KS, INC. Pink Power Marketing Plan

Devry University
Marketing BUSN319ON
Professor: Robert Everton
Kimberly Stevens
April 5, 2012

Author Note: This marketing plan was prepared for Marketing BUSN3190N, taught by Professor Robert Everton.

Table of Contents Page 1. Executive Summary……………………………………………………………………. 3 2. Background 3 3. Strategic Focus and Plan 3 Mission Statement 3 Goals 3 Competitive Advantage 4 4. Situation Analysis 4 SWOT Analysis 4 Competitor Analysis 5 Company Analysis 6 Customer Analysis 6 Industry Analysis 6 5. Market-Product Focus 6 Marketing and Product Objectives 7 Target Markets 7 Points of Difference 7 Positioning 8 6. Marketing Program 8 Product Strategy 8 Price Strategy 8 Promotion Strategy 9 Place Strategy……………………………………………………………………….. 11 7. Financial Projection…………………………..….…………………………………….. 12 8. Organization………………………..….……………………………..…………………..12 9. Bibliography………………………..….…………………………………………………13

1. Executive Summary 2. Background

KS Inc, is a sports science company that will sell and distribute Pink Power, a pre-workout supplement for women exclusively through the internet website KSInc.com, Vitamin Shoppe, and GNC, giving customers 24-hour access to purchase from the website daily. Pink Power will become a juggernaut pre-workout and will include very necessary nutrients such as: Glutamine, Micronized Taurine, Amino Acids, Glucosamine, Fish Oil, Flaxseed Oil, Geranium Stem, and Schizandrol A. KS, Inc. has made the world’s first exclusive female pre-workout supplement in the history of pre-workout market.

3. Strategic Focus and Plan

This section of our marketing plan focuses on the strategic planning of KS, Inc. Pink Power a beneficial pre-workout supplement for women athletes. There are three areas that we will discuss: mission statement, financial and nonfinancial goals, and competitive advantage.

Mission Statement KS, Inc. will produce a pre-workout supplement, Pink Power, to ensure that women athletes of all sports, will always perform to the top of their level. Pink Power will give women athletes longevity and the proper nutrients that our customers will need to stay healthy. KS, Inc. will provide helpful hints and advice to add to the already established benefits of Pink Power. We will always strive for the best in our product, and the best in our women’s athletic performances. Goals

Financial: 1. Gross Revenues of $200,000 are projected in the first two quarters and at $310,000 in the last two quarters. 2. To increase the price of Pink Power up to 10% by 3rd Quarter due to the overwhelming demand 3. By Year 2 in the 4th Quarter during the holiday season, have a promotion for a “buy one get a free”

Nonfinancial: 1. Year 5 expanding to other product lines for KS, Inc. 2. Make Pink Power available at Wal-Mart, Target, and other pharmacies 3. Team up with the Susan Komen breast cancer campaign. 4. Control 80% of the market share for female pre-workout 5. Creating a pre-workout for everyone to use, not just women.

