QAM020L061A - Strategic Marketing: Garnier Cream Launch Strategy

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This report details a strategic marketing plan for the launch of Garnier Cream, a product targeting men seeking smooth, hydrated skin with anti-aging benefits. It includes a market analysis, identifying key trends like increased male grooming and the shift towards organic products. The report uses the STP model to define the target market and positioning strategies, followed by a marketing mix outlining product features, pricing, promotion, and distribution. Implementation issues are addressed, considering customer behavior, social factors, and promotional strategies. The analysis highlights opportunities for Garnier to capitalize on the growing male cosmetic market. Desklib offers a wealth of similar student-contributed assignments and study resources.
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Strategic Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Description about product......................................................................................................1
Critical Analysis of the Market Context.................................................................................1
STP.........................................................................................................................................4
Marketing mix........................................................................................................................6
Implementation.......................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic marketing is utilised by marketing teams of companies to accomplish their
organisational objectives by developing and keeping a sustainable competitive advantage over
others in the market. This marketing strategy mainly focus on the factors such as target market,
which products or services company is offering and what promotion strategies it will adopt along
with how much the items would cost. For companies it is very essential to implement strategic
marketing schemes whenever they are improving their existing product or introducing any new
services in the market (Tomczak, Reinecke and Kuss, 2017). The following report covers the
launching of Garnier cream by the Garnier company. The respective company is a mass cosmetic
brand of a French company named L'Oreal and was founded in the year 1904. The report
explains the description of the new product and a brief analysis of cosmetic market. Furthermore,
the identification of target market has been done through applying STP model. The report also
explains market mix of new product that company is introducing in the market. Lastly, the report
focus on the how different departments of the company are interrelated with each other along
with role of internal marketing.
MAIN BODY
Description about product
Garnier company is introducing Garnier cream which is for men to make their skin
smooth, hydrated and soften. The product targets male market segment as there are very few
products available for men in cosmetic industry. The cream is for all types of skin which will
assist men in getting wrinkle free skin. The cream contains all the natural and organic ingredients
which will provide natural skin care to men. The cream is enriched with organic Lavandin and
Argan Oil along with Antioxidant Vitamin E. After applying this cream, the skin of a person will
become firmer and they can see reduction in their wrinkles. This is an anti-ageing cream for men
which they have to use daily and within 2 weeks they can observe results on their face.
Critical Analysis of the Market Context
Key market trends
In today's world people have become more conscious about their overall hygiene and
physical appearance (He and Harris, 2020). This has also increased in males as they have become
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aware about their skin and overall grooming. The patterns of males grooming has changed with
time with significant emphasis on personal clothing, appearance and beauty treatments.
Therefore, the demand for cosmetics products has also enhanced in recent time in male segment.
Earlier the products related to male grooming were limited to only shaving creams, shampoos,
colognes and others. Therefore, it has been observed that demand for cosmetic products is
increased with time among men. Hence, Garnier company has decide to introduce Garnier cream
for male segment of the society.
(Source: Global men's Grooming Products Market share, 2021)
According to Persistence Market Research report, goods in the mid range that are
affordable for male consumers which presently hold the largest market share in world and are
expected to grow around 53.3% market share by the year 2031. Online retailing is estimated to
grow distribution channel at a high CAGR of 8.4% between the time period 2021 to 2031. Due
to COVID-19 the preferences of people have changed and has shifted from traditional shopping
to online purchasing. The companies have also introduced wide range of products or services in
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Illustration 1: Global men's Grooming Products Market share. 2021.
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the market. The key trends of the market has also shifted from old cosmetic products to organic
and natural products as well as alcohol free fragrances (Sales of global men’s grooming products
to double by 2031, 2021).
Who are the key competitors and how are they positioned?
The key competitors of the company include Pantene, Silk Oil, Moroccanoil and other.
All of these possess strong market presence which impacts the market share of respective
company.
