Week 5 Final assignement

Running head: MAGIC TOOTHPASTE 1

Introduction

For purpose of this report we will refer to the toothpaste as Magic brand toothpaste. The report majorly focuses on consumer behavior/market target analysis of Magic toothpaste, segmentation, and aims to determine a consumer decision in the purchase of magic toothpaste. Health and beauty organization possesses a huge share of “Fit for Life" product line that focuses on a holistic approach to health and wellness. Included among its other products are; soaps, shampoos, gels, and creams manufactured from natural ingredients. However, their position remains unidentifiable, and it is projected that its core target is all round ages. Purchasing magic toothpaste involves habitual decision making, and the organization is currently using the four Ps to convince their consumers. Moreover, the process involves dealing with traits that influence consumer purchasing decisions and behavior like demographics, culture, family, personality and tastes.

Present social cultural influences like heath concerns and environmental issues may have a positive effect on consumer behavior (Ibáñez, Hartmann, & Calvo, 2006). In the future, the health and beauty organization should aim at creating a strategy such as marketing and communication in order to reach as many target groups as possible, while maintaining the values at the heart of the consumers. For the company to grow its sales and profits, they should concentrate on winning over new segments of non users. In addition, they should work on extending their network distribution, while putting more effort on health and safety driven innovation so as to retain the interest of the present consumers.

Magic toothpaste history

Health and beauty organization was founded 15 years ago. The company continues to enjoy the highest level of trust and the classical innovative range of its marketing operation with varied detergent products. As we all know toothpaste is unquestionable one of the few commodities that have become an indispensable part of modern human life. The whole of the toothpaste industry is experiencing drastic changes due to immeasurable reasons like government relations, vast increases in the cost of raw materials, environment issues and energy problems. In addition, the ever changing technology, and the urge by individuals as well as organizations to create products at a less costly rate, has also contributed to the dynamic change in the process. Many more toothpaste manufacturers are entering into the market with a mission to capture and have a commanding market share while introducing new products.

The toothpaste product by beauty and health organization faces tight competition with other multinational companies dominating the market. Moreover, they are also facing threats from dynamic companies taking new entrance. If we look into the history of toothpaste and detergents, the product was in existence nearly 2000 years ago. Mr. Elder accidently discovered toothpaste through some natural extracts. The product acted as both tooth cure and tooth whitening. Later on in 1900 AD, the first toothpaste was produced and sold by the Bristol Company in London (Holbrook, 2002). The product was also developed in other parts of America, by well-known companies. The trend then spread to various parts of Italy, England and France (Holbrook, 2002).

When we talk of beauty and Health Company, the company started with detergents which were made from natural ingredients. Due to its expansion, the President of the company saw the need to diverge into other products, that could be derived from the similar natural extracts, and that is how magic toothpaste came into existence. Magic toothpaste can is a great product to clean your teeth, but possesses numerous other benefits among them: tooth whitening, medicinal value such as prevention of periodontal tooth decay, and acts as a mouthwash, for those people who produce bad breath in their mouth even after brushing their teeth. The products comprise of various ingredients which acts as a long serving bacteria killer hence will fit well in the present company product line “fit for life”. The product comes in various flavors, due to varying degrees of tastes. Every individual has his or her own flavor tastes and this is something that the beauty and health company took into consideration in an effort to create a wider target market.

Market segmentation analysis

The use of segmentation is to create a group that is likely to act like the target customer segments for the product and service (Holbrook, 2002). The very first initiative in creating segmenting strategy is to have the most appropriate base that will segment the market. There are six main categories of consumer traits that provide the most prevalent base for market segmentation. They include geographic, demographic, social cultural determinants, lifestyle, taste, situational factors and benefits. Beauty and health organization should try to capture everyone who uses toothpaste manufactured from natural ingredients. They should focus on a brand position that falls in the premium toothpaste market, though there are some certain segments that present more pertinent than others. The company’s brand pertains a complex brand message, hence they would want to mix the ideas of quality, fun and friendliness with the aspect of social and environmental engagements

Geographic segments

Beauty and health organization products are purchased by all types of consumers, but cosmopolitan cities remain the strategic position where the majority of beauty and health consumers are located. Certainly, magic toothpaste consumers are more concentrated in clusters. Furthermore, beauty shops, health clinics and small scale shops, in cosmopolitan areas are likely locations for Magic toothpaste consumption (Kumar & Phrommathed, 2005)

Demographic segment

The prospective consumers of Magic toothpaste are baby boomers and young people aged between 20-38 years. In fact the market expansion is driven by baby boomers, and young people who understand the need for proper healthy teeth and mouth hygiene, as well as the consequences of tooth diseases. Moreover, the report shows that most families that fall in the social economic class are the future buyers of the market. These clusters on average have bought other products of beauty and health organization.

