Posted at 11.13.2018
AFRICAN BEAUTY can be an African herbal cleaning soap which is made up of camwood, honey and palm kernel extracts both known because of its superior dermatologic properties. It's very popular in the African region. It is essentially produced few chemical procedures and is easily accessible in the African sub-region.
The UK marketing environment
In order to analyse the UK's marketing environment, the next factors have been considered
The recent tendency in consumer behavior is tending towards becoming enviromentally friendly and using organic products with an increase of natural ingredient. A product such as African beauty can capitalize on these present consumer tendencies.
Over the years, the amount of immigrants is on the increase. Thus, there's a change in the populace structure of the UK. As the changes persist, there is equally a growing need for products/services which match these emerging groupings. Presently, there are approximately 736, 000 black Africans in the uk to who this product is directed at.
Environmental issues are also very prevalent in the united kingdom, which must echo both in constituents of the merchandise, its presentation as well as elements n the marketing mix
With the economical recession in the united kingdom, budget slices and high unemployment rate, consumer spending ability is reduced and spending habits of all consumers is mainly cautious. The financial factors can be split into two. The macroeconomic influences generated by authorities economic policies and trade agreements. Taxation reduces the amount of throw-away income available thus impacting on consumer's spending habit. However, FMCG goods such as soap are improbable to be affected significantly. VAT rates and exchange rates also determine the ultimate price of something to an extent. Therefore, the suggested increase in the VAT rates will be of concern in the market combine decisions. Microeconomic influences concerned with market buildings which influence the kind of competition present. Based on the number and size of competition in the UK FMCG market can be said to be an oligopoly. The major cleaning soap brands are possessed by procter and gamble or unilever which have got a huge market share. These companies will probably create considerable obstacles to accessibility and leave very little gap for a fresh product from a fresh competitor. Because of this product, a distinct segment market strategy is most appropriate
The role/effect of government has a direct affect on the marketing mix. The 3 main pushes within the politics and legal environment. The local/nationwide government and the many regulatory bodies. To be able to ensure consumer as well as for a successful trouble free product, laws on product liability, privacy protection under the law, unfair business tactics, scam and misrepresentation. As well as laws regulating importation must be considered. Advertising and advertising will have to standards and procedures established by regulatory systems such as Advertising Requirements Authority and Ofcom. Luckily for us the UK is quite liberal and therefore there won't be many constraints to the promotional strategies followed within the mix
Technology has made cheap and powerful data source management systems available for better management and examination of customer information. Also the internet has provided new ways of promoting products as well as improved upon technology in the development of adverts and promotional materials.
Dove, Imperial leather, Dettol soap, Delta cleaning soap.
Overview of the marketing mix
Using the 4Ps model
The product- DUDU cleaning soap will come in two pubs with 2 different fragrances, orange & lemon.
Consists mainly of 100 % natural ingredients vastly found in Africa. BEAUTY can be an African natural soap which includes camwood, honey and hand kernel ingredients known for its superior dermatologic properties. It's very popular in the African region. It really is essentially produced few chemical techniques and is easily accessible in the African sub-region. Both bars will contain orange and lemon concentrates in relatively high but safe quantities. Both are tropical substances with high vitamin A and C contents, as well as ascorbic acidity which has antibacterial properties
General anatomy of product
Classified under consumer and non-durable goods, due to its relatively inexpensiveness and frequent purchase. Also convenience products as consumers are more likely to put little work into purchase decisions. This particular factor is of great value inside our marketing mixture. Product must be produced common to the prospective segment. Also, a good brand communication strategy must be present to get consumers involved whenever you can and produce a good amount of brand devotion. Market will be seen as a low margins; therefore we will seek earnings through attaining high amount sales.
Design. The ergonomic properties, shade and attractive packaging have been used into serious factor. This is so as to improve its overall look and feel of the product, as well as communicate the right brand image. These particular factors have a strong affect on consumer's perceptions of the product's quality.
Attributes. Product is made from purely organic ingredients. Materials such as camwood, rosemary, thyme, shea butter, honey and exotic fruits extracts. These are easily sourced locally in Africa, have a higher vitamin supplements content and are recognized for their natural dermatologic and healing properties. Being natural organic and natural compounds, they can be complementary to almost all pores and skin types and won't present pores and skin reactions because so many soap produced with artificial/chemical substances usually do. With this product, consumers need not get worried about their skin area types when purchasing, and this is the brand image we will seek to promote. THE UNITED KINGDOM weather is severe, therefore this is a welcome product specifically for newer immigrants
Features. Comes in an soft oval form reinforcing the notion of mildness to skin area. Also comes in 2 bars; dudu lemon and dudu orange. These are provided in their matching natural fruity fragrances still reinforcing the notion of naturalness and freshness
In launching this product in the united kingdom, the following have been taken into account;
Brand name selection. Dudu is an African word head wear connotes freshness/naturalness. It had been seleted because it is
Distinctive from the competitive offerings, suits the product's figure and will appeal to the mark market.
