Stage 2 Strategic and Creative Solutions Brand Development for Opal.
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I confirm that this work has gained ethical approval and that I have faithfully observed the terms of approval in the conduct of this project.
Signed ………………………………………………………… 11/06/2020 Date …………………………………
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N0751513
Chloe Butler 9589 words (Inclusive of executive summary)
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Acknowledgements.
I would just like to take this space to thank those around me. This work has been produced during 2020's covid-19 lock-down. I would like to thank my flat mates, who have become my quarantine family, even spending Easter Sunday together whilst we cannot move home, to my parents and family for their continued support, as well as my tutors Pinky and Tom who have been amazing before and during this pandemic, and also to my external tutor Jan. This past year has been personally one of the hardest so far for me and I would not have finished this report let alone my degree without everyone's support. This project and prioritising women has gained a place in my heart and my life, academically and personally. I'd like to thank Poppy Campen for her extensive proof reading and support and finally to all the women who have taken the time to contribute to this project.
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Contents Page
CHAPTER 1
11 12 13
CHAPTER 4
Insights The Problem Business Opportunity The Big Idea Consumer Testing The Golden Circle
17 18 19 19 19 20
CHAPTER 5
BRAND DEVELOPMENT The Business Model Brand Overview Logo & Imagery use Tone of Voice Personality Colour & Image use Brand Pyramid
MARKET OVERVIEW
THE OPPORTUNITY
TO BEGIN Report aims Introduction Methodology
CHAPTER 3
CHAPTER 2
THE CONSUMER 36 40 43 45 45 47 48
Market Segmentation 51 Opal's Consumer 52
P.E.S.T.L.E analysis Market Health Market Drivers Market Readiness Market Trends The Big Idea
23 26 28 29 30 31
CHAPTER 6
COMPETITORS Competitors Conceptual map
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CHAPTER 7
CHAPTER 8
MARKETING
COMMUNICATION STRATEGY
STRATEGY Marketing Mix Porters 5 Forces
63 77
CHAPTER 10
CHAPTER 11
OPERATIONS AND LOGISTICS Tactical Plan Logistics K.P.I's Risk Assessment
Business Objectives 81 Three Year Strategy 82 A.I.D.A Model 83 D.R.I.P Model 84 Communication Strategy 85 Opal S.W.O.T & T.O.W.S 98 Month by month timeline 99
FUTURE 113 114 115 116
119 Growth Strategy & Future Ansoff's Growth Matrix 120 121 Conclusion
CHAPTER 9
FINANCE Start up costs Loans & Investments Profit & Loss year 1 Cash Flow year 1 Profit & Loss year 2 Profit & Loss year 3 Sensitivity Analysis
103 103 105 106 107 108 109
CHAPTER 12
END From page 113 Appendix Image List References Bibliography
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Chapter 1
To Begin
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Report Aim This report aims to produce a proposal and implementation of a relevant and innovative business identifying and tackling consumer tension.
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Introduction "There is unbelievable power in ownership, and women should own their sexuality. There is a double standard when it comes to sexuality that still persists. Men are free and women are not. That is crazy. The old lessons of submissiveness and fragility made us victims. Women are so much more than that." (Beyonce cited in Hicklin 2014)
This report will follow the S.O.S.T.A.C Model to create a business solution to a realised consumer problem. The report has been approached in a logical and sensitive manor including extensive market research, which will allow a new business to thrive in the identified gap. This willl ensure competitive edge and success for the future, this has been achieved through strong brand development, competitor and consumer identification and analysis, a three-year marketing and communication strategy, financial and operational overview and the future for the proposed business.
Rationale Throughout the literature review in stage one orgasms, the clitoris and its use in literature was looked at. The early 1800's saw claims by doctors that orgasms caused contraction of diseases and hysteria; therefore, the clitoris was then named a completely functionless organ. (Le Clitoris, 2018). Consequently the clitoris was relegated to the background of clinical manuals and sexology seminars. (Piquard, 2013). Clitoral obscurantism continues to reign supreme
in our societies today with more than 50% of young girls unaware of this organ and 84% unaware of its erogenous function. (Piquard, 2013). Clitoral obscurantism and female pleasure being secondary, could be contributed to by a lack of education since the clitoris has been removed from literature, leaving today's 2020 consumer confronting a 52% orgasm gap.
"The number-one reason for the orgasm gap and it's not the only one, is our cultural ignorance of the clitoris," (Mintz cited in Compton 2019) One in three men think that vaginal penetration can bring a woman to a climax; however, only 20% of women can reach orgasm through vaginal penetration. This means that a large number of men are ignorant about orgasms in women. (Durex, 2018)
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Report Objectives 1) Provide research insights to accompany the proposed business concept and marketing strategy. 2) Formulate a strategic business plan and considered communication strategy that resonates with the consumer. 3) Provide a coherent and realistic financial plan that is sensitive to the current market and economy.
Methodology Research Philosophy Pragmatic research philosophy has been chosen so a combination of quantitative and qualitative research can be used. Gaining insight from various sources will put the business in the best position possible. Sample Research respondents were selected via voluntary self selection, and were all female. Respondents were found by publishing the survey on Facebook pages such as 'Girls who graduate'. The polls were distributed on Instagram and were open to women only.
Research Aim The aim of the study is to explore opinions and the taboo of female sexual pleasure, and how a solution would fit in the market Limitations The research completed is not representative of the older consumer. Focus groups were planned with consumers aged over 40, however, unfortunately due to the current quarantine situation, this was not possible.
Research objectives 1) To discover how women feel about the pleasure taboo and their attitudes towards pleasure 2) To gain perception and approval of the brand concept 3) To discover consumer issues with the markets' current offerings
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Research method
Sample
Rationale
Survey expanding on stage 1 research to discover how women feel about the Quantitative 304 women pleasure taboo. The survey aged 18-60 survey also looked at toy purchasing habits in terms of frequency and price Poll gave a first look insight into the concept and whether it would be accepted/ successful, identified how women feel about current toy purchasing
Advantages
Limitations
Research Objective achieved
Large consumer reach, respondents volunteer to take part meaning they are more likely to complete in detail
A survey does not allow extra detail to be given surrounding a question
1,2
Instagram polls allow anyone to answer, meaning several male responses had to be removed
2,3
It is easy to click on a poll mistakenly and a response cannot be undone
2
Access to Instagram users only, quick and easy method, as polls are only up for 24 hours clear data results
Concept testing Instagram poll
110 female Instagram users
Brand aesthetic Instagram Poll
94 female Instagram users
Gave insight into the brand aesthetics
Excellent for quick 'yes' or 'no' questions
Unwanted cookie pop ups Instagram poll
107 female and male Instagram users
To discover how consumers feel about pop up cookies
Provided one question No further detail is that can be answered given other than yes/ quickly to gain a fairly no large response rapidly
1 respondent Bella DePaulo
Bella De-Paulo, PHD is a a social psychologist and researcher. Her work around Singlism was used in stage 1 and she fights for female single equality. Her opinion was gained
Expert Interview
Bella is an expert in her field so her approval would give indication into the brands potential success
Responses from interviewees were not collected due to a lack of response, meaning only one expert opinion was gained
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2
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Chapter 2
The Opportunity
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Key Insight Significant social pressure on single women in society was found throughout primary research carried out for stage 1 (Butler, 2020). Key themes that emerged include women feeling judged when engaging in sexual activities with multiple partners and feeling pressured by friends, family and society to be in a relationship. However, 79.9% considered being single as a positive impact upon their lives, despite the taboo and judgement. Mental and physical health, friendships, career and academic goals all improved while being single, with 63.6% of respondents consciously choosing to be single in order to work on the aforementioned (Butler, 2020). An imbalance between viewpoints and actions was discovered. 50% (48.8%) state they do not feel pressured to be in a relationship; however, just 13% of respondents left a positive comment when asked how single women are viewed in society. (Butler, 2020). Highlighting a critical issue surrounding judgement and taboo within society. Overall there is highly significant evidence that the taboo of female sexual intimacy and pleasure does affect sex and relationships, with 93.4% stating there is an imbalance or inequality between single males and females in terms of numbers of sexual partners (Butler, 2020).
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Stage 1 insights
1 3
There is significant taboo surrounding female pleasure, sexual partners and being open about sex.
