Time Constrained Assignment

Posted: January 4th, 2023

Time Constrained Assignment

Student’s Name

Institutional Affiliation

Time Constrained Assignment

Executive Summary

            Sea Elixir is a new and innovative anti-ageing product that will potentially revolutionise the skincare and cosmetics industry. The company has been working on its development for eighteen years, and it is expected to launch the product very soon. This plan highlights the main markets to consider across the United Kingdom and the characteristics of the target consumer. The pricing strategy will also be outlined along and its significance on both the organisation and its consumers. Finally, the impact of different marketing elements on the product’s success will be discussed.

Introduction

            Sea Elixir is a new anti-ageing cream manufactured by LaBelle Cosmetics Company. The company worked on developing and testing the product for the past twenty years, and it is currently ready for the market. This product is specifically unique in the current market as it functions by stopping the process of ageing. As a result, people can stay younger for longer. Labelle has a selective distribution process that increases profitability while lowering distribution costs. It also has a strong network that extends beyond the beauty industry, which has helped in expanding the consumer market.  The proposed plan highlights the introduction of Sea Elixir into the market, its key markets, the pricing strategy, and other integral marketing aspects.

Key Markets and Main Customers

            The United Kingdom has a flourishing skincare market that provides a practical opportunity for the success of Sea Elixir. Lin, Yang and Hanifah (2018) project that by 2024, the market will reach £19.76 billion, and it will grow at a rate of 5.2% over the next four years. The European market is characterised by an increasing focus on the production of quality products and maintaining an active presence. Another characteristic of this market is that there is a growth in buyer awareness, and more people are concerned about the production process and the raw material. Domestic consumers have gained more insight into skin properties, thereby making them more cautious about different products or treatments.

            In terms of customers, the product will have a diverse range of consumers due to its efficiency and the demand for anti-ageing products today. The main target would be empty nesters and middle-aged women aged between 40 to 60 years across the UK. Research by Searing and Zellig (2017) shows that these populations tend to be keener about their appearance, and they spend more time and money on skincare in comparison to other demographics. Young male metrosexuals and female professionals will also be included in the market as they also invest heavily in skin and beauty products. Sea Elixir will be marketed as a premium skincare product targeting high-end and upper-middle-class demographics.

Pricing Strategy to be Adopted

            The company should select a suitable strategy that emphasises the quality and worth that the product provides. To this extent, a value-based strategy would be the most effective approach. Value-based pricing entails basing the cost of a product on the consumers’ perception of its worth (Liozu, 2017). It provides an outward look centred on the customer and the value that they would place on the commodity. The advantage is that it highlights the uniqueness of the product, and the company is can regulate the price to meet consumer demands. Additionally, this approach primarily applies to markets where the possession of a commodity would provide an unparalleled experience or enhance the consumer’s self-image. Customers would consider it to be a high-value commodity as it would help them retain a youthful appearance.

            Determining the product’s value would require an in-depth analysis of the market and its consumers. The company should conduct consumer research by soliciting their feedback on what they would pay to purchase Sea Elixir. This measure is instrumental in quantifying consumers’ perceived value based on their experiences with other anti-ageing products in the market today. LaBelle Cosmetics has a significant advantage in the market because the product is uniquely differentiated in the market. It also presents other healthy values that extend beyond the outward appearance. These aspects should be highlighted when conducting research and determining the best price.

Recommended Promotional Techniques

 It is important to select promotional tactics that emphasise exclusivity and premium product desirability to reach the target market and to cultivate loyalty.  To this extent, the company will incorporate digital marketing, direct marketing and public relations. According to Atwal and Williams (2017), luxury products can increase revenues by 40% by integrating a premium spin into each of the mentioned strategies. Digital marketing is currently among the leading marketing strategies as it encompasses diverse approaches to reach consumers beyond geographical borders. These approaches include social media marketing, wireless media, and marketing through email. The company can also collect customer data while improving on its customer relationship. On social media, the best approaches would be Instagram and Twitter, which have been proven as natural channels for showcasing affluent lifestyles.

