Introduction
Background information
According to a survey conducted by the US Commercial Service (2013), the global cosmetic market has a very high potential. For example, the annual demand for beauty products in Australia is estimated to be $1.5 billion. However, consumption of cosmetic products is expected to increase in the future. The growth will emanate from the high rate at which the male and female genders are attaching value to personal appearance. The report further asserts that consumers have become more conscious of personal wellness. Therefore, they are seeking cosmetic products to prolong their youthful appearance (US Commercial Service 2013). The trend within the cosmetic market presents a unique business opportunity to firms within the industry. Ultraceuticals is one of the cosmetic firms that operate in Australia. In a bid to exploit this market opportunity, firms within the industry should integrate effective marketing strategies. Such a move will enhance the firms’ a competitive advantage. One of the aspects that Ultraceuticals should focus on relates to integration of e-commerce. The firm can achieve this goal by incorporating the most effective web technologies.
Aim
This report evaluates how Ultraceauticals can apply web technologies in order to develop its competitiveness.
Traditional marketing strategy
Ultraceuticals Pty Limited recognises that its success is dependent on the effectiveness with which it creates market awareness for its products. In a bid to achieve this goal, the firm has formulated a comprehensive market awareness strategy. However, the firm over-relies on traditional market awareness strategy. For example, when launching new products, the firm organises private events and invites renowned guests and beauty media firms to endorse the firm’s products. This aspect is well illustrated by the recent launch of the CC range of Powders and Cream products. During the event, the firm invited Sydney’s beauty media for a morning breakfast during which it launched the products (Torstar 2013). Despite the firm’s success in the Australian market, its reliance on events in its marketing processes limits the number of potential customers who access new product information. As a result, the likelihood of the firm increasing its customer base is adversely affected.
Application of web technologies
Integration of mobile applications and e-CRM software
Currently, the web presents an exclusive opportunity to firms in their quest to interact and connect with their target market. According to Allen, Kania, and Yaeckel (2001), online web technologies have made it possible for firms to undertake one-on-one marketing. Moreover, innovations with regard to web technology have enabled firms to personalise their marketing processes. In an effort to improve its competitive advantage, Ultraceuticals Pty Limited should integrate emerging web technologies. One of the technologies that the firm should focus on includes mobile applications. According to Zhou, Dai, and Zhang (2007), consumers are increasingly integrating technology in their consumption processes. Zhou, Dai, and Zhang (2007) are of the opinion that most consumers are adopting a technology-oriented view in their purchasing processes, which has been made possible by the high rate of Internet penetration in most economies.
In an effort to exploit the opportunities presented by the Internet technology, retailers have developed various mobile applications that have made marketing more effective and efficient. Consequently, it is imperative for Ultraceuticals to integrate mobile marketing application and to achieve this goal, the firm should invest in research and development aimed at developing a unique mobile application. The firm should ensure that customers are in a position to download and install the application in their smartphones.
According to a report released by Berg Insight (2013), the number of mobile applications that customers have downloaded has increased significantly over the past few years. In 2010, 10 billion applications were downloaded through various mobile platforms (Berg Insight 2013). This number is expected to increase in the future considering the high rate at which consumers are purchasing smartphones. It is estimated that 100 billion mobile applications will be downloaded by 2015 (Berg Insight 2013).
Ultraceuticals Limited can take advantage of this trend by ensuring that its mobile application is compatible with the smartphones being developed. The firm should ensure that customers are in a position to download the application without incurring any cost. By ensuring that the mobile application is designed effectively, the firm can capitalise on the consumers’ consumption behaviour with regard to the Internet. One of the ways through which the firm can use the mobile application is by posting its cosmetic product and the relevant product information. Some of the products that the firm should ensure that customers access through the mobile application include product prices, the ingredients used in making the product, and the benefits of using specific cosmetic products. Such product information will enable customers to make an optimal decision on the most appropriate cosmetic product from the firm.
Ultraceuticals Limited should also ensure that the mobile application provides consumers with an opportunity to interact with the firm and other consumers. The firm can achieve this goal by integrating effective networking capability. Currently, consumers are increasingly spending a significant amount of time on various mobile applications. Through such capability, Ultraceuticals will be capable of accessing market feedback that it can leverage on in its product development and marketing processes. This issue arises from the fact that consumers will be in a position to share their opinion regarding the firm’s products with their colleagues.
In a bid to improve its effectiveness in managing customer relationship, the firm should integrate e-CRM software. The e-CRM software will enable Ultraceuticals to be effective in managing its web-based customer interaction. For example, the firm will automate call logs and the customer’ emails. Consequently, customers will be in a position to receive an immediate reply on their requests, which will lead to the development of a positive attitude amongst consumers towards the firm. Moreover, the firm will be capable of developing a better understanding of its customers. The customer information generated through the e-CRM software will enable Ultraceuticals to develop a database that the firm can use to personalise its product and service delivery. Interacting with customers leads to the development of a high level of customer loyalty.
Target customer group
In the course of developing and integrating the new mobile application and the e-CRM software, the firm will target both men and women who are technologically well informed. One of the main reasons why the firm should target women as the main customer group relates to the fact that they constitute the largest proportion of consumers. Silverstein and Sayre (2009) assert, “Women represent the largest market opportunity in the world” (p.2). Despite this aspect, only a few firms are exploiting this market opportunity.
