Overview
This case analysis illuminates the main marketing issues involved subsequent to the launch of a beauty product called Oral Daily Facials (ODF). The beauty product is manufactured by Proctor & Gamble.
Main Marketing Challenges
Stiff competition from Dove and other entrants ranks as the topmost challenge for ODF subsequent to launch. The next big challenge for ODF entails a lack of a clear strategy to identify the product’s target market. The third challenge revolves around a lack of strategy to position ODF according to current market needs. Further afield, ODF has to overcome the challenge of coming up with the best advertising strategy that could be used to reach the intended target. Lastly, ODF must overcome the challenge of coming up with the right aspects of the marketing mix. Apart from the competition, this analysis will address all the other concerns (segmenting, targeting, positioning, advertising, marketing mix).
Segmenting the Market
Consumers of ODF can be grouped in terms of demographic segmentation, which uses variables such as race, gender, income, employment status, and age. Olay products (bar soaps, body wash, and facial cleansing) are used more among women of Caucasian (White) origin. The products are used more by high-end clientele, although usage in other income categories can be described as fair. In terms of employment status, ODF has customers in both the employed FT and unemployed spectrums. However, ODF appeals more to women in their middle ages (35-44 years) upwards, though its optimal usage is found among the elderly women (65+ years) who want to keep their skin young.
Targeting
Drawing from the above segmentation decisions, it is clear that ODF should target white women in their middle ages upwards. These women may be employed or not, but the focus of targeting should be firmly grounded on race and age. This segment has been selected based on (1) product usage data, and (2) customer needs and expectations. In product usage data, it is clear that ODF has found wide usage among women of Caucasian origin than it has among Black and Hispanic Women.
In customer needs and expectations, it may be that ODF is used more by White Women due to their skin nature, which requires a product that combines cleansing, toning, and moisturizing capabilities. Additionally, more women of Caucasian origin may be interested in the cleansing cloth owing to the fact that their skin tends to age at an earlier age and at a much faster rate. More importantly, the segment is sufficiently heterogeneous in preferences, identifiable and competitive. Other segments (Black and Hispanic women) are rejected based on low usage and the fact that their skin may not require a product with these capabilities.
Positioning for the Target Segment
To position correctly for the target market, ODF should underscore the following dimensions: product attributes, product effects, user, and relation to other products. The product must stress that its ingredients have the capacity to restore inner beauty among middle-aged and elderly women and that the product’s effects can only be positive compared to other products, which may have adverse effects on users. The rationale for underscoring these dimensions is grounded on the understanding that women in these age categories may be selected based on the fact that they have adequate spending power and are independent.
Additionally, ODF must position itself as a product that achieves optimal results when used by White women in these age groups to give it a sense of uniqueness and particularity. Lastly, ODF must position itself in relation to other products (Dove and other new entrants) to fend off competition and sustain market share among the target segment. As such, the positioning statement should be “ODF: Dream to reclaim your Youth through Facial Cleansing Technology.”
Advertising Strategy
Based on the targeting and positioning decisions, the advertising plan should include the use of mature and beautiful Caucasian women as well as older women in the 50+ age range. The underlying objective of the advertising strategy should be to demonstrate that middle-aged and elderly women can have the capacity to reclaim their skin tone and beauty upon the use of ODF. The budget should be pegged at $80 million to ensure that the advertising campaign achieves long-term effects through the use of multiple media. In a creative message, the content should demonstrate the effectiveness of ODF in reclaiming beauty, while the appeal should be sexual in nature.
Additionally, the tone of the message should be reassuring, while the emotional component should appeal to the consumers’ sense of beauty. The advertisements should be channeled through television and print media (beauty magazines) in order to reach a wider audience. Lastly, the advertising campaign for ODF should relate to the overall umbrella position of the Olay brand by virtue of broadening opportunities for beauty enhancement.
Recommended Marketing Mix Decisions
Other marketing mix decisions that should be adopted include product policy, pricing policy, as well as promotion policy. The overall strategic rationale for these decisions revolves around reducing switching to other popular brands such as Dove and improving the retention of current customers. These marketing mix decisions are discussed as follows:
Product Policy
- Ensure the diversification of ODF into a range of products to cater to different age groups (middle-aged women and the elderly
Pricing Policy
- Ensure ODF is fairly priced to retain target users who may be unemployed.
- Develop a premium ODF product for the high-end consumer market
Promotion Policy
Ensure heavy investments in promotional activities with the view of retaining current customers while attracting new ones.