Issues And Priorities Of Marketing For Wunder2

Marketing Position of Wunder2

Question:

Discuss about the Identify The Marketing Issues And Challenges Being Faced By Wunder2 In Their Business Operation.

In the current marketing scenario, one of the major and most popular concepts emerged in the recent time is the entrepreneurial marketing. More startup companies are coming up in the recent time with their innovative product and business approaches in order to compete with the established players in the market. However, it is also important for the entrepreneurship ventures to have effective marketing plan and strategies (Zahra, Wright & Abdelgawad, 2014). This is due to the reason that effective marketing strategies will ensure maximum reach of the offerings to the target customers along with having positive brad value and brand exposure. For instance, Deliveroo food delivering service is one of the major startups, which is benefited from their innovative marketing approach.

Wunder2 is one of the leading entrepreneurial ventures in the recent time in the skin care and cosmetic segment. This is segment is witnessing huge growth in terms of the innovation ad entry of the entrepreneurial ventures due to the presence of huge opportunities in developing newer and improved products (www.wunder2.eu, 2018). Wunder2 is based in the United States and they have their online presence in different major countries such as the United Kingdom, Australia and New Zealand. They are having huge varieties of cosmetic products catering to different skin care needs of the customers. However, they offer mainly higher end skin care solutions for the customers from the top of the pyramid.

This report will discuss about the issues facing by Wunder2 in the recent time in terms of their marketing process and strategies and will propose a relevant conceptual plan in solving the issues in the long term. In addition, the current marketing position and marketing priorities of them will also be discussed.

According to the above positioning map, it is seen that Wunder2 is trailing behind the leading cosmetic brands in the world. It is identified that there is mainly two reasons behind this scenario. One of the reasons is the premium pricing of their products. This is limiting the target customer segment due to the fact that the more premium will be the pricing, the fewer will be the market for the products. Another reason is the less brand value of Wunder2 compared to the established cosmetic brands. This is one of the major marketing issues faced by them in the current time.

There are various marketing priorities being identified for Wunder2. These are:

• The major marketing priority for them is to enhance the brand value in the market at par to the established brand in the market. This is the most preferred due to the reason that enhancement in the brand value will ensure the increase in the customer base.
• The next in order marketing priority for Wunder2 is reaching out to more markets and customers. This is also important due to the reason that Wunder2 is relatively new compared to the established players in the market and thus, they should go for targeting more number of customers in order to increase the sales revenue. The more will be their sales revenue, the more will be their access to the financial resources for reinvestments.

In order to identify the relevant marketing problems for Wunder2, a few analytical tools will be used. Marketing mix will be used in order to identify the issues with the marketing of the products of Wunder2. This will help to identify the issues in marketing their products in the market.

The product for Wunder2 consists of different cosmetic products ranging from brows to skincare products. However, the major issues identified are having only single business line. This is due to the fact that Wunder2 is having only cosmetic products only for the females. Thus, the business line is narrow for them and it restricts them from targeting diversified customers. It also restricts them in enhancing their sales revenue in the target market due to the reason that their competitors are having more diverse range of products. Hence, it is difficult for Wunder2 to compete with the diverse product portfolio of global cosmetic brands with their single product line.

Marketing Priorities of Wunder2

In addition, majority of their competitors are having customization options for their products (Smith et al., 2013). This enables the customers to have the products designed according to their criterions. However, in the case of Wunder2, customization option in their products is not being initiated. This is also leading to the product oriented approach of Wunder2 as compared to the customer oriented approach of their competitors. This factor is restricting in targeting customers in the market.

Wunder2 caters to the higher end customers with their expensive product portfolio. Thus, they mainly initiate premium pricing in the market in order to have niche market status in the market along with having more profitability (Keller, 2017). However, the major issue that is facing by them is the limitation of the market share. This is due to the reason that in the previous positioning map it is seen that Mac is also competing in the higher end market. Thus, brand attractiveness of Mac will be more due to their enhanced brand value compared to Wunder2 (Singh, Kalafatis & Ledden, 2014). Higher end customers will more opt for Mac, which offers same products in same price level as of Wunder2. This is another marketing issue for them in their business operation.