Women feel they would like more education and were not educated enough at school about pleasure.
2
Even the most self proclaimed 'open' people are not talking about pleasure, sex and masturbation with peers and friends.
4
Single women predominantly stated they are viewed not worthy and as failures, whereas men and women in relationships were more likely to describe these women as empowered.
The Problem "For women, pleasure is often viewed as secondary, selfish, even shameful or wrong" (Dievendorf 2019). There is a consumer need currently not being met; females feel that their pleasure is secondary within sex, relationships and society. An overwhelming lack of education and awareness surrounding sex and female pleasure are all contributing factors. The female consumer needs empowering, putting first and made to feel important.
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Business Opportunity A gap in the market is present, for pleasure positive conversation, a space for females to be heard and catered to, for the clitoris and female orgasm to be brought to the forefront and valued, and to tackle the 52% orgasm gap.
The Big Idea Stripping back the noise and creating one userfriendly e-commerce site for females to buy sex toys, pelvic floor trainers, vibrators and other female pleasure orientated products on a safe and friendly platform. The site this site will provide support, education about the products, female pleasure and a pleasure positive community.
Consumer Testing Initially, the concept was tested on female Instagram users aged 18-30. When shown the idea, 85% said that it is a brand they would buy from. An issue with this concept due to stocking third party products is if the consumer would buy a product from this company rather than going to the direct source, i.e. not going to Ann Summers to buy a product, however; when asked, 89% said they would buy from the third party retailer. Participants were then asked if they would appreciate this brand having pleasure orientated help, and 94% stated that they would. This research shows approval of the concept by this demographic, and that the idea can be reworked into a business. (See appendix 1)
Expert Testing "I think it is an interesting idea, worth pursuing, especially based on the research you've already done documenting that gap. From a singles perspective, I like the message about pleasure that can be experienced without a partner." Bella De-Paulo PHD (See appendix 16)
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Why?
How?
What?
The Golden Circle The Golden Circle (Sinek 2009) is a method for clearly outlining the brands' purpose. Every decision the brand makes will have this purpose at the heart. If a decision does not meet the brands' values or purpose then it is not the right decision. (Smith 2020)
Why? To break the female pleasure taboo and tackle the orgasm gap.
How? By bringing female pleasure to the forefront and educating and empowering women by opening up the conversation.
What? An e-commerce site that sells third party Fem-Tech and sex toys, and provides education, support and community.
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Chapter 3
Market Overview
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Macro factors impacting the sex toy industry
Policy Facebook has strict policy on advertisement of adult products, according to the policy an advert must not focus on sexual pleasure. As mentioned in the golden circle, pleasure is at the forefront of the why, so this Facebook policy would cause issues for a new brand. Kickstarter has a non-policy policy for sex toys and pleasure items, even without an official policy these types of items are assessed on a case by case basis and are usually rejected, such as Dame products EVA. This would cause a new brand issues with funding if crowd-funding was the route chosen. (Manning 2017).
Economy Policymakers reduced rates from 0.75% to 0.25%, taking borrowing costs back down to the lowest level in history, freeing up billions of pounds of extra lending power. (Chan, 2020). As a result borrowing money via bank loans will be more cost effective for small business in the long run as the interest rates are at an all time low. With low interest rates and the sex toy market on the rise, it could be a profitable time for a start-up in the sex toy industry.
Social Social acceptance of sex toys and fem tech is on the rise, and currently sits at a tipping point, if more noise is created and the hype sustained a change in attitude is possible. (DiCarlo cited in Cookney, 2020). DiCarlo 2020, continues "I think what we're seeing now is the groundswell before the tidal wave," she says. "I believe that it is the very first step to some very big change. But we have to be very mindful about not letting the chorus of everyone's voices die down. We need to keep being as loud as possible". This change in social acceptance is mirrored by the rise of Fem-Tech and the increase in the sex toy market. Adding a new start-up to solve an issue puts the brand in a good position for acceptance and to be part of adding to the tipping point.
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Technology Technology and the ease of online shopping is a major driver for the sex toy industry, (Technavo, 2017). Online shopping provides discreet shipping and packaging to the consumers house rather than going into a store. "One of the biggest selling points of online shopping is the privacy it allows, and that's especially true for sex toys" (Lords, 2019). 81.3% of women asked said they would rather buy sex toys online rather than in store (see appendix 2) This data and market driver indicates a sex toy start up would benefit more from being online only rather than having a physical store. Technological advances also helps the sex toy market with the products themselves, the rise of Fem-Tech is seeing the quietest, and most technologically advanced products enter the market. Technology will also help a new brand gain brand awareness and a presence by using social media platforms such as Instagram.
Legal A start up brand will have a few legalities to abide by when naming and launching. Trademark and registering fee's need to be paid alongside ensuring appropriate licences are held if needed and a domain name is secured to ensure the new company does not trade under the same name as an existing company. (GOV, nd). Sex toys do not have a separate set of safety regulations specific to the market, especially when silicone is used, the only classifications for silicone is food safe, and medical grade. Although food grade is marked safe for use in food environments or storage of food, this does not mean it will be safe for insertion; a key issue for the sex toy industry. A brand selling sex toys will have to ensure that the products are tested and marked safe and any silicone is medical grade. Fairly recent implementation of GDPR guidelines outlines regulations brands must adhere to regarding data protection.
Environmental "Plastic pollution has become one of the most pressing environmental issues, as rapidly increasing production of disposable plastic products overwhelms the world's ability to deal with them." (Parker 2019). Consumers have a large amount of buying power and can choose which brands to buy from, with the rise in awareness of cutting down plastic waste, new brands should avoid over using plastic or using it at all if possible, even within shipping packaging. If plastic is essential then it should be recyclable.
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The UK Sex Toy industry is set to reach £39 billion by 2027 (Grand View Research, 2019)
*1 rabbit = 1 billion
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Market Health
Sex toy market.
Valued around GBP 21.5billion in 2019, the sex toy market is expected to reach ÂŁ39 billion by 2027 at a CAGR of approximately 8%. Increased disposable income is expected to drive market growth during the forecast period. (Grand View Research, 2019)
E-commerce is the fastest-growing distribution channel of sex toys and holds a significant share (Grand View Research, 2019). Purchasing products online gives the consumer complete freedom and privacy, from privacy while browsing to discreet delivery packaging. E-commerce also allows consumers to compare products and read other consumer feedback to aid in choosing a suitable product without judgement that may be faced in a bricks and mortar store. Furthermore, discounts and offers available on online channels are attracting customers to purchase products from numerous e-commerce platforms.
A survey performed by sex toy retailer Lovehoney reported that female sex toy purchases are predominantly made by single women (65%). However, the study progressed further and showed that women who are married or in a relationship are equally as likely to purchase sex toys, for both personal and partnered use. (Research and Markets, 2019).
Middle-aged women experiencing vaginal dryness or entering the menopause are also frequently buying sex toys; however, these purchases are predominantly accompanied by the sale of a lubricant. (Research and Markets, 2019). The female-specific sex toy segment is seeing lucrative growth as women are increasingly using sex toys and other products as self-care rather than relying on sex with a partner. Growth in the market and the use of toys is also attributed to the availability of technologically innovative toys. (Grand View Research, 2019).
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Sexual Wellbeing.
A report titled 'Sexual Wellbeing: Taboo No More' published in 2015, explored female wellness innovations. The report stated that sexual wellbeing needs to be placed under the wellness market. Although predicted for 2017, it is only in 2020 sexual pleasure brands are aligning with the wellness sector. (Global Wellness Summit, 2018). Sexual taboo is largely diminishing due to young female entrepreneurs. Made-by-women for women sex tech solutions (Fem-Tech) have increased in popularity. Products that solely focus on female pleasure and devices that strengthen and improve pelvic floor are now widely available. The products are hi-tech, high quality and sophisticated (Spafinder, 2016)
“The parameters of what constitutes as 'wellness for women' will radically expand.� (Global Wellness Summit, 2018)
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Market Drivers
FemTech Made by women for women tech is a significant driver in the market. Sex toys, vibrators, kegel balls and pelvic floor trainers are being explicitly created with female pleasure in mind. Producing the most effective and aesthetic toys on the market. (Marci, 2020). 'Feeling yourself' Women are increasingly selfpleasuring and watching porn. According to a recent study by Pornhub, the buzz around feminist porn has increased, and 32% of worldwide visitors to Pornhub are women, which is a year on year increase of 3%. (Pornhub Insights, 2020).
