Question 1A:Marketing segmentation is one of many effective ways that bring success to a brand. Marketing segmentation means that the process of dividing the total market into segments of uniformity of consumers with similar needs and wants and the process of segmentation to meet the needs of each subgroup effectively (Mu et al. 2017). The purpose of the market segment is to identify the patterns of consumption by dividing the market into several sub-markets (Lin 2002).
Marketers can build product strategies or product placements that are tailored to the needs of these unique sub-markets (Lin 2002).Demographic segmentation is a market segmentation strategy which marketers will receive demographic variables of customers, such as age, race, religion, gender, family size, ethnicity, income, and education, when customers are divided (Lin 2002). This segmentation will help company’s marketing strategy to understand consumers behavior correctly so that company can optimize and concentrate resources in a market (Vargas-Hernandez et al 2017). In the advertisement, Wellman is an original supplement for men in young and adult ages and not suitable for children through the image and fame of model David Gandy as a confirmation. The price of Wellman Original (£8.55) is cheap through wellman.co.
uk (wellman 2018) since its website is created for customers that they can check product’s information. Wellman is best supplement brand as well as best sale in The UK under the confirmation of Nielsen GB ScanTrack Total Coverage Unit Sales 52 w/e so that it is worth for all social classes, such as high, middle and lower class. Moreover, people who have high or low income intribution can buy Wellman. Wellman supplement also can supply for men who had family, is being in a relationship or vice versa, any race and religions due to the health of men. Additionally, Wellman also is created for men’s hectic lifestyle. For example, the speech of David Gandy is that “I’ve been taking Wellman since my twenties to support my health and hectic lifestyle”.
Wellman concentrates on white-collar, pink-collar and blue–collar workers, such as engineers, businessman, models as David Gandy, sportsmen and gym users.Benefit segmentation is a technique of distinguishing and grouping customers based on the benefits which they want or seek (Koh, Yoo and Boger Jr 2010). Benefit segmentation helps marketers not to guess which stimulus may lead customers to purchase a good or service (Koh, Yoo and Boger Jr 2010). In the advertisement, customers may gain a number of benefits from Wellman supplement. Wellman Original, which has 29 nutrients for the development of men’s health, which improves health of the heart, bones, joints, eyes, nervous system and immune system in the long-term period of time (askthedentist 2018). It also maintains vitality in a busy lifestyle. Wellman contains many vitamins which is A, C, D, B6 and B12 with copper and natural so that it is safe for supplement users without side effects.
Through website of Wellman is wellman.co.uk, customers will increase their awareness and trust by knowing the details of product.
Such vitamins which are shown in the advertisement help supplement users to improve their health namely the ability to prevent and treat various diseases including heart problems, high cholesterol levels and eye and skin disorders (organicfacts 2018). Geographic segmentation is defined that a business company will find and satisfy customers’ wants and needs by geographic segment and it will be based on a nation, size of population, climate, states, or cities (Beane and Ennis 1987). This segmentation helps marketing strategies of a brand to match products and services to different regions, cities and countries where customers live and have needs and wants (Beane and Ennis 1987).
In the advertisement, Wellman Original is made in Britain that England is one of best countries in science in the world so that Wellman’s product helps customers to be safe in quality of supplement. Moreover, Wellman is the best supplement brand in Britain so that its prestige can bring beliefs to customers about the quality and position of Wellman’s product in the United Kingdom. Wellman also used the image and fame of a successful Britain model as David Gandy to build customers’ trust to buy Wellman Original. Wellman Original is available in Britain through Sales channel, such as supermarkets health stores, and pharmacies so that customers can buy Wellman Original in most of cities or villages of The United Kingdom.
It also shows that the main target market of Wellman is Britain by Made in Britain and UK’s No 1 for men in the AD. Furthermore, Vitabiotics cooperates with Boots, Superdrug, Holland ; Barrett to expand its market. Wellman focuses on European and Asian market, such as Singapore, Thailand, China, India, Hong Kong, Ireland, Norway and other countries via cooperation with Holland ; Barrett, Superdrug and Boots company.
Besides, it is shown that Wellman not only focuses on urban areas but also rural areas since Wellman is sold in sales channels and cooperative companies. Wellman is available in China and India of Asia, where the size of population of these two countries is largest in the world, respectively 1,414,045,928 and 1,354,051,854 (worldometers 2018). As a result, the main target market of Wellman in geographic segmentation is Britain and Wellman’s market expands to other countries in European and many large nations in Asia through cooperating with other brands. Question 1B: Brand positioning is an important part of developing a company. Positioning which is an important strategic decision and can be defined as the supply behavior and image of the company to occupy a particular position in the mind of the target market (Jalkala and Keranen 2014). Effective brand positioning allows the company’s brand to easily distinguish itself from competing brands in the marketplace and effective brand positioning emphasizes the superiority of one or more distinct dimensions that are highly valued by consumers (Bhasin 2018).Perceptual Map 1: Car brands The perceptual map above showed car vehicle industry positioning with 5 different brands.