Competitive Advantage Unlike competitors, who only have the pre-workout formula tailoring to the growth of women athletes, the leading and not the actual muscle rebuilding phase in the body, this pre-workout will be the only one designed specifically for women and will flood the market share for female consumers. In fact, most pre-workout supplements do not have the ability to create a formula designed to concentrate on muscle rebuilding. For the price and the nutrients you receive in the product, it will undoubtedly take over the market share; thus, forcing our competitors to change their formula in order to compete with our success. Also, supporting efforts to cure breast cancer will allow for cross marketing on the Susan Komen Breast Cancer fight and also KS, Inc. for Pink Power. 4. Situational Analysis The SWOT (Strength, Weakness, Opportunities, and Threats) analysis provides a creditable explanation of Pink Power and the market that it’s selling in. This is a brief analysis of the internal and external factors that will negatively and positively affect Pink Power. Strengths: * New and catchy “product” for women athletes * First women based pre-workout supplement * Sponsors the Breast Cancer Awareness
Weaknesses:
* Lack of popularity * No current cash flow and lack of funding * Untested product * No women brand loyalty established
Opportunities:
* Competitors are not preparing for this product announcement * No one offers a exclusively female product * Not a lot of competition for the price * Low cost pre-workout supplement with more servings than any other competitor at a lower price. * Possible collaboration with Optimum Nutrition or GNC
Threats:
* Labs making a better product * Unforeseen side effects on the supplements * Losing the marketing battle because lack of funds * Growing too fast and won’t be able to keep up with the demand * Shortage in supply or women not buying it * Competitors come out with a stronger formula
Competitor Analysis
Because this market is established prior to the emergence of Pink Power, every major sports nutrition company has a pre-workout supplement. Most people train with some type of energy booster whether it is natural or a supplement. They usually need a boost to get the best out of their workout. Although Pink Power has a small number of competitors, pre-workout companies such as Jack3d and NO Explode, have patented their formulas so that their main ingredients cannot be duplicated. However, there are very many substitutes that consumers can use and won’t receive the same effects of Pink Power or our competitors and especially something as exclusive for women. NO Explode, has a patented formula of creatine and sodium bicarbonate. People complain about how fast they become immune to NO Explode after taking it for a couple of months. They will most likely add more of their signature ingredients to counteract Pink Power’s ability to include other important nutrients for the body. NO Explode also has very brand loyal customers and a very good reputation from their brand extensions.
The problem with No Explode is its lack of longevity. A lot of their customers switch over to using Jack3d because of the difference in price. Pink Power is going to be priced five dollars lower than Jack3d to insure that consumers and women will try it out and love it. Thus, Pink Power has a lot more servings and is very inexpensive compared to NO Explode. Pink Power will continue counteracting by offering a buy one; get the other half off to build up the brand loyalty with Pink Power consumers.. Brand extension is clearly an option for Pink Power because of the fact that NO Explode and Jack3d have other products. Once the pre-work supplement is very successful, Pink Power will then extend their brand by making a post-workout supplement and a unisex pre-workout. Never keeping their eyes off competitors, KS Labs must pay close attention to their advertisements and counteractions against KS Labs Pink Power.

Company Analysis

Pink Power will beat this competitor for their lack of other nutrients such as Micronized Taurine, Glucosamine, Fish Oil, Flaxseed Oil, Geranium Stem, Schizandrol A, Amino Acids, and Glutamine. Pink Power fully intends to raise the price if the demand is high; however, if our competitor Jack3d improves their formula for any reason, we could add an extra 3 ounces to combat Jack3d’s effort to change their formula. Pink Power will keep their prestige by the nutrients used and by the fact there is no proprietary blend. The fact that we don’t list a proprietary blend in our formula is a marketing tool within itself. It will be the perennial women’s pre-workout drawing men to want their own or use the Pink Power in the privacy of their home before their workout. It will be the driving force for women athletes to train more intensely
Customer Analysis

Pre-workouts usually work on an individual basis and the effects and/or results will vary from person to person. So many women have problems finding a pre-workout that doesn’t make them jittery or dizzy, so they usually left with an option to take diet pills. Men and women have issues with built up immunity or tolerance to other pre-workout supplements. Arginine and Beta- Alanine are the main ingredients inside of all pre-workouts. The competitors lack performance and the longevity in a pre-workout. After two weeks of using their pre-workout, your body becomes immune and doesn’t allow you to perform at the same level as when you first started taking it. These companies use the low-end products and use a proprietary blend (which is used to hide the fact that the formula contains very little of the active ingredients listed on the bottle in an attempt to fool consumers. Pink Power has no proprietary blend in the formula, so the substitutes have to change their formula to become a competitive force against Pink Power. It is unlikely that these pre-workout solutions are potential threats because of their lack of dedication to making a product without a proprietary blend in its ingredients. Pink Power will dominate these manufacturers. Giving the longevity needed six months to years down the road. Also, giving someone who isn’t aware of the emerging problem with breast cancer to buy Pink Power and get involved in the fight for breast cancer.

