Marketing Analysis for David Babaii Company - Research Paper Example

 Tables of Contents 1.0 Situational Analysis 2 1.1 Current Product 2 1.2 Current Pricing 2 1.3 Current Distribution 3 1.4 Current Promotion 4 2.0 Segmentation Theory 6 2.1 Segmentation 6 2.2 Benefits of Segmentation 6 3.0 Target Market Identification 7 3.1 Geographic Segmentation 7 3.2 Demographic Segmentation 8 3.3 Psychographic Segmentation 8 3.4 Behavioral Segmentation 8 4.0 Target Market Collage 9 5.0 Completion of Discussion/Rationale of Target Market Collage Images 10 References 15 1.0 Situational Analysis The company chosen for the study is David Babaii for Wildaid and the product chosen is hydrating shampoo. The target market chosen for the study is Australia. 1.1 Current Product The hydrating shampoo provides lots of benefits to the consumers. The shampoo aims at replenishing the thirsty hairs. The shampoo contains Cupuacu Butter which is from the South American Amazon, Wild Orchids and Blue Algae Extracts. The Cupuacu Butter is a natural moisturizer that assists in creating lustrous, radiant as well as hydrated hairs. Blue Algae has been proven to be one of the ingredients effective in strengthening the hair shaft. In addition to this wild orchids help in adding moisture to the hairs, keeps hair healthy and shiny. The product is completely eco-friendly and has been effective and suitable for all hair types. The main benefits that the users of the product receive when buying the product is that the hydrating shampoo is rich in lather that assist in cleansing the scalp as well as the hairs. It also assist in purifying, protecting and eliminating the dirt, oil as well as the styling residue that tends to damage the hair and makes the hair look dull and dry. In addition to this the users of the product can also keep their hair color longer since the color-treated hair is re-hydrated and revitalized (David Babaii for Wildaid 2011). The unique feature that the product has is that it is completely Sulfate, Parabens as well as petroleum free shampoo. It has been evident that the consumers who bought hydrating shampoo of this company have also purchased David Babaii for Wildaid hydrating conditioner and amplifying (Amazon 2011). 1.2 Current Pricing During the downturn in the worldwide economy in the year 2009, it was noticed that the Australian economy was remarkably resilient (Northern Territory Government 2011). The current price of David Babaii for Wildaid Hydrating shampoo is AUD $22.95 for 400 ml while the RRP of the product has been $23.50. Therefore, the customers of the product can save 2%. It has been evident that the company quite frequently offers its products at discount rate. From the name itself it has been evident that the company strives to support the beauty of the nature since it donates ten percent of all profits to the ‘Wildaid’. Wildaid is the global wildlife conservation organization (Discount Vitamin Express 2011). The close competitors of the company are Abba, Alchemy, Art of Shaving and Head Organics. It has been apparent that most of the shampoos are formulated along with certified ‘organic ingredients’ that assist in gently cleansing the hair and the scalp. The Seven Wonders have also proved to be a close competitor for David Babaii hydrating shampoo. Matrix Biolage HydraTherapie Hydrating Shampoo is also one of the close competitors of the product. It is evident that the company uses competitive pricing strategies. Consumers can easily purchase the product online and compare the prices of these shampoos with other shampoos and make their purchase related decision. Moreover, the competitors are offering the product at the same price with the same quantity which makes it difficult to set price for the David Babaii shampoo. From this it can be revealed that the prices of the product tend to remain competitive in case of greater threat of substitute products from other brands. Therefore, in light of the stiff competition faced by the company it would be better for it to keep the prices affordable for all the classes of the society. 