Marketing Project assignment

Marketing Project assignment Words: 4418

Marketers stimulate the segment through promotions and advertisements, as well as spot segments that are substantial and sufficient. These segments are potentially profitable. The company must then search for segments with colliding marketing capabilities. (Kurt, Principles… 276). Segmentation can be demographic, as In gender, age, generation, ethnic group, family lifestyle stage, household type, or expenditure patterns. Geographic segmentation is primarily based on location, where as cryptographic segmentation uses consumers’ values and lifestyles to group people together.

Product related segmentation is based on the consumers’ relationship to the product. This type of segmentation may Ochs on the benefits people expect from a product, the amount of product people buy and use, or brand loyalty. The best segmentation happens when marketers combine many segmentation categories and are flexible to changes. (Kurt, pentacles… 277-295). Proctor & Gamble have a vast variety of products allowing them to be a part of every segmented market group on al global scale.

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Geographically, P&G brands are found all over. They market their products through “mass merchandisers, grocery stores, membership club stores, drug stores, high- frequency stores, department stores, perfumeries, pharmacies, and salons in 180 entries” (Capital, 2012). The company utilizes five different segments: beauty, grooming, health care, fabric and home care, and baby and family care (Capital, 2012). The Venus razor line from Gillette is located under P&G’s grooming segment.

The grooming segment offers blades and razors, electronic hair removal devices, hair care appliances, and pre and post shave products. In the grooming segment, Toilette’s siblings include Braun, Fusion, and Mach brand names (Capital, 2012). With these brands and many products offered, the grooming segment of P&G stretches from male and female pre-teens to grown adults and covers a vast number f Income levels. B) Marketing Target Strategy A market strategy Joins all off firm’s marketing goals Into an extensive detailed procedure.

This procedure is the back bone of a marketing plan (Murk, Marketing market and a marketing mix, while also being aware of the five dimensions of the marketing environment: competitive, political-legal, economic, technological, and social-cultural (Kurt, Principles… 47-50). The definition of target market is the group of potential buyers in which a company directs its efforts, goods, and/or services to (Kurt, Principles… 2012). A firm’s target market ties into market segmentation, however, instead of the company as a whole, it allocates to Just a product or line of products.

Defining a target market helps a firm to simplify certain processes, such as pricing, promotion, and distribution of products. It is also more cost effective because the marketer is focusing all of the marketing activities in a single market or a few key markets. (Ward, 2012) The target market for the Gillette Venus razor line of products is women, most likely under 40. This is derived from Venue’s advertisements: young women flaunting around in bikinis, short dresses, or shorts. Older women usually dress more appropriately for their age.

Also women under 40 are the most likely to worry about keeping there legs and underarms smooth. (Belcher, 2011). The types of women in this target market include upper-class women, middle class women, married women, college-level, women, and high-school teenage girls (Castillo, 2007). C) Value Proposition Value propositions give customers reasons to buy a product. These statements persuade possible customers that one product is better than other similar products in some way, shape, or form (Adams, 2013).

There are three aspects, known as the here Co’s, too good value proposition: Know the company’s competencies, their customers and their competitors (Stark & Stewart, 2012). Competencies consist of the strengths of a firm and how they can add value. They lay the foundation for an effective value proposition. Understanding the firm’s customers and their needs is the next step. Thoroughly interpreting the customer’s life will help the firm meet those needs more effectively (Stark & Stewart, 2012). The third step to a good value proposition is to know the competition. This includes the competition’s strengths and weaknesses.

Once this information is found, a firm can create their value proposition that caters to the needs the competition does not meet (Stark & Stewart, Toilette’s Venus razor line could define their three Co’s to a good value 2012). Proposition as follows: Venue’s competencies are customer loyalty to the P company, leader of innovation among competitors, and the life of the razors have a longer life than other brands of razors. Venue’s customers are women under 40 years of age. A couple of Venue’s competitors are Big Sole and Chick Intuition. Another competitor of Venus, Daisy is also owned by Gillette (Kettle, 2010).

