marketing assigment
TRANSCRIPT
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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
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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