Oh so taboo The female sexual pleasure taboo is slowly diminishing, and women are starting to explore the benefits of personal pleasure. (Marci, 2020). The growth of self-care The transition of self-care from luxury to necessity has been integral to the influx of sexual wellness products in the market. Not just restricted to toys and lubricants, items falling under this umbrella combine enjoyment with wellbeing, catering to personal care, menstruation and masturbation. (Marci, 2020).
#Metoo and third wave Feminism movements Both underpin a shift in social attitudes towards sex and taboo by creating conversation; therefore removing shame often associated with sex. (Marci, 2020). Netflix Normalisation Content such as Netflix series Sex Education, Big Mouth and Sex Explained all contain open conversation tackling a range of issues inclusive of sexuality and orgasms. "These shows are now ingrained in popular culture, but would not have been commissioned ten years ago". (Marci, 2020). Trend drivers (Marci, 2020).
The rise in the aforementioned and normalisation through popular culture are all driving the female wellness and sex toy markets. Brands have the opportunity to combine these drivers, listen to female consumers and embrace the self-love movement.
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Market Readiness
“Sex toys will dominate the Sexual Wellness Market.”
The sex toy market is on the rise and predicted to grow in 2020. Salience 2020 reported Ann Summers and Love Honey are experiencing year on year losses of 46% and 48% respectively. Smaller and newer companies such as For The Closet, and Seriously Sensual seeing a rise of 4127% and 144%. This difference between success rates alongside consumers turning to smaller brands shows great health in the market for a new brand to be successful.
Love Sence (+75%)
Fet sho (+75%)
Lucid toys (+100)
Seriously Sensual (+144%)
For the closet (+4127%)*
(Market Research Future, 2020)
(Salience, 2020)
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Adameve (-83%)
Sex Tioys (-62%)
Bondora (-49%)
Love Honey (-48%)
Ann Summers (-46%)
*For the closet (+4127%) is shown at 0.25% scale.
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Market Trends Intuitive Pleasure
DTC Directories
"Women-founded sex technology companies are ushering in a new era that features a much more considered and nuanced approach to a woman's sexuality and the technology that can be used to enhance her pleasure" (McGregor and Smith, 2017).
As highlighted in the market health section, the rise of Fem-Tech demonstrates that women are combining technological, marketing and design skills to produce sex toys with the aim to put women in charge of their pleasure. (McGregor and Smith, 2017). Having first-hand input into the design is extremely helpful in shaping thoughtful outcomes to correctly serve the female consumer and the desire in the market.
A selection of third-party platforms are offering new ways to filter through the growing number of digital and direct-to-consumer (DTC) brands. The DTC model has influenced the way products are sold, disrupted established categories and transformed the relationship between brands and consumers. However, this model increased in popularity rapidly and quickly saturated the market, making differentiation for consumers difficult and harder to identify which brands to trust. Overwhelmed by choice, consumers are turning to new thirdparty platforms to act as the 'middle man' between shoppers and brands. Consumers are also seeking anti-choice brands that offer streamlined, limited product ranges. (Hawkins and Stott, 2019).
Sex Re-education
Walpita, (2019) states that Generation Z (GenZ) are educating themselves on sex education by turning to social media, YouTube and Instagram influencers for realistic and inclusive perspectives on sex. Walpita also found that sexual content exposure due to the internet happens at an early age, and GenZ are becoming sexually active sooner. The study found that the average age for millennials becoming sexually active is 18, while GenZ are reporting the lower age of 16. There is a discordance between sex education taught in schools and the sex lives of teens. Compulsory sexual education has been delayed in the Uk untill after 2020. Meaning that the already large gap in education is exacerbated by the current content being outdated, contemporary issues such as consent, porn, pleasure and sexting are not addressed. "Most countries are still approaching sex education from an old school, abstinence point of view, failing to offer the comprehensive sex ed this generation craves, Gen Z use the internet to teach themselves everything, so it's no wonder they're turning to digital platforms to fill in the gaps". (Radin cited in Walpita, 2019).
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The Big Idea... continued After analysing the market, including growth, trends and drivers, it is clear there is a movement of acceptability of Fem-Tech brands. There is also a consumer desire for education highlighted in 'sex re-education' that women are driving the market with the rise of Fem-Tech, and the market is ready to take on a solution.
Consumers problem/ thoughts
Market trends/drivers The Idea
Women feel that their pleasure is secondary to a man's Women feel daunted by current sex toy retailers Women are wanting female pleasure not to be so taboo
A company that sells Fem-Tech products in a curated selection on a platform that provides reliable pleasure orientated education.
DTC Directories Sex Re-Education Intuitive Pleasure
To close the orgasm gap
The brand Opal has been created to sit in the middle of the ven diagram above. Brand development is continued in chapter four.
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Chapter 4
Brand Development
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The Business Model Opal exists online as an e-commerce consignment boutique, selling a specially selected product range, with female pleasure in mind. Opal cuts out the noise and overwhelmingly broad product range from other brands and provides a place to explore, compare and purchase female pleasure positive products. Opal will work on the basis of buying third party products at wholesale price, then selling at RRP (Recommended retail price) on Opal's e-commerce site, therefore distributing via wholesale. The format works as a consignment boutique rather than a marketplace due to a refined product range. The DTC directories trend has shown that this is an effective way to sell to current consumers. (LS;n DTC-directories, 2020). Buying stock at wholesale prices rather than being an affiliate or using drop ship enables Opal to have control over shipping. It also allows Opal to have self-branded packaging. Key activities completed by Opal will be to create a space for pleasure positive education and conversation while selling self-pleasure products. The key partners of Opal will consist of the brands being stocked online, the customers buying the products and third party companies for promotion, i.e. magazines such as Vogue and Cosmopolitan, as well as people to feature brands such as micro-influencers and celebrities. As Opal exists purely online, and the only revenue channel is from e-commerce sales, technology and skilled employees are paramount for Opal to run as a smooth omnichanel brand.
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Opal's value propositions; - Provides a safe and open space for women to explore their sexuality and intimacy through experiencing their own pleasure. - Reliable source of information surrounding pleasure positivity - High-quality level of customer service - Specially selected unique product range - No cookies or tracking - Opal as a brand or products viewed on the site will not appear as adverts on other sites Customer relationships will be formed via a loyalty scheme, and through high-quality customer service. Opal will also have up to date social media channels such as Instagram and YouTube; Opal will respond to comments to create a two-way conversation. The consumers' Opal will cater to are women seeking pleasure positivity, females who feel they are uneducated or wish to find out more about their bodies, first-time toy users and women who are curious. The initial structure of costs will include the technological setup and design of the website and Paypal business account. Salaries for permanent employees and wages for non-permanent employees, wholesale prices for stock, packaging creation and shipping, licensing, trademarking, accountancy fees and insurance.
Wholesale
Opal
Consumer
Opal will operate as a Direct-to-consumer (DTC) business. The DTC model allows the brand opportunity to build unique consumer connections through both product offering and the user experience (Trend Hunter, 2018). Global beauty analyst Karen Grant at NPD group explains the benefits of a DTC model as "It allows you to really get to know your consumer because you're getting that direct feedback; you are able to cut down on inventory cost because you're only building on demand; and you're able to move really quickly and customise the line". (Amber Road, 2017). Opal will register as a limited company under Companies House, meaning any financial losses the business may encounter will not be held accountable to the CEO. A limited company has limited financial risk to investors, encouraging more investment from individuals. (Townley, 2015).
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Brand Overview
Opal are a fun and friendly company tackling the serious issue of the pleasure gap between men and women; which currently stands at around 55%. Opal exists online as an e-commerce consignment boutique, selling a specially selected product range,. Opal ensures that the women using the products come first. Est. 2020.
Mission To break female pleasure taboo, one vibrator and one woman at a time.
Vision To lead the way with female pleasure positive conversation, creating a safe and open community of strong women who get off.
Proposition Experience your best buzz, you deserve it.
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Tag-line Where your pleasure comes first
Essence Specially selecting products for you.
