Marketing Pp


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Marketing Pp

  1. 1. Contents <ul><li>-Soy Candle </li></ul><ul><li>-Scents Available </li></ul><ul><li>-About Soy Candles </li></ul><ul><li>-Benefits of Soy Candles </li></ul><ul><li>-*Production, Price, & Cost </li></ul><ul><li>- Production, Price, & Cost (explanation: items and cost) </li></ul><ul><li>- Production, Price, & Cost (selling cost, fixed, and break-even) </li></ul><ul><li>-* Promotion & Advertising: Our Approach (marketing) </li></ul><ul><li>- Promotion & Advertising: U.S. & England (marketing) </li></ul><ul><li>-Shipping </li></ul><ul><li>-Consumer Information </li></ul><ul><li>-References </li></ul><ul><li>2005 </li></ul>
  2. 2. Soy Illuminates A Cleaner and Fresher Way to Illuminate your Life <ul><li>We do custom orders for colors and scents! </li></ul><ul><li>Great and safer or parties, weddings, ceremonies, bath, home, dorms, churches- anywhere! </li></ul><ul><li>*Become a frequent buyer! For every 6 jars or tin candles you buy, receive 10% off any future purchase! </li></ul>
  3. 3. Scents Available We use Essential oils! Do not see what you want? Call or visit our website. We are continuously adding new scents . <ul><li>Aloe Vera Geranium </li></ul><ul><li>Apricot Grapefruit </li></ul><ul><li>Chamomile Jasmine </li></ul><ul><li>Cinnamon Leaf Lavender </li></ul><ul><li>Clary Lilac </li></ul><ul><li>Clove Myrrh </li></ul><ul><li>Eucalyptus Neroli </li></ul><ul><li>Frankincense Orange </li></ul><ul><li>Patchouli </li></ul><ul><li>Peppermint </li></ul><ul><li>Primrose </li></ul><ul><li>Rose </li></ul><ul><li>Rose geranium </li></ul><ul><li>Rosemary </li></ul><ul><li>Rosewood </li></ul><ul><li>Sage </li></ul><ul><li>Sandalwood </li></ul><ul><li>Spearmint </li></ul><ul><li>Tangerine </li></ul><ul><li>Tea tree </li></ul><ul><li>Ylang-ylang </li></ul>
  4. 4. About Soy Candles <ul><li>Soy wax, a hydrogenated soybean oil that is used as renewable and biodegradable alternative to paraffin wax in candle-making, was investigated for its tendency of producing soot and potentially harmful organic volatiles (e.g. acrolein, formaldehyde and acetaldehyde) during candle burning. While a considerable amount of soot was produced from the combustion of paraffin candles under disturbed condition (simulated air movement), little or none is observed from soy wax candles. </li></ul>
  5. 5. About Soy Candles <ul><li>- In 2004, the world's farmers produced 223 million tons of soybeans, one ton for every nine tons of grain they produced. </li></ul><ul><li>-The soybean was domesticated in central China some 5,000 years ago and made its way to the United States in 1804, when Thomas Jefferson was President. For a century and a half, the soybean was grown mostly as a curiosity crop in home gardens. </li></ul><ul><li>-This soy wax innovation is fast-becoming a new national industry. Today, soy candles manufacturers range from numerous entrepreneurs to major manufacturers </li></ul><ul><li>- It has been called a miracle crop because soybeans are used for food for people, as animal feed, and in non-food products such as our own line of soy candles!  Today’s U.S. farmers produce about 2 billion bushels a year making the US the largest producer of soybeans in the world! </li></ul>
  6. 6. Soy Wax Information <ul><li>Soy wax is very sensitive to temperature and sunlight. </li></ul><ul><li>Storage temperatures should not exceed 80 F or be below 32 F. </li></ul><ul><li>If candle does get hot enough to melt, just move to a cool, dry area and it will set back up.  </li></ul><ul><li>Extreme changes in temperate can cause discoloring of the wax. </li></ul>
