Marketing management project

bhagya_84in

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I am looking out for sample project of launching a new store called Barnes and noble in India. Its basically a huge book store... if any one can help.
 

shrey38

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I am looking out for sample project of launching a new store called Barnes and noble in India. Its basically a huge book store... if any one can help.
 

abhishreshthaa

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The “Alternative” Marketplace: Marketing Wellbeing​


Question One

Conduct an environmental analysis for the alternative health industry in Australia. What environmental changes are occurring in the market that may influence the alternative health industry? What changes are likely to occur over the next five years? Conduct a SWOT.

The ‘Alternative health industry’ in Australia is growing at a faster pace leaving the traditional medical practice behind as consumers are more aware of natural or holistic health therapies, due to no side effects and changing needs and different attitudes towards life. Not only people in Australia but also people around the world are following holistic health approach therapy giving more satisfaction depending on the needs of the consumers.

In Today’s changing environment people are much concerned about their health, quality of life, and alternative options which are available in the market. In other words consumers are shifting themselves towards naturopathy and aromatherapy health treatments, reason being there has been increasing percentage of people who value physical fitness on top of their priority list.


Demographic environment

Marketers should keep a track of changing demographic trend like increasing population which is an important factor in the alternative health practices therapy creating a demand for their products as people are getting older and would be looking for health treatments. We can categorize the age group 25-45 years old, 46-57 years old, and above 57 depending on the individual needs like professionals/busy executives might look for relaxation therapy to get rid of stress through spa treatments. Australia has an ageing population (Australian Health department 2007) so people who are getting older may have different needs as suffering from any health problems like pain in bones and if they are not satisfied with scientific practice then they could look for other alternative health methods.


Economic environment

The growth rate for alternative health usage is growing 30 percent per year and this is more significantly experienced in the retail sectors as reported by (Nicholas, 2005) in the case study. The implication of this trend is that demand is likely to increase and consequently the number of retailers will also be expected to increase in order to cope- up with the increasing number of consumers in the alternative health industry.

Closely linked with the above usage of alternative health among Australians, there is more than half of the population as reported in the case study. Interestingly, this proportion is spending $1billion in the alternative health industry. The issue here is if they are able to spend this amount of money now, what will happen in the nearby future as the population is growing and saving at the same time. This therefore, will be providing more opportunities for investment for those who are already there in the industry.

Social cultural environment

The proportion of 60 percent of the population reported in the case sturdy is an indicator signifying the shift from the traditional use of science and medicine to naturalness provides an opportunity for more investment in the alternative health sector. Spiritual fulfillment is notably one of the factors cited in the case study that Australians desire for quality of life and wellbeing. Closely associated with the above factor they point out the willingness to spend more money on relaxation and this is the reason why 60 percent of the Australians are using alternative health care.

Alternative health changes in the next five years

• As a result of more people preferring alternative health there will be a declining demand for the traditional main stream medicine.

• Because the industry is growing with already half the population using alternative health more suppliers are likely to enter and competition will be unavoidable leading to quality and efficiency in the industry.

• It is also expected that government will have to come in and set up regulations governing the industry since it will be attracting more competitors. As a result this is likely to create opportunities for other service providers such as insurance companies to provide health insurance coverage.

• Harmonization of policies regarding alternative health treatment among the countries practicing are likely to be put in place to maintain highly acceptable standards that will help to maintain quality as already done in United Kingdom.

• The industry is likely to attract more research and development from government since a big proportion of the population is already in the industry and that means that opportunities for researchers in terms of jobs will be created.

• New products and services are likely to come up because of the competition and also the entry of new customers will provide varying needs creating new segments in the market that can be targeted.


SWOT ANALYSIS

Strength

• Natural medicine is less toxic. This is reported in the case study. It is one area where the alternative industry basis its strength to attract more customers since they believe in their treatment.

• Cultural motivation is another reason that was cited by the users of alternative medicine as it is attached to historical importance constitutes strength of the industry.

• The 60 percent usage of alternative health on its own shows the strength of the industry indicating that it has the capacity to attract more customers. This is clearly seen by the high growth rate of 30 percent that is accompanied by $1billion expenditure in the industry


Weaknesses

• The industry has no well stipulated regulations currently

• Unprofessional competitors may enter into the market due to lack to proper regulations.

