BUS5103 Marketing and Communication Essay 2 Sample
Assignment Details
Overview:
As a marketing analyst, you will assess a company's implementation of Segmentation, Targeting, Differentiation, and Positioning (STDP) strategies, along with the marketing mix (4Ps) strategies for one of its products (or product lines) in a specified market. This assessment involves:
1. Conducting comprehensive research on the market, the company, and the focus product.
2. Gathering all available marketing materials, including physical brochures, websites, and advertisements.
Detailed Instructions:
1. Market Segmentation Analysis:
- Examine how the market is divided into significant segments using Geographic, demographic, behavioural and psychographic segmentation variables.
- Profile at least three meaningful market segments.
2. Target Market Evaluation:
- Analyze the company's method for selecting target segments.
- Evaluate the company's market targeting strategy.
3. Differentiation and Positioning:
- Discuss how the company differentiates its focal product to cater to the targeted segments.
- Describe the positioning of the focal product in consumers' minds.
- Create a positioning map that includes the focal product and at least three competitors. Discuss the implications of this map.
4. Marketing Mix Analysis:
- Analyze the marketing mix (Product, Price, Place and Promotion) of focal product, with the support of theories/concepts of the marketing mix (Product, Price, Place,
Promotion)
- Provide recommendations for improving this marketing mix element.
Essay Structure:
To ensure a comprehensive and well-organized analysis, follow this structure:
1. Introduction:
- Clearly state the essay's purpose.
- Briefly introduce the company and the focal product.
2. Segmentation:
- Discuss the segmentation variables used.
- Profile at least three significant market segments.
3. Targeting:
- Explain how the company selects its target segments.
- Assess the market targeting strategy.
4. Differentiation and Positioning:
- Discuss the product positioning.
- Include a positioning map with the focal product and competitors. Analyze the map's implications.
5. Marketing Mix:
- Analyze each of the marketing mix elements for the focal product.
- Offer recommendations for improvement.
6. Conclusion:
- Summarize the main findings.
7. Reference List:
- Include all sources cited in your analysis.
8. Appendices:
- Attach all relevant promotional materials.
- Include pictures of physical materials.
- Provide URLs for online materials.
Word Limit:
- The essay should be 2500 words (+/- 10%), excluding the title page and references.
- Adhering to the word limit encourages concise and focused writing.
- Exceeding or not meeting the word limit range will result in a zero mark for the formatting criterion in the marking rubric. Use relevant marketing theories and evidence from your research to justify your arguments throughout the essay. Consider additional elements that can enhance the quality of your work if they are pertinent to your main task.
Solution
Introduction
The Purpose of the Essay
The purpose of the essay is to evaluate the strategic implementation of segmentation, targeting, differentiation and positioning of ZERO CO along with its marketing mix for a specific product in a chosen market evaluating the effectiveness and alignment of the strategies with the overall marketing objective of the company.
Briefly introduce the company and the focal product
ZERO CO is an innovative Australian company which is dedicated to reducing single use plastic waste through sustainable household and personal care products. The company was founded with the aim of eliminating plastic from oceans and landfills; ZERO CO offers a wide range of Eco-Friendly products that are delivered to customers in Renewable packaging. Such an eco-friendly approach is not only adequately aligned with growing environmental consciousness but also appeals to a market that is increasingly concerned with sustainability (PB 2024).
The focal product for the analysis is the ZERO CO’s refillable laundry detergent which is a cornerstone of their product line which is designed to cater to environmentally conscious consumers. In this context, it is also to be added that this product stands out due to its effective cleaning power; plant based ingredients and also share a commitment towards reducing plastic waste. The Chosen market for this analysis is the Australian market which has significant growth in terms of demand for sustainable products. Not only that, the consumer base of these markets is continuously growing more Eco-conscious demanding products that deliver quality along with contributing positively to the conservation of the environment. The inclination of this market towards green products provides fruitful ground for evaluating the strategic marketing ZERO CO Especially how the organization segments, targets, differentiates and positions its laundry detergent to attract and retain a loyal customer base for a long period for university assignment help.
