1 Salubritas Marketing Plan Darya Wei (2017005) Deeksha Jalota (2026795) Golnar Arbabi (1918416) Pooja Kanakia (2025612) Rukmani Subramani (2021972) MRKT 621: MARKETING MANAGEMENT Dr. Vahideh Baradaran November 19, 2021 2 Situational Analysis Starting at 5172.7 million USD total revenues, the "Ayurvedic Products Market" 2021 will grow at a 12.0 percent CAGR in 2022. The increased consumption for Ayurvedic Product lines for different purposes including adults, and Children, would boost the Ayurvedic Business globally within the upcoming five years and thus, the worldwide Market Capacity can touch 10180 million USD by 2026 (Ayurvedic Products Market Size In 2021: 12.0% CAGR with Top Countries Data, Comprehensive Analysis, Development Strategy, Future Plans and Industry Growth Analysis with Market Value to 2026, 2021). Salubritas's SWOT analysis focuses on its strengths, weaknesses, opportunities, and threats. Internal elements are strengths and weaknesses, whereas external elements are opportunities and threats. Strengths of Salubritas 1. Produces Organic and natural supplements of KSM 66 Ashwagandha capsules which are strictly vegetarian or vegan. 2. The manufacturing factory is in Vancouver – Richmond. 3. The regulated product KSM 66 involves government agencies like the FDA (Food and Drug Administration) and regulatory officials like Health Canada 4. Massive focus on sustainability and progressive thinking with renewable stocks without negatively impacting the globe. 3 5. Salubritas procures handpicked plant resources that have reviewed clinical data of natural, plant-based remedies that work. 6. Salubritas sources raw materials from suppliers that are fully transparent and have the same ethics. 7. Tracy Sun, CEO of Salubritas, is a proactive woman Leader who works dedicatedly to boost collaboration and strengthen efficiency. 8. Promotion of KSM 66 to boost immunity in body post-Covid-19 health condition. Weaknesses of Salubritas 1. Inadequate digital marketing, advertisements, and promotion strategies hamper the Salubritas' business. 2. The consumers lack the product knowledge of KSM 66. 3. Doctors recommend allopathy drugs since pharmaceutical businesses pay them higher, and the percentage of ayurvedic companies is lower than that of allopathy. 4. When compared to allopathic therapy, KSM-66 requires more time to recover. 5. Salubritas has a limited marketing presence on social media. 6. Salubritas has no Press releases, which are an essential PR tool to generate product publicity. 7. Salubritas' Product dependency: currently, Salubritas has released only one product into the market. 8. Salubritas has no presence in retail or e-commerce retailing platforms like I-herb. 4 Opportunities of Salubritas 1. Post Covid-19, Salubritas has the advantage of raising awareness of utilizing herbal and natural goods, which has established a niche for itself. 2. Implement prospective digital marketing for current and upcoming products. 3. Improve sales through eCommerce platforms. 4. Increase brand awareness by increasing social media exposure among the target market audiences. 5. Explore various social media platforms like Twitter, YouTube, Pinterest and Snapchat. 6. Work on Website optimization. 7. Work on Keywords search, especially for Amazon. 8. Work with local retailers in Canada like Walmart, Costco, London Drug stores, Canadian Store, Safeway, Save on food to sell the products. 9. Salubritas should tie up with Health Nutrition centres, health clubs, and health and wellness bloggers. 10. Release Press articles regarding the product to bring product awareness to the public. 11. Provide influencer followers discount and promo codes. 12. Acquisition of Influencers and ambassadors for brand support will help Salubritas business. 13. Paid promos, targeted ads on multiple social media platforms can improve KSM-66 Sales. 14. Salubritas can tie up with online retail companies like I herb. 15. Collective testimonials from customers using the product. 5 16. New products introduction for the targeted market segment will help Salubritas widen their Product range. Threats of Salubritas 1. Increasing competition from major players and new entrants in the organic ayurvedic products market is a significant threat. 2. Competitors have a broad spectrum of Products. 3. Salubritas is primarily reliant on natural materials and goods; hence poor farming yields can impact its revenues. 4. At times importing raw materials can be a challenge to Salubritas. 5. Legal issues from health departments. 6. Overall, the management of vendors, channel partners and retailers is challenging. 7. The presence of Competitor' products in the retail market and e-commerce platforms makes the competition even more challenging. 8. Any unfavourable word-of-mouth generated on social media platforms might have an impact on its marketing strategy. 9. Price War - A pricing war is beneficial to consumers but harmful to businesses amid Competitors. Marketing Research a. Stage of the product life cycle: All products have a life cycle which is the length of time between being introduced to the market until it is discontinued. Product life cycle constitutes of four phases, introduction, 6 growth, maturity, and decline. This concept will be used in this section to determine when is appropriate to enhance advertising activities, reduce prices, alter packaging, or enter a new market. The analysis of the information provided by Salubritas on their current products and their performance, reveals that the current products on the market and the new emerging products are all in their introductory phase. This categorisation suggests that companies can benefit from substantial investment in their advertising during this product life phase. Hence. Panakeia recommends a marketing campaign that is mostly focused on increasing the brand awareness as well as consumer knowledge of the product and its health benefits through various marketing and advertising strategies. The introduction phase is all about the design of the product and its visual details including use of a colour