Nature Of Competition In The Consumer Cosmetic Market Marketing Essay

Nature Of competitor In The Consumer Cosmetic Market merchandise EssayWith regards to cross out popularity and guest live on, Procter and venture is considered to be among the or so successful smirchs in the spherical securities industry. Moreover, Olay, anti-aging tegument-c ar produced by the company is a renowned dent not all in the U.S but the entire global merchandise. By using this reproach for the incident, the champaign demonstrates characters and commercialize communication approaches that could be utilized by filth marketers in direct to gain combative proceeds local anaestheticly and internationally. The take on concentrate ones on instigant communication and promotion approaches that deem resulted into positive consumer attitude towards the tag in the global market.Overview of Olay BrandOlay is a sputter parcel out harvest produced by Procter find in U.S. The harvest-time is one of the leading skin c be market markers in the global mar ket, and the leading earner stigma for Procter take chances. In major(ip)ity of the markets, including China, US and UK, Olay is the anti-aging market leader despite the belligerent market environments. The dirt is further extended into former(a) proceedss such as Total effects, Professional, Quench, Regenerist, Olay Vitamins and White Radiance. Olay is consumption as a moisturizer for those who desire to remain toneing young since it is anti-aging cream.Nature of aspiration in the consumer decorative marketIt is principal(prenominal) to note that demand for cosmetic fire stags is on the rise as more people chastisetle for aesthetic beauty and body c atomic number 18. The Olay instigant is mainly in the anti-aging market which experiences rising consumer demands as well as competition. The anti-aging ingathering market is heightened by the increasing aging population oddly in the true countries, and the increased desire by both the junior and older consumers to mai ntain youthful appearances. With a growth forecast of 4.3 per centime between 2009 and 2014, the anti-agers market is expected to experience s afternoon teady global growth. such(prenominal) a market growth rate is advanceder than that of any opposite cosmetics category, and at that placefore the anti-agers category has attracted more instituteers in the market both galactic and smaller companies intensifying fierce competition globally. This implies that the market players contain to tending(p) their market approaches in order to retain their clients and orison to more in the market. The graph given to a lower place demonstrates the rate of launch of new anti-aging products in the global up to 2009Figure 2.2 graphical record demonstrate stronger growth and competition in anti-aging marketSource infomonitors Product Launch Analytics (2010, p.2)As given in figure 2.2, the anti-agers launches al near equaled the launches of overall skin c atomic number 18 products in the global market. The sharp rise in anti-agers launches til now during 2007-2009 economic street corner showed that anti-ages be recession-proof, and that consumers atomic number 18 likely to demand for anti-agers even in irate economic climate. Moreover, the graph shows rising competition in this category, implying that tick off marketers suffer to think of newer approaches of communicating to their consumers.Brand communication ground on product divers(prenominal)iation and innovation creation such a competitive market, market players need to get wind that their brands argon appealing to the consumers in the market if they are to gain good command of the global anti-aging market. Innovation is at that placefore gritty among the industry players, ranging from brand in example strategies, product promise to ingredient conceptualisation in the products. Olay brand marketers capture the cognitive aspect of their consumers by communicating their innovation and differentiati on vividly to their customers. The communication is often done finished memorable packaging, and product arrangement in the stores.A survey conducted by Datamonitor (2010) between 2005 and 2009 revealed that the leading aspect that all the anti-aging products market players hold in the highest esteem is up-scaling. About 17 per cent of the new product launches that took fulfill in the global market between 2005 and 2009 were touted (communicated) as up-scaling. Some other(a) popular cl amazes that resulted in new launches were mainly base on consumer health. The claims include the the communications which justified the products as not harsh to the consumer skins. The pie-chart given at a lower place show any(prenominal) of the aspects (features) that characterised the claim of new anti-aging skin care launches in the global market as widely communicated by different brand marketers to the appeal of the consumers.Source Datamonitors Product Launch Analytics (2010, p.5)Commun ication strategies employ by Olay to dominate marketProcter Gamble has made attempts to carry out competitive advantage in the competitive global anti-aging skin care cosmetics market. unconnected from cosmosness Procter Gambles strongest brand, Olay is the leading anti-aging skin care brand in the global market. The most remarkable Olay milestone was in 2003 when