Question

My imaginary business is Swimwear Imagine that you are a small online retailer and your business is picking up greatly, especially in some markets. Create a list of products that you sell, who your target market is, how you differentiate, and discuss optimal strategies for the 4Ps of marketing for your retail business. Discuss how these strategies would differ if you added a physical retail location.

Answer 1

The products that I sell would include decorative handicrafts like pots, weaved baskets, sculptures, tapestry, rugs, and other decorative items. My target market would be the people who are generally above 20 years of age. I would differentiate by offering eco-friendly products that are made from natural ingredients and educating the target audience about the benefits of using them. The remaining portion has been discussed in the explanation part.

Explanation:

My online retail business would offer decorative products like flower pots, vases, chandeliers, paintings, sculptures, idols, and antique products. My target market would be the interior designers and individuals of generally 20 years and above. I would differentiate my products by ensuring that they are handcrafted and are made by sustainable methods like water-soluble idols and sculptures, paintings made from organic colors and handmade flower vases.

The optimal strategies for the 4Ps of marketing for my business would be:

Product - My products will include handicrafts like tapestries, pots, weaved baskets, rugs and other decorative items. I will present my products as an alternative to the other products in the market that do not use natural ingredients in their manufacturing process and thus harms the environment.

Price - As my products are handcrafted and natural ingredients are used in their preparation therefore, the products would be priced above the cost of the similar products available in the market. I will inform the customers about the benefits of using handcrafted items that support the domestic and small-scale businesses and natural and organic products, which are eco-friendly in nature. I will also offer discounts and coupons to the first 100 customers.

Place - The place of distribution for my products would be my website. After opening my website, a customer can choose from a wide range of products and place his order. After the successful placement of an order, the product would be delivered to the customer's house. I would also provide my customers with the option of picking a product from the nearest distribution center.

Promotion - I will promote my products on social media websites like Facebook and Instagram as they are free and provide better penetration of the target market. I will also use testimonials and certifications to promote my products.

The above-mentioned strategies would change if I added a physical retail location. The price of the products would increase because now I will have to pay the rent or other shop related expenses a part of which would be recovered from the customers. As now I can sell through a physical location also, therefore, customers can simply visit the store and buy the product of their choice without having to wait for 2-3 days as in-home delivery. The expense of promoting a product would also increase because now I would be required to promote my store as well as products through hoardings, banners, print media and word of mouth.