            Aspirational target marketing is another suitable technique that the company can use to target millions of customers on social media. This strategy is an effective way to reach consumers from different backgrounds and help them develop an interest in this product despite not being able to afford it at the time. It also positions the consumer to anticipate purchasing the product in the future. To achieve this, the company will use different platforms, including blog posts, videos, photographs, and interviews on multimedia platforms. The goal is to popularise the brand and to create extensive awareness about the anti-ageing product.

Key Competitors

            Currently, the anti-ageing market is dominated by multinational beauty and cosmetics companies and pharmaceutical companies. Some of these companies include Allergan PLC, Avon Products, and Johnson & Johnson. Their longevity in their respective industries provides a competitive advantage as they have a sharper brand image, and consumers easily trust their products. The current market is dominated by anti-wrinkle products, nourishment products, and anti-stretch marks products.  Besides, the UK is a primary anti-ageing market across Europe that is targeted by many organisations in the beauty industry (Alexis, 2019). However, Sea Elixir has a significant advantage due to its differentiation and its long-term effects. The organisation must emphasise on these effects along with other health and wellness benefits that the product would provide.

Relevant Marketing Environment Impacting Plans

            A critical aspect of the marketing environment is the product life cycle. Currently, Sea Elixir has completed its development period, and it is ready for launching. If the marketing strategies are incorporated effectively, the company will gain more customers and eventually, the market will stabilise. The company should invest in intensive and aggressive marketing to create more publicity and to draw the attention of the target consumer. When the product achieves maturity, it is anticipated that the market and sales would be stable. Other competitors in the industry will have already started their developments, and they would begin to introducing their substitutes to the market. Therefore, the company should develop flexible marketing strategies designed to maintain its position and superiority in the market. This measure will be instrumental in mitigating a decline in sales and in lengthening the product life cycle.

            A market development strategy will help the firm to expand its reach and potentially attract consumers across new geographies, regions, and market segments. According to Johnson (2016), this approach is mainly successful if an organisation owns proprietary innovations and products that it can leverage. The novelty of this product creates a suitable platform for market development, and it will be used to diversify the market. As the market expands, the firm will incorporate a market penetration strategy to focus on high-end clients and other potential markets that might emerge. The targeted consumers are also profitable since they have disposable income, and they emphasize their self-image.  

            Another critical element that would have a significant impact on the product is the political and legal environment. Sea Elixir is an innovative product that causes biological changes to the body, and as such, some several laws and regulations might influence its success.  Currently, the EU Cosmetics Regulation ((EC) No. 1223/2009) governs the production and supply of cosmetic products in the UK (Savić & Paunović, 2018). However, since the product also affects the body’s cells, health safety regulations would also apply. Compliance with these regulations, along with other emerging laws is vital for organisational success. The firm should, therefore, stay updated on these regulations if it intends to expand beyond its current geographical borders.

Conclusion

 The success of this innovative product is dependent on the marketing strategies incorporated by the organisation. Based on the current market, its major strength is that it is specifically unique, and its effects prove to be long-term. As a result, it can attract significant attention, both locally and internationally. The immediate goal is to sell the product across the UK, and this is achievable through digital marketing and public relations. Value-based pricing would be the most effective pricing strategy as it will help the company to understand the customer. The firm should also consider the effects of different market elements such as consumer needs, political and economic climate, and market development.

References

Alexis, P. A. (2019). The Big Beauty Business: A Fundamental Analysis of The Beauty Industry Institute, And Its Economic Value. Omega Publishers.

Atwal, G., & Williams, A. (2017). Luxury brand marketing–the experience is everything!. In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.

Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education: Cham.

Lin, Y., Yang, S., & Hanifah, H. (2018, October). An Exploratory Study of Consumer Attitudes Towards Green Cosmetics in The United Kingdom (UK) Market. In Global Conference on Business, Hospitality, and Tourism Research (GLOSEARCH 2018).

Liozu, S. M. (2017). State of value-based-pricing survey: Perceptions, challenges, and impact. Journal of Revenue and Pricing Management, 16(1), 18-29.

Savić, S., & Paunović, J. (2018). Safety of cosmetic products in the light of European legislation: Cosmetic Regulation (EC) No 1223/2009. Arhiv za farmaciju, 68(5), 911-933.

Searing, C., & Zeilig, H. (2017). Fine Lines: cosmetic advertising and the perception of ageing female beauty. International Journal of Ageing and Later Life, 11(1), 7-36.