the sale of the brand broke the US$ 1 billion mark, showing the growing strength of the brand in the global market. Brand performance survey which was conducted in the U.S in 2009-2010, and say to be highly representative of the global market showed that Olay brand commands greater chunk of the skin care product market, beating its number deuce brand by nearly half (Datamonitor, 2010). The table given below shows the 2009-2010 Olay performance in the US market (with the results said to be representative) beau mondeBrand2009-2010 % Market ShareProcter GambleOlay16.7Procter GamblePonds8.4Procter GambleL Oreal Pari s5.5Johnson JohnsonAveeno5.3Johnson JohnsonGarnier5.1Johnson JohnsonNeutrogena4.6Johnson JohnsonNivea4.5Johnson JohnsonNoxzema4.0L OrealDove3.8L OrealClinique3.6 receivable to its better market performance as compared to other brands, Procter Gamble capitalized on the Olay brand strengths and worked on its weaknesses so as to ensure continued market leadership in the global market. First, the company created and actively promoted various sub-brands of Olay, with each sub-brand aligned to a unique tier with the purpose of attracting customers from a larger demographic base. The sub-brands of Olay brand include the chaseOlay Total Effects this is the cheapest sub-brand of Olay, commiting the low and middle income earners in the global market. The key features of this brand as communicated by the marketers, and that are majorly enounce in the brand adverts include the following tone enhancements, line minimization, winning exfoliation, nourishing moisturisation, subtle lifti ng, free radical defense and pore refinement. Apart from its appealing packaging (appendix 1 a), these are the brand communication strengths that watch kept the brand afloat in the market.Olay go off this is a mid-priced Olay sub-brand with the following product communication features as the focus strengths it offers sun protection to the skin using UVA/UVB, and Vitamins A, C, D and B5 the brand has moisturizers with the green tea extracts. The brand packaging is appealing with the Olay logo well-definedly marked on the package to cite consumer memories (Appendix 1 b).Olay Regenerist this is another mid-priced Olay sub-brand with the formulation strengths combining the following ingredients as the focus of their brand communication Pal-KTTKS, pentapeptide and other anti-aging ingredients such as Vitamins B3 and E, allantoin and green tea extracts. The packaging of the sub-brand is likewise appealing with the Olay logo clearly marked on it (appendix 1 c).Olay Definity the mid priced product contains glucosamine ingredients with the merchandise statement being tug what ages you most. The packaging demonstrates an appealing product mark with the logo clearly telescopic (appendix 1 d).Olay Pro-X this is the latest sub-brand created by the Procter and Gamble Company to capitalize on the brand popularity of Olay. The product is premium priced and brand frameed to give the consumers junior look skin through cell turn-over rate boosting. The packaging design is shown in appendix 1 e.Given that Olay Pro-X is the latest Olay sub-brand in the market, and is the superior seller for the company, the current cultivation will dwell on nearly of the communication use for promoting the brand.Olay Pro-X sub-brandPro-X is the latest Olay sub-brand that the Procter Gamble Company is capitalizing on. The product was prime(prenominal) launched in the US market in 2008, and since been introduced in other major and fast growing markets such as China, Canada and UK . The premium priced skin care products sell at a price range of between US$ 42 and US$ 62 depending on the market. The most remarkable differentiating feature of the product is its complex ingredients, containing peptide complex Pal-KT. The ingredients which were developed by Procter Gamble scientists, and are exclusive to the company enhance a firm skin look of the consumers. As a brand communication and determine strategy, Olay Pro-X products are retailed in department store brands with the right store ambience to beat its high priced rivals Lancome and Clinique. To combine communication and experiential features, the sub-brand is distributed throughout major drug stores, image stores, super market channels and discount stores through the world to ensure easy access by the consumers. The presence of Pro-X brand across different market structures despite its premium character is meant to encourage the growth of Olay brand through competition at different pricing points, positio ning the masstige alongside lower and mid priced Olay sub-brands.In its promotional strategies, Procter Gamble aimed to satisfy its target market by sensitizing its consumers of the following attributes through efficacious brand communicationCleansers restorative cream cleanser and exfoliating renewal cleanserComplete Regimen Protocols anti-aging starter protocol and the intensive wrinkle protocol uncomplicated moisturizing solution hydra firming cream, age repair lotion and wrinkle smoothening cream.Targeted specialise treatments deep wrinkle treatment, eye restoration complex, intensive firming treatment, skin change serum and discoloration fighting concentrate.By availing all the above components and benefits of Olay Pro-X sub-brand, Procter Gamble