Strategies for Aveda UK's Shampure Market Entry

Introduction:

In today’s fast paced business world, digital marketing communication is strongly associated with all aspects of marketing such as pubic relations, sponsorship, advertising, customer dealings, direct marketing, personal selling and sales promotion. this essay will discuss the market approach taken by famous American cosmetic company, Aveda UK, which has launched its new haircare product, Shampure, the hair nurturing shampoo. This essay is going to discuss that, how Aveda UK would make overall market analysis and market segmentation of its new haircare product, Shampure. In addition to this this essay will also analyse market position for this new product in the UK, with mentioning strategy that is set by the marketers of Aveda UK in order to make proper segmentation, positioning and targeting for this new product. Finally, this essay will suitable recommendation for marketing mix of the for the new product.

Description on new products:

Aveda UK is the well-known seller of natural and eco-friendly hair and skin care products. Shampure is the newly launched hair nurturing and hair repairing shampoo of Aveda UK, which is made with natural ingredients and eco-friendly materials. The price for this product is fixed by Aveda UK is £15.50, which is quite affordable and justified as per the market norms. Marketers of Aveda UK are hopeful for positive review of this products. this shampoo has 95% naturally derived ingredients, which are purely aromatic and are highly useful for nurturing and smoothening hair. The product has abyssinian oil that provides long lasting nourishment and glossy look to hair. Shampure gently cleanses hair leaving fresh aroma of pure flowers and plant essences. It is completely eco-friendly and aromatic product which contains non-petroleum oils and minerals. Moreover, Aveda UK has also made its strong focus on the overall packaging for this product. Shampure is packaged in a non-plastic container which is also completely eco-friendly and can be recycled. Aveda UK, is famous in the UK for its natural haircare and skin care products which can be used by people of all the ages and all types of hair texture and skin complexion. Shampure can be used by both the males and females having any hair texture (Dry or oily).

Analysis of market for this product:

Market analysis is one of the important parts of business plan, which assist marketers to make the qualitative and quantitative assessment of market for a particular product. Through conducting proper market analysis of Shampure, marketers od Aveda UK can set the clear ideas on target market, market needs, competition, barriers to entry and regulation for this product in the international market.

Market demographics:

Analyse market demographics is important part of conducting Market analysis for particular product. As stated by Alt and Iversen (2017), there are different variables such as gender, age, education, occupation, ethnicity and income, based ion which marketers do the demographic segmentation of their product. Aveda UK, has segmented the entire market of Shampure in demographic, psychographic, behavioural and geographic segments. In case of analysing the market demographics for Shampure, Aveda UK considers some important variables such as age, occupation, education and income of the consumers. Marketers of Aveda UK targets young consumers, educated people, middle class and upper middle-class people. According to DeSarbo et al. (2017), recent researcher has shown that, with changing social perception and values, young and educated people become highly addicted towards eco-friendly cosmetic products. Moreover, people belonging to the middle class and upper middle-class society has shifted their presence towards luxurious product to aromatic and natural products. Aveda UK considers the changing buying behaviour of UK based people and makes best effort in order to offer natural and pure aromatic haircare products to the new generation people in the UK. for marketing of Shampure, Aveda UK has selected young generation people belonging to age group 18-45 years, as young generation is more concerned about their hair and skincare. On the other hand, middle and upper middle-class people are targeted for this product by Aveda UK, as they can afford the natural and aromatic product.

Target market:

As stated by Gupta et al. (2015), target market is referred as the types of consumers that marketers select for selling their product or service. Aveda UK has targeted young generation people who belong to age group 18-45 years, for promoting its newly launched product, Shampure. In this aspect Hatheway et al. (2017) stated that, today’s young generation in the UK are highly conscious about selecting the haircare brand. They are Highy addicted towards the aromatic and eco-friendly products in order to protect their hair and skin from any damage or harmful effects of chemicals. Aveda UK represents Shampure as completely non-petroleum and eco-friendly products which is made up of natural oils and flowers essence. Therefore, there is high possibility of getting positive feedback and appreciation of this product from young generation people such as college students, teenagers, young women and men. Moreover, with increasing number of initiatives taken by the UK government in order to enhance the usage of eco-friendly products, young generations are influenced for changing their buying trend from costly lavish products to the eco-friendly products. therefore, it can be stated that, the selection of young generation as target people by Aveda UK is relevant and justified for marketing its product, Shampure.

