SUSTAINABLE MARKETING REPORT

By Andrea Busiko (13011104), Taylor Marsh (12468818), Patrizia Coric (12862457),

Paige Morris (12823810), & Tamarah Benson (12681976)

BX2184-TSV-INT Sustainable Marketing Management

Lecturer - Dr Breda McCarthy

James Cook University - School of Business

Due - 16/10/2015
Contents
Executive Summary ............................................................................................................................. 3
1. Introduction ....................................................................................................................................... 5
2. Marketing Mix ................................................................................................................................... 5
2.1 Product ........................................................................................................................ 7
2.2 Price ............................................................................................................................ 9
2.3 Place/Distribution......................................................................................................... 9
2.4 Promotion/Marketing Communications: ..................................................................... 10
3. PESTLE Analysis ........................................................................................................................... 11
3.1 Political-legal ............................................................................................................. 11
3.2 Economic................................................................................................................... 13
3.3 Socio-cultural............................................................................................................. 14
3.4 Technological ............................................................................................................ 14
3.5 Ecological .................................................................................................................. 15
4. Market Audit.................................................................................................................................... 16
5. Competition and SWOT Analysis ................................................................................................ 17
5.1 Competitor Analysis ................................................................................................... 17
6. Market Segmentation and Description of the Target Market .................................................. 21
6.1 Demographic ............................................................................................................. 21
6.2 Geographic ................................................................................................................ 22
6.3 Psychographic ........................................................................................................... 22
6.4 Behavioural ............................................................................................................... 23
7. Customer Audit............................................................................................................................... 24
8. Objectives ....................................................................................................................................... 26
9. Financials ........................................................................................................................................ 27
10. Implementation, metrics and control......................................................................................... 28
10.1 Implementation ........................................................................................................ 28
10.2 Metrics ..................................................................................................................... 31
10.3 Control ..................................................................................................................... 32
11. Conclusion .................................................................................................................................... 32
References .......................................................................................................................................... 34

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Executive Summary

The purpose of this report was to conduct a sustainability analysis on the Australian
natural cosmetics brand Sukin. Through the use of a marketing mix analysis, utilising
three sustainability frameworks (Triple Bottom Line, Natural Capitalism and The
Natural Step Framework) Sukin was found to be fairly sustainable with major efforts
in negating its carbon emissions through its carbon neutral certification, online based
promotional activities, low economically friendly pricing, environmentally friendly and
socially responsible products. Sukin distribution and choice of suppliers/retailers
were not as highly sustainable with possibly excessive fossil fuel use through
transportation and retailers. A PESTLE analysis found that Sukin complied with legal
and moral requirements with good Corporate Social Responsibility. An increase in
sustainable awareness highlighted an opportunity for the brand and recognition of
good understanding within the ecological and technological environments has helped
Sukin further their brand successfully and sustainably.
The brand and products were found to appeal predominantly to female
consumers within the green market, and represented a strong target market as they
are considered to have greater influence over regular low involvement purchase
decisions for their household. The target market was found to be split into three
segments: young, typically single females aged 15-24; mothers aged 24-44; and
women 45 and over. A market audit found increased media attention and awareness
of environmental issues has led to a preference for green, eco-friendly products
among these consumers.
With this information, objectives were set for the company. Marketing objectives
included to increase brand awareness through a 12 month media campaign, utilise
social media channels, and successfully maintain a strategic alliance with Bianca
Cheah as brand ambassador. The main financial objective was set to increase
market share over the next five years by 11% by following through with marketing
objectives. Finally the societal objective was set to improve efforts to educate
consumers by reinforcing Sukin’s company culture and deeply-held values of
sustainability, with a media campaign recommended to be implemented whereby
consumers will be educated on sustainable practices they can adopt.
These are to be implemented over the 13 months, with a breakdown of
estimated finances and a timeframe contained within the report. A variety of metrics

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for each objective will be used to measure and evaluate the program, such as social
media followers, sales and profits and new and existing membership numbers.
Control measures have been put in place to ensure success, through the use of
contingency plans regarding natural disasters, shifts in external environments, PR
disasters and poor implementation.
Limitations for this report were found when analysising Sukin’s sustainability
with limited access to internal information on Sukin and its suppliers.

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1. Introduction
The following report aims to outline a marketing plan for Sukin to improve its
business sustainability, in the form of a social media marketing campaign to educate
consumers and change their behaviour in terms of product consumption. As an
Australian natural skincare range, Sukin strives to deliver high quality, affordable,
and effective natural skin and hair care that consumers trust to meet their needs
while remaining environmentally, economically and socially sustainable (Sukin,
2015). Using data sourced from a variety of textbooks, websites, articles and statistic
reports, internal and external situation analysis, market segmentation and
promotional evaluation have been undertaken to provide an insight into the business
and its current environment to remain proactive and adaptive to change within the
market. Given rising concerns regarding consequences of unsustainable business
and consumption practices have on the environment and our society, demand has
increased for accountability and therefore environmental education and awareness
has produced a growth in supply of organic and natural brands (Carey, 2004; Korink,
2013). Furthermore, objectives were developed surrounding projected increase in
awareness, engagement and revenue, while implementation and control measures
for the recommended campaign are provided to ensure organisational strategy
aligns with Sukin’s mission, values and culture.

2. Marketing Mix
To analyse, evaluate and make recommendations for a business in terms of
sustainable improvement, the concept of sustainability must be fully understood. The
World Commission on Environment and Development’s Brundtland Report defines
sustainable development as “development that meets the needs of the present
without compromising the ability of future generations to meet their own needs”
(Martin & Schouten, 2012, p. 28). The report is widely regarded to be the first
definition, philosophy and vision of sustainability with The World Commission calling
for governments and industries to show more environmental and social responsibility
(Martin & Schouten, 2012). In terms of incentives, sustainable marketing can
differentiate a business, give them a competitive advantage in the market,
encourage innovation and development and lower operating costs. While there are a
number of frameworks available, all theories present important information and

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considerations which businesses should use to develop sustainable and responsible
practices in everyday production.
This section of the report will analyse Sukin’s current sustainability efforts
through the application of the marketing mix. The marketing mix consists of four
controllable elements used to market a product fitted to the needs of the consumer
(Quester, Pettigrew, Kopanidis, Rao Hill & Hawkins, 2014). These four elements are:
product, price, place and promotion. To analyse the level of sustainability and
determine the successfulness of Sukin’s current sustainability efforts the marketing
mix will be looked at through a number of sustainability frameworks.

Triple Bottom Line:

Martin and Schouten (2012) discuss sustainability within the three dimensions of
environmental, social and economic, known as the Triple Bottom Line, coined by
entrepreneur John Elkington. This framework encourages businesses to maintain
competitive advantages in each of the three pillars by looking at specific measurable
points of references. For example: sales and profits can be used to indicate
economic activity; energy usage and waste production for environmental impacts;
and labour practices and product safety for social performance.

