Issues resulting from the Situation Analysis
Discuss about the Study Of Branded Social Content And Consumer Engagement.
Dresslier and Co. Pty Ltd is a hair care manufacturer and it has been in the market for more than 80 years. Dresslier and Co. Pty Ltd is an Adelaide based organisation and it is 100% Australian owned company (Dresslier.com, 2018). Dresslier has more than 20 full time staffs. Daily Naturals is one of the products of Dresslier and Co. Pty Ltd and it is all natural as well as paraben free high performance product. Dresslier is going to target to position Daily Naturals through some of the selective distribution and pricing strategies. Key issues of the organisation have been identified in the previous paper. In this study, key objectives, target market and the positioning strategy of the organisation are set. Key strategies of the organisation Dresslier are described with strategic options and recommendations will be made drawing the conclusions from strategic options.
Currently, hair care industry is going through rough phase of redefinition as customers increase the high demands for high level of innovation. Davroe product line of the Dresslier generated almost $130,000 in sales and the demand of the products has increased 25% (Rodrigues, Pimentel & Oliveria, 2015). Daily Naturals product is completely based on the vegetarian materials and Dresslier is going to utilize the product line of Daily Naturals in order to reach the double digit growth. Daily Naturals products can face the issue of brand awareness in the industry as Dresslier is just the newly brand. Customers always put preference on the known brands over the ‘not-so-famous brand’. Direct competitor of Daily Naturals is the Sukin and it is already an established company in the market. Poor brand awareness of the product can play the role of competitive disadvantage. In addition, Daily Naturals has not positioned itself in the market as the management has not decided yet who would be target customers of the products. Daily Naturals has the opportunity to impact on the customers and the company can consider the influence of product, price, place and promotional mix of the products. Without having the right positioning in the market; it would be difficult for the organisation to survive. Positioning statement of the product will define the target customers of the company. Moreover, product differentiation is another issue of the company as Daily Naturals is the shampoo which is similar to the other brand. Hair care market is very competitive and Daily Naturals can build the competitive advantage by the strategy of differentiation.
Marketing Objectives
Objective 1: To establish the strong brand image
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Specific |
To establish the strong brand image for Daily Naturals |
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Measurable |
Dresslier can measure this objective when a large numbers of customers will get to know about the market presence of Daily Naturals |
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Realistic |
This objective is realistic for the organisation as Dresslier is going to have strong brand awareness. Strong brand awareness will allow the products to sell more in the market and the customers will have strong brand recall |
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Achievable |
This objective can be achieved through promotional activities and advertisement. Advertisement can help the organisation to grab the strong brand image. The promotions must be done using various channels like social media, internet, events and print media |
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Time-bound |
This objective of the product can be achieved within 12 months |
Objective 2: To create the strong and loyal customer base
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Specific |
To create the strong and loyal customer base for the product Daily Naturals |
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Measurable |
This objective can be measured through increasing of sales of the products |
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Realistic |
This objective is realistic for Dresslier as an organisation can reach a large number of loyal customers through Daily Naturals. Daily Naturals can sell double-digit products to the customers. |
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Achievable |
This objective can be achieved through large promotional activities and the distribution channels of the products must be good so that the products can reach large numbers of customers. Loyal customers base can be achieved advertisements and the customers must get the products when they search for the products. The organisation can use the e-commerce sites so that the customers can get the products on time. |
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Time-bound |
This objective of the product can be achieved within 12 months |
Objective 3: To reach 3% market share by the end of 2022
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Specific |
To reach 3% market share by the end of 2022 |
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Measurable |
This objective can be measured through market share as Dresslier can take the market research activity in the year 2022. The organisation will identify the competitors in the market and they will review the position of Daily Naturals in respect of the products. |
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Realistic |
This objective is realistic for the organisation Dresslier as market share is the important metric for Dresslier to judge the effectiveness of any possible revenue generating effort. This objective can is realistic and the marketing campaign, CRM programmes and branding initiative can be done |
