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t e r r a r i Y U M designs

I n t r o d u c t i o n 3

O u r P r o d u c t 3

O u r R e s e a r c h 5

M a r k e t S e g m e n t a t i o n 6

T a r g e t M a r k e t 7

O u r P r o m o t i o n a l P l a n 7

O u r D i s t r i b u t i o n P l a n 9

O u r E n v i r o n m e n t 10

A p p e n d i x A : T w i g T e r r a r i u m s 14

A p p e n d I x B : S a m p l e W e b s i t e 15

Marketing Plan | 2t e r r a r i Y U M designs

T a b l e o f C o n t e n t s

I n t r o d u c t i o n Terrariums are the in-home solution to growing sustainable, mini ecosystems

that are easy to care for, and easy on the eye. These self-sufficient arrangements

bring a slice of the outdoors inside, to our homes, offices, and businesses alike.

Trendy, decorative, and adorable, terrariums add aesthetic appeal to any interior

space. These pieces have the ability to provide nutrition for themselves, by creating

their own, personal water cycles (Yum!).

This aspect of sustainable nutrition is exactly what resides at the core of

TerrariYUM Designs. TerrariYUM Designs seeks to provide customers with unique,

custom-designed terrariums that satisfy their creative visions, and allow for easy,

periodic care. With an increased need for convenience among the majority of

consumers, the ability of terrariums to remain self-sufficient increases consumer

benefits in this regard, when compared to their conventional product counterparts.

TerrariYUM Designs believes that terrariums are the houseplants of the future, and

the following marketing plan represents just how they plan on contributing to this

transitional movement towards sustainable living practices.

O u r P r o d u c t TerrariYUM Designs creates customized succulent and cacti terrarium

arrangements that are delivered direct to consumer, via terraritum.com. Rather

than a completely build-to-order production system, TerrariYUM operates under a

postponement production system, which will be discussed in greater detail in the

distribution component of this plan. This postponement system is able to be used

due to the way in which TerrariYUM’s customization process functions.


TerrariYUM’s online purchasing platform features a selection process model.

The customer first chooses a terrarium (the actual glass planter that will hold the

other components). The customer has four different terrariums to choose from: a

cube, a pentagonal prism, and two different triangular prisms (one small and one

large). Next, the customer chooses the type of plant that they wish to house in their

terrarium. Rather than choose the exact plant, customers choose between either a

set of cacti, a set of succulents, or a combination of the two (sold in pairs). Exact

plants are not promised for two reasons, the first being the fact that availability of

certain succulents and cacti is not always guaranteed during all seasons, making it

virtually impossible to promise customers exact plants. Secondly, this process

eliminates an element of a possibility of dissatisfaction among customers. Rather

than promise consumers something that is not definite, TerrariYUM eliminates this

potential source of customer dissatisfaction through the limited options offered.

After selecting the type and quantity of plants, the customer then selects the color

of pebble to go in the bottom of the terrarium. All orders receive a sealed package

of soil, along with the contents of their customized order. These items are shipped

disassembled, to prevent potential damage and accidental dismembering of the

parts. However, each order comes complete with assembly directions and plant-

care information. This customized purchasing platform is further exemplified in

Appendix B.

A partially-customized production system provides benefits for both the

customer and business. Modern consumers want to feel not only that they have a

part in the production of their products, but that they are special and meaningful to

their preferred places of business. This platform not only allows customers to build

meaningful relationships with their customized products, but with the company


making these customized products. This platform allows for sustainable CRM, an

aspect of business that continues to grow in importance for the majority of

businesses.

O u r R e s e a r c h Marketing research enables firms to efficiently understand and attend to their

intended target audiences’ preferences and needs. Since TerrariYUM’s sole product

is relatively new to market (perhaps more of a repositioning of the product, rather

than product invention), market research is of utmost importance in determining

the potential consumer behavior in regards to this product.

In order to determine more information about the potential target market,

the perceived value of the product must be determined. Although TerrariYUM sees a

value proposition in the product that they manufacture, it is unclear whether or not

customers will perceive this same value. Because of the nature of this product

(trendy, relatively new concept), perceived value needs to be determined, including

the price at which consumers are willing to pay, and the presence of affinities

towards possible substitute products.

Determining the price that consumers are willing to pay relates back to both

the identification of a target market, and development of a marketing mix (price).

Determining the price of a product like this requires considerable research on the

possible substitutes for this product. For this reason, I believe that a virtual

shopping simulation would be beneficial in determining both an acceptable price,

and the relevance of substitutes. These simulation reflect the actual challenges that

brands have in competing with others in retail settings. Data collected from this


type of marketing research would give TerrariYUM a better understanding of

indirect and direct competition, as well as the prices that consumers are willing to

pay for such products.

Market SegmentationMarket segmentation allows for better execution of a marketing mix that fits

a target market’s needs. In order to encompass all possible cross-sections in the

potential customer base of TerrariYUM, it is important to take into consideration all

of the segmentation bases before selecting which to utilize. Because of the nature

of this product, TerrariYUM should utilize the demographic and psychographic

segmentation bases.