  7. 7. The Benefits of Soy Candles <ul><li>Cleaner-burning than traditional candles. </li></ul><ul><li>No sooty residues. </li></ul><ul><li>Lower melting point so they burn cooler. </li></ul><ul><li>This allows their long-lasting pleasant aromas to quickly fill the air. </li></ul><ul><li>Soy is nontoxic: safe for humans & animals. </li></ul><ul><li>Stronger scents. </li></ul>
  8. 8. Benefits of Soy Candles <ul><li>Soy candles hardly affect allergies. </li></ul><ul><li>Soy candles are biodegradable. </li></ul><ul><li>Paraffin wax candles contain many of the same toxins as burning diesel fuel. </li></ul><ul><li>Soy candles can provide added value to U.S. agriculture by using more than 110 million bushels of soybeans. </li></ul>
  9. 9. Production, Price, & Cost <ul><li>Variable Costs: Increase directly in proportion to the level of sales. </li></ul><ul><li>Ex: cost of creating, shipping/delivery, materials/supplies, etc. </li></ul><ul><li>Fixed Costs: remain the same regardless of the level of sales. </li></ul><ul><li>Ex.: rent, plant/equipment expenses, business license, etc. </li></ul><ul><li>Break-even price: per unit cost of production. </li></ul><ul><li>Break-even revenue: determines amount of needed so the business neither makes nor loses money. </li></ul>
  10. 10. Production, Price, & Cost Explanation: Item & Costs <ul><li>Variable costs $ per unit </li></ul><ul><li>Soy oil (creation) $0.35 </li></ul><ul><li>Wicks (creation) $0.15 </li></ul><ul><li>Wax (creation) $0.25 </li></ul><ul><li>Jars (packaging) $0.40 </li></ul><ul><li>Lids (packaging) $0.15 </li></ul><ul><li>Tins (packaging) $0.60 </li></ul><ul><li>Labels (marketing) $0.20 </li></ul><ul><li>Boxes (shipping) $0.55 </li></ul><ul><li>Scent $0.20 </li></ul><ul><li>Total Variable Cost: Wax beads/tarts $1.50, Votive $.170, Jar $2.25, Tin $2.45 </li></ul>
  11. 11. Production, Price, & Cost <ul><li>Fixed Costs Total </li></ul><ul><li>Insurance liability insurance $1,200 </li></ul><ul><li>Advertising Promotion, Web presence, magazine ads $4,500 </li></ul><ul><li>Utilities Lights, phones, heating/cooling $2,700 </li></ul><ul><li>*Buildings Purchased bldng where candle prod. Occ. $1,500 </li></ul><ul><li>*Equipment Equipment used in production $2,400 </li></ul><ul><li>Interest Paid Interest payment of 1 st yr. Operation $2,200 </li></ul><ul><li>Total Fixed Cost $14,500 </li></ul><ul><li>*Building: based on purchase price of $15,000 w/ 10 yr. Payback period. </li></ul><ul><li>*Equipment: based on purchase price of $9,600 w/ 4 yr. Payback period. </li></ul><ul><li>*Most soy candles start above $10.00 </li></ul>
  12. 12. Production, Price, & Cost <ul><li>Break-even revenues based around selling prices </li></ul><ul><li>(fixed costs divided by projected Selling cost minus the variable cost/unit) </li></ul><ul><li>Projected selling cost: </li></ul><ul><li>Wax Beads/Tarts: $3.50 Votive: $2.98 Jar $6.75 Tin 7.50 </li></ul><ul><li>Variable cost/unit: </li></ul><ul><li>Wax beads/Tarts: $1.55 Votive: $1.70 Jar: $2.25 Tin: $2.45 </li></ul><ul><li>Total Fixed Cost </li></ul><ul><li>$14,500 $14,500 $14,500 $14,500 </li></ul><ul><li>Break-even units: </li></ul><ul><li>Wax Beads/Tarts: 7,435 Votive: 11,600 :Jar: 3,222 Tin: 2,959 </li></ul>
