This study explores the consumer behaviour towards OSIM Company’s product, OSIM uMagic, in Singapore. It includes a situational analysis, influences of targeted consumers, target market decision making process, and recommendations for marketing strategy.
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Study of Targeted Market for giving Marketing Strategy 1 Executive Summary: The purpose of this study is to find out the behaviour of consumer towards OSIM Company’s product OSIM uMagic in the country of Singapore. It is very much important for business, as because of this, it can easily survive in the marketplace. Therefore, companies also make marketing strategy to serve this purpose. Consumer Behaviour is the study of how a consumer comes to a decision for buying a product by satisfying their needs and wants effectively. OSIM Company provides healthy lifestyle products; product range is uInfinity Luxe, uInfinity, and uMagic and its product are now at the maturity stage of the lifecycle. It has majorly two competitors in the market place that is OGAWA and OTO Company. PESTEL and SWOT Analysis is done to know about the market of Singapore. It is important to select the target market for the product selected by the company to make correct segmentation based on the similar characteristics of the population selected for this purpose. In this, the target decision-making process is explained to show how consumer goes through the decision of purchasing a product. Factors influencing consumer behaviour are such as psychological, social, cultural, personal and economic. In the end, the recommendation is given for adopting the marketing strategy to make more successful the company in the market as compared to its competitors.
Study of Targeted Market for giving Marketing Strategy 2 Contents Executive Summary:..................................................................................................................1 Introduction:...............................................................................................................................3 Situational Analysis:..................................................................................................................3 Influences of Targeted Consumers:...........................................................................................6 Target Market Decision Making Process:..................................................................................8 Recommendations for Marketing Strategy:...............................................................................9 Conclusion:..............................................................................................................................11
Study of Targeted Market for giving Marketing Strategy 3 Introduction: OSIM Company name is derived from its founder’s name Mr Ron Sin. It offers consumer products in the market. It tends to focus on the well-being of the customers, by helping them to feel and to look good. It is a well-established brand launched in the year 1980. Firstly, it is known for providing electric and household items like a knife, mobile rods for drying the clothes. It was set up with having the vision to give an amazing and healthy lifestyle to consumers and its mission is to become a global leader in the industry(BRAND OSIM, 2018).It is Asia’s number one company. It takes care of advice, service, warranty, maintenance, and trade-in for the customers. It markets distributes and sells its product successfully in North Asia, South Asia as well as also at international level(Osim International facts, 2019).It makes products such as massage chairs, neck & shoulder massagers, foot rollers and fitness equipment. It is involved in wholesaler, retailer and distribution businesses. It also does manufacturing and selling of luxury tea in the market. It gets the title of International Safety Standards because of health and safety conditions maintained properly in the company. Its products are made from good quality as it meets the quality standards benchmark(Inspiring Life, 2018). Its brand is created by name” OSIM” in which “O” letter means the global and remaining word is derived from the founder’s name. Its marketing strategy is linked with creating a point-of-sales network and has geographical coverage in the market. Its outlets run by the company and its subsidiaries mainly located in the countries Singapore, Hong Kong, Malaysia, and Taiwan and also open various franchises in the market. It came into limelight because of its massage chairs becoming famous in South-East Asia and China particularly. Its product sold at more than 500 stores. Its founder becomes the 19thrichest person in Singapore when he becomes the CEO of the company. Here, the discussion is on consumer behaviour and market analysis of the OSIM Company(Company Overview of Osim International Ltd., 2019). Situational Analysis: SWOT Analysis: -
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Study of Targeted Market for giving Marketing Strategy 4 It stands for strengths, weakness, opportunities, and threats, for evaluating the competitive position of the company and used for planning strategically. It checks both factors whether that is internal or external to a company and for evaluating the current and future potential of an organization(SWOT Analysis: Discover New Opportunities, Manage and Eliminate Risks, 2019). Strengths Provides many products for maintaining a healthy lifestyle It is a popular and experienced brand It focuses on customer satisfaction It has a good range of network for selling in 30 countries Weakness: Its products are expensive so it is not able to reachable to every class of people. Coverage of markets is low, as in case of competitors Opportunities: Market share to be increased to cover the markets Development of low-cost goods so that lower segment can be attracted towards its products and making goods reachable to each and every person Merger with gyms People are becoming health conscious as most companies provide harmful products which lead to giving impact on health Threats: Various alternatives exist in the market which may substitute its products in the future Competitors may reduce their market share Buying power of consumers increased Pestle Analysis: It is a form of analysis which is used to analyse the macro-environmental factors impactontheorganization.Itstandsforpolitical,economic,social,technological, environmental and legal factors which give impact on business operations.