Industry Analysis

The market is very attractive and open. The bodybuilding industry and collegiate sport are growing with more competition. The people need a boost to perform at their highest level of competition. With the emergence of importance in pre-workout, Pink Power looks like it will be very successful due to the different target markets. With the inexpensive cost, serving size and nut 5. Market-Product Focus
This section describes the marketing and product development Pink Power and also provides information concerning the marketing and product objectives, market-product grid, target markets, points of difference, and positioning of Pink Power.

Marketing and Product Objectives Pink Power marketing aim is to appeal to women who want a pre-workout of their own that has more nutritional value than the other pre-workouts and that is tailored towards women’s health and success in their physical activities. In order to achieve this, Pink Power must have a strong presence in the advertising at figure and bodybuilding competitions. Thus, having more opportunities to reach other women athletes and having men who participate in physical activities, want to sneak and try Pink Power secretly. The primary objective of Pink Power is to market our product as a necessity for women and something that they will be strongly behind 100%. The breast cancer society and its strong following will try the product due to its name and its contributions to the fight for breast cancer. This will also allow men with relatives with breast cancer to be able to buy a canister to support the breast cancer awareness cause and contribute without the embarrassment of using a female pre-workout supplement. The primary objective of Pink Power is expansion, making pre-workouts, creatine, amino acids, protein, and vitamins. Having our customers become brand loyal will enable a strong and dedicated female base, then having other products available, will enable the men to feel secure buying the other various nutritional supplements we will offer. Therefore, Pink Power will be the first product towards domination of the supplement industry market share. Pink Power will be a very high demand pre-workout supplement. The breast cancer awareness philanthropy will also enable for breast cancer marathons are charities to solely market Pink Power free of charge and will cause a strong female fan base. If the demand is high, Pink Power has a very good chance of expanding to the international markets.

