Target Market
Discuss about the Marketing Strategy for New Product Launch.
All business organisations want to expand their customer base and market size in order to increase revenue (Armstrong, 2012). One way in which organisations do so is through launch of new products (Czinkota, 2014). Product launch is a process which is undertaken only after research and market survey about the receptivity of a product (Rosanna, 2014). Product launch is accompanied by marketing activities which are undertaken as per marketing strategy. This is done so that the product is received well by the customer (Ferrel, 2012). Leviathan is an Australian fashion and clothing brand headquartered at Perth (Levianthan, 2018). It specialises in men and women clothing. The following assignment tries to formulate marketing strategies for the launch of a new hypothetical product; Leviathan fashion accessories for women.
Marketing strategies are systematically planned marketing actions taken by a company with regard to a product in order to achieve a stipulated marketing goal such as attaining more market share or generating more sales revenue (Jaworski, 2018). Leviathan intends to find customers and market for its new product Leviathan Fashion Accessories. Following are the strategies that it needs to undertake for the purpose.
Target market consists of the end customer to whom the company intends to sell the product (Kotler, 2012). Target market for Leviathan fashion accessories would be women who are fashion conscious and intend to make a mark through their personal appeal.
Positioning is the image which the customer perceives regarding the company or the product (Sood, 2017). There are various positioning strategies that can be used by the firm. In a cost positioning strategy, the company is perceived as providing the products at lower price hence giving cost advantage to the customer (Armstrong, 2012). On the other hand, in quality positioning strategy, company creates an image of providing better quality produces (Baines, 2013). Leviathan can position its women fashion accessory products having high quality for fashion conscious women. This can be done through use of appropriate promotional strategies like use of advertising and public relations.
Segmentation is a marketing strategy through which a company divides the target customers into groups based on certain similarities as perceived by the company (Baker, 2012). There are various types of segmentation strategies that can be utilised by Leviathan to properly target its target market for the new product.
Demographic segmentation- Under this segmentation a company divides its target market based on age, gender, family size or income (Boone, 2011). Leviathan can use demographic segmentation to target professional women of middle and high income group. It can design a range of fashion accessories suitable for working women as well as party going high society women.
Positioning
Life style or psychographic segmentation- Under this segmentation customers are grouped based on their personality and lifestyle (Baines, 2013). Leviathan can target women who are highly fashion conscious and move in high society party circle. It can also target professional women who consider fashion accessories as a necessary part of their image and personality.
Therefore, through these two segmentation strategies Leviathan can easily target its customers. It can also create a market by invoking a sense of fashion consciousness among women customers.
Marketing mix strategies are a set of tools used by a company to realise its marketing goals (Kotler, 2012). Marketing mix strategies contain four set of specific dictions which the firm takes regarding the product (Baker, 2012). These are product, place, price and promotions. These four decisions are very important for the launch of any new product (Rosanna, 2014). Hence, Leviathan needs to take these decisions with caution and care in order to launch its fashion accessories.
Following is an assessment of marketing mix strategies for Leviathan Fashion Accessories for Women.
Product- Product is the basic offering of the company which it gives to the customer (Baker M. J., 2014). Product is considered to be the most important decision taken by the firm. Product offers the core value which satisfies a certain need of the customer (Armstrong, 2012). Product should only be launched after need assessment of the customer.
Leviathan fashion accessories have been designed for launch after market survey. Such surveys reveal the need for quality fashion accessories like hand bags and fashionable imitation jewellery for professional and high society women. Therefore, the product launched by Leviathan constitutes of women fashion accessories like handbags, fashion earrings, bracelets and necklaces. The most important feature of the product is its high quality and durability along with fashionable look.
Place- place or distribution medium is the channel through which a company distributes its products (Armstrong, 2012). Place should be accessible by the target market (Baines, 2013). The design and choice of place is based on the type of target market and the stores that they are most likely to visit (Baines, 2013). There are various distribution strategies which can be used by Leviathan. These are:
Intensive distribution- through this method a firm sells through many retail outlets. The firm tries to penetrate the mass market through this channel. This strategy is suitable for fast moving consumer items (Jaworski, 2018). As leviathan fashion accessories are high quality and are for women of specific categories like fashion conscious high society or professional women, this strategy will not suit Leviathan.
Segmentation
Exclusive distribution- Under this method a firm uses a few distribution channels to sell its products (Baker M. , 2012). Products are sold through exclusive outlets to specific type of customers. Leviathan can use exclusive distribution and can sell thorough its own outlets. As the product is of high quality and for middle to high income group, its brand equity will be maintained if it is sold through selected stores.
In addition to own stores the firm can also use online distribution channels through ecommerce platforms (Charlesworth, 2011). Leviathan can sell its fashion accessories through its own websites or it can also use online retail stores like Amazon and eBay.
Price- Price is the amount that the customer is ready to pay for the product (Armstrong, 2012). The price should be perceived by the customer as genuine. Finding the right balance for price is very important (Baines, 2013). Sometimes if a product is prices too low it gets perceived as cheap and if it is priced high then it becomes unaffordable. Pricing can help create the right perception of the product in the customer’s mind (Armstrong, 2012). Price can make a product to be perceived as a mass product or a class product. A firm should base pricing strategy on the customer’s perceived value of the product and its manufacturing cost (Armstrong, 2012). There are various pricing strategies that can be used by Leviathan.