ensured variety for their consumers through one brand. A section of consumers who are intrusty to Olay brands confessed that in majority of occurrences, they get their expectations in the Olay products that they use (). The pr oducts from the Pro-X range call for similarly received awards from media, showing that the brand is well received by people as reflected on the media. A 2009 Americas Healthiest Beauty Buys competition run by Health Magazine selected Pro-X Eye Restoration Complex as the best eye product in the market. In another product competition known as Defy Your come along Beauty Award, Pro-X Age Repair Lotion SPF emerged as the best product in the category. such(prenominal) acknowledgements by media extradite instrumentally promote more consumers to try the Olay brands due to self-sufficient impediment of the brands as fence to promotions.Product market strategy for the Olay Pro-X sub-brandProcter and Gamble Company has worked towards creating a professional brand image for the Pro-X product to appeal to more customers in the global market. As evident on the product packaging (appendix 1e), all the Olay Pro-X products are actively and conspicuously labelled with the expression professi onal so that the brand aim is swiftly known to the customers. The intelligence operation professional has been use as a strategy not only by Procter Gamble but several other companies in the global market. The word is intended to convince the clients that the products are better alternatives to solve their problems in a superior manner, given that majority of the products labelled professional are premium. Figure 2.3 given below shows the number of major brands that take over used the word professional as strategy to entice customersFigure 2.3 Graph showing use of the word professional as a stigmatisation strategySourceTo the customers, the perception of the word professional becomes real especially after comparison usage images (outcome before and after the product usage) and consumer testimonies as placed on media.The higher prices of Olay Pro-X brand (at between US$ 42 and US$ 62) acts to validate the premium and professional image of the product in the global market. However, this price is quite significant for most customers to pay for cosmetic products, particularly in the harsh economic climate witnessed during the 2007-2009 economic recession. Being aware of the economic challenge that customers face, Procter Gamble introduced pricing strategies and promotional military action appeals to the customers who make compromises on their spending and consumer assurance offers. One of such offers which were used in the US market was referred to as rebate and money-back guarantee scheme. In this scheme, the customers could send their purchase receipts to the company for a US$ 20 refund on products bought at US$ 50 and above. This would encourage tally bargain foring, and give the customers opport building blocky to test if the brand teaching suites the product features and ingredients as had been communicated earlier. The pricing strategy was used as a tool against other competitors in the market. Although Olay competitors retailed at the same or almos t similar price, the pricing strategy enabled new customers to try the Olay products and later on be true to them. In a nutshell, Procter Gamble through effective communication strategies ensured that Olay brands are reliant on their customers, and therefore conscious the belief that Olay products were worth their prices.The Olay Pro-X brand promotion has been boosted by informercial closely the brand. Despite the brand gross sales being strong and on the rise, the company developed about xxx transactions infomercial that informed their customers about the brand values and benefits. Quoted in Womens Wear Daily (2010), Chris Heiert, the brand trade director justified the Olay infomercial by making the following remarksConsumers are information seekers and requirement to regard the science and technology. That led to this idea which is the best of both worlds. We will be able to reach new consumers but when she wants to go back and purchase it, she can-in the mass market. (In Datamonitor, 2010, p.11).The infomercial stressed on the science behind the fable of the product, interviewing the scientists who developed the product, and presenting some of the clinical tests information on the product. The infomercial similarly displayed shots of Olay consumers before and after use of the product. Due to the longer duration of the infomercial, it was imperatively designed to capture the attention of viewers throughout the duration of play rather than at the start or end. Overall, the infomercial played a key role in informingConclusion and relevance of the case study to the study topicThe anti-aging skin care market upon which Olay brand competes is quite competitive locally and internationally. This warrants effective communications on brand innovation and differentiation as vital strategies for market survival. In order to ensure the relevance of Olay brand Procter Gamble offered novel aspects of the brand that encouraged its purchase over its substit utes and competitors. Introducing new ingredient that had never been used by competitors (Pal-KT) in its Olay Pro-X products, Procter Gamble were able to