Question 1: Marketing Problems

New products ensures that a firm survives and grows but marketing of such products can be very risky (Odoyo, Wanza and Mumbua 2014, p.185). When launching its brand, a challenge that EverGlad Bodycare will face is lack of knowledge and proficiency in marketing. Given that both Ann and Oliver lack marketing experience, they will not have sound knowledge of the demands and wishes of buyers, competition, the potential of the market, price sensitivity, and behaviour of buyers (Odoyo et al. 2014, p.185).

Another problem, which may result from this, is ineffective launch of the products. Success of any new product requires solid and properly targeted launch. If not done properly, the siblings will be unable to define the unique benefits of their products. This may prevent EverGlad Bodycare from gaining a substantial share of the market and hider the generation of profit.  Ann and Oliver may also fail to continually assess the new products for efficiency, use pattern and reduction of the associated risks.

To solve these problems, EverGlad Bodycare owners must invest adequately in market research processes. This will improve their understanding of ways to make new products successful in the market. The research and development (R&D) department is crucial for this. Establishment of the department within an organisation promotes product development and innovation (Odoyo et al. 2014, p.185). The siblings should then develop clear market strategy for their products to enable product development. Ann and Oliver should also find ways of gaining business and marketing experience.

Westman, Sowyrda and Malhotra (2018, p.3) indicated that in order to increase value for the company, the chief executive officer should ensure continuous focus on needs of target customers and alignment of overall company functions to achieve customers loyalty. The business/marketing knowledge gained by the siblings will also enhance their ability to check on clarity, execution and measurement of sales plan (Westman et al. 2018, p.4). It is the owners’ duty to ensure needs of customers are properly understood, marketing strategy creates/sustains competitive advantage, and functions of the company are integrated to work effectively.

Question 2: How to segment the market

EverGlad should segment the market on behavioural basis. The primary reason why the brother and sister chose the product line was the realisation that buyers demanded products that are safe for both users and the environment (Earth). It is, therefore, important for them to determine the accuracy of their observation. In other words, they need to know consumers’ reaction to their products. Behavioural market segmentation seeks to identify brand interactions as well as purchasing and spending habits of consumers.

Knowledge of consumers’ attitudes concerning consumption of the product, usage or intention to use, and responses to the new product enables establishment of market segments (John, Horsefall and Sunny 2016, p.57). The market can, thus, be partitioned based on the times customers wish to buy, when they make actual purchase, benefits that push consumers to the products, and level of loyalty.  These will enable EverGlad owners to measure customer satisfaction, purchase pattern, and retention potential. This will also enable identification of adaptive strategies that are based on consumers’ actual features (John et al. 2016, p.58). EverGlad can then find ways of utilising such opportunities.

Question 3: Roy Morgan’s value that this brand appeal to

There are two value segmentation procedures of Roy Morgan that fit EverGlad Bodycare. One is psychographic, which concentrates on lifestyle preferred by target customers (Abell 2010). This defines the central idea upon which EverGlad Bodycare is founded. That is, Ann and Oliver selected a line of products that will offer consumer satisfaction and preservation of the environment. The main goal of EverGlad is, thus, to meet needs of buyers through products that match their lifestyles.

Behavioural value segment is also important to the brand as it concentrates on response of consumers to given product choices and factors that influence buyers’ decisions (Abell 2010). Before identifying the opinion of consumers, adequate information about the new products should be availed. The most reliable places to collect data on attitude of buyers is to check for the reviews on websites and blogs. Brand loyalty is very vital in this category. It informs the establishment of purchasing pattern of customers in the market.  

Question 4: Targeting strategy

Nadube and Didia (2018, p.33) argued that targeting necessitates recognition of value requirements that buyers prefer most in a given segment. Market segment analysis plays a key role in this area by providing the information for examining current and potential targets of the market. Given that EverGlad Bodycare already has a list of products to sell, the best strategy is to target frequent buyers. Lynn (2011, p.262) explained that a small proportion of heavy users can purchase significant proportions of a product.

The major task is discovering ways of making the frequent buyers loyal to the brand. Loyalty programs have often been used to make heavy users of company products respond positively. Although the reward programmes have little contribution on overall purchase frequency, they enable a firm to identify most frequent buyers (Lynn 2011, p.263). The strategy makes loyal customers reachable and easy to share marketing messages with. Therefore, a key advantage of the targeting frequent customers is that it minimises marketing expenses.  

Question 6: Competitive Advantage

The competitive advantage that EverGlad Bodycare should establish is differentiation. As indicated in the scenario, the company’s focus on best and safest natural ingredient causes the manufacturing investment to go high. The new products must, thus, be sold at relatively higher prices, at least until the firm can produce in large scale. This means that EverGlad cannot operate with cost leadership.

The best way to run the business is to adopt differentiation strategy. This involves producing and supplying high-quality products. EverGlad should consider branding process to create its marketing identity and differentiate the products, to enable trust-based establishment of brand name (Chege 2018, p.24). It should also select a niche where it has exclusive access to essential resources. Densely populated areas are preferable. Competitive advantage may also be maintained through use of resources that are valuable yet rare and limitable. Successful differentiation will create an opportunity for the company to set premium prices on products by reducing competition.