Market Segmentation and Promotion Strategies for New Product Launch

The report emphasizes the importance of understanding market demand before launching a product. It outlines how businesses should analyze customer needs to provide value in line with their pricing expectations. A key aspect involves segmenting the market appropriately and positioning the brand effectively to capture consumer interest. The case study highlights that modern consumers are willing to pay premium prices but expect high-quality products in return, necessitating careful consideration of the marketing mix. For a product aimed at middle-income groups, availability across multiple retail channels is crucial. Moreover, the report suggests leveraging social media for effective promotion due to its broad reach and impact compared to traditional media like TV or newspapers. It concludes that proper market analysis and strategic planning are critical components in ensuring successful product introduction and customer retention.

PRINCIPLES OF MARKETING &
COMMUNICATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Product description......................................................................................................................1
Market analysis...........................................................................................................................2
Segmentation, positioning and targeting.....................................................................................3
Marketing mix.............................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Marketing is consider as one of the most important task performed by an organisation. It
focus on finding the needs of customers so production and services can be delivered according to
them. Proper communication with buyers is important in order to provide them customer
satisfaction. Mintel group Ltd is a market research firm, their headquarter is in London but they
also operates in others like China, Japan, Australia, India etc. Their mission is to become leading
market intelligence agency (Armstrong and et.al., 2015). They have a clear vision, they want to
deliver correct information and data to their clients in appropriate time so they can make
effective plans. This report is based on a new product will be launched by Mintel group, it will
also cover analysis that is done before unveiling that item. Various strategies relating to
targetting, positioning, segmentation will also become part of this file.
TASK
Product description
Cited company is going to launch new shampoo plus conditioner which will work on
different problems like dandruff, hair loss, etc. This product can be used by women as well as
men. This item will be available to customers in 100ml, 200ml and 500 ml bottle, buyers can
purchase shampoo according to their need. Price of 100 ml pack will be £2, 200ml will be
available in £3.7 and 500ml bottle will be of £6. In initial stage they are going to sell it online but
gradually it will available on retail stores. The main purpose of launching this product is that
people are trying to find substitute of expensive shampoo plus conditioners, they are ready to pay
more price but at the same time they want better quality so the can get the value they are paying
(Dibb, 2010).
Cited organisation is doing lot of work on designing of good so people can buy it because
of it attractiveness. They are innovating new type of bottles which are made by different kind of
material. Customers do not need to press the bottle in order to take shampoo out of it, they just
need press a button an shampoo plus conditioner will come out in right quantity. Normally user
of these type of items do not know amount correct amount that should be applied on hairs, this is
the main reason that they are adding this extra feature so they can apply shampoo in proper
quantity. This product is basically going to target youth who are looking for a quality product at
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decent price. They will be launching three variants of this item, one will work on dandruff,
second will focus on shining of hairs, and last one will stop hair loss which is problem of large
number of people. Correct method of using this item is also written on pack, it will also be
shown at the time of advertisement so customers can take maximum benefit from this good. This
product should be applied on hair on daily basis, it has to keep under a cool place, etc
(Economides and Tåg, 2012). these are some important details which is mentioned on bottle and
in big retail store salesperson will deliver this significant message to the buys of this item.
Colour and packaging of item will be different so costumers can easily identify the product they
are looking for. Ingredients used in good will be mentioned on backside of bottle, its quantity
will be written on package.
In market of shampoo, shampoo plus conditioner cover almost 30% segment. This
section is growing with a rate of 20% which is impressive in this slow growing industry. In last
two years, it has achieved a growth of 17%. According to some research, in next five year this
30% part of shampoo plus conditioner will convert into 50%. Main reason behind this change
will be increasing popularity of this type of product.