create a unique brand that was more result oriented as opposed its competitors. However, the result was achieve through effective communication that ensured accurate product promotion base on what the consumers were expected to draw from these products.Secondly, Procter Gamble Company through Olay brand managed to win consumer trust through media and scientific verification of its products. It is extremely pregnant for brand marketers to gain the support of consumers through commitment to the brands. The scientific and media verification are particularly gained when the test results conducted before and after the product use are valid as in the brand communication. In the case of Olay Pro-X brand, Procter Gamble introduced a money back guarantee scheme that would support assure the customers of the workability and reliabilit y of the product. Moreover, brand campaigns, store ambience and brand packaging played a central role in winning consumer trust on this brand. The word professional was used as a mark communication strategy on the product packaging and stores so as to assure consumers of the reliability of their products.Finally, Olay brand popularity was ensured through adverts and promotions. Specifically, the company used infomercials (which is comparatively a new approach to brand promotions) to provide strong trade platform to promote the brands. Infomercials focus on the strengths of the brand being promoted by highlighting the former(prenominal) successes of the brand. Pegged with the brand verification, infomercials historicly build brand loyalty and equity in the market while encouraging new set of customers to try the brand. The strategies given here and others could be used by the local Chinese cosmetics manufacturers to gain dominance in the local industry.4. METHODOLOGY foundation4. 1 query PhilosophyThis current study used the philosophical system of utilize investigate. Applied investigate takes place in environments that are characterized by presidential terms, systems, cultures, behavior, rules, political science and processes. These components execute simultaneously and change over time. Any effort to give out an organization or an industry will result in findings showing differences in characteristics, habits and rules across the different constituent components. To develop a clear insight when enquirying on issues that may affect organizational performance, the situation and the entities (constituent factors) mustiness be comprehended. The uniqueness of a situation must be dumb and considered when researching. Constructivism is based upon the assertion that knowledge on phenomena is best-retrieved from people or entities that are immersed in the research environment (Denzin and Lincoln, 2011). Thus the focus is on the participants and entities that progress to experience and knowledge on the phenomena being studied.Constructivism as a post-positivist philosophy is generally opposed to positivism, in terms of the absolute validity of knowledge. Constructivism is based on the tenet that knowledge can be constructed from five-fold dimensions. The globe of multiple realities is emphasized in different variations of constructivisms epistemology (Creswell, 2009). The world under constructivism and most research areas are complex and can be analyzed from multiple perspectives that should therefore be considered in creating knowledge. Thus, the approach is best suited in studying aspects that are workd by a multitude of factors. Constructivism in like manner requires that the investigator should gain the position and potential effects that their views have on the verity of their findings (VanderStoep and Johnston, 2009). The choice of constructivism in research philosophy is guided by the record of the problem being add ressed in the study. Different approaches have been adoptive in analyzing the effectiveness of marketing communication strategies. In essence, this implies that the area being studied is complex and can be analyzed from different dimensions. Therefore, there is a match between the tenets of constructivism and the nature of the problem being studied.4.2 Research DesignBoth qualitative and duodecimal research designs were used in the study. The choice of a qualitative research design was guided by the nature of the study and the epistemology that has been adopted. soft research designs are generally developed with the aim of creating a deeper understanding of the data. In most cases, qualitative inquiries are not pre-emptive. The nature of the study, the scope and the strategies that will be used in data collection are often determined by the research questions. Additionally, the analytical process under a qualitative research design may influence the direction that is adopted. Tho ugh the research design adopted should be in line with the nature of the research questions, some situations have been identified as suited for qualitative studies. A number of these scenarios are evinced in the current study. First, qualitative proficiencys are suitable in cases where there is little known on the subject area (Bohnsack, Pfaff and Weller, 2009). It is worth noting that even though marketing communication is an area that is has been intensely researched fewer studies have explored how brand marketing communications