marketing assigment

16
1 Oregano is a dual product which is combine with the toothpaste and facial cleanser. This product is made from variety of herbs. Within the latest research and development (R&D), we manage to create or made this kind of product. Why we create this product? This is because of we get a lot of information and we also do some observation regarding the habits or routine that some people might do. As we know, today’s people are busy with their work and carrier. So they might not have enough time to brush their teeth and wash their face. According to this observation, our company decide to produce a new product. That is TWO IN ONE function toothpaste with facial cleanser.

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Page 1: Marketing Assigment

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Oregano is a dual product which is combine with the toothpaste and facial cleanser.

This product is made from variety of herbs. Within the latest research and

development (R&D), we manage to create or made this kind of product. Why we

create this product? This is because of we get a lot of information and we also do

some observation regarding the habits or routine that some people might do. As we

know, today’s people are busy with their work and carrier. So they might not have

enough time to brush their teeth and wash their face. According to this observation,

our company decide to produce a new product. That is TWO IN ONE function

toothpaste with facial cleanser.

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Introduction Stage

The introduction stage start when a new product is first launched. Introduction

takes time and growth rate is expects to be slow, therefore profits are negative or low

because company need to afford high distribution and promotion expenses.

Our new product just launch in the market and it’s unknown to a lot of customers, so

we have to spend money to promote our product. The promotion that use by our

company is giving discount. By giving discount, we can gain competitive advantage

from the pricing and get customers attraction. Our company is trying to maintain a

long run in the market, therefore we are trying to get as much customers attention as

possible and making more potential customers in this stage.

Growth Stage

If the new product satisfies the market, it will enter a growth stage, in which sales

will start climbing quickly. It will not only attract more buyers, but also will attract

competitors enter the market because of the opportunities for profit. The increase in

competitors leads to an increase in the number of distribution outlets, and sales jump

just to build reseller inventories.

Our company can save up a lot of promotion costs in this stage because it’s spread

among the competitors. In this situation, our company will use new strategy to gain

competitive advantage such as improve product quality or features, example: we can

add new flavors to our products to target others segment. If our company enter critical

situation, we can also use the strategy that lower the product price to gain competitive

advantage.

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Maturity Stage

If a product’s sales growth slowdown, it will enter the maturity stage. It poses a

strong challenges to marketing management in this stage because most of the products

are in this stage.

In this stage, our company expect that the sales growth will growth slow or drop

because the number of competition is increasing. Therefore our company have to

mark down prices, increase advertising and sales promotion, increase expenses in

product development to maintain our competitive advantage. Hence, our company

will modify the market and product offering. Our company have to target new users

and new market segments to increase the size of market, example: we will produce

the product with less chemical ingredients that suitable for children use.

Our company will also use a strategy to increase usage of present customers. The

strategy is organizing a lucky draw event every half year. The customers will have a

chance to involve in the lucky draw if they buy our products, the more the customers

buy, the bigger the chance to win in the lucky draw.

Our company might also modify the product by changing the characteristics of the

product, such as quality, features and packaging. We can produce a whole new

product that is small in packaging and easy to bring for those users bring to outstation

or vacation. We can also change our packaging to a recyclable product to attract users

that support the Go Green event.

Decline Stage

After about 1 year the company will enter this stage, the sales of most products

forms and brands eventually dip. Sales may plunge to zero, or they may drop to a low

level where they continue for many years.

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Our products’ sales decline for a lot possible reasons such as shifts in customer tastes,

technological advances and increased competition. As sales and profits decline, our

company will cut the promotion budgets and reduce the product prices further.

Carrying a weak product can be very costly to our company because it delays the

search for replacements, creates a lopsided product mix, hurts current profits, and

weakens the company’s foothold on the future.

Our company can choose to maintain, harvest or drop the declined product. After

discussions, our company choose to maintain the product. To maintain the product,

our company will try to modify the product hope to moving it back into the growth

stage, example our company will increase the new features such as not only wash face

and brush teeth features for our product, but also can wash hair and wash body.

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Gender segmentation

Oregano’s product are more suitable for women and younger teenagers. Women

and younger teens always trying to find the best product n give good and fast effect

that suit their skin. Recently, there are a lot of products in markets that can be apply

just for one functions, but our products make a special and different product from

others which is consists of three functions, there are functioning as facial face,

moisturised lotion and also toothpaste.

Income segmentation

Our markets targeted the society with middle income to use our products. Our

product is not expensive in price and relevant for the middle income and below using

this product compare to the other product. While doing promotions and advertising of

our product, we trying to convince the targeted consumer to buy our product. Our

company believed that after consumers use our product, there will be more customer

buy our product. Usually, the targeted consumers will influenced their family, friends,

relatives and neighbours to try products. Our company target customer who’s their

income is about RM 3000 to RM 5000.

