1. POSITIONING STRATEGY –
For the trendy and sophisticated man who desires premium quality shampoo
using natural ingredients, King Brown’s shampoo bars offer a sustainable
alternative that is plastic-free and responsibly manufactured in Australia; they
save water, stretch the life of regular products and are healthy for your hair.
2. PRODUCT/SERVICE MARKET OFFERING
Nature of the offer – Shampoo bars are a solid form alternative to standard
liquid shampoos. In comparison, regular shampoos are made from 90%
water, whereas shampoo bars are a concentrated product that is overall
better for both people and the planet and long-lasting.
Level –

Type – Shampoo bars are consumer products purchased by customers to
satisfy a need and/or want; they are non-durable and have a shelf life of up to
12 months or 80-100 washes. ‘Shopping’ is the product classification for this
product due to the higher purchase price, selective distributors, and product
longevity equates to being purchased less frequently.
Unique Selling Position –
• Eco-friendly, ethical and sustainable
• They save water
• Plastic and waste-free
• Long-lasting (80-100 washes)
• Better for people and the planet
• Produced using high-quality ingredients responsibly sourced and
• Small and compact – requires minimal space
Shampoo bars are relatively new, with most competitors marketing towards
females; only a few competitors offer or target a product aimed at men, with
few that are also sustainable. We have identified this as an opportunity to take
advantage of this current gap in the market.
Packaging –
• A distinct, easily recognisable logo
• Purposely designed to attract attention
• Packing is certifiable compostable cardboard marked with the seedling logo, a
globally recognised certification and symbol that signifies compostability and
biodegradability in accordance with the Australian Standard 4736-2006
(Tuckerman, 2017)
• All ingredients plus country of origin are listed to meet consumer guarantees
under Australian Consumer Law (ALC), including the Therapeutic Goods Act
1989 (Cosmetics ingredients labelling, 2022)
• Product is described and includes directions on how to use it, plus customer
service contact details, product weight, and a GS1 barcode (How to get a
barcode – GS1 Australia, 2022).
3. PRICE
King Brown’s pricing goals are profit-oriented with a price skimming strategy;
entering the market at a slightly higher price than our competitors and heavily
promoting our shampoo bars. This fits with our shampoo bars being a
shopping good for consumers. The objective is to maximise profitability to
catch early adopters of shampoo bars due to limited purchasing options for
men.
Health and environmental issues have created a need for sustainable and
healthy product alternatives (Arreza, 2020). Demand for shampoo bars is
growing with the global shampoo bar market forecast expected to reach 18.6
million dollars by 2026 (Global Shampoo Bars Market by Product Variants,
2019).
The total cost of manufacturing the shampoo bars, including packaging, is $8
per unit. With a retail price (revenue) of $19.95, this equates to a profit of
$11.95 or a 59% profit margin. Manufacturing costs are currently fixed, and
therefore this allows room for the company to continue to be profitable should
there be increases in raw ingredient costs or manufacturing that impact the
manufacturer. This does not include variable costs such as retail seller
commissions or staff wages.
As per the Australian Competition and Consumers Commission guidelines,
King Brown does not partake in price-fixing, selling goods below-cost or
imposing minimum prices on retailers, all of which can be illegal in certain
circumstances (Setting prices, 2022).
With almost all our competitors targeting the female market and offerings for
men being practically nonexistent, we see this as a viable financial
opportunity.
4. PLACEMENT/DISTRIBUTION
Our channel structure is indirect distribution. Indirect distribution allows
consumers to purchase and receive our goods through selected
intermediaries including the King Brown website. The retail channel is
advantageous for our business because our products can reach a larger
audience. We have a limited number of exclusive distribution channels, of
which these partnerships are with specialist outlets that are reputable and are
of good reputation. These retailers have also been chosen in line with our
target market and where they shop. Priceline, Chemist Warehouse, Amazon
(globally) and Beard and Blade are some of our select retail partnerships.
According to Adglow, males aged between the ages of 25 and 49 years old
are the average internet buyer, finding that 84.3% of men shop online coming
to women (E-Commerce: Men spend more than women, 2022), with online
habits of men including carefully researching a product prior to making a
purchase (Dasha, 2019).
There is scope to engage in wholesale marketing channels in the future.
The level of distribution intensity is a selective strategy, working with several
selected intermediaries used for shopping goods as our products are higher
priced, purchased less frequently, and only sold with particular retailers.
