Sell Scentsy Products at Home Parties for Maximum Profit - Research Paper

Introduction

Home parties can always be a significant lifeline of businesses and particularly, a remarkable place to sell Scentsy products. Although most Scentsy consultants prefer selling their products through their websites and other online platforms, Scentsy as a company tends to encourage its partners not to miss the value of holding an open house, basket parties or home parties. Indeed, the company's founders, Mr. and Mrs. Thomson successfully integrated the concept of direct selling through independent consultants to private home parties, personal websites and at shows as well as fairs. Obviously, these are all successful methods of marketing Scentsy products and developing a customer base for long term sales.

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The Market Plan

Objectives

The business's main objective is to be able to offer customers the best products in their class and maintain profitability through a balance between revenue and expenses.

Mission Statement

The business's vision statement is to bring value to its customers by availing creative, artistic and high-quality products that not only satisfy their wants but also warm their heart as well as inspire their soul.

Marketing Strategy

The business will avail unique Scentsy products using penetration pricing, comprehensive advertising and also increased distribution in order to improve revenue and also facilitate the growth rate.

SWOT Analysis

Strengths

• Innovative production methods which provide a wide range of Scentsy products from which customers can choose.
• Relatively affordable products that easily attract both regular and unsuspecting customers.
• Crucial marketing strategies through parties and online venture. It is always easy to attract a large crowd in parties who could be potential clients. At the same time, marketing online allows the business to reach many clients from different geographical areas.
• Experience in distribution channels for Scentsy products.
• Easy to start and run as it does not require much experience.
• Huge support from the parent Scentsy Company.

Weaknesses

• It is almost impossible to improve the commission as a consultant.
• There is also a problem of recruitment where a consultant is required other consultants to be able to improve their overall earnings.
• Limited experience in distributing and marketing Scentsy products to online customers and stores.

Opportunities

• Currently, Scentsy products enjoy a large market from both the organized parties and also online customers. This can significantly improve total sales and revenue.
• The demand for Scentsy products has increased in the recent past, thereby creating a faster-growing market than the current production.
• The consumers' demand for unique products has also created a demand for innovative Scentsy products.
• Significant help from friends and family members through organized parties, events as well as fairs.

Threats

• Scentsy products often face fierce completion from other businesses such as Stella and Dot, Herbalife nutrition and USANA.
• Although the international expansion provides opportunities to increase sales, the local culture and also the acceptance price points may influence the perceived opportunity for expansion.
• Economic trends also pose a huge threat to the sales of Scentsy products as it may be challenging to balance the strengths and the rapid sales growth.

Product Mix

In economic, the marketing mix encompasses all the known tricks and actions that businesses use to improve their presence in the market and also promote their brand as well as their products. Although the current marketing mix involves other mix elements such as people and politics, most businesses still use the traditional 4Ps which include price, product, promotion, and place.

Price

Price is one of the tools that the business will use to market the Scentsy products. By definition, it is often the value that businesses put on their products after carefully analyzing the segment targeted, the cost of production, supply and demand, the financial capabilities of their clients and also other direct and other indirect factors. This value is also connected to the overall business objectives and mission statements. For Scentsy products, there is no suggested overall retail price since each product has its own defined price, however, each product will have a favorable price that is both reasonable to the clients but still generates a substantial revenue to the business. Additionally, the business also has an advantage of product quality which further encourages the use of prices slightly exceeding that of other competitors. Ideally, this pricing strategy, combined with effective production methods will enable the business to achieve a significant market share for its products.

Product

Product, in this case, is all the Scentsy products that are currently being produced. In any market or in any industry, products are believed to be the primary drivers of business performance and are always required to deliver the best performance, nevertheless, all efforts made on other elements of marketing mix would surely not yield any fruit. The business will introduce a wide range of Scentsy products which will all be categorized into Scentsy man, Scentsy children, Scentsy limited edition collactibles, Scentsy weddings, and Scentsy fundraising. The Scentsy men collection, for instance, is a bit different from the one usually meant for women and are supposed to provide peoples' home with woody fragrances that would be appealing for both genders. Similarly, some of the Scentsy limited edition collactible such as nutcracker warmer premium usually symbolize events in peoples' lives. They can sometimes be issued as gifts. While Scentsy products have always been a thing for the adults, they can also be customized specifically for children and are suitable as gifts for children of all ages. Additionally, Scentsy ceramic candles have become more and more frequent particularly in weddings. They are not only preferred as an additional extra luxury but also as a great invitation of guests with unique scents.