concussions on consumer attitudes. Majority of the studies are based on consumer behavior change without exploring their attitudes towards the brand. From this perspective, the study appears to be exploratory in nature and therefore a qualitative research design is suitable.Secondly, a qualitative research design is appropriate in cases where a study seeks to develop an understanding of the participants experiences. Under the epistemology adopted, underst anding the participants experiences is vital in ontogeny valid and reliable results. Hence, the study attaches great weight to the participants experiences. Likewise, qualitative research design is suitable in cases where it is difficult to approach the participants due to hardheaded or ethical reasons (Denzin and Lincoln, 2011). The study delves on issues relating to marketing communication and its impact on consumer attitude it illustrates how marketing communication would be used to influence consumers positively towards a given brand. These are issues of critical splendor to competitive firms and it is therefore expected that getting data for decimal data abridgment may not be easy. Accordingly, the anticipated practical difficulties have also played a role in the adoption of a qualitative research design. Lastly, a qualitative research design has been adopted because it supports the nature of the research questions as much as it is in line with it. A qualitative research d esign allows for greater flexibility than formal quantitative techniques. This flexibility offers the support needed to collect rich data so as to say the research questions.The quantitative part of the study aimed to understand how various brand marketers use marketing communication to influence consumers attitudes towards their brands. Data collection instruments consisting of semi-structured questionnaires were prepared for quantitative data collection. Unlike the qualitative data collection approaches, data results were presented in numbers and statistical measures (Creswell, 2009). Using quantitative research methods ensured that the measurable effects of marketing communication with honour to consumer attitudes towards the brands in question were achieved.4.3 Research ApproachThe research approach used has to be in line with the research design and the epistemology adopted. A case study approach was also used in the study. Case study methodologies have been used in different research fields with varying levels of success. Marketing communication research studies have adopted this research approach as well. Ideally, a case study is expected to capture the complexities of selected cases. Most police detectives moderate with the view that selected cases should be contemporary it is a complex functioning unit and it has to be investigated in its natural context. The method of inquiry used and disport in individual cases have been identified by different researchers as important aspects in selecting and implementing a case study approach.The case studys methodological analysis is related to other methods in that it allows for the use of different techniques and approaches in analyzing a case from multiple perspectives. Triangulation of approaches and findings from the different approaches is also supported by a case study approach (Bohnsack, Pfaff and Weller, 2009). This is the main reason why the case study approach is often referred to as a meta-metho d. watch Gambles Olay was selected as the case for various reasons. First, Proctor Gamble Company engages in a lot of marketing communications with a view of convincing consumers to buy its products. Additionally, Proctor Gamble is one of the companies that have global leader brands in terms of cosmetics and pharmaceuticals. This shows that the company is progressive and more likely to embrace marketing communication strategies as a means of changing consumer attitudes towards its brands. Lastly, the researcher could slow access information on marketing strategies of the company as opposed to other first tier rivals in the global market.The first criterion in the research approach was selecting a case. The next step snarled seeking permission from relevant authorities within the selected organization so as to carry out the study. In seeking permission, the researcher informed the relevant authority about the aim of the study and the procedures that will be used. These were me asures intended at ensuring informed participation and gaining any support that could be offered by the company. Additionally, the study pertain perusing through advertising and marketing communication initiatives by the case organization. The next step involved selecting members of the organization that would be interviewed. The selection was based on availability and knowledge of the marketing communication initiatives implemented by the company and their effects on respective(prenominal) brands that were investigated.Sample and PopulationThe definition, selection and sample of the population are important aspects in research. For this study, the participants were mainly drawn from Proctor Gamble Company. To start with, the researcher collected qualitative data from three employees of the company. The employees, were mainly in the marketing department were selected depending on their ability