Target Market
The crucial part of marketing is the identification of an organization’s consumer base. To achieve this one has to employ STP analysis or the use of market segmentation. It is crucial since an organization needs to develop long-term relationships with its clients for the business to be successful (Rafinejad 2007, p. 104). Since the company deals with products sale, there is a need to be people-oriented. The company needs to understand the people it is intending to reach because in the market not everybody has an interest in the products. There are a number of ways of determining the market but for Wellbox, the best way is the use of demographics and the use of psychographic segmentation in determining their target market with the aim of developing proper relationships with their potential clients (Rainey 2005, p. 119).
The primary target market for Wellbox is determining the demographics and the distribution of Wellbox distribution. A crucial demographic segmentation character in the organization is the determination of the consumer income. The organization as it is targeting the upper class, upper-middle-class, lower-middle class, and lower class needs to place their advertisements in areas where these people live (Wedel 2000, pp. 67-71). Areas in the cities such as Sydney, Perth and Melbourne where the living expenses are high, should be considered and the population must be targeted.
The secondary target market for the organization is determining areas in New Zealand and Australian undeveloped areas that have a potential of developing and thus the company can establish new clients. A major market that remains untapped in the two markets is in the small towns in two countries. By venturing into these markets, Wellbox is developing consumer loyalty, as there has been little penetration into these areas by other competitors yet people though farmers have the purchasing power of the products.
Pricing
Pricing of the product shall be essential, as the price will play a part in determining the market. Price determines the consumers based on factors such as the social group and age (Rainey 2005, p. 45). Wellbox will need to compose a Price Improvement team that will focus on the process of setting the price of their beauty products. New products intimidate a lot of organizations in terms of setting the correct price, the setting of the price should be determined by production cost, distribution cost, design of the product, market segmentation, the value of the product and what competition offers on their products similar to the product (Onkvisit 2009, p. 107). Wellbox management will need to determine the cost of all the cost variables and determine the best price based on their consumer expectations.
Product
The beauty products by Wellbox are in most cases convenience goods and are thus purchased without planning. The products need to be of high quality for better competing with other products in the market. Quality development needs to be a core philosophy of the organization and the whole organization needs to be dedicated to the production of quality products (McDonald 2005, pp. 67-72). The organization should be in a constant process of improving the consumer value ensuring the consumers are satisfied by participating in continuous research and development of their products and services.
Place
Logistics is involved in handling, storing and moving products to the consumers. Logistics aims at reducing costs and optimizing service. The organization needs to ensure that the products are available to the consumer at all times and at all places. There is a need to employ strategic tools in ensuring the goods are available to the consumer. Online trading is also an option that the organization needs to explore.
Promotion
Wellbox will need to organize a number of promotions necessary at creating consumer awareness of the products (Annacchino 2003, pp. 34-37). This can be through the use of emails regarding sales promotions, registering to the company website, use of leaflets in certain locations also important is the use of the mass media in promoting their products and services.
Reference List
Annacchino, M 2003, New product development from initial idea to product management. Butterworth-Heinemann, Amsterdam Boston.
McDonald, M 2005, Market segmentation : how to do it, how to profit from it. Elsevier/Butterworth-Heinemann, Amsterdam Oxford.
Onkvisit, S 2009, International marketing : strategy and theory. Routledge, London New York.
Rafinejad, D 2007, Innovation, product development and commercialization : case studies and key practices for market leadership. J. Ross Pub, Ft. Lauderdale, FL.
Rainey, D 2005, Product innovation : leading change through integrated product development. Cambridge University Press, New York.
Wedel, M 2000, Market segmentation : conceptual and methodological foundations. Kluwer Academic, Boston.