Natural Capitalism:
Martin and Schouten (2012) recognise Natural Capitalism as the act of a business
recognising and valuing four sources of capital; financial (cash and investment),
manufactured (infrastructure and technology), natural (natural resources and
ecosystems services) and human (labour, talent, intelligence and creativity), with
“particular emphasis on building natural and human capital” (pp 300). To adapt and
maintain the focus on these four capitals, four interlinking principles are emphasised:
1. Radical resource productivity: using limited or irreplaceable resources
effectively and wisely (resulting in slower depletion of natural resources, less
pollution and greater employment)
2. Biomimicry: Industrial processes mimicking biological models where nothing is
wasted, and all waste products have a new use (i.e. food waste being turned
into fuel).

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 3. Service economies: Reducing waste by meeting consumers’ needs with a
multi-use service (i.e. a video store loaning one movie to multiple consumers
creates less need for production and, therefore less waste).
4. Reinvestment: using dividends and profits to buy additional productive capital
(i.e. using profits to invest in local education programs, which in turn offer the
business more local potential staff) (Martin and Schouten, 2012)

The Natural Step Framework:

Alternatively, The Natural Step Framework (TNSF) provides a set of four principles to
guide businesses towards implementing sustainable measures in everyday
operations. A sustainable society, organisation, or business is one that satisfies each
of these system conditions:
1. Causes no systematic increases in environmental concentrations of
substances from the Earth’s crust
2. Causes no systematic increases in environmental concentration of synthetic
substances
3. Causes no systematic increases in ecosystem degradation, and
4. Causes no systematic barriers to people meeting their own needs (The
Natural Step, 2015).

2.1 Product
Sukin’s focus is on face and body cleansers, moisturisers, masks, and scrubs,
as well as hair shampoos and conditioners. The products fall within the Australian
organic cosmetics industry and of the nine human well-being fundamental conditions
identified by Max-Neef (Martin and Schouten, 2012), Sukin’s products were identified
as meeting three; creation (self-expression), identity (sense of self), and freedom
(access to choice). These products serve the consumers core level need for
maintaining hygiene.
The products are created with “active botanicals and natural oils” (Sukin,
2009) free from harsh chemicals, detergents, synthetic fragrances or animal derived
products. The products have in-depth ingredient listing on the Sukin website and
there is a section of the website dedicated to explaining every ingredient. This helps
Sukin with transparency and can help to increase consumer trust, however, there is
no information available on where these ingredients are sourced. This makes it hard
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to evaluate the products and their formulations through a sustainability perspective
as it is not known where the ingredients are grown, or how sustainably focused the
suppliers are. Without this information it must be highlighted that some ingredients
may not be sourced locally from Australia and therefore must be shipped from
greater distances to be delivered to Sukin’s manufacturing plants. Consequently, this
may not align with the Natural Capitalism principal of radical resource productivity,
due to possible unnecessary fossil fuel consumption used during transportation.
Many of the ingredients are certified organic, biodegradable and grey water
safe which is environmentally beneficial with the elimination of synthetic substances
which natural systems struggle to adequately break down (Martin and Schouten,
2012) and satisfies system conditions 2 and 3 of TNSF. Additionally, the products
are vegan friendly with no animal by-products or animal testing, which is not only
environmentally beneficial, but also socially praised by the ‘green activists’ consumer
market (Finisterra do Paço, Barata Raposo & Filho, 2009). The products are
packaged in almost 100% recyclable PET plastic bottles, LDPE tubes (a recyclable
product that can be re-processed many times), glass containers, and recyclable
metal springs within the pump lids (Sukin, 2015). Only the sticker labelling and
polypropylene pump lids are un-recyclable. While Sukin utilises a more sustainable
choice to use recyclable packaging, there is a heavy reliance on consumers to act
sustainably and take part in recycling behaviours. Also, while the materials used in
the packaging are recyclable, the raw materials (such as crude oils and natural
gasses) required to create the finished materials are not highly sustainable. This
directly contradicts the first three conditions of the TNSF.
However, to combat the negative environmental impacts, Sukin is a certified
carbon neutral business, through collaboration and certification from The Carbon
Reduction Institute (CRI) (Sukin, 2015). The certification represents that Sukin has
committed to annually calculating their carbon footprint through the use of a carbon
audit, following CRI’s online reporting, reducing emissions where possible, and
purchasing high-quality carbon credits through CRI to offset unavoidable emissions.
The carbon neutral certification means that Sukin strives to avoid emissions and
purchases enough carbon credits to negate unavoidable emissions. This helps Sukin
to combat negative environmental impacts in an economical way.
While the product is strives towards sustainability Sukin has opportunities to
further its sustainability commitments through packaging, and ingredient sourcing.
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2.2 Price
Sukin’s product costs are low, aiming to be affordable for their target market
(outlined in the Market Audit). Competitively, their pricing for all products is
noticeably lower or directly similar than that of their main competitors products
(outlined in the Competitor Analysis) and comparable, competitive pricing to “non-
green” competitor’s products. Sukin employs a mix of cost-based pricing for its
products. Cost based pricing refers to marketers setting a fixed amount or
percentage to the products cost in an effort to keep consumer prices minimal while
generating high volumes of sales (Martin & Schouten, 2012). This is sustainable
economically for Sukin as long as it maintains a profit margin adequate enough to
continue business practices, and socially sustainable as long as production costs are
payed fairly and the target market can continue to afford the products. A value based
pricing strategy is difficult to use due to consumers questioning “green” products
personal worth and quality (Martin & Schouten, 2012). While, Sukin has not used
pricing to position itself as a luxury product, its brand image and labelling is used to
present itself as trustworthy and transparent, which helps to alleviate consumer
concern for quality (Martin & Schouten, 2012).

2.3 Place/Distribution
Sukin offers its products across many different countries in-store and online
but its main geographic targets remain Australia, New Zealand and multiple
countries across Asia. To have a presence in-store across the world requires Sukin
to ship physically ship products around the world and enter in to partnerships with
retail outlets. Here in Australia their main retailers are Chemist Warehouse and
Priceline Pharmacy. Aligning with specific brands means that Sukin’s sustainability
efforts are impacted by the chosen retail company’s sustainability stances and
efforts. Retailers are not often highly sustainable as they generally require excessive
energy consumption (through lighting, store fronts, transportation of stock, etc.) and
produce excessive waste (delivery packaging and advertising such as catalogues
and poster, etc.). Through the use of these retailers, Sukin does not meet TNSF
conditions. A positive benefit to choosing Priceline pharmacy lies in societal
sustainability, as Priceline (through recognition of corporate social responsibility)
often supports social causes that benefit the population (such as anti-bullying
campaigns and fund-raisers to aid in health issues). This is a good example of the

9
reinvestment condition of Natural Capitalism. Alternatively Sukin also offers its
products through their own website online with delivery postal options. While it would
initially seem more eco-friendly to be based online and offer products direct to
consumers, there are both positives and negatives. The costs of running a
warehouse that product is sent direct to consumers from can be more economical
than distribution to, and selling through a retailer. However sending product direct to
consumers relies on transport services which consume more fossil fuels and result in
more emissions than bulk distribution. Sukin does combat this with their offset
purchases through the CRI, however, does not have any innovative steps in place to
avoid the actual emissions. Online retailing would be more economical as Sukin
receives 100% of the profits, although cost of each individual purchase being sent
out would inevitably cost more than bulk shipping. It also allows consumers to easily
access their product no matter their location, which satisfies step 4 of TNSF. Overall
the use of physical retailers and online retailing pose both negative and positive
environmental sustainability issues, but Sukin’s use of their own personal online
retail website can be considered more sustainable than the use of suppliers and
distributors.