Market need:

In order to analyse market for a new product, marketers required to understand whether the product is needed or demanded by target population (Hidayat et al. (2016). Through analysing market needs, marketers understand whether the new product or service is useful for the consumers. Based on the increasing preference of consumers towards buying eco-friendly cosmetics in the UK, it can be stated that, Shampure would be able to meet the customer needs. According to DeSarbo et al. (2017), due to high number of pollutions, global working and damage to eco-system, UK government focus on motivating citizen to use the eco-friendly and natural products. Different campaigns are conducted by the social activists in order to raise awareness in new generations to shift their buying preference from the luxurious products to eth eco-friendly products. Therefore, the demand of eco-friendly cosmetics such as aromatic haircare products, skin care products increase in the UK. in this aspect, it can be stated that, Shampure, would be able to grab the strong market position in the UK market by satisfying the needs of its target customers.

Competition:

With increasing consciousness about selecting the best haircare and skin products in the UK, different haircare companies are developed here such as Hair by Clare Aston, Longridge Hair & Beauty, Rio Hair Co and Saks. These haircare companies are potential rivals of Aveda UK, as they are the well-known seller of costly and reputed haircare products. According to Hidayat et al. (2016), analysis of market competition will assist marketers in setting strategy for dealing with the competitive threats. On comparison to these above-mentioned haircare brand in the UK, Aveda UK is the only aromatic and natural hair and skin care company, which offers completely aromatic products to its customers. Moreover, Shampure is highly recommended for any type of hair for both male and females, with very affordable price (£15.50). on the other hand, Aveda UK offers 20% discount for each titre bottle of Shampure, which can be important strategy to attract the customer’s attention.

Barriers to entry:

In order to promote Shampure, Aveda UK can face different barriers in the UK market. one of the potential barriers is traditional viewpoint of some consumers. As stated by Huang (2017), some consumers prefer to choose costly haircare products which is non-aromatic and non-eco-friendly. There are also some young generation people in the UK who believes that, eco-friendly products are not completely manufactured by natural flower essence and plants, therefore is unable to protect the hair and skin completely as compared to the high-cost luxurious haircare and skincare brand. This perception can pose an adverse effect on selling of Shampure, which not only will lead to huge market loss but can damage the international reputation of Aveda UK. Another potential barrier to market Shampure is traditional social perception, which poses pressure on young generation to use existing haircare brands in spite of the fact that these products are made up of non-aromatic and petroleum materials. Moreover, the price fixed by Aveda UK for Shampure is relatively lower than the haircare products of other UK based potential brands. This can make negative perception on the upper middle-class consumers, as they can think that Shampure can be cheap and low graded products which would be unable to shine and nourish their hair.

Strategy of segmentation, positioning and targeting for the new product:

Segmentation:

Market segmentation is process of dividing entire market of strong customers into different groups and subgroups based on some important characteristics (Joll et al. 2018). There are four types of market segmentation such as demographic, behavioural, psychographic and geographic. Aveda UK has selected psychographic and demographic segmentation, in which it chose some unique characterises of its potential customers. In demographic segmentation, Aveda UK has selected young consumers with age group 18-45 years, who are highly interested in using natural and aromatic shampoo, Shampure. Aveda UK has targeted population with middle and high income, as they can afford the price of Shampure without facing any financial hurdles. In addition to this, Aveda UK has chosen educate young people, who are conscious about choosing highly useful haircare brands. Educated people in the UK are more likely to chose aromatic and eco-friendly haircare products as compared to non-educated people. On the other hand, in psychographic segmentation, Aveda UK has chosen young people with modern approach and trendy lifestyle who are addicted to use new haircare products.

Targeting:

Target marketing is the process of selecting and evaluating the target segment for promoting own product (Kassem and Succar, 2017). In this process, marketers select the appropriate market segment among the four types of segment, such as demographic, psychographic, geographic and behavioural market segments. Aveda UK has focused mainly on demographic and psychographic market segment. In case of demographic segment, it has target age, occupation, education and income of people. On the other hand, in case of psychographic target, Aveda UK has selected variables such as life styles, life stages, belief and values and behaviour of its potential consumers.

