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Sun Spin
Caitlin Bartley, Heather Dolan, Daniela Tueme
MGMT 3301*02
Dr. Jing Yang
December 2, 2014
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Table of Contents:
Executive Summary: ............................................................................................................................. 2
Situation Analysis/Strategic Research: ......................................................................................... 3
Environmental Analysis: ................................................................................................................................................. 3
SWOT Analysis: ................................................................................................................................................................... 6
Market Segmentation: ......................................................................................................................... 7
Target Market:........................................................................................................................................ 7
Market Coverage Strategy: ................................................................................................................. 8
Positioning: ............................................................................................................................................. 8
Positioning Statement: ........................................................................................................................ 9
Differentiation: ...................................................................................................................................... 9
Integrated Marketing Mix ................................................................................................................ 10
Product ................................................................................................................................................................................. 10
Pricing ................................................................................................................................................................................... 11
Distribution......................................................................................................................................................................... 12
Promotion............................................................................................................................................................................ 13
Evaluation Strategy ............................................................................................................................ 14
Bibliography ......................................................................................................................................... 15
Tables:
SWOT Analysis ………………………………………………………………………………………………………………6
Sun Spin Strategy Canvas……………………………………………………………………………………………....10
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Executive Summary:
Over 2 million young adults and adults in the United States have skin cancer,
making it the most common form of cancer in America. With that being said, we as a
group decided to innovate the traditional bottle that holds sunscreen to a more
convenient product that reduces the amount damage caused by damaging UVA and
UVB rays from the sun. In addition, we will also be creating our own lotion to brand.
Our objectives are to create a non-traditional bottle that has a retractable arm
with a rolling sponge making it easier and more convenient to put on sunscreen while
being more affective than regular sunscreens and spray sunscreen. The logic behind a
retractable arm with a sponge roller goes into the facts that people do not know how to
apply sunscreen effectively. When sunscreen is misapplied, damage can be caused to
the skin, and the percentage of people in the United States with skin cancer will rise.
Our product will be sure to reach most areas of the body with ease and a mess-free
application.
The structure of our paper will proceed as follows: First we will cover the analysis
of the situation and display our strategic research. This includes, all aspects of the
environment analysis, and a SWOT analysis. Next, we will break up the market
segments and choose who we will have as a target market, following with our target
market strategies to attract our newly picked target market. The next section consists of
our positioning in the market and what our positioning statement is tailed by how we will
differentiate ourselves with the respective industry.
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Situation Analysis/Strategic Research:
Environmental Analysis:
1. Industry:
The sunscreen industry has heightened since consumers are more aware
regarding the dangers of excessive UVA and UVB exposure. Therefore, sunprotection products have become increasingly popular over the past five years
(Ibisworld). Sunscreen comes in lotions, spray, creams or other applications and
is used to protect the skin from the sun’s harmful rays if applied correctly. While
the sunscreen market is reaching its peak, evidence by declines in sales during
2013 should be outweighed by growth over a ten-year period (ibisworld).
Trends:
2013 marked the first year that sun care value declined in the last decade.
Sun protection accounts for 86% of overall value sales, declined in current value
of 2%, falling to $1.4billion. However, self-tanning and aftersun, which accounts
for 10% and 4 shares respectively, saw the most gains (ibisworld).
Prospects:
Sun care in the US is projected to increase by 9% to reach $1.8 billion in
2018. Mass sun protection, which accounted for an 82% share of value sales in
2013, will be the primary driver of sales in sun care (ibisworld).
2. Competitive Environment:
Our direct competitors would be all, if not most, sunscreen manufacturers. For
example, we would be competing with Banana Boat, Hawaiian tropic, etc. We will
specifically be partnering with Coppertone in providing them our product giving
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them competitive advantage; however, we also will have our own sunscreen and
be competing with them as well.
Banana Boat’s suntan annual sales for 2010 were $20,822,390 and their
Sport Performance sales were $24,276,480. Hawaiian Tropic’s Suntan sales
topped $21,974,700. Lastly, Coppertone’s Ultraguard lotion annual sales were
$16,378,130 (Ibsworld).
