Factors Affecting Wild Child Business
1.Justify and discuss the selection of two key Micro Environment and two key macro environment elements that are likely to affect the business referred to in this case?
2.Describe how the market for the product category of the business referred to in this case might have been segmented by this business?
3.Which elements of the extended market mix (i.e. all 7 elements) have been carefully managed by the business referred to in this case, and suggest one marketing mix element that might be better managed to deliver customer value, justifying your answer?
Marketing and Distribution has evolved over the years and have crossed leaps and bounds to make a business popular across different geographic regions. Correctly marketed products can help the business in gaining market share in any region (Kotler, 2010). It also helps the company to establish its brand and focus on expanding the business over other territories. Distribution plays a key role over the success of the business. Correct logistics strategies helping in cutting down costs and thereby adding to the margins of the company. Thus, focused marketing coupled with strategic distribution plays the key role in the success of any product based company.
This case is related to business which started the product for home use and later seeing the popularity, decided to launch it in commercial space. Leanne Preston started the product “Quit Nits” as a tool to remove head lice for her own child and then went on to commercialize it across Australia. Soon after receiving wide popularity in Australia, she focused towards international expansion with UK being the first region to explore. IN the meantime, she had started other naturally synthesized products like sunscreens, baby washes etc. under the parent Brand name “Wild Child”. After UK, she expanded the business to US and now have substantial market shares in head lice products in these markets (Möller, 1987).
1. Macro environment and micro environment factors play a very role in the development of any business. The macro environment factors or elements are the external elements which may have impacts on any organization’s decision making. These cannot be controlled by the business. These may include demographics, legal factors, economic elements, social elements, technological changes etc. (Ginter, 1990). On the other hand, micro environmental elements are the ones present within the business’ area of operations and can have an impact on the daily operations and decision making of the business. These include the entire supply chain starting with suppliers, distribution channels, customers, competitors etc.
Market Segmentation
Leanne Preston started her work on the product by hit and trial method for her own children. She got the inspiration when she saw that the products related to head lice removal were containing toxins and may be harmful for the children. She then decided to get a cure which will be home grown and free of any kind to toxins. Success in home procedure urged her to launch nationally and later internationally under the parent brand Wild Child.
Strategic execution of techniques related to Macro Environmental factors have played a crucial role in the success of Wild Child in Australia and internationally. Demographics is one such macro environmental elements which needs to be studied carefully before trying to target a market either nationally or internationally (Coughlan, 2001). Leanne did her study on this part thoroughly. She learned that head lice removal product is being used by people right from birth till death. Each person faces the issue of head lice sometime during their life. Children are more prone to head lice. So, manufacturing of an organic head lice removal product would surely attract customers. This got her to work harder and rewarded her with success. Another macro environmental factor, Legal factors have a very important role to play in case the business is thinking to go international (Kotler, 1969). Leanne leant about the legal procedures which a pharma related product needs to follow while entering US and UK markets. She tied up with best-selling pharmaceutical stores in both US and UK to mark the Quit Nits’ presence in the both the regions. Pharma sector is very closely monitored for legal violations and Leanne didn’t want to give the officials any reason to deprive her with such a great market (Smith, 2001).
Customers are the ones which can make a product, a huge success. They must be provided with the value which can take the products to new heights. Leanne banked upon it when she launched her Organic Head Lice removal product Quit Nits. She wanted to make her customers happy and satisfied with an organic product. Developing a wide customer base is important to for any business to take on to external forces and later to launch in various other regions (Kotabe, 1998). When a business should look towards satisfying it customers by providing value to them, in the meantime, the business should also focus on staying on top of competition. The core competency of Leanne was the organic product and apart from the ingredients, everything else was secondary. A good business should always focus on the core competency. Leanne also did the same. She entered UK by partnering with Boots which resulting in wiping out competition from the largest manufacturer and seller of head lice product in UK. In US, as well, the same was done by partnering with another major pharmaceutical store.
Positioning of the Business
Segmenting is a very important step for marketing a product. The segmentation of the market refers to lot of brainstorming activities which is needed to find out the potential market segments which the business should target (Soares, 2007). Customers’ market need to be segmented based on their age, caste, culture etc. The Product in the case is a Head Lice Removal product. It is used by people of all the ages. However, children are more prone to head lice. Thus, proper care is required for the children. The product need to be segmented based on the age groups and then smaller modifications need to be brought in the composition to suit all kind of age groups. For this product, demographics will be the one which will serve as the base for the segmentation. The segmentation will help the product to properly target the market and build a name for its brand in the market. Thus, the national as well the international market could be targeted effectively after strategic segmentation (Kent, 2007).
