Principles of Marketing & Communications in a Digital World

This document provides an overview of the principles of marketing and communications in a digital world. It includes a market analysis, segmentation, targeting, and positioning strategies for a new organic scalp scrub product. The marketing mix for the product is also discussed.

PRINCIPLES OF
MARKETING &
COMMUNICATIO
NS IN A DIGITAL
WORLD

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY .................................................................................................................................3
Product description ....................................................................................................................3
Market analysis of the product ...................................................................................................4
Strategy for segmentation targeting and positioning of the product ..........................................6
Marketing mix of the product ....................................................................................................7
CONCLUSION ..............................................................................................................................9
REFRENCE...................................................................................................................................10

INTRODUCTION
Marketing plays a crucial in the successful launch of a new product. The marketing
department conducts various activities such as market analysis and formation of marketing
strategy which helps the company attract large number of consumers. Marketing analysis helps
the enterprise build product which exceeds consumer expectations and provides the firm
competitive advantage in their industry. This report is based on the launch of organic scalp scrub
which is new hair care product launched by British organisation Alberto Balsam. This report
includes description about new organic hair care product launched by Alberto Balsam along with
market analysis for the product. Strategy for segmentation, targeting and positioning of the
product is also provided in this report. Marketing mix of the organic hair care product is given in
this report.
MAIN BODY
Product description
Alberto Balsam is launching a new organic scalp scrub which is derived from natural
ingredients and removes dead skin cells and impurities from the scalp. This product is free from
harmful ingredients like silicones and paraben and restores natural moisture of the scalp. This
organic scalp scrub is created with blend of vanilla and rose extracts which help in repairing
damaged scalp and in while enhancing fragrant of the scalp. The organic scalp scrub offered by
the respective company contains botanical extracts of Aloe Vera, pink salt and ginger root along
with coconut milk. These ingredients are beneficial for the scalp and promotes healthy hair. The
scrub exfoliates the scalp and increases strength of the hair after first application. The natural
extracts present in this scrub increase softness of the hair from top to root and clears dead skin
cell from every part of the scalp which leaves the hair healthy and flake free. Positive effects of
this scalp scrub lasts fro a long time period and help repair damaged hair by regular usage. This
product is useful for consumers with sensitive scalp as the natural ingredients present in the
product clean sensitive scalp smoothly without causing damage. This product is specially
effective for consumers with oily scalp and consumers whose scalp is prone to dandruff. The
main factor which makes this hair product highly beneficial for consumers which have an oily
scalp is the presence of high quality Aloe Vera extracts. Aloe Vera is effective in unblocking
hair follicles which are blocked by excess oil which is helpful in repairing hair damage caused

by oily scalp. Aloe Vera is also helpful in removing dandruff which is a common hair problem
faced by may British consumers. Pink salt ingredient present in this scalp scrub boosts
circulation, clears dandruff and improves scalp health of the consumer. Coconut milk is main
ingredient of this scrub which is rich in hair nourishing vitamins B, E B-1, B-3, B-5. Lauric acid
present in coconut milk is helpful in increasing strength of hair cuticles which reduces hair loss.
The organic scalp scrub is available in 250 ml squeeze tube packaging which can be easily
applied by any consumer at an affordable price of £24.00. The idea for developing an affordable
and organic scalp scrub which can be easily applied by consumers came after analysing market
trends and understanding the needs of the consumers. British consumers do not have an option
for an affordable and effective scalp scrub which contains natural ingredients and is useful for
consumers with sensitive scalps. This product is developed in order to cater to the needs of
consumers which are not able to afford high priced hair care products and require natural
solutions to their hair care problems. This organic scrub scalp does not contain harmful
chemicals unlike other low priced products and is made with high quality natural ingredients.
Consumers with sensitive, oily and normal scalps can use their products as it is highly effective
on all scalp types which is one of the main aim behind development of this product.
Market analysis of the product
Effective market analysis is helpful in identifying current market trends, opportunities for
growth and competition present in the industry. Business organisation conduct market analysis in
order to gain information about the profitability of their products and understand factors which
could effect successful launch of their products (Bhandari, 2018). Market analysis of the organic
scalp scrub offered by Alberto Balsams is provided below:
Porter's five forces analysis
This is a framework used to analyse the competitive environment of any industry.
Competitive forces present in the market such as threat of new entrants and substitute products is
analysed with the help of this framework. Business organisation gain profound understanding
about competitive forces which impact the profitability of their product and act as barrier to
successfully launch of their product which helps the company introduce their product in a way
which maximises their profitability (Bruhn and Schnebelen, 2017).
Threat of new entrants

