Consumer Response to the Issues Identified - Assignment Example

? CONSUMER BEHAVIOUR CONSUMER RESPONSE TO THE ISSUES IDENTIFIED: In order to identify the feasibility of the product line extension strategy of Lush Cosmetics, a primary research on consumer’s response to the factors identified above is imperative. This primary research will give a panoramic view of the possible success of these product lines and will also give a practical outlook to the strategies to be taken into consideration in the years to come. In pursuit of the same objective we interviewed four Australian male respondents in the age group of 20 to 40 years. A synopsis of their responses is identified in the following table. Influencing Factors Respondent 1 Respondent 2 Respondent 3 Respondent 4 Name Stuart Jane Mark Danial Age 23 35 31 28 Perception about Body cosmetics Thinks that body cosmetics are important part of personal hygiene Thinks that body cosmetics have become a necessity Thinks that cosmetics ultimately worsen the body conditions Thinks that body cosmetics are highly important Perception about Body Lotion Thinks that they have become an important part of cosmetics Thinks that creams and shower gel can do the job Thinks that normal soaps and massage oils are the best Would certainly like to own one Description of their self Considers himself as an early adopter of new products Is not very brand loyal; Will buy any product offered at competitive price Believes in Tried and tested products Is always anxious to update his fashion statement Social Influence in Product purchase decisions He would opt for personal investigation rather than social groups Prefers to take the help from his peers before purchasing a decision. Believes that social pressures are not that important. Individuality matters more Wants to stand out from his peers in terms of the products he uses Influence of Cultural Background Thinks that culture stops him from being an early adopter Considers that culture defines the limits to his purchase decisions Considers that Culture is most important in purchase decisions Has no consideration for culture. Can opt for any product if it suits his needs Psychological Factors Thinks that the promotions is most important in motivating consumers to buy the product Thinks that the texture of the product and its physical layout is most important Thinks that the most important factor is the utility that the product provides Thinks that the linkage between consumer need and the utility of the product can motivate the customer to buy Recommendations for Aqua Mist Considers the product to be reliable because of the brand name; wants to buy the product immediately Considers that although the product is good, more work should be done on the layout of the lotion bottle and the logo Won’t buy the product as it does not offer any think new in his opinion. Wants to buy the product if it is readily available in the market and hype for the lotion Is created. Considering the responses provided by the respondents and evaluating the characteristics of Aqua Mist and the related product line of Lush Cosmetics, we can easily identify that the prospects of this product are great. If the company launches the product with a clear reference to the brand and clearly communicates the core characteristics of the body lotion, the customers will be eager to buy the product (Kardes, 2011). CONCLUSIONS AND RECOMMENDATIONS: In the introduction of the report we clearly identified that the Lush cosmetics is a well established company which has its operations running in several countries and therefore, it has the privilege of enjoying a strong brand name and some loyal consumer base. We then identified the product line expansion strategy of the company in terms of launching a new product called Aqua Mist and related product categories. When considering the decisions like product launch, it is important that a thorough research on the market conditions and the consumers of the products is made and to accomplish the task we identified some of the factors that influence the product purchase decisions of the customers. We then followed the same course of argument by providing practical evidence in terms of interview responses of some people of the target market regarding these product purchase decision factors (Kotler, 2000). The entire case illustrated above clearly suggests that the market of Australia has matured enough for the product to be launched. The customers, especially of the target market are ready to adopt the new products offered by Lush cosmetics. They have started considering personal care and body cosmetics as an integral part of their daily routine. Most of the people of the target market want to purchase new products and want to stand out from their social circles. This is the most important reason why the people want to try new products and change according to the most recent fashion trends; however, some of the people of the target market also of the opinion that body cosmetics are not a good choice as they harm the natural composition of the skin elements. That is why these people are reluctant in purchasing the products, even if they are offered by the top cosmetics companies of the country. These people want to stick to the tried and tested products and are not eager to switch to new products. Their preference is on the utility offered by the product and they wait till others of their social circle adopt the product (Lush Australasia Retail, 2010). Under these circumstances, it is very important that the company launches the product by keeping a close look on the core marketing strategies. As already discussed, it will be very advantageous that the company introduces the lotion in different price ranges according to the unique selling points of each of the variants of the product. In this way, the product will become a brand itself in the years to come and the chances of success will improve. The company should initiate a well planed distribution strategy. A clear idea of the spread of the target market will help the company in placing the products in as much proximity of the customers as possible. Departmental stores and other outlets and chain of stores can help the company in attracting large masses of target market (Walters, 2008). As it is clear from the interview responses, the company will have to launch an intensive marketing campaign at first so that the target market can feel the presence of the product and notice the distinction between Aqua