Marketing Klausurvorbereitung PDF

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Marketing Exam Prep Transferaufgabe: Marketing Plan Executive Summary Hairport is preparing to launch a new Anti-hairloss-product, the Hair Force One, in a maturing market. Despite the dominance of the leader Alpecin, we can compete because in our products we are using Finasterid, which are evidentially the first substance that is really fighting hairloss. Current Marketing Sitation Hairport, founded 6 months ago by two entrepreneurs with experience in the medical and coiffeur market, is about to enter the Anti-hairloss-market dominated by Alpecin. As 40% of all men and 20% of all women in Europe are suffering from hairloss we are joining a relevant market, and the available products do not take the effects the customers are expecting. Market Description Hairport’s market consists of consumers who are suffering from hairloss due to different reasons. Specific segments being targeted during the first years include men and women losing their hair due to genetic pre-conditions, people suffering from hairloss as a result of a disease and cancer patients losing their hair as a side-effect of chemotherapies. The purchasers can choose between two different dosing’s based on the reason for their hairloss. Product Review Our product, the Hair Force One, offers the following: - It reduces the enzyme which is leading to the loss of hair - It strengthens the root of a hair - It needs to be used as a shampoo and rubbed in gently. After a residence time of 10 minutes it needs to be washed off thoroughly Needs and corresponding benefits of Hair Force One Targeted segment

Customer Need Reduction of genetically caused cosmetic product hairloss Reduction hairloss caused by illness or medical product chemotherapies

Corresponding Benefit Shampoo with lower dose with a decrease of hairloss up to 20-30% Shampoo with a higher dose with a decrease of hairloss up to 80%

Competitive Review Increased beauty craze of the people led to an increased entry of competitors on the markets, as well as other options deal with hairloss. Key competitors include: Competitor Features Price Reducing hairloss, strengthening roots of Alpecin hair – only a cosmetic product 7,45 € Wigs from several Wigs in different colors and hairstyles to companies cover the hairloss from 20€ to 500€ new roots of are are transplanted into the from 3000€ to Hair transplantation scalp and new hair will grow out of these 15000€

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Marketing Exam Prep Distribution Review Hairport branded products will be distributed through a network of drugstores, pharmacies and online retailers. -

Pharmacies: The higher dosed version against hairloss due to diseases or chemotherapies Drugstores: The lower dosed version against genetic caused hairloss Online Retailers: Amazon.de will carry the lower dosed version and, for a promotional fee, will give Hairport prominent placement on its home page during the introduction.

SWOT Analysis Hairport has several powerful strengths on which to build, but our major weakness is the lack of experience and the high prices. Strengths Hairport is offering an innovative product, as it is the only effective one on the markets, which is therefore our USP. Weaknesses Hairport has two main weaknesses: 1. Lack of experience 2. High prices due to high production costs Opportunities Hairport can take advantage of two major market opportunities: 1. Demography: The people are getting older and most of the older people are losing hair 2. USP: No comparable product Threats We face one main treat at the introduction of Hair Force One: 1. The long-term effects are unknown Objectives and Issues We have set aggressive but achievable objectives for the first and second years of market entry. Objectives We are aiming for a 4% market share in the first year and a 10% market share in the second year. Issues One major issue is our ability to establish a well-regarded brand name linked to a meaningful positioning. We will therefore have to invest heavily in marketing Marketing Strategy Sonic’s marketing strategy is based on a positioning of product differentiation. Our primary consumer target are people losing their hair due to genetic pre-conditions, people suffering from hairloss as a result of a disease and cancer patients losing their hair as a side-effect of chemotherapies. Positioning Our product is the only one that is really fighting hairloss.

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Marketing Exam Prep Product Strategy Hair Force Once will be sold in two different versions: Higher dosed Lower dosed dark green glass bottle light green plastic bottle 100 ml volume 250ml volume Shampoo can be dropped out Shampoo can be squeezed out consistency: liquid consistency: creamy Pricing Strategy Hair Force One will be introduced at 10€ wholesale/ 20€ estimated retail price per unit for the lower dosed version and 30€/ 45€ for the higher dosed version. We expect to lower the prices when we expand the product line by launching a special shampoo for women, to be priced at 20€/ 45€ wholesale per unit. Distribution Strategy Our channel strategy is to use selective distribution to have Hair Force One sold through well-known stores/ pharmacies and online retailers. Marketing Communications Strategy By integrating all messages in all media, we will reinforce the brand name and the main points of product differentiation. Research about media consumption patterns will help our advertising agency choose appropriate media. Marketing Research Using research, we are identifying the specific features, such as smells, benefits and designs that our target market segments value. Action programs Hair Force One will be introduced in February. Following is a summary of the action programs we will use during the first six months of next year to achieve our stated objectives. January We will initiate a 150.000€ trade sales promotion campaign to educate dealers and generate excitement for the product launch in February. February We will share some goodie bags with influencers suffering from hairloss, asking them to post their experiences with our products on social media. March We will distribute new point-of-purchase displays to support our retailers. April We will offer a lottery on our Instagram and facebook channels – the winners will receive a product of their choice. May We plan to roll out a new national advertising campaign this month. 3

Marketing Exam Prep June We will analyze the results of customer satisfaction surveys for use in future promotions and to provide feedback for product and marketing activities. Budgets Total first-year sales revenue for Hair Force One is projected at 1 million, with an average wholesale price of 20€ per unit and variable cost per unit of 5€ for unit sales volume of 240,000. We anticipate a first-year loss of up to 200.000€. Break-even calculations indicate the Hair Force One will become profitable after the sales volume exceeds 267.500, early in the product’s second year. Based on the mentioned assumptions and the estimated first-year fixed costs of 350.000€, the break-even calculation is: 350.000 20€ - 5€

= 23.334 units

Controls We are planning tight control measures to closely monitor quality and customer service satisfaction.