Market analysis
Before launching a product, the market in which item will be sold should be analysed
thoroughly so the success of good can be assured without any chances of failure. This will assist
in minimising the risk and hindrances that may occur in future. Mintel group need to connect
with different kind of customers based on age, gender, financial status, etc. This will help them
in understanding buyers in a better way which will assist them a the time of manufacturing and
selling of an item (Huang and Sarigöllü, 2012). Market analysis play crucial role in
understanding competitors of an organisation. It also support in evaluating trends and
opportunities which is essential before taking any decision. Below are some areas which are
considered in study of market:
Potential customer – This is the first thing which is find by most the companies before placing
their product in market. If an item do not have buyers than no one will purchase it. Their will be
no point in manufacturing of such a product. It will be considered as wastage of resources and an
organisation mat have to suffer huge loss because of that goods. Their are two conditions arises
in study of this option. In first case there are very less customers for a particular product because
price of item can not be afforded by everyone. An enterprise do not need to more sale as they can
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earn high revenue by selling limited number of product (Kotle and Armstrong, 2010). In another
situation goods need to sold in high quantity in order to maximise revenue, in this case number
of customers will be more so they can sell items at a less price. Mintel are going to target middle
and upper class people, they can afford this new shampoo plus conditioner.
Market Value – Valuation of market is necessary in order to find how much revenue can be
earned by selling a product. More the value of market more will be chances of earning extra
money. Size of shampoo industry of UK is around £180 million, out of this £85 in men's haircare
market and remaining is of female. New product will be targetting both male and female so the
market value of industry in which they are going to introduce their item will be near to £180.
Market need – Most of the companies try to understand the need of market so they can make
goods according to the demand of society (Moriarty and et.al., 2014). In their research Mintel
group fond that shampoo plus condition is a sector where buyers are not getting products
according to the their need. They were ready to pay more price but want better quality in
products. Cited organisation are making item by using organic material, buyers in market do not
want to use shampoo which is made by chemicals, they goods to be made by using natural
substance so it do not make any harm to hairs in future.
Competition – The main reason Mintel group is launching this product is that they feel other
players in this industry are not making goods according to the need of market. They know that
their shampoo plus condition has potential to get a place in top three spot in this section.
Segmentation, positioning and targeting
These three area play crucial role in success on an item (Papasolomou and Melanthiou,
2012). A product can not be made for everyone, it target particular segment of customers. This
help an organisation in advancing on right track so they can attain their set objectives. Following
is STP of shampoo plus conditioner which Mintel group is going to launch:
Segmentation – Age, gender, income are some areas which are considerd by manufacturing and
launching of an item. This product will be used by adults, their age may vary between 16 to 50.
This items can be afford by rich people as well as middle income group. Price of this item is not
too low but at the same time it is not very much. It can be use by both male and female, this is
going to become importation factor in success of this product. Their are some goods which can
not be used by whole family, but this item can be used by most of the members of household.
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Behaviour of customers is also considered in segmentation. Young generation may buy a product
by getting attracted toward a design but old age people prefer quality over designing or
packaging of bottle (Ryan, 2016). An important part of segmentation is psycho-graphic
segmentation, filed that is covered in this section is interest, opinion, lifestyle. Geographic
segments are also considered before launching of a product, Mintel group is going to sale
shampoo plus condition in particular states because their are some cites in which they think that
market is not stable and most of the people do not have average income, they may not afford this
product.
Targetting – This new item is going to target young buyers. Cited company is investing heavy
resources on packaging and designing of bottle so customers can get attracted toward it. The are
also target three types of problems one is dandruff, second is hair loss and last is shining of hairs.
These three are considered as the main problem faces by most of the people. Normally a product
aims at either women or men, but this item will be focus on both male and female. In general
cases an organisation who make similar kind of product either make shampoo or conditioner, but
Mintel is trying to provide both items in one package. Although this is not a new concept but use
of organic material is still unpopular in this industry. Cited company is trying to enter in more
than one segment by launching single item. Strategies for targetting is made by considering
habits, attitudes, etc.
Positioning – This product will be launch as the ' hair expert'. This item will be launched in way
that it solve all the problems relating to hair. Customers do face same type of problem, so
company can not sale them similar product make them believe that it will solve all the issues the
are facing relating to hair. This is the main reason that they launching three variants of an item.
One will be for dandruff, other will be shining and last one will resolve problems relating to hair
loss.
Marketing mix
Most of the experts of this industry believe that marketing mix play crucial role in
success of an organisation. This concept has capability to influence thinking of customers so they
can get attracted towards a product. It is considered as one of the main tool of marketing. Price,
place, product and promotion are known as 4 Ps which get covered under this concept (Williams
and et.al., 2012).