The perceptual map shows that the positioning base is quality and price base. In the map, Lexus brand has highest position in price and quality. Lexus is a luxury brand (Sarasota 2018) and is the best reliability car brand in the world (Matousek 2018). However, Perodua is the lowest position of car brands with lowest price and quality. Perodua brand is created for lower middle class in Malaysian market and produces small cars with low cost of production as well as reliability (Athukorala 2014) so that Perodua is the weak brand in this map. While Honda has high quality and low price, Mini brand is opposite of Honda with low quality and high price. The reason is that Honda focus on middle and upper-middle class (Printerest 2018) and its reliability ranking is 9 (Matousek 2018).
However, Mini is for upper class people due to its price and Mini brand’s reliability ranking is lower than Honda, namely top 14 (Matousek 2018). The second position in the perceptual map is BMW. BMW brand is a luxury brand (Kennedy 2018), yet the reliability ranking of BMW is top 7 which is lower than Lexus (Matousek 2018) and the cheapest price of BMW car is cheaper than Lexus’s cheapest price (W 2006). Perceptual Map 2: Cellphone BrandsThe Cellphone industry with 5 different brands is mentioned in the perceptual map above. The perceptual map shows that these 5 brands in cellphone industry is under competitor base of positioning.
From the perceptual map, while Apple brand has best innovation and modern with first position, Nokia is conservative and has regular technology with lowest position. Face ID of Apple is first brand that apply this newest modern feature (Smith 2018) and Apple has innovation in and own property of operating system, namely iOS (Shoutmeloud 2018). However, Nokia failed in innovation with Symbian operating system (Adhikari 2012) and this brand does not have Face ID as Apple so that Nokia is the weak brand in this map. The third position of phone brand is Vivo in the perceptual map. Vivo’s operating system, which is Android and same with other brands (Dua 2018) and Vivo is the fourth brand that apply Face ID on Vivo V9 (Pinto 2018). Moreover, Oppo brand’s position is second that it has same innovation yet Oppo’s modern is higher than HTC.
While Oppo and HTC have same operating system, namely Android (Shoutmeloud 2018) (Hamblen 2016), Oppo is third brand which apply face ID feature on Oppo F7 (Pinto 2018), yet HTC do not have.From two cognitive maps above, there are two ways for marketers to formulate strategies to position their brands in the competitive marketplace. First and foremost, marketers may apply the PISCESS process as well as a creative process, such as plan, imagine, select, create, evaluate and start in order to gain the attention of customers from the beginning (Vardis and Vasa-Sideris 2000). The PISCESS has been used to develop new advertising as well as create new products, expand product lines, and reposition existing products so that it leads It leads to a successful positioning action plan (Vardis and Vasa-Sideris 2000).
Second, a standard marketing model which brand can use is 4Ps strategy, such as product, price, place and promotion (Mohsen et al 2016). Companies use these four elements to implement, meet needs and wants of target consumers and complete the purposes and objectives of a business, such as increasing brands’ value to clients (Mohsen et al 2016).There are two reasons why positioning is important in competitive market.
First, positioning will help company to provide tools for gaining customers (Frederiksen 2017). Positioning helps deliver the persuasive sales tools that your business development team needs to grow and grow revenue, and unique brand positioning increases the visibility of the business and recovers the minds of potential customers to help eliminate competition (Frederiksen 2017). Second, a brand will be different from other competitors in market by a unique proposition (Perez 2016). The reason is that success in an increasingly crowded market also requires focusing on attributes that bring brand’s strength and fame and help provide competitive advantage (Tina 2009). There are two suggestions to improve position for weak brands in market. First, a brand should sell the unique product to customer (Prewitt 2017). A firm needs to determine exactly what makes brand’s product and brand unique and then convey those elements to company’s target audience (Prewit 2017).
Second, brand can become a brand which create a buzz (Rastogi 2018). The fact is established that customers are more likely to buy products, if they found you are a well-known brand and if brand is compelling and amazing, it will get a higher ROI for brand’s marketing spend (Rastogi 2018).Question 2:Perception plays an important role in consumer decision making. The definition of perception is that customers’ stimuli which is sensorial and have the recognition, organization and significant interpretation to a brand or a brand’s product or its offerings (Chegwe and Anaehobi 2015).
