Marketing Mgt Essay Example

skincare line called NAIVE VISAGE Young specifically for girls seeking non-medicated products for normal skin. This distinguishes NAIVE from competitors who target specific skin problems with medicated solutions. Moreover, NAIVE VISAGE Young acts as a unique bridge between the teenage and adult markets. To achieve their objectives, optimization efforts involved developing a new formula, design, packaging, and name. This case study illustrates how a well-balanced marketing mix serves as the foundation for brand launches and relaunches in the market. Understanding the market is crucial when constructing an effective mix along with value-based pricing that considers consumer-perceived value. Companies must carefully evaluate their target market and competitive landscape when determining which approach is most suitable due to each pricing strategy having its own advantages and disadvantages.In addition, discounts, coupons, and sales events can further incentivize consumers to purchase a product at a specific price point. By analyzing consumer behavior and market trends effectively, companies can strategically set prices that maximize profitability while meeting customer demand. NAIVE VISAGE Young's pricing strategy involves price skimming, initially setting a high price to attract early adopters. The relaunch of the product line resulted in a slight increase in price to reflect improvements in formulation, packaging, and range. However, it was crucial for the price to offer value for money and be affordable since the target market comprises teenage girls and their mothers. As one of the leading skincare brands catering to this specific market segment, NAIVE VISAGE Young serves as a price leader by setting the pricing standard that competitors usually follow or undercut. To maintain competitiveness in case a competitor enters at the 'market Roth' point during the product

life cycle, NAIVE regularly reviews its prices. Unlike retailers who have flexibility in using other sales promotion strategies due to the competitive nature of high street retailing, NAIVE sells products at a fixed price to them. These alternative strategies may include selling products below cost as loss leaders or offering discounts or special offers such as 'Buy one, get one free' or 'two for one'.NAIVE VISAGE Young currently accounts for about 7% of its sales through its pricing strategy. In terms of distribution, NAIVE VISAGE Young aims to effectively reach its target market by using various channels such as retail outlets, direct mail, and the Internet. The main channels for the product include retail outlets like supermarkets and high street shops where consumers typically find skin care ranges. Approximately 65% of NAIVE VISAGE's sales come from large high street shops like Boots and Supersede, which is crucial for the younger market. The remaining 35% of sales mainly come from large grocery chains that carry beauty products such as USDA, Tests, and Kingsbury. Market research shows that around 20% of this younger target market buys products for themselves when shopping with friends in high street stores. Additionally, research indicates that most purchases are made by mothers buying for their teenagers. To ensure widespread distribution while considering environmental impact, NAIVE utilizes cost-effective outlets that can reach a large number of consumers. Their centralized distribution point in the UK allows products to be delivered to retail stores via contract vehicles from European production plants.NAIVE does not sell directly to smaller retailers but instead uses wholesalers for these accounts. However, retailers like Tests feature and sell their products online.

The business uses promotion to inform customers about product availability and persuade them to make a purchase. Promotion can be categorized as either above-the-line or below-the-line. Above-the-line promotion involves paid advertising through mediums such as TV or newspapers, while below-the-line promotion utilizes various methods such as events or trade fairs to convey the product message. These events can be business-to-consumer (BBC) or business-to-business (BOB). Direct mail is another promotional method that reaches a large audience but may have challenges targeting specific consumers precisely. Public relations (PR) involves different communication channels between a business and its stakeholders, including newspaper press releases. Other PR activities include sponsoring high-profile events like Formula 1 or the World Cup, as well as participating in charity events. Branding plays an important role in distinguishing the product and establishing consumer trust through a strong and consistent brand identity with the goal of ensuring long-term consumer loyalty. Sales promotions, such as competitions or sampling, incentivize consumers to make immediate purchasesWhen selecting promotional strategies for NAIVE VISAGE Young, NAIVE considers the lifestyle of its target audience and available media options. The brand recognizes the importance of direct communication with consumers and, as a result, does not plan on using above-the-line promotion. Instead, they rely on below-the-line methods to directly communicate with teenagers and their mothers. One key aspect of this strategy is offering product samples to allow customers to physically experience the products. In 2008 alone, over a million samples will be given away through various channels such as the website, in stores, or included in goody bags distributed at VISAGE events.