According to the information available, Wunder2 is only having their presence in the online medium. They are based in the United States and are catering to other customers in the foreign countries through online mediums. Though, this strategy is helping them in reaching to maximum number of customers, but this also limiting them from targeting potential customers. This is due to the reason that major competitors of them are having both online and offline market presence, which helps them to target customers from both the sections (Wang et al., 2013). In addition, it should also be noted that customers more prefers to have the touch and feel facility in the case of the cosmetic products. However, having only the online presence is restricting them in restricting Wunder2 from enhancing their authenticity and reliability. This is another marketing problem for them where Wunder2 is trailing behind their competitors in terms of the product exposure to the target customers.

Wunder2 is having more intensive strategy of promotion compared to their competitors. This is mainly due to the reason that they follow niche marketing approach and intensive marketing and promotional activities helps them to maintain their exclusive brand image (Toften & Hammervoll, 2013). However, on the other hand, there are various issues being emerged from the initiation of the intensive promotional activities. One of the key issues is the limitation of the market segment. Major competitors of Wunder2 such as Mac are having niche and higher end target market but they are having more extensive promotional activities involving different marketing mediums such as social media. This is also one of the major issues for Wunder2 where they are facing the challenge of reaching out to more number of customers as at par to their competitors.

Issues Identified with the Marketing Mix of Wunder2

Internal factors of Wunder2 will be discussed in order to identify the internal positive and negative elements in their marketing operation. The negative factors will help in identifying the marketing issues for Wunder2.

Strengths of Wunder2 include innovative marketing approach. The official website of Wunder2 also acts as online marketplace for their products. They have the options for the foreign customers to buy and order the cosmetic products by paying the extra shipping cost. Another positive factor for them identified is using of exclusive ingredients in their products. This helps them to offer distinctive products to their customers along with having positive word of mouth in the market.

Wunder2 is relatively newer in the market compared to the established players. Thus, they are having less access to the financial resources as compared to their competitors. This is affecting their marketing potentiality due to the reason that their competitors are having more financial stability in initiating different marketing activities. These are making Wunder2 to trail in the market. Another weakness of them identified is the lower brand value compared to the competitors (Gyrd-Jones & Kornum, 2013). This is due to the reason that Wunder2 entered the market late and thus their major competitors are enjoying more brand image and market penetration. This is also affecting their market growth rate by restricting the customer share in the global market. In addition, it is also being identified that Wunder2 is having limited market presence in few countries while their major competitors are having market penetration in large number of countries. This is also another marketing problem for Wunder2 where they are catering to much less number of customers as compared to their competitors.

One of the major opportunities for Wunder2 is market growth of the cosmetic products in the developing economies. This will help Wunder2 in entering in the developing countries and find huge and untapped market opportunities. This will also reduce the risk associated with their business operation in the limited countries. Another major opportunity identified for Wunder2 is rise in the demand for higher end cosmetic products. Origination of the health issues from using cosmetic products is motivating more customers to opt for higher end and quality products. This will increase the market growth and demand for the products of Wunder2.

One of the major threats for them is the change in the requirement and preference pattern of the customers. This is due to the reason that in the current market scenario, customer preference pattern is changing rapidly and it is important to cope up with the change. However, due to having more product oriented approach of Wunder2, it will be difficult for them to change with the change in the market requirement. Another major threat for them is the initiation of the more marketing activities by the established players in the market. As earlier discussed, established players in the cosmetic market is already way ahead than Wunder2. Thus, initiation of more extensive marketing activities by the competing firms will reduce the potentiality of Wunder2 and given their access to the resources, it will be difficult for Wunder2 to match with the marketing activities of established firms.

