BFK0019 Understanding Markets and Consumers Assignment Sample 2024
Introduction
Generating insight into understanding markets and consumers is essential towards engaging in sustainable business operations in the competitive market. This brings about an understanding regarding customer purchase behaviours and marketing strategies adopted by potential competitors towards establishing a strong customer base. Understanding the market, both in terms of competitors and competitors, helps in establishing a successful business. This furnishes the edge of bringing about creative innovation of the product line along with improving services in accordance with the customer expectations and market trends. In this sense, the ensuing report is an individual portfolio for Gillette in terms of its heated razors product to launch in the UK market. In accordance with an analysis of the internal and external environments involving the UK market, the report would involve formulation of business and marketing objectives for Gillette. It would also cover critical discussion regarding the marketing communication strategy to achieve the identified outcomes along with shedding light on the overall desired outcomes of the campaign.
Overview of the Organisation
Figure 1: Gillette Products Ranked by UK Users
(Source: Influenced by Statista, 2020)
Gillette tends to be among the largest brands with global presence that aims at extending its sustainable shaving and skin care range of products. The products brought about in the market by GilletteLabs contribute towards rendering a kind experience to the skin and the planet (Gillette, 2021). Headquartered in Great Britain, the brand incorporates cutting edge technology for engineering its product range in terms of rendering a precision shaving experience. Gillette possesses an annual turnover rate of 28.4M GBP with a net asset of 56.4M GBP (Duedil, 2021). Gillette is engaged in constant adaptation of the design of its product range in accordance with advancing technology. The brand maintains a team of grooming experts along with online advisor tools that engage in delivering custom styling tips and product recommendations (Gillette, 2021). GilletteLabs ensures making sustainable products for self care with respect to ensuring being kind to the skin.
Overview of the Product
Figure 2: Heated Razor by GilletteLabs
(Source: Influenced by Gillette, 2021)
The innovative Heated Razor product by GilletteLabs involves catering to customer expectation of experiencing a smooth, delicate and relaxing hot shave at home convenience. It incorporates a FlexDisc technology that tends to ensure effective covering of every facial crevice and contour and thereby contribute towards providing a comfortable shave through softening of facial skin and hair (Gillette, 2021). In addition to luxurious warmth of a hot shave, the product maintains a complete waterproof design along with being effective to be accessed in the sink or shower. Technological sound Heated Razor product comes around with a rechargeable facility along with featuring a warming bar made of stainless steel (Gillette, 2021). The bar is positioned below five blades that help in providing a warming sensation. The device includes four heat sensors operating through a FlexDisc technology that enables users to switch amidst two district heat levels.
Analysis of the micro and macro environment
Market size
In accordance with the beauty industry of UK, it has been recognised that the total sales of beauty have been identified as £ 394 Billion. Furthermore, in the year 2019, it has been identified that the number of individuals employed was around 2.9 million. Simultaneously, it has been also recognised that the total number of VAT-registered beauty industry owners in the year 2019 was 208, 760. Furthermore, the total amount of GDP generated by the beauty industry has been 5% (STATISTA, 2021). This indicates that the beauty trade industries of UK initiate to contribute significantly to the growth of revenue as well as profitability.
Market growth
Beauty Industries aims in including all the key activities that significantly involve selling goods and services to the consumers for their non-business and personal usage. Furthermore, it has been identified that the directionality of UK’s beauty industry is spreading from the UK to us and also to the rest of Europe (DIVA PORTAL, 2021). Most of the geographical market scope of UK’s beauty industry can be identified to be beyond the national markets. It has been also viewed that the independent beauty have remained as one of the integral parts of UK’s beauty landscape which has contributed to adding local flavours to the town centres as well as high streets. The context of market segmentation refers to the wide variety of processes as well as methods that do not exist on the basis of universal agreement and at the same time precisely entail the practices. The business firms are further segmented based on the geographical area with respect to the demand for commodities and services (Dolnicaret al. 2018). This aspect is also known as the “the Finnish market”. It is further recognised as a distinct group of productive as well as profit making enterprises that help in gaining competitive advantage.
PESTEL Analysis
| Factors | Impact |
| Political | ● UK government was able to ensure maintenance of stability in terms of political factors with respect to good relations existing between monarchs and Queen Elizabeth II.
● The impact of the “No- Deal Brexit decision” has led to severe consequences on the basis that the referendum would enhance profitable techniques for the beauty industry positively. |
| Economical | ● Decrease in the value of inflation from 2.0% to 1.7% has led to profitability for organisation in earning revenue (STATISTA, 2021).
● Reduce corporation tax by 19% as one of the significant factors in terms of development of business with respect to market share in UK (STATISTA, 2021). |
| Social | ● Mixed population within UK is helpful for organisations in engaging diversified preferences from the customer end.
● Population within UK is recognised to be 66.8 million as per the reports of 2019 which would help in understanding the ratio of potential customers for the business. |
| Technology | ● UK is regarded as a gigantic hub of technologies that aids in facilitating key opportunities for the purpose of evolving and receiving advancements.
