Question

Step 1: Read the following scenario carefully: EverGlad Bodycare was recently co-founded by two Australian siblings who share a passion for protecting our planet and being ethical consumers. Ann and Oliver Jones, while pursuing their vocational education, realised that people the world over desire products that are not only good for them but also for the Earth. They wanted to create a line of skin and hair care products that used all-natural and organic ingredients and were cruelty-free and ethically sourced. The brother-sister duo spent months reaching out to local producers to understand which ingredients could be locally sourced with ease. After much experimentation with the various ingredients, they locked in their formulae for five product lines: shampoo & conditioner bars; hair masks; soap bars; body oils and body scrubs. As Ann and Oliver want to use only the best and safest natural ingredients, they realise that their prices will be high initially, at least until they started manufacturing on a much larger scale. Currently, they expect to just sell in their home state of South Australia. As they have no prior business or marketing experience, they approach you to be their marketing consultant.

Step 2: Answer the following questions 1. What marketing problems do you think EverGlad Bodycare will face once they launch their products? How should they overcome these? (You need to identify at least two possible problems and solutions. Provide reasons and support for your answers through research). (approx. 300 words) 2. On which bases should EverGlad segment the market? (Along with the segments, provide reasons and support them with your research). (approx. 150 words) 3. Which of Roy Morgan's value segments will this brand appeal to? (you need to provide reasons for your answer). (approx. 150 words) 4. Which targeting strategy would suit this brand the best? Why? (approx. 150 words) 5. Create a perceptual map for EverGlad Bodycare. Apart from showing its positioning, use external research to plot two other actual companies on the same perceptual map. Include a short write up to explain your logic. (approx. 100 words) 6. Which type of competitive advantage can EverGlad Bodycare establish? How should they go about it? (Chose one of the following - Cost, Differentiation, Niche or Sustainable competitive advantage to address this question). (approx. 150 words)

Answer 1

Ann and Oliver are just starting out their business, which is in an extremely competitive operational environment in terms of both, competition & operations

1) What marketing problems do you think EverGlad Bodycare will face once they launch their products? How should they overcome these?

They would face the problems of

• - Finding the right target audience
• - Coming up with a consistent message about the brand
• - How can they effectively reach their target audience

The most effective solution to these problems, would be to adopt a data driven approach. Marketing has changed from just intuition to a more data driven approach. So they should tie up with a social media targetting marketing firm, which will take those decisions based on sound data and help them grow their brand

2. On which bases should EverGlad segment the market?

Market segmentation is a process of dividing a heterogenous market into relatively more homogenous segments base on certain parameters like geographic, demographic, psychographic and behavioural

They should segment the market on basis on income (since their products are likely to be expensive) & people who are very committed to saving the enviroment.

People below a certain income bucket will simply not be able to afford their products, but people who are committed to the enviroment are the ones who will drive the sales

3. Which of Roy Morgan's value segments will this brand appeal to?

It would appeal to the socially aware segment. Whether they're saving the world or purchasing the latest innovative product, Socially Aware individuals like to be well informed before they make a decision. Not surprisingly, they're across all the smartest and in-depth news media and hold passionate opinions about society.

Since they are a sophisticated target audience, if the product is actually good, it will appeal to them

4. . Which targeting strategy would suit this brand the best? Why?

Targeting strategy is a strategy for selection of potential customers the company/ organization can sell its products/services to. Targeting is done to a specific target group as there are various segments in any market. Most firms do not select all the segments in a market to operate and choose one or few of the identified segments through targeting. As mentioned earlier, targeting is this process of selection made on the basis of attractiveness of the segment.

Since our target audience is prevalent on social media, I would chose to target them via social media

6. Which type of competitive advantage can EverGlad Bodycare establish? How should they go about it?

They should establish building a niche brand, which is socially aware.

Once they build their brand about the envriomental difference it can create, they can start cross selling many lifestyle & healthcare products, which could seem to be a very big target market

First they will have to explain the benefits of their niche products, attract customers, once attracted they can get a major foothold in the market as competition might be a laggard.