The baby boomers segments are projected to be the likely target consumers. The segment is confident and possesses the following characteristics: high income, buyers of premium goods and services, buyers of new products, first consumers, prefer different flavors, and looking for stylish and trendy products. People who belong to this segment will definitely be consumers of premiums magic tooth paste with appealing and trendy package.

Marketing mix

Beauty and health organization has been practicing its marketing mix which comprises of the Four P’s that is price, product place and promotion. However, this aspect will assist in targeting a wider consumer and thus achieving the company’s goals of greater productivity and profit maximization.

Product

Beauty and healthy organization focuses on various aspects of its products and services on the consumer market. Hence it needs to possess a wide range of products to withstand its stiff competition. The company provides features, variety of brands, designs unique packaging besides other extra features such as guarantees as well as after sales service. The cosmopolitans consumers, greatly enjoy such services, and it also assists them remove the fears that they may have over new products. All these aspects can be added in the product analysis. Beauty and health organization needs to provide various products and brands that cater for various market segments which vary as per the requirements of certain market segments and individuals as well. In addition, they should offer customized designs to their customers depending on their requirements. Despite the company offering one year warranty, it should also provide a replacement option in all their good in case of defective. Their services should also possess a certain period of time, from there they should start charging.

Price

Beauty and health organization is a multinational company. Hence it needs to develop an extensive range of supply channel which can adequately support its retail business. Due to all round consumers, the company should provide online shipping, for its various products and services. In the cosmopolitan areas, the company should develop retail sells, such as show rooms, hypermarket, brand outlets and retail stores. In addition, it should improve its distribution channel, to cover all its consumers across the globe as well as retail outlets.

Promotion

Beauty and Health Company should carry out an extensive promotion and advertising. It needs to use sales promotion, advertising campaign, publicity and sales offers to create awareness and the brand image as well as loyalty. In addition the company should endorse celebrities such as footballers, and modelers to advertise their products as this appeal most to the target market.

Needs and motivation of the target market.

Winning clients have never been an easy task. There are various aspects that can be used to pinpoint client’s needs that will have an impact on the company’s bottom line profits (Slater, Hult, & Olson, 2007). This can be in the form of the product or the services provided in the market. Slater, Hult & Olson, 2007 argue that, the knowledge of target market needs and motivation presents a solution. Being in the field, we asked open ended questions regarding the product, and how the consumer felt about the product, and we got amazing response, which may assist the company to improve on certain areas to win the consumers. One of the crucial needs was the trust about the product, lack of information and the perceived perceptions. In this case, the company has the responsibility of providing consumers with more information regarding the product since nobody likes to be taken advantage of. Most companies rush into winning clients before creating trust. Developing a deep understanding of client’s needs, problems and goals remain one of the most powerful exercises one can engage to increase output and profitability (Ibáñez, Hartmann, & Calvo, 2006).

Types of primary and secondary market research that could be used to discover the target market's motivational issues and personality traits.

Decision making plays a key role in market research. Market researchers have speculated that consumers use cognitive approaches in deciding what they want to buy. Cognitive approaches in decision making provide analytical model that defines consumer behavior. The following six points form the basis of analytical model used in consumer behavior and decision-making. They include, need recognition, internal and external information search, reflection, divestment, alternatives and make purchases. The consumer decision process to make purchase are influenced by two factors. In addition, these factors are derived from stimuli along with memories from past experience as well as external factors and individual influences. Environmental influences include factors such as social, personal influence, family, and situation. On the other hand, individual factors include resource motivation, knowledge, lifestyle, attitude and personality (Holdbrook, 2002).

