market research: hempz brand group project paper

Running Head: HEMPZ MARKET RESEARCH PLAN 1

Market Research Plan

Jesse Baxter, Nathaniel Jones, Trever Panter, and Lauren Sittig

COM 403: Strategic Communication Theory and Research

Flagler College Tallahassee

January 21, 2016

HEMPZ MARKET RESEARCH PLAN 2

I. Issue Identification

Identification of the Hempz brand problem

The Hempz “Age Defying Herbal Body Moisturizer” has failed to generate the brand’s

projected sales goals through national distribution channels over the 2015 fiscal year. The

company’s initial objectives included the dedication of approximately 35% of the brand’s total

revenue to obtain a 15% market-share while maintaining $10 million in annual revenue.

Hempz’s unsuccessful promotional and sales efforts have resulted in a loss for which the

company wishes to recover and remedy.

Potential cause(s)

Corporate decision-makers believe the root cause to be a lack of consumer attention among

the product’s target market which may be attributed to three potential causes:

1. A limited understanding of benefits provided by the hemp-based skin care product among

the brand’s target audience;

2. A pervasive social stigma related to all products containing cannabinoids and their

association with marijuana; or

3. Ineffective advertising due to a lack of consumer sentiment, product appeal, or general

reception.

II. Strategic Message

Message proposal

A marketing campaign dedicated to the promotion of the “Age Defying Herbal Body

Moisturizer’s” eminent attributes in treating skin will be developed for the Hempz brand. The

concept, appropriately titled “Higher quality,” will contain visual print messaging centered on

realistic benefits of product use.


Depictions and copy used in print advertising will contain elegant, informative, and serious

tones to elevate the product from a consumer-perceived headshop novelty to prominent cosmetic

status. The key message which directly states, “A higher quality of skin,” will serve to promote

the brand’s flagship moisturizer while subtly referencing the product’s marquee active

ingredient. This message will aid the brand in garnering prospect attention through vivid

marketing which acknowledges the line’s hemp-based qualities in results-driven, consumer-level

organic skin care.

Message goals

1. To improve the target audience’s perception of the Hempz anti-aging products’

capabilities through effective advertising of the brand’s “Age Defying Herbal Body

Moisturize;”

2. To diminish potentially negative sentiments held by cosmetic buyers toward, and

establish legitimacy for, cannabinoid-containing skin care products; and

3. To motivate the brand’s target audience to purchase, and make regular use of, the brand’s

flagship moisturizer.

Campaign objectives

1. To dedicate no more than 35% of the brand’s revenue earned over the 2015 fiscal year to

new campaign efforts promoting the brand’s “Age Defying Herbal Body Moisturizer;”

2. To re-establish annual revenue of $10 million where the campaign’s key product

contributes to 10% of the company’s earnings; and

3. To capture the 15% market share outlined by the brand’s initial campaign.


Positioning

Messaging will demonstrate to clientele seeking hydrating skin care that Hempz’s “Age

Defying Herbal Body Moisturizer” is a results-driven organic product because its active quality

provides barrier-restoring, redness-reducing, moisture treatment to dehydrated skin.

III. Research Methodology and Data Collection

Research proposal

Secondary Research – The team’s market researchers will gather information from online

sources via market research database access and Google search. Sources will be evaluated

(triangulated) for their credibility, reputation, and authority as legitimate information providers

in the areas of marketing, advertising, and target audience assessment among others. Specific

items sought to solve the consumer attention issue will include, but are not limited to:

Target audience sentiment toward cannabis-related products

Campaigns carried out by marketing agencies with experience promoting hemp-based

products

Organic skin care line advertisements

Successful skin care lines with hemp-oriented products

A thorough search and research of these topics is expected to provide valuable information

in the development of a new marketing campaign for Hempz’s “Age Defying Herbal Body

Moisturizer.”

Data collection proposal

Focus Groups – The team’s market researchers will construct three focus groups comprising

four individuals. A request seeking buyers/users of hemp-based and organic skin care products

will be distributed via social media posts within each researcher’s network. Respondents will


then be screened to determine suitability for focus group participation. Criteria will ensure that

individuals:

Regularly use organic and/or hemp-based skin care products

Have purchased organic and/or hemp-based skin care items within the past three

months, and

Evaluate skin care products prior to purchase

Upon assembly, each group will meet at a third-party hosting site to discuss topics

developed by the team’s researchers and moderator. A discussion guide will function as an

agenda for each meeting, beginning with introductions, reasoning, and initial questions to

determine familiarity with the Hempz brand.

Situational topics will focus on hemp-based and organic skin care marketing by addressing

advertisement effectiveness, issues, and individual preferences; corrective topics will cover

alterations to pre-existing advertising and the development of new materials to gain consumer

attention; and conceptual material will be introduced to gauge group reaction which will be

recorded with previous observations for assessment. After a one- to two-hour session, each

meeting is concluded.

IV. Methodology Rationale

Research rationale

As with any effective market research, the study will begin with secondary research. In

doing so, a great deal of valuable information may be uncovered providing clues as to why

Hempz’s target audience for its “Age Defying Herbal Body Moisturizer” is not paying attention

to advertising efforts. Through careful research of target audience sentiment, successful

campaigns for similar products, organic skin care lines, and top-level hemp-based products, the


market research team plans to either establish a firm basis, or remove the need, for further data

collection methods.

Data collection rationale

Beyond initial secondary research, focus groups will be implemented as means of

determining shortcomings with the brand’s previous campaign and to establish a foundation for

stronger advertising in the upcoming campaign.

A primary goal of this data collection method is to gain an understanding of consumer

feelings toward the advertising of hemp-based products – both specifically to the Hempz brand

and in general. More specifically, the focus group methodology will be used to determine if any

of the potential causes of limited consumer attention noted in the “Issue Identification” section

are valid. Additionally, discussion points will be used to gain new and different perspectives on

how to better draw consumer attention to the brand’s advertising, products, and future endeavors.

V. Benefits of Results

Information obtained from the aforementioned research will aid Hempz in its upcoming

campaign to market the “Age Defying Herbal Body Moisturizer” by:

1. Gauging the general consumer understanding of hemp-based skin care benefits;

2. Evaluating the degree to which a social stigma conceivably surrounds cannabinoid-

containing cosmetics; and

3. Providing consumer reaction data for previous and current marketing concepts to

determine consumer sentiment, product appeal, and overall reception.

All previously noted information will be valuable in establishing a qualitative basis, and

greater potential of success, for the brand’s upcoming marketing campaign.


VI: References

McQuarrie, E. (2016). The Market Research Toolbox: A Concise Guide for Beginners (Fourth

ed.). Thousand Oaks, CA: SAGE Publications.

market research: hempz brand group project paper

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