1.3 Current Distribution Products can reach the consumers via the distribution intermediaries such as wholesalers, retailers, agents, dealers and franchises. Distribution is one of the aspects of the marketing function that creates and provides place, time as well as possession utility to the consumers. The main objective of most of the companies must be to remove the discrepancies such as spatial and temporal. David Babaii for Wildaid has been successful in mitigating the discrepancies that hinders the reach of the product to the consumers (Havaldar and Cavale 2007). In Australia, the product can be easily purchased by the consumers. It is available at most of the stores such as drugstores, chemist shops and various emporiums. For the ease of the consumers David Babaii for Wildaid can also be purchased online. Internet has made it easier to distribute the products since it lessens the need for others to get involved in selling the product of the company. There are various online stores through which the product can be availed by the consumers. In Australia one can buy the product from TVSN, GNC, Terry White Chemist, Harrison Pharmacies, Healthy life and mega Health, various hair salons, beauty outlet and Go Vita. The company has collaborated with the Shopping Channel for their Wildaid eco-friendly hair care line. This makes it evident that there are wider consumer reach for the product. This is how the product has gained maximum popularity in Australia and has attracted most of the consumers towards its brand (Girl.com.au 2010). 1.4 Current Promotion Promotion plays a vital role in making the consumers aware of the product and its features and availability. The company has strongly advertised its products. In order to do so, it has made use of various promotional strategies. David Babaii for Wildaid has made use of the famous celebrity Kate Hudson as the brand ambassador (Pretty Pollution Pty Ltd 2010). The company makes use of the print ads as well as Television in order to promote its products. Press advertorial is also one of the means of making the people aware of the David Babaii shampoo (David Babaii for Wildaid 2011). It has also made use of the websites, newspapers, magazines for the publicity and promotion of its products. The company has teamed up with all-around wildlife attention alignment Wildaid and works for a cause. It has been evident that the company makes use of various sales promotion tools such as coupons, discounts and so on. Sales promotion tools have been effective in attracting the customers in a short span of time. One of the additional features that one gets to view in the company’s website is the tips on hair care by David Babaii. David Babaii has been the hair dresser of the many celebrities. In addition to this the company has made use of various social networking sites such as twitter, facebook and blogs such as hairjunky. 2.0 Segmentation Theory 2.1 Segmentation Market segmentation can be stated as the process whereby the different group of the users is identified within the market. These users can be targeted by offering separate products as well as the marketing programmes. It tends to isolate the traits which differentiate a certain set of consumers from the entire market. There are four bases through which the consumer market can be based. They are geographic segmentation, demographic segmentation, psychographic segmentation and product related segmentation (Croft 1994). 2.2 Benefits of Segmentation Segmenting a market enables a marketer to identify and target the exact segment of consumers that suits their products. The four bases of market segment are needed to be kept in view in order to derive the benefits from segmentation. The first criteria are that the market segment needs to present quantifiable purchasing power as well as size. The second criteria are that the marketers need to find a way to promote their products effectively and to serve the market segment. Thirdly the markets need to identify segments that are big enough to provide them good potential profits. The fourth and the most important criteria is that the firm needs to aim at segments matching its marketing capabilities. The main benefits of market segmentation are that it tends to provide a tool through which the company’s competitive position can be improved. It tends to bring an increased understanding of the needs of the users, their decision criteria as well as approach. It also provides a clearer path to the management of current products (Kurtz, Mackenzie and Snow 2009). Market segmentation will enable the David Babaii hydrating shampoo to compare the various marketing opportunities of the market segments by studying the customer’s needs and potential, satisfaction level of the customers in each of the market segments as well as competition. The resources of the organization can be more effectively utilized since the budget allocation of resources can be done effectively (Havaldar 2005). 