The 4 Inventors

Taylor Morelli, Ziwei Li, Valerie McMonigle & Amy Krieger

Marketing Plan: Direct to You Crafts

TABLE OF CONTENTS
I. Executive Summary
II. Mission Statement
III. Situation Analysis
a. Internal environment
i. Organization background
ii. Product analysis
iii. Financial analysis
iv. Channels of operation
b. External environment
i. Market analysis
ii. Competitive environment
iii. Economic environment
iv. Demographic environment
v. Social and cultural environment
vi. Political and legal environment
vii. Technological environment
c. SWOT analysis
IV. Marketing Strategies
a. Target markets
b. Product strategies
c. Pricing strategies
d. Promotion strategies
e. Distribution strategies
V. Implementation and Evaluation
a. Timing and monitoring of marketing plan
b. Methods for assessing the above marketing plan
VI. Overall Summary and Recommendations
VII. Survey & Survey Results

MARKETING PLAN
I. Executive Summary:

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 Direct to You Crafts (DYC) is a craft box that contains a craft idea with step by step

instructions and the supplies needed to create the craft. Birchbox will offer its already established

customer base the opportunity to subscribe to, a pinterest inspired, monthly box. Birchbox

presents Direct to You Crafts! In this marketing plan, we plan to address the company’s mission

statement, situation analysis, marketing strategies and implementation and evaluation. Through

constructing this marketing plan, we aim to give a clear outline of how to sell to our target

market and distribute to our customers. We hope to attract partners within social media and craft

supply stores to develop our product further for the future.

II. Mission Statement of the Company:

Direct to You Crafts’ mission is to deliver a positive creative experience to customers
through crafts targeted to all generations brought to you by Birchbox.

III. Situation Analysis:

a. Internal Environment of the Company:
i. Organization Background:
Birchbox was founded by two friends Katia and Hayley who were not satisfied with the
online experience for shopping for beauty products. They came up with a way for customers to
learn, sample, and buy products through monthly deliveries to your door. The first Birchbox was
shipped in 2010, and in 2012 a men's box was launched. The company has continued to grow
and expanded ever since its release (Birchbox).

ii. Product Analysis:

Birchbox based it’s company around the idea of Paradox of Choice in which people like
the idea of having choices but often become paralyzed once they have to make a decision (Dahl).
By sending a monthly box including multiple products consumers get choices without having to
make a decision. This also provides customers with the convenience of having a quality product
delivered to their door. The box is a larger scale of Birchbox's original box design and inside will

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be all the materials necessary to make the particular craft except for certain utensils such as glue
and scissors which can be included in the box for an extra charge. The various craft ideas will
come from Pinterest inspired craft ideas and the products to manufacture this product will come
from select craft stores such as Michaels.

iii. Financial Analysis:

From a small startup, Birchbox has grown enormously over three and a half years with
800,000 subscribers which equals 96 million in annual profits. In addition, Birchbox also sells
full-sized products, these products will bring the total income to 125 million dollars per year, not
to mention monthly subscription boxes for men as well. All this was accomplished with only 12
million dollars in venture funding. The amount of funding has changed on April 21st, 2014,
when Birchbox received funding from various investors, led by Viking Global Investors. The
investment is valued to be around $485 million dollars. Birchbox plans to use this funding to
increase TV and magazine marketing. They are also planning to expand internationally
(Griffith). These numerical data indicate Birchbox has a strong financial background that is able
to support this new line of products with no problem. The new additional funding from investors
can also be used to advertise the new subscription towards the target market.

iv. Channels of Operation:

Birchbox is headquartered in New York City, with operations in the United Kingdom,
France, Spain,Canada, and Belgium (Birchbox). With this wide reach Birchbox sends products
directly to customers. The channel of operations are a direct channel which means Birchbox
manufacturer sells directly to customers. Direct to You Crafts like Birchbox`s other products will
be shipped directly to customers providing the convenience of one stop shopping.
b. External Environment:
i. Market Analysis:
The subscription boxes market has rapidly grown over the past few years. The success of
a few “high profile” businesses has paved the way for many to launch their own companies in
this field. There is no clear no limit to the size of this market. They are many different categories
and types of subscription boxes from fashion and beauty to pes and kids. While there are a few
craft subscription services it is an area that still has a lot of growth and potential. Several