Recognisable, pronounceable and memorisable. Thus, it'll most likely be acceptable
It can be an already authorized brand and it is familiar among some consumers within the prospective segment.
This product wil follow a collection extension strategy whereby an existing brand is offered to new varieties of a preexisting product category. The dudu brand is quite popular in Africa and it is associated with a known and trusted product- dudu osun- an established cleaning soap product in Africa. Thus, we will leverage on the brand equity that already can be found with dudu specifically amongst the mark segment.
The presentation chosen will provide both functional and promotional purposes. It takes on a crucial role being the first point of contact between your consumer and the merchandise. Proper packaging can even result in more sales.
After considering the packaging requirements of the united kingdom, the decision of material is a light, durable and biodegradable material made from solid wood pulp. It really is marginally porous allowing some fragrance to sip through. This will further serve to draw in attention as wellas streghten perception of fresness.
Shape. Oval molded load up, which evokes a sense of tenderness/coolness
Graphics/color. Simple but attractive images and also different shades of just two basic colours- orange and lemon. This also helps to communicate the existence of just few 100 % natural ingredients.
Pack sizes. Will come in single packages for the single user, much larger family-sized packages and evidently labelled trial- sized packs that encourage low risk product trials. The addition of different pack sizes will promote choice and also charm to different consumers within the prospective segment.
Includes information required by law and best practice. Included in these are weight/quantity of product, barcode, name and address of the maker. Also consumer demands require information such as substances as well as its environmental friendliness. The labelling will be achieved so as to instruct and inform consumers on the worthiness and quality of the product whilst also promoting the product
Product life pattern.
Introduction period (1st 6 months)
At this stage, although product is new, there is some familiarity within the target portion. Thus, leveraging upon the prevailing brand equity, good sales volume is expected nonetheless with relatively low revenue levels. Our main target here is to generate popular awareness of the product, to activate trial and move the target portion towards purchasing the merchandise. We shall offer an introductory trial price (which would be obviously stated so as not to increase suspicion when the merchandise is tagged at the determined price)
At this level, sales and income levels should be risin speedily. Rivals response will be of major value. Target will be building brand loyalty whenever you can by encouraging repeat purchases. At this phase, product changes is planned in order to consolidate market show and start opportunities for new segments. This is due to the fact that as time passes, experience will highlight unforeseen strengths to make on as well as inherent weaknesses to be fine tuned. Another part of focus will be building and building up relationships with marketers.
At this phase, a stable group of repeat buyers would have been established. Soap potential buyers are largely mental, therefore loyal customers are unlikely to switch brands except in very rare cases. The target here is always to further fortify the customer devotion through marketing and sales communications to maintain brand loyalty while further building up distribution channels. Fierce competition is foreseeable and could drive down income but the large sales quantities obtained will achieve suitable profit levels.
Although not foreseeable because of this product, changes in consumer tendencies, new technological breakthrough or competitive pressure may make this product significantly inappropriate. In this case, trying to increase product life through product remodelling may be a good response. Finally, if this fails then harvesting or advertising off the product may be the only solution.
The target section is the black African population in the united kingdom. Figures from the office of national reports, puts this portion at 730, 600 residents in the UK. Also the most significant awareness is the south-eastern part of London. That's where the marketing concentrate and work will lie. Sales target is to gain 30% market show of the mark population within a year. This means 220, 000 consumers. General market trends shows soap is bought on a each week basis. Therefore, a each week sale of 200, 000 models is the target sales number.
Pricing concerns- 4Cs
In order to make pricing decisions, the following factors need to be considered
Prices range from 2-5. Essentially undifferentiated products on the market place.
Pricing guidelines include special discounts on bulk purchases or BOGOF
Customers are price elastic but makes repeat purchases
Cost incurred from the manufacturer to making the merchandise available to the consumers. This include set and adjustable costs, circulation and handling costs etc. This can help in setting the machine cost at which revenue is made
Marketing and Pricing objective
A short-term and long-term contacted will be followed. As a fresh entrant, the main emphasis will be making customer purchases and establishing a foothold in the market. Low promotional prices will be utilized at the onset sacrificing profit percentage for market talk about.