In terms of demographic segmentation, both age and income segmentation

could be considered useful in determining a target market for TerrariYUM. Age is a

useful segmentation factor in this case because of the trendiness of this product,

and the technology-based purchasing model. These two aspects of the products

align with the ideals of the millennial market. Income segmentation is also useful,

due to the fact that this product is neither a commodity nor necessity. As a

shopping good, this product requires the purchasing power associated with

disposable income.

The psychographic segmentation base is also useful in this case, particularly

in regards to lifestyle and motives. TerrariYUM emphasizes the notion of sustainable

living practices. Those whom lead health-based lifestyles may be enticed by the

aspect of sustainability that this product emphasizes. This product may also act as a

motive to contribute to the movement towards more sustainable living practices.

Additionally, in terms of lifestyle, this product is great for those whom either have


little outdoor space of their own, or live in small living spaces (both aspects of urban

living). Terrariums invoke a sense of nature while taking up much less space than

traditional houseplants.

Target MarketUsing the specific segmentation factors mentioned above, determining a

target market becomes simpler. Due to the technological nature of the purchasing

platform, in combination with other certain aspects of the product itself (trendiness,

modernity, need of disposable income, and ode to sustainability), the target market

for TerrariYUM products can be identified as young professionals (disposable

income) of the Millennial generation (technologically savvy) with concerns for both

the environment and their health. Although important to never discount the

possibility that other consumers would also enjoy this product, identifying a target

market based on the specifications of the product allows for better execution of

promotional efforts, as well as distribution and price.

O u r P r o m o t i o n a l P l a n Promotional mixes dictate that ways in which a company or brand

communicates with its customers. There are many different forms of promotional

tactics, including advertising, public relations, personal selling, sales promotion, and

social media. Now that TerrariYUM’s projected target market has been defined, a

promotional strategy can be formed.

TerrariYUM’s potential target market consists primarily of millennials.

Millennials are the most tech-savvy generation comparatively. Our text claims that


“two-thirds say a brand being on social media shows it cares about their generation

(Lamb 55).” Therefore, TerrariYUM should take advantage of the numerous

marketing opportunities available through social media and digital advertising.

Marketing budgets dedicated specifically towards digital advertising are

increasing across many industries and firms. Since cost per contact is low in

comparison to other methods, such as personal selling, advertising via online

platforms could be very beneficial to TerrariYUM. With over 70% of millennials

checking their social media at least once a day, using this form of promotion

provides clear benefits regarding reaching its target market. Social media as

promotion, in general, has a few beneficial characteristics, including immediacy of

communication, two-way communications, and many opportunities to directly reach

target markets.

In order to build a relationship with customers through online

communications, TerrariYUM needs to engage with customers on platforms that

allow customers to stay “in the know.” More than ever, customers wants to have

more access to information, and to be involved with companies as much as

possible. For this reason, communicating with customers through social media

platforms, such as Pinterest and Instagram, is beneficial in that they allow for

periodic, visual updates that keep customers involved with the product. For

example, if new cacti were to become available, communicating a photo via

Instagram to customers could induce customers to submit an order.

As blogging becomes increasingly popular, more brands are paying specific

bloggers to feature their products on their social media pages. This could also be a

very beneficial component of promotion for TerrariYUM. Reaching out to bloggers


that coincide with TerrariYUM’s brand image, for example, WeWoreWhat’s Danielle

Bernstein, would not only increase our social media reach, but add brand equity, in

that a reputable blogger has featured our product.

Other forms of digital advertising may also be beneficial to TerrariYUM.

Although expensive, paid advertisements on Facebook or sponsored ads on

Instagram have the ability to reach the millennial market that TerrariYUM is looking

for.

When using these different forms of media, it is important to keep a

consistent brand image and company message. In order to achieve an integrated

marketing communications plan, TerrariYUM needs to participate in active,

coordinated, and planned promotional activities that deliver a consistent message.

For example, reaching out to a blogger that openly does not support sustainable

living practices, regardless of the reach that this tactic may provide, does not align

with the company ideals of TerrariYUM. For this reason, all promotional strategies

need to be planned well in advance in order to keep a consistent brand image.

O u r D i s t r i b u t i o n P l a nAs mentioned previously, TerrariYUM will operate using a postponement

system of production. This system “minimizes the risks and maximizes the benefits

of both the build-to-stock and build-to-order strategies (Lamb 235).” This production

model is beneficial to TerrariYUM for a few reasons. For one, it allows for the

customization platform of TerrariYUM to function properly. Once market research is

performed to guesstimate what exact peak demographics this product will satisfy,

components of the terrariums can be shipped in advance to those specific locations.


This assists with one of the major issues with custom products: the time associated

with waiting for the product to be finished. This production system allows for faster

distribution and delivery.