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subscription companies are now receiving venture capital investment. Birchbox ranks the 6
highest with an investment of $11.9 million. It was also the pioneer of the subscription box world
(Subscription).
ii. Competitive Environment:
Birchbox inspired many copycat companies to get involved in the subscription box
business, but they looked at that as a motion to be better and different. Birchbox differentiated
itself by focusing on data in which the customers fills to match them up with the perfect
products. There are a few other companies trying to promote the crafting box idea, however, we
have a some aspects of our company that allows us to send out. Craftbox for girls provides the
ideas and instruction but the customer still has to go out on her own to find supplies. We can do
all of this plus provide all the necessary supplies and instructions to our customers door. The
company 2 Little Rosebuds is another competitor because they offer subscriptions to a large
category of craft boxes that include supply’s. They do not have a large selection of crafts to
choose from and their website did not describe the crafts wel l(Craft). Senior Craft Box is a craft
subscription catered just to senior citizens, mainly in nursing homes (Engaging). My subscription
addiction offers craft boxes but it only provides supplies for a specific category not a specific
craft. With our brand recognition and special features such as focusing on what the customer
likes and offering a wide variety of crafts that come with supplies and instructions we can
overcome the competition.
iii. Economic Environment:
Gross domestic product (GDP) represents the monetary sum of all final goods and
services produced in a specific time frame and country. It can be used as an indicator for
economic growth and people’s living standard in that country. The yearly real GDP in 2013 grew
by 1.5% and increased to 2.4% in 2014 and 2015 in the United States. This indicates an upward
trend in economic growth for the United States. As living standards increase, the people will
have a higher purchasing power and are more likely to purchase our product. Another factor to
consider is the unemployment rate. In the past four years, jobs have become increasingly
available. The goal economists set for unemployment rate is less than 5-6%. In 2012, the total
unemployment rate was at the peak of 8.3%. Over the four years, it gradually decreased to 4.9%
in 2016, just barely meeting the goal for the first time since 2008. A low unemployment rate
means workers in the labor force can better financially support themselves and their family and

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have purchasing power for goods and products. Lastly, inflation is an important indicator for
price stability. The monthly Consumer Price Index for All Urban Consumers (CPI-U) percent
change of all items from January 2015 to January 2016 was in the 1.6% to 2.3% range, with
January 2016 being the highest. The core inflation rate, however, was between -0.2% to 1.4%
(Mataloni). The core inflation accounts for all goods and services the typical household
consumes except food and energy. Food and energy prices tend to frequently fluctuate in a
period of time. The core inflation rate is overall lower than the overall rate. Nevertheless, both
the overall and core inflation rate are exhibiting an upward trend. Percent changes for both
monthly and annual CPI-U have been meeting the desired goal of inflation rate which was less
than 2-3%. Since inflation rate indicate how fast prices are rising, a low inflation rate indicate
relatively stable prices and lack of economic issues. Judging from the economic indicators, the
U.S economy is in an upward trend and this bodes well for starting a new business such as ours.

iv. Demographic Environment:

The United States population is made up of 49.1% male and 50.9% female with the
largest age demographic being those between 35 and 44 making up 16% of the population. The
next largest age range for those living in the United States would be those between the ages of 25
and 34 making up 14.2% of the total population. With in the United States population there are
105,480,101 total households. Of these 57.1% of householders are married and of this 57% of
householders 23% are married with children under the age of 18. 12.2% of this population is
made up of single mothers and out of this 12,2% about 7.2% of these women are raising children
under 18 years old. As for race the majority, 75.1%, of the United States population are
considered while and the second largest race in the United States are considered Black or African
American, (United).

v. Social and Cultural Environment:

Today’s social and cultural environment has changed dractisticlt in the last twenty and
even ten years. Twenty years ago it was 1996 and it was a time that the computer was just
becoming an everyday household object. It was a time that children were more likely to be found
outside playing instead of where they can be found now in front of the television with a
smartphone in their hands. In 1996 most parent worked and so with the commonality of the

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computer and the VCR it became easier for parents to place their child in front of a television or
computer and let them entertain themselves and this is where today’s technology crazed stated,
with the young children of the 1990’s. As these children grew older their need and dependence
on technology only increased and as they became parents they give their children a smartphone
to play with of a movie to watch. It has become such a problem that many organizations have
tried to brake the technology dependent cycle; such initiatives include the Let’s Move movement
headed by first lady Michelle Obama as well as other movements for parents to spend more time
with their children and leading by example. Now all of this does not mean that children as young
as two years old do not know how to work a smartphone because they still do. Right now we are
living in a transitional period where we as a species are still trying to find a balance between
activity and relaxation.

vi. Political and Legal Environment:

People ages 15 and older can purchase from Direct to You Crafts, this age limit is set in
place for the concern of content for ages below 15 and lack of income. However, people younger
than 15 can be gifted a subscription as well as, provided one in parents name. All legal rights are
reserved to Birchbox. Materials purchased to produce product will promote those companies
involved and give percentile of sales or purchase materials outright. Legal rights to ideas will be
purchased or compensated to other companies involved.

vii. Technological Environment:

Technology advances in the past decade has been extraordinary and has changed the way
customers shop. Our company and product are almost entirely dependent on these technologies.
Omnipresent internet access will allow customers to shop from all around the world, 24 hours a
day, and 7 days a week. Since our company will not have a physical retail store, placement,
promotion of our product, and communication with the customers on the internet are crucial. In
addition, our newest products will be sourced from Pinterest, a social media platform. Birchbox
also have a mobile app to further connect with customers to company activities and new
products. This feature further adds to the convenience factor for the consumers.

c. SWOT Analysis:

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 Strengths:
● New established company with existing customer base
● Product of convenience
● Appeals to a wide range of target markets Birchbox both reaches and has
yet to reach
● DIY products are popular in society
● Detailed instructions and video tutorials
● Box comes with all materials needed
Weaknesses:
● Subscriptions purchasing which accompanies a customer commitment
● Costs of materials
● Different product then Birchbox currently offers
Opportunities:
● To expand to other countries where Birchbox operates out of (United
Kingdom, France, Spain, Canada, and Belgium)
● Partnerships with craft stores and social media
● Endorsement of product
● Offer new innovative and popular crafting products
Threats:
● Competition
● Change in social trends

d. Other Critical Issues:

Other critical issues involved in DYC is the partnership with craft stores in order
to get supplies to make the crafts. Most craft stores provides their own in store classes on
various crafts so craft companies may have a hard time partnering with Birchbox because
it may take away from their services. In addition, the craft ideas for DYC are endless and
often being supplied from social media sites like Pinterest. With that being said there is
an issue of content and idea rights needed from sites that these popular do it yourself craft
ideas originate from.

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IV. Marketing Strategies:
a. Target Markets: (STP analysis)
The target market for Direct to You Crafts are females that live in the U.S. This target
market can be segmented into different generations. Based off of our survey the main segment is
Millennials because they grew up in a technological age where social media, like pinterest and
etsy started which makes them want to be involved in crafts. Millennials are also aware of the
company Birchbox and are possibly already a customer. The survey also indicated that
Millennial males who purchase the product as a gift for family or friends. Another segment is
Generation X because they are involved parents therefore, this product would be a great way for
them to spend time with their kids and grand kids lives. Generation Z is also target market
because children love crafts and this product is a good way to engage children in play without
using electronics. Baby Boomers are a possible target market because although we did not
survey them to find out if they would purchase this product, they are active retirees who like to
be independent making product perfect to keep them busy and creative. Direct to You Craft's
position is that it accommodates to a variety of people, from children to those retired. Each craft
box is all inclusive with instructions and supplies for a specific craft of your choice and skill
level that is delivered right to your door. It is a one stop shop for for those who enjoy being
crafty.

b. Product Strategies:
Direct to you crafts has several product lines for its crafts. Under each segment there are
different craft options available to fit what each generation wants and likes. A few product lines
Millennials can choose from are home decor, DIY, and dorm crafts. The product lines for
Generation X are mommy and me crafts, DIY projects and more.Under the target market
Generation X we could also offer options for Generation Z (their kids) including educational
crafts, and simple arts and crafts such as painting and other projects. A few product lines
Millennials can choose from are home decor, DIY, and dorm crafts. To test the potential target
market of Baby Boomers a few product lines such as knitting, sewing, and painting will be
available.
The packaging will resemble Birchboxes elegant yet fun style. Birchbox already sends
out their products in sturdy cardboard boxes that has their logo on it. The same boxes can be

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used for Direct to You crafts just with different logos on them.The products inside of the box are
wrapped in colored tissue paper to give the package a fun artsy aspect while also keeping the
products safe.

c. Pricing Strategies:
Based on a survey conducted by college students (male & female) we found that our
pricing strategy would stay true to Birchbox by offering monthly subscriptions for $12.99 a
month. This pricing is a bit higher than Birchbox’s typical pricing this is based on the fact of
higher cost of materials. With this pricing we can attract those customers who are not willing to
spend too much money for a craft but want a quality product. If customers sign up for monthly
subscriptions then shipping is free however, those who purchase this product for one time only
will have to pay shipping and handling. Once our product is more established our pricing
strategy will be penetration because after our initial entrance in the market we can offer more
higher priced crafts for purchase.

