Saturday, June 10, 2017

Marketing: Target Market Strategy

a) Product purchased – Sensodyne Pronamel Gentle Whitening, 110 ml
·        Description: protects teeth against sensitivity to cold, heat, acids, sweets and contact; whitens and hardens tooth enamel; prevents dental cavities
·        Price: $5.74 at Walmart
·        Advertising/Communications Strategies: engaging both consumers and dentists; advertisements through TV, print, ad boards/signs and online
·        Sold at: Retailers such as Walmart, health/pharmacy stores such as Shoppers Drug Mart, online such as Amazon

b) Target market characteristics:
·        All age groups, all genders, all income levels, all geographic locations
·        Customers who have delicate gums and sensitive teeth who also wants whitening and cavity protection

c) Top competitors:
          1. Colgate Sensitive Pro-Relief Whitening, 120 ml
·        Description: removes stains, shields and repairs sensitive teeth; helps restore natural whiteness of teeth; fights cavities and freshens breath
·        Price: $4.98 at Walmart

           2. Crest Pro-Health Sensitive and Enamel Shield, 140 mL
·        Description: protects against painful tooth sensitivity; binds to and strengthens enamel; protects against enamel loss; healthier gums by preventing gingivitis; protects 7 areas dentist check: cavities, gingivitis, sensitivity, plaque, tartar, whitening, freshens breath
·        Price $4.46 at Walmart

           3. ARM & HAMMER Pro Sensitive Whitening Toothpaste, 120 ml
·        Description: helps reduce painful sensitivity to cold, heat, acids, sweets or contact; removes plaque and surface stains with baking soda; prevents dental decay; freshens breath
·        Price: $2.97 at Walmart

d) Market penetration strategy to increase revenues:
·        Increase promotions – discounts and sales promotions can attract more customers and can influence them to buy more (e.g. reduced price when buying 3 items)
·        Increase retail outlets – this would make the product be exposed to more geographical areas, thereby reaching to more customers and more potential sales
·        Increase marketing communication channels – better and more aggressive advertising on TV, print, sign boards, website, social media and other channels can increase sales as a result of broader customer reach, increased customer influence and greater “spreading of the word”
·        Make price lower than the competition – lower prices means savings, an excellent way to convince a customer to purchase the product especially those with tight budgets
·        Create raffles, draws, contests, etc. – these methods engage the customers’ active participation and provide chances of winning rewards through continuous purchase and loyalty

e) Market development strategy:
        1. Identify new target market.
                My recommendation: Non-Buyers Group
·        All people who are not currently buying the product in all age groups, all income levels, and all geographic locations who have common motivations namely:
            a. protection of gums and teeth against sensitivity to cold, heat,
                acids, sweets and contact;
            b. teeth whitening;
            c. enamel hardening;
            d. prevention of dental cavities;
            e. pricing based on value of the product having proven success and
                professional recommendations

        2. Create customer demand by answering the reasons for customers to purchase the product. (Example: Sensodyne Pronamel Gentle Whitening is designed for customers who have sensitive gums/teeth who also want whiter teeth, cavity protection and fresher breath).

        3. Pricing strategy. Price is a bit higher than the competition since product has been clinically tested, has a proven success record, and recommended by most dentists.

        4. Positioning strategy. Make product's image more appealing and more convincing than the competition.

        5. Advertising strategy. More aggressive advertising than competition through TV, print, sign boards, website, social media and other proven successful channels.

         The new strategy can be successful because of the following reasons:
·        customers' needs will be satisfied by delivering what the product is intended to provide
·        customers' feedback of personal success experience in using the product
·        recommendations from dental professionals establish a high level of customer trust
·        customers paid a price that corresponds to the product's benefits and effectiveness
·        various advertising channels will provide wider customer reach and exposure

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