Therefore, Venus could propose to potential customers that their brand of razors last longer than the razors of their competitors. They could also use how their razors leave closer shaved smoother legs, which in turn means more time between shares. These characteristics add value to Venue’s products and appeal to new customers. D) Factors Influencing Customer Behavior Consumer behavior is the process of selection, purchase, and consumption of a good/ service in order to fulfill one’s wants (Shah, 2010). Consumer behavior can be influenced by a vast array of things. Cultural influences can include “values, beliefs, ext” (Kurt, Principles… 37). Different cultures of people have different needs and marketers should be wary of their customers’ cultures. Within cultural consumer influences are sub cultures and social classes (Shah, 2010). Social influences can also affect buying power because each social group has a different pet of norms (Kurt, Principles… 141). Social factors include reference group, role, status, and family (Shah, 2010). One of the most important consumer influences is family. Each household can be characterized as autonomic role, husband-dominant role, wife- nominate role, and synthetic role (Kurt, Principles… 012). The presence of children and teenager is also something the marketers should take into consideration. Personal factors that can influence consumer behavior are age, occupation, economic situation (such as income and savings, lifestyle, and personality. Psychological characteristics can additionally impact consumer behavior. Motivation, perception, learning, beliefs, and attitudes make up the psychological aspect of consumer behavior. (Shah, 2010) One factor that would influence consumer behavior around Gillette Venus razors is culture. In come cultures or religions, shaving may not be allowed.

As far as social class, women who live in poverty do not have razors to shave their legs. Venus advertisements are geared toward younger women. This means that it is probably pretty rare for Venus razors to be purchased by a man. Certain occupations and activities such as some competitive sports make it beneficial to shave. For example, a professional swimmer will shave in order to reduce friction with the water and gain a slight benefit. Venus razors are more expensive than most reusable razors, therefore, usually only upper and middle classes purchase them, as dated in a previous section.

A psychological belief could influence a customer’s decision to buy could be that she thinks shaving is a waste of time and money, refusing to buy razors at all. E) Buyer Decision Process There are two forms of buying decisions: high-involvement and low- involvement. For a customer to reach a concluding decision, one must go through a series of steps. The firs t is the recognition of the problem or opportunity that then leads to the search for more information. Once the problem/opportunity is researched, the consumer will then evaluate their alternatives in order to come to a hooch of product/brand or to keep searching for alternatives.

This eventually leads to a decision to purchase and an actual purchase. Once the transaction occurs, the buyer will either fell satisfied or dissatisfied. This stage can involves post purchase anxiety or cognitive dissonance due to disparity amidst one’s knowledge, beliefs, and attitudes. (Kurt, Principles… 154-8) (Riley, 2012) The decision making process for Venus razors would begin with the need recognition and problem recognition: presume a woman decides that she needs to shave her legs before going swimming.

The problem is that her legs are hairy and she wants to shave. Next, in the information search stage, the woman looks for different ways to solve her problem and seeks information about different brands of razors. After she has found information on various brands, she then evaluates the alternatives and comes to the conclusion of the Gillette Venus Embrace. Next, she purchases the razor and transitions to the post-purchase evaluation stage. She then concludes that she is satisfied and her decision was effective. Squid, 2012) Market segmentation, target market strategy, value proposition, factors influencing consumer behavior, and the buyer decision process are all important keys to making effective marketing decisions. Determining product segments and product target market can be the difference in making or breaking a firm. Proposing brand and company value is crucial in gaining and retaining customers. Consumer behavior impacts the buyer decision process and should be researched thoroughly in order for a firm to become significant. P&G is segmented into many parts.

Gillette Venus is segmented into the category of grooming and has a target market of upper and middle class women under the age of 40. Venus razors are valuable because they last longer than other razors, and provide a longer time between shaves. Numerous factors influence Venus consumer behavior, such as income. And lastly, in order for a consumer to make the decision to buy a Venus razor, she must first decide that she needs to shave. 2) Product Review a) Levels of product/service With every product there are three levels: the core product, the actual product, and the augmented product (ADSM, 2011).

The core product is “the intangible benefit provided by a product” (ADSM, 2011). This benefit makes the product valuable. The actual product consists of the tangible and physical product. With this aspect of product level, allows consumers to physically use the product. The augmented product is “the extra add on, value or service one gets [from] purchasing a product” (DIPS, 2011). This aspect is the non-physical part of the product and includes the extras that come with the product that add value (Fieriness, 2012). Given these explanations of product levels, Venue’s razor product level can be determined.

