ECON200911 Enterprise Innovation and Markets Paper Editing Services

ECON200911 Enterprise Innovation and Markets Assignments

ECON200911 Enterprise Innovation and Markets Paper Editing Services

1. Marketing analysis

The product that has been selected for writing this assignment is Palmolive hand Wash in the Australian market. There are a number of varieties of hand washes listed by the brand. Following is a marketing mix of the brand.

Product

The product that is being marketed is handwash, it is a liquid soap that is placed in the kitchen and bathroom so that the customers can hygienically (Sharma 2013). There are a number of variants available in this category for the customers to choose (Ibisworld.com.au 2018). Not only that there are several quantities of the products present in the market. The focus is on the fragrance and the performance of the product (Baker 2014).

Price

The prices of any Palmolive products are in the affordable range, it is a part of the grocery items. The minimum price of the hand wash range begins from $3.89 for a 250ml pump bottle. The brand follows a competitive pricing strategy in order to set a range of price for the hand washes. There are also refill pouches for each of the varieties which reduce the cost of the product even further (Davcik & Sharma 2015).

Promotion

The message that the company wants to send the customers is that the focus of the brand is to provide soft and supple skin (Huang & Sarigöllü 2014). Therefore all the promotional activities are constructed around this message.

The company uses both traditional as well as contemporary medium to connect with the customers. Palmolive uses social media as well as television and print advertising to advertise (Khan 2014).

Place

The product is available in both physical as well as online retail units. The product is available at almost all the supermarkets and hypermarkets. The placement of the product is based on the requirement and thus, the varieties may differ from one location to another (Sharma 2013).

Target Market

The target market strategy of the product is middle income group people who are looking for an easy-to-use solution to their hand washing problem. These people are concerned about the hygiene but also do not want to spend a lot of money on the products.

Competitor analysis

Attributes

Company 1: Dettol

Company 2: Unilever

Product

The product is usually associated with medical equipment as the brand has a number of health associated products. The products are of high quality and are associated with hygiene. There are a number of fragrances available as well (Dettol.co.uk 2018)

The product is positioned in the market as an alternative to soap. The focus of the company is on the user friendly packaging and quality of the hand wash (Unilever.com.au 2018). Like the other competitors there are a number of sizes available. The company has a number of brands under the management among which Dove; Lux etc. each of these brands have a number of fragrances (Unilever.com.au 2018).

Price

The price of the product is similar to that of Palmolive. Similar pricing strategy

The price of the products depend upon the brand, however, all the pricing is similar as the company follows competitive pricing strategy.

Promotion

Dettol uses both traditional and digital marketing strategies in order to communicate with the customers.

Unilever uses all the traditional means of promotion. Along with that there are also PR activities that are undertaken by the company. Unilever also has a significant social media presence (Unilever.com.au 2018).

Place

The products are all available in the same location as the target market of the product is same. It is available in both physical and online retail units.

Positioning

The positioning strategy that Palmolive undertakes is that the product offers the customer with soft and supple skin. The product is positioned as a nourishing treatment for the hand (Ibisworld.com.au 2018). On the other hand, Dettol positions the product as a hygienic alternative to bar soaps; it is also promoted as a product with a medicinal value (Leonidou et al. 2013). However, the Unilever positions the product as one of the necessary items that will provide more than the value of the product it will add to the personality. All the companies use various positioning strategy in order to be different from the other players in the market and to cater to the requirements of the target market (Davcik & Sharma 2015).


Figure: Perceptual Map
Source: Author’s Creation

SWOT Analysis

 

Palmolive

Dettol

Unilever

Strength

Packaging and variety

Target market and positioning

Quality of the product, brand name

Weakness

No innovation

Constricted to a medicine related product

There is hardly any scope of diversification and also the products are easily imitable.

Opportunity

Diversification focus on luxury line

To move to a larger target market in skin care

Research and development.

Threat

Intense competition in the market

2. Identification of a gap/problem

Hand wash is an FMCG product, the problem that the brand is facing with the product is the saturation of the market. There are a number of brands in the market that has established itself in the industry and has also built loyal customer based. Some of the indirect competition of the Palmolive hand wash is the luxury brands like Mr and Mrs Smith etc. the intense competition in the industry has made the brand reach a position where the supply chain management has to come up with innovative marketing strategies in order to reach out to a larger group of people (Gummesson et al. 2014). There are a number of companies in the industry that establishes as a luxury brand and provides their customers with exclusive ingredients. The pricing of these brands are also on the higher end and their target market is also different. The two competitors that have been discussed above have their own set of target market; Dettol is a brand that is used in the hospitals, nursing homes and other healthcare centers as well. This gives a company an edge over the other Palmolive as the positioning of the product is more related to skin care and makes it fit for the home-like environment. On the other hand, Unilever is a brand that is used by the loyal customers and the company focuses on the quality of the product and ensures the customers regarding the utility and the value of the product aligned with the price that is being charged (Armstrong et al. 2014).

Therefore it can be said that the gap that is being determined in the marketplace is the focus on the quality of the product. The company has the opportunity to bridge this gap with the help of promotional strategies or the management can come up with strategies regarding launching a luxury hand wash line (Sharma 2013). The company can focus on the development of a special ingredient list which shall corroborate for the quality of the product, the packaging and the look of the product should be different from the other line of Palmolive hand washes (Wensley 2016). For example, the company can position the product as an organic luxury item that has a number of exotic ingredients and can take away from the time that is spent on a manicure for the customers. The target market is niche and focuses on people who do not mind spending on a luxury item. These people are conscious about their health and well-being and thus does not mind a luxury hand wash. The competitors Dettol and Unilever do not have a luxury line of hand washes and thus this strategy can give the company an edge over the competition.

Reference list:

1.Armstrong, G., Adam, S., Denize, S. & Kotler, P., 2014. Principles of marketing. Pearson Australia.
2. Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher Education.
3. Davcik, N.S. & Sharma, P., 2015. Impact of product differentiation, marketing investments and brand equity on pricing strategies: A brand level investigation. European Journal of Marketing49(5/6), pp.760-781.
4. Gummesson, E., Kuusela, H. & Närvänen, E., 2014. Reinventing marketing strategy by recasting supplier/customer roles. Journal of Service Management25(2), pp.228-240.
5. Huang, R. & Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY.
6. Ibisworld.com.au., 2018. Colgate-Palmolive Pty Ltd - Premium Company Report Australia[online] Airbus. Available at: https://ibisworld.com.au/australian-company-research-reports/manufacturing/colgate-palmolive-pty-ltd-company.html [Accessed 25 Sep. 2018].
7. Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review paper). International journal of information, business and management6(2), p.95.
8. Leonidou, L.C., Leonidou, C.N., Fotiadis, T.A. & Zeriti, A., 2013. Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance. Tourism Management35, pp.94-110.
9.. Londhe, B.R., 2014. Marketing mix for next generation marketing. Procedia Economics and Finance11, pp.335-340.
10. Sharma, N., 2013. Marketing strategy on different stages PLC and its marketing implications on FMCG products. International Journal of Marketing, Financial Services & Management Research2(3), pp.121-136.
11. Unilever.com.au., 2018. Personal healthcare[online] Airbus. Available at: https://www.unilever.com.au/brands/?category=408114 [Accessed 5 Oct. 2018].
12. Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107). Routledge