The long-term pricing strategy is chosen to echo and establish a clearly differentiated specific niche market. This will be consolidated through the other elements of our market combination. This would enable a profit-maximization technique to be achieved
Product charges strategy
At the onset, we will follow a good-value strategy. Thus, we will pursue a premium strategy. Setting the original price to achieve market penetration. Thus, low promotional prices will be utilized to attract a large number of potential buyers resulting in a large market talk about. This price will be obviously stated in order not to raise suspicion in event of increased cost or create the notion of low quality in the product. Also trial offers will be accessible to increase knowledge of the merchandise while lowering risk. Ultimately, reduced strategy establishing the merchandise as plainly differentiated is the long-term objective.
Penetration costs is best suited because though customers demand is likely to be price sensitive, it'll increase significantly over time. The emergent economies of range will result in large decreases in expense. As the product moves through its life pattern, pricing objectives will be re-examined.
In order to study the cost-volume-profit relationship, a rest even analysis can be used. (See fastened appendix) Cost centered methods will be utilized to determine the device price of the merchandise. Analysis of development and marketing costs can help determine a place price that will produce sufficient revenue while still considering other elements of the 4Cs. Cost-plus costs will be the key method used thoroughly in setting up the product's device price. This will be the production cost with a certain profit percentage.
Price adjustment strategies
Quantity discount rates and promotional discounts
To get the merchandise from the point of production to consumers, intermediaries will be used. This is because using intermediary leads to more efficiency in distribution costs. They have the connections, experience and size of operation which results in better sales being achieved. It would be simply uneconomical to perform a passionate sales operation.
A solo, indirect channel of syndication will be utilized in order to minimize the chance of inter-channel conflict. It also best reflects the characteristics of the product and market concerned. This is displayed by the diagram below
Figure. DISTRIBUTION Route FOR DUDU
The product will be produced available to 2 main wholesalers (Bestway group and Bellevue) who break the bulk and assemble offers that are customized for their sellers. This is the most appropriate route considering that a niche strategy has been. The choice of stores best suits and effectively grows to the prospective market portion while, the chosen wholesalers have a solid business relationship with these suppliers.
In terms of market coverage, an intensive circulation strategy will be utilized. Market coverage is approximately achieving the end customer in the most effective and affordable manner possible (Stern et al. , 1996). This increases the supply and convenience factor to the possible client. The slight disadvantage here is that if unit orders are low, it may drive up total syndication costs. To minimize the risk of inner competition within the channel, a contractual vertical marketing system will be agreed upon.
This will be outsourced to an authorized. Star shipping international will be controlling logistic operations. The company works in UK by way of a network of subsidiaries, partnerships and joint endeavors. It has knowledge in shipping, dock handling, warehousing, storage area and distribution. It was chosen because though the company is relatively new, they can be known to signify good value for money. And also aiming to enter a fresh market, it will be beneficial using skills available on surface. Shipping is an economic method of transport and will be used considering the nature of the products to be carried.
Promotional work will be concentrated within the precise geographical section of the target segment. In order to establish the total amount of the promotional combine, the product and market must be analysed. Consumer marketplaces and consumer products are seen as a a large quantity of customers making relatively low value, frequent purchases. They are most effectively reached through media such as advertising and sales campaigns. This can be used up by pr. Personal selling will not be very useful considering the large number of consumers.
A mixture of push and yank strategies will be used. Considering that this is a new product, a yank strategy will be used preferentially. It is because we may not have the ability to exert much effect within the circulation channel until a demand for the product is visible. Thrust strategies will be utilized though, but will function to make bonuses and motivate route members.
Product-comparism advertising will be used and can take the proper execution of posters (to be viewed in retail retailers), billboards and coupons. Print out advertising, brochures and booklets will also be used and will be mailed to preferred household. TV advertising will not be used first, as it isn't cost effective and may well not reach the niche market effectively.
There will be consumer offers to be able to increase short-term sales while building long-term market share. This will be in the proper execution of samples, premiums, price packs and patronage rewards. Also trade promotions such as discount rates, allowances and free goods will be wanted to incentivise stores.
Direct marketing and community relations
Telephone marketing and immediate mail marketing will be utilized to market right to homeowners in the targeted areas. Written materials which instruct consumers on benefits of green products may also be used for public relational activities.
Two models may be used to determine a market strategy. These are the GE matrix and Porter's common strategy. Evaluation of the united kingdom FMCG market identifies it as an oligopoly with a few strong players. The most appropriate strategy is to carrying out a target strategy with the product designed to concentrate and meet customer's needs in a few aim for portion thus creating a niche for pinnacle foods.
The product is to be launched into a niche portion, with medium market prospects and pinnacle foods has a higher SBU durability. This places it in one of the 3 skin cells in the upper left spot of the GE/Mckinsey matrix. This position shows a favourable position with relatively attractive growth opportunities. Therefore, pinnacle foods should invest to grow while still pursuing a focus strategy.