The research used both qualitative and quantitative research for gathering vital information for its products and new launches. The qualitative research refers to the consumer purchasing behavior like why, how, what do they decide on the basis of the image and the product. The quantitative research deals with what are the results of the company i.e. revenue against cost and other financial analysis. Moreover, the research interviewed consumers by filling the questionnaire on both online and face to face. Personal interviews were highly valued by clients in this area, which may assist the company to know areas that need improve thus realize maximum loyalty. The idea of online customization is known to yield results (Kimar & Phrommathed, 2005).

Ethical considerations that need to be considered when conducting research.

Ethical consideration is the art of maintaining and upholding high standards of integrity in product marketing research (Kimar & Phrommathed, 2005). In carrying out the survey the researcher should protect the respondent’s anonymity in order to ensure all the information is used for the purpose of the study alone. In addition, the research should be carried out in a business and professional manner for the integrity of the company.

The rationale behind adherence to ethical values in research is to promote truth and objective of the research as well as to avoid error. In promotion of magical toothpaste, ethical norm was used and followed. Respondents were willing to give genuine information upon realization that their integrity was protected. In addition the research was conducted in compliance of the law. There were no issues of fabrication of information; all the rules and regulations were followed for the safety of the company.

Perceived consumer risks and ways to mitigate this risk

Perceived consumer risks, refers to a psychological fear a consumer experience while deciding to purchase a product (Ibáñez, Hartmann, & Calvo, 2006). There are various risks that present in a consumer while purchasing the product. The common most kind of fear is functional fear or in other words known as quality fear. This nature of fear causes uncertainty, that a certain product or service may fail to meet the promised functions or benefits. In magic tooth paste for example the benefits may fail to work as recommended. These fears seemed to dominate most consumers in metropolitan cities that were willing to buy. In overcoming these fears, the company needs to design some strategies to counter the perceived risks. These strategists include providing information that assists clients in decision making (Ibáñez, Hartmann & Calvo, 2006).

To reduce the consumer fears, is to expel the unknown. This is common especially when a new product is being launched. Another strategy to remove the fear is by providing guarantees, or after sales service. The health and beauty product should provide their clients with after free service and assurances that the toothpaste will deliver the prescribed benefits. Another mitigating factor is to use a client to encourage others to be part of the product consumers. However, this method is not efficient, as consumers are smart enough to know that actors can be paid to recommend. The company, need to employ credible marketers such as celebrity. Celebrities though expensive are able to give a credible selling message that would minimize the consumer anguish (Kumar & Phrommathed, 2005).

Conclusion and Recommendations

The process of market research does not lead to consumer decision. Moreover, it does not guarantee for the success of the marketing products. As such, when conducting a research, the researcher should employ systematic and analytical research, that aim at reducing the consumers fear in making decisions and in turn, increase the probability of success. The report majorly focused on consumer behavior/market target analysis of magic toothpaste, segmentation, and the aim to determine a consumer decision in the purchase of magic toothpaste. Market research is a crucial tool while developing and launching new product. The research should start with an insight that seeks to understand the needs and behavior of consumers. The research should make use of primary and secondary research to check consumer’s viability, behaviors and minimize the risks of the new product launches.

Consumer privacy is key in research. Most consumers are concerned with the privacy of their identity and data, especially, during face to face questionnaire. Product market study should focus on both consumer and company trustworthiness. In addition, they should also measure the perceived risks by consumers for the efficacy of purchase of the product. All these factors assist in maximizing the productivity and profits, on a company. Furthermore, these factors result in a jovial, content, and loyalty in consumers.

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Holbrook, M. B. (Ed.). (2002). Consumer value: a framework for analysis and research. Routledge.

Ibáñez, V. A., Hartmann, P., & Calvo, P. Z. (2006). Antecedents of customer loyalty in residential energy markets: Service quality, satisfaction, trust and switching costs. The Service Industries Journal, 26(6), 633-650.

Kumar, S., & Phrommathed, P. (2005). Research methodology (pp. 43-50). Springer US.

Slater, S. F., Hult, G. T. M., & Olson, E. M. (2007). On the importance of matching strategic behavior and target market selection to business strategy in high-tech markets. Journal of the Academy of Marketing Science, 35(1), 5-17.