Additionally, NAIVE VISAGE Young has launched an interactive online magazine called FYI (Fun,

Young & Independent) to increase brand awareness and empower teenage girls during their transition to young women. The campaign also includes partnerships with shows like the Without chart show and the TM digital TV channel. To engage younger audiences who are active on social networking sites, NAIVE VISAGE Young has pages on Namespace, Faceable (Facebook), and Bebop.NAIVE aims to raise awareness among its target audience for their first skincare routine by embracing new media platforms. The brand, NAIVE VISAGE Young, prioritizes enhancing teenage consumers' skin and beauty rather than treating specific medical skin problems. Through understanding its customers and offering a unique range of products, the brand has successfully positioned itself in the UK market. To bring this range to market, NAIVE utilizes a marketing mix that includes product, price, place, and promotion. This mix combines traditional distribution methods with modern strategies such as social media promotion in order to effectively reach the target audience with the message of NAIVE VISAGE Young.

Now let's address the questions:

1."Consumer led" means that a business focuses on meeting customer needs and preferences by understanding their desires and creating products or services accordingly.

2.The marketing mix consists of four key elements: product, price, place, and promotion. Each element plays a specific role in the overall marketing strategy. Product refers to what is being offered to consumers; price determines its value and affordability; place relates to how and where it is distributed or made available; promotion involves communication strategies aimed at promoting the product and raising awareness among the target audience.The balance of the marketing mix is crucial as each element influences and complements the others. If one element becomes too dominant

or neglected, it can disrupt the overall effectiveness of the marketing strategy. For instance, offering a great product at an affordable price will not be effective without proper promotion or easy accessibility to consumers.

When analyzing NAIVE VISAGE Young's marketing mix, its strengths lie in understanding consumers, having a differentiated product range, and employing effective promotional strategies through various channels including traditional and modern methods. This ensures that the target audience receives the right message efficiently, leading to increased engagement and sales potential.

Moving on to Case-2:
In 1895 in Czechoslovakia, two enthusiastic cyclists named Facial Laurie and Facial Clement designed and produced their own bicycle which eventually led to Soda's establishment in 1925. Over time, Soda expanded its business into manufacturing cycles, cars, farm ploughs, and airplanes in Eastern Europe.Despite facing challenges like war, economic depression,and political change over 65 years,Soda managed to overcome them.

In 1990,the Czech management of Soda sought a strong foreign partner,resulting in their choice of Volkswagen GAG (VGA) due to its reputation for strength quality,and reliability.VGA,the largest car manufacturer in Europe produces over 5 million cars annuallyand holds a12% share of the global car market.Comprised of various brands such as Volkswagen, Audi, SEAT, Volkswagen Commercial Vehicles, Lamborghini, Bentley, and Bugatti, each brand operates independently in the market while maintaining its distinct character. Soda UK recognized the need to evaluate its brand positioning in order to improve its performance in the competitive car market. Brand positioning involves establishing a unique image for the brand compared to competitors. To achieve this goal, Soda UK conducted market research using data from internal and external strategic audits. This allowed them to capitalize on new opportunities and effectively

address potential threats. The strategic audit provided an overview of the business's overall position by utilizing a SWOT analysis - identifying strengths that contribute to improvement and growth, weaknesses that hinder or make the business prone to failure, opportunities that support growth through external conditions, and threats posed by external factors with negative impacts on the business. This case study highlights how Soda UK's management utilized the strategic audit to enhance various aspects of their business. By conducting direct customer feedback and independent surveys, Soda UK identified their strengths which helped develop a competitive strategy in the car industry.Soda has consistently been ranked among the top five manufacturers in the annual JDK Power customer satisfaction survey for the past 13 years, based on opinions from almost 20,000 car owners. In Top Gear's 2007 customer satisfaction survey, out of 152 models, Soda was voted as the 'number 1 car maker' by 56,000 viewers. The Octavia model from Soda was also named 'Best Car' in the 2008 Auto Express Driver Power survey. These accomplishments are attributed to Soda's focus on providing an exceptional owner experience rather than solely concentrating on sales. Recommendations from drivers hold great value for the company and a staggering 98% of them stated they would recommend Soda to a friend. This strength serves as a foundation for future strategic development and brand marketing.