Summarise the current customer attitudes/behaviours in this market
As individuals are becoming more conscious regarding their appearance it has been
observed that males are also start using cosmetic products very rapidly. Because of this
increasing demand the male cosmetic industry has been increased in recent times. In UK also the
market for male cosmetics has been increasing rapidly (Jelinek, 2018). The interest of men have
also increased for utilizing products that could help them in their personal grooming. Males
prefer to take care of their hair followed by their skin. The response of male segment regarding
cosmetics have been observed positive. They prefer to buy products or services which could
assist them in gaining attractive and representing personality. For instance, the target market of
the chosen company named Garnier is men who are working or are in the age of 55 or above.
The response of male is overwhelming as they want to buy products which could suit them and
meet their desires and needs.
Identify the main issues / opportunities
There are various issues or opportunities which the respective company could face while
introducing its new product and during the journey of establishing item in the market. The issues
or opportunities that it could face are described below:
Customer behaviours:
It is very essential to understand the behaviour of customers regarding certain product or
service as they are the key factor for company (Ngxongo, 2018). Therefore, it is very important
for respective company to examine the patterns of how target audience is making their decision
regarding their consumption. Hence, it is very important for managers to understand the buying
pattern of its target market and meet their demands. By understanding this aspect managers of
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the company could utilise this as an opportunity to represent their products as solution for their
problems. They could highlight key words during their promotional events such as personal
hygiene and appearance. They could utilise the response of business person, old age male and
others towards cosmetics as an opportunity to make them aware about the importance of
maintaining their personality.
Influence of social factors:
The behaviour of male consumers with respect to cosmetic products is mainly influenced
by various reasons. Self-image and self-esteem play a very important role in influencing the
behaviour of males towards cosmetic products. The cultural environment impacts the way people
live and behave (Goode, 2017). Therefore, it is very important for companies to evaluate what
type of lifestyle their target market is living and what are their demands so that it could meet
them. The issue which the company could face while introducing its product in the market is not
understanding values and behaviour of their target market. The opportune iti which the company
could use to expand the business offers new product is by motivating male customers to enhance
their personality by using cosmetic products.
Promotional strategy
Promotion plays a very important part in business as it helps companies in making people
aware about their products or services. It also plays essential part in raising the number of men
who use cosmetic products through making them aware about what company is offering to them.
It has been observed that meals show positive attitude or behaviour towards the product which
could be influenced by advertising (Kleymann and Seristö, 2017). The issue which company
could face while promoting their product is negative influence or misunderstanding regarding the
product and not doing advertising properly. The company could also use this advertising factor
as an opportunity to attract a greater number of customers by making them aware about the
benefits which the target market could acquire by using Garnier cream.
STP
STP is a marketing model which is used by companies to examine their offerings and the
way they communicate the benefits or advantage their products have and value to certain groups.
This model is useful as it assists companies in identifying their valuable type of customers and
then they create products and effective marketing strategies that could help them in making
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people aware about their products or services (Kaynak, 2021). With the help of this model the
companies are able to engage themselves with each group and personalise their message which
results in more selling of their product. In context to the garner company the STP of its new
product called Garnier cream has been done below in detail:
Segmentation
This factor of the marketing tool defines that the product that is offered by the company is
not for all people that is why the company needs to use market segmentation. Segmentation help
the companies in dividing their customers into group of people with common interest and
demands. This allows them to modify their approaches to meet the demands of their potential
customers and provide them a huge advantage over their competitors. In contacts to the
respective company the segmentation of target market has been done on the basis of following
approaches:
Demographic
This factor of the segmentation explains that the customers are divided on their personal
attributes such as gender, marital status, sexuality, occupation or age (Codignola, 2019). In case
of the selected company, it has segmented his market according to age and occupation and
gender. The company is targeting male segment of the society between the age of 30 to 70.
Geographic
This component of the segmentation describes that the company divides its potential
customer on the basis of country, state Commerce City, region or neighbourhood. In context to
the respective company, It is launching its new product in the market of UK.
Psychographic
This element of the segmentation explains that the company divides its customer base on the
basis of values lifestyle or personality. In case of the selected company, it is targeting male
segment who are commonly from business background or perceive luxurious lifestyle.