● Emergence of e-commerce websites would aid organisations in expanding further which can impact the firm in a positive manner. |
| Environmental | ● Application of effective norms complying with “Environmental Protection Act 1990 (cth 79)” would guide the firm in determining management of waste products and reduce carbon footprints. |
| Legal | ● UK firms are required to follow legal frameworks such as “Employment Rights act 1999 (c.18)” in order to work in a legal as well as ethical manner.
● Policies in terms of legal prospects guides the beauty industries radically in order to treat workers equally irrespective of their cultural background. |
Table 1: PESTLE Analysis
(Source: Inspired by Perera, 2017)
Analysis
From the PESTLE analysis, it can be recognised that UK government was able to ensure maintenance of stability in terms of political factors with respect to good relations existing between monarchs and Queen Elizabeth II. The impact of the “No- Deal Brexit decision” has led to severe consequences on the basis that the referendum has led to enhance profitable techniques for the beauty industry positively. In alliance with the economic factors, it can be recognised that reducing corporation tax by 19% as one of the significant factors in terms of development of business with respect to market share in UK. Gillette can stress on launching its innovative product of Heated Razor in the UK market at a price of £140. This can be productive for the brand to secure its future revenue growth through an estimated 20% and an average value order of online sales to around £65 per customer. Population within UK is recognised to be 66.8 million as per the reports of 2019 which would help in understanding the ratio of potential customers for the business. UK is regarded as a gigantic hub of technologies that aids in facilitating key opportunities for the purpose of evolving and receiving advancements. Emergence of e-commerce websites would aid organisations in expanding further which can impact the firm in a positive manner. Brand awareness on grounds of Gillette is a trusted factor with its global presence and extensive market value. Product awareness can be expected to increase by 30% concerning its innovative product of Heated Razor can be achieved through integrated promotional campaigns in addition to word-of-mouth recommendations. Incorporation of PR activities and providing real life experiences of customers through social sites can be of added advantage for Gillette. Gillette can stress on engaging in effective customer segmentation and targeting on grounds of demographic and psychographic factors. This can be beneficial for the brand to focus on potential customer segments and enhance customer growth. Application of effective norms complying with “Environmental Protection Act 1990 (cth 79)” would guide the firm in determining management of waste products and reduce carbon footprints. This would aid the business to address the aspects of Corporate Social Responsibility. UK firms are required to follow legal frameworks such as “Employment Rights act 1999 (c.18)” in order to work in a legal as well as ethical manner. On this note, policies in terms of legal prospects guide the beauty industries radically in order to treat workers equally irrespective of their cultural background.
Customer analysis
GilletteLabs aims to focus upon customers belonging to each and every group of customers belonging to each and every age group. The business mostly aims to target male customers within the area of demographics.
Competitor analysis
The beauty industry of UK is considered as a broad industry that includes diverse kinds of organisations falling under this category. According to Liu et al. (2019), organisations in the beauty sectors aim in selling a wide range of products to consumers and businesses. The key competitors of Gillette are Custom Shave, Edgewell. Dollar Shave Club and BIC. Moreover, with reference to the beauty industry, the fashion industry can be regarded as one of the key competitors. Other than this, it has been also stated that beauty also plays an integral role in contributing towards the GDP growth of UK.
SWOT analysis
| Strengths
● Incorporating with Procter & Gamble and ensuring orientation of strong research. ● Consistent innovation acts as a core strength of the brand. |
Weakness
● Lack of proper customer awareness. ● Products are of high price. |
| Opportunities
● Scope for new services which can satisfy growth needs. ● Propensity to spend has enhanced their impulsive spending. |
Threats
● Pressure from key competitors such as Dollar Shave Club as well as Unilever. ● New products find it difficult in creating customisable business framework. |
Table 2: SWOT Analysis
(Source: Gillette, 2021)
Analysis
Generating insight into understanding markets and consumers is essential towards engaging in sustainable business operations in the competitive market. This brings about an understanding regarding customer purchase behaviours and marketing strategies adopted by potential competitors towards establishing a strong customer base. The key strength of the business is consistent innovation. However, the business is recognised to find threat from new products and find it difficult in creating customisable business framework. Gillette tends to be among the largest brands with global presence that aims at extending its sustainable shaving and skin care range of products. The products brought about in the market by GilletteLabs contribute towards rendering a kind experience to the skin and the planet.
Marketing Objectives
Figure 3: Marketing Objective Metrics
(Source: Inspired by Leonidou and Hultman, 2019)
SMART OBJECTIVE 1: To determine strong digital marketing and social media platform
| Specific | ● To make usage of effective opportunities in reaching out to potential customers. |
| Measurable | ● To increase the average value order of online sales to around £65 per customer. |
| Achievable | ● To determine achievement of online revenue contribution of 20% |
| Realistic | ● To solve the challenges faced due to lack of adequate brand awareness. |
| Time Bound | ● To achieve the objectives within a time period of two years. |
Table 3: SMART OBJECTIVE 1
(Source: Created by Author)
SMART OBJECTIVE 2: To ensure the creation of a customer centric process of business.