Study of Targeted Market for giving Marketing Strategy 5 Source:(Scanning the Environment: PESTEL Analysis, 2016) Political: Political risk is low in Singapore. It is a democratic country, in which people are allowed freely to choose their leaders. It enjoys political stability. Now, PAP party that is People’s Action Party is running in the country which uses centralization of authority for taking decisions. Therefore, business chances are increased and by this, the quality of life of people in Singapore has improved. It can be said that political factors are favourable for the company as global relations is high and the government is stable which, put efforts for increasing the population in the country. This, in turn, expands the market for the company through which sales can be increased. Economic: Singapore’s economy is free- market economy and its GDP increased regularly. It provides a competitive environment for doing business, but this labour cost is more. It benefits the company as it is free from the evils of corruption and supports the business. It is a tourist spot by which sales of the company increased. Social:
Study of Targeted Market for giving Marketing Strategy 6 Singapore adopts different culture and traditions. Literacy level is high in the country because of this; people learn various languages such as Chinese and English which in turn helps in increasing trade for businesses. It is suitable for the company as people do work without taking care of heath so, it can provide health care products to them. Technological: By this factor, the country is moving towards advancement by adopting IT. It lowers the cost of conducting business and also by this company is benefitted as it is easier to get feedback from customers and to booking online. Environmental: Its environment is good for the business point of view, but it has a scarcity of water resources. Water is very much essential for providing OSIM company’s products so it has to bear the huge cost because of this, profit declines(PESTLE Analysis of Singapore, 2019). Legal: In Singapore, various laws are applicable to businesses. It impacts the business of the company as it hires labour from outside but it has to hire local people as per the legality principle. It is not suitable for the company as locals charge high rates as compared to others. Influences of Targeted Consumers: Potential target market chosen is of people who are working in Singapore and the company’s product is OSIM uMagic. Working population is classified into two groups mainly one is of comfort seekers means people who do purchase by seeking the comfort- level and other one is opportunists’ means who purchase during the promotion of product, it isdonetoidentifycorrectmarketforthecompany(Thesegmentation,targetingand positioning model, 2018). Difference between opportunist and comfort seekers: Based on the age group, an opportunist is 25-60 whereas in comfort- seekers are 30-60. Based on buying decision, opportunist needed incentives for doing purchase while comfort seekers focus on high product performance. Based on behaviour, the opportunist is concerned about the price
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Study of Targeted Market for giving Marketing Strategy 7 charged by the company while comfort- seekers do not give importance to price but give preference to comfort level. So, target market segment selected is comfort-seekers for the company’s product, based on the above discussion held. It is selected because they put more value to comfort and not to price, and they select product only when after conducting proper research. When they satisfied with the quality then becomes loyal to the company’s product(Sethna & Blythe, 2016). Influencers of the target market are: External Influence: A.Culture: Singapore’s people follow and believe in cultures. Country’s GDP is growing plus the income of society is also increasing due to this growth rate. People work for longer hours in their jobs because of this they prefer lifestyle products which relieve their mind and body to be active, so they adopt these kinds of products easily. They see reviews of the product and conducts research before buying so not to buy an unsuccessful product(Buil, Martinez, & Chernatony, 2013). B.Demographics: Here, people put efforts in order to avoid risk in the products. They become ready to buy when convinced enough about the information gathered. It is required by people because they live in a hectic lifestyle. So, it is suitable to target market. C.Group Influences: It is done when purchaser seeks an opinion from family and friends before purchasing any product and decision is taken on the basis of suggestions of them. It is taken to get the best decision, regarding the similar type of products available in the market. Therefore, decision-makers play an important role in selecting the product, especially for the luxurious product, as they are expensive. It is the important influencer of consumer behaviour, as buyer obtains information from trusted ones(Nayeem, 2012). Internal Influence: A.Need, Motives and Desires:OSIM uMagic is a product which is mainly targeted on luxury customers. It is come into esteem needs but attained only when basic, safety, belongingness needs are satisfied well. It is a type of prestige symbol which is