  13. 13. Shipping Great Britain & Northern Ireland <ul><li>Weight not over (in lbs.) Not allowed over 66lbs. </li></ul><ul><li>(not above given weight) Air Mail </li></ul><ul><li>-1lbs.= $16.00 </li></ul><ul><li>-2lbs.= $20.00 </li></ul><ul><li>-3lbs.=$24.00 </li></ul><ul><li>-5lbs. =$32.00 </li></ul><ul><li>-6lbs.= $35.00 </li></ul><ul><li>-7lbs.= $38.00 </li></ul><ul><li>-8lbs.=$41.00 </li></ul><ul><li>-9lbs.=$44.00 </li></ul><ul><li>-10lbs.= $47.00 </li></ul><ul><li>-11lbs.=$ 50.00 </li></ul><ul><li>-12lbs.=$53.00 </li></ul><ul><li>-13lbs.=$56.00 </li></ul><ul><li>-14lbs.=$59.00 </li></ul><ul><li>-15lbs.=$62.00 </li></ul><ul><li>(United States Postal Service) </li></ul><ul><li>Economy Mail (Book & Sheet Music) could probably be used sometimes. </li></ul><ul><li>The max is 4lbs. With rates from $2.65 to $7.80. </li></ul>
  14. 14. Promotion & Advertising: Our Approach <ul><li>-The scented candles market has seen a lot of cross-category encroachment, as fashion designers, perfume manufacturers, and specialty chain marketers introduce their own lines of candles. For example, upscale retailers. </li></ul><ul><li>-Internet marketing: </li></ul><ul><li>-A well done website: makes a company look like a successful one, cheaper: cuts middleman and advertising costs. </li></ul><ul><li>-Can place banner ads on other websites. </li></ul>
  15. 15. Promotion & Advertising: Our Approach <ul><li>Catalogue: </li></ul><ul><li>-Cause word of mouth, cheaper: gets passed around to many </li></ul><ul><li>people at work, home, doctor offices. </li></ul><ul><li>  </li></ul><ul><li>Magazine: </li></ul><ul><li>-Reaches potential of thousands of readers. </li></ul><ul><li>-Wide range of magazines to choose from (fashion, home, craft, etc.). </li></ul><ul><li>  </li></ul><ul><li>Trade Shows: </li></ul><ul><li>-Popular in most industries. </li></ul><ul><li>-Wide range of customers (businesses, travelers, locals, etc.). </li></ul><ul><li>-Allows sample opportunities. </li></ul><ul><li>Radio & Newspaper: </li></ul><ul><li>-Ads may be geared toward holidays & special events. </li></ul><ul><li>-Can target a certain area or group (large or small). </li></ul>
  16. 16. Marketing to U.S. Home Base & England <ul><li>Direct Supply / Direct Sale </li></ul><ul><li>-Selling directly to your customer; retailing, door-to-door, mail order and ecommerce all directly sell to customers. </li></ul><ul><li>-Direct contact will your customers, easily detect the subtle changes occurring and adapt to the changes; i.e. demand for price changes, overall demand for products. </li></ul><ul><li>-Complete control over product range, how it is sold and at </li></ul><ul><li>what price. </li></ul><ul><li>  </li></ul><ul><li>Direct to retailer </li></ul><ul><li>-Saves company a lot of money setting up a variety of retails </li></ul><ul><li>outlets to covers areas regionally or nationally. </li></ul>
  17. 17. Marketing to U.S. Home Base & England Advantages & Disadvantages <ul><li>Wholesaler, merchant or agent supplier </li></ul><ul><li>May loose some company identity. </li></ul><ul><li>Supplier may request product be sold under the merchant/wholesaler brand name. </li></ul><ul><li>Loose contact with end consumer, unable to gauge/identify subtle changes occurring as quickly as if directly supplying them. </li></ul><ul><li>Takes off an enormous amount of pressure of distribution, as this will be done for you. </li></ul><ul><li>Also reduces level of storage space necessary to hold stock. selling to larger organization means more reliable income of capital, more stable business. </li></ul>
  18. 18. Marketing In England <ul><li>Use a lot of mail order and TV infomercial selling. </li></ul><ul><li>Stable no high political risk, stable currency. </li></ul><ul><li>High since of individualism (Our custom orders will fill this). </li></ul><ul><li>Low-context culture. The details any terms of sale, contracts, etc. are important. </li></ul><ul><li>Numbers need to be written out and firm (done through catalogue and Internet sales). </li></ul>