2.4 Promotion/Marketing Communications:

Martin and Schouster (2012) recognise five tools within sustainable marketing
communication; advertising, public relations (PR), sales promotion, personal selling
and direct marketing. Sukin avoids producing traditional adverting material in favour
of more sustainable promotional activities. Sukin does not produce any print media
of their own, although, they do benefit from featuring in retail supplier’s print and
television media. Often their promotional sales are ‘percentage off’ sales or ‘buy two
get one free’ delivered through the retailer. Both of these kinds of promotional sales
need to be monitored to make sure that the profits are still sustainable and that they
do not increase excess consumption by consumers too much. An offer like ‘buy two
get one free’ can generate excess consumption as consumers will purchase more
than what is necessary. Sukin’s products do not pose a major waste threat as they
have a very long shelf life (less risk of spoiling before the consumer can use it all)
and come in small manageable sized packaging. Public relations and direct
marketing are utilised through the use of the ‘Sukin Club’ online, where consumers
can sign up and elect to receive targeted promotions and brand information. Email is

10
a good tool to utilise from a sustainable stand point as most consumers already have
an electronic devices through which they will access the information, and has low
costs involved (therefore, economically effective in comparison to traditional print
media). Although devices require electricity to power and aren’t often sustainable to
produce, few consumer will purchase electronic devices for the intent purpose of
view Sukin related information, but will instead be a by-product of the initial
consumption.

To further communicate its sustainable practices to consumers, Sukin also

uses a consumer friendly website, and use of social media. The brand has been
awarded with many reputable sustainability certifications such as the Carbon Neutral
stamp (positioned next to their logo) from the Carbon Reduction Institute of Australia
which Sukin provides information on through their website. Sukin’s website, while
also serving as an online store, is used as an educational tool, dedicated to providing
information to their consumers about their sustainability efforts, natural ingredients
and personal benefits for consumers. In addition, to keep fresh on social media,
Sukin has recently appointed their first brand ambassador, Bianca Cheah (Proietto,
2015). Cheah is the founder of the online boutique Sports Luxe and operates a
successful blog dealing with topics of health, travel, style and fitness. The use of
Cheah as a brand ambassador helps consumers to trust and connect with Sukin
while further emphasising their sustainable image. Overall their promotional
marketing is deemed fairly sustainable societally with no misleading information,
environmentally with little to no unnecessary waste and consumption and
economically affordable.

3. PESTLE Analysis
A PESTLE analysis can be used to examine a business’ external environment
by researching and identifying key issues in the political / legal, economic, socio-
cultural, technological, and ecological components of the industry, and can provide
an insight into where a business need improvements.

3.1 Political-legal

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 Having a strong understanding of the political and legal influences of an
industry is of vital importance for any business. Specifically, the cosmetics and
personal care industry has various regulatory bodies who monitor the market to
ensure safe practice. Firstly, Product Safety Australia, an organisation within the
Australian Competition and Consumer Commission (ACCC), provides strict
regulations for the cosmetics industry, including mandatory standards of ingredients
labelling (Australian Competition and Consumer Commission, 2015). Product Safety
Australia also works with the Australian Government’s Department of Health and
their National Industrial Chemicals Notification and Assessment Scheme (NICNAS),
which regulates cosmetic ingredients. Specifically, chemicals are monitored and
regulated under the Industrial Chemicals (Notification and Assessment) Act 1989
(Department of Health, 2015).
The Australian Government’s Department of Communications and the Arts
also includes various regulations for online businesses and provides information on
e-Commerce, marketing campaigns and spam and the use of social media
platforms. Any business marketing programs must abide by a variety of laws;
particularly, the Spam Act (2003) outlines how businesses can target consumers
online with regards to commercial electronic messages like emails (Department of
Communication and the Arts, 2015). A variety of other laws regarding consumer
privacy and security also apply to all Australian businesses under the ACCC.
Greenwashing is another major issue within any organic industry, with the
Australian Consumer Law (effective from 1 January 2011) containing simple rules to
ensure that businesses trade fairly with consumers. Specifically, the law states “that
businesses must not mislead or deceive consumers in any way”, with penalties
applying to business who do (Australian Competition and Consumer Commission,
2011, p. 1). It is important for Sukin to ensure that all of these laws and standards,
including those set by the Carbon Reduction Institute regarding carbon neutral
status, are abided by both now and in the future if regulation requirements change.
Additionally, the Australian Government’s Department of the Environment
offers a variety of grants and funding. For example, the Emission Reduction Fund
provides incentives for projects to reduce their emissions, while the Department
awards a variety of other grants multiple times per year to organisations improving
sustainability (Department of the Environment, 2015). Businesses should take
advantage of these grants which could not only boost brand awareness and bottom-
12
line sales but encourage other businesses to also set sustainable practices in their
everyday operations. Therefore, key findings from the political-legal analysis
conclude that Sukin must be aware of and adhere to various regulatory requirements
from different organisations, and that grants and funding from the Australian
Government are advantageous to pursue to increase publicity of the brand and its
sustainable achievements.

3.2 Economic
Understanding the economic climate of the industry, country and the general
international market is also important for a business. Specifically, there are trade
agreements and various regulations businesses must follow to export to specific
countries. For example, Australia and Sukin’s major international market, the UK,
have extensive economic and trade agreements, with the UK being Australia’s
seventh largest two-way trading partner (Department of Foreign Affairs and Trade,
2015). However, if Sukin wishes to expand their international market and export to
other countries, specific rules and regulations must be followed to ensure correct
exporting procedures are put in place.
In terms of economic trends, discretionary income, which is the income
consumers have available to spend on nonessential items, has been shown to be a
key external driver in the organic cosmetic industry (IBIS World, 2015). With a
predicted increase of household discretionary income over 2014-15, the sustainable
personal care and cosmetics industry should be experiencing growth as consumers
have more income available to spend on nonessential organic and natural products
(IBIS World, 2015). While Sukin’s low pricing strategy suggests that higher income
would have little effect on the business because the product is already affordable,
the rise in disposable income would make consumers more open to purchasing
organic products in general. In turn, this would increase consumer’s likelihood to
consider Sukin and other green products in their decision-making process, boosting
brand awareness and creating an opportunity to acquire habitual consumers once
customers realise how affordable the product is. Thus, key economic impacts include
trade requirements, including tariffs and regulations, which must be followed by
businesses wishing to expand into the international market, and a favourable
increase in disposable household income.