palette that evokes the brand’s emotions along with a personalised font to encourage brand recognition and recall. Furthermore, this brand and product recall is critical in creating a buzz around Salubritas brand. Studies have shown that one of the top reasons behind over 80% of new consumer products failure is generating not enough drum up enthusiasm in the market and having insufficient marketing strategy support. Through the SWOT analysis in the latter section, it can be concluded that the Salubritas market share is small and there is very little space in the market available for entry. This has led to their lower sales in this stage, which is a natural part of products in their 7 introduction phase. Additionally, despite this phase being the most exciting time, it is also the most expensive one. Panakeia aims to reduce Salubritas costs by conducting a thorough and agile market research as well as accelerating the speed of innovation cycles to reach the product maturity phase faster which is further described below. It is crucial that the marketing plan is updated across the product life cycle. Moving forward from the introduction phase, if the product is successful, it moves to the growth phase, which is categorised by an increase in its demand and production. The third stage is the most profitable stage. During product maturity phase, the manufacturing and advertising costs are at their lowest, leading the increase in revenue. The final phase, decline, is when Salubritas should focus on rebranding the products. b. Segmentation: This section aims to describe how Panakeia designs the customer segmentation approaches for Salubritas by leverage the available data. The analytical approach adopted by the team addresses the high priority issues raised by the company founder and his objectives. Five segmentation approaches will be explored in this section. These 5 categories include demographics (age, income, gender, education and employment, psychographics (health concerns, personality, and lifestyle characteristics), attitudes (toward health and supplement consumption), behaviour (incidence of taking supplements, channels purchased from, consumption frequency) and lastly, brand interactions (previous usage, brand loyalty). 8 The first approach explores the age and gender specific segmentation. In the supplement product category, age and gender are both critical determinants of product formulation and marketing. Although this approach is simple and easy to understand, its weakness lies in its inability to distinguish between peoples motivation and needs in the same age or gender category. The disadvantage of this approach is that it treats everyone the same and looks for a message that may appeal to everyone in the same gender or age category. Panakeia has summarised some findings of the demographic approach segment: - Women ages 18-49 tend to worry more about their health - Women compared to men are more likely to keep up with latest health and wellness information - Men and women in the younger age category are more attracted to gender-tailored supplements while those in the older category preferred a more age tailored supplement The analytic approach adopted by Panakeia determined the below segmentation approach the can be most actionable for the needs of Salubritas marketing activities. These potential target segments are described in the table below. Segment Target Market Description Health Committed Exercisers The marketing activities must align with and complement their active lifestyle. Message should address their longterm health and aid in stress reduction. 9 Physical recommendation through endorsement would also be beneficial Young simplifiers Younger millennials with less health concerns, looking for a brand to make it easier to maintain their health Nutritional Insurers This segment highly values private label and seeks basic nutritional aid Disease Fighters They prioritise exercise and their healthy eating more than relying on supplements hence, if this segment is to be targeted through physicians Differentiation and positioning c) At the moment, the company is positioning itself as a "traditional medicine" brand. To make the brand more attractive to the client, we can propose repositioning the brand as an environmentally friendly brand used in traditional medicine practices. The eco-trend will help reach more different segments of the population, not only those who trust traditional medicine and base their choice on Canadian standards (as the main goal is to reach and teach Canadians about traditional medicine). Second, the main focus now may be on the post-covid health status of clients. We believe that it is necessary to emphasize "how difficult it is for the immune system to fight any diseases" in connection with vaccination against coronavirus and how it is essential for the body to maintain its resistance to stress in contact with the new worldly realities. Thirdly, the brand is trying to position itself mainly on the Amazon platform, which a priori is not the 10 primary place for selling supplements. We strongly advise to pay attention to e-commerce websites directly related to health and trying to position the brand over there (the leading major giant is i-herb, which can also help bring this product to the US market at an attractive price to Americans). It is imperative to understand what exactly sets the company apart from other brands using the same ingredient in their supplements. The company does not just want to sell its product but to "teach" the client how to "use" natural ingredients and thereby prolong their health for years to come. It might be a good idea to create mini product training videos highlighting the importance of the company's ingredients for longevity. Since the company is trying to reach different segments of the population (as well as different age groups), it may be worth repositioning itself on the Tik-Tok platform and Instagram Stories, where in an "entertaining way" you can talk about the product and its advantages against existing competitors. Marketing Objectives d) 1. Grow digital Presence – optimize SEO. When engaging in digital strategies as they relate to social media, you may also want to utilize KPIs as they relate to social performance. 