Values + We are creating a society of security and belonging, all women welcome. + We trade with the confidence to break taboo and challenge the status quo + Connecting and communicating with transparency, dignity and respect + We are performance driven through the lens of our women + Delivering our very best in everything we do + We treat our staff with as much love and respect as our customers
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Logo Use
Opal main logo Pictured left is Opal's primary logo. This is the logo that will be used most often. There are no specific sizing restrictions, as long as legibility remains, the logo can be scaled as required.
Opal 'o' motif Secondary to the primary logo, Opal has an 'o' motif as a badge-mark logo. This will be used on the packaging and as the Instagram icon. No sizing restrictions are required.
The primary logo and brand name Opal is simple and understated. Maintaining discretion, through an unspecified brand name, with underlaying connotation. An orgasm coined 'Big O' providing consumers with an Orgasm-pal. This factor is not explicitly advertised through marketing in order to maintain subtlety.
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Imagery Use
Product imagery will showcase skin-to-skin contact, however no images of the products in use or any imagery seen as explicit or pornographic will be shared. The products will also not be shown alone on a plain background on social media, to maintain an aesthetic feed.
Opal supports and celebrates women, confidence and the body, but as Instagram will be the predominant social media platform, Opal will have to adhere to Instagrams' strict nudity guidelines. Bodies in a range of shape, size, colour and age will be used.
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Tone of Voice The tone of voice and language used throughout Opal is friendly and approachable; however, always maintaining a professional edge. The tone is consistent across all omnichannel platforms. Tongue in cheek phrases or euphemisms are often used within communication; however, Opal deals with all things sex and pleasure, but should never be sleazy.
An example of subtle euphemisms is displayed below. "Ensuring our ladies - come first" sits within the welcome to the company page of the brand guidelines (Butler, C 2020), Subtleties within euphemisms ensure that Opal comes across as playful, fun and approachable, but not inappropriate.
Customers need to feel as comfortable and confident with communicating with Opal as they do their best friend; however, boundaries apply as Opal operates as a professional brand.
Not cold and distant
Not too corporate
We are your professional best-friend
Not Inappropriate
No personal jokes
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Personality Opal are; + + + + + +
Opal are not;
Friendly Open Considerate Accommodating Personal Confident
-
Boring Inappropriate Disrespectful Cringy/sleazy Commercial
Picture of Sender Personality Quality-orientated, innovative, friendly, creative, future thinking
Relationship Friendship, proximity, trust, reliance
Culture Commitment, respect
Reflection Female, inquisitive, open to new ideas
Internalisation
Externalisation
Physique Where your pleasure comes first. ‘o’ motif logo
Self Image Fun, free, in control of their self and body, confident
Picture of Recipient
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Colour and Image Use
Primary colours used within Opal consist of the Opal grey which is used in the logo, 'o' motif and text. The pink colour is used for accents. This pink as a primary colour should be used more often than the other pinks in the palette.
Secondary colours used for Opal consist of a dark duck egg blue and a pale greyish pink. Both are used as secondary accent colours when the primary colours have not been used; these colours also appear in patterns and packaging.
Tertiary colours consist of a darker pink, a mustard yellow and a duck egg blue; these colours also appear in our patterns and packaging.
The mood board aesthetic includes imagery that has not been specified previously in the guidelines. As a third party company, Opal will use imagery from the source brands stocked as well as using original imagery.
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Brand Pyramid
Brand Essence Specially selecting products for you.
Brand Personality Friendly, approachable, open, reliable and confident
Emotional Benefit Opal makes its consumers feel empowered and important, confident and in control, and more in touch with their bodies.
Functional Benefit Opal provides consumers with the best products Fem-Tech has to offer in a safe open space, where help and support is offered and a sense of community
Features and Attributes A female pleasure positive orientated brand introducing women to their bodies and its functions, adding pleasure as a forefront need, and maintaining excitement and community for those who are already in touch with their bodies.
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Chapter 5
The Consumer
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Market Segmentation
It is essential for brands to divide a target market into smaller and refined categories. Market segmentation groups consumers that share similar characteristics, the four main categorisations are demographic, psychographic, behavioural and geographic segmentation. (Yesbeck, n.d). Identifying a target market allows a brand to create stronger marketing messages, as vague generic language, speaking to a broad audience can be avoided. Further segmentation allows hyper-targeted advertisement, whilst using platforms such as Instagram advertisement can be targeted to consumers, by age, gender and even likes and interests. Brands can be clearly differentiated by the marketing carried out by being specific about value propositions and focusing on specific customer needs and characteristics; this builds a more profound customer affinity.
Opal's consumer Opal's consumer groups have been identified via psychographic and behavioural factors, rather than general demographics, the only demographic specified is gender, with Opal's consumers being female. Opal aims to be inclusive and a safe, informative option for all women, therefore the target audience has been split into three subgroups, the first-timer, the explorer and the passionate feminist. It is also essential to understand the differences between the older and younger consumer, and any woman regardless of age can fit into all three consumer types described, older and younger consumers highlighted overleaf.
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The First Timer - Has not bought a sex toy before - Not sure what they like or what they want - May stumble across Opal via Instagram - May be curious about using toys but does not quite know how to initiate use
The Passionate Feminist - Experienced in using, buying and owning sex toys - Has control and owns her own pleasure - Has been searching for a brand that aligns with her personal values and needs
The Explorer - May have used or owned a toy before - Is sexually active and has some knowledge of toys and what she likes - Interested in exploring new things
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Opal's younger consumer
Aged between 18-35
Lives in the U.K
Active social media user, primarily uses Instagram. Interested in world affairs and human rights. Is in education or a firsttime job, interested in being educated
Impulsive spender, does not have a huge disposable income but will spend money on important specific items. Interacts with brands on social media.
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Opal's older consumer
Aged 36+
Lives in the U.K
Uses social media platforms but not an active user. Has children and is interested in their health and wellbeing and giving them a good upbringing, stay at home mum, socialite.
Quality driven, and prepared to spend more money to achieve it. Only interacts with brands via the website and email.
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The First Timer Neve aged 23 Recently single from a long term relationship, is using this time to discover who she is and 'find herself' wants to go travelling and then study midwifery. Has never used a toy alone or with her ex and is curious about doing so, stumbled across Opal while scrolling through Instagram
The Passionate Feminist Alicia aged 32 Engaged to be married. Has a history of using toys alone and with partners, her and her fiance like to experiment in the bedroom. Alicia is an activist for women's rights and regularly attends and hosts women's circles. Discovered Opal through searching for toys and buys because Opals values align with her own.
The Explorer Mollie aged 19 Currently single and not actively seeking a relationship, is in her first year at university studying veterinary science. Has used toys in the past, but due to living with parents has never explored use fully or ventured into using toys that vibrate. Now she has her own space and privacy is looking to explore more toys. Discovered Opal when discussing with a friend.
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The First Timer Angela aged 52 Happily married with two children and three grandchildren. Has not explored sex toys previously, however is interested. Found Opal through a girlfriends recommendation.
The Passionate Feminist Linda aged 36 Has never been married, has one daughter who is older and has moved out, lives alone with her dog. Highly educated and passionate, stands for women's rights. Discovered Opal at the WOM festival.
The Explorer Kerry aged 48 Recently divorced living alone, has three children with two living at home. Explored sex toys with previous partners when she was younger but has no experience of use alone. Discovered Opal by talking to her eldest daughter.
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Chapter 6
Competitors
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Competitive Landscape
Although Opal does not have a direct like for like competitor, the competitive universe model (Burstein 2012). has been used to identify Opal's competitive landscape. Layer one contains brands that make up Opal's product range so therefore are key competitors, if a consumer decides not to buy a product from Opal, the same product can be purchased here. Layer two shows competitors who are marketplace sites that sell toys. However with the expectation of Nasty Gal these are all beauty marketplaces that have a small toy section.
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A market positioning map has been created to demonstrate Opal's unique place in the market. The key identifies what type of competitor is shown. Opal has a balance in the product range, there is not an overwhelming amount of choice or too x-rated, or too similar to other third party beauty sites.
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Chapter 7
Marketing Strategy
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Marketing Mix
Price
Product
Promotion
Place
Physical Evidence People Process
Product
A specially curated product range of best sellers and female-focused products has been refined. All products align with the brand values and consumer needs, offering a range that provides enough choice but is not overwhelming or daunting. for the consumer.