Study of Targeted Market for giving Marketing Strategy 8 maintained for having a good status level in the society. It gives support to society by offering massage chairs by which they relax, moreover, targeted on family members and friends. Thus, it also comes in the category of psychological needs(Arenas- Gaitan, Sanz- Altamira, & Rammirez- Correa, 2019) B.Exposure: It is done by advertising successfully in various platforms such as in Social Media and Television to attract the audience towards the product. It highlights features of the product and to gather more information about the product, by removing the perceptions of people towards the company’s product. C.Interpretation: It is done by highlighting the functions of the product and tells how to use the product so that, it can be easily purchased by consumers(Rani, 2014). D.Attention: It gets attention by endorsing celebrities for the advertisement purpose. E.Learning: Customers does learning for information about the product, in order to select the product. They tend to find reasons for doing purchase, in order to purchase the right product which satisfies their needs and wants successfully(Lantos, 2015) F.Lifestyle: It is suitable for a person who enjoys the comfort of living and it is also being given to family members for taking care of them. Target Market Decision Making Process: A.Need Recognition: It is the first and foremost step of the process; it is done for identifying the needs of consumers who are selected in order to satisfy them. It takes an important part in the decision making the process as, buying decision mainly supported this. OSIM product satisfies the esteem needs of the consumer so; the consumer has to satisfy the previous level needs related to basic, safety and friendship before achieving this need. It is difficult to identify the needs of people as people have a different type of needs(Maslow's Hierarchy of Needs, 2018). B.Searching of Information: It is the second stage of the process, it is done after the need is recognized of targeted customers. It is done by evaluating the positive and negative aspects of the product. It is done because it is costly so searching of information is relevant for taking a decision. In this, information is obtained from varioussourcessuchasgoingtoretailersforinformationgathering,takethe assistance of family& friends and from advertisementgiven by the company (Marketing & Buyer Behaviour- the Decision-Making Process, 2018).
Study of Targeted Market for giving Marketing Strategy 9 C.Evaluation of alternatives: It is done to choose the best option out of various alternativesavailablein the market. Major competitorsof company OSIMare OGAWA and OTO. In OSIM uMagic there are 7 levels, in OGAWA Smart Delight Plus there are 5 levels, in OTO EL.VI Surf Chair there are 2 levels of massage is done. Place where products are sold at OTIM is online and retail stores with no distributors, OGAWA is at retail stores, OTO is at retail stores but with intermediaries (Oto Elvi Massage Chair, 2014).Rating is done on the basis of different parameters. Such as on performance, OSIM at 18, OGAWA at 16 and OTO at 12 points. On the basis of price, OSIM at 12, OGAWA at 10 and OTO at 15 points, rated on the basis of low price. Based on the warranty given, OSIM at 10, OGAWA at 15 and OTO at 5 points. Size of products in the companies is OSIM at 3, OGAWA at 3 and OTO at 5 points(OGAWA Smart Delight Plus, 2019). D.Store selection and purchase decision: It is done to selecting a decision for purchase made by the consumer; it is done after evaluating products of competitors in the market. The consumer must give focus on, selecting the brand first then after, on outlet because it is important to choose such a brand which is famous in the market because trust is established in the market favourably and also attracts customers. Though, its products are also selling online but, most buyers purchase from retailers as to know more about the product before purchasing the product. E.Post-Purchase Behaviour:In this analysis, various factors to be kept in mind to see whether the decision-making process is made successfully or not after purchasing of the product by the consumer. It is done because satisfied consumer became the asset of the company as they repeat sales and become loyal to the company’s products. It is a necessity to run these types of activities because it is a costly product and it is with a motive to solve problems of consumers so to make further purchases in the brand. The company runs product disposal facilities, in which exchange facility is there, in this old massage chair is replaced with the new one by giving a discount for purchasing a new one and also the old chair is moved by the company without purchasing but with charging some amount for moving(Raghavan, 2010). Its product is basically for those who purchase a product for giving someone so, it will satisfy both the one who receives a gift and who gives a gift to another person in order to become loyal. It also launches a membership card, for the regular customers(Hamper, 2014)