• Usage of medical practices that have no scientific evidence may hurt the industry. For example ear curdling as cited in the case sturdy.

• The lack of scientific base may with time discredit some of the practices especially due to limited number of studies that have been done in this industry.

Opportunities

• Need for health trips.

• Need for beauty holidays.

• The anti-ageing holidays.

• Identifying new segments and targeting them by providing different services that fit the demands.

Threats

• Loose regulations governing the industry hence new competitors supplying the same services are likely to enter in the industry.

• The experiences such as the paranormal healers not endorsed by the Ministry of Health (for example in Indonesia) may discredit the industry and scare away potential customers.

• Multinationals entering the market with Herbal and organic products will affect the alternative health industry. Especially those that have invested heavily on research and development such as Pfizer, Glaxco, and Johnson & Johnson.






Question two

If you were employed as a marketing consultant to an alternative health body (such as the Australian Naturopathic Practioner's Association (A.N.P.A)), what suggestions would you make to with regard to marketing research that could be conducted to determine potential demand, and public attitudes? As part of your response, outline an indicative marketing research plan, and include an indicative budget.


Traditional healthcare practices have maintained a stronghold in societies around the world, and Australia is not an exception to this norm (Australian traditional Medicine Society). After all, big corporations around the world have invested millions of dollars into various kinds of studies and research projects that have gone a long way in proving to the world the effectiveness of the drugs manufactured by them. In such a scenario, many people may be resistant to change for a variety of reasons. For a start, many may not see the need to adopt other health practices than the ones they have been using for years now. Perhaps more importantly, though, they may also be apprehensive about switching to health practices that in their opinion may not be seen as credible enough.

As such, it is of vital importance for an alternative health body to form a fair estimate of who its prospective customers are likely to be, how many customers are they likely to have, and what are the prevalent attitudes that these people have towards alternative health practices.

In order to determine the potential demand in the alternative health market we have to observe certain aspects of the market, such as-

• The current demand for health related products
• The products that is present in the market currently
• The total market size
• The possible scope for launching new alternative products
• The customers’ views on the new product.
• Analysing those views and data.



There is a need to do meticulous research in arriving at estimates that will shape the company’s marketing and sales strategies. We will have to study the market trends thoroughly by learning about what products are popular, and what products may have been popular in previous years. The primary importance is the need to determine how big the company’s market is likely to be. This can be done by studying the performance of other products that exist in the market including both traditional as well as alternative health products. After having formed some estimates as to what the market trends are, there is need conducting exhaustive surveys to study the attitudes existing in the market with regards to alternative health products. These surveys can be completed using all forms of media. Also, a fair estimate of the products’ strengths and weaknesses can be obtained by organizing road shows where such products and methods are demonstrated and feedback is acknowledged. This will help us determine people’s views on our products.

The surveys should be designed such that we can also arrive at some conclusions of people’s perceptions about alternative health products, and to analyse what we can do in order to shape people’s attitudes if we find that they are averse to adopt our products.

In order to achieve the stated objectives we will also collect secondary and primary related data in order to enhance the quality of our research conclusions.

Secondary Data- these are data which already exist and can be used for quick reference. (Kotler and Keller 2006) These data can be collected from government health reports, annual reports of companies, articles, newspapers and company records.

Primary Data- these data include in-depth analysis of data, surveys, getting feedback from consumers, calculating previous and current records, experiments and observations, internal records, evaluation process. The main activities in primary research will be directed at conducting thorough research and scientific studies in order to determine the effectiveness of the company’s alternative products, and how they compare to traditional health products and practices. Following this, the findings and the results of the research activities need to be publicised in the market so that people at large develop more faith in our products.

Other than secondary and primary data, qualitative and quantitative methods can also be applied.

Qualitative method- this method prepares a set of questionnaires which consist of numerous questions on relevant topics and are presented to prospective consumers to get a response (Kotler and Keller 2006). The method measures the views and mix-reaction of certain people in terms of how they think and react. It helps in conducting an in-depth analysis of people’s views, attitudes and opinions.

