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

Answer (1) Inexperience in above field. This will be overcomed by fixing experience gap by getting knowledge about specific product line. More training need to be gained in order to have smooth operational activities in business.

High price products which will be less purchased by people, but this probelm could be solved by enlightening people about organic products which are of high quality and eco-friendly products.

Effective communication will help in expanding business as this will include proper information about products to people and this will help in gaining trust and confidence among people.

Above two strategies will help in increasing customer base and that will help to overcome above marketing probelms.

Answer (2) Everglad should do market segmentation on basis of psychographic and behavioral segmentation.

Psychographic segmentation is on basis of lifesyle and interests of customers. As on basis of research it is concluded that people are more towards natural products as compare to chemical products that are artificially produced.

Behavioral segmentation refers to purchasing and spending habits and also on user status.

This includes segmentation on basis of preference of customers on which type of products to be used. Above products are organic and eco-friendly products.

Answer (3) New and different product as mentioned above that products are organic and eco-friendly and cruelty free. Price expectations are high with innovative products with better changes.

This will reflect socially aware and young optimistic attitude of brand towards its customer base and society.

Thus Everglad appeal to New and different product as value segment of Roy Morgan.

Answer (4) Concentrated marketing strategy is best because it tragets concentrated audience and have less competition and most suitable for innovative products. It puts all of its efforts focus on one and few specific customer group. The brand will achieve goal of potential growth.

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