Market Segmentation Analysis
Discussion of market division into significant segments using Geographic, demographic, behavioural and psychographic segmentation variables
The refillable laundry detergent market of ZERO CO is divided into significant segments using variables like geography, Geographic, behavioural and psychographic which are discussed as follows:
Geographic segmentation
Region
The major focus is on Urban and Suburban areas across Australia with higher environmental awareness
Climate
Areas with diverse climate conditions where laundry frequency may differ are to be chosen such as coastal vs. Inland regions
Demographic segmentation
Age
Adults who are aged of 25 to 45 will be primary targets especially the adults who are typically more environmentally conscious and financially stable
Income
The households which have middle to high income and can afford sustainable products even if the pricing of the products are comparatively higher than conventional alternatives will be chosen
Family size
Larger households with comparatively more laundry usage will be chosen which will benefit the organisation in terms of Cost savings in bulk production and also having a positive environmental impact using refillable products (Dolšak et al., 2020)
Behavioural Segmentation
Usage rate
Consumers with high usage rates who do more laundry comparatively on a frequent basis will be chosen
Loyalty status
The consumers who offer loyalty to eco friendly brands will be targeted on an initial basis
Benefits sought
Customers who are seeking sustainability will be chosen along with those who require cost effectiveness over time and high quality cleaning performance
Psychographic segmentation
Lifestyle
Consumers who are eco conscious and integrated sustainability into their daily routine will be the initial choice
Values
Consumers who are mainly forecast on being eco friendly, reducing plastic waste and supporting organisations with strong environmental mission (Milne et al., 2020)
Personality
Consumers who are earlier adopters and innovators and also who are open to adopting new changes, sustainable products and practices will be considered for target marketing
Profiling meaningful market segments
Eco-conscious Urban Professionals:
This consumer segment is geographically located predominantly in major urban centres such as Sydney and Melbourne with an age range between 25 to 40 single or young couples with middle to high income. This segmentation has a high usage rate, is loyal to eco friendly brands and also seeks quality and sustainability. Not only those in terms of their psychographic aspects they are eco conscious with high value towards sustainability, have integrated green practices into daily life and are willing to pay a premium price for eco friendly products (Dolšak, et al., 2020)
Environmentally-aware Families:
This segmentation is geographically located in Suburban areas across Australia with an age range of 30 to 45 years and is parents with children with middle to high income. Their behaviour aspects include frequent use of laundry due to large family size, seeking for cost effective and sustainable solutions. This profile mainly values effective alignment with creating a better future for their children, accepting products that reduce environmental impact and are likely to be loyal once a trusted relationship is established (Milne et al., 2020)
Green-minded Retirees:
They are geographically located in urban and rural areas with the age group of above 60 and are empty nesters with fluctuating income level. They have moderate to high usage rates which are many driven by long term saving and environmental benefits. Not only that, they have strong environmental values and often look to leave a positive legacy with a significant amount of time to research and choose products carefully and influence the community on Sustainable living.
Target Market Evaluation
Analyse the company's method for selecting target segments
ZERO CO implements a systematic approach for selecting target segments with the focus on alignment with their sustainability mission and market potential. The method of ZERO CO can be segregated in major steps which are discussed as follows:
Market research:
ZERO CO generally conducts extensive market research in order to acquire adequate understanding on the preferences, behaviours and demographics of potential customers. This process includes surveys, focus groups and detailed analysis of market trends especially in the eco friendly and sustainable product sector (Alibis, 2020).
Segmentation analysis:
Using Geographic, demographic, behavioural and psychographic variables ZERO CO effectively identifies and evaluates distinct segments within the market. Hence this analysis helps to adequately identify different groups that are not only interested in sustainable products but also are capable of influencing substantial sales growth
Evaluation of Segment Attractiveness:
The organisation adequately evaluates the attractiveness of each segment based on factors like size, growth potential, competitive landscape and alignment with the values of the organisation. in this context it is also to be added that segments that showcase high potential for growth and profitability while maintaining strong alignment with the mission of the organisation are mainly focused on (Haris, and Novitasari, 2023).
Strategic Fit:
ZERO CO ensures that the chosen segments are suitable for its core competencies and resources. This is mainly because the organisation looks for different segments where it can utilise its strains like innovative product design and strong environmental branding to acquire a comparative advantage in the market
Target Segment Selection:
In the final stage the organisation selects a range of target segments that offer the best possible opportunities for achieving its business objectives. not only that the focus is on segments where the organisation can deliver unique value and establish strong customer loyalty
Evaluate the Company's Market Targeting Strategy
The market targeting strategy of the organisation is highly focused, differentiated and valued. Hence by targeting eco conscious urban professionals, along with environmentally aware families and green minded retirees the organisation capitalises on segments that are effectively aligned with their sustainability goals and also have significant market potential. Its market targeting strategy is discussed as follows:
Focused Targeting:
The organisation mainly focuses on choosing specific segments instead of adopting a mass marketing approach which allows them to tailor marketing messages and product offerings that adequately resonate deeply with each group. For example, the marketing campaigns of the organisation mainly focus on the environmental impact of using refillable products which strongly appeals to their target segment. not only that organisation also uses social media platforms se like Instagram and LinkedIn to reach tech-savvy customer segments showcasing stories of how the products of the organisation help in reducing plastic waste in urban environment (De Villiers et al., 2020)
Differentiation:
The targeting strategy of the organisation mainly focuses on differentiation through sustainability and innovation. their product delivered eco friendly packaging which distinguishes them from conventional brands. This clear value proposition is essential for attracting and retaining their target customers. For example, the organisation collaborates with parenting blogs and family focused influencers to demonstrate the convenience and safety of their products for households with children focusing on long term cost saving and environmental benefits (Cece, 2023).