Quantitative method- it determines the amount or quantity of each indigents of a substance (Kotler and Keller 2006). Quantitative methods will help us determine what our market size is likely to be, how much each of our prospective customers are willing to spend on alternative health products.


The attitudes of the consumers vary day by day. In this modern time where there are variety of other products people tend to shift their choices and preferences and this effect attitude of the consumers towards each new products changes. The public attitude are influenced by social, cultural, personal factors- (Kotler and Keller)

In terms of public attitudes, there are various things that we need to consider, and the main among these are:

Cultural factors- “culture is the fundamental determinant of a person’s wants and behaviour” (Kotler and Keller 2006). Cultures around the world have differing acceptance levels for differing practices. Identities, values, principles, all come into the larger picture and a thorough understanding of that will help us understand the nature of the market that we will have.

Social factor- is influenced by such social factors as reference groups, family, social roles and statuses (Kotler and Keller 2006). Traditional health practices are socially acceptable and have been in existence for a long time. The attitudes of a society are in general resistant to change, and therefore, we will need to take measures to allay any fears that the society at large may have with regards to the kinds of methods and practices and products that we would like to sell. This is of vital importance for the company.

Personal factor- At a personal level, we believe that sound research can lead to helping changing and shaping attitudes of alternative health practices

People’s attitudes towards holistic health therapies are gradually becoming more positive. And it can be determined by the exhibitions being held by different companies every year and the numbers attending these exhibitions that are constantly increasing (vitalexpo exhibition). Countries like USA are now seeking alternative therapies (Macgregor, 2001) as people want more from their lives. People are striving for better living, satisfaction and this is pushing them to experiment to attain peaceful minds, bodies and lives. In Australia, demand of alternative therapies like spas, yoga, spiritual healings are increasing (mbsfestival.com.au). People are shifting to natural products which are herbal and less toxic (Miraudo 2002). The number of those in favour of alternative health has gone up to 60 percent in Australia (Miraudo, 2002). Thus, there are opportunities to enter the market, and establish our presence in it- for attitudes are gradually beginning to change, and people are now more receptive to alternative health products, as the figure above suggests.

Budget

As for the health industry is concerned the indicative budget (approx) would be as follows-

Administrative cost- 5000$-10000$

Setting up stalls in a market place and exhibitions- 300$-360$ per square metre (mbsfestival.com.au) [depends on the size and product]

Promotion Activity Packages such as health related magazines, sales brochure, advertising space and listing will cost around 20000$-25000$ (approx)



Question three
Undertake a segmentation analysis. Define and justify three segments that might exist in the alternative health market, outlining the segmentation variables used to create each segment.

Identifying clear and distinct segments for the alternative health industry is very important because it is yet a growing market with a huge amount of potential. The alternative health market is so diverse and loose that it is difficult to define its boundaries and characteristics and therefore not being easy to categories and segment. Here we try to identify several possible segmentation variables (descriptive and behavioural) that would help to build up consumer segments.

Demographic Age
It is a known fact that consumers wants and abilities change with age. The alternative health market is a massive area with a wide range of products and services. Not all products and services offered by the industry can be consumed by consumers of all ages. Therefore it is of vital importance to take into consideration of the age and life-cycle of consumers and offer appropriate products and services. This variable could be clearly segmented into 3 parts, which are 25-41, 42-57 and 58 and above.

Income
Income plays a major role when it comes to pursuing alternative health care. Holistic health therapies and alternative health treatments are comparatively high in cost and therefore only could be enjoyed by high disposable income owners. An ayurvedic steam bath could cost up to $445 per person (HOME • Keturah - Spa + Skin Care + Hair). Therefore the alternative health products and services could be targeted to consumers with an annual income of $75 000+ and also baby boomers and Generation Xers who has more savings to spend on relaxations and alternative treatments.


Occupation
As mentioned in the case study professional urban women make up a significant amount in the alternative health market. The occupation of consumers plays a big role when segmenting the market because the alternative health industry offers many services to pamper and de-stress busy executives. Depending on busy lifestyles of professionals such as managers, proprietors, engineers etc, the industry could customize its product and service offerings to suit them.