Strategic management plays a crucial role in guiding businesses and enabling them to compete and thrive in their respective markets. For Soda, their strategy revolves around creating cars that bring happiness to their owners instead of just prioritizing sales. As a result, the brand has gained recognition for delivering customer satisfaction

and offering high-quality products.

However, upon conducting a SWOT analysis, certain weaknesses were revealed within the business. With only a 1.7% market share, Soda is considered a small player in the highly competitive and fragmented car industry market it operates in.The main challenge in fitting into this market is the brand's negative image, which originated from its eastern European origins. This negative image affected how people perceived the quality, design, assembly, and materials of the vehicles. It also impacted Soda owners as car ownership is often associated with one's image. However, after being acquired by Volkswagen AG in 1999, Soda successfully transformed its negative image and is now seen as a mid-market brand comparable to competitors like Ford, Peugeot, and Renault.

To address misconceptions and dispel negative perceptions about Soda cars, the company abandoned its defensive approach in promotional campaigns. They recognized the importance of establishing their true brand identity and sought to communicate that their owners were satisfied and content with their cars. However, convincing the car-buying public and the industry that Soda cars were exceptional required a focused marketing message.

Understanding external factors such as opportunities and threats is crucial for business success. This includes identifying gaps in the market for new products or services. In analyzing the external market, Soda realized that competitors prioritized cost reduction efforts in their marketing strategies.

Both Audit and Pursuing Durra Techno emphasized the significance of technology in their approaches.

BMW highlighted its position as the ultimate driving machine, while other brands also emphasized the driving experience. Soda UK discovered that their customers were more content compared to Renault or Ford owners. Using a SWOT analysis, Soda distinguished its product range

and devised strategies to enhance their brand image. The text accentuates current strengths and customer-oriented vehicles, enabling differentiation from competitors. Customer satisfaction serves as Soda's unique selling proposition (USP) in the automotive industry. External threats, such as rivals launching cheaper products, are examined within the SWOT process.

With 50 car manufacturers presenting 200 models and over 2,000 variations in the UK market, Soda must ensure impactful messaging to maintain market share. Soda comprehends the significance of a robust product lineup to remain competitive in both domestic and international markets. They offer seven distinct cars in the UK that target various market segments. The Soda Baby is marketed as a dependable 'city car,' while the Soda Superb caters to a more affluent audience. Families are targeted with the Soda Octavia Estate, which offers an enjoyable driving experience and ample storage space. Pricing is tailored to attract different consumer groups within the mainstream car market.To address legal and environmental regulations, Soda has implemented multiple measures to ensure their products remain environmentally friendly throughout their lifespan.
Soda prioritizes eco-friendly practices such as recycling and easy part identification during disassembly. They also utilize lead-free water-based paints to prevent corrosion. Furthermore, they concentrate on reducing fuel consumption, emissions, noise levels, and enhancing sound quality in their vehicles through innovative processes and technology. According to the SOOT analysis conducted by Soda Auk, owners express satisfaction with their Soda cars and no longer view the brand as inferior to competitors. The text emphasizes that while Soda primarily appeals to a niche market, it is crucial for the brand to change public perception in order to compete and expand its market share within the mainstream

