Executive Summary
Herbal-care soap, a new product in the market is expected to do better than the existing products. This product cures and prevents the transfer of communicable diseases. The product is natural and chemical free, unlike the other products, which contain chemicals that have side effects to consumers.
The recent researches show that more people die of communicable diseases than those who succumb to cancer and AIDS combined. The existing products cannot absolutely eradicate the spread of communicable diseases, and hence the need for Herbal-care soaps. The recommended psychographic and demographic target markets for the product are discussed in the paper.
Herbal-care soap
Description of the new product
Herbal-care soap is a natural, chemical-free soap that cures and prevents infections of communicable diseases. This soap improves the health of consumers and reduces illnesses caused by germs. The demand for chemical-free soaps is high at the moment considering that the state has reported many death cases caused by communicable diseases. According to researchers, the number of people dying of communicable diseases is more than those who succumb to cancer and AIDS combined (Webber &Roger, 83).
Therefore, there is a great need for products with capabilities of curing and preventing illnesses caused by germs. Herbal-care soaps will be packaged using special materials with instructions and clarifications. This will guide consumers about its use. Marketers will offer Herbal-care in liquid and solid form, depending on customers’ preferences. They will also be packed in different sizes, consisting of different colors depending on their tastes. This will ensure that no one is left out.
Why the new product is better than the existing products in the market place
Herbal-care is a new product in the market. It is very different from the existing common soaps which are synthetic, and contain chemicals that have side effects to consumers. In addition, Herbal-care focuses on a niche market, unlike the existing soaps which do not specify where, how, why, and who should consume them. As mentioned earlier, the soap prevents and cures people from infections of communicable diseases.
People in the state want to live healthy and hence the demand for disinfectant soaps. The current soaps in the market cannot absolutely eradicate the spread of communicable diseases, and hence the need for Herbal-care soaps. This product offers a high quality value alternative compared to the existing hand and body washing compliances. The uniqueness of Herbal-care makes the soap to gain a competitive advantage over the existing soaps.
The products will be offered at a slightly lower price than the existing products, and hence high likelihood of the product to grab the market share of the competing products in the market. The sales of the product will be higher than those of the existing related products considering that it is made specifically to satisfying the needs of the target audiences. The other competing products do not follow the niche marketing strategy, like Herbal-care soap. This makes it gain a competitive edge after its launch.
Recommendations for demographic target market
The infection or transfer of communicable diseases is very common in day cares, hospitals and restaurants. Shaking hands and exchanging toys among other activities in day-care encourage the transfer of bacteria or viruses among them. There are 800 day cares in our region, and hence provides a good market for Herbal-care soaps.
In some Australian hospitals, patients share beds, bathrooms and latrines. All these contribute to the transfer of communicable diseases from one person to another. The restaurant guest rooms, bathrooms, tables and seats are associated with bacteria or viruses due to frequent contacts with many different people. Friends and families also shake hands when they meet in restaurants.
The transfer of communicable diseases is common, and hence the need for Herbal-care soap. Most people in day cares are children aged between 4 and 9 years in Australia. In hospitals, people of all ages and from different social class happen to fall sick are taken there to receive treatment.
The same case applies to restaurants. All people are welcome in restaurants irrespective of their ages, social classes, races among other things. Therefore, the final recommended demographic target markets are children aged between 4 and 9 years in day cares, families with a yearly household income of $40,000 and above, as well as patients of all age groups at hospitals in Australia.
Recommendations for psychographic target market
Considering that the country has experienced high rates of people dying of communicable diseases in the recent past, many people are keen on taking appropriate measures to guard themselves against these diseases (Webber &Roger, 83). Most people, particularly from high social class have a tendency of using chemical-free soaps to live healthy lives. Most of these people have a tendency of using natural, non-chemical disinfectants.
In other words, they are loyal to chemical-free products for their hand and body wash. They believe that chemical-free products can make them live healthy lives. For instance, they fear communicable diseases and try as much as possible to isolate themselves from people appearing unhygienic. Therefore, the final recommended psychographic target markets for Herbal-care soap are the royal or high social class families which believe in hygiene as a way to curb communicable diseases.
Final recommendation for the target market
Understanding demographic and psychographic markets can help marketers to efficiently understand their target audiences, and hence offers goods and services that meet their needs (Kurtz & Louis, 292). They can market, advertise and sell products and services to them easily.
After carefully researching demographic and psychographic markets, it was realized that children in day cares, patients, and health care workers are the most affected by communicable diseases. Restaurants employees and customers are also victims of the diseases caused by germs transfers. As aforementioned, the shaking of hands and exchanging of toys among other activities in day-care encourage transfers of bacteria or viruses among individuals. The children in baby cares are aged between 4 and 9 years.
The transfer of communicable diseases is also common in hospitals and restaurants due to sharing of beds, sinks, and hand & body contacts with different people. Many people particularly the royal or high social class are very keen on preventing themselves from communicable diseases. Herbal-care soap, a natural and chemical-free soap happens to meet these needs. These individuals have a tendency of using chemical-free disinfectants which are very expensive.
They also isolate themselves from the other social classes due to beliefs that they might transfer bacteria and skin illnesses to them. If provided with Herbal-care soap, they will become loyal to the product because it meets their needs. Therefore, the final recommended target markets for Herbal-care soap are high social class adults, and children aged between 4 and 9 years in day cares.
The estimated size of the target market
There are more than 800 day-cares, 1200 restaurants, 1000 hospitals, and 200,000 family homes in the target region. The high social class people are around 3 million out of 10 million people in the region. The number of potential customers estimated for Herbal-care soap is 5 million. The estimation of annual consumption of Herbal-care soap is 20 units, and the average selling price is $50. Therefore, the estimated size of the target market is 5 million multiplied by 20 multiplied by $50. This is equivalent to $5000 million.
Summary
The target market arose due to high demand for disinfectant products by the target audiences. As aforementioned, researches indicate that many people have died of communicable diseases in the recent past. The number of people suffering from skin illnesses has not reduced yet and hence the need for appropriate products to cure and prevent the vice. Researches were conducted to see which people are more affected by communicable diseases.
This involved researching both psychographic and demographic markets to find out audiences who demanded products to prevent the spread and cure communicable diseases. This way, it was easier to understand customers’ needs from different markets. After assessments and evaluations, the right market for Herbal-care soaps was found, and hence the rise of the recommended market.
To get the size of the potential market, market researches were conducted in psychographic and demographic markets. This way, people of high social class were identified as the most potential customers for disinfectant products. It was also realized that children aged between 4 and 9 in day cares were prone to communicable diseases due to frequent hand shakes and exchange of toys in day-care centers.
The average number of units for one year was estimated. The potential customers (children and high social class adults) were also estimated. Then, marketers came up with the price for Herbal-care soap. To get a clear estimation of the potential market, the marketers multiplied the price by the number of units by the estimation of the potential customers (Ajami, 171). This enabled them to realize the potential market for Herbal-care soap.
Works Cited
Ajami, Riad A. International Business: Theory and Practice. Armonk, N.Y: M.E. Sharpe, 2006. Print.
Kurtz, David L, and Louis E. Boone. Boone & Kurtz Contemporary Marketing. , 2014. Print.
Webber, Roger, and Roger Webber. Communicable Diseases: A Global Perspective. Wallingford, Oxfordshire, UK: CAB International, 2012. Print.