Marketing principle essay Help on Woolworths
Essay Help Question:
ASSESSMENT ITEM: INDIVIDUAL ASSIGNMENT
Choose a branded product range distributed through Woolworths or Coles in Australia that is supplied by a large manufacturer of branded grocery products, such as Unilever, Proctor and Gamble, or Sanitarium. You have decided to launch a new product into Australian supermarkets under one of the company’s established brands. The new product can be a modification of an existing product, or a product extension under an existing brand.
-Summarise key facts about this company’s Australian business – ownership, sales, product ranges, management, profitability, share price history, and so on.
-Describe the chosen market segment – sales, growth, major competitors and their market shares.
-State your rationale for introducing a new product to extend the range. Your analysis must detail relevant trends and show why the marketing environment is positive for this new product.
-Define the target customer for this product – demographically, geographically and psychographically.
-Outline your marketing mix strategy.
Length: 1500 words maximum
Assignment Help Answer: Marketing Essay
The marketing aspects of newly introduced product in hair care segment is presented and discussed in detailed terms in the present report. The comprehensive discussion of marketing aspects throw light on customer segment, company history, justification of new product introduction, marketing mix strategy, etc of proposed product. Such discussion facilitated in deriving necessary interpretations regarding product success and foothold in coming time.
The underlying report aimed at introducing new product in hair care category and marketing the proposed product under the brand name of Woolworths in Australia. The product will be launched into the Australian supermarkets under the concerned brand name. It is worth mentioning that hair care product is a wide category and include various kinds of products like shampoo, oil, mask, etc. In this context, shampoo named Aloe will be introduced into the Australian supermarkets under the brand name of Woolworths. The newly introduced product will extend the existing product line of shampoo marketed by Woolworths in Australian supermarkets.
Woolworths is an Australian retail company operates on retail model and engage in the supplying of various retail products to customers. The products marketed and supplied by Woolworths include clothing, beauty and cosmetic products, FMCG, electronics, housewares, furniture, jewellery, etc. The concerned retail chain manages and supplies most recognised and trusted brands like Macro, Fresh, Free from, and Gold in order to deliver world class experience to customers at all levels. The profitability position of the Woolworths is increasing yearly as sales has increased from 37.549 ($m) in 2012 to 40,031.2 ($m) in 2013. The earnings before interest and tax (EBIT) in 2012 was 2,817.2 ($m) and increased to 3,061 ($m) in 2013 (Woolworths Limited. 2013). The share price history of Woolworths is also satisfactory as presented in underlying figure:
(Source: Woolworths Limited. 2013).
It can be analysed from the figure the share price has faced fluctuation in the year 2013. However, share price has jumped significantly in the May 2014 and reached to 38 AUD as its highest level. The ups and down in the share price showed that last share price of the Woolworths was 36.84 in present year. The management of the Woolworths strive towards maintaining good corporate governance, fostering hard working and responsible culture among employees and staff members (Woolworths Limited. 2013).
The chosen market segment i.e., hair care is according significant growth in the Australian industry. The sales and growth of hair care segment is increasing significantly as people are purchasing hair care products on large scale. In the past years, people spent less amount on hair care products as such products are considered as luxury items. However, in present years there is change in consumers’ perception and thinking towards hair care products (Stone 2001). Such products are considered as essential ones by the customers on account of change in lifestyle, perception and thinking. In this context, many business firms have introduced various kinds of hair care products in order to meet customers’ expectations and requirements related to hair care. The major competitors engage in marketing and supplying of hair care products include Proctor & Gamble, Unilever, Marico, etc. It has been identified that Unilever is the leader in the marketing of beauty and personal care products followed by P &G, Marico and other competitors (Stevens & Loudon 2005).
New product rationale
The marketing plan of any product works successfully only when development and introduction of proposed product is justifiable in accordance with market conditions and trends. In other words, it is necessary on the part of marketer to evaluate and monitor market trends and conditions before introducing proposed product in marketplace (Wenderoth 2009). In this context, market conditions and environment dynamics of hair care segment is evaluated. It has been identified that marketing environment of hair care product is quite positive and encouraging.
In detailed terms, change in consumers’ lifestyle, preferences and social setting lead them to prefer and purchase hair care products. The sales of hair care products are according new heights in present scenario on account of high scale purchase by customers. The market research evidenced that customers accepted the fact that hair care products are prepared in accordance with hair texture and other specifications (Trout 2001). In this regard, usage and application of hair care products prepared after extensive research will surely provide wide range positive benefits and implications to the customers.
Besides, environmental dynamics also demonstrate that introduction of proposed product is completely justifiable and prove profitable in long term. The issue of environment degradation, pollution, global warming, etc also made customer more conscious and aware regarding hair care aspects therefore likely to increase hair care spending in the present and future time (Wheelen 2008).
Target customer description
The target customer of proposed product includes female customers. In simple terms, proposed hair care product will be designed specifically for female customers. This is so because female customers are more conscious for hair care aspects. It is evident as female spend large amount of money for making their hair free from any kind of problems and issues. In this context, it is believed that targeting female customers will prove more beneficial for the proposed product. It is worth mentioning that female segment is a large group therefore needs to be specified by the company (Dibb & Simkin 2008). In other words, marketing personnel of the company needs to clarify whether the proposed product is intended to target entire female segment or specific category. In context of proposed hair care product, female of age group 14-30 years will be targeted. This is so because female of this age group are more beauty conscious therefore likely to spend more money on hair care and beauty products (Westwood 2002).
Marketing mix strategy
The marketing mix strategy of the new product includes four elements-product, price, place and promotion. Under first element i.e., product means anything offered to customers for satisfying particular needs and expectations. In present case, product include hair shampoo is intended to offer for providing advanced solution to customers regarding their hair related needs. The ingredient of hair shampoo includes herbal materials not creating any negative impact on hair like hair fall, dandruff, etc.
Secondly, pricing means money required to pay by the customer for purchasing concerned product. It is necessary to carefully draft pricing strategy in order to enable customers to purchase proposed product easily. In this context, low pricing strategy will be adopted for proposed product. The low pricing strategy appears justifiable and beneficial in initial stage as it will help in targeting customers. In other words, middle and lower income group customers can be easily targeted by low pricing strategy (Zonis 2009).
Thirdly, place element of marketing mix deals with distribution related aspects of products and services. The distribution strategy of proposed product includes ensuring product availability at the retail outlets and supermarkets where other products bearing brand name of Woolworths are distributed to customers. It is necessary to ensure maximum product availability for targeting large group customers and availing market opportunities (Ryans 2000).
On the basis of above discussion, it can be concluded that proposed product i.e., hair shampoo holds potential success prospects. The marketing of new shampoo under brand name of Woolworths demonstrated that sound management, high performance culture, profitability history, etc increase the chances that newly introduced product will also gain considerable popularity in marketplace. The detailed discussion of various aspects like market segment, target product rationale, customer profile, etc justified and revealed that proposed product holds potential of gaining customer acceptance and market dominance. The marketing mix strategy also provided action plans that should be adopted by the proposed product for ensuring success and popularity.
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Woolworths Limited. 2013. [online]. Available at: https://www.woolworthslimited.com.au/page/Invest_In_Us/Share_Price/ [accessed on: 11 May 2014].
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