Wunder2 Marketing: Analyzing Problems & Conceptual Solutions

This report identifies the marketing issues and challenges faced by Wunder2, a skincare and cosmetic company, and proposes solutions using a relevant conceptual model. It assesses Wunder2's current market position, highlighting its premium pricing and lower brand value compared to established competitors like Mac and L'Oreal. The report identifies marketing priorities such as enhancing brand value and reaching more customers. Using the marketing mix (product, price, place, promotion), it pinpoints issues like a narrow product line, premium pricing limiting market share, online-only presence restricting customer touch, and intensive promotion limiting market segment. An internal environment analysis (strengths, weaknesses, opportunities, and threats) further clarifies the marketing challenges. The report concludes by suggesting a conceptual plan and action plan to address these issues and improve Wunder2's competitive position. Desklib offers a variety of resources to aid students, including solved assignments and past papers.

Running head: MARKETING
Marketing
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to identify the marketing issues and challenges being faced by Wunder2
in their business operation. In addition, this report also used a relevant conceptual model in order
to recommend a few steps to overcome the marketing problems. This will help them to have
effective marketing strategies in place and will help them to compete in the market effectively.

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Table of Contents
Introduction......................................................................................................................................3
Current market position...............................................................................................................4
Marketing priorities.....................................................................................................................5
Identification of the marketing problems........................................................................................5
Product.........................................................................................................................................6
Price.............................................................................................................................................6
Place.............................................................................................................................................7
Promotion....................................................................................................................................7
Determination of the internal environment......................................................................................8
Strengths......................................................................................................................................8
Weakness.....................................................................................................................................8
Opportunities...............................................................................................................................9
Threats.........................................................................................................................................9
Conceptual plan.............................................................................................................................10
Action Plan................................................................................................................................10
Conclusion.....................................................................................................................................16
Reference.......................................................................................................................................17

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Introduction
In the current marketing scenario, one of the major and most popular concepts emerged
in the recent time is the entrepreneurial marketing. More startup companies are coming up in the
recent time with their innovative product and business approaches in order to compete with the
established players in the market. However, it is also important for the entrepreneurship ventures
to have effective marketing plan and strategies (Zahra, Wright & Abdelgawad, 2014). This is due
to the reason that effective marketing strategies will ensure maximum reach of the offerings to
the target customers along with having positive brad value and brand exposure. For instance,
Deliveroo food delivering service is one of the major startups, which is benefited from their
innovative marketing approach.
Wunder2 is one of the leading entrepreneurial ventures in the recent time in the skin care
and cosmetic segment. This is segment is witnessing huge growth in terms of the innovation ad
entry of the entrepreneurial ventures due to the presence of huge opportunities in developing
newer and improved products (www.wunder2.eu, 2018). Wunder2 is based in the United States
and they have their online presence in different major countries such as the United Kingdom,
Australia and New Zealand. They are having huge varieties of cosmetic products catering to
different skin care needs of the customers. However, they offer mainly higher end skin care
solutions for the customers from the top of the pyramid.
This report will discuss about the issues facing by Wunder2 in the recent time in terms of
their marketing process and strategies and will propose a relevant conceptual plan in solving the
issues in the long term. In addition, the current marketing position and marketing priorities of
them will also be discussed.

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High price
Low price
Lower market
presence
Higher market
presence
Mac
Lakme
L’Oreal
Wunder2
Current market position

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According to the above positioning map, it is seen that Wunder2 is trailing behind the
leading cosmetic brands in the world. It is identified that there is mainly two reasons behind this
scenario. One of the reasons is the premium pricing of their products. This is limiting the target
customer segment due to the fact that the more premium will be the pricing, the fewer will be the
market for the products. Another reason is the less brand value of Wunder2 compared to the
established cosmetic brands. This is one of the major marketing issues faced by them in the
current time.
Marketing priorities
There are various marketing priorities being identified for Wunder2. These are:
 The major marketing priority for them is to enhance the brand value in the market at par
to the established brand in the market. This is the most preferred due to the reason that
enhancement in the brand value will ensure the increase in the customer base.
 The next in order marketing priority for Wunder2 is reaching out to more markets and
customers. This is also important due to the reason that Wunder2 is relatively new
compared to the established players in the market and thus, they should go for targeting
more number of customers in order to increase the sales revenue. The more will be their
sales revenue, the more will be their access to the financial resources for reinvestments.
Identification of the marketing problems
In order to identify the relevant marketing problems for Wunder2, a few analytical tools
will be used. Marketing mix will be used in order to identify the issues with the marketing of the
products of Wunder2. This will help to identify the issues in marketing their products in the
market.