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Achievable |
This objective can be achieved through assimilating all marketing and operation activities. Marketing activities like an advertisement, campaign and events can help the organisation to gain market share. In addition, operating activities like managing the human resource, planning, recruitment, distribution and branding can help the organisation to gain market share. |
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Time-bound |
This objective can be achieved within 3 years |
Dresslier can segregate the market into four segments and each of the segments will help to set the target customers of the company. Daily Naturals is hair care product that is to sell the women customers mainly. As stated by Fill & Turnbull (2016), market segmentation is the process of segregating the market into potential customers into the segment, group and different characteristics. Geographic market segmentation can be done by segregating the customers into locations and regions of the customers. Therefore, Daily Naturals can segment the customers who live near Adelaide and Melbourne. The customers who live in Australia and live in near metropolitan cities can be easily segregated. Demographic segmentation can be done by segregating the customers through age, gender, occupation, socio-economic group. Demographic segmentation can be done by Daily Naturals when they will target the women customers only and the target customers will belong from the higher socio-economic condition as the price of the products is higher than the normal. Behavioural segmentation of the customers can be done through the rate of usage, benefits sought, loyalty status and readiness to purchase the products. A behavioural segment of the Dresslier will be the rate of usage of the organic products of the customers who like to purchase the hair care products from the organic brand. Lastly, psychographic segmentation can be done through the lifestyles, attitudes, personality and class of the customers. Psychographic segmentation of the customers of Daily Naturals will be attitudes of the customers who like to buy the natural products for hair care.
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Primary target customers |
The primary target of the organisation will be from the demographic segment where the target segment consists of health-conscious professional women whose aged between 25 and 50. Professional women need daily makeup as they have to go outside. The women tend to purchase the quality products for their skin as the products are used on their skin. The professional women have high income and they are able to purchase the products of Dresslier. The target customers are professional women and they will be educated persons. Daily Naturals is high-performance product and pricing point of the products is moderate. |
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Secondary target customers |
Secondary target customers of Dresslier will be mothers; notably the millennials mothers who are aged between 25 and 40. Millennials mothers are influenced by the values of the products and brand; the mothers have become more conscious of their surroundings. The mothers will have the advantage of all natural as well as chemical free products. |
Positioning strategy of Daily Naturals will be to provide a solution to modern women. Daily Naturals will be positioned in Australia as Hair Expert; Daily Naturals has identified different hair needs and offers the customers a shampoo that gives the women desired results. Daily Naturals will position itself as the high quality, natural shampoo and target to the professional women.
As opined by Cruz, Boehe & Ogasavara (2015), differentiation strategy is the approach to develop the unique product that the customers will find the better than other competitors existing in the market. Differentiation strategy is taken by the management to make the business distinguish itself from the competitors. Daily Naturals is the hair care product that has natural ingredients along with it is paraben free. In order to make this product different from other natural shampoos in the market, Dresslier can take product line strategy where Daily Naturals will be available in the market with different flavoured. Daily Naturals can make 5 different flavours for the customers and all the flavours will be from fruits genre; mango, strawberry, blueberry, peach and litchi. These flavoured shampoos will also be available in the market with different size. The products will be available in the market through the direct distribution channel to the open market and retail stores. Before launching the products in the market; the organisation will do the cutting edge research and the pilot testing. Differentiation strategy will create the brand loyalty among the customers and this will increase the perceived quality of the products.
Target Markets and Positioning
According to Ashley & Tuten (2015), market development is the growth strategy of the organisation as it will help the organisation to increase the market share of the organisations. Market development helps to reach the non-buying customers as it increases to reach the new market development. Dresslier is Australia owned company and this organisation could expand the business outside the regions of Australia. It is mainly Adelaide based business and it can reach the customers outside Australia; such as South Asian countries. Daily Naturals can expand the market to Malaysia, Singapore, New Zealand and India. They can expand the business with existing products and new distribution channels.