Target
After segmenting market, the company has to target potential customers who can buy their
products. It is important to examine the size and potential growth of each customer group
(Kannan, 2020). This phase off marketing model the company needs to examine potential of
every segment and select one or more segment from them. In context to the respective company
the target market of the company is male segment as there are very few cosmetic products for
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them. The company is targeting males because in recent times there preferences for skin and hair
grooming has been increased. The company is also targeting mails from business background
and who are above the age of 50 as it sees potential that they will buy this product.
Positioning
This is the last step of the marketing model in which companies has to identify what
position their product will acquire in order to target their valuable customer segment (Sumiarsih,
Legono and Kodoatie, 2018). At this point companies have to examine by customers will buy
their product through identifying their unique selling point and draw positioning map. In context
to the respective company for launching its new product it has to develop detail product
positioning for their target segment. The company could also position their products by creating
a marketing mists for each segment.
Marketing mix
Organisation utilize this marketing tool in order to understand what products they could
offer to their potential customers. This marketing technique assist companies in planning,
developing and making effective strategies that could help them in marketing their products or
services smoothly in the market. This systematic approach aid them in utilising their strengths
and avoiding any unnecessary costs (Sabbadin and Aiolfi, 2019). The marketing mix is essential
for organisation to implement so that they could make decision that can provide them growth and
profitability. This provides companies a sustainable competitive advantage and ensure their long-
term success in the market. In context to the Garnier company the marketing mix of its new
product named Garnier cream has been explained below:
Product:
This factor of marketing mix refers to goods or services that company offers in order to
fulfil the market gap or demands of customers. For this they have to explore the market so that
they could find potential customers (Afendi, Huang and de Waal, 2019). In context to the
respective company, it is launching Garnier Cream which is for men to help them in getting
smooth skin and free from wrinkles. The product is made from natural and organic ingredients
which make it more effective on skin. This will not harm the skin as it is made by using organic
items. The company targets male segment as there are very few cosmetics products are available
in the market for them. The packaging of the product is unique and possess a vibrant touch which
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could help the company in attracting more customer base. The service quality of the company
regarding product is also effective and it also provides customer service to its potential buyers.
Price:
This is the factor which is related to the cost which consumers have to pay when they are
purchasing products or services offered by company. Marketers of the company has to align the
price of their products or services with their perceived value. In context to the selected
organisation, it has put their pricing strategy as luxurious pricing. The company choose this
pricing strategy as manufacturing cost for product is high as it is made of organic ingredients.
The company also targets rich male market segment which would invest their money in buying
this product.
Promotion:
This is the component of marketing mix which is related to conveying information about
offered products to people by company through utilising various promotional tools. The main
purpose of this technique is to make people understand why their targeted customers need certain
products and why they should pay specific price (Schmidt, 2017). In case of the selected
organisation, for making people aware about its new product it is using various offline and online
platforms. In offline platforms the company is promoting through print media such as
newspaper, hoardings, pamphlets and others. On the other hand, the company is also
implementing online promotion through several social sites such as Facebook, Instagram,
Twitter and its websites.
Place:
This element of the marketing mix tool is related to determining of place where company
could sell its products in the market. The main aim of companies while deciding the place is to
put forward their products in front of potential customers from where they could purchase
products or services. In case of the selected organisation, it has various offline stores in the
country from where people could buy new product. The company will also offer this new
product on their online website for those who are not present in the country and could buy them
from online platforms.
Process:
This factor of marketing mix which is associated with the procedure of delivering
products or services which company offers (Yadegari, Rahmani and Modarres Khiyabani, 2020).
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The process must be effective and smooth so that customers could get desired products without
any difficulty. In case of respective company, it has very organised procedure of delivering its
new product. The company also offers free delivery on online purchasing. The company also
make sure that its employees are well trained and possess knowledge about their desired job role.
All procedure and operations of the company are well maintained, checked and updated.
Physical Evidence:
This element of the marketing mix is associated with physical validation upon which
their customers could trust and make sure that they have purchased something from company.
