I select Oil a Olay brand for which I feel loyalty. I need a four page paper. An
ID: 467789 • Letter: I
Question
I select Oil a Olay brand for which I feel loyalty. I need a four page paper. Analyze how you became loyal to the brand. This brand should include research and references from academic journals as it pertains to market segmentation. Next, go to the company web site and research the brand. 1. What types of segmentations strategies has the brand undertaken over the years to maintain and extend its appeal to the consumer? What type of market segmentation are they using? Who is their target market?
2. As a conclusion, explain how the company research may or may not have helped you better understand why you are loyal to the brand. In APA Style format.
Explanation / Answer
Marketing strategies of OLAY to build relationships with customers and make them Brand loyal:
Finding the Target Market:
In order to serve the different age group, the company has segmented the market & then created a promotion mix, which suits the each segment. E.g. Anti-ageing products
Brand Positioning:
For young adults the same brand (different variety) has to be positioned as oil which instantaneously hydrates to reveal glowing, radiant skin with antioxidants, and for older adults it has to be positioned for e.g. anti-ageing properties, dark circle reduction etc.
Sub segmentation:
As per skin type e.g. oily skin or dry skin
Facial concerns e.g. dark spots or fine lines
Usage e.g. night cream or daily moisturizer.
Marketing mix:
For determining the brand offer, proper definition of the four Ps: price, product, promotion, and place is required
Price: as per the market competition (which is higher at young adults segment), the price has be medium to low (daily useage). For adult segment, the price can go to a bit higher (depending upon the benefits & add ons e.g. spot reduction etc.)
Product: the product has to be unique and with different packing and packaging (as per the segment). E.g. classy red and white combination packaging for expensive varieties etc.)
Promotion: the promotion has to be unique to each segment. Offers like Buy $ ** worth of this beauty product & get $** cash back etc. Club (OLAY) membership to the returning customers
Place: the people need to know about the product via pamphlets etc. along with its positioning in the shelves of supermarkets / stores, which are easily visible to the young ladies as well as the older adults, is required. It should be available in the medical shops to reinforce its medical positive effects.
Marketing satisfies the need which is created by a Marketing itself (of a new product). It plays with the mind of the consumers in order to induce the requirements (created) or fill in for the requirements the consumer already had, but failed to be fulfilled due to lack of technology (at that time).
Once the product is new and marketed well, it directs finds loyal customers (due to less or no direct competitions or alternative products). If late entrant, the product needs to boost with its unique or better combination, in order break and penetrate the earlier competitor customer base.
The first entrant has an advantage of open market but late entrant has an advantage of not making the customer aware of the basic product, but only its superiority over the already existing one. Both need to keep on bring new improvements to the same product and then either kill the earlier brand / variety or add variety (e.g. original and with added aloe vera) therefore keeping the loyalty of the customers.
Olay has followed all the above in order to keep the loyalty of the existing customers