Target Market Identification Report Sunsilks Co-creations - Essay Example

?Assignment & Report Cover Sheet Complete all of the details below including your signature Hand to your lecturer OR place in the Assignment Slotin the Academic Department Room 227. 2. This form does NOT need to be date stamped if you are placing in the assignment box. STUDENT ID NUMBER: WAJUD102 NAME OF STUDENT: FAMILY NAME …Wang…………………………………………………………………… OTHER NAME(S) …Jue………………………………………………………………… SUBJECT NAME AND CODE: MKT100 NAME OF LECTURER: …Chris Bright………………………………………………………………………………………. CLASS NUMBER: …4………. TITLE/TOPIC OF ASSIGNMENT: ………Marketing 100 Situational Analysis…/Target Market Identification Report and Collage ………………………………….….. Please read the following and sign where indicated DECLARATION: I/We declare the attached assignment is my/our own work and has not previously been submitted for assessment. This work complies with Curtin College rules concerning plagiarism and academic misconduct. [Refer to the Policy library on www.curtincollege.edu.au for full details on our Plagiarism and Student Misconduct polices.] I/We have retained a copy of this assignment for my own records. Signed: ____Wang Jue__________________________________________ Date___10 December 2010___________ This document is current at 31/08/2010. Page 1 of 1 1.0 Situation Analysis 1.1 Current Marketing Mix 1.1.1 Current Product Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo is one of new Sunsilk’s Co-creations hair care line products. It consists of chemical as well as natural ingredients. The ingredients of the shampoo were chosen to achieve healthy shine, to co-create Sunsilk’s most advanced Addictive Brilliant Shine formulation for healthy hair that dazzles with shine (Unilever in Australia, 2011). Therefore, consumers benefit from buying a product in the form of healthy hair and “brilliant shine”. The company has teamed up with Jamal Hammadi from LA hair dresser to Hollywood stars and famous for his natural approach to achieve healthy shine (Unilever in Australia, 2011). It has inherent to all Sunsilk products cambered package, so customers can easily identify the shampoo as Sunsilk’s product. The bottle has red color and a big symbolic sign “!” on the front. The package developed by Brown Inc. (Brown Inc. 2011) makes product look modern and even hi-tech. This features distinct the product from other shampoos and attract customers at the same time. Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo is a part of hair care complex consisting of the shampoo and conditioner. Therefore, customers are given reason to by the shampoo together with the conditioner. The main targeted groups of customers are females between 16 to 40 with middle and high income level. Other groups of customers also might buy the product. Sunsilk Shampoo might be classified as staple goods because customers can use it regularly although they easily switch to another similar shampoo if the one is absent. Therefore, the shampoo is a star product of Unilever’s new product line. Its modern, professional and high-tech. It has original features that attract customers however; people can easily identify one of Sunsilk’s products. Customers can use it regularly although they easily switch to another similar shampoo if the one is absent. 1.1.2 Current Pricing The shampoo market is high-competitive. There are many brands but in fact the most of them are owned by a few corporations such as Unilever, Procter&Gamble and Schwarzkopf. Sunsilk brand belongs to Unilever, the second biggest shampoo market company in the world. Unilever (2011) claims to practice value-based pricing. This means that the price is set based on the value a customer receives using the product. The primary importance of this kind of pricing is to encourage demand through setting the price according to customers feeling of the real value of the product. In this case cost management becomes the main factor in company’s ability to get the profit. In fact Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo as well as other Sunsilk products is affordable even to the lower class of society. For example in Australia the price of Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo is around $6.50. This strategy of low price is made to penetrate to the market and attract their target audience. Also Sunsilk uses promo pricing to attract customers. For example you could buy Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo and Conditioner together at discount price. As I said Sunsilk shampoos are sold at affordable prices much lower than its main competitor’s P&G (Pharmacyonline, 2011). Consequently, there are a few multinational corporations on shampoo market that own the most important brands. Sunsilk belongs to Unilever. The company uses value-based pricing. This makes cost management very important in company’s ability to survive. Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo is affordable even to the lowest income class of the society. 