3. Channels of distribution:
Our corporation, Bartley, Inc., is partnering with manufacturing company,
Berry Plastic Corporation. Since we are partnering with Berry Plastic Corp., they
will be our suppliers and we, Bartley, Inc., will be the suppliers to Coppertone.
4. Demographic environment:
According to the CDC, only 45% of young adults ages 18-24 used one or
more sun protective methods. Melanoma, the most deadly form of skin cancer, is
the most common in adults between the ages of 15 and 29. Among men aged 18
or older, only 48% reported using sun protection. Women in the same age range
totaled 68% in usage of sun protection. Our goal is to increase our target market
to 60% by providing a convenient bottle with easy application making it mess-free
(CDC).
5. Cultural and Social Environment:
Because of recent awareness of UVA and UVB harmful rays, the sunscreen
industry has boosted in the past five years. This is due to social trends of staying
active and healthy and these harmful rays accounting for skin cancer being the
most common form of cancer in the United States. Factors affecting buying
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trends of sunscreen are due to 45% of sunscreen users being bothered by
getting sunscreen in their eyes, 41% were bothered by sand sticking to their skin,
and lastly cost of the product (Momstream). Surprisingly, only one-third of
sunscreen users are brand-loyal when it comes to sunscreen leaving the other
62% using whatever the store has (Momstream).
6. Legal, Political, and Ethical Environment:
There are no ethical issues with sunscreen protection in the United States. In
the sunscreen industry, the only law that could potentially hurt the image of a
product is the U.S. FDA Sunscreen Regulation passed by the FDA on June 14,
2011 preventing the usage of the phrases “sunblock”, “waterproof”, and “prevents
skin cancer” on sunscreen bottles. In addition, specific testing must be completed
for each sunscreen product before other claims about the product’s UVA and
UVB protection can be made (FDA).
7. Technological Environment:
Photoreflective Polymer Spheres are one of the newest sunscreen
technologies that build on the foundation of reflecting light and absorbing light.
These spheres are small, hollow synthetic compounds that cannot be seen or felt
on the skin or are absorbed the skin. When UV lights strike skin, the
photoreflective polymer spheres act as a physical barrier by reflecting this
harmful light (Emerging Technology). These new spheres can affect our product
positively by adding on more protection from the sun in addition to the roller.
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8. Economic Environment:
Rising awareness in Skin Cancer statistics is boosting the sunscreen industry.
The only factor that could impede the sunscreen industry is the FDA not
approving protections that are permitted in other countries that have proven to be
effective.
9. Public Environment:
The public environment would should and would be very interested in
investing in our product since skin cancer awareness is rising and consumers
want and need a product that will reduce the chance of suffering from skin
cancer.
10. Natural Environment:
Ecologically, there is nothing to be concerned about. Current sunscreens are
made with minerals that are not harmful to the environment, and most
importantly, to human skin.
SWOT Analysis:
Strengths:
 Increased skin cancer
awareness
 Higher demand for new sun
protecting solutions
 New technology- product design
 Partnership with Coopertone
Opportunities:
 International expansion
 Untapped technology for both
product design and sun
protection
 New product lines (i.e. tan oil)
Weaknesses:
 Higher priced product
 New to market
 Long-term debt
 Weak cash flow
Threats:
 Lower priced sunscreens
 Competitors brand recognition
 Laws enacted on sunscreen
claims
Table 1.1
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Market Segmentation:
Our geographic segmentation consists of dividing the market based on climate.
We will target customers who live in moderate, hot or very hot climates because these
consumers are most likely to expose their skin to the skin and be in need of protection.
Our demographic segmentation variables are age and ethnicity. We will target
adults ages 18-24 because studies find that people of these ages are less likely to
protect themselves from the sun. We will also segment by ethnicity and target people
with very light, fair, or normal skin type because the fairer the skin color is, the greater
the chances it will be affected by the sun.
Our behavioral segmentation variables are benefits sought and occasion. We will
target consumers who are concerned about sun damage and who are looking for
complete protection. We will also segment by occasion, meaning that we will promote
our product more during the summer months when our consumers are more likely to be
outside exposing their skin to the sun.
Lastly, our psychographic segmentation variable is lifestyle. This segment will be
based on our consumers’ activities and interests. We will target those consumers who
do outdoor activities, such as spending time at the beach or pool, or playing an outdoor
sport.