| Specific | ● To assist the business for aligning the products as well services in terms of customer demands. |
| Measurable | ● To improve customer natural search results to 94% clicks. |
| Achievable | ● To determine achievement of usage of search engines by 64%. |
| Realistic | ● To address the challenges posed due to improper and lack of adequate advertisements. |
| Time Bound | ● To achieve the objectives within a time period of three years. |
Table 4: SMART OBJECTIVE 2
(Source: Created by Author)
Analysis
Objectives are established on what a business is trying to achieve. On this note, it is required to be on the basis of organisational strategy and alignment with corporate vision, values and mission. Allan (2017) stated that leaders as well as the managers required to get in the process of establishing relevant objectives, this is because inadequately designed goals might cause conflict and lead the whole business in the wrong direction. Through the help of Smart Objectives, Gillete makes usage of effective opportunities in reaching out to potential customers. SMART Objectives aims to assist the business for aligning the products as well services in terms of customer demands. The objectives aim to address the challenges posed due to improper and lack of adequate advertisements.
Critical analysis of marketing communication strategy
Figure 4: Promotional Mix
(Source: Inspired by Grewal and Sridhar, 2021)
Advertising
Advertising is accounted as one of the key elements of promotional mix. Bentley-Goode et al. (2017) stated that advertising is regarded as a means of communication with respect to users of a product or services that ensures involvement of tactics in creating brand awareness as well as brand reputation. In the case of Gillette Labs, advertising would play an integral role which would furnish the scope for enhancing sustainability and market share.
Personal Selling
Personal selling is considered as the technique of face to face selling through which an individual makes usage of interpersonal skills and attributes for the purpose of persuading a customer in order to buy a particular product (Cammilleri, 2018). In the case of Gillette Labs, personal selling might emerge as an efficient approach in terms of attracting customers and making them aware about the key details of the product.
Sales Promotion
Sales promotion is accounted as a short term incentive in initiating trials as well purchases through the usage of media along with non-media communications of marketing in terms of predetermined time frame. This would enhance consumer demand and enhance the availability of products (Dolnicar et al. 2018). In the case of Gillette Labs, sales promotion would aid in the stimulation of immediate sales along with enhancing brand awareness.
Public Relation
Public relations are regarded as a function of management which aids in establishment and maintenance of mutual relationship along with communication between a business and its publics. Gillette Labs can ensure the establishment of public relations which would understand the purpose of the product and its relationship within society. It is asserted as a planned as well as sustained activity in products along with key policies.
Analysis of the Overall Outcomes
Figure 5: Desired Outcomes of the Campaign
(Source: Created by Author)
Sales Revenue/Profit
Gillette can stress on launching its innovative product of Heated Razor in the UK market at a price of £140. This can be productive for the brand to secure its future revenue growth though an estimated 20% and an average value order of online sales to around £65 per customer Nijssen, Guenzi & Van der Borgh (2017) noted that besides the complementary practices of customer acquisition and retention, distinct approach of sales capability furnishes the scope for enhancing sustainability and market share.
Sales Leads
Gillette can emphasise improving customer natural search results to 94% clicks followed by determining achievement of usage of search engines by 64%. Enhancement of sales can be met through incorporation of strategies in terms of advertising, personal selling, sales promotion, public relation and direct marketing. In the case of Gillette Labs, advertising would play an integral role which would furnish the scope for enhancing sustainability and market share.
Number of New Customers
According to Ballestar, Grau-Carles & Sainz (2018), commercial activities of customers serve as essential factors for segmentation and targeting. On this note, Gillette can stress on engaging in effective customer segmentation and targeting on grounds of demographic and psychographic factors. This can be beneficial for the brand to focus on potential customer segments and enhance customer growth by 40%. In the case of Gillette Labs, personal selling might emerge as an efficient approach in terms of attracting customers and making them aware about the key details of the product.
Brand Awareness
Brand awareness on grounds of Gillette is a trusted factor with its global presence and extensive market value. Product awareness can be expected to increase by 30% concerning its innovative product of Heated Razor can be achieved through integrated promotional campaigns in addition to word-of-mouth recommendations. Incorporation of PR activities and providing real life experiences of customers through social sites can be of added advantage for Gillette. In the case of Gillette Labs, sales promotion would aid in the stimulation of immediate sales along with enhancing brand awareness.
Conclusion
Effective research and development in understanding the market and customers leverages the scope of establishing strong customer relationships in addition to increasing profitability through positive recommendations. Gillette is engaged in constant adaptation of the design of its product range in accordance with advancing technology. Through analysis of micro and macro factors, it has been deduced that the key strength of the business is consistent innovation. However, the business is recognised to find threat from new products and find it difficult in creating customisable business framework. Gillette tends to be among the largest brands with global presence that aims at extending its sustainable shaving and skin care range of products. The products brought about in the market by GilletteLabs contribute towards rendering a kind experience to the skin and the planet. GilletteLabs ensures making sustainable products for self care with respect to ensuring being kind to the skin. Through the help of Smart Objectives, it has been deduced that Gillete makes usage of effective opportunities in reaching out to potential customers. Hence, analysing the overall outcomes along with shedding light on the marketing communication strategy would be productive for Gillette to ensure sustenance of its new product in the UK market.
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