Target Market

The target market consists of women who are training or competing at a very high level. This allows us to have three sub markets within our target market. The first group is high school, collegiate, and professional women athletes from 18-49. They are more than half of the total target market because they are going to use this product to over-achieve their goals in the gym by training intense. The second sub-market is the women between the ages of 18-49 doing figure competitions and fitness. This is the small number of professional figure competition women athletes who are competing at the top level and also the women who exercise regularly. The final sub-market is the women athletes playing sports such as, football, basketball, hockey, and other collegiate sports. They comprise a small portion of the market.
Last, Pink Power will provide our consumers with all the nutrients they need throughout their workouts or sports to ensure they overachieve. The target market that KS, Inc. could possibly appeal to it’s common working women in the United Stated who work extremely long hours or third shift hours, and/or do physical labor. These groups of women sometimes need athletic supplements to keep them awake because they have become immune to energy drinks such as five-hour energy. They also have a need for Pink Power to maintain the level of output they need everyday at their job. Points of Difference
There are pre-workouts: •It’s the first and only exclusive pre-workout designed for women athletes and bodybuilders. •First ever pre-workout with ingredients like Glucosamine, Fish Oil, Flaxseed Oil, Geranium Stem, and Schizandrol A •The lowest price for servings ratio •Only pre-workout that sponsors Susan Koman for cure breast cancer awareness •The only company to actively participate and donate proceeds towards breast cancer awareness •The formula in the pre-workout is long lasting, and customers don’t get immunity. Positioning
Very imperative for Pink Power to be sold in the following places: GNC, Vitamin Shoppe, and at breast cancer awareness events. Giving samples at the marathons and athletic events will enable for the runners and athletes to try the supplement. Also, keeping supplements samples at GNC. Vitamin Shoppe. Last, distribute at bodybuilding competitions such as Arnold Classic, Mr. Olympia, and other various bodybuilding competitions and figure competitions 6. Marketing Program Product Strategy
The product line of Pink Power is very simple and beneficial. The following benefits are available in the container: •High quality pre-workout and no proprietary blend •Pre-workout designed for women’s training and needs. •Adequate servings for daily training and over a month amount of use. •Formula that includes natural joint and ligament strengtheners and all the amino acids needed for the body. •Does not build pre-workout immunity leaving intense workouts and not having to use more to have more energy Pink Power uses a patent formula that allows for our consumers not having to buy a Glucosamine, Fish Oil, Flaxseed Oil, or Taurine. These ingredients are not involved in any of our competitor’s formula. It provides a long lasting pump for our athletes to achieve their goals and exceed expectations during their training goals. Price Strategy
KS, Inc. will price its Pink Power to ensure a large profit margin and high volumes of sales as well as our distributors. Pink Power will be priced at $39.99 at our retail stores such as GNC and Vitamin Shoppe. There is only one size that Pink Power will be packaged in. The packaging and label for Pink Power will cost $1.09 a canister. That includes the canister, label, and the 6-gram plastic scoop. Also included inside of the canister will be a brochure of the upcoming year’s bodybuilding,figure competitions, and breast cancer awareness sporting events. The price of the brochure will be $.11 and the price of the ingredients will cost $6.80. Thus, the actual cost of the canister represents 20% of the retail price of $39.99. Depending on sales volume, the remaining 80% will be split appropriately among operational cost, advertising costs, and profit. The distributors will be paying for the taxes and shipping to their stores.
The internet site will price Pink Power at $35.99. The site will be called KSInc.com. It will have the same expenses as the wholesaling to our distributors except an internet expense will need to be covered in order to pay for the website. The price of the internet cost will be $2.00 per canister. The total amount of expenses with the addition of the internet expense will be $10.00. Also, the actual KSInc.com website price represents 28% of the cost of producing Pink Power. In addition, the remaining 72% will be used to pay for the internet cost, website maintenance, operational cost, advertising cost, and profit. Shipping cost and state taxes will be added to every order depending on each customers’ destination and shipping preferences. This will also allow customers who buy directly from the site to receive coupons for their future purchases. However, customers who make an account on the website and subscribe to the e-mail newsletter will be the only people to receive future discounts.
The prices of other high-end pre-workouts are between $29.99 to $90.00 with less servings and ingredients. Pink Power will sit towards the inexpensive high-end of pre-workouts. Other pre-workout products are $49.99, however, the only pre-workout product that costs less than Pink Power is Jack3d.
The promotional cost of Pink Power will be considered on a per canister basis for three reasons. First, our channels of distribution fund the promotional cost on Pink Power. Secondly, if any additional promotional costs occur they will be covered by either the reciprocal agreements with suppliers and distributors or are covered in the variable cost. Lastly, the Pink Power brand and website listed on the suppliers websites are also covered through reciprocal listings. The cost of the Mr. Olympia and Arnold Classic magazine advertisements and the company website are all fixed costs inside the budget. In summary, prices for Pink Power will be more inexpensive than all of the major high-end competitors (except Jack3d), due to their success in the industry and combat their quality and durability. The penetration pricing approach will be used to steal these high-end competitors’ customers and to get them to try Pink Power. With a quality product and money back guarantee, Pink Power will attract more brand loyal customers. This will also fill the void for consumers that need high-end pre-workout supplements at a very affordable price that will also have more servings than competitors as well. The penetration pricing strategy will be reviewed quarterly; it will be changed in regards to sales volumes, profits, competition, and unforeseen events that may occur.