2. Lead Generation. A lead is a potential customer who has shown interest in your brand by taking some action. They have shared their contact details or otherwise implied that they may want to do business with you. 11 Both B2C and B2B strategies include four components. Lead capture: A way to collect information from a lead. Information may include the lead’s name and contact information as well as relevant qualifying details about them or their organization (e.g., business name, position, number of employees). Lead magnets: An incentive that drives prospects to become new leads. Lead qualification: A process that uses the lead’s information to determine how likely they are to buy. Lead segmentation: The process of segmenting leads based on their information, habits, and activities (e.g., job title, lead magnet that attracted them, pages they visited on your website). As a strategy we would offer to implement Value-Packed Newsletter with blog posts on the website, updates about existing and upcoming health products, special offers (deals like Black Friday), upcoming events. A great way is to host an event where you can offer a Coupon or Discount for those who were connected. As another alternative, provide a free trial of the product (one week of supplements for the customer to see the difference). 3. Create a Referral Rewards System Create a referral rewards system where your customers bring leads to you in exchange for a benefit or discount. Customers value and trust recommendations from their friends, so encouraging existing customers to spread the word about your brand can be a powerful w ay to fill your lead funnel. Additionally, may implement 5% discount for distributors in the future. 12 4. Build chat bots to the website. They can help clients to understand the basics through asking keywords. 5. Expand into a New Market – US Market through e-commerce (example: i-herb, Amazon USA) Marketing Mix Product: Type: The significance of product in the marketing mix is one of the most vital factors in the process of engaging with customers and creating sales. The product, along with pricing, location, and promotion, offers the customer with the most value and is the entire rationale for the marketing effort. When the product or service in question is of high quality and has the necessary attributes to attract customers' attention, the chances of success are considerably increased. Salubritas, a Canadian company that firmly believes in traditional (ayurvedic) medicine, has introduced its first product named “Ashwagandha KSM-66”. Features of the product: Ashwagandha KSM-66 is a product that contains the highest concentration of alkaloids and withanolides (natural organic compounds), as well as other beneficial medicinal compounds, to help fine-tune your body. Ashwagandha, on the other hand, is an evergreen shrub native to Asia and Africa. They chose everything that has a track record of efficacy as well as being thoroughly tested to work.Their clinical data is constantly peer reviewed to guarantee that they keep their goal of providing customers with plant-based medicines that work. It's a popular stress reliever. 13 Furthermore, chemicals in ashwagandha may aid to relax the brain, reduce puffiness, lower blood pressure, and change the immune system. Salubritas has used this plant to create 100% organic pills which will help in managing stress and anxiety leads to improved cognitive and reaction time, as well as boosting the immune system and decreasing cholesterol and blood sugar levels. Health Canada has approved the following claims for KSM-66: Helps increase resistance to stress/anxiety in individuals with a history of chronic stress, thereby improving their overall quality of life Athletic support or Workout/Exercise supplement Helps promote healthy testosterone production in males How it is different from competitors: Salubritas has a number of competitors, such as VitaminTree, which sells KSM66. In terms of promotion, the company does not have a social media presence; it does not have accounts on any social media platforms; nevertheless, salubritas does have accounts on LinkedIn, Tiktok, Instagram, and Facebook. 88Herbs is another rival that sells KSM66. It has a presence on all social media websites, but it has a small number of followers, around 300, as compared to Salubritas, who has 761 followers on Instagram right now. Salubritas third competition is Webber Naturals, a large brand that sells the same product as salubritas. It can be found in major retailers such as Walmart, Costco, and London Drugs. 14 Salubritas is up against another competitors, Jamieson Vitamins, and Swiss Natural, whose products might meet the same need but in different ways. Product Identification: The firm Salubritas manufactures KSM 66 Ashwagandha. It is a white bottle with a green, orange, and red colour coating. The cover provides detailed information about the product, which is important to consumers. In the top right corner, there is a Salubritas logo. It comes in a bottle with 60 capsules with a dosage of 3600 mg. The major benefits of KSM 66 Ashwagandha are also listed on the front of the bottle. Production method/delivery of product: Salubritas has its own official website through which customers may get KSM 66 Ashwagandha. Additionally, it is available on Amazon. Price: To stay competitive in markets with increasing volume and price pressure, the correct pricing strategy is critical. It provides you with the value you deserve for the goods and services you provide, as well as the revenues you need to invest in change and growth. Salubritas has set its price at $29.99 for 60 capsules, with a 10% discount on the first order and free shipping. This demonstrates how they've built up their pricing strategy. Although their price for the capsule bottle is higher than competitors such as vitamin tree and 88herbs, it offsets