  19. 19. Consumer Information <ul><li>The National Candle Ass. states that the US candle consumer retail sales for 1999 are reported at $2.3 billion, not including candle accessories.   </li></ul><ul><li>The Packaged Facts report claims that the growth of scented candles alone is close to 22 percent per year.   </li></ul><ul><li>Estimates scented candles represent 55 percent of the $2.4 billion total home fragrance market, or $1.3 billion in scented candle sales.   </li></ul><ul><li>Candles are purchased for utilitarian, religious, or other institutional purposes, but the majority of candles, particularly scented candles, are purchased for non-utilitarian home use.   </li></ul><ul><li>70 percent of households purchase candles. </li></ul><ul><li>96 percent of all candles purchased are bought by women. </li></ul>
  20. 20. References <ul><li>Aroma Haven & Rustic Essentials (2001). Wick Pins photo. Retrieved February 23, </li></ul><ul><li>2005, from </li></ul><ul><li>Angel Scented Candles (No Date). Soy Facts. Retrieved February 24, 2005, from </li></ul><ul><li>  </li></ul><ul><li>Ask Yahoo! (2003) . Are soy candles really better than wax candles? Retrieved </li></ul><ul><li>February 24, 2005, from </li></ul><ul><li>Brown, L. (2004). Soybeans: The New King of the Crop? Retrieved </li></ul><ul><li>February 16, 2005, from </li></ul><ul><li> </li></ul><ul><li>  </li></ul><ul><li>Bug Town Candle Company (2004). General Soy Wax Candle Burning Tips. Retrieved February 24, 2005, from </li></ul><ul><li>Business Bureau UK (2002) The Marketing Mix-Place. Retrieved February 21, 2005, From </li></ul><ul><li> </li></ul><ul><li>  </li></ul><ul><li>Cierra Candles (2005). Dye block, chip, and liquid photo. Retrieved February 19, 2005, from </li></ul><ul><li>  </li></ul>
  21. 21. References <ul><li>EcoLightHomepage. Available: </li></ul><ul><li>EPA Report (2000). Candle Distribution. Retrieved February 20, 2005, from </li></ul><ul><li> </li></ul><ul><li>Glenny’s Diet Center (2004). Bowl of soy photo. Retrieved February 24, 2005, from </li></ul><ul><li>Keegan, W., J., & Green, M., C. (2003). Global Marketing: Third Edition. New Jersey: Prentice Hall. </li></ul><ul><li>  </li></ul><ul><li>Iowa Soybean Promotion Board (2003) See The Light With Soy Candles. Retrieved </li></ul><ul><li>February 16, 2005, from </li></ul><ul><li>Iowa Soybean Promotion Board (2003). Made From Soybeans. Retrieved February 16, 2005, fro m </li></ul><ul><li>  </li></ul><ul><li>, Inc. Retrieved February 16, 2005, from </li></ul><ul><li>  </li></ul>
  22. 22. References <ul><li>Moonrose (2004). Woman making candle photo. Retrieved February 24, 2005, from </li></ul><ul><li> </li></ul><ul><li>Soap and Candle Maker (2005) Jars and Lid photos. Retrieved February 19, 2005, from </li></ul><ul><li> </li></ul><ul><li>USPS Postal Rates (2005). Complete International Rates Chart.Retrieved February 24, 2005, from </li></ul><ul><li> </li></ul><ul><li>University of Missouri-Columbia (2002). Break-even pricing, Revenue, and Units. </li></ul><ul><li>Retrieved February 16, 2005, from </li></ul><ul><li> Unit </li></ul><ul><li>Webcrawler (2005). Soy candle and flower photos. Retrieved February 19, 2005, from </li></ul><ul><li> </li></ul><ul><li>Webhosting (2001). Internet photo. Retrieved February 24, 2005, from </li></ul><ul><li> </li></ul><ul><li>Yahoo! (2005). Soy candle & flower photos. Retrieved February 19, 2005, from </li></ul>