Branding and Product Performance for the Health Care Brand - Assignment Example

?Entrepreneurship Marketing Paper Target Market, Branding and Product Performance for the Health Care Brand RELACORE BY YOU YOUR SCHOOL INFO HERE HERE RELACORE 1. Target Market After isolating appropriate market segments, it becomes necessary to identify consumers by which to target communications, advertisement and certain promotions most likely to purchase the product. a. What is Target Market? Target markets are those individuals that the company wants to attract to the brand. It is defined by their lifestyles, age, socio-economic factors, gender or interests (Boone & Kurtz, 2007). It is a process of further narrowing down segmented consumers with focus on the attitudes or circumstances that would be most connected to the product or its integrated communications strategies in relation to how it would benefit lifestyle or needs. Market segments become attracted target markets when they maintain these characteristics, according to Cui & Choudray (2002): High brand recognition Lack of competitive presence in a segment or poor positioning by competition When the markets are easy to access and provide advertising to When the market represents an easier distribution strategy When the markets maintain resource availability b. The Target Market for Relacore Relacore is a health care supplement that is designed to reduce body fat caused by stress. Relacore’s core concept, as derived from its current targeting strategy, is: “It may take more than diet and exercise to fight stress-related belly fat” (Hood, 2009, p.1). The target market is a broad spectrum of American dieters that have struggled with traditional weight loss methods. The price is relatively affordable for all socio-economic demographics, at approximately $40 to $60 per bottle containing a month’s supply. Thus, the targeting strategy is through psychographics as it relates to lifestyle and interests. c. The Importance of Target Market Selection This product is functional for only a certain cross-section of individuals with weight loss problems or with weight gain issues. It is necessary to isolate those who cannot afford higher cost weight loss drugs offered by pharmaceutical companies or have experienced no results with exercise and diet intake control. For Relacore, it must be promoted to only the correct market of buyers with these characteristics who believe in its concept, price, and ability to outperform other diet supplements. Those in society that can afford more costly pharmaceutical options for weight loss or those who rely strictly on exercise would be an ineffective market to target as they maintain characteristics not linked with the Relacore brand. d. Issues and Questions Related to Target Market Selection and Maintenance Relacore must ask itself first how prospective target buyers will view the credentials and reputation of the product, since it is not endorsed by the Food and Drug Administration. It must rely on fundamental research data from independent findings and then use these as credibility and ethics considerations. It must also understand the dynamics of human psychological behavior with the weight loss-concerned markets and then try to appeal to their vanity or frustrations associated with weight loss failures. The main issue and question is to determine how Relacore can fill a psychological and tangible void in the lives of target buyers and then create promotions based on these assessments. 2. Branding Branding is establishing a reputation or name for a product through the 4 Ps of marketing so that the product is differentiated and positioned uniquely among competition. a. What is a Brand? A brand is the identifiable logos, packaging, or differentiated product that makes it distinct on the consumer market. It is an identification that links the external consumer with internal philosophy or attitude to create connection with target buyers for competitive advantage. It is a culmination of integrated messages associated with the product that distinguish not only its concept and benefits, but also can be linked to entrepreneurial business values to create connection with buyers psychologically. It helps to position the brand against competing products in similar markets so that it is identifiable among different products that offer similar benefits to the consumer. It is, essentially, what makes a product unique. b. Why is Branding Important? The product must have its own unique personality against competing products in the same category. Brand personality is transcending the specific product characteristics or function to give the product a perception of sincerity, excitement, competence, or sophistication (Aaker, 2006). It is a linkage to consumer lifestyle where the target buyers feel attracted to the product for sharing the same attributes or attitudes of the consumer, thus making it relevant and inviting for purchase and, hopefully, long-term loyalty against competing brands. Branding is also important because the product is considered a market-based asset that provides value to not only the customer, but to the firm and its longevity or profit expectations. It builds overall brand value or, long-term, brand equity which is the ability to provide spin-offs of the existing brand or