Because of the nature of the purchasing process for this product, TerrariYUM

will use a single, direct channel of distribution. The product will be distributed solely

from the company website, direct to consumers. This is the best strategy at this

time for a few reasons. Market factors, including who are customers are and where

they like to shop, influence this decision very much. Since we are targeting

primarily millennials, an online shopping platform is a logical option. Additionally,

since this is a customized product, it will benefit from a shorter, more direct line of

distribution. All these factors combined lead to exclusive distribution, available only

through the company itself.

O u r E n v i r o n m e n t There are many aspects of the marketing environment that have the

potential to implicate TerrariYUM in negative ways. The different forces include

those competitive in nature, economic in nature, legal in nature, social in nature,

demographic in nature, and technological in nature.

Competitive Environment

Because terrariums are such trendy items, they are sold in a lot of different

stores with vast differences in prices. However, what makes TerrariYUM unique is its

customization platform. Although there are other custom terrarium providers, the

step-by-step customization process is not present in other companies at this point.

To show the most prominent competition, I have placed a screenshot of Twig


Terrariums’ website in Appendix A. Although this company specializes in terrariums,

they have a much less user-friendly process than does TerrariYUM. Their “custom

creations” also are completely custom and take around 2-3 weeks. So although

perhaps the same product category, these two providers are extremely different in

terms of their offerings.

Although no directly similar competition exists currently, this could change at

any time. This is not a difficult platform to produce, nor is the product. For this

reason, it is important to be aware of emerging competition at all times, and to

adjust the marketing mix accordingly.

Economic EnvironmentSince this is not a convenience of necessity product, disposable income is

needed in order to purchase TerrariYUM products. That being said, our sales are

likely to fluctuate based on the availability of disposable income, and natural

fluctuations of the economy.

Although there is nothing that a single company can do to influence the

status of the national or world economy, it is important for all companies to be

aware of the state of the economy. Acknowledging the current state of the

economy, and reacting to predictions of the future state of the economy, allows

companies like TerrariYUM to adjust their marketing mix accordingly, in order to

accommodate fluctuations in the economy.

Legal EnvironmentAlthough sourcing was not explicitly discussed in this plan, legal implications

have the ability to influence this node of the supply chain. Because of growing

conditions and costs, plants for TerrariYUM will most likely be sourced from Mexico.


Because of the nature of the product (considered an agricultural product) there are

even additional regulations regarding international importation.

Although there are no laws barring the importation of agricultural products

from Mexico at this time, there is always the chance this could be a potential threat

to TerrariYUM’s financial future. Domestic production would greatly increase costs,

therefore lowering margins and overall sales. Huge changes in the overall business

would need to be adjusted to accommodate such changes.

Social FactorsSocial factors are rather difficult to incorporate into marketing plans. Social

factors influence the products that people buy and the prices that they are willing to

pay to get those products (both monetary and non-monetary).

Using social media is a great way to position this company as fitting in with

the lifestyles of the customer. Since the use of social media is rising, making

TerrariYUM accessible on social media incorporates the lifestyles of its target

marketing into in overall marketing mix.

Demographic FactorsDemography is another facet of the external factor that companies cannot

control or manipulate. However, companies still need to take changes in

demography into account when developing a marketing mix.

A change in the consumption patterns of the company’s general target

audience (Millennials) could greatly implicate the sales of TerrariYUM. For example,

if for some reason, Millennials transition backwards towards affinities for traditional

advertising strategies, TerrariYUM would drastically need to change their marketing


mix. In order to account for these changes, it is important to consistently partake in

environmental scanning.

Technological Factors

It is important for TerrariYUM to constantly monitor the technological

advances established by other firms, especially in terms of the online platform that

creates its deliverables, as well as its distribution model. Neglecting to attend to the

need for technological innovation could render the company and its offerings

obsolete. Additionally, because of the high use of social media and digital

advertising, it is important to remain knowledgeable about the different methods of

developing mobile-friendly purchasing platforms.

C l o s i n g R e m a r k sTerrariYUM’s mission is to provide consumers with custom, aesthetically

appealing terrariums that promote the notion of sustainable living practices.

Through the implementation of this marketing plan, TerrariYUM hopes to contribute

to the movement of sustainable living, one terrarium at a time.


Appendix A


http://twigterrariums.com/

Appendix B


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Home About Us Shop Now Contact Us

Home > Shop Now > Build Your Own

1 Choose Your T e r r a r i u m

2 Choose Your P l a n t s

1

2

triangular (SM)

cacti/succulent

combo

(set of 2)

Marketing Plan | 16

Subtotal (before tax & shipping)


Works CitedLamb, Charles W., Joseph F, Hair, Jr., and Carl McDaniel. Principles of Marketing.

Boston:

Cengage Learning, 2016, 2015. Print.

Twig Terrariums. Twig. Moss Terrariums and Other Small Worlds. Twig Terrariums,

2016.

Web. 18 April, 2106.
