Principles of Business Analytics Assignment 01: Self-Service Analytics

This report presents a comprehensive analysis of a business analytics assignment focused on self-service analytics within the health and wellness market in Australia. The assignment solution begins with an introduction to the global healthcare market and the growing demand for health and wellness products. It includes a critical review of a survey conducted on consumer preferences for nutraceuticals, cosmeceuticals, and nutricosmetics. The report then provides detailed recommendations, including identifying market opportunities, such as the preference for cosmeceuticals, and targeting customers based on demographics and income. It also covers product forms, spending habits, and effective marketing channels, particularly social media and email. The analysis uses data from the survey to provide actionable insights for businesses entering the Australian market, concluding with a summary of key findings and recommendations for maximizing revenue and customer satisfaction.

Principles of Business Analytics
Assignment 01: Self-Service Analytics Solution

TABLE OF CONTENTS
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PARTICULARS PAGE
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1 Introduction 02
2 Critical Review of the Survey 03
3 Recommendations 04
3.1 Market Opportunities 04
3.2 Targeted Customers 07
3.3 Form of products and spending 10
3.4 Channel for Campaigns 13
4 Conclusion 15
5 References 16

INTRODUCTION
Global healthcare has emerged as a major source of financial output in the recent years.
Global Wellness Institute in United States has divulged that global health and wellness
market is expanding at 12.8% between 2015 and 2017 and amount to 5.3% of global output
in terms of economy and is forecasted to grow at 5.7% in forthcoming years. (Global
Wellness Institute, 2019). Demand for healthcare resources in Australia has increased due to
age deterioration of population, pervasiveness of prolonged diseases and advancement of
technologies which results to surge in number of patients.
Consumers tend to lean for beauty products and cosmetics because of embodiment of
wellness beliefs into their way of living. The Health and Wellness are increasingly sought
after by people considering the benefits and transformations that operate in your own life.
(Springer, 2014) It sounds ludicrous that businesses are competing to treat consumers by
merging different health standards together like gym workouts and nutrition, yoga and
Ayurveda. Everything in this sector is intermingled as businesses capitalize on wellness,
making it impenetrable to intersect markets into solo buckets. (Fast Company, 2019).
As we know that in the bygone two decades, pharmaceutical, personal care, and nutritional
industries have come together to form new industry fragments-Nutraceuticals,
Cosmeceuticals and Nutricosmetics which are still climbing initial ladders in Australia. Thus,
apprehension regarding those segments, customers, markets and opportunities are imperative.
This survey is accordingly exploring substantial strategies (market opportunities, targeted
clients, channels for campaigns, and so on.) for a capable contributor proceeding to enter
these new industry segments in Australia.

CRITICAL REVIEW OF THE SURVEY
As mentioned in the given case study, a survey has been already carried out by the end-user.
In relation to that, data is available for appraisal. The motive of this survey is to edify
servility on areas which are growing and are of utmost importance. This will help in
advancing business and assimilating information regarding industry segments, customers and
market of beauty, health and wellness. There were several questions mentioned in the survey
which covered almost every aspect from determining consumer satisfaction to product
capabilities in the market of wellness, beauty and health. This survey has been conducted on
two types of consumers mainly, firstly those who know about such products and are
captivated and secondly who has zero knowledge in it. This survey summarized data and
after detailed analysis of the information, we can say that survey shows fruitful signs because
it reinforces on income, gender, product preferences, demographics and nature of market.
These cases are of great importance because it helps in distinguishing strategies needed to be
initiated, recognising opportunities in the market and how the customers willingness to the
product. This survey has uncovered areas like performance on existing products, promotional
propaganda, economic conditions, initial markdown and offers on products which would help
in increasing the numbers and goodwill into the Australian market.
Substantially, this survey has covered all the main objectives for the new market however
questions regarding past performance and promotional strategies were not embraced which
could have helped in planning operational strategies in of beauty, health and wellness market
of Australia.