Place

Location is one of the most significant determinants of a successful retail business. As a matter of fact, in identifying the place as a marketing strategy in any industry, it is always crucial to choose a place that attracts the eyes of consumers and making it easier to spend their money on a company's products. Ideally, it is the most significant aspect of effective distribution. The business intends to utilize its strong distribution channels nationwide covering more than 20 percent of the households within the first year. At the same time, the business does not hope to limit its potential by distributing only to certain regional markets, therefore will tend to lure its online customers through extensive advertisement without necessarily setting up a physical store.

Promotion

Setting up a new business and entering a new industry can be quite challenging especially for retailing businesses. Therefore businesses always tend to employ certain promotional strategies to make their products are known to the consumers and other traders. Some of these strategies include press reports, commissions, word of mouth, advertising and incentives. The business will recruit an additional ten sales representative who will be given specific tasks of assisting in the development of more distribution outlets. Along with the sales representatives, the business intends to hire one sales trainer to up-skill the sales force in the Scentsy products. In addition, the business will invest heavily in advertisements both on television stations and also on the internet through adds to its online customers. This is the most crucial aspect of promotion strategy as the information reaches a relatively large audience. Even more, since it is a new business, the company intends to provide incentives and prices for its new customers over a period of three months to be able to attract unsuspecting customers. Commissions are also essentials in such instances to give the sales force the moral they need to push the Scentsy products' sale.

Packaging of Scentsy Products

Just like pricing, the packaging is often viewed as a comprehensive way to communicate with potential customers, to reflect one's business position and also to portray the target market's values. In essence, packaging always portrays more than just the writings on the physical cover of the outer container in which the products are bought in. In fact, to most people, packaging represents how a business's products are tied together from the suppliers to the final consumers. Even though packaging takes different forms, the business tends to package its products that positioning, identity and customer value. For instance, in communicating its position through packing to various customers, the business will use boxes and containers that are relatively inexpensive to indicate the Scentsy products are for everyone and just for high-income earners and also differentiate its products from those of the consumers. Similarly, the business intends to design graphics identities that can easily capture the customers' attention even without needing to buy the product. This will also help with the expenses since startup businesses may not be able to promote its products at the same level as the industry giants. It can either be a unique logo or an unusual name on the packaging materials. Additionally, the company also wishes to design its packing materials in a manner that reflects the consumers' values. Before designing packages, the company should conduct thorough research on the target market through the consumers' opinions, lifestyles, and even interests as well as the demographics.

Implementation

Implementing a marketing strategy usually involves a tactical and comprehensive marketing plan integrated with the core strategies for business growth. As a matter of fact, product implementation requires a broader perspective and involves certain components such as entering the market, the launch of a new or the existing product, channel issues management and the return on marketing investment. For example, when introducing a product in the market, one needs to understand how to enter into the market place. For Scentry products, the business needs to keep a manageable and simple plan that will help its products access the market smoothly. Secondly, the business will develop a strategy for product launches in the market. In most cases, launching new products in the market can be frustrating for small businesses, however, having a well-laid plan for product launches, driven by a set of goals can be crucial. Finally, it is always important to develop a plan to manage channel conflicts. Indeed, creating an encouraging and supporting channel behavior such as training and arming the channel's sales force is vital since they often invest a significant amount of time which aids in the success of the business.

Evaluation and Control

The evaluation step in the process of developing a marketing plan is usually meant to identify and analyze both the qualitative and quantitative factors often related to objectives, strategy, and implementation. In essence, the quantitative factors considered in this cases encompasses all the metrics in which are associated with numbers such as the number of products produced, the numbers of customers in the target market and even the quantity of sales achieved. On the other hand, qualitative metrics are usually associated with the level of satisfaction for both the customers and the employees. In marketing Scentsy products, these factors will ensure that the business follows the right channels, distribute the right amount of products and also reach the relevant customers.

Controls in a business marketing plan are always important...