The Current Positioning of Badedas in the Italian Market - Term Paper Example

Badedas Case Study Badedas is a leading brand of in the Italian market for body care products. Currently, the brand is the most in the bath and shower categories and has significance presence in the liquid soap category. However, the brand has suffered a considerable loss of market share in some of its products. The analysis below evaluates the current positioning of Badedas in the Italian market. Overall Market position Body and Shower Market Share The graph indicates that Badedas’ market share has been declining steadily in the overall market of body and shower products. Manetti and Roberts has held to the market lead despite its share declining slightly over the period. The major gains in market share have been taken by Uniliver’s Dove products with its overall market share rising steadily over the period. This implies that Badedas’s market has been lost to the competition from Unilever’s product. Market position in shower category Market value shares in shower category Badedas is has been the leading brand in the shower category of body care products in the entire period of the research. However, the market share has dropped marginally over the period to stand at 12.9% from 13.7%. The market share of the closest competitor, Colgate Palmolive, dropped marginally over the period. The biggest gainer in the shower category was BDF Nivea which gained a formidable 2.5% over the period under consideration. Market share in the bath category Badedas was the lowest performer among the top four brands in this category. The market shares for Badedas in this category reduced steadily to stand at 2.6% from a high of 3.6%. Badedas was far behind the market leader at the end of the period by almost 7%. Also, Badedas’s products in this category were far behind even in comparison to the closest competitor in terms of market share. Market share value in bath Badedas has been losing market share both in the overall body care category as well the independent product lines in this category. In the category of bath products, Badedas’ market share declined steadily while all the competitors saw an increase throughout the period. Significantly, Badedas has also been losing its leadership market share in the shower category. This trend is not satisfying since it implies that Badedas may eventually be ousted from the top four brands in the body care products market. Hence, it is imperative that Sara Lee should lay down strategies to ensure that they reverse the downward trend and extend their market leadership in the shower products category. Most convenient positioning of the brand The Badedas brand should be positioned as a premier practical product for showers among the adult demographic. This is informed by the analysis of the cluster composition of the market needs in the body care products. Essentially, the competence of the product as assessed against the cluster composition of needs of the market give a clear pointer of the best marketing positioning of Badedas. According to the research, the Badedas product has the best score in cluster five which highlights the elements of recognizability and sensations. The product had high ratings in terms of being masculine and dynamic. This implies that the product can easily appeal to the young people who are active and full of energy. The product is also highly suitable for people who are interested in aesthetics and fashion elegance. This again points towards the young people as the best target for the product. The youth are interested the attractiveness of the packaging and the illusion of class in a product. Also, the product gives nice sensations with its long lasting perfume and its modern packaging. The Badedas product also has the element of freshness. This fresh appeal coupled with its practical and concrete nature makes the product a logical purchase for the youth. The package is trendy and gives an idea of luxuriousness. These elements are very attractive to the youth. According to the research, the youth form the largest portion of the population. The age group of between 18-35 account for thirty percent of the entire population in Italy. This means that youth population is sufficient to give a formidable and viable market share. Also, the youth demographic has a significant money for purchases. Product concept The term product refers to both tangible physical products as well as services. In the case of Sara Lee, the product that we wish to market is Badedas. The first aspect of the marketing of the product is the brand name. Badedas is already a household name in the Italian market and therefore the marketing campaign will be conducted for the purpose of reinforcing the name in the minds of the consumers. It is also important to brand the product as superior in terms of quality and luxury. The needs of the consumers in the target market are a product that has an attractive package and helps in keeping the skin young. In order to meet these needs, the product has to be presented in an attractive package. This will help to appeal to the youth who are extremely image conscious. The production of the product will also be done in a manner that promotes quality. The product has ingredients to ensure that it is of premium quality. The product will also be sold in different size to suit the financial capabilities of all the sections of the target market. Specifically, the product should be sold in mini, normal and family packages. To differentiate the product from the competitors, it should be packaged in materials that are branded with the corporate colors of the company. The product is meant to be utilized in the shower rooms and thus, it should be packed in a way that it can survive the wet conditions. The product will also be perfumed to further its appeal. The essence is to meet the needs of the youth who desire a product with a captivating scent. Hence, various fragrances will be used in the product to ensure that each segment of the target market can find the scent that appeals to it. Essentially, the product is meant to make the consumer to feel good and thus the perfume will further its capability to induce a good feeling in the consumer. Pricing strategy One of the key factors in the marketing mix is the issue of price. Every business has the fundamental aim of making profits. Hence, the price of a product or service should include a margin of profit above the cost of production. However, the decision on the amount of money to put as profit margin should be chosen carefully to ensure that the product is neither underpriced nor overpriced. Badedas is an essential product for those people that take showers every day. In determining the price of the product, it is vital to ensure that the price offers value for money. Therefore, the pricing of the product will be done in a segmented manner. The product will be sold in different packages top make it possible for price differentiation. The smallest package will have the least cost while the family pack will be the most expensive. However in terms of quantity, the packaging will be done in such a way that it will be cheaper to buy the bigger packages rather than the small packages. This will ensure that the products move very fast and bring substantial profits. Offering of discounts to the customers can also be used gain market entry. During the initial