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Product
The product for Wunder2 consists of different cosmetic products ranging from brows to
skincare products. However, the major issues identified are having only single business line. This
is due to the fact that Wunder2 is having only cosmetic products only for the females. Thus, the
business line is narrow for them and it restricts them from targeting diversified customers. It also
restricts them in enhancing their sales revenue in the target market due to the reason that their
competitors are having more diverse range of products. Hence, it is difficult for Wunder2 to
compete with the diverse product portfolio of global cosmetic brands with their single product
line.
In addition, majority of their competitors are having customization options for their
products (Smith et al., 2013). This enables the customers to have the products designed
according to their criterions. However, in the case of Wunder2, customization option in their
products is not being initiated. This is also leading to the product oriented approach of Wunder2
as compared to the customer oriented approach of their competitors. This factor is restricting in
targeting customers in the market.
Price
Wunder2 caters to the higher end customers with their expensive product portfolio. Thus,
they mainly initiate premium pricing in the market in order to have niche market status in the
market along with having more profitability (Keller, 2017). However, the major issue that is
facing by them is the limitation of the market share. This is due to the reason that in the previous
positioning map it is seen that Mac is also competing in the higher end market. Thus, brand
attractiveness of Mac will be more due to their enhanced brand value compared to Wunder2

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(Singh, Kalafatis & Ledden, 2014). Higher end customers will more opt for Mac, which offers
same products in same price level as of Wunder2. This is another marketing issue for them in
their business operation.
Place
According to the information available, Wunder2 is only having their presence in the
online medium. They are based in the United States and are catering to other customers in the
foreign countries through online mediums. Though, this strategy is helping them in reaching to
maximum number of customers, but this also limiting them from targeting potential customers.
This is due to the reason that major competitors of them are having both online and offline
market presence, which helps them to target customers from both the sections (Wang et al.,
2013). In addition, it should also be noted that customers more prefers to have the touch and feel
facility in the case of the cosmetic products. However, having only the online presence is
restricting them in restricting Wunder2 from enhancing their authenticity and reliability. This is
another marketing problem for them where Wunder2 is trailing behind their competitors in terms
of the product exposure to the target customers.
Promotion
Wunder2 is having more intensive strategy of promotion compared to their competitors.
This is mainly due to the reason that they follow niche marketing approach and intensive
marketing and promotional activities helps them to maintain their exclusive brand image (Toften
& Hammervoll, 2013). However, on the other hand, there are various issues being emerged from
the initiation of the intensive promotional activities. One of the key issues is the limitation of the
market segment. Major competitors of Wunder2 such as Mac are having niche and higher end

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target market but they are having more extensive promotional activities involving different
marketing mediums such as social media. This is also one of the major issues for Wunder2
where they are facing the challenge of reaching out to more number of customers as at par to
their competitors.
Determination of the internal environment
Internal factors of Wunder2 will be discussed in order to identify the internal positive and
negative elements in their marketing operation. The negative factors will help in identifying the
marketing issues for Wunder2.
Strengths
Strengths of Wunder2 include innovative marketing approach. The official website of
Wunder2 also acts as online marketplace for their products. They have the options for the foreign
customers to buy and order the cosmetic products by paying the extra shipping cost. Another
positive factor for them identified is using of exclusive ingredients in their products. This helps
them to offer distinctive products to their customers along with having positive word of mouth in
the market.
Weakness
Wunder2 is relatively newer in the market compared to the established players. Thus,
they are having less access to the financial resources as compared to their competitors. This is
affecting their marketing potentiality due to the reason that their competitors are having more
financial stability in initiating different marketing activities. These are making Wunder2 to trail
in the market. Another weakness of them identified is the lower brand value compared to the