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Chosen product line by brand: Ann Summers, My Viv collection "Sex is important, satisfaction is important - you and your vagina are important. So, don't just meet Viv - meet My Viv. My Viv is a new line of sexual-wellness products from Ann Summers, with health and equality at its core. With toys, devices and lubricants, the My Viv line serves women who are seeking a better sex life and a better relationship with their vagina." (My ViV, 2020).
Pebble Massager
Personal Massager
Duel Vibrator
Water & Oil Based Lubricant £ £10
££45
££60
Curved Vibrator
Slim Vibrator
Pelvic Floor Set £ £10
£30
£18
£25
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Dame products
"Dame Products engineers for sexual wellness by building a welcoming community, designing innovative tools, and bringing life-changing education to your bedroom. The Dame team represents a wide range of ages, genders, ethnicities, backgrounds, and lifestyles. A variety of voices in the lab helps us develop products that address the needs of as many humans as possible!" (Dameproducts, 2020).
Kip
Fin
Eva ||
Alu
£ £69
£69
£100
£10
Pom
Zee
£77
£25
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Lovehoney
"We are the sexual happiness people and we are proud to make a fun and fulfilling sex life available to everyone. If you're looking for a vibrator, a dildo, a fleshlight, a cock ring, sex toys for couples or anything else, our huge range of sex toys is guaranteed to satisfy." (Lovehoney, 2020). Although Lovehoney as a brand are not solely female-focused, they have been included in the range due to the price point and the more 'traditionally shaped' toys to give Opal's customers a limited range of choice.
Desire Luxury
Enjoy
Mantric Realistic
£ £59
£7.99
£39.99
Mantric Clitoral
£44.99
Silicone Rabbit
£24.99
Mantric Rabbit ears
£59.99
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The Smilemakers Collection
The Tennis Coach
The Frenchman "The Smile Makers collection of vibrators and lubricants are 100% designed for the female experience. With extensive research on female sexuality, we have developed elegant products and pleasure-positive education to better understand our bodies and unleash our true pleasure potential." (Lookfantastic, 2020).
£39.95 The Romantic
£69.95
£39.95 The Fireman
The Millionaire
The Ballerina
The Surfer
£39.95
£39.95
£160
£19.95
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Kegel Bell "We exist to help modern women feel good inside and out. In fact, we're obsessed with creating great products that work, simply and effectively. No fluff. No hype. No surgery. For real. Our health and fitness products are designed by a worldwide team of experts and are distilled to their simplest, purest purpose: to be exactly what modern women need to feel better at any age." (Kegelbell, 2020).
The Vagina Gym
£ £107
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Price 100+ 91-100
How much do you/would you pay for a high-quality branded vibrator or sex toy?
86-90
56-70 41-55 26-40
Amount (responses)
240
200
160
120
80
15-25
40
(GBP)
71-85
Due to selling third party products RRP guidelines will be followed. However, depending on profit, stock and sales, Opal will be able to run sales and discounts not initiated by the source brand. If the source brand has a product at a reduced price Opal may consider matching the sale price in order not to lose the custom. Products in the Opal collection range from £7.99 to £107. The price point was tested with consumers, with the vast majority of respondents sitting within the £1570 mark, this curve of price responses is mirrored by the product range with the majority sitting in the same price point, a couple of products sold on Opal go over the majority price point to suit the needs of the consumers who would pay more. It is important to note that older consumers selected higher price points and only 1% of respondents where aged between 40 and 60, validating the need for a few products over price point.
(Question 2 See appendix 3)
Place Opal is an online-only E-commerce brand, the direct to consumer model has been chosen to ensure full control over the brand, as Opal sells third party products, it is vital for profits and most importantly the integrity of the brand that third-party distributions are not used. Using third party distribution would nullify Opal's business model and be contradictory to Opal's ethos. The delivery, communication and education provided by Opal are fundamentals of the brand and using the third party would compromise this. As aforementioned, external analysis has shown that for the product range e-commerce allows consumers, choice, privacy, comparison and discounts throughout the entirety of the consumer purchasing journey. Another benefit for Opal being online is the delivery of content, blogs, videos and educational resources, when published resources are always accessible to the consumer to view at leisure. 94% of people asked stated they would appreciate Opal having this content, again validating the choice of distribution and highlighting a consumer need (fig.2). Primary research conducted via an Instagram poll showed that consumers find going into stores, and using websites with too much choice daunting (78%) (see fig 1)
(Fig.1)
(Fig.2)
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Promotion Promotion of products and services will predominantly occur through Instagram to lead consumers through to the website. Part of effective promotion is how brands communicate with consumers. Communicating efficiently with consumers is at the heart of Opal; the fundamentals of the business idea is how to communicate with and educate consumers. A variety of bought, owned and earned media will be used to build initial brand awareness and consumer engagement. Initially, Opal will rely more on earned media such as unpaid magazine articles and word-ofmouth marketing (WOM) between consumers rather than paid media. "Word of mouth was listed as the No. 1 influencer among millennials in their purchasing decisions about packaged goods, clothes, financial products and big-ticket items. Baby boomers also said word of mouth influenced them the most when it came to their purchasing decisions" (Solar cited in Radius Global, 2020). An extensive look at Opal's communication can be found in chapter 8.
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Physical Evidence
Opal's packaging consist of recyclable cardboard boxes that are letterbox sized. The larger size large is shown above, the smaller boxes are rectangular and will be used for one product purchases depending on the product size. The Opal patterns appear on the outside with just the small 'o' motif badge logo visible, ensuring packaging remains discreet through the post and when it lands on the consumer's doorstep.
Although Opal aims to normalise female pleasure, consumers may still want to be discreet. The patterns will change and rotate periodically to keep the packaging fresh and new, the inside colours of the box and any leaflets within will remain the same six colour variations as they are taken directly from the colour palette. Contents of the packaging may differ circumstantially, i.e. if samples are included or a voucher. It is imperative Opal does not use plain cardboard boxes as the packaging is the only physical touch-point with the consumer.
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Process As an e-commerce DTC brand Opal's process between brand and consumer is limited, however alongside a great product, when the process is executed efficiently process builds trust, loyalty and repeat custom (Posner, 2011).
Opal
Delivery
Consumer
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Customer Journey Customer Journey
The customer journey shows the brand insight into the complete pattern of behaviour from the consumers perspective as they purchase products. An idealistic consumer journey should interact with most if not all the brands touch-points. The model will highlight an area of issue which may cause the consumer to 'drop-out' of the purchase, by analysing, the brand can aim to minimise these 'drop-outs' and therefore increase conversion rate and decrease bounce rate. (Think with Google, 2018)
Desire (aspiration)
Research
Looking at other brands
Seeking approval from others
Justification
Looking for a self pleasure product
Sees Opal on Instagram
Using Instagram, websites to see other brands offerings
Discovers Opal, likes the products adds product to bag
Discovers Opal, scrolls through Instagram and website
Uses search engines to find brands
Scrolls through Instagram feed
Clicks onto Opals website
Speaks to peers for approval of the brand
Chooses product and adds to basket
Discovers Opal but is not reassured by content
Does not continue to website
The products are not priced competitively
Peers have had a bad shipping experience
Goes through to the checkout but the item is out of stock
Drops out
Drops out
Drops out
Drops out
Drops out
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Desire
Opal will ensure all content online is scientifically verified and accurate, that there is plenty of help and support available, so a consumer does not drop out of a sale due to a lack of reassurance.
Research
Opal will use the product function on Instagram to ensure consumers can easily see prices and click through to the website; the feed will also be visually aesthetic and engaging, so consumers want to click through to the website.
Looking at other brands
Opal will ensure products are sold at the same price as the original source and will provide student discount and where possible match the sales of the source brand.
Seeking approval from others
Opal will use Royal Mail for shipping to ensure the item arrives on time and undamaged. This will give opal the best chance of preventing a bad shipping experience for the customer.
Justification
Opal will maintain a reasonable level of stock and re-order from the wholesaler as often as possible to reduce consumers not being able to purchase the desired product due to stock issues.
