Product Testing With Costumers In Different Markets Marketing Essay

Product Testing With Costumers In Different Markets Marketing Essay

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Ideas generated during brainstorming session can be in two ways. Those two ways are the marketing ideas and marketing strategies. Good knowledge of target market is needed in order to develop a sellable product. Generally, the sources of marketing ideas came from the internal sources, competitors, customers' comment and recommendations, distributors and suppliers as well. Nowadays, the ideas also came from the other sources such as the Internet. Because of the rapid grows of Online Marketing, it provides the wide range of the product market availability.

The marketing strategies emphasizes on those factors including pricing, product design, distribution channel and promotional efforts. The strategies applied must be appropriate according to customers' market demand and ability to be commercialized. For examples, the pricing must be coordinated with product's features, design, quality satisfaction and value for money. Below are the ideas of our marketing strategies.

PRODUCT

First thing in producing an effective product it is a must to identify the market. In order to meet this requirement a market research will be conducted as to target key market segment size and growth which will identifies the groups of people with the same characteristics such as age, gender, attitudes and lifestyle. This information is beneficial in helping us to understand the development of our new product. The market research to costumers will be conducted in a number of criteria which includes:

Focusing groups to listen to costumers directly

Colleting testimonial and feedback of costumers through a categorized of different research methods

Product testing with costumers in different markets.

Product Naming

The second thing is to name our product. After final discussion with all the team members we had come out with a name "La piel Hermosa Young" which is from Spanish word means beautiful skins. The naming of our product must be meaningful as so to attract the customers to purchase the product.

Product Feature

Basically, La piel Hermosa is a skin care focusing at teenage girls who do not want medicated products instead they want a regime for their normal skin. Competitor products tend to face this problem because their product are more focused and offer to medicated solutions. Therefore, this will give our product competitive advantage. Moreover, La piel Hermosa Young will also provides a unique bridge between the teenage market and the adult market.

Thus, to make our product a success we will make it more efficient and more consumers friendly. This feature will resulted in a number of changes.

We will remove alcohol from our product and used natural sea salts and minerals in it

We will introduce a new modern pack design with a flower pattern and softer colors to appeal to younger women

We will introduce a larger pack sizes.

Each of these will help to strength the product range, to better meet the needs of the market.

Corporate responsibility

Most of these will give an impression that La piel Hermosa Young commit to the environment. Its corporate responsibility approach aims to:

Reduce packaging and waste which we will use larger pack sizes

We will use more natural products by including minerals and sea salts in the formula

We will increase opportunities for recycling such as using recyclable plastic in its containers.

PRICING

The major things that will affect the end price of a product are the costs of production and the business need which is to maximize our profits or sales. Thus, a product price also requires providing value for money in the market in order to attract customers to purchase.

Pricing strategies

The pricing strategies that we are going to use is cost based pricing. This means that it can either cover costs or include an element of profit. These cost based pricing is focuses on the product and does not take account of consumers.

The second pricing strategy is the penetration price. It means an initial low price which to ensure that there is a high volume of purchases and market share is quickly won. This strategy is also to encourage customers to develop a habit of buying.

As for the last pricing strategies is the Price skimming. It means an initial high price for a unique product to encourage for those who want to be 'first to buy' to pay a premium price. This strategy helps a business to gain maximum revenue before a competitor product reaches the market.

Before launching the price for La piel Hermosa Young, we also had to take into account that the target market will focus more on both teenage girls and mums buying the product for their daughters. This meant that the price had to offer value for money or it would be out of reach of its target market.

Price leader

In order to make La piel Hermosa Young as one of the leading skin care ranges meeting the beautifying needs of this market segment, we must considered of an effectively price leader. This means that we must sets the price level that competitors will follow or undercut our product needs to regularly review prices to ensure that it's pricing remains competitive.

As for the pricing strategy of La piel Hermosa Young, we will sell the products to retailers at one price. Therefore the retailers have their freedom to use their own strategies for sales promotion. The sales promotion can be relates to the competitive nature of the high street. Below are the criteria:

Loss leader which means we sells for less than it cost to attract large volume of sales, for example by supermarkets

Discounting alongside other special offers, such as 'Buy one, get one free' (BOGOF) or 'two for one'.