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competitors (Gyrd-Jones & Kornum, 2013). This is due to the reason that Wunder2 entered the
market late and thus their major competitors are enjoying more brand image and market
penetration. This is also affecting their market growth rate by restricting the customer share in
the global market. In addition, it is also being identified that Wunder2 is having limited market
presence in few countries while their major competitors are having market penetration in large
number of countries. This is also another marketing problem for Wunder2 where they are
catering to much less number of customers as compared to their competitors.
Opportunities
One of the major opportunities for Wunder2 is market growth of the cosmetic products in
the developing economies. This will help Wunder2 in entering in the developing countries and
find huge and untapped market opportunities. This will also reduce the risk associated with their
business operation in the limited countries. Another major opportunity identified for Wunder2 is
rise in the demand for higher end cosmetic products. Origination of the health issues from using
cosmetic products is motivating more customers to opt for higher end and quality products. This
will increase the market growth and demand for the products of Wunder2.
Threats
One of the major threats for them is the change in the requirement and preference pattern
of the customers. This is due to the reason that in the current market scenario, customer
preference pattern is changing rapidly and it is important to cope up with the change. However,
due to having more product oriented approach of Wunder2, it will be difficult for them to change
with the change in the market requirement. Another major threat for them is the initiation of the
more marketing activities by the established players in the market. As earlier discussed,

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established players in the cosmetic market is already way ahead than Wunder2. Thus, initiation
of more extensive marketing activities by the competing firms will reduce the potentiality of
Wunder2 and given their access to the resources, it will be difficult for Wunder2 to match with
the marketing activities of established firms.
Conceptual plan
From the past experiences, it can be seen that there are different kind of issues that has
been faced by Wunder2 organization wherein it includes different kind of product, price, place
along with promotional events issues. It has been seen that there are different kind of product
related issues that include the availability of the product is limited to certain locations and it is
affecting their competitive advantage as well. Furthermore, it is seen that the products sold by
the company is limited to skin care products that is affecting their brand image as the company
needs to implement other beauty care products in different locations in an appropriate manner.
Proper conceptual and action plan is required to be done in an effectual and appropriate
manner as this will help the company in gaining competitive advantage in the entire market. The
problems related to marketing have to be reduced in an appropriate manner that is helping the
company to improve their efficiency and effectiveness as well. Proper and appropriate action
plan will be helpful for the company in suggesting new kind of marketing ideas and solve the
issues efficiently. Proper promotional events have to be conducted by the company along with
offering online reviews as this will assist the respective company in competing with the other
competitors in the market as well.
Action Plan
Particulars Processes to resolve issues Time frame

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Product Proper built in tactics is
helpful for the respective
company wherein they need
to develop solutions such as
including the different kind
of other skin care products
that will help them in
competing with the
competitors in the market
and this will help them in
product development
functions as well.
Wunder2 needs to
implement different reviews
on internet from their
customers as to understand
their views on their
availability of the products
and gain knowledge to
understand the same and
take steps accordingly
Two months
Price The price has to be set up by One week

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them in an effectual manner
wherein this will help them
in achieving strategic
objectives.
The company has to use the
co creation model as this
will help them in
understanding the tastes and
preferences of the
customers. This will become
one of the strengths and this
will include different offers
along with discounts that is
required to be provided to
the customers efficiently.
The respective model will
help in solving the price
issues effectually and this
will assist them in
maintaining super premium
image as well
Place The respective company
Wunder2 has to implement
Three months

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different kind of strategies
that will help them in
making their presence both
online along with offline.
Wunder2 needs to increase
their presence in offline
channels in such a manner
that will be helpful for the
company to gain
competitive advantage in
comparison to the
competitors.
Wunder2 has to understand
the reviews of the customers
regarding their offline
medium whether it will be
successful and then
implement it in an effectual
manner as well.
Furthermore, it has been
seen that the presence of
Wunder2 is limited to few
areas and it is unserviceable