Promotion Strategy

The Promotion strategy that will be used for Pink Power will be the “push and pull” strategy. It will be tailored towards KS, Inc.’s mission statement. This strategy will allow Pink Power to infiltrate the market in different ways other than the usual lone advertising strategy. KS Inc, will produce and distribute a fitness pre-workout supplement that appeals to women athletes, body builders, professional athletes, and various other sports athletes Pink Power is made with the following normal ingredients Arginine, Alpha- Ketoglutarate, Creatine Monohydrate, Beta Alanine, Caffeine, and 3-Dimethylamylamine What separates Pink Power from the other high-end pre-workout supplements is the additional ingredients such as, Taurine, Glucosamine, Fish Oil, Flaxseed Oil, Geranium Stem, Schizandrol A, Amino Acids, and Glutamine.
The message is very clear that Pink Power gives the women athletes more than what the competitors have to offer in one canister. Pink Power will advertise in health magazines to ensure that their message gets spread to everyone involved in health and fitness. Informing consumers about Pink Power’s significantly low price in comparison to its competitors and the money back guarantee will increase the volume of direct sales from the website, GNC, Vitamin Shoppe, and future channels of distribution.
KS, Inc. will maintain a strong presence at the Arnold Classic by designing a very catchy logo and having our employees pass out free sample and gifts to the patrons at the Classic in 2011. Therefore, the $10,000 expense will be for becoming a national sponsor at the Arnold Classic. It will expose Pink Power “to over 175,000 attendees of the Arnold Sports Festival” (Arnold Sports Festival, 2011). Pink Power will be “exposed to 35 national and regional publications” and will also be provided with four booths to sell, promote, market and give prizes away to the patrons (Arnold Sports Festival, 2011). Last, Pink Power will be making a statement to the top bodybuilders and athletes in the world and “have a full page ad in the souvenir program” (Arnold Sports Festival).
The statement that we want to make to women professional athletes is: Are you sick of a pre-workout that only last for one to two weeks? The first step to building muscle is having an excellent workout desire and Pink Power will awaken the need inside of your body. Pink Power will give you longevity to make your workouts more intense and make you train like never before. To become “Powerful” you use Pink Power. Change for the better and your workout will also be better if you use Pink Power. Don’t settle for proprietary blends that will not allow you to become a champion. Start by understanding that your pre-workouts need more than arginine and beta alanine; Pink Power has glutamine, BCAA and glucosamine. We want the best for your body, do you? Buy Pink Power.
The statement that we want to make to women athletes is: The dream of having “power” is in your future. You have bought your creatine, whey protein, and now you need a pre-workout that’s going to make you achieve unprecedented amounts of success in your sport. What is going to drive a novice athlete to train hard every day even when she is tired? The bottom line is, it’s time to get “powered” with Pink Power. Having Pink Power completes the nutrition you need by also having other various nutrients needed to start your endeavor in your sport. You want to be a champion? Buy Pink Power.
These statements are intended to be a descriptive tone of communications for Women’s Health magazines. Monthly advertisements of 1/3 of a colored page will be used. GNC and Vitamin Shoppe will have specific messages they will tailor towards their magazines articles because they are responsible for the cost of the advertisement.
KSInc.com will be segmented toward brand loyal customers so that it can guide them to the right information that they need. It will give consumers the ability to see the background, biography, and mission statement of the company. Last, it will give any investors or business people the opportunity to see what Pink Power is all about.
Promotion Budget

Brand and Logo Development $ 1,200.00
Website Development for Internet site 600.00
Logo and Ad Design 5,000.00
Women’s Health Magazine (monthly $7K) 80,000.00
Flex Magazine (monthly $5.K) 60,000.00
Miscellaneous Advertising 5,000.00
Public Relations 3,000.00
Arnold Classic 2011 Expense 10,000.00
Free Samples and Gifts Expense 2,000.00
Mailing Coupons 1,500.00
Mailing product information and samples 1,200.00
Total Promotion Budget $169,500.0