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People "People are crucial to the delivery of a service and convey important messages to consumers about the quality of what they are experiencing... many consumers stay loyal to a brand because of the relationship and the trust they have built up... many services are dependant on the performance of the people to reinforce the brands values and image." (Jackson and Shaw, 2010) Opal's employees (when hired as part of the growth strategy) are vitally important in communicating the brands' tone of voice, personality, essence and values to the consumer. Training will be provided to ensure all employees speak and act in a similar manner when interacting with customers. Influencers are also important people for Opal, chosen specially to align with the brand. The words and actions of an influencer reflect directly onto the brand, so Opal need to keep track of influencers it uses, to ensure any negative press is not deflected. For example, if an influencer acted or spoke outside of Opal's acceptability, the influencer-brand relationship must be ended immediately.
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Porters 5 forces
Porters 5 forces model (Porter, 1980 cited in Jackson and Shaw, 2010).
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Threat of new entrants
Due to the third party selling nature of Opal there is no control over where else stock can be sold, another brand could be set up and sell the same product range, meaning the threat of new entrants is fairly high.
Bargaining power of suppliers
Opal sources products from other companies, so has no input as to what suppliers are used to make the products, meaning the source brands become the suppliers, (i.e. Smilemakers) and have huge bargaining power. External brands can refuse to sell wholesale to Opal at any point without Opal having any input, meaning Opal could loose some of its product line.
Bargaining power of customers
Opals customers also have quite a high level of power, because Opal sells third party items customers can go elsewhere to buy the products, which is made increasingly easier to do with e-commerce.
Competitive rivalry
Opal's competitive rivalry is very low as there is not another brand that solely sells third party sex toys in a refined collection. Competitors such as Beauty Bay sell some similar products and the same brand Smilemakers Collection, but the sex toy section is new and not extensive so is not a direct competitor.
Threat of substitutes
The threat of substitutes is high due to a huge array of sex toys available online and in store. The sex toy industry does not have its own safety regulations specific to the trade. Products can only be certified by existing classifications such as food safe and medically approved silicone, however neither are regulated or enforced for the sex toy trade meaning potentially hazardous or unsafe products can be launched. This means that it would be easier to produce and launch sex toys then other product lines due to not having to deal with regulation processes and certification.
To combat high threat, Opal has a few competitive features which will reduce the threat. For example, to reduce the bargaining power of the customer Opal ensures the pricing is competitive, to ensure custom will not be lost due to a lower price.
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Chapter 8
Communication Strategy
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Business Objectives
To gain a minimum of 10,000 followers on Instagram in the first year, and increase following by a minimum of 10% year on year for the first three years.
To hit a target of 2,000 sales within the first year in order to breakeven.
To have an average of 700 views on YouTube videos within the first two years.
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Three Year Strategy Year 1 The first year of the marketing strategy will focus on the brand launch and building brand awareness; this is especially important as Opal exists solely online. Consequently any awareness has to be earned; it cannot be gained by the existing footfall of a busy high street, for example.
Activities in year 1 consist of: - Launching Opal's social media - Brand launch - YouTube channel launch
- Working with influencers - Reward scheme set up - Email communication
Year 2 & 3 The second and third year of the marketing strategy will continue to build brand awareness and customer loyalty.
Activities in year 2 & 3 consists of: - Working with influencers - Social media campaign
Aim
- Pop up shop
K.P.I
Reach
Build awareness across paid and earned media to drive visits to website, social media and sales
Revenue and sales Social media following Website visits
Act
Encourage consumers to interact with Opal via social media and the website
Bounce rate Pages viewed per visit
Convert
Achieve view to sale conversion and maximise average order value
Conversion to sale rate Average order value Revenue
Engage
Build consumer relationships to achieve retention goals and encourage sharing
Active customers Consumer satisfaction rating Repeat conversion rate
The R.A.C.E model allows Opal to have a clear view of aims and how they will be measured via the Key Performance Indicators (KPI's). The model establishes a key set of objectives, allowing the brand to identify further objectives that are simpler to attain, measure, and control. (Zorraquino, 2020).
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A.I.D.A Model
Awareness Influencer and social media marketing will be used to generate brand awareness before and after the brand launch. Instagram stories will be used often with competitions and give-aways when the story is shared.
Interest Interest is added to the brand by the Opal education section, reliable and relatable content posted regularly will resonate with consumers.
Desire To build a desirable brand, a community surrounding the brand will be created, with the reward scheme and blog. Positive brand experience will be promoted.
Action The activities and marketing of the brand will drive sales and encourage consumers to interact with the brand.
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D.R.I.P Model
Differentiate
Reinforce
Opal have a unique space in the market being the only third party sex toy reseller with a curated range and education content.
To constantly reinforce Opals brand message, the mission, vision, tagline, essence, and values will be used consistently across all platforms, tone of voice is another important factor to be consistent to create a seamless omnichannel approach.
Inform Potential consumers will be aware of Opal through Instagram promotional marketing, which will reach consumers that show an interest in: sex, beauty, International Women's Day (IWD), love or pleasure.
Persuade Repeat purchases for Opal may be more limited than other companies, research has shown that the average person will only purchase once or twice a year, (see appendix 4). This is also reflected in the nature of the products, only the lubricants will run out, so repeat purchases will only be made by desire for a new toy.
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Communication Strategy Social Media Launch.
Opal's social media launch will happen in June in order to drive hype for the official brand launch the following month in July. Instagram, Twitter and YouTube will be joined, and posting will occur immediately prior to launch. Facebook will not be used due to current pleasure diminishing polices.
YouTube Channel.
YouTube is going to be an essential channel for Opal. Informative and educational videos form the basis of Opals education and taboobreaking mission. The videos will also be shared on Opals Instagram TV (IGTV) channel to ensure accessibility to all consumers.
Brand Launch.
Opal's brand launch will happen in July. July has been chosen to ensure the brand has some awareness and a platform in time for Valentines and more importantly 'galentines' day in February, International Women's Day in March and Masturbation month in May. These are all key dates for a brand like Opal to support and promote.
Online Communication Opal's YouTube Channel.
Opal will have a channel with a variety of videos, including a first look at products and how to use them, general sex and wellbeing facts and questions (FAQ) and sex education topics. Opal will not shy away from tackling subjects that may be taboo or personal, such as masturbation or sexuality. The channel will feature guest speakers and influencers as part of the communication strategy.
Working with Influencers
The influencers chosen to work with Opal are women that use a social media platform to spread pleasure positivity. Choosing influencers or brand ambassadors must align with the brands' ethos and values. 2020 has seen the
rise of micro-influencer marketing, influencers with smaller followings tend to have higher engagement rates and more of a personal bond with followers. "The latest data shows that micro-influencers, influencers with 10,000 or fewer followers, are getting the best results for brands and businesses. More engagement, more clicks, and lower ROI". (Pusztai, 2019) However, because Opal does not manufacture products having a micro-influencer will not be as beneficial as influencers used will not be promoting a new product line or any specific products but the brand itself. Therefore micro-influencers have not been selected as Opal will need to gain the broadest reach possible.
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"70% of millennial consumers are influenced by the recommendations of influencers in buying decisions�. (Pusztai, 2019)
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Influencers & YouTube @oloni
3.77% Engagement
Oloni is a sexual wellness and relationships content creator and awardwinning sex and relationship blogger with 101k followers, she owns a website where honest and frank blogs are posted about all things sex, relationships and wellness. Oloni will feature on a YouTube video with Opal as a collaboration in March for International Women's Day. The topics discussed will be masturbation and confidence and being empowered while single.
@hannahwitton
4.18% Engagement
Hannah is a sex education digital creator; her primary platform is her YouTube channel, where she has 618K subscribers and gets an average of 108k views per video (see appendix 5). Hannah is also an author and shares her experiences with having a stoma bag. Opal will collaborate with Hannah and create video content for masturbation month.
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@florencegiven
9.19% Engagement
Florencegiven has 355k followers and was named cosmopolitan influencer of the year 2019. Florence will work on two videos as a collaboration with Opal in August and November. The content will consist of open and honest conversations about masturbation and pleasure positivity. Florence also uses her platforms to empower single women, the second video will discuss actively choosing to be single and how it is not a negative area in life, waiting for the next relationship.
