Marketing Plan for a New Tattoo Removal Cream - Case Study Example

Introduction Originally, tattoos were used for various purposes in order to signify rank or status, spiritual or religious devotion and also as a mark of identification. They involve insertion of ink deeper the skin layer and can either be permanent or temporary tattoos. Today a tattoo is used as a style statement which means that it needs to be removed and replace several times in order to fit to the contemporary world. Removal of permanent cream call for special treatment and Amazing Ideas provides you with the best cream for this purpose. Amazing Ideas Company was developed in 2000 in order to provide brilliant solutions for various issues arising in the contemporary society. The company focuses coming up with new inventions in various sectors such as food and cosmetics. Its reputation has been build through provision of the best solutions in various sectors in the changing world. This report focuses on company’s introduction of a new tattoo removal cream in the Australian market in order to address the factor of style by allowing you to change your tattoo any time. This report provides the overview of the industry, analyses the current opportunities in the market and identifies the market target, segmentation and positioning for the new tattoo removal cream. Industry definition This section provides the definition of the cosmetics industry where our new product belongs. It gives the nature of the industry in form of its flexibility in the changing world in regard to our new product. It further defines various classification of our product under the cosmetics industry in order to have a clear view of the competitors in the industry as well as the market target. Tattoo removal cream is in cosmetics industry, an industry that is rapidly changes given the advancing technology and fashion which calls for flexibility in order to adapt to changes. The cream remover falls into the skin care cosmetics category, then cleansing cream subcategory and finally, it is a special purpose cosmetic. There are others different methods of tattoo removal apart from the cream which might be one of the competitors in this industry. These methods include surgical excision among others. in addition, there are some tattoo removal cream brand that already exist in the market today might become the main source of competitors. Thus, tattoo removal can be further classified into the methods of removal (Usunier 2000). The macro-environmental analysis includes economic, social, technological, environmental, political and legal factors. Given that Australian growth rate better, there are more expectations of potential customers due to increase income. There is raised awareness in regard to natural products which may pose as a challenge to our product and on the other the likelihood of people to change tattoos to improve their appearance attracts more customers. Advancing technology calls for more changes which is also a boost to the industry. In addition, the concern on the use of chemicals for consumer products advocates for strict regulations in such an industry. This may lead to increase in taxation calling for more expenses. Identification of such factors in the environment helps in clear identification of competitors. The market target in this case generally involves the Australian people as the potential customers (Prime 2004). Competitor overview The main competitors in this industry are Tat B Gone and Dermasal. Tab B Gone maintains their market by providing their products at low prices making it easily affordable. However, the company is also faced by challenges where the main one is poor outcome and presence of toxic substance such as hydroquinone. The poor outcome is related both coloured and black tattoos (Tat B Gone 2012). Dermasal on the other hand is regarded as an effective removal cream by producing by excellent outcome for black tattoos while it produces poor results for coloured tattoos. However, the product has faced with various challenges such as price and presence of harmful chemicals. For instance, it contains hydroquinone as a dangerous ingredient and at the same time, it price is double that of Tab B Gone (Dermasal 2012). Macro-environmental analysis This analysis will help in understanding the external factors and their impact on the new product in order to provide input for the new product’s strategic planning, target opportunities and risks for the product, and to gather enough competitive intelligence. In this case, the new product will be introduced into the market while crucial factors such as competition, marketing mix as well as the target are well defined. This will help gain a competitive advantage of the new product thus increasing sales and profit. Politically, Australia is aim at economic growth where industries such as cosmetics are supported through improvement in the quality of infrastructure. The support of the industry means rapid growth in this sector which offers more opportunities for investments. The rapid growth of the industry leads to stiff competition whose implication is reducing of the prices in order to win the potential customers. In addition, this will lead to research and development which adds more costs to the production of the new development. Economically, given that Amazing Ideas is located in Australia; its main competitors are foreigners. This means that the taxation rates will be higher for foreigners and slightly lower for this company. Lower rates of taxation for the company will give it an opportunity to market its products at lower prices as compared to its competitors. In this case the company is able to manipulate its prices in order to gain a competitive advantage. Social trends will have a positive impact on this industry. As the population is aging, the removal of tattoos will be in demand as people try to fit in the modern world through different and stylish tattoos. This means that the product will be of more demand in order to serve the increasing population that needs for change. In this case, increase in demand will lead to increase in sales and price of the products which serves as an opportunity. With the technological advancement, new products will be created. This will lead to innovation which is attributed to research and development in order to improve the quality of the product. Thus, in such an industry, there is a possibility of a rapid development of a new product. This will be of more benefit to the consumers as the price of the products will be reduced. It will also be of benefit to the organisation due to the favour from the new product. This is an opportunity for this company as well as the growth of the entire industry. Legal factors will also apply to such an industry which involves use of various chemicals. Various regulations imposed by Australian government for the protection of its citizens will increase the cost of introducing the new product to the market. Stricter regulations in this industry will make its increase the challenges of introducing a new product into the market acting as a threat to the new entrants (De Mooij 2003). Consumer behaviour analysis This section will assist the company to take advantage of the buyers as well as their habits.. Personal, psychological and social factors will be essential in this section. This will help in understanding how potential customers will react to the company’s selling strategy (Czinkota and Ronkainen 2002) Need recognition Needs recognition will be created by adverts especially in activities that require exposure of the tattoos such as sporting activities in televisions and through internet. This will trigger the consumer decision to buy the product. Informational speech The consumer’s options in this section will be the price, the quality as well as the package of the product. The internal factors involve triggering the memories of frequent purchases in the company’s products. The external forces include magazines, sales persons. Evaluation alternatives The company will use the brand of its common products to attract the consumer’s alternatives. Purchase decision Location, time availability and sales will be considered Post purchase behaviour The loyalty of the customer will be gained through discounts and customer support (De Mooij 2003) Justification of segmentation Segmentation will be based on age where the main focus will be the youths and young adults. Thus, the focus will be the range between 20 to 40 years. This is because most tattoos are preferred by the youths and young adults and it is the same range when one may wish to change the tattoo due to different factors. These include sports, class and marriage among others. for instance, it is at this age group when one may wish to show support of different celebrities whose familiarity varies with time. This needs a removal to replace with another (Kotler and Armstrong 2006). Profile segments The profile segments in this case include class, status, occasion, and purpose. Different people at this age will be like to be classified into groups according to the people they walk with such as basketball players. Others may prefer tattoos for different occasions such as Olympics. Conclusion The marketing of the new product will depend of the following factors lower prices, research and development to be more innovative and targeting on the middle ages as the potential customers. Reference Czinkota and Ronkainen (2002), International Marketing, Thomson South-Western. De Mooij (2003), Global Marketing and Advertising, Understanding Global Paradoxes, Sage. Dermasal 2012, http://dermasal.com/ Kotler and Armstrong (2006), Principles of Marketing, Prentice Hall. Prime et Usunier (2004), Marketing international, Développement des marchés et management interculturel, Vuibert.Tat B Gone 2012, http://www.tatbgone.com/ Usunier (2000), Marketing across Cultures, New York: Prentice Hall. Read More