Target Market:
Our target market is young adults ages 18 to 24, who have fair to normal skin
type, who are active and engage in outdoor activities and/or sports, and whom live in
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moderate, hot, or very hot climates. Consumers in this segment are looking for
convenience and protection when it comes to being out in the sun.
Market Coverage Strategy:
Our market coverage strategy is undifferentiated (mass) marketing. We will
ignore market segment differences and go after the whole market with one offer. Our
product is designed to meet the needs of all consumers in the market, who have a
common goal of being protected from the sun.
Positioning:
In targeting young adults between the ages 18 and 24 engaged in outdoor
activities and in hot climates, our Sun Spin provides mess-free and complete protection
coverage from the sun.
Sun Spin falls under the more-for-more positioning because it will be more
expensive than other sunscreen products, however consumers are paying for a more
effective, higher quality product.
Sun Spin provides the complete protection coverage in comparison to other suncare products due to the retractable wand allowing full protection of consumer’s entire
back. Lotions and spray sunscreens are not as efficient as the Sun Spin because for
the sunscreen to be effective, it has to be applied correctly and fully on your
skin. Without Sun Spin consumers will not be able to cover the hard-to-reach areas,
such as their back and shoulders.
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By targeting consumers between the ages of 18 and 24, we put our product in
the consumer’s minds as being relevant to their lives because the Sun Spin is anti-aging
and protects against UVA and UVB rays.
Positioning Statement:
To target the need of our target market of adults ages 18-24 with a new product
that makes applying sunscreen easy and mess-free with a new concept of an
extractable roller that allows one to reach and effectively apply sunscreen on most parts
of their body.
Differentiation:
Our company focuses on product differentiation through which our brand is
differentiated on the performance and design. The Sun Spin is the only product
allowing full coverage of sunscreen to hard to reach areas, such as your back and
shoulders. The retractable wand both applies and rubs in the sunscreen to the
skin. Unlike a lotion or spray, consumers don’t have to guess where they are applying
their sunscreen, nor do they need assistance in rubbing it in on the hard to reach
areas. Since the Sun Spin rubs in the sunscreen during application, it is completely
mess-free.
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Sun Spin Strategy Canvas
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5
4
Sun Spin
3
Spray
2
Lotion
No Sunscreen
1
0
Price
Coverage
Application
Difficulty
Mess-Free
Table 1.2
Integrated Marketing Mix
Product
The Sun Spin has unique characteristics making it easy for consumers to
differentiate it from other products. Sun Spin satisfies consumers’ need of
covering hard-to-reach areas on their body by its exclusive bottle design. Sun
Spins’ features include a rolling sponge connected to an extractable arm that is
attached to the ergonomic bottle specifically made for American’s hands. The
extractable sponge feature benefits and is used for applying sun lotion to hardto-reach areas such as shoulders, backs, and the back of consumers legs.
Another feature is the same sponge when it is in position one, inside the bottle.
The sponge is a cylinder shape with a metal pole inside that will allow for the
sponge to “roll” within the bottle. This way, consumers can squirt lotion on their
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skin and roll it in providing full coverage. The style or styling of the Sun Spin
bottle is clean and simple. Covered in a lime green color, the bottle is also
shaped designed with mind the hands of Americans to produce an ergonomic
shape. The sponge included in the bottle is a bright yellow with a sun clip art
stamped to it. Branding includes the name, design, symbol or feature that
identifies the product. With that being said, our name, Sun Spin brands that are
product is a Sun product with the spinning feature. The design of our bottle, the
ergonomic shape and extendable arm also brands our product by making it the
first sun lotion bottle to have several functions. Since our products will be sold
at retail stores, packaging is simple boxes that will provide protection to our
bottles as they are being shipped. The quality and reliability are guaranteed for
our product being that it is the first of its type.