Age and life cycle stage

Usually, consumer needs and wants change with age. Because of that, our company

use an age and life cycle segmentation to attract the targeted consumers. For

examples, our company promote Oregano to the young teenagers as cheaper products

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to have and can help them from having oily face, pimples and looking fresh to others.

For the woman adults, Oregano offers that it can help them having a good condition

of teeth, anti-wrinkles and can elastic their face in just five days.

Psychographic Segmentation

Our company products which is Oregano has three functions. There is work as

facial skin, body lotion and toothpaste. For our company, personality variables are

more essential for segmentation because it can help our company to choose a targeted

consumers for our products. One of the best way to know the consumers personality is

our company make a survey at a particular place. As a results, a lot of woman would

like to try our products. This results show that the consumers might be does not find

the suitable products to use, our products are different from others and special which

is consist of three functions and because of the lack effect to them. Our strategy is we

will convince them about this new product and give a discount for a trying packaging

products to make them believed and satisfy with our products.

Behavioral Segmentation

A type of market segmentation based on differences in the consumption behavior of

different groups of consumers, taking into account their lifestyles, patterns of buying

and using, patterns of spending money and time, and similar factors.

Occasion segmentation. Dividing the market into segments according to occasion

when buyers get the idea to buy, actually make their purchase, or use the purchased

item. It always occurs when any celebration around the corner. Everyone will get out

to market around their house to shopping and get ready for celebration. At this time,

the company will make a lot of discount or less sales.

Benefit segmentation. Dividing the market into segments according to the different

benefits that consumers seek from the product. The benefit that customers get from

the choosen product. That was for customers comfartble.

User status. Dividing into nonusers, ex-users, potential users, first time users, and

regular users of the product. Customers choosing the product base on their status.

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They willing to take any expensive product for their daily usage. It’s for their

satisfaction. It was also based on gender, age, lifestyle and more.

Usage rate. Also can be segmented into light, medium, and heavy product users.

How many time, how long the customers use the product.

Loyalty status. Consumers can be loyal to on brands that they believe and use of

that types of brand every time. A loyalty consumers will recomanded to everyone

about the product after they use or buy it.

Geographic Segmentation

Collecting and analyzing information according to the physical location of the

customers or other data source. Geographic segmentation is often used in marketing,

since the company selling products and services would like to know where their

products are being sold in order to increase advertising and sales efforts there.

Our team selling a product named Oregano that function as toothpaste and facial

skin. We are target this product to be market at Kuala Lumpur and it would be market

to everyone regardless of race, religion, skin tone, and any weather and situation.

Our team target to be market at Kuala Lumpur because of the strategic and is the

focus of a lot of people. There be many spots as the area is a shopping and

entertainment center as well as it made interesting and attractive place to conduct

business.

Our product also target to be market to all people regardless age. Our product are

user friendly because from the babies to the older can use this product. It was suitable

for sensitive skin also.

Beside that, this product is can use for muslims and non-muslims also. Our

products is ecofriendly products and doesn’t use any prohibited goods such as animals

fats or alcohol. It was suitable to be use for pray time also.

Last but not lest, we were target our products to be market at Kuala Lumpur

because the climate change. The weather here is hot and rainy all the year round.

During the dry season, the sun-exposed skin will become dry and flaky. Our pruducts

prevent it from happening because it acts as a body lotion while protecting skin from

the sun. when the rainy season, our skin will become dull because of not getting

enough sunlight. With Origano, the problem can be solve.

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80%

20%Yes

No

Below is our survey in the market;

1. Was our product useful?

Appendix 1

2. Was our product is easy to use?

Appendix 2

3. Does our product is benefit to you?

Appendix 3

4. Does our product give you any side effect yours healthy?

Appendix 4

Yes80%

No20%

Yes No

0%

100%

Yes

No

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5. How about our product price?

Appendix 5

6. How do you know about our product?

Based on the survey, we know that our product is useful. 80% of the population said

that oregano is useful. This is because, our product give them to manage their time

more wisely. While another 80% said that our product is easy to use. How to say easy

to use? This is because they can use our product indirectly while they brush their teeth

and they also can wash their face. That’s mean they can do two thing in one time.

80% of the result showing, our product does not give any side effect.

From the observation, some people say that is product is quite good and can

quickly absorbed into their face skin for deep and lasting hydration. While for teeth

our product is also made from mint, so it’s make customer mouth refreshing because

of the mint ingredient. The price for our product is very affordable. From the result,

we know that 70% is saying our product is fair and 10 % is saying our product is

cheap. Therefore, our product are able to buy from different income. We also have

20%

20%60%

High Cheap Fair

0

2

4

6

8

Friend Magazine Internet / Television

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target customer from university student because they also always rushing and buy

with their class, tutorial and assignment. Customer will be able to find our product on

internet or television. From the observation result, we can assume more than 50% get

information about our product.

