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Establishment of a Distribution Network for Aqua Organic Cosmetics ESTABLISHMENT OF A DISTRIBUTION NETWORK FOR AQUA ORGANIC COSMETICS Simona Gumpert Project submitted as partial requirement for the conferral of Master in Marketing (B55) Supervisor: Prof. Ana Brochado, ISCTE Business School September 2016 Simona Gumpert stablishmentof distributiona Networkfor Aqua Organiccosmetics E Distribution Network for Aqua Organic Acknowledgements & Quotes First I like to thank my mother for being my role model, inspiring me and helping me wherever she can. She is the most valuable person that never stopped believing in my skills and me. Her unconditional love and support was the best motivator and made this project possible. I offer my most special thanks to my supervisor, Professor Ana Brochado. Without your support, the outcome of this thesis would not be achievable. Therefore, I emphasise my sincere appreciation for your guidance and great advice over the past months. Thus, I like to thank you for your availability to supervise my thesis and sympathy as well as patience with all my questions. Further, I want to thank Aqua Organic for the great assistance developing this thesis. Dr. Lars-Peter Kuhr and Bernd Schmidt are both inspirational and visionary. Their exceptional values towards the love of animals, the environment and healthy lifestyle is what defined my motivation for this thesis. Last but not least, I like to record many thanks to all my friends being by my side, motivating me and making me happy. All of you influenced the elaboration of this thesis in a direct or indirect way and helped me conclude the work with great encouragement. II Distribution Network for Aqua Organic Index Chapter 1. Definition of the Problem Context ....................................................................... 1 Chapter 2. Literature Review .................................................................................................. 4 2.1 Marketing Framework ................................................................................................... 4 2.1.1 Definition .................................................................................................................. 4 2.1.2 Operative Marketing .................................................................................................. 5 2.1.3 Marketing Mix ........................................................................................................... 5 2.2 Distribution Framework ................................................................................................ 7 2.2.1 Definition .................................................................................................................. 7 2.2.2 Potential intermediaries ............................................................................................. 8 2.2.3 Corporate marketing channels ................................................................................... 9 2.3 Business-to-Business Marketing ................................................................................. 12 2.3.1 Definition ................................................................................................................ 12 2.3.2 Business-to-Business communication ..................................................................... 13 2.4 Organic cosmetic industry ........................................................................................... 19 2.4.1 Definition ................................................................................................................ 19 2.4.2 Evolution of the marketplace .................................................................................. 20 2.4.3 Distribution of green skincare ................................................................................. 20 2.4.4 Sustainable Marketing Communication .................................................................. 22 Chapter 3. Conceptual Framework ...................................................................................... 24 Chapter 4. Methodology ........................................................................................................ 24 4.1 Data Collection & Analysing Techniques .................................................................. 25 4.1.1 Primary Data ............................................................................................................ 25 4.1.2 Secondary Data ........................................................................................................ 28 4.2 Results ........................................................................................................................... 29 4.2.1 Primary Data ............................................................................................................ 29 III Distribution Network for Aqua Organic 4.2.2 Secondary data ........................................................................................................ 44 Chapter 5. Distribution and Communication Plan ............................................................. 52 5.1 Diagnostic ...................................................................................................................... 52 5.1.1 Internal Analysis - Organisation Analysis ............................................................... 52 5.1.2 Internal Analysis - Portfolio Analysis ..................................................................... 53 5.1.3 External Analysis – PESTEL .................................................................................. 54 5.1.4 External Analysis - Competition Analysis .............................................................. 58 5.2 Segmentation, Targeting and Positioning .................................................................. 61 5.2.1 Segmentation ........................................................................................................... 62 5.2.2 Targeting ................................................................................................................. 63 5.2.3 Positioning ............................................................................................................... 64 5.3 Distribution and Communication Plan ...................................................................... 65 5.3.1 Distribution Plan ..................................................................................................... 65 5.3.2 Communication Plan ............................................................................................... 71 Chapter 6. Conclusions .......................................................................................................... 83 6.1 Conclusions ................................................................................................................... 83 6.2 Project Contribution .................................................................................................... 86 6.3 Project Limitations ....................................................................................................... 87 6.4 Suggestions for future research projects .................................................................... 87 Bibliography ........................................................................................................................... 89 Appendices .............................................................................................................................. 94 IV Distribution Network for Aqua Organic Figure Index Figure 1. Innovative Packaging Zen and Naked ........................................................................ 6 Figure 2. Intensive mulichannel distribution structure ............................................................ 11 Figure 3. Selective multichannel distribution structure ........................................................... 12 Figure 4. Natural Vs. Campaign Buttermilk Lotion ................................................................. 23 Figure 5. Aveda Cap Collection Guide .................................................................................... 23 Figure 6. Conceptual framework overview .............................................................................. 24 Figure 7. German product claims on beauty and personal care products, Statista ................ 50 Figure 8. German E-Commerce market share of shopping categories ................................... 51 Figure 9. German buyers of private labels vs. brands ............................................................. 51 Figure 10. Aqua Organic Travel Set ........................................................................................ 54 Figure 11. Aqua Organic Brand Positioning Triangle ............................................................ 64 Figure 12. Example of an excel sheet for sales preparation .................................................... 67 Figure 13. Example of a sales force training in PowerPoint ................................................... 67 Figure 14. Example of a sales force motivation certificate ..................................................... 68 Figure 15. Example of the sales process of Aqua Organic ...................................................... 68 Figure 16. Aqua Organic’s multichannel distribution ............................................................. 69 Figure 17. Example of visualizing recyclable jars ................................................................... 69 Figure 18. Examples of B2B flyers ..........................................................................................
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