PROMOTION

Promotion is about how we can promote our product where to tell customers that products are available and persuades them to buy. Promotion can be in two ways which are either above the line or below the line. Above the line promotion is directly paid such as television, and newspaper advertising. On the other hand, below the line is means where the business uses other promotional methods to get the product message across.

Promotional activities

Promotional activities include:

The purpose of events or trade fairs is to help on launching a product to all the audience. Events may be business to consumer (B2C) whereas trade fairs may be business to business (B2B).

Direct mail can reach a large number of people and it is cost effectively. However is not easy to target specific consumers.

Public relations (PR) include the different ways a business can communicate with its stakeholder such as newspaper press releases. Other PR activities include sponsorship of high profile events such as LIMA or the Asian Festival, as well as donations or participation in any charity events.

Branding a strong and consistent brand identity is to differentiate the product and helps consumers to understand and therefore they will trust the product. This aims to keep consumers buying the product in long term.

Sales promotions are actually a competitions or sampling. This is to encourage consumers to buy products in the short term.

As for our products, we will choose promotional strategies that reflect the lifestyle of its audience and the range of media available. We realize that a 'one way' message, using television or the press, is not as effective as talking directly to its target group of consumers. Therefore La piel Hermosa Young does not plan to use any above of the line promotion

Consumer-led promotion

The promotion that we are going to use for La piel Hermosa Young is consumer-led. Using various below the line routes, we identify ways of talking to teenagers and their mums directly.

The key part of our strategy is to use our product as the product samples. These allow customers to touch, feel, smell and try our product. Therefore, we will provide a million samples of La piel Hermosa Young products to be given away. These samples will be available through the website, samples in stores or in goody bags given out at our roadshows up and down the country.

Moreover, we plan to launch an interactive magazine which is called G&S (Girls & Skins) to raise awareness of the brand. The concept behind the magazine is to give teenage girls the confidence to become young women and to enjoy their new found independence. Communication channels are original and engaging to enable teenagers to identify with La piel Hermosa Young. The magazine focuses on the first time experiences about the La piel Hermosa Young as to being their first skincare routine. It will be promoted in the advertisement of Livestyle channel

In conjunction with G&S, for La piel Hermosa Young will be recognize as the power of social network sites for this young audience and also will has page on Facebook and Twitter. The company will be using the power of new media as part of the mix to grow awareness among the target audience.

PLACE

Place is actually refers to how the product arrives at the point of sale. This means a business must think about what distribution strategies it will use. It also consists of the location of the product to be sold. This includes retail outlets like supermarkets or high street shops. It also includes other ways in which businesses make products directly available to their target market, for example, through direct mail or the Internet.

Distribution channels

La piel Hermosa Young aims to use as many relevant distribution channels as possible to ensure the widest reach of its products to its target market. The main channels for the product are retail outlets where consumers expect to find skin care ranges. We will distribute around 65% of La piel Hermosa Young sales through large high street shops such as Watson and Guardian. Guardian is particularly important for the 'young-end' market. The other 35% of sales mainly comes from large grocery chains that stock beauty product, such as Giant, Tesco and Jusco.

Market research shows that around 20% of this younger target market buys products for themselves in the high street stores when shopping with friends. Research also shows that the majority of purchasers are actually made by mums, buying for teenagers. Mums are more likely to buy the product from supermarkets whilst doing their grocery shopping. La piel Hermosa Young will distributes through a range of outlets that are cost effective but that also reach the highest number of consumers. Its distribution strategies also consider the environmental impact of transport. It uses a central distribution point in the Malaysia. Products arrive from Penang production plants using contract vehicles for efficiency for onward delivery to retail stores.

We does not sell direct to smaller retailers as the volume of products sold would not be cost effective to deliver but it uses wholesalers for these smaller accounts. It does not sell directly through its website as the costs of producing small orders would be too high. However, the retailers like Tesco, feature will sell the La piel Hermosa Young products in their online stores.

In conclusions, La piel Hermosa Young is a skincare range in the market designed to enhance the skin and beauty of the teenage consumer rather than being medicated to treat skin problems. As such, it will create a clear position in the market. In order to bring the range to the market, the business has to put together a marketing mix. This mix balances has the four elements of product, price, place and promotion. The mix uses traditional methods of place, such as distribution through the high street, alongside more modern methods of promotion, such as through social networking sites. This is to ensure that the message of La piel Hermosa Young will reach the right people in the right way.