Case Study – NatureCare
NatureCare Products is based in Brisbane, Queensland Australia and commenced business in 2006 manufacturing and retailing eco-friendly, high quality beauty skin care products. The business was established to cater for a growing demand for skin products that contain eco-friendly and natural ingredients. There is also an emphasis on eco-friendly packaging.
The company has a range of products (not organically certified) currently that include:
• Cleansing creams to soothe skin during make-up removal. Primary ingredients include Shea butter to nourish the skin and plants extracts that are also rich in essential oils with
regenerating and anti-inflammatory properties. This product will be for delicate and mature skins and could also be used as a baby cream.
• Multi Protection Day Moisturizing Creams for dry to normal skin types that help protect the skin during the day and includes Shea butter and extracts from fragile green algae that provides hydrating and protective properties.
• Regenerating facial scrub to clean off dead skin cells to promote regeneration of healthy new cells. This product will be used for most skin types.
The company has become well established in the Australian market and sells its products in health stores across the country. It also sells its products online through its own web site. The company targets customers that want high quality, eco-friendly products. The company’s target customers are currently professional women aged 25 to 55. The current strategy of the company as identified in its latest Marketing Plan is niche marketing to the target group based on positioning the products as high quality and eco-friendly. The company is in a strong financial position as shown in its Business Plan.
Company staff include the CEO, General Manager, Marketing Manager, Marketing Officer and Administration/Project Officer and a receptionist.
Further information required to complete Section 1 of the Project Portfolio
You are the new Marketing Manager.
The company has not previously undertaken formal market research. The research is now required to assist in growing the company through identification of new products and/or new markets.
Due to lack of qualified staff/staff time, it has been identified that external consultants should be used to conduct the primary qualitative market research. A budget of $30,000 has been allocated for this primary research. Staff time only will be required for the secondary qualitative research and so will not attract specific costs.
The CEO wishes to have all of the research completed and reported on within the next two months.
Management has also indicated the following information for use in developing the required market research policies and procedures:
• External consultants should be used to conduct primary market research. Where external consultants are used, at least three quotes should be obtained and assessed according to
services provided, reputation of company, value for money and fit with market research objectives.
• Secondary research should always be used in market research. However, its currency must be reviewed. Generally secondary research should use data that is no more than three years old. A mixture of primary and secondary research is ideal. The Marketing Officer will perform the secondary research.
• Market research must be completed within 2 months of commencement.
Assessor: Provide students with a suitable date based on when the assessment is being done.
• A market research project plan must be developed and approved by the CEO before market research commences.
• A market research report must be completed at the end of the market research summarizing the research and providing recommendations.
Confidentiality of market research information and secure filing is of the utmost importance.
Although the business has not previously done any market research, the previous Marketing Manager had initially planned for market research when the business first opened using the following plan:
Market Research Plan for NatureCare Products Date:
Purpose:
To identify which products our target customers will buy regularly and which products are once- off purchases.
Market Research objectives:
• Identify and categorise products that are purchased on a regular basis
• Identify and classify products that are purchased once-off.
Market Research Methods
Both primary and secondary research is needed.
We will use surveys, telephone interviews and review of competitor web sites.
Budget and timeframe of research:
All work must be completed by internal staff. No specific budget has been allocated. Research to be completed within 6 months of the business operating in the market.
Market Research activities or actions
What should be
Timeframe When should it be done?
Requirement
What is required to get it done?
Budget How much can I spend?
Team or person responsible Who is responsible?
Approve Market Research Plan
Immediately Meet with senior management and/or CEO.
$0 Marketing
Manager
Assign research responsibilities
Immediately once plan is approved
Market research specifications
$0 Marketing
Manager
Identify and source all
resources required for research
Within 1 month after plan is approved
Staff to conduct research
$0 Marketing
Manager
Obtain research findings
5 months’
time
Email staff to obtain research findings
$0 Marketing
Manager
Evaluate and report on research findings
6 months’
time
Develop evaluation report
$0 Marketing
Manager
Further information required to complete Section 2 of the Project Portfolio:
You have received three quotes from the companies above as outlined below.
Quote from: Quote details:
QuestionandAnswer Market Research
Quoted $25,000 plus GST for completion of the work. Can meet the timelines specified in the brief. Four staff will be assigned to the project including two senior members of the team. Suggest using focus groups and one to one interviews as the research methodology. Have access to a large database of possible market research respondents. Will conduct all the focus groups in Brisbane and interviews will be by phone and cover a range of respondents nationally. The company has also provided information on the range of organic products market research it has conducted.