Physical evidence are classified into two categorised into two kinds which includes peripheral
and essential. Essential physical evidence is defined as platform without which facilities of
products cannot be delivered. Whereas peripheral physical evidence is provided by services
providers as gifts. In case of the selected company, it will provide a receipt to its customers in
order make build their trust on company. The presence of company on both offline and online
platform also make its physical evidence trustworthy.
People:
This factor of the marketing mix tool is related with group of people who are promoting
and selling products or services within a company. This includes employees, salesperson,
customers service executives and others who are included in marketing and sales process. In case
of the selected organisation, it has appointed talented individuals who have whole knowledge
about marketing field and know how to handle customer relationships (Ramadan, 2017).
Customer value creation plays very crucial role in a company as it is accountable for providing
profitability and growth to company. For consumers the value depends on the advantages of
product whereas for organisations value depends on satisfaction of buyers and number of people
purchasing their goods or services. For the selected company the value chain will depend on how
many male customers would purchase this cream and how much they value it.
Implementation
To execute this strategy of launching Garnier Cream in the market it is very essential that
different departments of the company must maintain their relationship and coordination
effectively (Sheppard and Zaheer, 2020). The relationship between various departments of the
company is explained below in detail:
Marketing department and Human Resource
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Marketing department is the division of the company which is accountable for promoting
and selling activities of a company. Whereas Human Resource department of the company is
responsible for recruiting suitable and talented individuals for desired job roles. Marketing
department is dependent on Human Resource for appointing skilful candidates who have
capabilities as well as knowledge about marketing field. The department wants to ensure that HR
division provide them adequate training related to the marketing industry along with conveying
them about vision, mission and organisational objectives of the company. As talented individuals
will assist the marketing team in accomplishing desired targets and help in increasing customer
base.
Marketing department and Finance department
Finance department is responsible for managing all financial records and providing
adequate amount to other divisions in order to run business smoothly. Marketing department
relies on finance division for budget. As for conducting any promotional event or campaigns
marketing department needs budget which is allotted by financial division. It is important
because according to provided budget the marketing team could be able to conduct their
activities. Therefore, it is very essential that both the departments have clear and effective
communication along with strong positive relationship (Tomczak, Reinecke and Kuss, 2017).
This is considered as vital factor because through communicating both divisions will get to know
demands and needs of each other. For instance, financial department will get knowledge about
how much amount the marketing team requires for promotion and organising any event.
Similarly, the marketing team will understand the budget margin and would work according to
that.
Marketing department and Production department
Production department is defined as a division of the company which is accountable for
manufacturing final products for selling. The marketing department of respective company
depends on production team because only after knowing how much products are manufactured;
they could sell them in market. Marketing team could promote products or sell them on the basis
of how much stock have been manufactured by production department. Therefore, it is very
important that they both have effective communication and strong relationship so that they both
will know activities of each other. It is also very necessary to maintain strong relationship as it
will marketing department to know how many pieces of products has been manufactured by
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production team in certain time period. This will help marketing team to inform customers about
their delivery of products so that they could avoid any delay or disappointments. This will assist
company in not getting any complaints from customers about products. Production team also
have to make sure that the produced product is of high quality and represents brand effectively.
Marketing department and Customer service department
Customer service department of the respective company is described as a division which
is responsible for handling issues or problems faced by customers regarding product. The
marketing department is aligned with customer service division in order to gain information
regarding how their products are working among customers (Afendi, Huang and de Waal, 2019).
This will assist company in enhancing its profitability and improving its services according to
feedbacks provided by customers. It is very essential for both departments to work together and
build strong relationship so that they both could maintain customer satisfaction towards product.
CONCLUSION
From the above report it has been concluded that strategic marketing is very essential for
companies to implement in order to make people aware about their products or services and
gaining sustainable competitive advantage in the market. It has been evaluated that organisations
must conduct research about which people they want to target and what strategies they should
adopt. It has also been examined that it is very vital for companies to evaluate their marketing
mix so that they could effectively ensures the success of their products or services. It is also been
concluded from the report that organisations must explore the market so that they could target
potential customers who are ready to buy their products or services. It has also been analysed
that it is very essential for different departments of a company to maintain their interpersonal
relationship and coordination in order to operate business smoothly.
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