1.1.3 Current Distribution Shampoo belongs to Fast Moving Consumer Goods and is distributed mostly like other products of the category. There are numbers of sales channels for Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo, the most popular and convince way to purchase the product is retail. There are many retail stores where customers can buy Sunsilk products. In Australia, they are Coles, Woolworths, IGA and private-owned stores. In addition, online shopping is also available on eBay, Pharmacyonline and other online shopping websites. Therefore, customers can just stay at home and click the mouse that Sunsilk products to be delivered (eBay in Australia, 2011). Before entering the market with new product, Unilever usually makes segmentation and defines targeted groups of customers. This influences distribution channels also. Consumers can not buy Co-Creations-Addictive Brilliant Shine Shampoo directly from producer (Sunsilk in Australia, 2011). It is caused by a range of the product features. The distribution chain has 1-3 intermediates. Usually producer sales shampoo to dealing or directly to retailing company. The rate of market penetration in Australia is more than 90 %. This is a high level. I believe, Sunsilk has a very good distribution channels over the country as they are simple and have not too many levels. Unilever makes sure that the each customer might easily reach the shampoo. 1.1.4 Current Promotion Sunsilk developes innovative strategies of promotion and marketing campaigns. The aim of the promotion is to make people to try the shampoo the first time and become a regular customer. In this way Unilever attempts to increase its market share and attract more customers. Sunsilk’s advertising projects play an important role in its promotion. Unilever used to introduce the information of its products, new products and improvement of existing products in various advertisements, such as TV commercials, newspaper, magazines, internet and radio. Sunsilk uses endorsers to promote production. It is reflected even in the product line’s name Sunsilk Co-creations. This means that the product was created with participation of some well-known hair-care experts, like Jamal Hammadi from LA in case of Co-Creations-Addictive Brilliant Shine Shampoo. Co-Creations promotional campaign is aimed to create a personality of the brand as well as prove its quality using “the best hair-care experts” (Sunsilk in Australia, 2011). Besides personality, Sunsilk attempts to create a high level awareness of the brand. Concerning Co-Creations-Addictive Brilliant Shine Shampoo, promotion tries to convince customers that their hair will be healthy and shining. Its advertisement show shampoos functional benefits delivered by credible sources, such as medical institutes and other experts (Youtube, 2011). Besides Sunsilk uses different kinds of discount promotions (Getprice, 2011). Consequently Anglo-Dutch company provides aggressive marketing and brand strategy. Sunsilk strives to attract more customers and increase its market share. These are expensive campaigns and the product quality must satisfy customers which try it at the first time after watching the TV commercials or other advertisement. 2.0 Segmentation Theory 2.1 Definition and expanation of segmentation. Markets consist of customers, and each customer has their unique characteristics different with others. The differences elements can be identified into series of categories, such as buyers’ wants, resources, buying attitudes and buying practices. Therefore, market segmentation is a process that divides a market into direct groups of customers who might have needs of separate products. The groups of customers are classified by different needs, characteristics or behaviour (Kotler, Adam, Brown and Armstrong 2006). 2.2 How Sunsilk benefits from segmentation? Segmentation tool might help any company functining on competetive market to answer the questins like “What to sell? How to sell? And Whom to sell?” Sunsik benefits from segmentation in several of ways. Firstly, it sets up advertising projects for each segments, and concentrate on particular segments or niches. This gives an opportunity to allocate scarced resources more effectively. Secondy, Sunsilk discovers new products line to meet the needs of one or more of the special groups, adjust the selling price to make the product afforded by different segments (Dickson and Ginter, 1987). In other words, segmentation lets the company to meet a specific demand of custmers and therefore, increase it’s revenue. Finally, segmentation helps to compare the differencies between segments in target market and set up effective marketing strategies (Wedel and Kamakura, 2000). This is the most beneficial property of segmentation for Sunsilk. It helps to answer the question “How to sell?”. In other words, with help of segmentatin Sunsilk knows what kind of TV commercial to show to girls in age group of 16-25. Consequently, Sunsilk brand and Unilever as a company benefit from the marketing tool of segmentation in different ways. 3.0 Target Market Identification 3.1 Geographical Segmentation The market geographically is situated in Australia. Co-Creations-Addictive Brilliant Shine Shampoo is currently sold in every Australia major cities, suburban and rural supermarkets or convenience stores (Unilever in Australia, 2011). The region factor is important for the research as more developed regions consume more products of high quality. The market demand is based on the city size. In Australia, the major cities including suburbs usually have 1-6 million populations while the small rural area can be only of a few hundreds of people. People in big cities usually spend more money and thus buy more Sunsilk shampoo than in small towns or rural area. The population density is also very important factor. Inhabitants of populous places used to care about their hair more than rural people. Therefore, sales of the shampoo in places with high density are bigger. Climate factors also need consideration in geographical segmentation, most of Australia’ land is desert and therefore less populated. Therefore, Sunsilk products are sold good in well-populated areas in particular, big cities through super-market chains such as K-Mart, Woolworth, etc. 3.2 Demographic Segmentation. The first factor of demographic segmentation is gender. The target gender of Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo is female. It is represented even in the shampoo’s name, however there are no any psychological restrictions for males to use the shampoo. The second characteristic is age and life cycle. This shampoo is designed for age group of 16-40 years. This is relatively wide range. The bold design of the package does not let elder people to buy the shampoo and it is not targeted for children at the same time. Income factor. Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo is targeted to the public of middle and high income; however the price of the shampoo is relatively low and affordable even for low – income people. The last demographic factor might be people’s occupation. For example, students who try to be healthy and beautiful are more likely to buy this shampoo. 3.3 Psychographic Segmentation The first characteristic is customer’s lifestyle. Shampoo belongs to VALS. Therefore successful people must have “successful” shampoo. The second factor is client’s personality. For example, people who do not want to stand out from the crowd are less likely to buy this shampoo. The third characteristic is socioeconomic status. I believe that single women are more likely to buy Sunsilk Co-Creations-Addictive Brilliant Shine Shampoo than married and therefore more conservative people. The last factor is their activity. People of some occupations such as students, waiters etc. are more likely to buy this shampoo than housekeepers and taxi drivers. (Segmenting Markets, 2011). 3.4 Behavioral Segmentation Besides of direct shampoo’s aim of washing hair, this is a kind of life style attribute. It is used even just standing in the bathroom so owner and her guests can see it and make conclusions. Therefore, besides of “brilliant shining and healthy hair” (Sunsilk in Australia, 2011) customers also seek proves of their success and beauty. In other words there is a phrase in shampoo users heads: “I use this high-quality modern and well-advertised shampoo. This means than I am not less or even more successful (beautiful, stylish) than other people”. The most of people in Australia are used to the brand of Sunsilk the most of them tried it at least one time. The Co-Creations product line looks like something new for them. I think this new line of recognized brand should have positive impact on total attitude towards the brand. 4.0 Target Market Collage 5.0 Rationale of the Target Market Collage Images Chosen Table Characteristics of Target Market Image used in collage to illustrate characteristic Describe how the image chosen illustrates the characteristic – include rationale for words used as well. Justify your selection of images for each trait. Geographic Density 1 Density defines how big the market is. City size 2 The city size as a geographic trait directly influences the quantity demand of the product. Climate 3 Climate defines the behavior of the customers e. g. how often they buy a shampoo Region 4 More developed regions consume more products. Demographic Age 5 Sunsilk shampoo targets age group of 16-40 years, mostly young people. Gender 6 The most of the users of Sunsilk are females. Income level 7 Though Sunsilk targets middle and high income class, its affordable to the most of the people. Occupation 8 People of different occupations care about their hair in different ways. Therefore, buy different shampoos. Psychographic Lifestyle 9 People consume shampoo depending on their lifestyle. Socioeconomic status 10 Customers of different socioeconomic status consume in different ways. For example married and single people. Personality 11 People who do not want to stand out from the crowd are less likely to buy this shampoo. That’s why personality is important characteristics Interests and activity 12 People with different interests consume different shampoos. For example Sunsilk would be good for athletes. Behavioural Benefits 13 The benefits that customer expects from the shampoo would play role in her choice. Loyalty 14 Sunsilk is well-known brand in Australia. This is an important factor for customers. Attitude 15 Attitude towards the brand shows client’s readiness and willingness to buy a product Ways to use a product 16 A product may be used not only in direct purpose. 6.0 References Bown Inc. 2011. http://www.brown-company.co.uk/our-work.php(assessed 2011/03/3). Dickson, P. R., and J. L. Ginter. 1987. Market Segmentation, Product Differentiation,and Market Strategy. Journal of Marketing. 51(2):1-10. eBay in Australia. 2011. http://www.ebay.com.au/ (assessed 2011/03/3). Getprice. 2011. http://www.getprice.com.au/SunSilk-Co-Creations-Addictive-Brilliant-Shine-Shampoo-200ml-Gpnc_329--46711076.htm (assessed 2011/03/3). Kotler, P., S. Adam, L. Brown and G. Armstrong. 2006.Principles of Marketing.NSW: Personal Education Australia. Pharmacyonline. 2011. http://www.pharmacyonline.com.au/sunsilk-co-creations-addictive-brilliant-shine-shampoo-200ml (assessed 2011/03/3). Segmenting Markets. 2011. http://www.kellogg.northwestern.edu/faculty/sterntha/htm/module2/3.html (assessed 2011/03/3). Sunsilk in Australia. 2011. http://www.sunsilk.com.au/ (assessed 2011/03/3). Unilever in Australia. 2011. 2011. http://www.unilever.com.au/brands/personalcarebrands/sunsilk_products/Sunsilk\ _shampoos_and_conditioners.aspx (assessed 2011/03/3). Wedel, M., and W. A. Kamakura. 2000. Market segmentation: conceptual and methodological foundations. USA: Springer Wikipedia. 2011. http://en.wikipedia.org/wiki/Sunsilk (assessed 2011/03/3). Woolworth online. 2011. http://www.homeshop.com.au/website/home.jsp?bmUID=1291810980360&bmL ocale=4361 (assessed 2011/03/3). Youtube. 2011. http://www.youtube.com/watch?v=jJxnaEruC6M (assessed 2011/03/3). Read More