In order to reach large numbers of customers, Dresslier must use social media strategy. Social media strategy will be helpful to the organisation as it is completely executives. Dresslier can start its social media strategy through Facebook, Twitter and Instagram. Social media strategy can increase brand awareness of the organisation and it helps to increase inbound traffic. Social media helps to improve search engine ranking and it assists high conversion rates (McDonalds & Wilson, 2016).
Dresslier can tie-up with e-commerce so that they can sell Daily Naturals to the customers through this. E-commerce sell helps to increase the customer base as well as revenue of the organisation (Vahlne & Johnson, 2017). The key strategy to improve the brand awareness is to tie-up with the e-commerce to reach large customers.
Conclusion and Recommendations
Daily Naturals hair care products are new to the market and it has been facing the issues of low brand awareness, positioning opportunities and the product differentiation.
In order to increase the brand awareness, Dresslier can start to build the brand experience for the customers and to improve the customer engagement levels through social media and social e-commerce. In addition, making priority towards increasing the brand awareness, it helps the prospective customers to become the loyal customers. Brand awareness increases the recall power of the customers. Therefore, the management should engage the dual conversation between the past and present of the future. In order to turn the leads into the profitable sales; it is needed to increase brand awareness.
Dresslier can start the 24 hours customer support team along with a PR team that team will help the customers to get the valuable feedback from the customers. The team can start to talk the current customers and ask the customers to provide them referrals. In addition, Dresslier can listen to the customers about the sales and discounts.
Daily Naturals can provide a discount on the selling products as it will slash the price of the products. Cost leadership strategy will help the organisation to reach large numbers of the customers. Cost leadership strategy is going to establish a competitive advantage for the organisation Dresslier.
Reference List
Ashley, C., & Tuten, T. (2015). Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement. Psychology & Marketing, 32(1), 15-27. Available at: https://onlinelibrary.wiley.com/doi/full/10.1002/mar.20761
Barin Cruz, L., Boehe, D. M., & Ogasavara, M. H. (2015). CSR-based differentiation strategy of export firms from developing countries: An exploratory study of the strategy tripod. Business & Society, 54(6), 723-762. Available at: https://journals.sagepub.com/doi/abs/10.1177/0007650312473728
Cleeren, K., Dekimpe, M. G., & van Heerde, H. J. (2017). Marketing research on product-harm crises: a review, managerial implications, and an agenda for future research. Journal of the Academy of Marketing Science, 45(5), 593-615. Available at: https://link.springer.com/article/10.1007/s11747-017-0558-1
Dresslier, (2018). ‘Davroe History.’ Available at: https://www.dresslier.com/davroehistory.html
Fill, C., & Turnbull, S. L. (2016). Marketing communications: brands, experiences and participation. Sydney: Pearson. Available at: https://researchportal.port.ac.uk/portal/en/publications/marketing-communications(eaa636e3-aa3a-48c0-90a5-200f3d3f3b34)/export.html
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McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons. Available at: https://books.google.co.in/books?hl=en&lr=&id=wBfkDAAAQBAJ&oi=fnd&pg=PR6&dq=marketing+&ots=t9ylpBr5ho&sig=QwYWxEDtmNmEubi7pUOw4ZipZj4#v=onepage&q=marketing&f=false
Rodrigues, F., Pimentel, F. B., & Oliveira, M. B. P. (2015). Olive by-products: Challenge application in cosmetic industry. Industrial Crops and Products, 70, 116-124. Available at: https://www.sciencedirect.com/science/article/pii/S0926669015002022
Sultan, P., Wong, H. Y., & Sigala, M. (2018). Segmenting the Australian organic food consumer market. Asia Pacific Journal of Marketing and Logistics, 30(1), 163-181. Available at: https://www.emeraldinsight.com/doi/abs/10.1108/APJML-10-2016-0211?journalCode=apjml
Vahlne, J. E., & Johanson, J. (2017). The internationalization process of the firm—a model of knowledge development and increasing foreign market commitments. In International Business (pp. 145-154). Abingdon: Routledge. Available at: https://www.taylorfrancis.com/books/9781315199689/chapters/10.4324%2F9781315199689-9
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