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Totally 12

No Weeds! Month After Month!

Marketing Communications Plan


Maile Mosley / MRKT 623 / Southeastern Louisiana University

Contents
Executive Summary.3 Internal Analysis.5 External Analysis.9 Segmentation.16 Promotion Objectives & Budget.18 Integrated Marketing Communications Program.19 Measurement of Effectiveness.26 Appendix.28 Works Cited.29

Executive Summary

Ragan & Massey, Inc., founded by Mike Massey and Tom Ragan, has been a successful business in the Southeastern Louisiana region since 1991. The company currently sells over 4,000 products for a variety of needs including farming, hunting, and lawn maintenance. Ragan & Massey, Inc. also sells to independently owned retailers, sporting goods stores, mass merchants, forage seed users, and professional farmers. The company is located in Ponchatoula, Louisiana and the facilities are open for visitations and tours. The founders own 100% of the company and take pride in offering a wide variety of high quality products.

This marketing communications plan outlines the process for launching the companys new product: Totally 12. Totally 12 is guaranteed to kill weeds for up to one year, and

is part of the Compare N Save family of products. With the launch of Totally 12, Ragan & Massey, Inc. hopes to increase their market share and expand their customer base through increased top-of-mind awareness and word-of-mouth advertising. Another goal for the company is to ultimately sell the product in major retail outlets such as Lowes and Home Depot. The vision for Totally 12 is to change customers perception of herbicides. Although there are many herbicides on the market, Ragan & Massey, Inc. is aiming to differentiate Totally 12 from the competition. Ragan & Massey, Inc. also hopes to communicate the worth of Totally 12 with the No Weeds! Month After Month! slogan, orange hue, and highly concentrated formula that customers may mix themselves. While most products that Ragan & Massey, Inc. offer are designed for large areas and are used mostly by farmers, Totally 12 should also appeal to the average homeowner. Another point of difference for the new product is the orange hue. The bright color will add a benefit to the customer in that they will see where the product is sprayed and be able to remove it if needed.

Internal Analysis
With the launch of Totally 12, Ragan & Massey, Inc. will be entering a noisy market segment consisting of a multitude of herbicide products that offer similar guarantees. Unfortunately, many promises made by new products fall short, leaving customers skeptical. As published in the Harvard Business Review, the rise of social media will only increase user reviews and negative feedback, so now more than ever it is vital that a product is ready before it hits the market (Schneider & Hall, 2011). During the introduction phase of Totally 12, the product will be vulnerable to competitors. Due to the success Ragan & Massey, Inc. has accomplished over the years, there are many smaller retailers and local stores that have shaped a relationship with the company resulting in credibility. Using this trustworthiness and their current stable market position, Ragan & Massey, Inc. will begin selling Totally 12 in the smaller retailers in its local Southeastern

Louisiana market and eventually expand to the larger retailers. Encouraging customers to try the new product over the competitors product is anticipated to be the biggest and most time consuming obstacle in launching Totally 12. Moreover, a price point of $59.99 will ensure high revenue for Ragan & Massey, Inc. and demonstrate the value of Totally 12 over the competition. A study published in the Journal of Retailing found that prices ending in .99, as compared to .00, are 8% more likely to attract a buyer (Schindler & Kibarian, 1996). Since most advertising for Totally 12 will be direct marketing in-store, the bright orange hue of the product should aid in drawing attention to the product and encourage the customer to take a closer look. Color is a powerful method of increasing brand recognition and the color orange is considered an aggressive color that creates a call to action: buy (Kenney, n.d.). Therefore, it is crucial that the Totally 12 product be packaged in a container that highlights the orange colored liquid.

Financing the launch of the new product is not the dominant concern of introducing Totally 12 to the market. Since the product is part of the Compare N Save trademark, the other products in this line will assist in the financial support of Totally 12 while it is in the

introductory phase of its life cycle. Totally 12 is anticipated to have a long and dilatory product life cycle. However, as customers try the new merchandise and develop a preference for it, the product will reach the growth stage. Once in the growth stage, Totally 12 should be able to support itself financially. Another reason for the long growth stage is the hefty gap between buying the product and re-purchase. Totally 12 guarantees to kill weeds for up to one year, which means one container could last a homeowner with an average sized between two to three years. One gallon of Totally 12 can cover up to eight miles of fencing, which is a much larger surface area than a homeowner typically needs. While long-lasting will be a strength for Totally 12 in terms of meeting the customers needs, it could also be a weakness in relation to sales revenue and repurchases. Typically, the products carried by Ragan and Massey, Inc. are bought in bulk from the retailers to accommodate farmers and other customers with larger plots of land. However, Totally 12 is aiming to cater not only to those with a multitude of acreage, but to the average homeowner as well.