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3.3 Socio-cultural
Having a strong understanding of the socio-cultural climate of a business is
vitally important, especially for the growing organic industry. Understanding
consumer behaviour is key to effectively positioning and targeting the potential
market. There is an evident increase in the number of environmentally-conscious
consumers, whose awareness of ecological issues has led to a preference for green
products in a variety of industries (Greendex, 2010). Consumers are becoming
increasingly aware of the consequences of their daily purchases on the environment,
with the sale of natural products, especially natural cosmetics, increasing steadily
(Korink, 2013).
Along with this increase of environmentally-concerned consumers, health
consciousness has also increased amongst many customers, and has been
identified as "one of the most important drivers of the organic movement” (IBIS
World, 2015). This trend indicates that consumers will demand healthier product
alternatives, such as those with natural ingredients which are beneficial for the skin
(Korink, 2013). Both of these key socio-cultural shifts of increased environmental
awareness and health-consciousness create an opportunity for Sukin and similar
businesses to capitalize on consumer values, which are further discussed in the
Customer Audit.

3.4 Technological
In the current technologically-driven world, businesses must ensure they
remain innovative and up-to-date with technological advances in their industry and
the sustainable landscape as a whole. For the cosmetics and personal care industry,
technology plays a major role in sourcing natural ingredients, packaging and general
sustainable programs during business operations. For example, recycling
innovations has provided Sukin the opportunity to use PET plastic, metal springs,
LDPE tubes, and amber glass in its packaging and labelling, all being recyclable and
reusable (Sukin, 2015). Furthermore, Sukin’s ‘Grey Water Safe’ scheme ensures
that their product range has been formulated to be biodegradable and grey water
safe. Other businesses should adopt this scheme to not only remain competitive in
the industry but lessen their impact on their environment.
The rise of digital mediums and social media also gives businesses a chance
to communicate directly with consumers, receive instant feedback and provide
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information to educate consumers around the world on sustainable practices. This
saves money and resources spent on traditional promotional channels, such as
printed advertisements, magazines, and mailed brochures and flyers. Additionally,
the rise of e-commerce allows consumers all over the world to order products online,
saving time and resources.
Finally, innovations in product development, manufacturing and transportation
gives businesses the opportunity to continuously improve their day-to-day operations
in an attempt to lower carbon emissions and unnecessary waste. Organisations such
as the Carbon Reduction Institute of Australia encourage businesses to implement
sustainable practices, by providing Carbon Neutral labelling which Sukin has proudly
worn for a number of years. Businesses must remain proactive to these innovations
to maintain a strong marketing position, through the use of sustainable packaging,
labelling, promotional channels and business platforms.

3.5 Ecological
In today’s environmentally-conscious world, there are many issues in the
ecological environment that pose major threats to not only specific businesses and
markets, but the world as a whole. Martin and Schouten argue that “humans are
using up or destroying that Earth's vital resources much faster than those resources
can be replenished” which is resulting in a number of serious issues (2012, p. 10). In
the past, increased industrialisation and burning of fossil fuels caused a number of
environmental issues, such as air pollution, smog and acid rain from carbon being
released into the atmosphere (Black & Weisel, 2010). Previously, technological
advances and modelling highlighted that components of the Earth’s protective ozone
layers were rapidly depleting and that heat was being trapped within the atmosphere,
known as the natural greenhouse effect (Black & Weisel, 2010). Today, other issues
such as global warming, melting glaciers, rising sea levels and adverse weather
events may have detrimental consequences. Scientists predict severe flooding of
cities and entire island nations may occur, with natural disasters becoming more
destructive for coastal regions (Roach, 2006). The environmental issues of the
cosmetic and personal care industry include ingredients, specifically dangerous
chemicals, packaging, and general consumer behaviour.
Destruction of the environment for natural resources presents a number of
issues around the world, such as widespread deforestation across Indonesia and
15
Malaysia due to unsustainable practices from the palm oil industry (Zoological
Society of London, 2015). As the demand for natural cosmetics rises, businesses are
trying to find cheaper and quicker ways to extract and process ingredients, which
often leads to unsustainable practices. This can have detrimental effects on the
environment, including disrupting ecosystems and depleting non-renewable natural
resources (Simple Luxe Living, n.d.; Dean, 2006).
Chemicals used in products also raise concerns, as the chemicals are
eventually washed into lakes, streams, rivers and public water systems. This can
have a range of adverse effects on the environment, including animals, plants and
water quality (Simple Luxe Living, n.d.). Research also shows direct links between
toxic chemicals and major health concerns, such as birth defects, asthma, cancer,
depression and many more (Ecoaction, n.d.).
Finally, unsustainable consumption and consumer behaviour presents a
number of issues. According to studies from Organic Monitor, 94% of the carbon
footprint of shampoo occurs at the consumer level, with small changes in water
temperature or shower length significantly reducing the overall environmental impact
of the product (Cosmetics Business, 2013). These environmental concerns are only
getting worse, with the growing population numbers, globalisation and increased
standards of living, however scientists agree that these scenarios can be avoided
with responsible practices and sustainable procedures (Martin & Schouten, 2012).
Therefore, key environmental impacts for the cosmetics industry include carbon
emissions, environmental destruction and unsustainable consumption. Conclusively,
it is important for businesses to gain a thorough understanding of their external
environment to be aware of issues which may impact the business. This ensures
businesses will remain proactive and adaptive to sudden change within the market.

4. Market Audit
Skincare is the key revenue driver within the cosmetics market, generating
global sales exceeding US$111 billion in 2014 (Euromonitor International, 2015).
Australia’s cosmetics wholesaling industry currently generates $7 billion in revenue
and had an annual growth of 2% between 2010 and 2015 (IBIS World, 2015). The
Australian cosmetics industry currently consists of 1030 business with market share
of companies dominated by L’Oreal Australia, Procter and Gamble and Unilever
Australia (IBIS World, 2015). While there are no brands within the Australian organic

16
cosmetics industry with dominant market share, Sukin remains affected by direct
competitors such as A’kin and Moreish Skincare due to similar positioning strategies
as a natural skincare brand. Revenue for this industry of 96 businesses is
significantly less than general cosmetics at $265 million, however annual growth is
almost six times as much at 17.4% between 2010 and 2015 (IBIS World, 2015). This
phenomenal growth is due to surging consumer awareness and increasing concerns
about the dangers of chemical compounds in traditional cosmetics (IBIS World,
2015). Key trends in the skincare market include rising demand for natural
products containing vitamins and minerals, as well as domestic and international
interest in Australia’s natural skincare products with botanical ingredients such as tea
tree and eucalyptus (Austrade, 2015). Ethical consumerism is also a key behavioural
trend as many consumers take into account the ethical, social and environmental
consequences of their purchases (Austrade, 2015). This focus on social, economic
and environmental sustainability in the cosmetics industry indicates that further
sustainable actions implemented by Sukin will position the company as a leader in
the organic cosmetics industry. Thus, proving extremely lucrative, considering the
predicted high growth in future years.

