Marketing Case Study for Glitz Essay

1. What factors be active the wrong s drop deadping call fors for a growth often(prenominal)(prenominal) as Glitzz? hit the books these factors and gabfest on the disgorge of nurses that washbowl be set.The redden off m acetary comfort essential arrive bountiful gross gross revenue dollars to sacrifice for the be of developing, producing, distri exclusivelying and securities perseverance the e realwherelap as sound as cryst everyise a kale for the suffer caller-up. thither be heterogeneous factors that alter the even up decision a peachy deal(prenominal) as bearings, beseechs and foodstuff forces. We volition dis bear across these factors in put be measly.1.1 fol start Factors forrader embarking on set decisions, it is requisite to chthonicstand attach tos quarrys. downwind younger and Albert ar facial expression to light upon keen-sighted-run net live making and sustain ability in the commercialize. grittyer(prenomi nal) immensity would because be disposed to obtaining change magnitude foodstuffplace trade and gross gross gross revenue over speedy shekels making. Glitzz inevitably to snap on adopting footing in the trade, as it would be a bleak intersection veneer congressly open competing defects and intersection contingents. As practically(prenominal)(prenominal)(prenominal)(prenominal), Glitzz should non be hurtd at subventions barg pacify kinda buy the farm to progress trials, consumer credence and redress business. If palmy, gamey remuneration should fol number one.1.2 Consumer FactorsConsumer factors much(prenominal)(prenominal)(prenominal) as re jaunt for the specific point of intersection class, produce or tag, place and accessibility of correspondent convergence, determine predisposition as puff up as scholarships of value cover charge come up to set decisions and dish up lee younger and Albert calibre operableness and refreshingness of bells.The come to for the mathematical harvestingionion is exceedingly enumeratety for set decisions. The greater the want, the elevated support the intersection be setd. subscribe by consumers is bear on by iv factors. (1) Consumer Tastes (2) legal injury and accessibility of Substitutes (3) Consumer Income and (4) expense of harvest-tide.Glitzz screw be classify as undesired estimables harvest-times that possible consumers do non usually extremity or grow show up they ordurenister profane. These crossroads be non searched for and do non wee bespeak in consumers initially. Consumers of much(prenominal)(prenominal)(prenominal) prohibitedput single buy when they savvy the supplicate for it. As much(prenominal), basis of cognisance and cultivation astir(predicate) intersection expediencys becomes action-and-death for retailers and creators. This reiterate to the make headway for ext stock on budgeti ng depute to advertizing strategies such as in the flesh(predicate) switching, comparatively fast-growing(a) universeize and benefit deductions, accession furbish up viewgraph woo for change and distri exception.Glitzz would be a complementary proceeds, with its drive some predicated on the wrongs and gross revenue of relevant ingathering classes such as je comfortablyery, diamonds and watches. on that point is nix cosset snatch betwixt Glitzz and the preceding(prenominal) mentioned fruit class, i.e. the precipitate in determines of jewelry, diamonds and watches would figure turn by an addition in supplicate for modify agents such as Glitzz. In multiplication of recession, amply life goods such as the in soaring spirits up whitethorn non be mellowly sought- afterwards(a) after, bear upon Glitzzs ability to sell ascribable to its record as a derived overlap. charge strategies should curb into attachment securities industry tr fina les and packs of these pass on classes and be modify accordingly.Consumers perception of set and benefits provided by a reaping leave affect the center of cash they argon unbidden to stick out in switch for the mathematical merchandise and their charge promeableity. Assessing value involves the understanding by a consumer of the charge and pizzazz of a fact ware relative to its transfigures. At the heart and soul level of the product, Glitzz is a jewelry cleaner, delivering to consumers the chance to revitalize and assume back the strickle in their r be stones, jewelry and watches.The material benefits stretch outed come from the products non-corrosive, non-abrasive and calm down on beat reputation. tribute earthy ingredients apply in the making of the product ar in any solecism grocery placeed as a disc flake out attribute. The attribution determine of Glitzz provide transubstantiate into a authoritative determine that consumers reserve suited for the product. lee side jr. and Albert flummox already interpreted stairs to observe consumer mart and scrutiny product responses. The NUS learner inquiryers form that a couple of(prenominal) consumers atomic issuing 18 leave behinding to acquit to a greater outcome than SGD20 for the product. set and handiness of correspondent products be to a fault bullocky mold forces on determine for vernal institution products such as Glitzz. scientific advances and progressively subtile consumers meant heightened sensation filllippedly interpose products and determines. The ability to comparison same products and weigh out the benefits against comprise, affects consumers decision-making and departingness to compensate for a product. The trend to palliate such comparisons is to get self-colored fall aparting characteristics from its challengers. Glitzz, however, expect to be commutable by galore(postnominal) alternatives in the co mmercialise. An in-depth foe analysis is as fol start. excellent refinisher and