Homeowners continue to struggle with unwanted plants and finding the right product may be challenging, which could cause them to become skeptical. Ragan & Massey, Inc. has formulated Totally 12 to meet and exceed the expectations of even the biggest cynics. Since Ragan & Massey, Inc. is a major marketer, launching a new product is not a novel phenomenon to them. Totally 12 will also have the support of the knowledgeable Ragan & Massey, Inc. staff that prides themselves in high quality merchandise. Having launched over 4,000 products, Ragan & Massey, Inc. has the expertise, knowledge, and tools needed to accommodate a successful launch.

External Analysis
Specification of Target Market/Positioning
The major target market for Totally 12 is the average homeowner. According to the 2010 census, 65.1% of Americans are classified as homeowners, which is just under 76 million households (Profile of, 2010). Another target market is local lawn care services. Less than half (48%) of homeowners executed their own lawn care last year (Could the, 2012). This low number could mean that many homeowners are utilizing lawn services in their area. By targeting these lawn care businesses that use much more herbicides than a single household, we are hoping to secure more frequent repeat customers.

Consumer Behavior Analysis


According to the National Gardening Association, homeowners are spending less of their annual household income each year on lawn care and maintenance (see Figure 1 below).

Average Dollar Amount Spent on Lawn and Garden Activities


2009 2010 2011

$466 $457 $449

Figure 1. Average dollar amount spent on lawn and garden activities (Hard Times, 2012). This figure illustrates the drop in average dollar amount spent on lawn and garden activities from 2009 to 2011.

Since fewer dollars are being spent in the market that Totally 12 will be competing in, it is imperative to distinguish the new product from the competition. By putting the

merchandise in home improvement stores and local garden centers, Ragan & Massey, Inc.

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will reach more than 50% of the household income spent at lawn and garden retailers (See Figure 2 below).

Percentage of Household Income Spent at Each Type of Lawn and Garden Retailer
Home Improvement Centers Local Garden Centers and Nurseries Mass Merchants Local Hardware Stores

17% 36% 21%

26%

Figure 2. Percentage of household income spent at each type of lawn and garden retailer (New 2012, 2012). This figure illustrates the percentage spent at home improvement centers, mass merchants, local garden centers and nurseries, and local hardware stores.

Decision Process
The new products main purpose is to remove any unwanted greenery on a homeowners property. Since the want for this type of item is currently fulfilled by other glyphosate

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based products, it is imperative that Ragan & Massey, Inc. shows that the new product is superior to the current competition.

Herbicides are generally medium to low involvement purchases. Not much time or effort is devoted to deciding which herbicide to buy. Once a need for a medium to low involvement purchase arises, the customer will generally go to a local store and buy whatever product is readily available, with little to no research beforehand.

Scotts Roundup Extended Control is the biggest competition for Totally 12. Roundup has been established in the lawn care market as the go-to product to resolve the need for herbicide. Roundup kills weeds and prevents new growth for four months and covers 1,500 ft2 per quart (Kill Weeds, 2002 2012). The retail price for Roundup Extended Control at Tractor Supply Company is $29.99 for one quart of concentrate formula (Roundup, 2012). While Monsanto, the worlds largest seed producing company is not a direct competitor because their market is commercial farmers, they do offer some insight into the market for Totally 12. With Monsantos brand of Roundup selling 250 million
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gallons in 2010, up from 180 million the year before, demand looks strong. However, the price has dropped from $20/gallon to $10-$12/gallon, which is a reduction of almost half the products price (Kaskey & Mapother, 2009). Monsanto blames Chinese competitors for flooding the market with generic glyphosate. Hugh Grant, CEO of Monsanto, claims that in 2010 the market supply was double that of the demand (Monsanto Cuts Profit, 2010).

Totally 12 will easily compete with the current market since it is a superior product offered at a competitive price. Also, since Totally 12 is guaranteed to kill weeds for one year and cover an eight mile span, none of the competition comes close to matching the products area exposure for the price. The closest competitor only covers 1/6 of the area that Totally 12 will cover.

Totally 12 customers will be content with their decision post purchase because, unlike the other products, customers will likely still have product left over to be used again due to its

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concentrated form. Likewise, since the product typically will be used yearly instead of triannually, it will save the customer labor and money.