This element of framework provides information about entry barriers which prevent new
business from entering the industry. If the entry barriers for selling a particular product is high,
the organisations market share is low as business firms can easily offer products. Low threat
barrier to entry allow the company to increase their market share as new firms cannot establish
themselves in the industry easily. The threat of new entrants in relation to organic scalp scrub
products offered by the Alberto Balsam is high. The main factor which influences low threat of
new entrants in this part of the hair care industry is that any organisation can easily develop and
offer a product which cater to the need of certain segment with low initial investment. In
addition to this distribution of scalp scrub products can be completed at low costs through online
mediums (Charter and Polonsky, 2017). New entrants can easily take some amount of market
share by developing and selling their products through online retail organisation while large
firms from beauty industry can develop enter scalp scrub industry and reduce the profitability of
the respective company which aims to introduce new organic scalp scrub.
Threat of substitutes
Ease of substitutions and inclination of the consumer towards substitutes is discussed in
this element of the framework. The threat of substitutes in relation to the organic scalp scrub hair
care products is high. The main reason which has increased the amount of substitute product in
organic market for scrub scalp is that consumers can easily utilise home remedies which are
made of natural ingredients or switch to other products if they do not find the particular product
offered by Alberto Balsams effective. The scalp scrub product offered by the respective
company faces threat of substitutes from cheap chemical hair products as they are available at
very low price and DIY home remedies which is highly popular among consumers.
Competitor Rivalry
This element of the framework revolves around understanding competitive intensity in
the industry. Competitive rivalry in context of organic scrub scalp is high which forces the
respective company to provide high quality product in order to gain profitability. Basslines firms
offering organic scrub scalps face competition from various interactional brands as well as local
small vendors (Chernev, 2019). The intensity of competitive rivalry in market for organic scalp
scrub is highly disadvantageous for the respective firm.
Bargaining power of the supplier

The element of the Porter's five forces analysis refers to the pressure suppliers can put on
the company by reducing the quality of their materials or rising the prices at which they sell
inputs. The bargaining power of the supplier in relation to the organic scalp scrub product is low.
The primary factor which has resulted in low bargaining power of the supplier is that there are
large number of suppliers which offer organic raw materials needed for the production of scalp
scrub which contains natural ingredients (Dean, Lee-Post and Hapke 2017). Low input
differentiation and effect of raw material on overall costs is low which are the factors resulting in
low bargaining power of suppliers.
Bargaining power of the consumer
The influence of consumers on the business organisation to provide high quality products
at low costs is described in this element of the framework. The power of buyers in relation to
organic scalp scrub is high. The main reason which has resulted in high bargaining of the
consumer base is that consumers increasingly expect the products to be specific to their meeds.
Buyers can easily influence the price of their products as they have many alternatives which they
can switvch to if they do not find the product effective for their specificity hair care needs. High
bargaining power of the consumers reduces high profitability and decreases long term profits of
the company.
Strategy for segmentation targeting and positioning of the product
STP analysis
The STP analysis stands for segmentation , targeting and position. This marketing model
is used by business organisation to market their product directly to their target consumer group.
STP analysis in relation to organic scalp scrub which is offered by British hair care brand
Alberto Balsams is given below:
Segmentation
This part of the analysis revolves around division of the target market into segments
based on the common characteristics. Market segmentation helps the company deliver products
according to consumer needs which ensure success of the product launch. The segmentation
methods utilised for organic scalp scrub is behavioural segmentation. Behavioural segmentation
divides the consumer base on the basis of their shared behavioural pattern (Farrell, 2020).
Consumers grouped through this segmentation method share similarity in terms of their reaction
to the communicative efforts of the company or previously purchased products. Behavioural