Geographic location
Since Australia has the most urbanized population and therefore most of its high income earners live in major cities the alternative health industry should focus more on major cites such as Sydney, Melbourne, Canberra, Adelaide, Brisbane, Darwin, Perth and Hobart.

Lifestyle and values

A report issued by Grey Worldwide (sited in Plasikitt, 2004) found that Australians want more spiritual fulfilment and meaning to their lives, and willing to spend more money on relaxation. It is a clear lifestyle shift in developed countries like Australia, which has enjoyed sophisticated and a high quality of life achieved through hard work, that its citizens now want to spend more time relaxing and experiencing more holistic health therapies and natural medicines that are less toxic. This shift in lifestyle triggers new significant segments in the market that can be targeted. It is important that the alternative health industry take this new lifestyle change in to consideration when segmenting the market to better understand and serve its consumers.

Benefits

Consumers can be classified according to the benefits they seek through alternative health techniques. Some consumers could seek direct substitutes to scientific medicine through techniques such as acupuncture and others might turn into alternative methods for de-stressing and relaxation purposes. It is important for marketers to identify what benefits the consumers seek from alternative health care and cater accordingly.

Usage rate

The usage rate is an important factor when segmentation is done. Consumers in alternative health market could be segmented as light, medium and heavy users. According to the pareto effect heavy users are often a small proportion of the market but accounts to a high percentage of total consumption. Most consumers might occasionally visit a spa or take a health or beauty trip, which accounts to higher revenue to the market as suppose to a person purchasing herbal medicine regularly. Therefore it is important for marketers to identify the heavy users and what products and services are consumed by them.

Attitude toward product or service

Consumer attitude towards alternative health care could vary from enthusiastic, positive, indifferent, negative, and hostile (Kotler & Keller, 2006). It is important for marketers to identify what kind of attitude has been building up in the market and organize marketing and promotional campaigns accordingly. Since it is reported that the alternative health industry is growing at a rate of 30 percent each year (Owens, 2005) and a $1 billion is spent by its consumers with half of the population using it (Choice, 2001) it is important that the marketers eliminate any negative attitudes towards the industry in order to attract more new customers.


Segmentation

Segment 1

Urban Women
A significant segment that exists in the market is urban women. With more spending power and a large shift in culture and environment urban women tend to opt more towards alternative health therapies. According to the case study the industry features a variety of fitness; beauty and health solutions targeted to a primary market of professional urban women aged 25-45. The other variables used to create this segment are Geographic location, Demographic age, Income, Occupation and Usage rate.

Segment 2
Generation Xers

Generation Xers are defined as more global, culturally diverse and technologically orientated then previous generations. They are often assertive in decision making. (Dean Wallington, 2002). They are also very attentive to the corporate world and what is going around them. According to the case study they too make a significant segment that can be targeted with many products and services that the alternative health market has to offer. The typical age of generation Xers are 46 – 57. Variables that are used to define this segment are Psychographic lifestyle, Benefits and Attitude.

Segment 3
Baby boomers

Baby boomers tend to be a target market for most products and services since it turns out to be a very lucrative segment. According to a research done by Roy Morgan in 2006 it is said that approximately 40% of Australian baby boomers take an annual overseas holiday to the Asia pacific. This makes a great opportunity for Australian tour operates to organize health trips, beauty holidays and anti ageing holidays. The typical age of baby boomers would be 57 and above. Some of the variables used to define this segment are Psychographic lifestyle, Benefits and Attitude.

Question four
Utilising the simplified consumer decision-making process, outline in detail how a consumer may undertake the decision to purchase an alternative therapy for themselves and their child. What sociological and psychological factors may have an influence on this decision-making process?

In recent years the health industry which serves the alternative therapy has been on the high and booming. Especially in countries like Sri Lanka, Indonesia, India, Thailand and China, where the health therapy is at the best and these countries are visited by a lot of foreigners and most of them at least once in their trip go through a health therapy. Cultural reasons are often cited as the main motivator, as many of these practices have long been part of the local culture and history blended with ancient teachings and religious practices. Many of these practices still prove popular, even when imported to a foreign country. The steps that are involved in consumers decision on which alternative therapy to use is explained below:


• The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. With an internal stimulus, one of the person’s normal needs rises to a threshold level and becomes a drive, or a need can be aroused by an external stimulus. In this case the reason could be feeling unwell or want to seek improvement in his health, for which he recognizes a need for an alternative therapy.