It is likely that the customer may not have heard of Totally 12 before seeing it on the shelf in the store. Therefore, the customer will have no perception of the product except for the immediate assumption that, because the name is not recognizable, Totally 12 must be a sub-par off-brand product. Because of this, it is the job of the products point-ofpurchase advertising to convince the customer to choose Totally 12 over the brand that ultimately took them into the store. Ragan & Massey, Inc. will clearly and simply state the fact that their product is superior to the competition for the price and that in and of itself will likely secure enough sales to make Totally 12 a worthwhile product to introduce to the market.

Social influences will play a significant role in the Totally 12 customers product choice. The commercials that competitors run will influence the customer to purchase their

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herbicide. Therefore it is crucial that the Totally 12 product label convince the customers at the point-of-purchase that the new product is superior.

Family influences will have a strong impact on customer decision. Whichever product trusted family members use will be highly regarded in a medium to low involvement purchase. If a family member has used a product before to successful ends, it is likely that the customer will want to use the same product to achieve the same means.

The choice of herbicide that a homeowners neighbor uses can also influence their decision because the customer sees the result of the product right next door. Depending on the condition of the lawn, the customer might ask for a recommendation for a lawn care product.

Source influences work against Totally 12 since there are few experts in lawn care that customers can go to for information. The foremost source influences are recognizable

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names in the market such as Scotts, which is in the business of promoting their brand over Ragan & Massey, Inc.s brand. A products message is another difficult concept to convey to the customer. Since Ragan & Massey, Inc. is focusing on point-of-purchase advertising, the message has to explain itself successfully on the label and attract the customer to the product over the competitors product, which may have initially brought them into the store. Sending a clear message in this short amount of time is difficult because the window of opportunity to reach the bargain hunting customer while they are in the store is so small.

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Segmentation

The target market is defined previously in the External Analysis section. The market segmentation for Totally 12 will be similar to Ragan & Massey, Inc.s current herbicide product segmentation. Above all, the advertising for Totally 12 will focus on

psychographics. Homeowners will be the major target segmentation; therefore, the Totally 12 direct marketing campaign will be primarily aimed at them. A less significant psychographic market for Totally 12 will be the lawn care small businesses in the area. According to the National Association of Realtors, the highest percentages of homeowners are over the age of 35 (Yun, 2012). Demographically, Totally 12 will be aimed chiefly at homeowners over the age of 35; male or female. However, the American Floral Endowments 2003 Consumer Tracking Study revealed that women made 73% of floral purchases and 78.3% of the garden purchases (Pohmer, n.d.). Behaviorally, the new

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product will be targeted to current loyal Ragan & Massey, Inc. customers through their customer email follow program.

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Promotion Objectives & Budget


Communication Objectives
1. To launch a successful new line of herbicide with an emphasis on the one spray = one year benefit as stressed through the Totally 12: No Weeds! Month After Month! campaign 2. To increase top-of-mind awareness of the new brand with current and potential customers 3. To change customers perceptions of the brand as compared to the competition

Budget
Given that Totally 12 is a new product for Ragan & Massey, Inc., the advertising budget for this product will be increased over status quo. However, to minimize budget expenses, most of the marketing will be centered on point-of-purchase direct market advertising.

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Integrated Marketing Communications Program

Advertising
Advertising is generally non-personal, yet can reach a mass market all at the same time. Since the budget for launching Totally 12 is fairly small, there will not be television or radio advertisements. However, prior to the new product introduction, an advertisement will run in the Ponchatoula Times and in the Hammond Daily Star local newspapers to increase awareness. The advertisements will run in the Sunday, Wednesday, and Friday editions of the Hammond Daily Star as these days are the most lucrative days for print ads (Farhi, 2012). This announcement will include a 10% off limited time only coupon (see Appendix for sample Newspaper Coupon).

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Sales Promotion
Sales promotions are targeted to the customer and typically include coupons, rebates, and point-of-purchase materials. Susan Gunelius of Entrepreneur Media stated that the recent economic downturn caused customers to seek out deals and use coupons to get the biggest bang for their buck; marketing campaigns should be created with this in mind (Gunelius, 2010). The Totally 12 customer-oriented sales promotion will target customers through coupons. To facilitate this, a loyalty program will be established by Ragan & Massey, Inc. Customers who currently receive the companys emails will be offered a limited time only 10% discount on the new Totally 12 product (see Appendix for example of Customer Loyalty Email Coupon). This rebate will get the product into the hands of current Ragan & Massey, Inc. customers and, in turn, will aid in word-of-mouth advertising for the new product. This bargain, as well as the newspaper and Facebook coupons, will prompt customers to make an immediate purchase; boosting short-term sales which are crucial for a new product at launch.