Differentiation and Positioning
Discuss how the company differentiates its focal product to cater to the targeted segments
ZERO CO organisations mainly differentiate their focal product like refillable laundry detergent through emphasising sustainability in appealing towards the environment conscious Australians who are mainly aged 25 to 45. The unique selling positioning of their offered product is completely included with the eco-friendly packaging, high performance, plant-based ingredients, and a subscription model for refills. ZERO CO have to highlight their commitment towards the reduction of plastic waste as well as carbon footprints resonating with the values of targeted segments along with engaging with the customers by educational content about sustainability and transparent practices that can further reinforcing their appeal towards their environmentally aware demographic.
Describe the positioning of the focal product in consumers' minds
The refillable laundry detergent of Zero Co is completely positioned in their customers’ minds as an eco-friendly and sustainable alternative compared with the traditional detergent. Following their targeted customer, the organisation, Zero Co highlights their commitment towards the minimization of plastic waste along with promoting sustainability. This is the product which stands out through offering convenience by their refillable model considering its alignment with the values of customers who mainly prioritise the responsibility towards ecology. The brand also leverages growing demand of Australia for sustainable products presenting itself as one of the leaders in the green market.
Create a positioning map that includes the focal product and at least three competitors
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Figure 1: Positioning Map of ZERO CO with Three Competitors
(Source: self-created)
Following the above figure of positioning map, it has been evaluated that, there are 3 significant competitors of ZERO CO are Eco Store, Earth Choice, and Omo considering the following position -
1. Zero Co - High sustainability along with mid-range price.
2. Eco Store - High sustainability and higher price.
3. Earth Choice - Moderate sustainability along with lower price.
4. Omo - Low sustainability and mid-range price.
Implications of the Map
• Zero Co - This organisation occupies a unique position considering a high sustainability approach focusing at mid-range price that can balance their commitment towards environment with affordability. It helps them appeal towards price sensitive customers who still prioritise the sustainability approach.
• Eco Store (Eco Store, 2022) - Considering as a prominent completed for ZERO CO, this organisation targets the premium end of the market with the help of offering high sustainability but in a higher price limit which caters the customers who are willing to pay more for the cases of eco-friendly products that potential limiting their market share across the higher-income segments.
• Earth Choice (Earth Choice, 2024) - However, this organisation offers a more budget friendly option but limited in the moderate sustainability appeal towards the cost conscious customers who may not prioritise high environmental standards compared with the others.
• Omo (Unilever, 2024) - In addition to this, Omo sits at the lower end of sustainability considering a range price the mainstream customers who are less concerned about the eco-friendliness.
Marketing Mix Analysis
Analysing the marketing mix of focal product
Product
The core product of the company is refillable laundry detergent which is designed to meet Ice and rates of environmental sustainability and cleaning efficacy. With effective use of the product life cycle theory, this product is in its growth stage which is characterised by increasing market acceptance and expanding customer base. In this context, it is also to be added that this augmented product includes reusable, eco-friendly packaging and the commitment of the organisation towards sustainability with effective alignment with the concept of value-added services that improve the core product (Klint et al., 2022)
Price
The organisation adopts a value based pricing strategy which reflects the premium nature of its eco-friendly products. In accordance with the Price Quality Matrix the pricing of the products are aligned with the perceived high quality and environmental benefits that justify a higher price point. This approach targets consumers who are willing to pay more sustainable products with a focus on long term cost savings and environmental impact over initial price sensitivity
Place
The organisation implements a direct to consumer distribution model initially through its E-Commerce platform which ensures greater control over customer experience and also establishes a direct relationship with consumers effectively aligned with the concept of place in the marketing mix that focuses on making products available at the right place and time. In addition to that partnerships with eco friendly retail outlets expand their reach in the market
Promotion
The promotional strategy of the organisation depends heavily on digital marketing which includes social media campaigns, influencer partnerships and contact marketing that effectively highlights their sustainability mission. In this context it is also to be added that The AIDA model (Attention, Interest, Desire, Action) is adequately utilised by the organisation with campaigns that are designed to capture attention, generate interest in the environmental benefits, build Desire through emotional appeals and also from action by focusing on Ease of purchase and different subscription options (Cruz-Milán, 2022)
Provide Recommendations for Improving This Marketing Mix Element
Product
It is essential to introduce different laundry detergents like hypoallergenic or scented options in order to cater to different consumer preferences and requirements with effective alignment with the theory of product differentiation.