RECOMMENDATIONS
This section explains outcomes of the analytical models designed and recommends changes
or improvements needed to the present survey described in the case.
1. MARKET OPPORTUNITIES
The main priority was to identify market opportunities in Australia. As we can see that in
figure no. 1 and 2, cosmeceutical products have been favoured the most in the Australian
market. Statistical data says that almost 41% of the responders to the survey choose
Cosmeceuticals above other products. Global Cosmeceuticals market is expected to grow at
5.95% as claimed by the Research and Markets Report. (Prime-journal.com, 2019).
Nutraceuticals which are also called as medical foods and dietary supplements have been
standing second in market distribution. Around 33% of them chose medical foods and it is
predicted by the nutritionists that customer should try this product because they are safer than
other products and conjecture of their safety is mistaken. (Pharmaceutical Journal, 2019)
Figure no.1-Market Distribution by Products

Figure no.2-Market opportunities by Age Band in terms of product type.
According to figure no.2 we can see that consumers who participated in the survey which
have their age till 40(<30 and 30-40) prefer these products the most. As a matter of fact,
around 21% of customers chose cosmeceuticals which has age less than 40. Elder people are
the least interested people in these products. Furthermore, 21.39% of the females and 19.44%
of males preferred cosmeceuticals the most which is greater in numbers than Nutraceuticals
and Nutricosmetics. As we can also see in the figure no.4 that Western Australia, Victoria
and Queensland incline more towards Cosmeceuticals. Nutricosmetics is desired the most in
Queensland and South Australia whereas Nutraceuticals is more partially liked in New South
Wales.
Figure no.3-percentage of market by product type and gender

Figure no.4-Product type by state
In general, Queensland, Victoria and New South Wales will be the perfect states to launch
these products in Australia. Gender and Age wise, it is recommended that Cosmeceuticals
will be the most profitable segment in terms of numbers and should be mainly focused on the
age bracket till the highest of 40 to gain higher prospects in this market. After analysing
carefully all the opportunities and challenges, we can say that this product will be benefited in
Australian market because maturing and aging population both epitomizes economic
prospects for Australia. (Raman Bhalla (CPA, 2019)

2. TARGETED CUSTOMERS
Target customer segment involves identifying the most appealing customers in a specific
market structure. It is like marketing targeted in specific areas, which sustains when they
require an applicability and criticality. (Castaldo, S., Grosso, M. and Premazzi, K. 2012)
Before launching a product in new market, a company should attract the best consumers in
terms of strategy and market orientations which will assist in making a market expansion
plan. Customer segmentation is much more decisive in this digital world because consumers
are much more vested than past decades and they have been making their judgements at a
faster rate. As we can see in figure no. 5 that this market is distributed between males and
female where female domination is highest which is around 53%. Further in Figure no.6 and
7 it has been divided by income group, on that basis and picturing we can say that females
who earn between 70000-90000 $ should be the targeted segment for this product to be
introduced because females are much more interested and female earning higher wages have
higher purchasing power. This can be categorized as Tier 1 Target Segment (most preferred
targeted segment).
Figure no.5-Percentage of Gender distribution

Figure no.6-Percentage of income distribution by gender
Figure no. 7-income distribution by gender

Figure no. 8-potential consumer state wise

3. FORM OF PRODUCT AND SPENDING ON PRODUCTS
According to L.E.K Consulting, consumers seeking these products spends on an average
100$ per month in US. (Figure no.9) They consume those supplies mostly in vitamins, herbal
supplements and minerals. (Lek.com, survey report)
Figure no.9- Average monthly spending
As we can see in figure no. 10 that around 35% of the consumers from the survey has cited
that the prominent way to devour these products would be in food supplies. Whereas 32.50%
of them chose convenient form as beverage. These two forms must be considered before
introducing these products in the markets.
Most number of the respondents have stated that they spend around 50-100 dollars a month
on these products which is prodigious. 228 respondents out of 360 has the same view on it.
(Figure no.11) So, it is recommended that pricing factor for the product must be essential and
should be framed within this range before making known to them in the market. Product of
this prices plays the most vital role in getting foothold in the market.

Figure no.10-Form of products by gender distribution