly Business." Home. 1 Jan. 2014. Web. 5 Dec. 2014.
<https://www.business.qld.gov.au/business/running/environment/environment-yourbusiness/benefits-environmentally-friendly>.
U.S. Bureau of Labor Statistics, 9 Sep. 2013. Consumer Expenditure Survey. Web. 6 Dec. 2014.
<http://www.bls.gov/cex/#tables>.

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Appendix
Survey
All purpose cleaning products survey
How often do you use all purpose cleaning products?

Never

Always

Sometimes

Most of the time

How safe do you believe the cleaning products you buy are?

Very safe

Safe

Not very safe

Not safe at all

How often do you read a cleaning product ingredient label?

Never

At least once

Always

Most of the time

Sometimes
Would you buy an environmental friendly all purpose cleaning product?
Yes
No
When it comes to cleaning your home, have economic conditions influenced you in any of the
following ways? You can mark more than one of the following boxes

You buy less expensive cleaning products

You mix your own cleaning products

You clean less frequently

You buy expensive products if they are effective

None of these

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