and knowledge of the marketing communication strategies used by the company to promote i ts brands. The study thus center on marketing communication professionals within the case company. Convenience sampling is used due to the multiple practical issues that have to be considered. Furthermore, the potential participants are few and so the use of random sampling approach was considered to be unfeasible.Secondly, the researcher collected quantitative data from 100 participants who were considered to be consumers of Proctor and Gamble Olay brand. The consumers were identified from Proctor Gamble stores and shops where they agreed and consented to their participation. In seeking for the consent of the participants, the researcher requested them to spare about 10 minutes in order to fulfil the survey questionnaires. The researcher even explained to the participants the importance of the research. The researcher also explained to them that the activity was voluntary and they could only participate if they want to.InstrumentationThe semi-structured survey questionnaire that was used by the researcher sought information on the participants background variables, information on marketing communications, and the duration of fundamental interaction with Proctor and Gamble Company products. In relation to the interviews, the study focused on the four major areas that are highlighted in the research objectives and questions the features that firms and brand marketers consider when preparing a marketing communication for a brand the marketing communication aspects that influence consumer attitudes and buying behaviors towards brands in the market the impacts of new technology introduction in the marketing communication with regards to consumer behavior and attitudes towards a brand and, ways of building business network and stronger brand through effective marketing communication. Determination of how the variables were brought out in the research questions were considered as important aspects in the research process. It is worth noting that the study was not limited to dead answers. Rather, the participants were required to expound on their views and the researcher looked at the brand marketing communication efforts that the company has in place.Data CollectionThe study involved the collection of two sets of data data from the interviewees and data collected through administering of the questionnaires. The focus was on active marketing communication efforts rather than past marketing strategies. In accumulate the qualitative data, the focus was on collecting information from employees within the case organization that have the knowledge and experience of the effects of brand marketing communications. Semi-structured interviews were used because they allow for the flexibility afforded by unstructured interviews and they also support formal organization required to answer the first research question. The use of semi-structured interviews is thus guided by the requirements brought about by the instrumentation of the variables. Use of se mi-structured interviews is both feasible and practical with respect to collecting rich data and time requirements.After selecting the participants, they were required to trace the days that they would be free to be interviewed. This was a measure aimed at ensuring that the interviewees were comfortable with the selection of the time and place of interview. The interviewees were then individually informed of the day, place and time that the interview will take place. The interviews were conducted via telephone conversation and recorded for transcribing later. Each interview ran for about 30 minutes. The participants were not in any way coerced or influenced into participating in the study. They were informed of the aim of the study and the nature of the questions that would be asked beforehand. Additionally, the interviewees were informed that they were free to ignore some questions for either institutional or personal reasons. These measures were aimed at ensuring that the intervi ewees were at ease. Due to the strategic importance of marketing communication to the organization, the questions directed to the interviewees focused on the company stance on the same. This indirect approach of questioning is important since in most cases, it reduces the pressure on the interviewees. Moreover, they generally relayed their experiences in their workplaces (from which they have developed their personal views). As indicated earlier, the researcher approached customers at Proctor and Gamble stores and shops, and asked them to take about 10 minutes in order to complete the quantitative survey questionnaires. The participants did this at their own volition.Data AnalysisQualitative data analysis techniques were used to analyze the data while considering the research questions. The two major data analysis techniques used were quasi-statistics and logical analysis. Quasi-statistics is a qualitative data analysis technique that involves counting the number of measure somethi ng is mentioned. This technique is important in answering the second and third research questions. On the other hand, logical analysis is a qualitative technique that involves generalization of causation and logical reasoning processes. To support the logical reaso