Colin Bryants Quoted $26,000 plus GST for completion of the work. Can meet the timelines specified in the brief. Two senior members of staff will be assigned to the project. Suggest using focus groups and surveys for conducting market research. Have access to a large database of possible market research respondents. Will conduct one focus group in each capital city. Will email out survey to identify market research respondents.
The company is focussing on its nationwide reputation as a high-quality provider of market research services.
HandPrints Market Research
Quoted $23,000 plus GST for completion of the work. Can meet the timelines specified in the brief. Four staff will be assigned to the project.
Suggest using focus groups and surveys for conducting market research.
Will conduct all of the research in Brisbane. The company has focussed on its credibility in terms of working with small to medium sized
businesses.
Further information required to complete Section 3 of the Project Portfolio
Assume a period of time has passed, but the market research project is not completed.
The market research project has commenced but about three weeks into the project you receive an email from the market research consultants indicating that the research has been delayed due to difficulties in recruiting suitable market research respondents. The company estimate that this will result in a two-week delay. As the delay is only two weeks, it is agreed that this is acceptable and that only some of the timelines need to be changed to reflect this. However, there can be no further delays.
The Marketing Officer has provided the following progress report:
Subject: Secondary market research progress report Dear Marketing Manager
Thank you for your email.
I have started with the secondary research and will be able to complete it in the timeframes indicated in the Market Research Plan.
Kind regards [Name]
Assume that the market research project is now completed.
Due to the delay in conducting the focus groups, there was an overall delay of two weeks. The project has come in on budget.
You have received a report from the Marketing Officer at NatureCare Products that the secondary research conducted internally has identified the following relevant information from a number of secondary sources:
• Organic skin products are in high demand (12 out of 15 competitors offer the product)
• Younger shoppers (under 28) are increasingly seeking organic skin care products (52 out of the 80 blogs aimed at young people recommend their use).
• Online shopping is becoming increasingly in demand for purchases of organic products generally (3 out 8 searches result in a sale)
• Two certified organic competitors are seeing steady growth in their sales
Your internal staff report that there is a wealth of information available from secondary sources and that it may have been better to conduct the secondary research first, instead of conducting the secondary and primary research at the same time. The staff member also indicates that it might be easier to coordinate the research by employing contract staff that work within the organisation rather than external consultants
The report from the external consultants regarding the focus groups and one to one interviews have provided the following findings:
• Four focus groups comprising of six people were conducted across the country. The six people in the group were all women aged over 35.
• One to one interviews with 50 people. Each interview lasted ten minutes. Interviews were conducted with 10 men and 40 women. Age range was between 30 and 50.
• The overall findings from the qualitative research conducted was:
o Value for money is important even for high-end organic or natural skin care products.
However, consumers were generally willing to pay more than for mainstream products o There was roughly a 50% split on whether organic certification was important or not o The men interviewed are also seeking organic skin care products
o Opportunities to purchase in a number of retail outlets, as well as online were sought.
NatureCare Products
Marketing Policy and Procedures
Purpose
This policy and procedure on the use of marketing materials is required to enable NatureCare Products to comply with legislation and regulations relevant to marketing practices, as well as standards and codes such as Advertising Standards Bureau (ASB) codes of conduct.
This policy applies to all employees and external providers involved in the promotion of NatureCare products and services.
Definitions
Marketing and advertising materials refers to all materials printed or published relating to NatureCare
Policy
All marketing and advertising conducted by NatureCare products will be accurate and ethical.
Detailed written procedures regarding marketing and advertising are available to all staff at NatureCare premises and are included in employee induction packs.
Employees should always use standard templates provided for documenting marketing activities.
Employees should always seek approval from designated authorities for marketing activities.
Marketing procedures
All marketing material must:
• Adhere to Privacy Act.
o Must not use personal images, information for marketing purposes without express written consent.
• Adhere to Do Not Call Register legislation
o Potential customers on the Do Not Call Register must not be called for marketing purposes.
• Adhere to anti-discrimination policy:
o Images or written material must not portray any group or individual in a negative, offensive or stereotypical way on the basis of sex, gender, marital status, etc.
• Be conducted in a safe and responsible manner to minimise risk to health and safety of NatureCare employees and the general public.
• Not include spam campaigns.
o attempt to induce individuals to place their personal interests above those of NatureCare o attempt to restrict competition by:
− inducing a competitor or customer to breach a contract with a third party
− obtaining unauthorised access to classified or proprietary information or documents
− securing an unfair competitive advantage.
o violate any law or regulation
o engage in any activity that could damage the reputation of NatureCare o give false or misleading information or advice in relation to:
− claims of products or services: price, benefits, etc.
− the environment and sustainability of NatureCare
− the ethical conduct of NatureCare
− any other claims.
• Where relevant, adhere to standards and codes of practice regarding specific types of media such as radio, television or the Internet.