Perception of customer is an important part of a brand since it decides the success of a brand or a product and the position of a brand and a product in customers’ mind (Bhasin 2018). ‘Organic” labels are a quality proposition that consumers can rely on to create expectations about the quality of their products, namely safety (Yin et al 2016). Value is the first perception of consumer about organic label (Wang et al 2016). Value of organic product will affect customers purchase intentions with high and low values (Wang et al 2016). For example, if the value of an organic product is high, consumers are willing to buy this product (Wang et al 2016). Trust is the customers’ second perception about a product with organic label (Xu 2013).
Customers have lack of trust so that it helps to improve understanding for purchase intention with trust of quality, safety and friendly environment (Joshi and Rahman 2015). Organic label will increase the value of the product. There are three reasons for this problem. The first reason is that organic products’ quality gives more values than conventional products (Nedra, Sharma and Dakhli 2015). Organic or green products will reduce the risk of harm to the health and increase safety of people (Ephraim et al 2007). For example, in the middle class of China, there are 73% of all respondents who have tendency to use green product due to its values, such as health and safety (Economicpickresearch 2017).
Friendly environmental factor, second, which is eco-friendly factor of product and a number of customers positively buy organic or green products (Eidi and Shabazi 2017). Customers look for environmental attributes that relate to product design and product use that have little impact on the environment and make a significant difference in environmental protection (Kumar and Ghodeswar 2015). For example, 59% of respondents desire to purchase green product to protect environment (Sou?ková 2017).
Another value of organic product is that reduce chemicals (Spear 2011). The reason is that products with chemicals will reduce or eliminate the use and generation of hazardous substances for human health and the environment (Neil 2010). For instance, A Harris, 2016 survey found that “more than half of women (55%) read beauty labels before buying, to avoid certain ingredients, including chemicals” (saferchemicals 2018).Utilizing organic label is an effective marketing strategy for many companies with three reasons. First, organic label can help customers to obtain better education about organic products and environment (Eidi and Shabazi 2017).
The reason is that when consumers buy green products, they desire to protect the environment, will have perception of responsibility to environment and have experience to organic products (Eidi and Shabazi 2017). For example, Asian consumers are just beginning to explore possible ways to consume green products due to growing awareness of environmental issues (Bing, Chaipoopirutana and Combs 2011). A number of brands, second, develop their organic labels to differentiate themselves with other competitors in market (Juwaheer, Sharmila and Noyaux 2012). Environmental-friendly product development can not only create a differentiated strategy by gratifying environmental needs but also reform marketing rules in the market (Chen and Chang 2013).
For example, 84 percent of the surveyed consumer product strategy experts said that their companies have environmentally responsible or socially responsible products in development or in the marketplace (Greenbiz 2009). Finally, companies should use organic label as an effective marketing strategy in order to help customers to improve purchase intentions from reliable information, namely label about product (Bing, Chaipoopirutana and Combs 2011). This strategy not only helps brands to gain trust of their consumers but also improve the perceived value of their product and reduces the perceived risk of their product to customers’ intention with respect to environmental considerations to improve brands’ unique selling product (Chen and Chang 2012). For example, there are an increasingly customers who are becoming label-readers, such as 73% of 1000 U.
S mothers often do research to comprehend the safety of ingredients from products that their families are exposed and a number of companies sell green product to help and improve purchase intention of customers (Kemier 2017). Overnight Recovery Serum product, which is an organic skincare product of Nourish Organic brand, is the first example for effective use of “organic” labelling (Thegoodtrade 2018). This product has U.S.D.A certification (Djilio 2018).
It means that Overnight Recovery Serum has more than 95 percent or 100 percent of organic ingredients or no chemicals which shows good quality (Djilio 2018). Moreover, Overnight Recovery Serum product is good for healthy skin with argan oil and evening primrose oil (Nourishorganic 2016). It replenishes essential nutrients for the skin and works to nourish deeply, replenish hydration, and boost cell turnover to reveal a brighter, brighter complexion (Nourishorganic 2016).Organic Soap Nuts, which are an organic laundry detergent product of Eco Nuts brand, is the second example for effective use of “organic” labelling is organic (Galloway 2017). There are three effective factors from this product. First and foremost, this product helps consumers’ perception to protect environment (Greenfootmama 2018).
The reason is that this product is grey-water and septic tank safe and soap nuts are biodegradable with 100 percentage (Greenfootmama 2018). Furthermore, this product is perfect for sensitive skin (Econutssoap 2018). Soap Nuts are disinfected with a proprietary process and our liquid detergents are sterilized so that it is not only safe for adult’s skin but also safe for baby’s skin (Econutssoap 2018). Third, soap nuts are from nature (Greenfootmama 2018). It does not cause allergies, fungus and antibacterial. They are fruits that grow on trees, dry naturally and do not require chemical processing to be effective.
These plants help environment to convert CO2 into oxygen (Greenfootmama 2018).