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Personal Selling
Personal selling is significant because it offers immediate and precise feedback on the merchandise. This feedback is much needed when dbuting a new product. With the information gathered from the interaction, the seller can often alter the message they are trying to convey. Experiential events tend to be more personal and are typically of relatively low cost. For this reason, Ragan & Massey, Inc. will establish a presence at the various trade shows and exhibitions in Louisiana (see Table 1 below for a current schedule of upcoming 2013 Home and Garden Show events).

LOCATION

DATES

New Orleans Home & Garden Show March 22 24 2013 Contact # 504.835.6383 NWLA Spring Home Garden & Landscaping Show March 22 24 2013 Contact # 800.551.8682
Table 1. The current schedule of upcoming 2013 Home & Garden Show events (NW Louisiana, 2009 2012). This table illustrates the location, dates, and contact numbers of the two currently scheduled home and garden shows in Louisiana for 2013.

Ragan & Massey, Inc. will partake in experiential marketing while exhibiting in these trade shows; giving demonstrations of Totally 12 as well as allowing prospective

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customers to test the product. A 2009 survey discovered that most marketers believe experiential marketing builds customer relationships for the long termgenerates sales and leads in the short term, [and] increases awareness of the product ( Experiential Marketing, n.d.). One of the key selling points of Totally 12 is the orange hue. This coloring allows the customer to see where they have sprayed the product as to not waste it. Since the shade is orange, customers may be hesitant to purchase. However, a quick hands-on demo can show that the orange pigment will indeed wash away easily.

Direct Marketing
Knowing that direct marketing plays an integral role in buyer persuasion, the promotion of Totally 12 will rely heavily on direct marketing for a successful launch. One major aspect of this marketing includes customer-facing materials. Customers who follow Ragan & Massey, Inc. by way of their website and who presently receive email updates will obtain a special limited time only 10% discount on the new Totally 12 product (see Appendix for example of Customer Loyalty Email Coupon). This discount will only be good for the week of the new product introduction to establish a sense of urgency surrounding the merchandise launch. Most home and garden customers make their buying decisions at

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point-of-purchase. As such, a heavy point-of-purchase direct marketing campaign will be produced. This campaign will be launched in the locations that currently sell Ragan & Massey, Inc. products, such as Tractor Supply Company. This marketing promotion will include the tag line No Weeds! Month After Month! to stress the one year time frame in which the product kills weeds with one use. It is imperative that the slogan stand alone as an integral piece of marketing for Totally 12. According to Kimberley Freeman, a products tag line is important because if your company name, logo and tagline are all working together as they should, they become an ad in and of themselves (Freeman, n.d.). Two pieces of marketing will be present on the shelf in front of the Totally 12 item that will help it stand out from the competitors products. The shelf talkers and the label on the product itself will stress the No Weeds! Month After Month message (see Appendix for example of Shelf Talkers). The brand design on the product will be a major source of marketing to the customer. The package includes the slogan as well as a picture of a calendar behind a prohibition sign containing dandelions. Not only will the picture stress the No Weeds! Month After Month! message, this image will also distinguish the Totally 12 product from Ragan & Massey Inc.s other grass and weed killer s: Concentrate Grass & Weed Killer, Broadleaf Weed Control, and Systemic Tree & Shrub Drench.

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However, Totally 12 will still be recognizable as part of the Compare N Save product line; containing the signature yellow and green label and red Compare N Save logo. A cohesive color scheme is imperative as color is found to increase brand recognition by 80%, directly linking to consumer confidence (Kenney, n.d.).

Interactive Media
The new interactive media allows for more than the usual one-way flow of information. The Totally 12 campaign will take advantage of these new means of advertising. The product will be featured on the Ragan & Massey, Inc. website

(www.raganandmassey.com) by following the Compare N Save link. Ragan & Massey, Inc. will also update their blog with the new information surrounding the innovative product. Ragan & Massey, Inc. will likewise bring their Facebook page up to date with the information regarding the new product. A limited time only 10% off coupon will furthermore be available via the companys Facebook page (see Appendix for example of Facebook Friends Coupon). The existing Facebook page has no likes or followers and, with the current new media and social networking climate, Facebooks

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influence should not be ignored. The new Totally 12 product will give the company the perfect platform for a Facebook page makeover.