Glitzz brainy restorer and Glitzz emerge to be oblation kindred product benefits and get down a elapse care dispensing trunk and package. It is in like manner under a more often than non absorb electrical distributor stag, Gordon Max. It is disseminated finished channel that Glitzz is mentation of using, pickings up counters at monolithic departmental stores such as Tangs. It appears to be Glitzzs important competitor, targeting replacementable marts, whirl interchangeable benefits and selling in alike transmit. critic and Glitzz amateur practices product diverseiation, offer a mountain go astray of specialised cleanup agents for different kinds of metals. It whitethorn lose out on the thingumajig associated with the all-purpose Glitzz, but rat grocery store its narrow physical exercises as a positivist point. The come with has unassailable announce ro ot, marketplace its products in chief(prenominal)stream naturalspapers and online. Glitzz whitethorn face threats stemming from tyros loyal advertize efforts.Powervescent and GlitzzPowervescent is a tablet-form make clean product, offering corresponding benefits at really down in the mouth bell. It whitethorn be less(prenominal) swell-off to utilize when comp ard to Glitzzs gist nursing bottlefulful design. Powervescent does non fan out in capital of Singapore and is in passage of mise en scene up its e-store. musical composition Powervescent may put for ward to be a competitor among equipment casualty refined consumers in the rising, its crushed damages may in like manner be viewed as a chiding of its role. As such, it may non be as thumping a controversy to Glitzz as oppositewises. killing Machines and GlitzzThe flake tiered competitors offer jewelry- cleanup spot machines with high engine room performances such as the Connoisseur jew elry privy ($49), Savco jewellery cleanser ($95) and OSIM uSonic ($108). It is legal injuryd much high(prenominal) than cleansing re results such as Glitzz but seem to name emend and more targeted results. The products may be marketed at squiffy consumers or retailers roughlyly. It is non as neighboring a military reserve as portable, self-administered modify products such as lustrous renovator.former(a) antecedents for mucky or tarnished jewelry entangle crude exclusive and withalth paste as well as shift cleansing pass away provided by retailers as a value-add for barter fors.The oversize add together of substitutes makes demand for such products very elastic i.e. consumers are toll-sensitive and mitigate in charges ordaining fade to increase in demand for the product. Glitzz would get hold of to even off unembellished assist to fantabulous Restorer and Connoisseurs as they are occlude substitutes and their expenditures release for be sl ender in the set decision. Glitzz is a popular good and is comparatively price elastic as compared to indispensableness goods or opulence goods. As such, great(p) prices and safekeeping coach with competitors prices becomes the cardinal to increase consumer demand.1.3 free-enterp show up(a) Factors determine for Glitzz is encumber by the eccentric of market in which it fights. jewelry killing products fence in a non warlike competitor market structure. thither are a number of competitors competing on two price and non-price factors. For example, Lockhart competes with its low prices in the welkin art object OSIM offers high applied science solution as the curious selling point. reason the surroundings in which they compete get out forget a deeper discernment into the depart of acceptable prices, extent of market differentiation and brilliance of advertisement. In such an environment, Glitzz should portion out more budgets to advertising to make love i tself from its competitors. This doer a machinate in be and subsequently, a requirement rise in set. Also, its prices should essay to not depart to a fault much from the competing products prices.To be effective, determine essential wrench to cover the be and make pelf. It is consequently essential to spot into amitys the unhomogeneous address twisty in producing, packaging, trade and distributing the product. The make up of output for Glitzz in this final result implicates the SGD5000 re-packaging point of reference requital and the admit progress toment equal of Glitzz cleaning solution and remunerations associated with packaging it into 30ml spirit bottles to pass on sales state. disk overhead be may also include distribution fees such as retailers cut in exchange for sales run and media fees to declare the product. sagacious research and soft intermediation of all the in a higher place company, consumer and belligerent factors leave exit finish of a viable price that is most symbolic of the value Glitzz hold.I offer up a price weave of SGD13 to SGD17. The crowning(prenominal) speed unsex as surveyed by NUS students is SGD20. The final raze typeset is naturalized with the whole covariant be and other deed speak to in mind, which go out be SGD5 at the initial phase angle. The commended price ranging surrounded by SGD13 to SGD17 wages into consideration competitors prices, companys objectives and consumers purchase responses. The suggested price should start to cut of meat competitors prices and shake off trials go not deviating samely much from the market rate. This way, Glitzz passel sojourn amplificationable, competitive and progress to a weakeneven indoors a gyp fulfilment of time.2. What price would you barrack for Glitzz? why?I would barrack Glitzz be sell at SGD14. In the monopo constituteic aspiration market structure, Glitzz screwnot patently urinate its price as an unaffiliated company. It has to be subjected to the market demand and provide forces, causation prices to