introduce new and improved formulas to freshen the product sales and image. Branding gives a great deal of long-run opportunities that can include spotlights on television shows through product placement to reach broader markets or invent new supplements that can boast such things as From the Makers of Relacore to promote more buying from those who trust in and believe in the product and its attributes. These are profit-generating activities that can occur as a result of successful branding efforts. c. Relacore and its Market Appeal The images associated with Relacore are that of competence, scientific innovation, and the lifestyle joys associated with good looks and success in dieting, as is illustrated by the cover photograph with the slim and content Asian model in a bikini. The product is designed to reduce the naturally-produced Cortisol which is known, scientifically, to be a contributor to fat cell production. For those who share a need for stress reduction, the market appeal is also significant credibility. These images are what create a lifestyle connection, while also filling a void in needs fulfillment, that make Relacore seem like an inexpensive and reputable option to improve their psychological condition. The product is successful as millions of bottles have been sold across the country since its launch in 2007. Most recently, a judge dismissed a class action lawsuit against Relacore for accusations of false advertising, giving the product more clout for its relevancy and integrity. It is effective in using spokespersons that empathize with problem belly fat, thus giving the brand character and appeal. This strategy illustrates its commitment to helping people with their problem dieting needs and also builds relationship through sympathetic communications in the process. Relacore is owned by a private entrepreneurial development company and does not promote its profits. However, a million bottles at $40 average, represents a significant profit margin as the product continues to be ordered and allowed to stay on the market. This means that psychological connections are being made, related to empathy and hope-building, and it is likely that target buyers continue to purchase the product with developing brand loyalty. If this were the entrepreneur’s product, Relacore should be periodically repositioned with emphasis on quality, cost, or more tangible elements of product concept and functionality to avoid redundancy in brand presence and also to illustrate its diverse ability to satisfy multiple target buyers. Currently, Relacore focuses on empathetic relationship development with a supplementary credibility concept in its integrated communications. However, since Relacore already has a high budget for television and print advertising, new productions should be created to promote that spotlight scientific endeavors, new research findings, or even consumer testimonials willing to provide their experiences with Relacore. Why the latter? There is considerable negative press on Relacore since it is not backed by the quality standards and approvals of the Food and Drug Administration. By bringing actual customers into the brand to share their testimonials, it would further position the product on quality and, perhaps, even justify a higher pricing model for the product. It would also expand the market to include the skeptics, which under the VALS 2 model this represents the thinker audience that buys products based on appeals for credibility, reputation, and that satisfy their educational knowledge (Boone & Kurtz, 2006). This is a psychographic characteristic of higher resource buyers that have the tangible means to buy this product. A periodic repositioning when profits are lower, or when consumer sentiment does not illustrate excitement through market research studies, would give Relacore more competitive might and a better brand capable of attaining more market share against competition. This would not be deceptive marketing, just re-innovation to keep the brand fresh and true to its constituent attributes related to quality, price, and function. Through empathy, Relacore insists that weight gain is not the fault of the dieter, rather it is a product of stress (Consumer Diet Review, 2008). If this brand belonged to the entrepreneur, there would be more focus also on illustrating lifestyle scenarios that cause stress in common target market groups so as to seem relevant to workplace, family or social recreation as well. This would diversify the brand and give it more psychological appeal. References Aaker, David A. (1996). “Measuring Brand Equity across Products and Markets”, California Management Review, 38(1), pp.102-120. Boone, L. & Kurtz, D. (2006). Contemporary Marketing, 12th ed. Thompson South-Western. Boone, L. & Kurtz, D. (2007). Contemporary Marketing, 13th ed. Thompson South-Western Consumer Diet Review. (2008). “Relacore Reviewed”. Retrieved August 20, 2012 from http://www.deit-pills.com/relacorereviews.php Cui, G. & Choudray, P. (2002). “Marketplace Diversity and Cost Effective Marketing Strategies, Journal of Consumer Marketing, 19(1), pp.54-73. Hood, John. (2009). Judge Upholds Dismissal of Relacore Suit, Consumer Affairs. Retrieved August 21, 2012 from http://www.consumeraffairs.com/news04/2009/08/relacore_lawsuit.html Read More