Operational Notes: Place Strategy
Pink Power is a well-balanced company. Selling Pink Power at GNC, Vitamin Shoppe, and KSInc.com will allow for a very strong presence. In addition to KSInc.com, GNC and Vitamin Shoppe will also provide Pink Power through their company sites and as well as the magazines that they give to their customers when they make purchases in the stores.
By setting the standard in the nutritional supplement industry, GNC (General Nutrition Center), demands “truth in labeling, ingredient safety and product potency, all while remaining on the cutting-edge of nutritional science” (GNC ). GNC is the world's largest company of health products “devoted exclusively to helping its customers improve the quality of their lives” (GNC ). GNC will have a storefront as well as an extremely excellent website to sell to their customers. Consumers can buy Pink Power at the store websites or they can go the storefronts. Thus, the stores are basically warehouses and shipping facilities with options to buy products from the storefronts or online. GNC will be responsible for all shipping costs.
Vitamin Shoppe opened up their first store in 1997 and eventually expanded into more than 400 locations in 37 states (Vitamin Shoppe). They also have a user-friendly website, vitaminshoppe.com. Vitamin Shoppe is not only fast-growing in the number of stores, “but also in the ability to inform and educate customers” (Vitamin Shoppe). It also has one of the best internet customer service ratings in their industry. Besides the fact of having excellent customer service, they also have a storefront presence usually in close proximity of GNC. Vitamin Shoppe is also a “strong supporter of health and wellness campaigns including, ‘Life Supplemented’ sponsored by the Council for Responsible Nutrition”( Vitamin Shoppe ). Vitamin Shoppe will also offer all the flavors available for Pink Power. The employees’ in-depth knowledge about fitness products will help drive the sales volume of Pink Power very high. Vitamin Shoppe offers a “Healthy Rewards Club” for its customers. (When customers use their reward cards, coupons are sent to them for future purchases if they spend a certain amount of money in the store).
KSInc.com will be an organized internet site. Through the company website, customers who want the best price for Pink Power will be able to get the cheapest price for it (along with paying for shipping cost). We will send out e-mail newsletters about events such as the Arnold Classic and other various bodybuilding competitions in the U.S. and state that KS, Inc. will be passing out free samples of Pink Power. In addition to free samples, KS, Inc. will sell directly to the customers. In the event that a customer does not want to shop at GNC or Vitamin Shoppe, the website will contain all that he/she would need to know about Pink Power. KS, Inc. will assist our distributors in any manner to drive sales that are necessary. However, KSInc.com is the most important and most efficient place to purchase Pink Power from. KS, Inc.’s website will promote dedication, commitment, and passion for Pink Power and its customers. The main ingredient to success is the company website KSInc.com. 7. Financial Projections

In order to calculate a break-even amount, we calculated the price of canister, the label, and the plastic 6 gram scoop inside of the canister. Pink Power is retailed price at $39.99 The fixed costs for Pink Power are $167,500 per year, which include loan payments, equipment costs, and selling and administrative costs. The unit variable cost is $6.80. This includes production costs per canister, advertising cost per canister and other miscellaneous costs. Using the following formula, we calculated the break-even point for Pink Power:

BEP = [FC ÷ (P – UVC)]

BEPQuantity = [$167,500 ÷ ($39.99 – $6.80] = 5047 canisters

BEPRevenue = 5047 canisters × $39.99/canister = $201,817.56

The figure that was calculated was the number of canisters that are needed to break-even. In order to determine the dollar amount, we multiplied this figure by the cost start to finish per canister, $6.80. Pink Power needs to sell 5047 canisters to break-even in its first year of business, and have $201,817.56 in revenues as well. 8. Organization
Pink Power is an internet supplement company. It will begin it’s quest by having KSINC.com to order Pink Power directly from the website itself. Also, Pink Power will be an active for in the awareness of breast cancer attending and promoting breast awareness events, bodybuilding events, and women sporting events. Pink Power will also be distributed at Vitamin Shoppe and GNC inside their stores all over the mainland and the two separated states of America. GNC.com and VitaminShopper.com will distributor on behalf of the stores of GNC and Vitamin Shoppe as well.

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