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No Cookies Here! Opal will have data collection and personalisation cookies disabled on the website. Meaning the web-page viewed and the individual products viewed will not appear in adverts on other sites. Therefore, consumers can look at the product offering of Opal without having to worry that the vibrator they have viewed will appear while at work or university. 67% of people who replied to an Instagram poll (107 people) stated that they have had an unwanted product cookie appear at an inconvenient time. (See appendix 6)
The
Tribe
The 'O' tribe is Opal's loyalty scheme. When a purchase or an account is made consumers will be asked to join the free membership, on doing so, they will become a member of the 'O' tribe and will collect 'O' points for every purchase. 'O' points will then be redeemable as money off products or percentagebased discounts. Being part of the 'O' tribe will enable Opal to store browsing history and purchasing history on the site, meaning a better understanding of what a consumers journey looks like. However, this does not affect Opals strict cookie policy aforementioned. It would just allow consumers once logging in to view the last viewed products and purchasing history. The 'O' tribe membership will also allow consumers to refer a friend to the website, both parties will then earn extra 'O' points, and Opal will have new custom. Having a referral scheme also boosts WOM marketing, as Nielson cited in Warren states "92% of people trust recommendations from friends and family over any other type of advertising." (2020). As well as a profitable benefit to Opal, referring a friend also opens the conversation of pleasure positivity, women may not generally inform friends of a new Fem-Tech purchase, but with the referral scheme, they can do so easily.
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Email Communication
“Email marketing is by far the most effective channel to attract, engage, and connect with an audience to drive sales and revenue for your business.�(Campaign monitor 2019)
Email marketing will be a vital tool for Opal to use to keep in contact with consumers. A two weekly email will be sent, giving a snapshot overview of the blog posts and videos that have been uploaded. The emails will form the basis for communication, however other email marketing such as more events like masturbation month and Orgasm day will have their own separate emails and will be in addition. This frequency has been chosen, as the reason for un-subscription to emails 46% of the time is due to too frequent emailing. (Campaign Monitor, 2019). This frequency will also avoid being automatically marked as spam. Emails will inform consumers of new products, blogs and videos and will encourage click through to the website or social media, which in turn will drive sales. All email communication will follow the tone of voice guidelines set and will always have a positive and playful undertone.
Opal Ed
A fundamental part and USP for Opal is Opal Ed the education section of the website. Videos and blogs will be posted covering a wide range of sexual health and wellbeing topics, with pleasure positivity at the forefront. Opal Ed's content will also extend to IGTV and YouTube. However, this content must not be uploaded to Facebook due to strict policies.
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Social Media Campaign #Youdoyou
Opals first social media campaign will be a short video montage of different shots and images. The voice-over will read "To women around the world, it's about time you make sure you come first, its time to prioritise and normalise your pleasure, because you are in control, regardless of your shape or colour, if you are short or tall we are talking to you, women, you got this, Opal #youdoyou". In the comments of the video post, a competition will be announced where one winner and the tagged friend will receive ￥100 each to spend at Opal. To enter, consumers have to tag a friend and share to their story; this is increasing Opals brand awareness to every single entrant's followers who view the story, by tagging the brand other consumers can click through to the post. Therefore a lot of traffic will be driven to the brands Instagram account; awareness will increase from a reliable WOM format from friends and will only cost Opal the ￥200 prize giveaway, which is cheaper than an Instagram promotion.
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This is a brief story board of the video that will play alongside the audio. It will first show short clips of women smiling, laughing and holding our products, then women in plain nude underwear will appear to the words "shape or colour, short or tall" then it will flick to the you got this screen, then the #youdoyou and finally the logo will appear to end the video, all shots except the yellow will be shot against an Opal pink background.
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@opal_pleasure
Check it out!
As mentioned throughout, Opal's Instagram will be the primary social media platform. The picture sharing format allows images and captions to be shared, campaigns, competitions and video content. Instagram also has an IGTV function for longer videos which Opal will also utilise. Stories will be used regularly to announce content, share images and videos and to use the poll and 'ask me something' functions. This allows a two-way conversation between brand and consumer, while always adhering to tone of voice guidelines set by the brand. The username @opal_pleasure has been used so that it matches the domain name of the website which is available and can be trademarked. Opal will also use Instagram promoted posts every month and will run for seven days, alongside this promoted posts will also be used for occasions such as IWD, Valentines and 'Galentines day', Masturbation Month, and National Orgasm day.
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Offline Communication
Physical leaflets will sometimes appear in the packaging boxes and form one of Opals physical touch-points. For example, the mock-up shown will be sent in a consumers first order, promoting the 'O' tribe. Other leaflets within the box will vary depending on what the brand is advertising or if there is a new product. However, Opal will be aware not to send more than one or two leaflets per box; it must not be viewed as junk mail.
WOW Festival Southbank
Women of the World festival (WOW) is a weekend, day and evening event hosted over IWD at the Southbank Centre in London. 2020 saw roughly 20,000 people attend. (See appendix 7). For 2022's festival Opal will have a stall for the day. WOW is a very inclusive female-centric event that values women and their rights; this aligns with Opal's brand message perfectly. WOW attracts a variety of women in different age groups, so will be the perfect opportunity to interact with all the consumers face to face, but especially those who may not use Instagram. Opal's WOW stand will be predominantly educational and will have leaflets, business cards and tote bags for visitors to take away. We will carry a small selection of stock, mainly to be viewed but can also be sold, but selling products will not be the focus of the festival.
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Pop Up Shop
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Opal will run a pop-up shop in the form of an interactive open space. The venue will predominantly operate as a coffee shop and cafe, and a space to purchase products. The pop up that will be open from June 28th - July 18th, will feature guest speakers, who will give 'Ted Talk' type speeches in an array of topics such as positive feminism, masturbation, pleasure positivity and other topics similar to those promoted and discussed by Opal. The proposed area above shows the space where the talks will take place. The venue will be decorated in Opal's aesthetics and colour palette, inspiration areas shown left. The space will be light, airy and inviting and will encourage women into the store even if just for a coffee. The idea of the pop up is to have a physical presence on the high-street for an immersive experience that is more than just a pop-up shop. If successful Opal will consider a permanent physical space in the future.
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Opal S.W.O.T & T.O.W.S - No direct competitors
- New to the market
- New, fun, creative brand
- Zero brand awareness
- Provides excellent support and education - Relates to current market trends such as DTC directories
- No permanent physical presence
s
- Office space can be rented once adequate profit is made - Opal can hire staff for customer service, packaging, shipping and content creation
w
Strengths
- No offices or staff
Weaknesses
o
t
Opportunities
Threats
- Opal can collaborate with a health care tech company and develop own brand products
- Hiring staff will continue and improve customer service and ensure consumers get a faster response - Being current, fun and creative means a collaboration with a health care tech company would be more appealing
- Opal's branding is strong enough that if another company were to enter the market Opal would still have competitive advantage
- Other existing brands could enter the UK market and fill the current gap like the American site The Helm
- A permanent physical space can be opened when profits allow - Staff would be required when a physical presence is obtained
o&s o&w T&S t&w
- If The Helm were to stock in the UK, Opal would still have an advantage as Opal only sell pleasure products and not any female founded business
- Another brand could be created and sell the same product range
- A physical presence would be useful to exhibit products if Opal launches its own product line - Once Opal have launched brand awareness should be gained fairly quickly after the proposed communication plan
- No permanent physical presence and other brands being able to take the market is combated by having a pop up and hiring staff after three years
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Month-by-month Communication
Key Drip Marketing Burst Marketing
Opal will use a combination of drip and burst marketing. Drip marketing works on the 'slow and steady wins the race' analogy, by having constant marketing such as the two weekly emails and monthly Instagram promotions allow the brand to maintain consistency and regularly exposes potential consumers to the brand. Burst marketing works by having short sharp bursts of marketing that make an impact, for Opal, this will be the YouTube collaborations and the occasion based Instagram promotions. The combined use of the two methods shown will allow Opal to resonate with the consumer by staying consistent and exposing the consumer  to the brand regularly, and then making an impact to prevent Opals marketing from blending in.