d. Promotion Strategies:
Direct to Your Crafts will be promoted through Birchbox`s already established
Facebook, Instagram, and Pinterest accounts. Through these social media sites paid ads will be
presented to show potential customers what comes in the Direct to You Crafts box. This will
attract our millennial target market who reported that they use Facebook, Instagram and Pinterest
the most as far as social media sites go. With that being said Birchbox can expand its social
media reach to attract more customers by use of hashtags and staying connected with customers.
Direct to You Crafts will also offer tutorials on these social media sites and their websites to help
customers complete the crafts delivered to them as well as market the products featured in the
box. The goal by doing this is to inform potential customers on this new product and create a
desire for customers to buy. “We Deliver You Create!”

e. Distribution Strategies:
Direct to You Crafts will distribute to all of the United States with hope of expanding to
other countries that Birchbox already has operations in. With the main headquarters for Birchbox
in New York another main headquarters will open in California to provide more distributions

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sites for the growing company. By opening another headquarter in California, Birchbox and
Direct to You Crafts is able cut down the cost of shipping and reach more customers in a timely
fashion. Select distribution will also be used by selling the product in a few craft stores and the
Birchbox store in NY. This allows the product to reach more people without taking away from
the company’s main focus of online shopping.

V. Implementation and Evaluation:

a. Timing and Monitoring of Marketing Plan:
Within the first year on launching this line of product, customer satisfaction and sales
must be closely monitored to determine the success and profitability of the product. Customer
satisfaction surveys will be emailed to consumers after each purchase to improve marketing
strategies or product development. Sales data can also be analyzed daily the first month of
launching to evaluate performance and make appropriate adjustments. Relative market share
compared with marketing growth rate can divide product categories into stars, question marks,
cash cows and dogs. Since social media is a fast- paced environment, the Birchbox website and
Pinterest must be monitored 24/7 for any changes or new trends and products.

b. Methods for Assessing the above Marketing Plan:

To ensure the effectiveness of the marketing plan, customer satisfaction and sales will
continually be assessed. Trial purchases can also be conducted to see our products through the
eyes of the consumers and correct any trouble the customer would experience during the
purchase process. Changes must be made to the dogs and question marks in product categories if
they remain unchanged. These decisions could include abandoning the dogs categories entirely
and investing additional funding towards the question marks in promotions and product
development in hopes that it will turn into a star or cash cow.

VI. Overall Summary and Recommendations:

Through constructing this marketing plan, we learned that the current situation of
Birchbox completely supports our new line of products and developed specific marketing
strategies to market these products to the target market. For example, the target market was

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distinguished through the distribution of a survey asking potential consumers’ interest for the
product, specific categories, their age, gender and whether they would be interested to buy this
product as a gift for someone else. All of the people surveyed were millennials. The survey
indicated 7 out of 9 females would purchase our product. This data includes females who dislike
monthly subscriptions which could be due to income or taste and preferences. DIY, college dorm
and home decor received the most votes in the surveys for crafting project categories. Only 3 out
of 16 males voted in favor of purchasing this product, however, 10 males indicated they would
be interested of buying the product as a gift for a family member. Half of the females surveyed
would not buy the product as a gift. Possible targets of gifting this product were children,
siblings, parents and friends. Based on this information, we concluded our target market to be
millennials females for monthly subscription and millennial males for gifting the product to
someone else.

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 The Four Inventors Survey

Our product is a craft box that contains a craft idea with step by step instructions and the

supplies needed for the project. Our product will be provided by the already established

Birchbox company. Ideas for different crafts will come from popular crafts on social media sites

such as Pinterest. Birchbox sends out different boxes based on interests of subscribers for a

monthly fee, the box features companies products for the customer to try. Birchbox presents

direct to you crafts!

Directions: For each question circle what applies to you, some questions may ask for a
written response please be clear and write neatly. Thank You!

1. Gender: Male Female Other

Generation: Mature & Silents Baby Boomers Gen X Gen Y Gen Z

(1926-1945) (1946-1964) (1965-1976) (1977-2000) (2001- now)

2. Do you engage in these social media outlets? Circle all that apply
Pinterest Instagram Facebook Etsy Twitter

3. Are you currently a Birchbox subscriber? Yes No

4. Do you like subscriptions? Yes No

5. Do you prefer a weekly or monthly subscription? Weakly Monthly

6. How much would you pay for a subscription? Select the highest $ amount you would pay

Less than $5 $5- $10 $10-15 $15-20 More than $20

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7. Are you interested in crafts? Yes No

8. How good are you at making crafts?

Poor Intermediate Excellent
(need help & instructions) (need instructions sometimes) (can make crafts w/o instructions)

