Marketing Estee MARKETING PLAN EXERCISE ‹#› DEFINE CONSUMER MARKETS Q1. Develop a demographic profile of the customer to include-Age, Income, Oc

Marketing Estee

MARKETING PLAN EXERCISE

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DEFINE CONSUMER MARKETS

Q1. Develop a demographic profile of the customer to include-Age, Income, Occupation, Education, Lifestyle (Activities, Interests, Opinions).

Persona:

If we had to describe our persona based on the market research, we made;

A girl aged 21, lives in California, active on tiktok, follows trends, spends $51-100 on cosmetics per month, still a student at an art school, cares about sustainability and the environment, she loves aesthetic packaging, catchy products with a good quality, expresses herself through her hair/ fashion and knows exactly that beauty is an attitude (-Estee Lauder).

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DEFINE CONSUMER MARKETS

Q2. Describe the motivation of the target consumer. Why is the consumer buying the product?

The motivation of the target consumer is affordability, trendy, helps express their personality in a unique yet classy way, eco-friendly, does not harm the hair, cruelty free, community feeling (sense of belonging), E-Loyalty aspect, rewards system from the consumers generated content. IN A COMPETITIVE ENVIRONMENT, we need to position the product as the main solution for our target.

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DEFINE CONSUMER MARKETS

Q3. What external forces will influence the target consumer as he or she considers purchase? For example, will the consumer’s culture or subculture affect the purchase decision? How?

Social environment e.g. culture in society and generation of the customer will influence the target consumer as he or she considers purchase hair product.For example, the consumer’s culture affects the decision. For example, it is not acceptable in certain society if you dye your hair or hair product is popular in your society. On the other hand, the generation of customer (between 18-33 years old ) are willing to buy the hair products from Estee lauder according to our group’s market survey.

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DEFINE CONSUMER MARKETS

Q4. Describe the consumer’s typical consumer purchase decision process. What is the likely process a consumer will go through in making the decision to purchase the product?

1- The ZMOT, would be the target scrolling on tiktok.

2- The FMOT, they see a viral tiktok related to the product by an influencer and an awareness will occur.

3- Then they will check more videos and start researching the product more.

4- They will start thinking if they should buy it online or in-store.

5- After checking the website, they will realize it has more benefits with the E-Loyalty for Estee.

6- The decision of buying the product will occur.

7- They will receive it with a small gift, leading them to get trapped in the loyalty circle.

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IDENTIFY TARGET MARKETS

Q1. Consider the various approaches to segmenting your market(s). What segmentation approaches do you recommend? Why do you recommend these approaches over other?

We recommend behavioral segmentation over other because it enable to divide markets by behaviors and decision-making patterns such as purchase, consumption, lifestyle, and usage.This approach is related to our target customers’ decision when it comes to purchasing hair products. For example, younger customers may tend to purchase the variety of hair products more often than the older consumer.

IDENTIFY TARGET MARKETS

Q2. Evaluate your proposed segments against the criteria for effective segmentation? What does this evaluation lead you to conclude about the best way to proceed?

IDENTIFY TARGET MARKETS

Q3. Systematically analyze each potential segment on your list using three steps you learned in the chapter: 1) assess each in terms of segment size and growth potential, segment competitive forces, strategic fit of the segment, 2) for the short set that emerges, develop profiles of each potential target market, then identify each of your final set as primary, secondary, tertiary, or abandoned. 3) Select the target marketing approach for each of your primary target markets.

IDENTIFY TARGET MARKETS

Q4. Identify the likely sources of differential advantage which you will focus on developing positioning strategies.

DEFINE THE PRODUCT STRATEGY

Developing an effective marketing plan begins with an understanding of your product, its role in the company’s overall business strategy, and more specifically, where it fits in the company’s product mix. Additionally, it is important to establish a new product development process that ensures a new product pipeline of potentially successful new products.

Q1. Define the product to include-a value proposition, characteristics.

DEFINE THE PRODUCT STRATEGY

Q2. Identify the product’s position in the product line (if offered with other similar products) and more broadly, the company’s overall product mix-

a. How much would this product differ from other products in the product line (if appropriate)

b. What price point would this product target and is there any conflict with existing products?

c. How does the marketing message differ for this product from other products in the product line?

In the context of new product development-

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DEFINE THE PRODUCT STRATEGY

a. For new product development process, do you want to expand existing products into new markets?

b. Define expected features that are likely to be added over the next 36 months and the timeline for introduction. Chart the diffusion of the company’s product into the market. Define each group in the diffusion (Teams’ working in the technology sector should work on this.)

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Defining the Branding Strategy

Building a strong brand is critical to product’s long-term success. At the same time, it is important to understand how a product’s position in its life cycle influences marketing mix decisions.

Q1. Create a package design for the product. Specifically, the marketing communications, and other information considered important for the package, legal statements.

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Defining the Branding Strategy

Q2. Develop a warranty for the product. What elements are specifically covered in the warranty? Does the warranty meet, equal, or fail to meet market expectations and competitor warranties?

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Defining the Branding Strategy

Q3. Create a branding strategy to include the following-National/store branding, Stand-alone/family branding, possible licensing considerations, co-branding opportunities, competing with a social purpose.

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Price your offering

Pricing is an integral aspect of positioning your offering. Price sends a signal to customers about the offering’s quality and other characteristics. At the same time, effective pricing ensures margins and profits needed for continued success.

Q1. Review the options for pricing objectives and strategies and establish an appropriate set for your offering.

– Penetration pricing

– Profit maximization and competitor-based pricing

– Value pricing

– Generic price-quality positioning

– Product line pricing

– Reference pricing and average-cost pricing

– Captive Pricing

– Odd/Even Pricing

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Price your offering

Q2. Review the various pricing tactics and select a mix of tactics that you believe is most appropriate for your offering.

It is first time Estee Lauder introducing hair dye product in the market, penetration pricing strategies is recommended to gain maximum market share. At slightly below competitor-based pricing must be considered while not damaging customers perception of quality of the product. One way to secure, main core brand value as well as penetration pricing is to launch a more affordable product line to enter the market.

E-loyalty and bundle packaging can generate product line and captive pricing. For example, Estee Lauder can make a product bundle, bleach and hair-dye, and consumer gets benefits on the price buying the bundle. This strategy allows customers to buy a package deal ate a lower price than if items bought separately. E-loyalty members will get more promotion offers and special offers such as free shipping and tester bundles

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Price your offering

Q3. If it’s a new product, consider the methods for establishing exact price and select a final price for the offering.

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Price your offering

Q4. What channel discounts and allowances will you provide on your offering?

E-loyalty members will receive special promotions and offers via email and text. For E-loyalty customers Estee Lauder will provide them with testers periodically in order to enhance sales online.

Winning Estee Lauder’s Tik-Tok competition, the winner will rewarded NFT which gives various benefits experiencing the service of the company or with small gifts and samples of the products.

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Promote your offering

1. Using the promotion mix elements design a promotional strategy utilizing the elements of the mix that are most appropriate for your offering. It is important to link the promotional strategy to

PLC as well as the stages your customer will go through on the AIDA model.(Hint: To explain the promotional strategy-Teams can describe the digital marketing approach,

advertising, sales promotion, PR approach, personal selling etc.)

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