3.0 Target Market Identification 3.1 Geographic Segmentation The country targeted for the study is Australia. It ranks sixth in terms of largest nations of the world. It can be observed that it is the only country to occupy the entire continent. In spite of the fact that it is a dry and a flat continent, the country has extreme topographical conditions and climate. The population of the nation is larger than 20 millions and is an ‘independent western democracy’. The major cities of the country are Brisbane, Perth, Melbourne, Sydney and Adelaide. The geographic size of the country is around 2.97 million square miles. Since the country has tropical climate and the climate is quite humid. The hair tends to be oily because of such a humid climate. Thus, in that case the David Babaii shampoo is of great help in this country (KidPort 2011). 3.2 Demographic Segmentation The specific age group for the product can be 18-35 year aged people. It can include both males as well as females. The shampoo can also be targeted towards the kids since it doesn’t have any harmful chemical which tends to damage the hairs. The Australian economy can be said as being dominated by its services sector, even if its economic success is based upon the abundance of agricultural and mineral resources. It has been evident that Australia has a very high literacy rate. Near about 99% of the people of Australia are literate. This has a greater impact upon the product. It becomes quite easier to make the literate people understand the benefits of the products in comparison to the illiterate people (Trading Economics 2010). 3.3 Psychographic Segmentation The standard of living of the people of Australia is also quite high in the entire world (Slideshare 2009). The company seems to have segmented its customers based upon the living standards, life style as well as other psychographic characteristics. It has been evident that Australians are compulsive buyers who possess some of the biggest credit cards debts in the world. They love shopping a lot. This can be considered as one of the strongest point for the David Babaii Hydrating Shampoo. The purchase motive of shampoo has been to have healthy and beautiful hairs in addition to clean scalp. The product can be used by the Australians daily since it has no side effects. The people who are frequent traveler are the target customers of David Babaii shampoo. 3.4 Behavioral Segmentation It can be revealed that the behavioral segmentation at times overlaps with the psychographic segmentation since it also includes consideration of the consumer’s behaviors, perception, attitudes and beliefs. Therefore, the marketers of the David Babaii Shampoo also pay much attention since the company faces huge competition from the major companies in Australia. It has been evident that both the male and the female have recognized the need for appropriate hair care since the inconsistent diets, stress and deleterious effects of weather tends to damage their hair. The best thing to do in this case is to make use of the appropriate products that are hygienic and easy to use. Therefore, in this case this group of people can be best targeted since the shampoo is free from harmful chemicals and provides a lustrous and shiny look to the hairs. The David Babaii shampoo has been a wonderful product that is eco-conscious and is designed for all hair types (HairSalons 2011). 4.0 Target Market Collage 1. Density 2. Climate 5. Age 6. Gender 3. Region 4. Country 7. Family Size 8. Income David Babaii Hydrating Shampoo 9. Loyalty Status 10.Purchase Occasion 13. Lifestyle 14. Attitude 11. Benefit Sought 12. Usage rate 15. Personality 16. Values 5.0 Completion of Discussion/Rationale of Target Market Collage Images Characteristics of Target Market given in Section 5.0 of report (abbreviate to fit the space provided) Image used in collage to illustrate characteristic (Give image number) Describe how the image chosen illustrates the characteristic – include rationale for words used as well. Geographic Density 1 The picture depicts the geographical map of Australia. The market of David Babaii Hydrating Shampoo will be large where the population density is high. Climate 2 The picture illustrates the climate of Australia. Every business must consider the climatic condition of the country where it operates. The David Babaii Hydrating Shampoo is very suitable for Australian climate. Region 3 This picture shows the region of Australia. David Babaii Hydrating Shampoo can be used in any region of Australia especially