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Product – Top level management of Mintel group firmly believe that if their product do not
have quality than customers will not use it more than one time. The key reason of launching of
this item is that they analyse that customers are not getting right product according to the price
they are paying. Packaging of bottle may convince buyers to buy it for one time but if the feel
that shampoo do not have the quality they were expecting than they would not purchase it next
time. Various promotional method get fail when if product do not perform according to
expectation of customers. The shampoo plus conditioner they are launching is made by organic
material. Nowadays buyers are getting more aware which is the main reason that they check
ingredients used in production of an item (Wymbs, 2011). This type of product is unpopular in
market because some players in this industry use chemicals in manufacturing of this kind of
item. Mintel is also going to launch three bottles, one will be of 100ml which will target youth,
other will be of 200 ml which will be for customers of middle income and last one will be of 500
ml, buyers with high income will prefer this quantity. Product will be available in three variants,
white bottle will be for shining hair, blue will work on hair loss and black will fight against
dandruff.
Price – In recent trend Mintel group figure out that buyer are ready to pay more price but they
want better quality in product. But top level management of cited company believe that it is
important for an organisation to deliver goods according to the price customers are paying. They
should get proper value of the price they are paying. Shampoo plus conditioner will be available
in three types of bottle in terms of quantity. 100 ml will be sold at a price of £2, 200 ml will be
available at £3.7 and largest quantity i.e. 500 ml an be purchased at £6. Selling value of product
is set in a manner that it can be afforded by middle as well as high income group. These rate are
very competitive which is going to increase the competition in this segment of haircare item.
Place – Initially this commodity will be available online but with a quarter people can purchase
it from various retail stores. Cited company is also planning to make a website from which
commodity can be ordered, buyers can avail discounts and offers at the time of placing an order.
Nowadays customers prefer shopping by using their mobile, Mintel group is also planning to
launch an application on mobile, all the products they are marketing will be available on it
(ABOUT MINTEL, 2017). When a product is made for middle income group of people than it an
organisation need to make it available in almost every store.
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Promotion – Social media is going to play crucial role in success of this commodity. Mintel
group firmly believe that promotion should be done on social media because it is considered as
more effective mode compare to T.V and newspaper, advertisement. They made a video which
shown correct way of using this item, this will improve the effectiveness of product when buyers
apply it on their hairs. Promotional video will be featuring David Beckham who is considered as
youth icon. He is also popular for his hair styling which will give some extra edge to the visual
communication over advertisement of competitors. In order to convince upper age group, cited
organisation gas to do some promotion on television as they spend more time watching T.V
rather than spending time on internet. Promoting a commodity in newspapers is old method
which will not be used by cited company.
CONCLUSION
From the above report it can be concluded that before launching of a product first market
need to be analysed properly so correct commodity can be presented in front of customers.
Before production of an item, first an organisation need to find what buyers what. Nowadays
people are ready to pay more money for a product but they want better quality. An enterprise
need to provide appropriate value for the price costumers are paying so they can become
permanent user of a commodity. Segmentation, positioning and targetting play crucial role in
success of an item.
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REFERENCES
Books and Journals
Armstrong, G., and et.al., 2015. Marketing: an introduction. Pearson Education.
Dibb, S., 2010. Market Segmentation Success–Making it Happen!. Strategic Direction. 26(9).
Economides, N. and Tåg, J., 2012. Network neutrality on the Internet: A two-sided market
analysis. Information Economics and Policy. 24(2). pp.91-104.
Huang, R. and Sarigöllü, E., 2012. How brand awareness relates to market outcome, brand
equity, and the marketing mix. Journal of Business Research. 65(1). pp.92-99.
Kotler, P. and Armstrong, G., 2010. Principles of marketing. Pearson education.
Moriarty, S., and et.al., 2014. Advertising: Principles and practice. Pearson Australia.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Williams, D.L., and et.al., 2012. The use of social media: an exploratory study of usage among
digital natives. Journal of Public Affairs. 12(2). pp.127-136.
Wymbs, C., 2011. Digital marketing: The time for a new “academic major” has arrived. Journal
of Marketing Education. 33(1). pp.93-106.
Online
ABOUT MINTEL. 2017. [Online]. Available through:<http://www.mintel.com/about-mintel>.
[Accessed on 8th July 2017].
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