5. Competition and SWOT Analysis

5.1 Competitor Analysis
Australia’s organic cosmetics industry is a highly competitive sector
regardless of no brands dominating the market. Sukin’s direct competitors include
A’kin, Moreish Skincare, Goodness and Natural Instinct, as these brands
demonstrate similar positioning strategies as a natural skincare brand with emphasis
on sustainability and natural products. As seen in Table 1, all product ranges are free
from animal testing, parabens, sulphates, toxins, and harsh chemicals and are made
from recyclable packaging. Other similarities between competitors include almost
identical distribution strategies as all brands retail through channels like Priceline,
Chemist Warehouse and various other pharmacies, as well as e-commerce through
various websites, including brand websites. The business ethos of each brand also
resembles similar ideologies of creating natural cosmetic products that benefits the
consumer and the environment.

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 While the brand’s products are similar in various aspects, there are multiple
differentiating factors to be analysed. All competitors frequently use social media
channels in the form of Facebook and Instagram to communicate with their
consumers. Sukin gains a competitive advantage as it boasts 41,646 Facebook likes
and 15.7k Instagram followers, which is significantly higher than its competitors
(Instagram, 2015) (‘Sukin’, 2015). Opportunities to differentiate are clear in the target
markets for each brand as A’kin clearly targets those of a higher earning income
bracket who are also being a somewhat ethical consumer. The company is
reasonably sustainable, although much less than Sukin as A’kin is not carbon
neutral, grey water safe or certified cruelty free. A’kin is also priced more expensively
and produce packaging of a higher quality and is presented in a more appealing way
compared to the other brands. This raises the issue of quality indicators, as ethical
consumers of a higher income bracket are likely to assume that A’kin’s products are
of a higher standard than Sukin’s, whereas Sukin is a much more sustainable brand
of equal quality products (See Figure 1).
Moreish Skincare also provides products of a higher quality packaging,
although only priced slightly higher than Sukin, which allows for quality indicator
assumptions. Moreish is not as sustainable as Sukin, as it is not carbon neutral, grey
water safe, vegan safe or certified cruelty free. It is critical for Sukin to effectively
communicate the high calibre of its products and emphasise its sustainability without
compromising its sustainable packaging and biodegradable product to remain at a
competitive advantage.
Goodness is a competitor in the sense that it is a clear option for younger less
environmentally knowledgeable consumers, which is a market that Sukin wishes to
maintain. This is clearly demonstrated through the language used by Goodness,
such as, ‘Blissful bunnies (animal testing? No way!)’ (Goodness, 2015). Goodness is
similarly priced to Sukin, however it is not as sustainable, due to not being carbon
neutral, a vegan brand or certified cruelty free, and is packaged and positioned as a
fun brand.
Natural Instinct is Sukin’s main direct competitor as both brands match similar
sustainable criteria, with Sukin proving to be more sustainable as it is carbon neutral
and certified cruelty free, unlike Natural Instinct, thus indicating a competitive
advantage. Similar pricing strategies are employed by both brands as they offer the
lowest priced natural products amongst the competitors, thus demonstrating a cost
18
leadership strategy. These lower production and retailing costs are the reason for
lower quality streamlined packaging, common in both brands’ ranges. Natural
Instinct holds an almost identical ethos to Sukin of providing products that are
environmentally friendly and sustainable at an affordable price. This is evident
through Natural Instinct’s aim of providing, ‘high quality, natural products that offer
your family the best results at a price that’s equally down to earth.’ (Natural Instinct,
2015) Sukin’s tagline, ‘Skincare that doesn’t cost the earth’, presents a similar
ideology (Sukin, 2015).
These factors clearly validate that Natural Instinct is a close competitor to
Sukin and is a viable substitute product for the market segment both brands target.
While each competitor claims their own advantages, Sukin remains the leader in the
industry as seen by their high social media following compared to its competitors and
is at the forefront of sustainability with certified cruelty free and carbon neutral status.

Table 1. Sustainability Analysis

Sustainability Factors Brands

Sukin A’kin Natural Goodness Moreish

Instinct

Carbon Neutral ✔ ✖ ✖ ✖ ✖

Grey Water Safe/Biodegradable ✔ ✖ ✔ ✔ ✖

Recyclable Packaging ✔ ✔ ✔ ✔ ✔

Vegan Brand ✔ ✔ ✔ ✖ ✖

Animal testing/by products/ derivatives ✔ ✔ ✔ ✔ ✔

free

Certified Cruelty Free ✔ ✖ ✖ ✖ ✖

Paraben Free ✔ ✔ ✔ ✔ ✔

Sulphate Free ✔ ✔ ✔ ✔ ✔

Toxin Free ✔ ✔ ✔ ✔ ✔

Harsh Chemical Free ✔ ✔ ✔ ✔ ✔

Information sourced from: (Sukin, 2015), (The Purist Company, 2015), (Natural Instinct,
2015), Goodness, 2015), (Moreish Skincare, 2015).

19
Figure 1. Perceptual Map
5.2 SWOT Analysis
Strengths
 Most sustainable skincare brand
amongst competitors (due to
carbon neutral status and other
eco certificates).
 Strong brand following, as
indicated by social media
presence (Facebook 41293,
Instagram 15.1k).
 Distributed through retailers
across 10 countries, both in
store and online.
 Affordable price allows for high
accessibility from market
segments with low income but
high eco consciousness.
 Australia’s highest selling natural
Weaknesses
 Perceived as low quality compared to
competitors such as A’kin and Moreish.
Also due to low price and bland
packaging, as a negative quality indicator.
 Minimal differentiation between
competitors without knowledge of Sukin’s
superior sustainability efforts. All brands
have similar positioning as a natural
skincare brand with similar aims and
mission statements.
 Increasing availability across the world
can decrease Sukin’s sustainability due to
increased shipping costs and energy
consumption.
-
20
 skincare brand (Sukin, 2015)
-

Opportunities Threats

 Organic Cosmetics is a growing

industry, thus will continue to be
profitable in the future.
 Behavioural shift to ethical
consumerism/favouring
sustainability (green consumers).
 Social media is a continuing
technological trend that allows
for instant communication
between Sukin’s consumers.
 Competition in the organics cosmetics
industry is high and the trend is
increasing.
 Barriers to entry are low in this industry
which increases the likelihood of
additional competitors.