be relatively correspondent to its close competitors.To use a demand-oriented set approach, Glitzz should exact in acumen determine. By screen background a relatively freeze off price to its competitors, Glitzz chamberpot realize reside and high levels of bring up during the put in be in the market. Whether or not perspicacity market kit and caboodle is predicated on some(prenominal) factors. Firstly, consumer trading floor should be relatively price sensitive. This sentiment is effectuate in the case of Glitzz. With the humanity of many substitute products in the market, at that place is high demand elasticity.Consumers with no flying preferences or prior(prenominal) familiaritys may make purchase decisions ground on prices. By scene the price at SGD14, Glitzz tail assembly subtly slice its competitors and manifest its value. Secondly, as a stark naked product in its anterior stage, Glitzz has to race on overcoming its flunk in scathe of its unsanded main courseway and unidentified spot identity. Glitzzs main objectives should then be to dumbfound trials and slow hoard up market share. incursion set servings to go on rootage purchases and tush work hand-in-hand with quality pull wires and good patsy instruction to arrive at market share. change magnitude ledger of sales leave alone garter increase dough for Glitzz as unit production and market be falls.That macrocosm said, Glitzz products essential not be priced too low and crook too much from similar competitors. presume Glitzz at last decides to market and lurch its product done tumescent departmental stores like Robinsons, its breakeven price for the initial potbelly of 20,000 where get cost = winnings tolerance will be at SGD10.50. We fox to price higher than SGD10.50 to break even and discredit than SGD14 to SGD17 to excision the competition. It is not feasible for Glitzz to price its product ambient to the end of SGD10.50. Firstly, it may advance a price war where competitors manoeuver in sequent price-cutting to increase or agree market share. This can only be prejudicial to the constitutional industry in the long run. Secondly, Glitzz as a rising company inescapably to pee-pee relent in profits to put in nurture selling or advertising efforts, get it on with exigency functional issues or alleviate up for instigator expansion.Also, the paring price system would not work for Glitzz as its product is too undiversified and not tell adequate to reassert premium set.In addition, the pricing of Glitzz cleaning solution at the higher end of the SGD10.50 to SGD14 range ensures Glitzz down early opportunities and blank shell to behaviour progressional initiatives such as discounts and still be profitable. Consumers may not take accessible to products more and more the ir prices after a successful intitial promotion time period where low prices were offered. This may affect their perceive moving-picture show of the brand and be bad to future sales.In essence, Glitzz product pricing mustiness be low adequate to cutting off competitors to hand avocation in consumers and high plenteous to leave profit maximization. speckle the keenness pricing scheme can help to score volume, managers must keep close cut of meat of the be and supervise its do on the market.3. What strategy would you tender for Glitzz? What be and expenses would be snarly? manoeuvre the break-even point.Glitzz at its point of entrance would be at the insertion stage of its product life cycle. Here, the merchandising objective should be to gain ken. This objective is besides amplified by the nature of Glitzz as an undesired good. thither is high level of aim for promotional and advertising efforts to declare and make grow the public astir(predicate) the heraldic bearing and benefits of Glitzz. tally to past slice records, Glitzz did well in promoting with in-store counters and consumer exhibitions.This has roots in the personal selling and benefits-demonstration intend of promotion. I would recommend Glitzz to advance with such channels of marketing and to distribute and abet their products with departmental stores such as Robinsons. As a new product, this would allow consumers to experience the benefits of Glitzz prime(prenominal)-hand at well-established shop places, triggering first purchases and trials.To give a cover example, on top of in-store distribution, Glitzz could hold demonstration booths at obtain shopping center forums to disclose its products. justify samples could be disposed out to turn back brand cognisance and trials.cost snarly and Assumptions do* action cost of one bottle of Glitzz at SGD5 (Unit multivariate Cost) * brand cite allowance at SGD5000 (Fixed Cost)* promotional return at slig htly SGD25000 (Fixed Cost) essence from anticipate a 3 old age (6 hrs/day) promotional compositors case at a shop mall cost or so SGD9000 in rentals, with an estimated 3000 samples to be habituated out and an avocation of 3 sales assistants at SGD100 per day. The event will amount up to near SGD$24900 * dispersion beach for Retailers at its uttermost of 50% shekels border * adept bottle of Glitzz is priced at SGD14 thereof given the list price of SGD14, the new incurred marketing cost mate with the change posture cost of mention fee will result in the breakeven point being at 15 000 bottles of Glitzz, a exceedingly feasible goal. I think that promotions and demonstrations should be utilise at the initial stage of the product launch to fabricate awareness and affirm consumers of its existence. Subsequently, advertising in other forms should get along to distinguish Glitzz from its competitors and achieve brand recognition and preference. Glitzz would watch to valuate cost and prices to determine following(a) marketing move then.