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Transactional + relationship marketing

Relationship marketing and an integrative marketing appreciation as a management philosophy will generate profits more sustainably through customer loyalty…

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Market Volume, market potential, market share

Data can be - Found on Statista for free - Bought from GFK in Nürnberg or Nielsen International >> two biggest providers of marketing research information (they are receiving that information from the retailers, who are selling that information to them) Market saturation describes a strategic market situation, in which the market‘s potential is exhausted, i.e. market volume almost equals market potential. In such a situation significant market growth is not possible anymore.

Portfolio analysis

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Strategic Triangle  If a company has a competitor offering exactly the same product, they should build a brand. It shows how a company can build a competitive advantage. This is mandatory to be successful on the market. There are two drivers: cost and value drivers. Processes must be sufficient, therefore often costs need to be reduced (process optimization). If overall costs are lower for one company, the goods can be sold for a cheaper price and still make profit. Customers are not interested in the production costs, but in the value they get, meaning the perceived value. How is the perceived value of A compared to Price A and B? Based on that the customers will decide which product they will buy.

(Boston Consulting) Growth Share Matrix

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Ansoff Matrix/ Ansoff’s Generic Strategies for Growth

Filling the planning gap with Ansoff‘s strategies:

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Poerter’s generic strategies How can a company basically build a competitive advantage?  You can be better or cheaper than the competitor

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The blue ocean strategy  How to make your competition irrelevant Blue Ocean Strategy is a systematic approach for making the competition irrelevant. The strategy is about creating a leap in value for both the company and its buyers by breaking the differentiation/low cost trade-off. How can you create a blue ocean process? Looking what exists and reconfigure it.

Market segmentation Market segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively

Criteria for segmenting a market: - Measurability is the degree to which segments can be identified and to which the size and purchasing power of the segments can be measured 10

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Profitability is the degree to which the resulting segments are large and/or profitable enough to be worth considering for separate marketing attention. In international marketing there can be excessively high costs involved in segmenting markets because of necessary adaptation to local markets’ specific needs and demands Actionability is the degree to which effective programs can be formulated for attracting and serving the segments

The STP approach of market segmentation:

Pricing Components of Price Policy:  Price  Rebate  Payment conditions  Credit The essential issue is the relationship between the price which is charged for the product and the quantity demanded at this price point by the market: Normally, the higher the price the lower the demand for the product and vice versa. - Pricing is a means of communicating the value of an offer to a potential buyer - Pricing is a competitive tool - Pricing can be used to position the product or service in the marketplace Factors affecting the price decisions:

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Pricing Methods:

Determining the break even point

Competitor-oriented Pricing Going-rate Pricing: 12

Marketing Exam Prep In this approach, the firm bases its price largely on competitor’s prices. In oligopolistic industries that sell a commodity such as steel, or paper, all firms normally charge the same or a similar price. Competitive bidding: Many contracts are won or lost on the basis of competitive bidding. The most usual process is developing a detailed specification for a product and putting the contract out to tender. Potential suppliers quote a price that is confidential (sealed bids). All other things being equal, the buyer will select the supplier that quotes the lowest price.

Static and dynamic pricing

Market-skimming pricing is a strategy with high initial prices to “skim” revenue from the market - Product quality and image must support the price - Buyers must want the product at that price - Costs of producing the product in small volumes should not eliminate the advantage of higher prices - Competitors should not be able to enter the market easily Market-penetration pricing sets a low initial price in order to penetrate the market quickly and to attract a large number of buyers to gain market share - Price sensitive market - Inverse relationship of production and distribution cost to sales growth - Low prices must keep competition out of the market

The 4Ps of Marketing (Marketing Mix)  putting the right product, at the right price, at the right place, at the right time

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Marketing Exam Prep

What is marketing? Marketing is the philosophy of creating and satisfying the customer’s needs. When customers’ needs change, the companies need to changes as well because only satisfied customers will come bac, buy again and recommend to others.

Most important questions when launching a new product:    

What is my target market? What is market volume? What is market potential? What is my market share?

Difference between Business and marketing plan The business plan and marketing plan are interdependent and must be consistent with one another. The business plan identifies the goals and missions of the business, while the marketing plan explains how the business will achieve, if not exceed, those goals and missions.

Why is it important to build long-term relationship with customers?  Huge impact on profit because loyal customers are buying again and again

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Marketing Exam Prep Other important topics

Creating Customer Value

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