• Then it’s the case of identification of alternatives, in this an aroused consumer will be inclined to search for more information. It can be distinguish between two levels of arousal. The milder search state is called ‘heightened attention’. At this level a person simply becomes more receptive to information about the service. At the next level, the person may enter an active information search by looking for magazines, speaking to friends, on the net or family members regarding the health therapy. Consumer will need to see whether its worth the time and money spent to find an alternative choice, that comes into play if the consumer wants to try a different therapy compared to the usual one which he/she has been using.

• Evaluation of alternatives is when the consumer has found the health therapy which he/she is willing to go for or short listed few, but before using the service the consumer will evaluate the alternatives. Considering the service whether it is new to the culture E.g.: ayurveda for Australians is something out of their culture. Some might consider which is best for them and their kids, a full family package. Some basic concepts that consumer use to evaluate are: first, the consumer is trying to satisfy a need. Second, the consumer is looking for certain benefits from the service. Third, the consumer sees each service as a bundle of attributes with varying abilities for delivering the benefits sought to satisfy the need. The attributes that might interest the buyer for alternative health therapy could be:
Side effects, Time consumption, Location, Price and many more.
Evaluation often reflects beliefs and attitudes. Through experience and learning, people acquire beliefs and attitudes. These in turn influence buying behavior. A belief is a descriptive thought that a person holds about something. People’s beliefs about the attributes and benefits of the service influence their buying decisions. Just as important as beliefs are attitudes. An attitude is a person’s enduring favorable or unfavorable evaluation, emotional feeling, and action tendencies toward the service. Attitude economize on energy and thought, they can be very difficult to change.

• In the evaluation stage, the consumer forms preference among the type of alternative health therapy available. The consumer may also form an intention to use the most preferred therapy. In executing a purchase intention, the consumer may make up to five sub decisions: Type of health therapy, Place, Quality, Timing and payment method. A consumer’s decision to modify, postpone or avoid a purchase decision is heavily influenced by perceived risk. Different types of risks:
- Functional risk – the service does not perform up to expectations
- Physical risk – the service poses a threat to the physical well being or health of the user.
- Financial risk – the service is not worth the price paid.
- Social risk – the service results in embarrassment from others.
- Psychological risk – the service affects the mental well being of the user.
- Time risk – the failure of the service results in an opportunity cost of finding another satisfactory therapy.

• After the purchase, the consumer might experience dissonance that stems from noticing certain disquieting features or hearing favorable things about other alternative health therapy, and will be alert to information that supports his or her decision. Marketer’s job therefore does not end with the purchase. Marketers must monitor post purchase satisfaction, post purchase actions and post purchase service uses.

- Post purchase satisfaction: what determines customer satisfaction with the service? Satisfaction is a function of the closeness between expectations and the service’s perceived performance. If the performance falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted. The importance of post purchase satisfaction suggests that product claims must truthfully represent the service’s likely performance.

- Post purchase actions: satisfaction or dissatisfaction with the service will influence subsequent behavior. If the consumer is satisfied, he/she will exhibit a higher probability of coming back to get the same health therapy done again. Dissatisfied consumers may spread a bad image of the service provided and might even take legal action if it has affected the health of the consumer.

- Post purchase use: this is to see how often does the consumer visits again to get the same alternative health therapy done after using it once. Depending on that, the marketers will know whether the service provided is in demand and does it help the consumers, which will lead to frequent visit.
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abhishreshthaa

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huyg pls help me out i need marketing management projects

if u could pls help me out

thanks



hey yesha, please mention your project topic...
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bhautik.kawa

New member
I am looking out for sample project of launching a new store called Barnes and noble in India. Its basically a huge book store... if any one can help.

Hey Bhagya,

Here i am sharing Marketing Management Project - Pantene myShampoo, please check attachment below.
 

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