Demographic target set by Aveda UK:

Age group: Young consumers belonging to age group 18-45 years

Occupation: businessmen, marketers, students, industrialists and entrepreneurs

Income: Middle-income and higher-income people

Education: literature people

Psychographic target set by Aveda UK:

Lifestyle: People with trendy and modern lifestyles

Belief and values: people with modern beliefs, perception and values

Life stage: people aged 18+ are targeted

Behaviour: Young people who has shifted their buying preference from luxurious cosmetic products to aromatic product

Positioning:

Product positioning is the last step of market STP model (segmentation, targeting and positioning model). As stated by Li (2019), It aims to form proper brand positioning in the market in order to assist the company to occupy distinct position. Aveda UK has taken effective steps in promoting the newly launched Shampure. It has done core brand proposition, online value proposition, online marketing mix and brand development agendas in order to promote the new product, Shampure.

Marketing mix for the product:

Marketing mix is blend of seven marketing variables that the organisation considers in order to market their service and products (Neuts et al. 2016). Aveda UK is recommended to consider the seven marketing components such as product, place, price, promotion, people, process and physical environments for analysing expected market position of the newly launches product, Shampure.

Product:

Product is one of the most important components of marketing, which is used to meet customer needs (Noyelle, 2019). Aveda UK, is recommended to improvise the overall service of its newly launched Shampure. As there are many potential rivals in the UK market such as Clare Aston, Longridge Hair & Beauty, Rio Hair Co and Saks, marketers of Aveda UK need to be highly focused on maintaining uniqueness of Shampure. In order to deal with the competition threats, Aveda UK has already taken some important strategies such as huge promotion of Shampure on social media, official websites and blogs. More’re, Aveda UK has highlighted the unique feature of Shampure such as its natural ingredients, co-friendly nature, nourishing features, non-petroleum ingredients and highly adaptability to all types of hair. Moreover, Aveda UK needs to assure the quality of its newly launched product Shampure, by checking the overall manufacturing process of this shampoo, in order to ensure that it will be able to meet customer needs.

Price:

Price is important component of marketing product or service (Piercy, 2016). Marketers need t set such price margin which will be based n the current market standard. Aveda UK offers its newly launched product Shampure to minimum costs, which will assist the people belonging to middle and upper middle class to afford this product. Moreover, this company, has made strong business agreement with famous social media sites Facebook, Twitter and YouTube, to use their online tool in order to promote Shampure. In addition to this, Aveda UK is recommended to get sponsorship from different advertising agencies, which will assist this company to high revenue at the end of the year.

Promotion:

Promotion is important for marketers in order to enhance awareness about their new products ad service among the target consumers (Trejo, 2018). Aveda UK is recommended to use the social media such as Facebook, Twitter, YouTube, Google+ and Instagram to promote its newly launched product Shampure. Moreover, Aveda UK can promote the product on their official websites and famous bog sites. By making business agreement with the famous online marketing companies such as online fashion brand Amazon, Aveda UK can promote their products in front of millions of customers.

Place:

The target place set by Aveda UK, market firm is crowded town and suburban areas, in which people can stay connected with the all-time network service (4G internet service). This online firm selects the such places of urban areas in which consumers can easily access the internet connection and can avail the product series.

People:

People means the entire workforce of the organisation who are associated with products of that organisation. Aveda UK has highly cooperative and skilled teams, who work in synergistic manner (Viswanath, 2017). Aveda UK provides the highly efficient training and learning opportunities for the staffs which enhance their productivity. in addition to this, Aveda UK needs to improve the remuneration process and reward system in the workplace which will enhance the employee engagement and employee motivation.

Physical evidence:

In marketing of any product or service, it is important that how the service or product is introduced to the consumers (Wang, 2016). Aveda UK needs to assure that; consumers can get Shampure within proper delivery time with out facing any hurdles. In this aspects, Aveda UK strengths its supply chain management process and delivery process to make the delivery of this product faster to the customers.

Process:

Aveda UK is recommended to improvise the entire process of supply chain management and delivery chain process.

Conclusion:

From the overall discussion, it can be concluded that, digital communication marketing is important aspects inn todays business world. Aveda UK, the UK based haircare and skin care company, which has recently launched its new product Shampure, the hair nourishing shampoo. In order to promote the product, Aveda UK has made the market analysis assist the marketers to analyse the expected market position of the new product. Moreover, this essay has used STP model and marketing mix, which describes the marketing components that are needed to be considered by the Aveda UK in order to market the product, Shampure.

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