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Benefits of using Oregano toothpaste:

1. Oregano Toothpaste Get Rid of Pimples

There are two ways that Oregano toothpaste can get rid of pimples or acne. First, it

dries up the skin or the affected area which in turn reduces the size of the pimple and

secondly, Oregano toothpaste acts like a mask drawing out the impurities from the

skin. Not all toothpastes are good for the treatment of pimples.

Oregano Toothpaste dabbed lightly on your pimples overnight can help get rid of

them. Only use a small amount as the toothpaste can be very drying to your face.

2. Oregano Toothpaste Suitable for everyone to use

Oregano toothpaste is an organic toothpaste, so it is suitable for everyone to use.

Oregano toothpaste are 100 percent natural and free of chemicals, dyes, flavourings

and fragrance. Organic toothpaste is soft and causes no injury to the enamel. People

who suffer from gingivitis, mouth ulcers and wounds in the mouth may find that using

organic tooth paste helps diminish these problems. Besides, toothpaste whitens teeth

to a near brilliant shine in a very short period of time.

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Pricing Strategy

How much we need to charges for a new product? If we charge too much, consumer

won’t purchase our product. If we charges too low, the profit we earn, we can’t cover

the production cost. But when we have pricing strategy, we can solve the problem.

We have the pricing strategy, we can meet our business goal.

Firstly, we can use market skimming pricing (price skimming). This strategy is

setting a high price for a new product to skim maximum revenue layer from the

segments willing to pay the high price. For example, we can fixed our price at a

higher price that is RM 25 per piece of Oregano toothpaste with facial cleanser. After

a few week of selling, we get feedback from consumer. If the price was higher, we

can reduce the price until a certain level.

Besides that, we also can use market penetration pricing. This is setting a low price

for a new product in order to attract a large number of buyers and a large market

share. For instance, we sell our product the price of RM 15 per piece. We need a

lower price to compete with our competitor.

Furthermore, we can use the price adjustment. After a few month that our product in

the market, we can have a price adjustment such as, discount and allowance pricing,

segmented pricing and promotional pricing. Discount and allowance pricing is

reducing price to reward customer responses such as volume purchase, paying early

or promoting the product. For example, when a customer purchase more pieces of

Oregano, we can give them a special discount to reward them for supporting us.

Segmented pricing is adjusting prices to allow for differences in customers, products

or location. For examples, we can give a special price for senior citizens or the low

income family. They don’t have much money to purchase an expansive daily life. If

we sell them a special price, we can reduce their barriers.

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Lastly, price strategy is very important for a new product. We should clear

understand what is goal before we plan. Have a good, strategy, company will earn,

when your strategy are bad, maybe your company will lost.

Positioning Strategy

Choosing a right positioning strategy would help the company to sell the product

smoothly. There is a few positioning strategy, such as more for more, more for the

same, the same for the less, less for much less and more for less.

More for more positioning is involve providing the most upscale product or service or

charging a higher price to cover the higher cost. A more-for-more market offering not

only high quality, it also give prestige to the buyer.

More for same positioning is companies attack a competitors more for more

positioning by introducing a brand offering comparable quality at a lower price.

Besides that, the same for the less is can be a powerful value proposition. They didn’t

offer different or better product, they offer many of the same bands as a department

store.

Furthermore, less for much less is involves meeting consumers’ lower performance

or quality requirement at much lower price. More for less positioning is the wining

value proposition. The important things in the positioning strategy is that each

company must develop its own winning position strategy.

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Advertising & Promotional Plans

We will sale Oregano toothpaste through three advertising media: Internet, Television

and Radio.

a.) Internet

Advertisement or promoting Oregano toothpaste through internet is the perfect

way because our main target is public. Through the internet people will be aware

about the Oregano toothpaste product.

When the people open the site of OREGANO. The site would be www.

Oregano.com. and they also can order it from the internet.

B.)Television

Television is a powerful advertising medium because it creates impact through sight,

sound and movement .The interaction of sight and sound offers tremendous creative

flexibility and makes possible dramatic life like representations of products and

services.

Almost all the toothpaste brands promote their brands through television

advertisement. Because TV has a wide audience that has a great appeal for companies

selling staple items like toothpaste with general target markets.

C.)Radio

Radio is considered by many advertisers as an ideal medium due to its ability to reach

specific target groups e.g. teenagers, racing followers or grocery buyers. Radio

advertising covers spot adverts (usually 15 or 30 second), promotions or talkback/DJ

discussions. Most radio stations offer packages which include production and

extension of your radio campaign through their websites.

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Channels

We consider a distribution channels that is indirect marketing channels. This channels

containing one or more intermediaries. Firstly, we will sale our product to wholesaler.

After that, we sell our product to retailer through wholesaler. For example, we will

sales our product to supermarket or pharmacy. Lastly, we will sales our product to

consumer through retailer.

Producer wholesaler Reatailer consumer

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- Priciples of Marketing, Philip Kolter . Gary Armstrong, 2012 Pearson

Education Limited