9. Would you purchase this product? Yes No (if you answer no tell
us why)
(Skip #10)

10. What categories would you select to subscribe to for crafting projects? (Circle all that
apply)

DIY

Fabrics Crafts

College Dorm

Accessories

Painting

Jewelry

Lifestyle

Home Decor

Mommy & Me

Kids Corner

11. Would you purchase this product as a gift for someone else?
Yes (if yes, then who specifically) No

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 Survey Results Male

1. Gender: Male 16 Female Other

Generation: Mature & Silents Baby Boomers Gen X Gen Y Gen Z

(1926-1945) (1946-1964) (1965-1976) (1977-2000) (2001- now)

2. Do you engage in these social media outlets? Circle all that apply
Pinterest Instagram 13 Facebook 10 Etsy Twitter 9

3. Are you currently a Birchbox subscriber? Yes No 16

4. Do you like subscriptions? Yes 2 No 14

5. Do you prefer a weekly or monthly subscription? Yes No

6. How much would you pay for a subscription? Select the highest $ amount you would pay

Less than $5 7 $5- $10 5 $10-15 4 $15-20 More than $20

7. Are you interested in crafts? Yes 3 Maybe 1 No 12

8. How good are you at making crafts?

Poor 10 Intermediate 6 Excellent
(need help & instructions) (need instructions sometimes) (can make crafts w/o instructions)

9. Would you purchase this product? Yes 3 No 13 (if you answer no tell us why)
(Skip #10)

10. What categories would you select to subscribe to for crafting projects? (Circle all that
apply)
DIY

College Dorm

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11. Would you purchase this product as a gift for someone else?
Yes (if yes, then who specifically) 10 No 6
Siblings
Friends
Unknown
Parents
Survey Results Female

1. Gender: Male Female 9 Other

Generation: Mature & Silents Baby Boomers Gen X Gen Y Gen Z

(1926-1945) (1946-1964) (1965-1976) (1977-2000) (2001- now)

2. Do you engage in these social media outlets? Circle all that apply
Pinterest 7 Instagram 8 Facebook 9 Etsy 4 Twitter 6

3. Are you currently a Birchbox subscriber? Yes No 9

4. Do you like subscriptions? Yes 3 No 9

5. Do you prefer a weekly or monthly subscription? Yes No

6. How much would you pay for a subscription? Select the highest $ amount you would pay

Less than $5 3 $5- $10 4 $10-15 1 $15-20 1 More than $20

7. Are you interested in crafts? Yes 8 No

8. How good are you at making crafts?

Poor 1 Intermediate 6 Excellent 2
(need help & instructions) (need instructions sometimes) (can make crafts w/o instructions)

9. Would you purchase this product? Yes 7 No (if you answer no tell us why)
(Skip #10)
10. What categories would you select to subscribe to for crafting projects? (Circle all that
apply)

DIY 5 Home Decor 5 College Dorm 4 Painting 4 Lifestyle 4

Accessories 2 Fabrics Crafts 1 Mommy & Me 1 Jewelry 1 Kids Corner 1

11. Would you purchase this product as a gift for someone else?
Yes (if yes, then who specifically) 4 No 5
Siblings
Friends

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Family

BIBLIOGRAPHY

"Birchbox: The Smartest Way to Shop for Beauty and Grooming Products." Birchbox United
States. BirchBox, 2010. Web. 12 Apr. 2016.

"Craft & DIY Subscription Boxes - 2 Little Rosebuds." 2 Little Rosebuds. N.p., n.d. Web. 31
Mar. 2016.

"Craft." Subscription Boxes For. N.p., n.d. Web. 31 Mar. 2016

Dahl, Melissa. "Birchbox Has Succeeded Because Lots of People Really Hate Making
Choices."Science of Us. New York Media LLC, 11 Nov. 2015. Web. 28 Mar. 2016.

"Engaging, All Inclusive Crafts for Seniors." Senior Craft Box. N.p., n.d. Web. 31 Mar. 2016.

Griffith, Erin. "Exclusive: Birchbox Banks $60 Million." Fortune. 21 Apr. 2014. Web. 11 Apr.
2016.

Mataloni, Lisa. "News Release: Gross Domestic Product." News Release: Gross Domestic
Product. Bureau of Economic Analysis, 25 Mar. 2016. Web. 04 Apr. 2016.

"Subscription Commerce Market: Size and Breakdown." Cratejoy. N.p., 09 Jan. 2013. Web. 31
Mar. 2016.

United States, Census Bureau. “United States Demographic Statistics.”Infoplease. N.p., n.d.
Web.

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