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in different locations as
well. Proper strategic
implementation of
introducing the offline stores
in different locations will
help them in gaining
business
Promotion The respective company
Wunder2 needs to use the
story tactics wherein the
different channels have to be
used effectively by them to
promote the different range
of products to all the
customers efficiently.
Wunder2 has to include the
different kind of internal
vehicles wherein the
different suggestions of the
employees will be helpful in
including the employee
empowerment and with the
help of social media as this
One year Plan

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will help the customers in
choosing from online media
as well.
Wunder2 has to include the
new media techniques that
will help the customers in
choosing from online
websites as this will create
huge presence on the
internet as well.
With the help of the conceptual plan, it can be concluded that proper action plan is
required to be prepared and followed by Wunder2 in order to increase their marketing presence
in different parts of the world.
From the conceptual plan, it has been seen that the company do not have any kind of
offline marketing strategies that is available to the customers and it is affecting their
marketing techniques as well (Gummesson, Kuusela&Närvänen, 2016).
Furthermore, Wunder2 has to implement different marketing techniques such as
introducing offline shops along with expanding their online and offline presence to
different parts of the world (Tomczak, Reinecke &Kuss, 2018). This will help them in
gaining more customers in an effectual and appropriate manner (Baker &Saren, 2016).

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Wunder2 has to include different kind of promotional events such as advertisements on
social media along with television as this will help them in competing with the other
competitors in the same market (Baker, 2014).
Lastly, the range of the products has to be expanded as this will help them in overcoming
the challenges related to marketing (Baker, 2016).
Conclusion
Thus, it can be concluded that Wunder2 is having different market issues in the current
time and these issues should be mitigated in an urgent basis. This report discussed about a
relevant conceptual plan that will help Wunder2 in mitigating the identified issues. It is also
expected that effective implementation of the recommended steps will help Wunder2 in having
effective marketing strategies in place and within the given time frame in this report.

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Reference
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Baker, M. J. (2016). What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Baker, M. J., &Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Gummesson, E., Kuusela, H., &Närvänen, E. (2014). Reinventing marketing strategy by
recasting supplier/customer roles. Journal of Service Management, 25(2), 228-240.
Gyrd-Jones, R. I., & Kornum, N. (2013). Managing the co-created brand: Value and cultural
complementarity in online and offline multi‐stakeholder ecosystems. Journal of Business
Research, 66(9), 1484-1493.
Keller, K. L. (2017). Managing the growth tradeoff: Challenges and opportunities in luxury
branding. In Advances in Luxury Brand Management (pp. 179-198). Palgrave Macmillan,
Cham.
Singh, J., P. Kalafatis, S., & Ledden, L. (2014). Consumer perceptions of cobrands: The role of
brand positioning strategies. Marketing Intelligence & Planning, 32(2), 145-159.
Smith, S., Smith, G. C., Jiao, R., & Chu, C. H. (2013). Mass customization in the product life
cycle. Journal of Intelligent Manufacturing, 24(5), 877-885.
Toften, K., & Hammervoll, T. (2013). Niche marketing research: status and
challenges. Marketing Intelligence & Planning, 31(3), 272-285.
Tomczak, T., Reinecke, S., &Kuss, A. (2018). Introduction. In Strategic Marketing (pp. 1-18).
Springer Gabler, Wiesbaden.

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Wang, Y., Wang, S., Fang, Y., & Chau, P. Y. (2013). Store survival in online marketplace: An
empirical investigation. Decision Support Systems, 56, 482-493.
www.wunder2.eu. (2018). Wunder2.eu. Retrieved 13 April 2018, from
http://www.wunder2.eu/products/skin
Zahra, S. A., Wright, M., & Abdelgawad, S. G. (2014). Contextualization and the advancement
of entrepreneurship research. International small business journal, 32(5), 479-500.