Market Analysis of Blackmores

Running head: MARKET ANALYSIS OF BLACKMORES
MARKET ANALYSIS OF BLACKMORES
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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