marketing campaigns, the product will be sold in a value pack that is discounted. This will ensure that the market entry is fast and considerable stock is moved quickly. The target market of the youth is very price sensitive. Yet, they are also easily influenced by products that appear classy. In order to capture this market effectively, the price of the product will be pegged a slightly higher value than that of the competitors. By doing this, the product will fit within the established price ranges and still appear to be a superior product due to its slightly higher price. The price differential is important since the Badedas product is meant to be positioned as premium. Promotion (communication mix) It is a business maxim that even a good product requires some publicity before it can make money for a company. Indeed, advertising is important in order to make a product visible and highlight its advantages over the competitors. Thus, it is critical that the Badedas product be promoted appropriately to capture a huge market share. The target market for this product is the youth. Hence, the promotional activities should be conducted in places where the youths are likely to be found at. The Badedas product can be marketed in universities and colleges where the population of youths is high. Sports events and entertainment gigs are also suitable locations for the promotion of the Badedas product. The targeted audience can be reached through various media. It is common knowledge that the youth are adept with the use of technology especially internet. Therefore, promotional campaigns can be run in the various internet forums such as the social networking sites. Advertising on internet sites can be effective for reaching the youths directly. The other medium for advertising to the target market is the use of television. Messages to entice the youth to use the product can be televised as adverts during programs that youths watch. For instance, an advert can be placed during a music show. The other promotional strategy is through the use of celebrity endorsements. The youths are very image conscious and likely to be influenced by the celebrities. The use of celebrity endorsements will lend credibility to the elegancy of the product and thus entice the youths to purchase it. Also, the youths are influenced by peer pressure thus it would be strategic to create a buzz around the product. The more the youth hear about the product from their friends and celebrity endorsements, the more likely they are to purchase it. It should be noted that the competition promotes their products to a homogenous market. Their products are promoted as cutting across the demographics. Therefore, it would be critical to differentiate the Badedas product as specifically designed for the trendy youth. The advertising times for the product on television would be ideally in the evening when the youths are likely to be in the houses. Place (Distribution coverage and penetration) The Badedas products should be available to the consumers in an easy and accessible manner. From the research, it was realized that body care are mostly sold in hypermarkets, supermarkets and traditional shop outlets. Most buyers go to supermarkets to general supermarkets to purchase body care products with their usual; home shopping. It is therefore imperative that Badedas products should be strategically positioned in the supermarkets so as to catch the attention of the consumer. Ordinarily, the body care products are placed within the same section in a supermarket. Hence, it would be prudent to ensure that Badedas is placed in the most prime position to increase the chances of consumers buying it. It should be noted that the ordinary consumer simply picks the body product that the access first in a supermarket display. By simply putting the Badedas product on the front row, the rate of purchases of the product can be increased greatly. The main factor in increasing the sales of the product lies in its visibility to the potential consumers. The distribution channels also play a critical role in ensuring that the product is available to the consumer. To ensure that the products are always available in the market, the company should streamline the production and transportation lines of the product. In essence, the company can use its vehicles to deliver the product to the main distributors regularly. Once the product is in the hands of the distributors, it will be east for the retailers to access the product and stock it in their establishments. It is also important that the company should have distribution outlets in many locations throughout the country to ensure that the product is accessible and available. The use of a dedicated sales force can also assist in ensuring that the product is available to the consumers. Sales executives can distribute the product to the main dealers and even retail outlets. They can also distribute the merchandise that is associated with the product to the retailers for onward transmission to the consumers. Relevant trade fairs are also a good avenue for the distribution of the Badedas product. During these events, the sales team can conduct experiential marketing drills to encourage customers to buy the product. The customers can be encouraged to buy the product with a chance to win instant prices. Notably, the essence of trade fairs is to allow companies to showcase their products. Hence, the Badedas product can gain great exposure during the trade fair due to the free media coverage. On top of this, the clients can get a chance to purchase the product. Significant sales can be attained through the attendance of trade fairs and other industry related events. For instance, during national hygiene campaigns it would be advisable for the company to aggressively promote the product and make it available to the consumers who need it. It is expected that the attendance to these outdoor events will be dominated by the youths who form the core target market for the Badedas product. Therefore, the events offer a great opportunity to not only meet but also sell directly to the target markets who are the youth. It is important to note that the four marketing Ps should be implemented together so as to obtain the maximum benefit in terms of increased sales. These elements of marketing help an organization to define its marketing options in terms of product, place, price and promotion. In the case of Badedas, these marketing elements are implemented in the context of the youth market. The product has a market positioning oriented towards the youth hence it is important to consider their unique characteristics before laying down a marketing strategy. The main aim of the Badedas marketing campaign is to ensure that the product gains a formidable leadership of the market share in the shower category. By obtaining a huge market share in the shower sector, the Badedas product will be in a prime position of gaining overall leadership in the body care category in the Italian product. This is because it will be easier to cross sell the other related products such as liquid soap and bath products once the Badedas brand identity is firmly established in the market. The marketing campaign comprising of the four elements of place, price, promotion and product should be run aggressively and consistently until the objective of market leadership is attained. Read More