Moreover, the firm’s decision to target women in designing the application arises from their consumption behaviour. According to Silverstein and Sayre (2009), women are the greatest drivers of the global economy. Currently, women control approximately $20 trillion of the total consumer spending annually. This figure is expected to increase to $28 trillion by 2014 (Silverstein & Sayre 2009). Additionally, their total annual earnings are expected to increase to $18 trillion. Consequently, their average purchasing power will increase substantially.
According to Berg Insight (2013), women are the largest consumer group with regard to beauty products. It is estimated that approximately 86% of all women use various skin care products. Their motivation towards make-up usage varies. For example, some women feel more confident by wearing various skin care makeup while others use the products in order to improve their self-image. Women spend a substantial amount of their income on beauty products.
The firm will also target the male gender in the course of developing the new web technology. According to Silverstein and Sayre (2009), men are increasingly consuming cosmetic products, which show that cosmetic products are no longer a preserve for women. Skin care products constitute the largest category of cosmetics that men are incorporating in their cabinet. However, the usage of cosmetic products amongst the male gender is mainly prevalent amongst the youthful males. Despite this aspect, it is imperative for Ultraceuticals Limited to ensure that men are aware of the new mobile application. This move will increase the probability of the firm attracting new customers thus increasing its sales revenue and hence its profitability.
Creating awareness and satisfying information needs
Creating sufficient market awareness regarding a particular product and service is paramount in ensuring that a product penetrates the market. According to Pride and Ferrell (2006), market awareness plays a vital role in stimulating primary demand of a particular product. This assertion arises from the fact that consumers become aware of the products availability in the market. As a result, the consumers are encouraged to try the product.
Upon developing the new web technologies, Ultraceuticals Limited should ensure that sufficient market awareness is created by undertaking a comprehensive social media campaign. The firm should ensure that social media campaign goes viral and to achieve this goal, the firm should conduct the social media campaign on various social networking sites such as Twitter, You Tube, Facebook, LinkedIn, and Google+. For example, the firm can create simple videos and post them on You Tube, which will provide consumers with an opportunity to learn how to use the mobile application (Pride & Ferrell 2006).
Incorporating social media in creating awareness plays a critical role in creating a buzz regarding a product or service (Pride & Ferrell 2006). As a result, a large number of consumers will be stimulated to download the application through their smartphones. Therefore, the likelihood of a large number of cosmetic product consumers using the application in searching for information regarding their favourite cosmetic products will be increased. In the quest to meet the customers’ information needs, Ultraceuticals should design a blog that should be used in providing additional information regarding the new web technologies to customers. Currently, consumers are increasingly searching for product information from the Internet. Therefore, it is imperative for the firm to take advantage of this consumer behaviour. The firm should also ensure that the blog is attractive and interactive to create information to a large number of customers.
Stimulating purchases and harnessing the web technologies
In the process of developing the new application, Ultraceuticals should integrate online shopping capability. Currently, consumers are increasingly incorporating online shopping in their consumption processes. This trend has arisen from the fact that online shopping is very efficient and to increase the volume of online purchases, Ultraceuticals should ensure that customers do not pay more by using the application. For example, the firm can integrate free shipping services to all cosmetic products purchased online through the mobile application.
It is also important for the firm to ensure that the customers’ personal and payment details are not compromised because of using the mobile application and the e-CRM software. To achieve this goal, the firm should ensure that the two web technologies are configured and implemented effectively. Moreover, adequate security measures should be integrated in the web technologies in order to curb hacking and other forms of cyber crime.
Conclusion and recommendation
The report shows that Ultraceuticals can enhance its competitive advantage by integrating web technologies. The firm should leverage on emerging Information Communication Technologies such as mobile applications and the e-CRM software. Through these technologies, the firm will be in a position to market its cosmetic products to a large number of customers. Additionally, the two web technologies will enable Ultraceuticals to develop a high level of customer loyalty. Therefore, the likelihood of the firm maximising its sales revenue through the two web technologies is enormous. However, the firm should take into account the following aspects:
- The firm’s IT department should ensure that the web technologies are effectively designed in order meet the desired objective.
- Effective security measures should be integrated in order to safeguard the company and the customers.
Reference List
Allen, C, Kania, D & Yaeckel, B 2001, One-to-one web marketing: Building a relationship marketing strategy one customer at a time, John Wiley, New York.
Berg Insight: The mobile application market. 2013. Web.
Pride, W & Ferrell, O 2006, Marketing: concepts and strategies, Houghton Mifflin Company, Boston.
Silverstein, M & Sayre, K 2009, ‘The female economy’, Harvard Business Review, vol. 2 no. 3, pp. 1-10.
Torstar: Events; Ultraceuticals. 2013. Web.
US Commercial Service: Cosmetics. 2013. Web.
Zhou, L, Dai, L & Zhang, D 2007, ‘Online shopping acceptance model; critical survey of consumer factors in online shopping’, Journal of Electronic Commerce Research, vol. 8 no. 2, pp. 41-66.