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Opal will launch its profiles on social media and promote the brand launch The first collaboration video will be uploaded in collaboration with @Florencegiven, discussing masturbation and pleasure positivity October will see regular content positing for Opal with YouTube uploads, two weekly emailing and Instagram posts Christmas themed social media posts, with the re-enforcement that being single is empowering, even at Christmas Valentines and Galentines promoted Instagram posts linking consumers to the website and Instagram account YouTube video collaboration with @Hannahwitton for a Masturbation month special, uploaded a month early so the content is available for the whole of May
Opal will send its first email and upload the first batch of YouTube content September will see regular content positing for Opal with YouTube uploads, two weekly emailing and Instagram posts The second video with @Florencegiven will be uploaded, discussing actively choosing to be single Typical content positing for Opal with YouTube uploads, two weekly emailing and Instagram posts First YouTube collaboration video with Oloni, discussing confidence and single empowerment for IWD, promoted Instagram post. Masturbation month promoted Instagram post
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Chapter 9
Finance
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Start up costs Start up content
Cost (GBP)
Start-up costs total £53,682 this will need to be paid in June before the brand launch in July. These costs occur before trading can begin so leaves Opal minus ££53,682. In order to cover the start-up costs and allow a contingency for any unexpected extra costs ££56,000 needs to be borrowed.
Loans and Investment Virgin Start-up Loan Virgin offer £25,000 as a start-up loan, the amount can be borrowed over 1-5 years at a fixed interest rate of 6% p.a. Using a Virgin loan is beneficial to Opal as there are no set up fees or early repayment penalties, no minimum trading requirement and every founder receives twelve months of exclusive support as part of The Funded Club. Including; Expert guidance, access to a dedicated business advice helpline, and an experienced mentor who'll work with the business for six months. Santander Small business loan Santander offer ££25,000 as a small business loan, a Santander business account has to be held to be eligible, which is free for the first
18 months of trading and will then be closed thereafter. The money can be borrowed for up to five years and is interest-free for 12 months, with no setup fees. Personal investment and friends and family The remaining ££6,000 will be sourced internally. With £2,000 coming from personal investment and ££4,000 coming from family, both of these methods have 0% interest and fees, and no fixed repayment terms. The decision has been made not to use crowdfunding sites such as Kickstarter due to the no-policy polices that stand highlighted in the P.E.S.T.L.E analysis.
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£25,000 Virgin Start up Loan
£25,000 Santander Small Business Loan
£6,000 Personal Investment and Family and Friends
The baseline of the first-year cash flow shows how the cash injection keeps the closing balance above £2,000 at all times. The full £56,000 can be paid back in March, avoiding account fees for the Santander business loan.
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Profit and loss year 1
Full finance rational can be found in appendix 10.
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Cash Flow year 1
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Profit and loss year 2
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Profit and loss year 3
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Sensitivity analysis Year 1
Year 2
Year 3
Sales have been increased and decreased by 20% to determine how sensitive the brand is financially, if actual sales fall by 20% compared to the predicted sales it quite drastically drops the profit margin, a profit is still made. Hence, a 20% is not detrimental to the brand, however, the business is fairly sensitive.
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Chapter 10
Operations & Logistics
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Tactical Plan As Opal sells products third party, only a short lead time before launch is required. Preparations other than brand creation can be initiated three months before the brand launch. All relevant costs have been included in the financial plan.
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Logistics For the first three years from launch Opal will be solely run by the founder, with the exception of a self-employed accountant, the business advisor that accompanies the Santander business loan and the influencers that work with Opal. Renting a warehouse is not required for Opal for stock storage; this will be carried out in the personal home of the founder. The house insurance for this property covers contents and business stock. Website development will be created and designed by the founder alongside Shopify's design team as part of the pay monthly service. Postage will be paid for by the consumer and will be posted via Royal Mail to ensure fast and efficient shipping. Student Discount at 10% off will be offered through Unidays, although specific deductions for student discount have not been included in the financial plans the sensitivity analysis shows that the brand will still make a profit and survive with 20% fewer sales. Opal will survive with a small reduction in profits due to a group of its consumers having 10% discount on products. It is beneficial for Opal to provide student discount, to match the source brand to avoid loosing sales. This is reinforced by consumer research, 89% of respondents stated they would purchase from Opal rather than the source brand but only if the price is the same. (see appendix 8)
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Key Performance Indicators
Objective type
Objective
K.P.I
Brand
To gain a minimum of 10,000 followers on Instagram in the first year, and increase following by a minimum of 10% year on year for the first three years.
Monitor Instagram account to see the number of followers year on year
Communication
To have an average of 700 views on YouTube videos within the first two years.
Can be measured by monitoring YouTube views and calculating the average across all videos
Financial
To hit a target of 2,000 sales within the first year in order to break-even.
Can be measured by tracking sale numbers, the net profit will hit ÂŁ40,000 at 2,000 sales
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Risk Assessment Risk
Consumers may shop at the source brand rather than at Opal
Full initial start up funding not granted
Brands could discontinue to sell products wholesale to Opal
Website malfunction
Likelihood
Medium
Potential impact
Prevention
Opal uses the RRP and does If consumers where using Opal not add further mark-up to for product discovery and products. Sales and discounts will education and then taking their be matched where possible and purchase to the original store student discount will be offered. it would have a huge impact This means the consumer will not on Opal's revenue be disadvantaged by price for shopping at Opal
Low
Opal will not be able to launch with the current business plan as the initial funding is needed to buy stock at wholesale price. Without the full ÂŁ56,000 Opal would have to operate as drop-ship or an affiliate, which compromises the brand essence and would not be as financially beneficial
Opal will ensure the forms required are completed on time and efficiently, and any extra information required is provided. If the Santander loan is refused, Barclays and Natwest both offer similar loans which would be used as a second and third option
Low
If multiple brands discontinue to sell wholesale then Opal would not have a product line and would be forced to change the product line
However this is fairly unlikely as Opal will be a revenue stream for the source brand. Opal will abide by any rules given by the source brand to decrease reasons why a brand would stop wholesale to Opal
Low
If Opal's website goes down or the website cannot handle the traffic to the site it would prevent all sales as Opal only exists online. An unusable website may deter custom in the future, it would only be a medium risk if Opal suddenly has more traffic than expected
Opal use Shopify as the website platform, this comes with 24/7 support so if the website did have an issue it could be resolved quickly.
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Chapter 1
Future
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Growth Strategy & Future Plans Survey results showed that the majority of consumers would only buy a sex toy less than twice a year. With the same product range repeat purchase rate will be low. Therefore Opal needs to diversify into other product ranges to keep sales and loyal customers. Brands identified to join Opal's product range as part of the growth plan are Ohnut, Unbound and Maude. (See appendix 9) Expansion into other product ranges such as breast pumps and eco-friendly or reusable sanitary products would also be possible for Opal to stock to become an all-round female-orientated brand, through pleasure, menstruation and childbirth. However, in order to stay unique Opal will not diversify so broadly that the brand's essence is compromised. Expansion plans also include increasing the use of offline communication. Brand analysis of sales data from the 'O' Tribe will need to be completed to gauge the age of Opal's consumers. As Opal will
not use Facebook and primarily uses Instagram, Opal may not be reaching the older consumer. Articles in magazines such as Good Housekeeping or Marie Claire alongside the pop-up shop and attending WOM festival will aid reach. After three years, Opal should be in a stable financial position to make this possible. After three years, Opal should be in the financial position to be able to open a small office, so that staffing Opal will be possible, staff to be hired will be a customer service team. Depending on sales, a small warehouse may be required, which would need a manager and packing staff if Opal is in a position to do so experts in the field can be commissioned to assist with the running of Opal ed.
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Existing
Ansoffs Growth Matrix Existing
New
Market Penetration
Product Development
- Develop a new marketing strategy. - Once sales figures can be analysed use the Botson Matrix to identify the star product, and the cash cow.
New
Market Development - Identify which markets are suitable to enter, for example the brand may not be big enough to launch in America, but it might be able to start shipping to Northern Ireland.
- Look at stocking other brands such as Ohnut, Unbound and Maude. - Look at launching new toys, Opal own brand.
Diversification - Sell merchandise such as tote bags, T-shirts, stickers and prints. - Sell other feminine items such as breast pumps, sanitary products.
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Conclusion Opal provides the solution to women's current issues with purchasing sex toys and will be the first e-commerce site and third party retailer of sex toys. When launched in the proposed manner Opal will be a successful, financially viable business and will bring pleasure positivity to the lives of many women. Opal will be part of the solution to closing the orgasm gap and diminishing female pleasure taboo.
Where your pleasure comes first.
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End of report
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