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Measurement of Effectiveness

Fortunately, Totally 12 will stand out on the shelf due to its packaging design and bright orange hue. Most first time buyers will likely purchase the product as an impulse and based on which product appears the most desirable at that moment. Nonetheless, tracing the sales of Totally 12 that are directly related to advertising will be difficult to track.

Ragan & Massey, Inc. will monitor the marketing success rate of Totally 12 two ways. First, they will observe the quantity of Totally 12 purchased using the sales promotion coupons that will be available prior to the launch of the product. The coupons will be obtainable through Ragan & Massey, Inc.s Facebook page , local newspapers, and via email. When the coupon is redeemed at the register, Ragan & Massey, Inc. will be notified allowing them to keep track of the sales generated using the sales promotion

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coupons established for the specific outlets. Another way the company will monitor success is by using their strong relationship with their customers, local farmers, and retailers, to reach out and question them personally about their feelings toward Totally 12. From this individual feedback, Ragan & Massey, Inc. will have an idea of how Totally 12 has met the expectations of the customers and how to further improve the product to ensure re-purchase and continual positive word-of-mouth advertising.

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Appendix

Newspaper, Facebook Friends, & Customer Loyalty Email Coupon

Shelf Talker #1

Shelf Talker #2

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Works Cited
Could the Lawn and Garden Business be Doing Better? National Gardening Association. National Gardening Association. Web. 2012. 23 July 2012. Experiential marketing. Marketing Made Simple. n.p. Web. n.d. 17 July 2012. Farhi, Paul. (2012). New Orleans times-picayune to limit printing to three days per week. Retrieved from http://www.washingtonpost.com/lifestyle/style/new-orleans-timespicayune-to-limit-printing-to-three-days-perweek/2012/05/24/gJQA8kSEoU_story.html Freeman, Kimberley. (n.d.). Your tagline: the most important ad youll ever create. Retrieved from http://advertising.about.com/od/copywriting/a/guesttagline.htm Gunelius, Susan. (2010). 10 marketing trends for 2010. Retrieved from http://www.entrepreneur.com/article/204804 Hard Times L&G Survey. National Gardening Association. National Gardening Association. Web. 2012. 18 July 2012.

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Kaskey, Jack, & Mapother, Joseph. (2009). Monsantos 2010 profit to drop on roundup implosion (update3). Retrieved from http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aa.6rw4bp9QU Kenney, Wendy. (n.d.). How do colors affect purchases? Retrieved from http://socialmojo.com/2011/01/infographic-how-colors-affect-buying-in-marketing/ Kill Weeds & Grass. Scotts. n.p. Web. 2002 2012. 23 July 2012. Monsanto Cuts Profit Forecast on Herbicide Oversupply. AgroNews. Stanley Alliance Info-Tech Limited. Web. 2006 2011. 23 July 2012. New 2012 National Gardening Survey. National Gardening Association. National Gardening Association. Web. 2012. 18 July 2012. NW Louisiana Spring Home Garden & Landscaping Show. Shreveport Bossier Fun Guide. Shreveport Regional Arts Council. Web. 2009 2012. 18 July 2012. Pohmer, Stan. (n.d.). Who has the power? Retrieved from http://www.lgrmag.com/whohas-power

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Profile of General Population and Housing Characteristics: 2010 Demographic Profile Data. American Fact Finder. n.p. Web. 2010. 23 July 2012. Roundup. Tractor Supply Company. n.p. Web. 2012. 23 July 2012. Schindler, Robert M., & Kibarian, Thomas M. (1996). Increased consumer sales response though [sic] use of 99-ending prices. Journal of Retailing, 72 (2). Retrieved from ftp://ftp.cba.uri.edu/classes/dellabitta/PRICE%20SEMINAR%20%20BUS%20610/ARTICLES%20V1/INCREASED%20CONSUMER%20SALES %20RESPONSE%20THRUGH%20USE%20OF%2099-ENDING%20PRICES.pdf Schneider, Joan, & Hall, Julie (2011). Why most product launches fail. Retrieved from http://hbr.org/2011/04/why-most-product-launches-fail/ar/2 Yun, Lawrence. (2012). Homeowners by age. Retrieved from http://economistsoutlook.blogs.realtor.org/2012/01/13/homeowners-by-age/

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