As discussed in the above section, the segmentation of the market refers to lot of brainstorming activities which is needed to find out the potential market segments which the business should target (Huang, 2014). The product need to be segmented based on the age groups and then smaller modifications need to be brought in the composition to suit all kind of age groups. For this product, demographics will be the one which will serve as the base for the segmentation. One of the segment will now be based on the age group as discussed above. Children will be the primary segment in this and adults the secondary. Apart from the age group, the product will be segmented in the Organic/Natural product category. Since, the product Quit Nits is free from any poisonous material, it will be put up with the Organic tag so that it will attract more customers. Generally, people are more attracted towards the product which offer them value without any kind of side effects which can be harmful for them and their children. Thus, the segmentation as a natural product might be successful for the business.
Before the positioning of any product in the market, it first needs to be targeted successfully. The Targeting refers to the promotion of the product in different segments in a different manner (Assael, 1984). The campaign will focus on the targeting of different segmentations in different ways. Once, the targeting phase is completed then positioning will begin. Positioning means the aligning of the product or the brand in the target market. The main objective is to provide the customers with core values which they seek in the form of a product. Quit Nits will be positioned as an organic and all Natural product which is free from any toxin and is equally effective in removal of Head Lice. This innovative and cutting edge advancement over the competitors will help the business to create a position for itself in the market (Tian-yuan, 2001).
3. Marketing mix is a mix of certain elements of marketing which helps in launching a product in a successful manner (Borden, 1964). These basically include Product, Price, Place and Promotion. However, later Extended marketing mix was developed to bring in some more elements into the focus which also have an equally important impact during the launch of the product. The extended marketing mix includes Product, Price, Place, Promotion, People, Process and Physical Evidence (Goi, 2015).
Extended Marketing Mix
The business in the case is a Head Lice Removal Product. The Product element of the marketing mix have been carefully researched and strategized in the case. The product has been prepared organically which will get enthusiasm from the markets and will also satisfy the customers by offering them the value which is required.
The Place has been suitable selected by Leanne Preston. First, she launched the product in her native country Australia. Once it was popular in Australia, she expanded it to major markets like US and UK. The Place to launch the product is very essential for the success of any brand and its underlying products (Borden, 1964). Wild Child brand was successfully targeted to the markets of Australia, US and UK to cater to a wide market for the product related to Head Lice removal.
Promotions are used to increase the brand awareness among the targeted customers (Kotler, 2010). People should be made aware about the upcoming product and some promotions like discount, offers etc. should be given so that the customers will try the new product (Vrontis, 2005). Leanne also gave away free samples to child care organizations, customers to increase the product awareness among the people.
People element of the extended marketing mix involves the people working for the company (Grönroos, 1994). Right people need to be employed to get the maximum productivity out of them. Leanne also connected her business with Austrade which helped them in devising all strategies related to the expansion of the business nationally in Australia and internationally in US and UK. This partnership with Austrade proved to be very beneficial for Wild Child.
One element of the extended marketing mix that Leanne Preston should have focused more was the Pricing of the product Quit Nits. The price of a product comes a deciding factor for many customers. Many customers belonging to different income group have different ways of purchasing the products. Some go for top notch quality irrespective of the price. Some settle for low quality product because of lesser price. However, most others will try to find a good quality product in the minimum price. So, Leanne should try to focus on a segment in which she should launch her product so that it could be beneficial in the long term.
Thus, we have seen above that the extended marketing mix plays a very important role in the promotion and launching of a product. Every brand wants to launch its product in the favorable market place conditions at the best price by offering some promotions. Moreover, it should take right judgements on the people employed, processes executed and the physical presence of the brand.
Conclusion
Marketing helps in creating awareness of the brand among the consumers to increase the popularity of the product. It helps in leading the brand to be famous and the products to achieve success. In the above section, we have focused on the case of “A Wild Child goes overseas” in which Leanne Preston launched a product in native country Australia and then expanded to other countries like US and UK. We discussed various theoretical elements which impact the marketing process of the Wild Child.
References
Case Reference:
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