car market. The main challenge was improving the brand's positive image. To tackle this issue, Soda I-J developed a new marketing strategy inspired by Logan, known for creating happy drivers. This strategy focuses on providing a joyful customer experience and emotional appeal rather than focusing solely on practicality. One of the promotional activities includes a TV advert called 'Baby Cake,' featuring delightful aspects of the car accompanied by cheerful background music. The brand website has also been redesigned to cater to a youthful audience with the message 'experience the happiness of Soda online'. Additionally, online services such as test drive bookings and brochure orders are now available. These efforts aim at presenting Soda as both reliable and enjoyable for ownership purposes.Soda I-J successfully differentiates itself from competitors by analyzing external opportunities and threats in its marketing messages. The campaign utilizes insights gained from a SWOT analysis to address the threat posed by external competition. To prevent sales and market share loss, Soda, a global brand in a highly competitive market, must effectively respond to internal and external issues. The use of a SWOT analysis provides structure and order to assess both internal weaknesses and external factors, guiding the company's strategy. This analysis identifies key internal weaknesses that help identify areas where competitive strengths exist. By systematically reviewing both internal and external factors, Soda UK transformed its strategic direction. A case study demonstrates how focusing on customer happiness and leveraging identified strengths improved Soda UK's brand image and gave it a competitive advantage. This shift allowed Soda to overcome weaknesses and change its defensive approach into a positive customer-focused experience. Numerous awards received by Soda highlight

the success of their communication efforts in reaching customers, while improved sales demonstrate the effectiveness of their new strategy. One main weakness identified by Soda was its own internal weaknesses.Soda capitalized on its strengths, particularly in terms of customer satisfaction, to turn their brand weakness into an opportunity. They successfully addressed external threats by shifting their strategic direction towards prioritizing customer happiness and leveraging competitive advantages. Meanwhile, the benefits of utilizing a SWOT analysis for marketing strategy growth are discussed in relation to Wilkinson, a well-established UK retailer. Throughout its history, Wilkinson has remained competitive by adapting to evolving customer needs. Founded in 1930 by James Kinsey K) Wilkinson, the company initially focused on selling labor-saving devices and later expanded into groceries and supermarket products to meet customers' desire for convenience shopping. Moreover, Wilkinson has diversified its product range to include low-cost items like clothing, toys, toiletries, and perfumes. In addition to this diversification effort, the company established distribution centers in Workshop and Wales while launching an online shopping service in 2005. Currently operating over 300 stores with an average of 25,000 product lines under its own-brand Willow label, Wilkinson aims to surpass 500 stores by 2012 as part of its growth strategy. Despite recent challenges from competitors in the permanent sector, Wilkinson is determined to overcome them by identifying new areas for expansion. Market research was conducted extensively for two years by the company to develop a targeted marketing strategy focused on students.Wilkinson successfully implemented their marketing strategy by utilizing insights from their research. The strategy aimed to communicate the added value of their products and services to customers, ultimately incentivizing purchases. To develop

suitable marketing strategies and assess associated risks, Wilkinson utilized the Nations Matrix tool. This tool allowed them to prioritize either product development or market expansion in their strategies.

When choosing between larger investments in existing operations or creating new products for a new audience, Wilkinson considered the relative risks involved. Larger investments in existing operations carried lower risk, while targeting a new audience with a new product posed higher risks in terms of time and expenses.

Based on their findings, Wilkinson decided on a market development strategy that targeted students as a new audience for their products. This strategy presented medium risk due to the need for marketing campaigns to find and develop new customers, which incurred costs. The main objective of this strategy was to increase brand awareness among students and encourage regular shopping at Wilkinson stores.

Market research played a crucial role in collecting data to support this strategy. There are two main forms of market research - primary research and secondary research. Primary research involves collecting firsthand data through interviews, questionnaires, panels, and observation. On the other hand, secondary research utilizes existing data from reports, publications, internet research, and company files.

Each method has its own advantages and disadvantages that must be considered when conducting market research for supporting marketing strategies.The text highlights the advantages and drawbacks of primary and secondary research for a company's strategy. Primary research is more expensive but tailored to the company's needs, while secondary research is cost-effective but may become outdated. Wilkinson utilized both types of research by collecting questionnaires from students and gathering data from government and university admissions sources. The findings revealed that there were three million potential student

customers with an annual expenditure of approximately E billion, confirming the importance of targeting the student market for growth. Based on these results, Wilkinson carried out further research to identify effective methods for attracting students to shop at their stores.