segmentation for organic scalp scrub includes consumers which use scrub for sensitive scalp,
purchase products for dandruff removal and consumers which have oily scalp.
Targeting
The main focus of targeting is to identify the most profitable market segment for the
product and consumer segment is able to generate desired conversions. The target consumer
group for organic scalp product offered by the company is consumers which are prone to
dandruff. The main reason behind behind market segment of consumers which are prone to
Dandruff being the target consumer group for organic scalp scrub is that the ingredients present
in this product remove Dandruff. Coconut milk and Aloe Vera are main ingredients of this
products which make the product Dandruff removal while nourishing their scalp (Gossen,
Ziesemer and Schrader, 2019).
Positioning
Product presentation and marketing channels are the main focus of this element in STP
analysis. The main focus of positioning is to position the product effectively in front of the target
consumer base. The product needs to be positioned in such a way that the consumers purchase
the products in place of the other substitutes. Unique selling proposition of the product is
essential to effectively position the product in from of the target consumer base. The unique
selling proposition of organic scalp scrub offered by the respective organisation is that it is made
from natural ingredients and is effective in solving hair problems of consumers with oily, scalp,
sensitive scalp and normal scalp without causing hair damage. This product attribute can be used
by the respective enterprise for product positioning as there is high demand for organic products.
Marketing mix of the product
Marketing mix refers to a set of actions that organisation use to promote its goods or
services in market. It is a process where they attract customer by defining the features, prices and
other factors so they purchase goods or services in market (Heckman, Vestergaard and Sole,
2018). The main aim of marketing mix is to focus on various components of marketing which
help organisation to make effective decision for introducing new product. The 7P's of marketing
mix of organic scalp scrub is mentioned below: Product: It is defined as an item which is prepared for selling to customer in market and
is designed in such a way that satisfy the needs and requirements of customers. In context

to Alberto Balsam, they have launched a product which is organic scalp scrub which is
made from natural ingredients which help to reduce dead skin. Price: Price is a cost which is decided by organisation on the basis of production cost,
segmented people and demand to purchase the product in market (Hill and et. al., 2017).
In relation to Alberto Balsam produce the organic scalp scrub at affordable prices from
other organisation. As they sell the newly launched product with a price of £24.00 and
produce them in better quality. Place: This is the main important factor as where product should be sold or point of sale.
Every organisation have to monitor the place where there is target audience. According
to Alberto Balsam, they sell their product from two places which is both online and
offline stores. Promotion: This is the another component to market promote product so to make goods
or services known to customer. In other words, it can be said that to make attention of
customer as they can purchase goods from the available market. In relation to Alberto
Balsam, they promote the organic scalp scrub in order to market the new product. They
promote their product through online which is digital marketing and social media
marketing. People: People is the one who sell and interact with customer as they are involved in
various activities in the transaction of buying and selling goods or services in market. In
context to Alberto Balsam, the staff members are present in stores to sell organic scalp
product in market as this help organisation because employees interact with them and can
understand needs and requirements of customer. Process: Process is defined as where goods or services are delivered to customers. This
include delivering method, payment system, maintaining customer relationship
(Homburg, Jozić and Kuehnl, 2017). According to Alberto Balsam, they deliver organic
scalp scrub to customer through online and staff is involved in stores.
 Physical Evidence: This element of the marketing mix refers to everything the consumer
sees while interacting with the consumer such as packaging of the product. Organic scalp
scrub provided by the company is available in squeeze tube packaging which contains
250ml of product. This packaging is colourful and garbs the attention of the consumers.

The packaging of the product also contains in ingredients of the scrub which gives
beneficial information related to the product.

CONCLUSION
From the above report it is concluded that marketing is necessary for successful product
launch. Market analysis is helpful in understanding the current needs of the market which helps
the company construct products which surpass consumer expectations. In addition to this
competitive forces present in the market can be analysed through market analysis which assist
the company in gaining beneficial position in their industry. STP strategy helps the company
simplify the segmentation progress and identify the most profitable market segment. The market
segment which generates high amount of conversions share some basic characteristic which can
be identified through STP. The firm can easily market their products to this group and position
their products in a way which induces them to purchase the products and help the company
generate high amount of sales. The marketing mix of the product provides the company
information about ways to effectively promote their product and enhance their sales.

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