Improved packaging is also essential and therefore use of more informative and visually appealing packaging can be done which highlights key benefits and uses instructions in a clear manner (Klint et al., 2022)
Price
It will be beneficial to introduce a tiered Pricing model with different package sizes and subscription options in order to cater to multiple budget levels and consumption rates adhering to the principal of price segmentation
Offering discounts for bulk purchases or long-term subscriptions can also encourage customer loyalty and bulk purchases which can reduce per unit costs for the consumers
Place
Partnering with more eco friendly retail chains in the market and also online marketplaces can also increase product availability and visibility which will ensure wider reach and convenience for customers
Establishing local pop-up stores in major urban areas to increase brand visibility and provide and hands on consumer experience can increase customer turnover and retention rates
Promotion
Developing a comprehensive contact marketing strategy can be used by using educational blogs, videos and webinars on sustainability and the benefits of refillable products which can reinforce the authority of the organisation in the eco-friendly space (Cruz-Milán, 2022).
Conclusion
Refillable laundry detergent of ZERO CO targets the eco-conscious customers aged 25 to 45 years in the suburban and urban areas in Australia. From the context of key segments, this organisation is focused on the segments like eco-conscious urban professionals, green-minded retirees, and environmentally aware families. The positioning map also highlights the Zero Co offering high sustainability at a mid-range price to compete against budget-friendly Earth Choice, premium-priced Eco Store, and less eco-focused Omo.
References
Alibis, J.N., 2020. Lifestyle and consumers’ choice of laundry services in Manado City: An empirical study. International Journal of Applied Business and International Management (IJABIM), 5(3), pp.23-29.
Cece, S.E., 2023. THE INFLUENCE OF MARKETING STRATEGIES ON INCREASING YADEL LAUNDRY SERVICE PRODUCTS. Jurnal Ekonomi, 12(04), pp.758-762.
Cruz-Milán, O., 2022. Hotels' marketing mix responses at insecurity-stricken destinations: a study in the US–Mexico border. International Hospitality Review, 36(1), pp.131-155.
De Villiers, R., Tipgomut, P. and Franklin, A., 2020. International market segmentation across consumption and communication categories: Identity, demographics, and consumer decisions and online habits. IntechOpen.
Dolšak, J., Hrovatin, N. and Zori?, J., 2020. Analysing consumer preferences, characteristics, and behaviour to identify energy-efficient consumers. Sustainability, 12(23), p.9870.
Earth Choice (2024). Sustainable Home Cleaning & Laundry Products Earth Choice. Available at: https://earthchoice.com.au/ (Accessed: 07 August 2024).
Eco Store (2022). Our story ecostore AU. Available at: https://ecostore.com/au/our-story/#:~:text=Malcolm%20and%20Melanie%20Rands%20founded,the%20land%20they%20called%20home. (Accessed: 07 August 2024).
Haris, A. and Novitasari, S., 2023. Implementation Of Marketing Mix Strategies In Laundry Businesses During Social Distancing Policies; Case Study At Sangun Laundry, Serpong, South Tangerang, Indonesia. Valley International Journal Digital Library, pp.5710-5726.
Klint, E., Johansson, L.O. and Peters, G., 2022. No stain, no pain–A multidisciplinary review of factors underlying domestic laundering. Energy Research & Social Science, 84, p.102442.
Milne, G.R., Villarroel Ordenes, F. and Kaplan, B., 2020. Mindful consumption: Three consumer segment views. Australasian Marketing Journal, 28(1), pp.3-10.
PB (2024). Zero Co Company Profile: Valuation & Investors | PitchBook. [online] pitchbook.com. Available at: https://pitchbook.com/profiles/company/327542-05#overview.
Unilever (2024). Omo Unilever. Available at: https://www.unilever.com.au/brands/home-care/omo/#:~:text=OMO%20is%20a%20global%20laundry,and%20innovation%20for%20your%20laundry. (Accessed: 07 August 2024).
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