6. Market Segmentation and Description of the Target Market

Sukin products dominantly appeal to female consumers within the green
market. The target market has been categorised into three segments: young females
aged 15 – 24 typically single and educated, mothers aged 25 – 44 and, women 45
and over. The majority of Sukin products appeal to the second market segment,
mothers aged between 25 and 44, classified as household decision-makers who
evaluate perceived benefits of products based on the needs of their family (Sahota,
2014). This is evident amongst Sukin’s existing product range and mission
statement, declaring they offer affordable and effective natural products that are
appropriate for the entire family (Sukin, 2015).

6.1 Demographic
In Australia, females between 25 and 44 equate to 28.1% (3,054,220 million)
of the total female population, most residing in or around metropolitan cities and
large regional towns (Australian Bureau of Statistics, 2011). While almost half of the
population is married, 60.5% of all Australian families have children, averaging two
children per family (Australian Bureau of Statistics, 2011). Both Australia’s national
disposable income and natural personal care market has increased over the past
few years, with average weekly expenditure on personal care products being only
$11 per family, indicating most Australian families are price sensitive towards these
purchases (Australian Bureau of Statistics, 2013; Money Smart, 2012). This
demographic falls within the ‘Green Activists’ segment, identified as individuals
possessing a higher education, greater earning occupations and favourable
disposition toward environmental perspectives (Finisterra do Paço, Barata Raposo &

21
Filho, 2009; Furlow & Knott, 2009, p. 85). These individuals are considered more
susceptible to environmental sensitivity due to greater access to information,
consequently accumulating knowledge of environmental issues and the ability of a
higher earning family to sustain the marginal escalation in costs that accompany
supporting most green products (Finisterra do Paço, Barata Raposo & Filho, 2009).
However, given Sukin’s affordable pricing consumers from even a modest social
class, conscious of their budget, can purchase these high quality products.

6.2 Geographic
Specific to Australia’s rugged, desiccated environment, with high UV exposure
and severe humidity, products that complement local climate settings are in need
from Australian consumers (Australian Trade Commission, 2015). According to the
Australian Trade Commission, domestic and international demand is rising for
natural and organic personal care products produced with high quality native
Australian ingredients, particularly in areas of body, hair and skin products,
cosmeceuticals, sunscreen and anti-aging products (Australian Trade Commission,
2015). Allowing local manufacturers, including Sukin, to capitalise on growing
recognition of prestigious Australian ingredients.

6.3 Psychographic
Environmentally conscious consumers actively seek products that align with
their values and needs, as green is not just a status symbol but a core belief
(Sahota, 2014). When a consumer identifies product or brand attributes relative to
their own values and needs they are more inclined to exhibit high brand commitment
(Guthrie & Kim, 2008). Sukin attracts consumers within Roper’s Genuine Greens,
Not Me Greens and Dream Green segments (Martin & Schouten, 2012). Martin and
Schouten (2012, p.92) defines ‘Genuine Greens’ as committed activists, who believe
all pro- environmental behaviour is achievable, while ‘Not Me Greens’ refers to those
environmental advocates who are apprehensive of big issues and commit to
convenient actions. ‘Dream Greens’ exhibit environmentally concerned attitudes, but
their naivety restricts behaviour (Martin & Schouten, 2012, p.92). Each is different,
however common consensus is these individuals currently are or would be willing to
actively participate in pro-environmental behaviours, given they knew how and the
actions were convenient (Martin & Schouten, 2012).

22
 Green consumers with high consumption levels of green products are usually
involved in community or social responsible activities (Finisterra do Paço, Barata
Raposo & Filho, 2009). They are highly influenced by others opinions and display a
strong concern for the environment, however their strong attitudes toward
environmental activism does not always guide their purchase decisions (Finisterra do
Paço, Barata Raposo & Filho, 2009). Consumers are sceptical of brands that
promote and advertise themselves as sustainable organisations, although most
individuals are willing to trust familiar logos that represent cruelty free and
environmentally friendly establishments (Finisterra do Paço, Barata Raposo & Filho,
2009; Sahota, 2014). Some consumers experience ‘green fatigue’, an adverse
perception toward environmentally friendly products, as individuals’ cynicism creates
focus on cost and functionality of items, in the belief products are too expensive and
have limited benefits for the environment (Sahota, 2014).

As people become more informed on environmental issues, consumers

recognise the consequences associated with their individual actions and feel
empowered to make green choices, subsequently encouraging ethical consumerism
(Australian Trade Commission, 2015; Sahota, 2014). For mothers the health of their
family comes first, while environmental concern is close second, indicating that for
green products to gain acceptance they must not compromise the needs or wants of
the consumer (Sahota, 2014). These consumers want products that are effective,
providing a functional benefit for themselves and their family, while being
environmentally friendly and reasonably priced (Sahota, 2014). As a ‘no compromise
green’ organization, Sukin has the opportunity to reach consumers outside of the
green-niche market (Sahota, 2014).

6.4 Behavioural
It is considered women have greater influence over regular low involvement
purchase decisions, such as groceries and personal care products, as they usually
do the shopping for the family and are therefore more familiar with suitable product
options (Sirgy, Rahtz and Portolese Dias, 2015). Women between the ages of 25
and 44 spend the most amount of time on household work, which includes shopping
for family items (ABS, 2011). This demographic has been identified as the primary
target market for Sukin, given the comprehensive range of natural products suitable
for the whole family, which appeals to a mother's concern for purchasing the most

23
effective and safe personal care products to fulfil immediate needs (Sahota, 2014).
While women are also believed to be more inclined to display pro-environmental
attitudes and behave with greater concern toward the environment when making
purchase decisions (Finisterra do Paço, Barata Raposo and Filho, 2009; Furlow and
Knott, 2009, p. 85).

Increased media attention and growing social concern for environmental

issues, has influenced shifts within demographic variables of green consumers,
encouraging poorer socioeconomic consumers to support green products (Furlow
and Knott, 2009, p. 85). As premium quality green personal care products are
increasingly more accessible and affordable, a large variety of consumers are
purchasing such luxury goods that they would not have been able to in the past
(Sahota, 2014). The demand for organic and natural cosmetics and personal care
products has increased as consumers become conscious of hygiene and beauty
trends (Sahota, 2014; Souiden & Diagne, 2009). An emerging trend exists
surrounding male cosmetic products, as research indicates most male grooming
consumption is influenced by the women of the household (Data panel, 2002; Junaid
& Nasreen, 2012). While decision to purchase personal care products is primarily
determined by meeting consumer health and wellness needs, ethical and
environmental concerns are also motivating factors (Sahota, 2014). As consumers
are increasingly concerned with individual purchasing patterns causing negative
environmental impacts, they begin to exhibit a preference toward purchasing
environmentally friendly products (Finisterra do Paço, Barata Raposo and Filho,
2009). However, if the product fails to meet expectations consumers are likely to
complain (Sahota, 2014). Given the identified market is active in technology, they are
also inclined to post their product experience on social media and online forums to
reach a broader audience (Sahota, 2014).

