Market Analysis of Blackmores

This report provides a comprehensive market analysis of Blackmores, including environmental and competitive pressures, market conditions, market segment and positioning, and consumer value in new product development.

Running head: MARKET ANALYSIS OF BLACKMORES
MARKET ANALYSIS OF BLACKMORES
Name of the Student
Name of the University
Author Note

1MARKET ANALYSIS OF BLACKMORES
Executive Summary
In this report, the aim of the study will be to understand the environmental and competitive
pressures faced by Blackmores, the market conditions for Blackmores, the market segment
and positioning and the concept of valuing the consumer in the new product development
process.

2MARKET ANALYSIS OF BLACKMORES
Introduction
In this report, the aim of the discussion will be to understand the environmental and
competitive pressures faced by Blackmores, the market conditions for the company, the
market segment and positioning and the concept of valuing the consumer in the new product
development process. Blackmores is planning to develop a product or want to follow a
diversification strategy where Blackmores is planning to target the current market or
penetrate into a new market place as a whole. Blackmores Limited is an Australian company
which was founded in 1932. Blackmores is specialized in manufacturing a wide range of
vitamin, mineral and herbal additives or supplements. The products are sold in 17 various
markets across the Asia Pacific region. It is the leading health brand of Australia, and
received the award of the Most Trusted Brand for vitamins and supplements in the country of
Australia (McGorry, Bates& Birchwood, 2013).
Current Market Segment
At present, the common people of Australia and New Zealand uses additives or
supplements in the form of multivitamins for a variety of reasons, like managing to help them
to intake calcium and glucosamine as recommended by the doctors or nutritionists, to live a
healthier lifestyle. The proactive approach to health has increased the demand to intake
supplements and vitamins based on the study on the consumer trends. The older consumers of
Australia are the major driverswho are following this trend. The profiles of the consumers
who take health supplements that will help Blackmores Limited to segment or divide the
market are discussed below (Yanes-Estévez, García-Pérez& Oreja-Rodríguez, 2018):
Geographic – The main capital cities of Australia have the working adults who has to
travel or relocate within these cities for purpose of job. So, these urban areas consist of a vast
range of pharmacies, groceries as well as health food stores that will help Blackmores
company to stock the health additives in these places. On the other hand, both the regional
and urban areas in Australia as well as New Zealand consist of people of more than 55 years
of age, still maximum of these people live in the localities where there is a prominent
presence of the senior citizens. These kind of areas should have accessibility to pharmacies
and shops that will help the company to stock the products.
Demographic–The working professionals earn a good amount of money which help
them to have the capacity to buy those multivitamins. As the products of Blackmores is much

3MARKET ANALYSIS OF BLACKMORES
higher than its competitors, the company attracts the people who only have a good earning
capacity. Gender is another major factor which decides the buying factor of the health
supplements, with women are the main buyers. This is a social trend seen in the market of
New Zealand regarding these kind of supplement products. It has been in the researches that
the women tend to buy the supplements more than the men in the market of New Zealand.
As the people who are 55 years of age or above, or are on the verge of entering the senior
citizenship, the income largely depends on the savings. But due to their health conditions
because of the age, they are inclined to buy more of the products of Blackmores.
Behavioral – The sensitivity of price is usually lower for the working professionals as
they possess the capability to buy those health additives or multivitamins. So price do not
have much effect on their buying decision. It increases when there is higher work pressure is
during the seasonal changes, mainly during the winter season. In case of the aged people,
they are quite price sensitive as the income is limited to them. Some of the aged people have
to take the supplements for daily basis for the benefits, so price elasticity does not have much
effect on them.
Psychographic–The multivitamins or health supplements will help to reduce the
stress factor from the live of the people and increase the health conditions. The working
professionals are more health conscious and these health additives will help them to lead a
healthier lifestyle by consuming the products of Blackmores. Aged people are having easier
lifestyles compared to the younger ones, which helps them to focus on their basic necessities
for their health and wellbeing, so they can plan the buying amount accordingly.
Target Market Segment
The current targeted market indicates that there is a good opportunity for Blackmores
Limited to target for further market penetration, like New Zealand in this case. The most
strategic business option for Blackmores will be to focus more on the working professionals,
whose age will be between 30 to 55. As the sickness is growing in this age category, as well
work pressure is also increasing on daily, basis Blackmores will have the opportunity to
target this segment and sales their products, as this target segment will intend to stay fit and
cope up with the daily work pressure. The sales revenue will automatically increase based on
the profile segment of the working professionals, as they have a stable and consistent income,
thus, affordability will not be a problem for them. Moreover, they do possess a proactive
approach towards their health and fitness, in their busy lifestyle. So, it will be a favorable

