Ph 61 2 8937 0506 9633 3287 the company would like to

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Foundations of Business
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Chapter 13 / Exercise 020
Foundations of Business
Hughes/Pride
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Ph: 61 (2) 8937 0506 & 9633 3287 The company would like to add more products over time and is focussed on a range of products to meet particular skin needs rather than a one-size fits all. Market research has identified that around 70% of customers are professional women aged 25 to 55. The current strategy of the company as identified in its latest Marketing Plan is niche marketing to the target group based on positioning the products as high quality and eco-friendly. The prices of products are slightly higher than major competitors. The company is in a strong financial position as shown in its Business Plan and has a budget of around $50,000 for marketing for the next financial year. The company is interested in expanding overseas. Research, for example, has identified that Japan may represent a good opportunity for the company as it has been identified there are good opportunities for products made from natural ingredients. Regarding the company’s current promotional activities, successful promotional activities have been advertisements on the Australian body + soul web site and in the Natural Health magazine. There have also been in-store promotions with the focus on high quality products for women. The management team of NatureCare Products has advised that its primary marketing objectives are: Increase the number of people who make a purchase while visiting the online store by 20%. Increase the number of retail outlets selling NatureCare Products by 150. To increase product awareness amongst the target market by 20%. To increase market share to 15%. To expand into at least one international market. To identify new products and new markets. To attain annual growth of at least 10% over the next three years. Regarding market trends, health warnings, environmental concerns, ethical concerns, therapy awareness and organic attitudes have all contributed to the growth in popularity of natural-based personal care products. It is predicated that natural/organic skincare, hair care and cosmetics sales will continue to grow strongly in the retail sector. Cosmetics in general are also still growing strongly. Currently the business is selling its products through a number of retail outlets throughout Australia, mostly health food stores. It also has a web site with a shopping cart and approximately 30% of sales are sold through the web site. The company is reasonably happy with sales through the web site but would like to do more in the future, for example, through reviewing search engine optimisation, to use social media, as well as national and local business networks such as the local Chamber of Commerce to generate sales. With regard to the marketing of NatureCare Products, the current marketing mix for products is as follows: Current Pricing Strategy: Offer quality products at a premium price Current Promotional Strategy: Previously relied on web site only. A Facebook page has now been established. Also sending out a monthly newsletter, as well as blogging to improve SEO. Current Distribution Strategy: Offer products via online shop and in stores across Australia, mainly health food stores. Issue date: 01/05/19 Page 10 of 19
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Foundations of Business
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Chapter 13 / Exercise 020
Foundations of Business
Hughes/Pride
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