To balance supply chain management’s economic, environmental, and social
aspects while also maximising sustainability, we engaged an Australian
contract manufacturer with a network of ethical and responsibly coursed raw
materials suppliers. Once products are manufactured and packaged, the
manufacturer distributes our domestic and international retail partner orders
on our behalf. All other inventory is shipped directly to our home
office/warehouse, where staff fulfil website orders. An external, independent
third company conducts inventory inspections on behalf of King Brown to
ensure quality control and assurance before distribution. Our Supply Chain
Management process is seamless, efficient, flexible, and reduces
transportation and packaging costs, improving our performance, thus enabling
us to focus on customer service and obtain higher revenue, increasing overall
profitability.
5. PROMOTION/MARKETING COMMUNICATIONS
We are in the introductory stage of the product life cycle; therefore, our initial
objectives are to inform, educate, and raise awareness of our product,
highlighting the features and benefits while using the pull strategy to stimulate
demand. The message design content is a mix of appealing to consumers
rationally and morally, with a consistent and unified tone.
With an initial launch budget of $50,000, our Integrated Marketing
Communications will include a promotional mix of digital marketing, PR, direct
marketing, sales promotions and advertising. Our target market has dictated
our choices (Appendix 1), driven by the use of technology and social media,
influential factors and for whom social causes are important.
Digital Marketing –
• Informative website
• Search engine optimisation
• Social media – Instagram, Facebook, TikTok
Public Relations – To amplify our new product branded to selected social
media influencers that fit without the target market persona will receive
branded PR boxes with product samples
Press Releases to the following –
• Maxim Magazine
• GQ Australia Magazine
• HQ Australia Magazine
• Men’s Health Magazine
• Men’s Fitness Magazine
Direct Marketing –
• New product announcement EDM to subscribers database
• Email marketing campaign
Sales Promotions –
King Brown will be in attendance as an exhibitor at several large trade shows,
where we will leverage the power of free samples by including smaller sample
size shampoo bars in attendee swag bags (Dopson, 2021).
• Introductory reduced price
• Free mini sample bars in attendee bags at selected trade shows/expos
Advertising –
A survey by Roy Morgan found that around 15.2 Australians read magazines
both online and in print (Over 15.6 million Australians read magazines in print
or online, 2020).
• Magazine
• Outdoor media
REFERENCES
Adglow.com. 2022. E-Commerce: Men spend more than women. [online] Available
at: <https://www.adglow.com/blog/pt-br/e-commerce-men-spend-more-than-women>
[Accessed 14 April 2022].
Arreza, J., 2020. Ninety per cent of Australian consumers want sustainable products.
[online] The Fifth Estate. Available at: <https://thefifthestate.com.au/home-andlifestyle/consumers/ninety-per-cent-of-australian-consumers-want-sustainableproducts/> [Accessed 12 April 2022].
Australian Competition and Consumer Commission. 2022. Cosmetics ingredients
labelling. [online] Available at: <https://www.productsafety.gov.au/product-safetylaws/safety-standards-bans/mandatory-standards/cosmetics-ingredients-labelling>
[Accessed 9 April 2022].
Australian Competition and Consumer Commission. 2022. Setting prices. [online]
Available at: <https://www.accc.gov.au/business/pricing-surcharging/setting-prices>
[Accessed 8 April 2022].
Dain Intelo. 2019. Global Shampoo Bars Market by Product Variants. [online]
Available at: <https://dataintelo.com/report/shampoo-bars-market> [Accessed 12
April 2022].
Dasha, 2019. Men vs. Women. Who Runs the Online Shopping World?. [online]
BelVG Blog. Available at: <https://belvg.com/blog/men-vs-women-who-runs-theonline-shopping-world.html> [Accessed 12 April 2022].
Dayton, E., 2020. 10 Fascinating Amazon Statistics Sellers Need To Know in 2022.
[online] Bigcommerce.com. Available at:
<https://www.bigcommerce.com/blog/amazon-statistics/#10-fascinating-amazonstatistics-sellers-need-to-know-in-2020> [Accessed 13 April 2022].
Dopson, E., 2021. The Science of Free Samples: How Freebies Keep Customers
Coming Back For More. [online] www.shopify.com.au. Available at:
<https://www.shopify.com.au/retail/product-sampling> [Accessed 13 April 2022].
Gs1au.org. 2022. How to get a barcode – GS1 Australia. [online] Available at:
<https://www.gs1au.org/how-to-get-a-barcode> [Accessed 10 April 2022].
Roy Morgan. 2020. Over 15.6 million Australians read magazines in print or online.
[online] Available at: <http://www.roymorgan.com/findings/8278-roy-morganmagazines-readership-results-december-2019-202002060558> [Accessed 13 April
2022].
Tuckerman, R., 2017. The Seedling Logo Explained. [online]
https://bioplastics.org.au/. Available at: <https://bioplastics.org.au/seedling-logoexplained/> [Accessed 8 April 2022].
APPENDIX 1