Strategy and Positioning Analysis Part 1

SWOT ANALYSIS 6

Analysis of the Product

The product that will be analyzed is called ‘TOO FACED' which is a longer lasting eye shadow which is made from various fruit fragrances and botanical garden. This product is different from most of the eye shadows found in the market as it has a good scent which very important and it comes in various shades depending on the preference of the consumers. The product will be analyzed further through the use of SWOT analysis (Besanko, 2010).

Strategy, Targeting and Positioning Model

This model has three main steps that we can use to analyze the new product we wish to sell to the consumers and communicate its benefits to them. Therefore, we have to segment the market, target the best customers then position the product (Close, 2014). This model comes in handy as it can help us identify the most valuable customers then develop products and messages of marketing that suit the customers. It also enables us to engage the groups in a better way while personalizing the messages and selling the product.

Segmenting the market

This is needed so as to divide the customers into groups of people with common needs and characteristics. It can also enable us to tailor the approach of meeting the needs of each group in a cost effective manner (Hill, 2008). Most importantly, it can give us a great advantage over the other competitors who use the approach of one size fits all. We will hence segment the target market into the following way.

Demographics

The first segment will be made up of young college girls who are mainly interested in looking beautiful and getting attention from their colleagues. The second segment will be made up of women in the working class or stay at home women who want to look fabulous while at work and still pull the professional look. The third segment will focus the older people who want to still look stylish and young and believe in the power of making a statement with their eyes (Mital, 2006).

Targeting the best customers

This will involve working with the most attractive customers since we have already selected the segments. We have to consider how profitable the chosen segments are and which of the customers can contribute more to the bottom line of the organization. We also have to analyze the size and the potential growth of the customer groups (Besanko, 2010). Of great importance is also the question of how the organization will service the selected market. For instance, based on the analysis conducted the organization has discovered that the first segment can offer then $ 400,000 the second $350,000 and the third $ 250,000 and so it should focus more on the first segment as the segment is big enough to make more profits.

Positioning the product

The goal here is identifying how we should position the product so as to focus on the customer segments that are most valuable. Our organization markets itself as the best eye-shadow company for young women in college. Besides that, it hosts a number of competitions in the social media and billboards and so this is contributing to the product reaching its desired market as these are sources that people love (Hill, 2008). In addition to that, it asks its customers to send beautiful pictures of their results after using the product. To make the product even more attractive the organization presents a price of an entire eye-shadow kit to the winning picture hence motivating more consumers to purchase the product. With the pictures, the organization could build the adventure make-up mailing list and create a monthly e-newsletter full of results of the people that used the product hence presenting an opportunity for growth for the organization.

With product positioning, the organization will be able to fight the market competition of the product which is a threat to the business. The fact that the eye perfecto product will come in different fragrances makes it distinct from the similar products offered by the competitors. Besides that through taking the products to the identified segments, we can get to know what features of the product needs to be improved to perfect it from the competitors and get the attention of the customers. This will hence give us a competitive advantage as we are aiming for the large portion of the total share market which is the young college women (Close, 2014).

Strengths

As earlier stated, the fact that, the organization offers an eye shadow brand with various fragrances can get it a lot of sales (Mital, 2006). In addition to that, its marketing strategy which enables the organization communicate with its customers makes it an exciting brand for its customers who want to be appreciated once in a while.

Weaknesses

Since the organization is new, it has not quite yet diversified in offering various beauty products as most competitors and so most customers want to know what else they could get. In addition to that, there are still few employees and the same employees who work in sales department work in marketing and so they end up mixing some concepts which is not working well so far. They are mostly tired to even advertise hence reducing the customer influence of the brand (Hill, 2008).

Opportunities

Market penetration is a great opportunity to grow as the aggressive marketing efforts the organization is using proves to be increasing the sales. It is also attracting the competitors' customers who feel that our product is different (Close, 2014). Besides that, the market development is also a good opportunity as it is increasing the sales of the product where the product is being introduced to new markets through advertisements.

Threats

The biggest threat is the competitors especially the well established brands lie Revlon and so shifting the focus of some customers is quite a task especially those who always want to stick to one brand. Besides that, there are competitors that offer organic eye shadows and the consumer trends show that they are shifting towards such products (Besanko, 2010).

References

Besanko, D. (2010). Economics of strategy. Hoboken, NJ: John Wiley & Sons.

Close, A., O'Guinn, T. C., Allen, C. T., & Semenik, R. J. (2014). Advertising and integrated brand promotion.

Hill, C. W. L., & Jones, G. R. (2008). Strategic management: An integrated approach. Boston: Houghton Mifflin.

Mital, K. M. (2006). Strategic Management: An Integrated Approach.Management & Change, 10(2), 244-247.