this by offering free shipping to consumers and a 15 provig 10% discount on first purchases. Place & Promotion: For the company Salubritas, the proposed digital marketing plan comprises of a social media strategy and website content optimization. Today, with digitalization, businesses online presence is a must. For a company like Salubritas, being in a health and wellness industry, engaging with customers online is an essential to promote and share information regarding their products. Following are the ways to incorporate and build a social media strategy (platform specific)a. Instagram- With the current follower base, the brand page should engage more and boost posts on this platform. Instagram is the most used social media platform now, with their new features such as reels and shop on app lets the user buy and interact with brands directly. Here, we propose a content bucket which will help the company to organize their posts and content formats on this platform. Currently focus is to engage maximum people on the brand page, which can be done with campaigns such as #ThursdayTrivia wherein we can push out content related to our key product and ask followers to engage and test their knowledge. Thereby, not asking them “Did you know...?” but testing them creatively which attracts them to the page weekly. Moreover, aesthetics such as brand mood board/ color scheme is another aspect because one should maintain Instagram feed color board. This helps in creating brand awareness as the colors remind viewers about the brand products. Most importantly, short-video form content such as reels and stories help gain followers and engage 16 millennial customers. There are various informative IGTV videos which can help combine and share all the information in a simple video format. b. Facebook/Meta- Here, since the company page is not that active, we can start by posting the same content on Instagram on this platform and attract new customers with the help of Facebook Ads. Moreover, ratings here do matter, and the company should interact with customers via chatbot feature and allow open communication. c. Other platforms- The company has created a page on LinkedIn as well but needs to post content as per LinkedIn audience. Here, the same content formats will not work for the brand. Customization is key and will help attract the right audience. TikTok and YouTube also can be tapped into, once we start creating short and long form videos regarding product features, sharing other health information. TikTok as a platform Apart from a social media strategy, website optimization is also another key aspect of digital marketing plan. SEO or search engine optimization is important to ensure the company website ranks higher organically on the Google search page. There are various ways to optimize the website, firstly being the content on website such as text, images, and video files. Title and Meta Description of the website also factors in for the overall optimization. For the long term, and while running paid google ads (SEM) content on the website will matter and therefore, keywords and tags should be optimized regularly. With this brand, there is a lot to explore on digital front and can be achieved with organized strategy in place. 17 On the other hand, we can also explore public relations of Salubritas. A PR strategy can help build brand’s positive image in the market and help brand to communicate with the customers in their set tone. Here, press releases during new product launches, or feature blog posts on Health and Wellness blog websites can attract few eyeballs and generate a buzz. Salubritas Budget The budget for the development of the marketing plan was clearly indicated by the company. The maximum budget for the development of a successful new digital marketing concept Salubritas is willing to spend 300 Canadian dollars. This budget provides for the introduction of a new company concept, improvement of the current marketing plan and the implementation of the new features, including the development of social networks and e-commerce. Control and Monitor The marketing proposal plans specify the marketing demographics to be reached and the promotional method to approach consumers. When Salubritas begin following the strategy, the ensuing rise in sales is a quantitative factor that provides feedback on the efficacy of Salubritas' marketing initiatives. If the following sales statistics fall short of expectations, they may need to enhance marketing, lower pricing, or adjust their sales strategies (2020). 18 Salubritas should employ quantitative aspects to analyze, oversee, and regulate marketing success by creating corporate objectives within a specific time frame. In general, the quantitative factors are the number of new sales generated. a. By establishing quantitative objectives that contribute to the fulfilment of the marketing strategy. b. By changing existing advertisements or creating newer ones. c. Establish metrics for measuring the effectiveness of Salubritas' campaigns. d. Depending on marketing analytics, analyze the outcomes of each promotion. f. Repeat the initiatives till the marketing goals are met. 19 References Ayurvedic Products Market Size In 2021 : 12.0% CAGR with Top Countries Data, Comprehensive Analysis, Development Strategy, Future Plans and Industry Growth Analysis with Market Value to 2026. (2021, August 23). [Press release]. https://www.marketwatch.com/press-release/ayurvedic-products-market-size-in-2021120-cagr-with-top-countries-data-comprehensive-analysis-development-strategy-futureplans-and-industry-growth-analysis-with-market-value-to-2026-2021-08-22 B. (2020). Evaluating Marketing Performance | Boundless Marketing. Lumen Boundless Marketing. Retrieved 2021, from https://courses.lumenlearning.com/boundlessmarketing/chapter/evaluating-marketing-performance/ BusinessPlanNigeria.com.ng. (2015, June 12). Product – Important Element Of Marketing Mix. Business Plan Nigeria. https://www.businessplannigeria.com.ng/product-importantelement-marketing-mix/ https://www.salubritashealthproducts.ca/