From the past experiences, it can be seen that there are different kind of issues that has been faced by Wunder2 organization wherein it includes different kind of product, price, place along with promotional events issues. It has been seen that there are different kind of product related issues that include the availability of the product is limited to certain locations and it is affecting their competitive advantage as well. Furthermore, it is seen that the products sold by the company is limited to skin care products that is affecting their brand image as the company needs to implement other beauty care products in different locations in an appropriate manner.

Proper conceptual and action plan is required to be done in an effectual and appropriate manner as this will help the company in gaining competitive advantage in the entire market. The problems related to marketing have to be reduced in an appropriate manner that is helping the company to improve their efficiency and effectiveness as well. Proper and appropriate action plan will be helpful for the company in suggesting new kind of marketing ideas and solve the issues efficiently. Proper promotional events have to be conducted by the company along with offering online reviews as this will assist the respective company in competing with the other competitors in the market as well.

With the help of the conceptual plan, it can be concluded that proper action plan is required to be prepared and followed by Wunder2 in order to increase their marketing presence in different parts of the world.

• From the conceptual plan, it has been seen that the company do not have any kind of offline marketing strategies that is available to the customers and it is affecting their marketing techniques as well (Gummesson, Kuusela&Närvänen, 2016).
• Furthermore, Wunder2 has to implement different marketing techniques such as introducing offline shops along with expanding their online and offline presence to different parts of the world (Tomczak, Reinecke &Kuss, 2018). This will help them in gaining more customers in an effectual and appropriate manner (Baker &Saren, 2016).
• Wunder2 has to include different kind of promotional events such as advertisements on social media along with television as this will help them in competing with the other competitors in the same market (Baker, 2014).
• Lastly, the range of the products has to be expanded as this will help them in overcoming the challenges related to marketing (Baker, 2016).

Conclusion

Thus, it can be concluded that Wunder2 is having different market issues in the current time and these issues should be mitigated in an urgent basis. This report discussed about a relevant conceptual plan that will help Wunder2 in mitigating the identified issues. It is also expected that effective implementation of the recommended steps will help Wunder2 in having effective marketing strategies in place and within the given time frame in this report.

References

Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.

Baker, M. J. (2016). What is marketing?. In The Marketing Book (pp. 25-42). Routledge.

Baker, M. J., &Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.

Gummesson, E., Kuusela, H., &Närvänen, E. (2014). Reinventing marketing strategy by recasting supplier/customer roles. Journal of Service Management, 25(2), 228-240.

Gyrd-Jones, R. I., & Kornum, N. (2013). Managing the co-created brand: Value and cultural complementarity in online and offline multi?stakeholder ecosystems. Journal of Business Research, 66(9), 1484-1493.

Keller, K. L. (2017). Managing the growth tradeoff: Challenges and opportunities in luxury branding. In Advances in Luxury Brand Management (pp. 179-198). Palgrave Macmillan, Cham.

Singh, J., P. Kalafatis, S., & Ledden, L. (2014). Consumer perceptions of cobrands: The role of brand positioning strategies. Marketing Intelligence & Planning, 32(2), 145-159.

Smith, S., Smith, G. C., Jiao, R., & Chu, C. H. (2013). Mass customization in the product life cycle. Journal of Intelligent Manufacturing, 24(5), 877-885.

Toften, K., & Hammervoll, T. (2013). Niche marketing research: status and challenges. Marketing Intelligence & Planning, 31(3), 272-285.

Tomczak, T., Reinecke, S., &Kuss, A. (2018). Introduction. In Strategic Marketing (pp. 1-18). Springer Gabler, Wiesbaden.

Wang, Y., Wang, S., Fang, Y., & Chau, P. Y. (2013). Store survival in online marketplace: An empirical investigation. Decision Support Systems, 56, 482-493.

www.wunder2.eu. (2018). Wunder2.eu. Retrieved 13 April 2018, from https://www.wunder2.eu/products/skin

Zahra, S. A., Wright, M., & Abdelgawad, S. G. (2014). Contextualization and the advancement of entrepreneurship research. International small business journal, 32(5), 479-500.

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