The core product of Venus razors would be having the ability to shave. This is the main benefit of not Just Venus razors, but all razors. The actual product is the razor itself. For the Venus Embrace razor, this includes five blades, a ribbon of moisture, and a soft grip, no-slip handle (Spear, 2010). The augmented product would be the ‘extras’ that add value to the product. These are the interchangeable razor blade refill cartridges, the Shorewood for convenient in-shower storage, and the relatively long-life of each razor cartridge (Spear, 2010). B) Type of Product/ Service Objectifications. Mom describes product type as the grouping of similar kinds of manufactured goods or services (Murk, Product Type, 2013). Product category and product type may be very similar; however they are two different things. To explain the difference, product category represents how the products are used, where as product type adds on to the basic description on the category to describe specific extra values the products might give. (Walker, 2009). The Venus Embrace razor is filtered through many sections: P to Gillette to Gillette Venus to Refillable Razors then to Venus Embrace.

The Venus Embrace product type is then divided into colors. These colors are green, pink, and passionate purple (Proctor & Gamble, 2013). The Venus brand dividing their products by types, allows the consumers to find what they are looking for in less time with more convenience. C) Product/Service Life Cycle According to Kurt, there are four stages in the product life cycle. In the first product before the new product has even hit the market. During this stage, a company will work out the kinks of the product to make it better for its customers. (Kurt, Principles… 360) Advertising is also a big deal when in this stage.

It is common for free sample s to be offered in order to lead consumers to purchase the product (Kurt, Contemporary Business, 392). The second stage in the product life cycle is the growth stage, which is when original purchasers re-buy the product, and new customers, encouraged by word-of-mouth reports, mass advertisements, and lowered prices, make their trial purchases. (Kurt, Principles… 362). These results in an increase in sales and additional distributions channels are sought out. When one company becomes a success, another company (the competitor) will enter the market, developing price competition. Kurt, Contemporary Business, 393). In this stage, a company will try to build brand reference and raise their market shares. Product quality and price is also maintained and new features and support services are added to the product. (Scorches, 2010) The third stage is the maturity stage. Here sales will continue to grow in the beginning, but slowly level off as new customers decrease. In this stage supply surpasses demand and further expansion becomes troublesome. Availability of the product increases as competition grows. In order to differentiate their products, each firm might intensify certain product features or services.

Companies may also provide incentives to become a consumer’s preferred product over competitors. Often, promotions are run extensively to get the upper hand on competing firms. (Scorches, 2010) (Kurt, Principles… 363) (Kurt, The last stage is the decline stage. In this stage, Contemporary Business, 393). Sales of the entire product industry decline. This is because innovations have taken place, making the product obsolete, or consumer preferences have changed all together. Competitors will slowly dwindle away and the market shrinks in size. (Kurt, Principles… 65) (Kurt, Contemporary Business, 393). The company of the product can do one of three things: “maintain the product by adding new features or ending new uses; harvest the product by reducing the cost and continuing to offer it, possibly to a loyal niche segment; or discontinue the product by liquidating remaining inventory or selling it to another firm that is willing to continue the product” (Scorches, 2010). The Venus brand is made up of seven different razors, all of which are in different stages of the product lifestyle. For example, the new Venus and Lola razor is still in the introductory stage.

The Venus Embrace has been in the grown stage for years and is still growing. The Venus Original, however, s probably entering eh maturity stage because of innovation making three bladed razors a thing of the past. Venus razors follow a cyclical pattern. Whenever Venus innovates with a new feature for a razor, they give it a different name and put it on the market. This helps them to retain customers that enjoy using their older razors, as well as gain new customers with their new razors. D) Benefits vs.. Features Analysis Within the business world, benefits and features usually get mixed together.

Because of this, most people seem to think that the words can be used interchangeably; however, that is not the case. A feature is a “factual statement bout the product or service”. In other words, actual characteristics of a product Simply put, features give customers benefits. Examples of features include size, color, design content, capabilities, etc. On the other hand, benefits would be ‘small enough to fit in your pocket and ‘designed Just for you’ (Small Business Notes, 2012) For the Venus Embrace, the Gillette Venus web page has five features listed.

The first feature is “5 curve hugging blades to get virtually every hair” (Proctor & Gamble, 2013). The benefit of this feature is a considerably close shave each product user receives when shaving with this razor. The second feature is listed as “protective ribbon of moisture for a smooth glide” (Proctor & Gamble, 2013), giving the consumer the benefit of less nicks and cuts when shaving. Third is a sleek handle with and enhanced grip. This fives the consumer the benefit that the handle will not easily slip out of their hands, even when wet. Since most purchasers shave while in the bathtub or shower, this feature makes it safer to use.