7. Customer Audit
As the demand for and use of natural products continues to increase, it is vital
for marketers to have a thorough understanding of this new market’s motivations and
consumer behaviour. Firstly, in terms of Maslow’s Hierarchy of Needs, consumers
are driven to purchase personal care products as a result of their belongingness
motives, such as a desire for love, friendship, affiliation and group acceptance,

24
although sustainable consumption may be driven by esteem motives for consumers
to feel superior, prestigious or reach a level of self-respect (Quester, Pettigrew,
Kopanidis, Rao Hill, & Hawkins, 2014). Furthermore, consumers may be heavily
influenced by social factors, specifically reference and membership groups as
individuals may strive to identify themselves as part of an environmentally-conscious
group or aspire to join the Sukin Club membership program. In turn, they conform to
purchasing environmentally friendly products to feel a sense of belongingness in the
group.

Other important aspects of this market's consumer behaviour are the

evaluative criteria consumers use to search and evaluate product alternatives.
Firstly, consumers in this market would generally be looking for an environmentally-
friendly product through informative and symbolic packaging and promotions. Sukin
effectively targets this consumer need by using earthy colours, natural imagery and
the symbolism of a leaf as their logo to identify the product as eco-friendly. However,
problems concerning the trustworthiness and reliability of sustainable claims have
arisen in the market, with terms such as ‘green’ and ‘recyclable’ being so overused
and misused that marketers worry these claims could ultimately become
meaningless to consumers (Furlow & Knott, 2009, p. 87; Zimmer, Stafford and
Stafford, 1994). Some consumers also struggle to distinguish between official, third-
party certifications and non-official eco-labels on products, which again leads to a
high level of mistrust and doubts of the genuinely of these labels (Korink, 2013).

Many studies also show that consumers in the natural personal care market
considers the product’s impact on their skin, body and general health and well-being
as well as that of their family. Korink mentions that ingredients are one of the most
important product attributes consumers consider when choosing cosmetic products,
with heightened awareness of health implications resulting in a “preference for
cosmetics that maintain or promote a healthy lifestyle by containing ingredients
which are beneficial for the skin” (2013, p. 13).

Despite Martin and Schouten (2012) describing a green market as consisting

of customers who will pay a premium price for organic products, Furlow and Knott
(2009) argue that environmental consumerism is no longer for the socially elite.
Sukin specifically has targeted a market who is not only environmentally conscious,

25
but also price sensitive by providing affordable, eco-friendly products, therefore,
price may be a very important criteria factor

8. Objectives

Marketing Objectives:
 Increase brand awareness throughout the 12 month long campaign and
thereafter, via; social media channels, strategic alliance with Bianca Cheah, and
word-of-mouth.
 Gain 11% increase in market share over the next five years (2016-2020),
through expansion of the target market.
 Retain current customers over the period of the campaign, and thereafter.
 Increase Sukin following of social media channels by 20% in the initial month of
the campaign and by 10% for the remaining months of the campaign.
 Acquire a 20% increase of new customers during the 12 month long campaign.

Financial Objectives:
 Increase revenue by 11% over the next five years. Predictions show that the
industry will grow 9% over 2016-2020 (IBIS World, 2015). In the first year of the
campaign, revenue is expected to grow faster than the industry, and thereafter
Sukin will aim to emerge a market leader with larger growth rates than the
industry.

Table 2. Sukin Expected Annual Growth Rate (Sales Forecast)

Revenue Growth 2016 2017 2018 2019 2020
Rate
3% 2% 2% 2% 2%

Societal Objectives:
 Educate consumers on easily adopted sustainable behaviours, via social media
channels, Sukin website and brand ambassador, of which can be implemented at
an individual level over the duration of the 12 month long campaign.
 Encourage ongoing individual sustainable behaviours amongst consumers via
social media channels, Sukin website and brand ambassador.

26
9. Financials
Sukin marketing budget, profit and loss statement, and sales forecast (Table
2) estimates are not exact amounts, and have been established using fictitious data.
Sukin have anticipated total revenue will increase 3% within the first year ($315,438)
and a further 2% increase within the following three years ($321,746, $328,181,
$334,745). Higher predicted growth rate in the first year reflects the intense
marketing schedule intended for maximum exposure to strengthen total market
share, while the following year’s expenditure will decrease and concentrate on
maintaining existing market share (Belch, Belch, Kerr & Powell, 2014). It is also
expected overall operational expenses will increase as revenue increases. These are
specified in the profit and loss statement (Table 4) as administrative, marketing and
manufacturing expenses. Prior to finalizing the marketing budget, strategic objectives
were first developed then appropriate mediums to achieve those objectives were
selected (Belch, Belch, Kerr & Powell, 2014). This budgeting approach is referred to
as the objective-and-task method, as marketing efforts are selected based on their
ability to successfully achieve the outlined objectives (Belch, Belch, Kerr & Powell,
2014). Planned marketing channels and estimated expenditure have been detailed in
the budget, Table 3.

Table 3. Marketing Budget

Sukin Marketing Budget

Combined
Online Advertising Price per unit Total
Cost
Sukin Website (redesign of site including maintenance) 17,000 $17,000
Priceline Website 800 10,400 $10,400
Chemist Warehouse Website 800 10,400 $10,400

Social Media
Facebook 0
Instagram 0
Pinterest 0
Twitter 0
0
Bianca Cheah
Blog/Social Media Posts 650 20,800 $20,800

E-publications/ E-magazines
Fashion & Beauty (1/2 page digital coloured) 2,050 24,600 $24,600
Lifestyle (1/2 page digital coloured) 2,050 24,600 $24,600

27
Instore
POP Displays (Participating Priceline Stores) 150 4,500 $4,500

Internal
Team Meetings 50 800 $800
Marketing Communications Total $6,550 $113,100 $119,650

Table 4. Sukin Profit and Loss Statement 2016

Sukin Profit and Loss Statement 2016

Total revenue 3,200,000
Cost of Goods Sold (1,400,000)
Gross Profit 1,800,000

Expenses
Postage/delivery (65,000)
Advertising (119,650)
Depreciation (Equipment) (27,000)
Electricity (30,000)
Property Insurance/tax (30,200)
Interest and bank charges (29,000)
Accounting and legal fees (12,600)
Printing and stationary (12,000)
Rent for premises (130,000)
Repairs and maintenance (21,100)
Training (8,800)
Salaries (980,000)
Workers compensation (13,400)
Miscellaneous expenses (15,000)
Total Expenses (1,493,750)
Net Profit (Before Income Taxes) 306,250