4MARKET ANALYSIS OF BLACKMORES
position for the company to target those people of New Zealand so that more revenue can be
generated from the selling of the heath supplements to the targeted people. The targeted
people will, thus, get a convenient way to stay health after taking those multivitamins or
health additives. As the majority of these people have families, so it will be easier for
Blackmores Limited to increase the distribution of their products to the younger market,
which will, in turn, help them to dominate the market or increase the market presence of them
(Brown-Paul, 2016).
Value Proposition
The value proposition is the promise of value which is communicated, delivered as
well as acknowledged. It can be termed as the acceptance from the consumer about the
process or way of delivering, experiencing and acquiring. In this case, the value proposition
of Blackmores is the huge range of high quality natural health additives or multivitamins. In a
growing marketplace which is full of competition (Payne, Frow & Eggert, 2017). Blackmores
will love to emphasize their aim or focus to provide good superior quality productswhich will
fulfill the needs and demands as well as the expectations of the targeted customers of New
Zealand. The company will be the ideal one to target the market full of working conditions
who are looking for healthy lifestyles, which will be easier and convenient to distribute the
product in the region of New Zealand. As most of the working professionals work in the
urban regions or metro cities, it will help the company to increase their marketing within
these areas, which will attract moreof these people and help in promotion of the company
outside the capacity of the target market of the company (Yanes-Estévez, García-Pérez&
Oreja-Rodríguez, 2018).
Position Statement
Blackmores will focus to sale their products at a comparatively affordable price
without compromising on the quality maintained by the company. The working professionals
will feel confident enough after the consumption of the health additives of the company, to
manage their health and wellness due to the variety of products produced by Blackmores.
This can be viewed in the positioning map given below:

5MARKET ANALYSIS OF BLACKMORES
High
convenience
High health
consciousness
Low
convenience
Low health
consciousness
Go Healthy
now
Swisse
Table 1: Positioning Map of Blackmores Limited (Current Market)
Source: Created by the Author
Product Recommendation and Justification
The present brand identity of Blackmores Limited helps to describe the company as
the leading natural health company of Australia. The company produces a diverse range of
health additives or multivitamins product for the customers in the Asia Pacific region under
the brand name of Blackmores. The company also possess a range of other products like
BioCeuticals, PAW, Fusion Health, IsoWhey and Oriental Botanicals (Anwar& Hasnu,
2016). The name of the company itself is the brand logo for them, which is the focal point of
the company. No new product need to be manufactured to target the people of New Zealand.
Only rebranding themselves with packaging and new slogan can be used. This will help the
customers to distinguish their product from the other products of the competitors, mainly
from Go Healthy, the major competitor of Blackmores. But Blackmores might have the
Integria

6MARKET ANALYSIS OF BLACKMORES
competitive edge as it is one of the oldest companies dealing with these kind of products, and
have a brand name with them globally. Many people will rely on the age of the company, and
will tend to buy the products of Blackmore due to the age of the company.The company
should intensify their values by engaging the people with a memorable slogan as well as
regular exposing that through the advertisements in various forms of promotionas branding of
the products. The brand awareness should be properly maintained by the company, so that the
brand hitting will be done to the customers by proper and effective means of promotion in
New Zealand. A new slogan for the company can be “Preserve Health Naturally”, which will
help to describe the value and principles of the company in the marketplace of New Zealand,
rather than using their current slogan “Be a well-being”, which do not transfer the natural
health values of Blackmores. Till now, the company has incorporated the brand loyalty with
the present market by the usage of an Al-powered Well bot on their website, just to improve
the consumer engagement (de Villiers& Alexander, 2014). Blackmores can improve this
scenario in New Zrealand by introduction of loyalty memberships as well as rewards
incentive for their loyal consumers, which will help them to connect the brand as a positive
experience for them. This will help them to increase their revenue earning by word-of-mouth
publicity. Fresh branding strategies by the company will help the company to retain the
present base of customers, apart from following the old branding strategies and being a
prominent brand in the market. This will also help the company to target a brand new market.
So, it can be said that these kind of changes will ultimately help Blackmores to increase the
market growth and have a competitive edge over the others. This will also help the company
to expand in more untapped regions, so that it will help the company to earn more revenue
and bring innovation in terms of product manufacturing and promotional part. New slogan
and promotion of that slogan will help tom attract new people as well as to sustain the old
customers to the company.

7MARKET ANALYSIS OF BLACKMORES
High convenience
High health consciousness
Low convenience
Low health consciousness
Blackmores
Go Healthy
Swisse

8MARKET ANALYSIS OF BLACKMORES
Table 2: Positioning Map of Blackmores Limited (New Market)
Source: Created by the Author
It can be seen in the second positioning map that Blackmores will be placed in the quarter
where the products of the market will be highly healthy consciousness as well as will be
highly available in the market of New Zealand.

9MARKET ANALYSIS OF BLACKMORES
Reference
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Appendix
Table 1: Positioning Map of Blackmores Limited (Current Market)
Table 2: Positioning Map of Blackmores Limited (New Market)