The fourth feature is the sour razor holder called the Shorewood. This feature adds the benefit of easy, convenient, in-shower storage. The last and fifth feature listed is the easy-to-change razor cartridges. Here, the benefit is convenience, time-saving, and safety while changing out the blades. (Proctor & Gamble, 2013) e) Differentiation Kurt states product differentiation occurs when people see one company’s products somehow different from its competitors’ products (Kurt, Principles,G-9). Product differentiation points out each products’ unique characteristics when compared to competing products (Allen, 2013).

If a marketer is successful when it comes to differentiation, his/her company will have an advantage over their competitors. This is because the consumer sees the advantageous company’s products as superior (Allen, 2013). Ways a company can product differentiate by having: creative packaging, new functional features, new advertising, or new sales promotions. Also, firms that ignore their competitors’ actions usually fail. (Kurt, Contemporary Business, 9) (Allen, 2013) One way Venus differentiates itself from its competitors is with their Showered.

These nifty, in-shower razor storage cases use suction cups to mount itself to the side of almost any shower, offering a handy way to store not only the Venus Embrace, but also any other Venus razor. Another way Venus is different is that every Venus razor cartridge will fit every Venus handle. So, for example, one can have an Embrace handle with a Venus and Lola razor cartridge. Other razor brands do not offer this feature. Venus also uses creative advertising that differs from other razor brands. A typical Venus commercial uses their catchy them song that says “I’m your Venus, I’m your fire… Our desire”. The song gets stuck in some consumers’ heads which is a positive way to attract new customers. (Corridor, 2012) f) Branding Kurt defines a brand as a “name, term, sign, symbol, design, or some combination that identifies the products of one firm while differentiating them from hat of the competition (Kurt, Principles… 377). The process of branding occurs when a company creates an identity for a good, service or some company in the minds of consumers. Branding along with packaging, brand loyalty, and brand equity are all parts of product identification. Kurt, Contemporary Business, 15) Venus uses a combination of attributes to define their brand. First off, the brand name Venus is catch and relates to symbol Venus the Roman goddess. They then use the phrase of their brand name. The company brought on board Jennifer Lopez in February 2011 as their brand ambassador. This publicity was huge for Venus. All three of these branding attributes makes the Venus brand more memorable when in the mind of consumers. (Nadine, 2011) Product Review Overview There are three levels for each product: core, actual, and augmented.

Product types divide product categories further. The Embrace razor is under the Refillable Razor product type of Gillette Venus. Every product on the market today is in a product life cycle stage: introductory, growth, maturity, or decline. The Venus embrace razor is still in the growth stage. Benefits and features fifer; however, benefits are derived from features. The Venus Embrace feature of five blades has a customer benefit of an irresistibly close shave. Venus differentiates itself from other razor brands by providing features and add-ones that most other razor companies do not offer.

Lastly, Venus has made a name for their products by having publicity from famous women, a memorable name, and a catchy phrase/theme song in their advertisements. 3) Competitive Review a) Competitor Analysis Competitor analysis should be part of every business strategy. It is basically a comparison of how one firm is doing compared to another. There are two lain focuses of a competitor analysis. First is to research other important competitors to gain competitor future behavior. Once a competitor analysis is finished, a firm can try to influence the predicted behavior to the firms advantage.

A competitor analysis is made up of four parts: competitor’s objectives, competitor’s assumptions, competitor’s strategy, and competitor’s capabilities. (Entomb, 2010) Venus competitors include Big, Names, Chick, and generic brands (Corridor, 2012). A competitive analysis for Chick would include information about the brand. For example, Chicks website is available to more countries, 32, than Venue’s website, 26. Proctor and Gamble). However, Chick is a brand of both women’s and men’s razors. Chick only has a couple of choices for women’s razors, where as Venus has more options.

Predictions for Chick would be for them to differentiate their men ND women brands from each other more and maybe introduce new precuts. All in all, the Venus brand still is a leg up from Chick. (Chick, 2013) b) Market Share Investigated defines market share as company’s sales over a certain period of time divided b the total sales in the entire industry in the same period (Alvin, 2010). This number helps to determine the actual size off company. In June 2010, Gillette Venus Embrace had a 10. 6% market share which was 1. 06% lower than the year before. Sales for that year were $22. 3 million.