One of the most widely used pricing for products in the introductory stage is penetrative pricing (Baines, 2013). Under this pricing strategy the price of the product is kept low during the introduction stage so that the product reaches a mass audience (Armstrong, 2012). On the other hand skimming pricing is a strategy where price is kept high initially so that high income group adapts first to the product. Then the price is lowered so that other people, who aspire to have high end products, also start buying it (Armstrong, 2012). Neutral pricing is a strategy where the price is kept at par with market levels that is price is similar to competitors price (Armstrong, 2012). This is a balanced method through which the firms avoid risk.
As Leviathan is launching the product for high end customers it should adopt neutral pricing strategy where it keeps the price at par with similar fashion accessary brands. Pricing should be slightly on the higher side so that it gets perceived as a quality and a high end product.
Marketing Mix Strategies
Promotions- Promotions include the combined marketing communication strategies that are used by a company to communicate its product to the customer (Blakeman, 2014). There are various communication methods that can be used by Leviathan for its new fashion accessories product range like advertising, publicity, sales promotion, sponsorships and social media (Kemme, 2018), Most firms use a combination of communication methods to reach the target customer (Baines, 2013). This combination is called communication mix.
Choice of communication mix is based on a number of criteria. These include the budget of the communication initiative, the target audience and the reach and duration of the campaign (Blakeman, 2014). Additionally, it is also important to decide the various media to be used for the campaign.
As Leviathan fashion accessories are targeted at professional women of middle income group and high society women it will be advisable to advertise the fashion accessories on television, print and social media.
Following is a media plan for communication mix for new fashion accessories of Leviathan
Media Plan for New Product Launch
|
Media Selected |
Method |
Reach |
Frequency |
Budget In Australian Dollars |
|
Television Advertisement |
4 major entertainment and fashion oriented channels |
Countrywide |
Seven times a day daring prime time for next 1 year |
$200,000 |
|
Print media |
Full page coloured ad in 2 major women and fashion magazines |
Countrywide |
Once a month for next one year |
$80,000 |
|
Public relations |
Press release, newsletters and mails sent to customers. |
Countrywide |
Weekly |
$30,000 |
|
Sponsorships |
Sponsoring 2 fashion event within next one year |
Countrywide |
Twice a year |
$300,000 |
|
Social media |
Engaging customers in discussion over Twitter and Facebook |
Countrywide |
Daily |
$60,000 |
|
Total |
$6,70,000 |
Table1 Source: Made by Author (2018) Adapted from (Blakeman, 2014)
Through the use of the above media mix Leviathan can create an image of quality fashion accessories brand. Through advertisements the firm can continuously remind the customers about its product. It can also position itself as a quality fashion accessories brand through these media initiatives. Social media will help in creating feedback and review mechanism for the brand. Through sponsorships the company can catch mass attention and generate mass appeal. Print Ads in fashion magazine will help create an image of high end fashion accessories.
Therefore, a combination of well thought out communication mix strategies can help in creating brand identity and frequent brand recall for the company and its new product.
Conclusion
Well planned marketing strategy helps in creating a proper direction for a new product launch. A new product cannot be launched without strategising about the target market segmentation and marketing mix. Positioning and segmentation strategies can assist a firm in creating proper brand awareness for the product. Leviathan will greatly benefit in its new product launch if it strategies its marketing plan properly.
References
Armstrong, G. (2012). Marketing: An Introduction. New Delhi: Pearson Education.
Baines, P. (2013). Essentials of Marketing. Oxford: Oxford University Press .
Baker, M. (2012). The Marketing Book. New Jersy: Routledge.
Baker, M. J. (2014). Marketing Strategy and Management. London: Macmillan International Higher Education.
Blakeman, R. (2014). Integrated Marketing Communication: Creative Strategy from Idea to Implementation. Plymoth: Rowman & Littlefield.
Boone, L. (2011). Contemporary Marketing. New York: Cengage Learning.
Charlesworth, A. (2011). Internet Marketing: a practical approach. New York: Routledge.
Czinkota, M. (2014). International Marketing. London: Cengage Learning.
Ferrel, O. (2012). Marketing Strategy. New York: Cengage Learning.
Jaworski, B. (2018). Commentary: Advancing marketing strategy in the marketing discipline and beyond. 34(1), 63-70.
Kemme, V. (2018). Strategic Integrated Marketing Communication: Critical Evaluation of Current Integrated Marketing Communications Practice at the example of Lufthansa. Munich: GRIN Verlag.
Kotler, P. (2012). Marketing Management. Essex: Pearson Education.
Levianthan. (2018, June 5). Home. Retrieved from Levianthan: https://www.leviathan13.com
Rosanna, G. (2014). Creating and Marketing New Products and Services. Boca Raton: CRC Press.
Sood. (2017). Strategic Marketing Management and Tactics in the Service Industry. Harshey: ICI Global.
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