the metropolitan area and places such as Queensland and Victoria which has warm weather. Country 4 The picture shows the country map of Australia. The product demand is more in the cities of Australia. Demographic Age 5 David Babaii Hydrating Shampoo is targeted to age group of 18 – 35. Gender 6 David Babaii Hydrating Shampoo can be used by people of every gender. Family Size 7 The family size can affect the sales of the product. If one person of target age group uses the product it can influence the other family members to use it. Thus, larger family size will be beneficial for more sales of the product. Income 8 This picture shows the income demographic of Australian people. Average incomes of Australian people are quite good. Thus, the cost of David Babaii Hydrating Shampoo products is affordable for majority of the people. Behavioral Loyalty Status 9 This picture shows the loyalty of customers. As David Babaii Hydrating Shampoo provides many benefits to the hair, thus when customers get used to with the product they will prefer David Babaii Hydrating Shampoo and make a habit of it and in turn will become loyal to the brand. Purchase Occasion 10 The purchasing pattern of Australian people is quite higher than other developed countries. Thus, the sales of David Babaii Hydrating Shampoo will be higher in Australia. Benefit Sought 11 David Babaii Hydrating Shampoo provides many benefits to customers. It cleanses the hair, replenishes ‘thirsty hairs’ and eliminates the dirt, oil. After using it consumers can feel their hair soft, manageable and more stylish. Usage Rate 12 This picture shows the usage rate of shampoo product. People of Australia prefer to use shampoo, so the usage rate of David Babaii Hydrating Shampoo is high in Australia. Psychographic Lifestyle 13 The picture shows the lifestyle of average Australian people. David Babaii Hydrating Shampoo suits the lifestyle of the customers of Australia. It can make the hair stylish as well as shiny and manageable. Attitude 14 The picture shows the attitude towards purchasing the product. Many customers prefer to use David Babaii Hydrating Shampoo because of its several benefits. Personality 15 The picture shows the basic personality of Australian people. The personality of customers must be recognized to successfully promote the product. Values 16 When launching the product the company has to consider that the cost of the product and whether the perceived value is proportionate or not. The customer satisfaction will increase the value of David Babaii Hydrating Shampoo. References Amazon. 2011. David Babaii For Wild Aid Hydrating Shampoo, 13.5-Ounce Bottle. http://www.amazon.com/David-Babaii-Wild-Aid-13-5-Ounce/dp/B001AWXKTA. Croft, Michael J. 1994. Market Segmentation: A Step-By-Step Guide To Profitable New Business. New York: Routledge. David Babaii for Wildaid. 2011. DB4wildaid. Hydrating Shampoo. Accessed April 09, http://www.db4wildaid.com/hydrating_shampoo.aspx. David Babaii for Wildaid. 2011. DB4wildaid. Ads and Commercials. Accessed April 09, http://www.db4wildaid.com/ads_comm.aspx . Discount Vitamin Express. 2011. Discount Vitamin Express. David Babaii Hydrating Shampoo. Accessed April 09, http://www.discountvitaminsexpress.com.au/cgix/display.asp?prodID=30689. Girl.com.au. 2010. David Babaii & Kate Hudson Wildaid Haircare. http://www.girl.com.au/david-babaii-kate-hudson-wildaid-haircare.htm . Havaldar, Krishna K and Cavale, Vasant M. 2007. Sales and Distribution Management: Text and Cases. United States: Tata McGraw-Hill Education. HairSalons. 2011. Help the Environment with Bodyshop Hair Care Products. http://www.hairsalons.com.au/articles/. Havaldar, Krishna K. 2005. Industrial Marketing: Text And Cases. United States: Tata McGraw-Hill Education. Kurtz, David L, Mackenzie, H. F and Snow, Kim. 2009. Contemporary Marketing. United Kingdom: Cengage Learning. KidPort. 2011. Australia Geography. http://www.kidport.com/reflib/worldgeography/australia/australia.htm . Northern Territory Government. 2011. External Economic Environment. http://www.budget.nt.gov.au/papers/econ/3.external_enviro.pdf. Pretty Pollution Pty Ltd. 2010. Latest News. http://www.prettypollution.com.au/_webapp_228111/Pretty_Pollution_wins_David_Babaii_for_WildAid_online_for_Australia# . Slideshare. 2009. Literacy Rate and Standard of Living in Australia. http://www.slideshare.net/ansley22/literacy-rate-in-australia . Trading Economics. 2010. Australia GDP Growth Rate. http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=AUD Read More