Mist and other products of similar category. This promotion campaign should be characterized by heavy Television promotions and through print media. Since the company is well established in the market, ATL (Above the Line) promotion will help in attracting large chunks of the market and so the brand will penetrate into the market. The company will have to work on the people who are associated with the brand as well. These will include the sales agents as well as the celebrities who will endorse the product and any other person related to the supply chain (Jacobs, 2010). Apart from this the company will have to come up with standardized processes of production and distribution. This will improve customer experience and increase consumer satisfaction. It is very clear that Lush Cosmetics has great prospects in launching the product Aqua Mist; however, the company will have to keep a close consideration on the consumer preference and the factors which influence their product buying behaviour. A clear promotions and product development strategy will strengthen the brand name in the market and brighten the chances of company’s success. REFERENCES JACOBS, F. R., CHASE, R. B., & JACOBS, F. R. (2010). Operations and supply chain management. New York, McGraw-Hill Irwin. KARDES, F. R., CRONLEY, M. L., & CLINE, T. W. (2011). Consumer behavior. Mason, OH, South-Western, Cengage Learning. KOTLER, P. (2000). Marketing management. Upper Saddle River, N.J., Prentice Hall. LUSH AUSTRALASIA RETAIL PTY LTD. (2010). Lush times: fresh handmade cosmetics. Canterbury, NSW., Lush Fresh Handmade Cosmetics. WALTERS, S. (2008). Marketing: a how-to-do-it manual for librarians. New York, Neal-Schuman Publishers. APPENDIX Name: Stuart Age: 23 years Nationality: Australian How do you consider Body cosmetics? Are they useful? I think that body cosmetics have become an integral part of personal hygiene these days. Everyone now demands cosmetic products and in fact men have started taking more interest in this scenario. What is your opinion about Body Lotion? Body lotions have lately been introduced in the men’s category otherwise; they had always been directed towards the women. The new concept of fairness creams and lotions have made valuable contributions to the cosmetics product lines. Now, I think, they are an important part of the cosmetic products and everybody wants them. How would you describe yourself as a customer of Cosmetics? I am that kind of a person who is always in search of new products and brands. I want to test new things. If I had the opportunity, I would use the product even before it enters the market. Sometimes, I also purchase products that are not really useful for me and I purchase them just for fun. Do you think social influence plays an important part in product buying behavior? I think that my personal opinion matters more to me than other people’s opinion. I would investigate on my own for a product rather than taking anybody else’s opinion. To what extent do you think your culture reflects in your buying behavior? I my opinion, the cultural opinion of people stop them from adopting new things. They would think twice before doing anything new and I think this should not be the way it is. How do you think you are psychologically persuaded while buying a product? I am conscious of how the promotion campaigns of companies influence my buying behavior. Since I am trying a new product the only thing I can rely on is the promotion campaign of the company. Name: Jane Age: 35 years Nationality: Australian How do you consider Body cosmetics? Are they useful? I think that body cosmetics have become a necessity. You cannot do without them What is your opinion about Body Lotion? I think shower gels and creams are much better How would you describe yourself as a customer of Cosmetics? I will buy any product if it suits my needs and is offered at competitive price. I am not brand loyal at all. Do you think social influence plays an important part in product buying behavior? I value the opinion of my peers before making a purchase. It gives me a guideline about the product. To what extent do you think your culture reflects in your buying behavior? Your culture defines the limits to your purchases. You can buy anything unless it violates your culture. How do you think you are psychologically persuaded while buying a product? I am really attracted towards the texture of the product and the physical layouts of the product I buy things are more attractive to me. Name: Mark Age: 31 years Nationality: Australian How do you consider Body cosmetics? Are they useful? I think natural treatments are much better. Cosmetics are artificial and they spoil your skin. What is your opinion about Body Lotion? I would prefer Message oil and soaps to Body lotions How would you describe yourself as a customer of Cosmetics? I think a lot before purchasing a product. I feel comfortable in buying tried and tested products. Do you think social influence plays an important part in product buying behavior? I think most of my decisions are made on my own and there are no social pressures. To what extent do you think your culture reflects in your buying behavior? I think culture subconsciously affects the purchase decisions. How do you think you are psychologically persuaded while buying a product? Not much. If a product provides me utility, I will buy it. Name: Danial Age: 28 years Nationality: Australian How do you consider Body cosmetics? Are they useful? There is no doubt; cosmetics have become a very important part of life both for men and women. What is your opinion about Body Lotion? I would certainly go for one as I have been looking for one. How would you describe yourself as a customer of Cosmetics? I like to try new products. If I am given a chance to opt between a tested and untested product, I will go for the untested one. Do you think social influence plays an important part in product buying behavior? Definitely, as I want to stand out from my peers and look different. I want different products. Has no consideration for culture. Can opt for any product if it suits his needs To what extent do you think your culture reflects in your buying behavior? Not really, if a products suits my needs I will buy it without considering my culture in raw sense. How do you think you are psychologically persuaded while buying a product? If a product is promoted in a way that it looks consistent with the needs of the customer, I will definitely be attracted towards it. Read More