The leading razor market share was Gillette Fusion with 1 1 . 73% and $24. 4 million in sales (Symphony Group, 2010) c) Competitive Positions and Roles Competitive positioning involves how company can provide value to a market. First, the company should determine their market profile. This includes size, competitors, and stage of growth. As explained in previous sections, Venus had the second highest market share in June 2010, meaning hat their size is quite large. Venus competitors have also been stated: Big, Chick, and Names. Venus as a whole and when one product hits the decline stage, a new product is introduced. Anderson, 2011) Next is customer segments, or groups of prospects with similar wants and needs. For Venus, their customer segments could be the high- school teenage girl, the college-level young woman, the stay at home mom, the working middle-class woman, and the upper-class woman. By using customer groups, a company can market to each group more effectively. (Anderson, 2011) A third aspect of competitive positioning is defining how a company delivers value. Benefits, derived from features, add value too company in a consumer’s mind. Being environmentally friendly is also a great way to add value.

The best way Venus adds value to its razors is that they last. One razor cartridge should last the average woman at least two to three months. Add all of the other previous benefits to that and the company has a home-run. (Anderson, 2011) The company needs to evaluate the competition, listing each competitor and ranking there the company falls into place. These rankings should be based on efficiency (price), product leadership, and customer loyalty. Venus is not an inexpensive razor; however, it is a good investment. Procter and Gambler’s 5 leadership brands have strong equities in the minds of customers and their platforms are innovation. 5 of their 50 leadership brands generate more than $1 billion in sales annually. That is product leadership. P&G’s purpose that it strives to improve the lives of the world’s consumers. (Procter and Gamble, 2012) d) Strategic Sweet Spot The strategic sweet spot is where a company meets customer’ needs in way competitors cannot (Paul, 2008). For Venus, their strategic sweet spot would be the options to customize. As mentioned earlier, each Venus razor cartridge, no matter which kind, fits each Venus razor handle. Therefore, customers can customize which handle and which blade best suits them. Procter & Gamble,2013) e) Positioning Kurt defines positioning as “placing a product at a certain point or location within a market in the minds of prospective buyers. ” (Kurt, Principles… 299) Product positioning is how the consumer perceives a product’s features, uses, quality and advantages/disadvantages in comparison to competitors (Kurt, Principles… 390). Many different approaches can be taken when positioning a product: attributes, rice/quality, competitors, application, product user, and product class (Kurt, Principles… 299).

Product positioning maps are normally used in order to help position by graphically illustrating consumers’ perceptions of competing products within an industry. For Venus, the positioning map of quality would have store brand disposables at the bottom, Venus in the middle with Chick and Names, then high- end, electric razors at the top. 4) Distribution and Logistics Review a) Current Supply Chain Members and Roles The supply chain is the “sequence of suppliers that contribute to the creation ND delivery of a product” (Kurt, Principles… 326). Each process affects both upstream and downstream relationships.

Logistics refers to coordinating the flow of goods, services, and information among members of the supply chain (Kurt, Contemporary Business, 416). Gillette Venus razors travel through different supply chains. Consumers cannot purchase directly from Venus, so therefore, there is at least one intermediary. Raw materials are purchased by P&G and the razors are wholesaler, or retailer. Depending on the retailer, they will either purchase the razors from Gillette or from a wholesaler. ) Value Delivery System “Transportation and delivery expenses represent the largest category of logistics-related costs for most firms” (Kurt, Principles… 30). Within the transportation category are three classes of carriers. Common carriers give transportation services to the general public. Contract carriers have contracts with individual customers and are exclusive to certain industries. Private carriers give transportation for internally generated freight. Modes of transportation include railroads, motor carriers, water carriers, pipelines, and air freight. C) Current Distribution Strategy To ensure that customers find the products that they want to purchase in the quantities that they need, marketers use distribution strategies.

These involve modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels. With the internet now a commonality of most parts of the world, new distributor channels are opening up (Kurt, Principles… 49). Since P&G is such a big company, they use all kinds of marketing channels to reach their customers. This includes the Venus line of razors. SOOT Analysis A SOOT analysis is an important business tool that allows users to compare internal strengths, and weaknesses, with external opportunities and threats.

Strengths could be advantages, financial resources, customer loyalty, or patents. Weaknesses could be that the product line is too narrow, management lacks depth, financing capabilities are inadequate, or there is a weak market image. Opportunities could include additions to product lines, entering new markets, or acquiring needed technology. Threats could be change in buyer tastes, or entry of new competitors. (Kurt, Principles … 45-6). Strengths of Venus are high brand equity, strong existing customer base and mass availability. Weaknesses include high product prices and expensive advertising.