10. Implementation, metrics and control

10.1 Implementation
The implementation of marketing strategy is paramount to the achievement of
the marketing objectives set out by a firm. Sukin should adhere to the Organisational
Culture implementation approach, by which the organisation’s strategy becomes an
extension of Sukin’s mission, values and culture (Ferrel and Hartline, 2012), which is
obvious of the campaign. This approach also allows for much more effective and
efficient implementation of strategy throughout an organisation’s structure. This is

28
possible because the campaign is built upon the value of sustainability. Therefore,
employees, already exposed to the values of the company, are much more motivated
to implement the strategy (Ferrel and Hartline, 2012). The internal marketing process
is called upon at this point to guide the actions of management to communicate the
strategy to employees and persuade them on it. This will happen in the lead up to the
launch of the campaign with weekly e-newsletters, emails and fortnightly team
meetings.
Sukin’s communication strategies to consumers is also of great importance
throughout the campaign and even prior. The campaign is set to launch January
2016 however, there will be communications in December 2015, which will be hints
to consumers that something exciting is coming. The Sukin website, social media
accounts and internal emails communications will run continually throughout the
campaign. Communications will be particularly dense in the first month of the
campaign to gain greater awareness from consumers, particularly concerning
involvement in the competition being run in that same month. Sukin will also be
extending communications via Bianca Cheah, retailer websites and instore, and E-
publications such as magazines. The schedule has been created so that outside of
the Sukin website, social media, and internal communications there are external
communications of some sort every week that consumers will come into contact with.
The communications schedule (Table 5) below will enable Sukin to achieve
objectives efficiently and effectively with decreased discrepancy between intended
and realised marketing strategy.
Specifically, it is recommended that Sukin embark upon a strong social media
marketing campaign that includes a competition for consumers. The goal of the
campaign is to encourage sustainable consumer behaviours in line with the Sukin
philosophy, expand the Sukin’s brand awareness and target market through the use
of co-branding, brand personality, and consumer involvement. The competition will
be based upon consumers sharing their own innovative sustainable behaviours with
others, using the hashtag “Sukinsecrets”. This not only expands and strengthens the
brand community but also the brand awareness amongst those whom are non-users
of Sukin. The inclusion of incentives in the form of cosmetic gift packs also promotes
involvement in the campaign which in turn directs learning and attitude change of the
potential consumers (Quester, 2014).

29
 30
Table 5. Sukin Marketing Gannt Chart
10.2 Metrics
The following metrics (Table 6) have been devised to achieve the objectives
and to also monitor the progress. From these metrics Sukin can correct and control
any areas that are not meeting standards, so as to once more decrease the
discrepancy between the intended and realised strategy.

Table 6. Objectives and Metrics

Objective Metric

Increase brand awareness throughout Measure the percentage increase in followers,

the campaign and there after via social likes, posts, and shares of Sukin material from the
media channels. beginning of the campaign to the end and also
thereafter.

Increase brand awareness throughout Measure the percentage of people who are cross
the campaign and there after via over consumers of both brands.
strategic alliance with Bianca Cheah.

Retain current customers over the Measure percentage of customers who continue to
period of the campaign. purchase during the campaign and after.

Increase following within social media Measure percentage increase of followers (or likes
channels by 20% during the initial where necessary) across the multiple social media
month of the campaign and by 10% channels.
thereafter.

Acquire 20% increase of new Measure percentage of new customers acquired

customers during the 12 month long within the duration of the campaign.
campaign. Measure number of new email subscribers.
Measure increase in sales percentage.

Gain 11% increase in market share
over 5 years (2016-2020).
Measure dollar sales divided by total industry sales
during the 5 years.
Measure product sales in dollars (over the same
period) per year with weekly, monthly and quarterly
updates to track progress.

Encourage sustainable behaviours Measure the number of shares, likes and pins of
amongst consumers #Sukinsecrets posts amongst consumers during
the campaign.

Educate consumers about easily Measure consumer knowledge via the quality of
adopted sustainable behaviours user generated content being posted to Sukin
social media.
It is also of importance for Sukin to evaluate sales key performance indicators
(KPIs), online orders from consumers, retailer orders and the request of new
wholesalers or retailers to measure sales performance. These measures will be

31
audited every week, month, quarter and year in line with respective targets to
evaluate progress of the objectives.

10.3 Control
The above tools and strategies aid Sukin in controlling the profitability,
productivity and strategy of the campaign and the objectives. It is critical to success
that the evaluation of marketing activities by both management and employees are
initiated and executed throughout the life of the campaign. Another key consideration
of implementation and control of marketing strategy is to monitor progress and also if
the plan is beginning to fall off course; this particularly shows the worth of metrics.
This is the final system in successful implementation - contingency plans. Sukin will
have various contingency plans in place in the case of strategy going off course
whether controllable or not. Such plans will be concerned with anticipating issues
surrounding natural disasters (affecting distribution and production), shifts in external
environment (economic, political and cultural), PR disasters (Sukin or Sukin affiliates)
and poor implementation of strategy.
Finally, upon reflection of the implementation, metrics and control systems in
place, Sukin can efficiently evaluate the discrepancies of the intended strategy and
the realised strategy. From this point the knowledge acquired can then aid in the
contextualising of expected outcomes, historical events, competitive or industry
outcomes, and environmental influences via metrics that may have taken place over
the campaign. All of which aids in future implementation programs.
A strong implementation program is of paramount importance.
Communication schedules clearly organise activities to lower the risk of confusion,
metrics allow staff to effectively measure the progress towards achieving objectives
and control systems provide assets both in the present and the future success of
implementation. Therefore, Sukin’s strong implementation program that combines
the aforementioned tools, programs, and strategies minimises risk and increases the
expected success of the campaign by coming as close as possible to the intended
strategy.

11. Conclusion
In order for Sukin to remain a leading Australian provider for natural skin and
hair care products, continuous responsiveness is necessary to maintain competitive

32
advantage. Adhering to various regulatory requirements and pursuit of potential
grants and funding from the Australian Government are advantageous to increase
publicity of Sukin and its sustainable achievements (Department of the Environment,
2015). While innovations in product development, manufacturing and transportation
also provide opportunities to improve day-to-day operations to lower carbon
emissions and unnecessary waste. As consumers become increasingly aware of the
consequences of their daily purchases have on the environment a behavioural shift
towards ethical consumerism, combined with increasing disposable income, sees a
projected growth in the sustainable personal care and cosmetics industry (IBIS
World, 2015; Korink, 2013). However, as Sukin specifically targets segments who
are not only environmentally conscious, but also price sensitive, the existing low
pricing strategy suggests that higher income would have little effect on the business
because the product is already affordable. Sukin must remain proactive to counteract
low quality perceptions, as lower pricing and bland packaging compared to
competitors is a potential indicator of inferior quality. Utilizing favoured e-commerce
mediums have been considered a valuable resource for promotion, consequently,
implementation of the proposed Sukin campaign has been created predominantly
using various e-commerce channels.

33
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