Pricing
Demand for a reliable and effective sunscreen protection is currently high
with increased awareness of harmful UVA and UVB rays. Because of this high
demand, and the sophistication of our sunscreen bottle, we consider setting the
price just above other competitors. In order to come up with a respectful price for
our product we have factored in demand, competition pricing, and are using
penetration pricing. After comparing several sunscreen prices including
Coppertone’s price of their continuous spray at $9.95, and calculating our
product costs, we concluded that our product would be priced at $14.95. This
seems high, however we are using penetration pricing here considering the
manufacturing costs, which are approximately $12.00. Since it is a new product,
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we will test the market to see if selling at the lowest price possible will yield more
sales, which means more profit, bearing in mind product costs and competitors’
prices. That way, as the product becomes more popular, we can gradually raise
the sales increasing our income.
Distribution
The Sun Spin will be sold where other sunscreen products are sold. There
are several retail stores that carry sunscreen products, including CVS, Walmart,
and Target. Established sunscreen brands already have success selling through
this channel, so we intend to follow and sell our products here as well. Having our
products next to these well-established brands that went through these channel
intermediaries will catch the eye of consumers and get them to try our product.
Our products will be up against the products of our competitors. Customers can
purchase our products in these stores all over the country. There will be three
channel levels: producer, retailer, and consumer. We will be teaming up with
Coppertone to produce the products. Our retailers will be retail stores, such as
CVS, Walmart, and Target. Our consumers will consist of those in our target
market. Bartley Inc. will practice intensive distribution, stocking our products in
selected retail stores. We will be selective, though, on which retailers will carry our
products. We want to get our product in most relevant retail stores, in order for
consumers to benefit from our product. We will also look to specific stores who
sell only beach items to sell our products.
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Promotion
Since the Sun Spin is a relatively new product design, we need to make
our customers aware of how our product is different from other sunscreen
products. So first, we must build awareness and knowledge for our consumers.
This will consist of creating a marketing campaign teaching consumers about the
effects that the sun has on their skin, and how traditional sunscreen bottle designs
are not keeping them safe from the sun. Our communication will be informative,
teaching consumers good health strategies and how to prevent skin cancer. We
will be implementing a push strategy, since we will be pushing our product
through marketing channels to the final consumer. Not only are we trying to get
the consumer familiar with our product, but we also have to direct our marketing
activities toward our channel members to induce them to carry our product and
help promote it to final consumers. We will use advertising in order to reach
masses of geographically disbursed buyers at a low cost. Through advertising we
will be promoting our product and also teaching about how to better protect your
skin from the damages caused by the sun. We will also use sales promotion,
offering strong incentives to use our product, and also public relations. Public
relations will provide consumers with real life stories about how our product really
makes a difference. Sun Spin will also be advertised on our Facebook, Twitter,
and Instagram sites. We will not only promote our product through these social
media outlets, but we will also provide tips and create awareness about sun
exposure and protection.
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Evaluation Strategy
To evaluate the efficiency of our marketing and promotional strategy, we will
formulate a weekly schedule for marketing-related activities and production related
activities and sales.
Weekly, we will calculate the incoming revenue by calculating the variable and
fixed costs required to make the product and minimize them to the best of our ability.
Each month we will analyze our income statement and compare it to the previous
months to measure our growth as a company.
We will also calculate how fast the products leave the shelves of our retailers in
between each delivery by keeping close track of inventory in different locations.
Every other month, we will use metrics to measure Bartley Inc.’s consumer brand
awareness and customer satisfaction levels. We will use a computer program to
separate the positive and negative comments that consumer’s tweet about our product
create a ratio of good to bad comments. We will use constructive criticism from users to
help improve our product. Bartley Inc. will also keep a close eye on our consumer
following on social networks to create strong brand recognition and loyalty.
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Bibliography
Emerging technologies light the way for better sunscreens. (2011, March 15).
Retrieved October 4, 2014.
Sun Care in the US. (2014, July 1). Retrieved September 5, 2014.
Sun-Protective Behavior Rates. (2012, July 18). Retrieved October 5, 2014.
Sunscreen Use: Surprising Statistics. (2010, April 13). Retrieved October 5, 2014.
Sunscreen Manufacturing in the US: Market Research Report (Sunscreen
Manufacturing in the US Market Research)
Tallaman, B. (2010, June 18). Here Comes The Sun-Take Cover. Retrieved
October 5, 2014.
U.S. FDA Regulatory Requirements. (2011, June 14). Retrieved October 5, 2014.
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