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Study of Targeted Market for giving Marketing Strategy 10 Recommendations for Marketing Strategy: 4 P’s of Marketingare the product, price, place, promotion, in order to understand the marketing approach followed in the company.(The Marketing Mix, 2019). a.Product: In magic, the technology used is of a new type that is V-grip which is not adopted by other companies easily. In Smart Delight Plus, it adds therapy with the massage, to give experience to customers, which are not adopted by generally in companies. b.Price: For both the companies, comfort level matters irrespective of the fact what is its price. Opportunist and Comfort seekers look in a different way about the price of the product because of their different level of thoughts. c.Place: OSIM Company offers its products in both places whether in retail or in at online but OGAWA Company provides its products to customers in retail stores only. d.Promotion: For doing promotion of product both companies use television and social media. But, it is expensive for companies because of using celebrities for conducting advertisements(Understanding the Marketing Mix Concepts- 4 Ps, 2019). Thus, marketing of the brand is done well as it becomes successful, in achieving its mission to develop a habit of a healthy lifestyle in people. It has been done through the use of innovative technology and by promoting its products in the market(Cheung & Lee, 2012). Analysis of Marketing Strategy: i.Perception: In perception, various things are included such as exposure, attention, and interpretation. Exposure of more people has been seen in the advertisement of OSIM as compared to its competitor OGAWA. It gains the attention of the target market chosen(Singh, Pangarkar, & Heracleous, Business Strategy in Asia: A Casebook, 2014) ii.Psychological: It is done by highlighting the solutions of the problem, with the using of this product like body ache problem is removed. So, in short, it captures the attention of the target market because its advertisement gathers more attention as compared to its rival company OGAWA(Kuswanto, 2019).It has to pay a huge cost for the advertisement which is not good, but it can be successful in the long-run. As, advertising benefit is seen after a long time so it is not considered as a cost but,
Study of Targeted Market for giving Marketing Strategy 11 as an investment in which return comes generally in the form of sales(Haider & Shakib, 2017). Recommendations: A.It earns a competitive advantage in the market due to their advertising efforts; by these people buy products. In their new marketing strategy, endorsing two popular celebrities for the advertisement purpose and increase their target market by putting efforts on youth who work in Singapore to make them relax from the hectic schedule running in their working environment(Singh & Delios, Strategy for Sucess in Asia:Mastering Business in Asia, 2012). B.It can also promote its products to Facebook so to capture the attention of more consumers. It has been done to increase the level of communication as, people spent more time in such sites so, and it becomes necessary for doing promotion. C.It gives benefit to those consumers who are likely to be the purchase of a product, by offering a trial of product freely to know how it works and from what purpose it is helpful to them(Maslow, 2019). D.It does customization in the product according to the needs of consumers. E.It has to put efforts, to make the price of goods reasonable so that lower segment can also purchase it. F.It also finds new customers in a way as it is done by its competitors. Conclusion: To sum, it can be concluded that consumer behaviour is a necessity for knowing the consumers well in order to present goods in a way that is wanted by them in order to satisfy their needs and wants successfully. OSIM Company’s target market is identified and then out of this, segmentation is done to cater market successfully. Its product uMagic, uses V-grip technology to increase the comfort level of people in massage chairs and this type of technology is not adopted by its competitors so, it will give benefit to the company. For the promotion of this product, advertisement is done to attract the consumers in the market, but it is a costly affair for the company. Therefore, a recommendation is given for improving the marketing strategy of the business and also by the adoption of this profit of the company will increase.
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Study of Targeted Market for giving Marketing Strategy 13 The segmentation, targeting and positioning model. (2018). Retrieved from Smart Insights: https://www.smartinsights.com/digital-marketing-strategy/customer-segmentation- targeting/segmentation-targeting-and-positioning/ Company Overview of Osim International Ltd.(2019). Retrieved from Boomberg: https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=6468903 OGAWA Smart Delight Plus. (2019). Retrieved from OGAWA: https://www.ogawaworld.net/products/relaxation/smart-delight-plus.html Osim International facts. (2019). Retrieved from CNN: http://edition.cnn.com/2008/BUSINESS/04/30/osim.facts/index.html PESTLE Analysis of Singapore. (2019). Retrieved from PESTLE Analysis: https://pestleanalysis.com/pestle-analysis-of-singapore/ SWOT Analysis: Discover New Opportunities, Manage and Eliminate Risks. (2019). Retrieved from Mind Tools: https://www.mindtools.com/pages/article/newTMC_05.htm The Marketing Mix. (2019). Retrieved from MarketingMix.co.uk: https://marketingmix.co.uk/4ps-marketing/ Understanding the Marketing Mix Concepts- 4 Ps. (2019). Retrieved from CLEVERISM: https://www.cleverism.com/understanding-marketing-mix-concept-4ps/ Arenas- Gaitan, J., Sanz- Altamira, B., & Rammirez- Correa, P. E. (2019). The complexity of Understanding Consumer Behaviour from the Marketing Perspective.Complexity, 3. Buil, I., Martinez, E., & Chernatony, L. d. (2013). The influences of brand equity on consumer responses.Journal of Consumer Marketing, 30(4), 62-74. Cheung, C. M., & Lee, M. K. (2012). What drives consumers to spread the electronic word of mouth in online consumer-opinion platforms.Decision Support Systems, 53(1), 218- 225. Haider, T., & Shakib, S. (2017). A Study On The Influences of Advertisement On Consumer Buying Behaviour.Business Studies Journal, 9(1).
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