A Presentation of a Marketing Strategy for a Product

A Presentation of a Marketing Strategy for a Product
The aim of the report is to produce a marketing strategy for a new or existing product. I have chosen to base this report on Cosmopolitan, a successful woman?s monthly magazine. I have chosen this because it has a loyal readership and is currently market leader in its field. Women?s Monthly Periodicals Adults Mens Womens (000s) (%) (000s) (%) (000s) (%) Cosmopolitan 1915 4.1 331 1.5 1585 6.6 Marie Claire 1690 3.6 223 1 1467 6.1 Vogue 1272 2.7 259 1.1 1013 4.2 Elle 951 2 131 0.6 820 3.4 New Woman 660 1.4 46 0.2 613 2.6 Red 585 1.3 52 0.2 533 2.2 Above is a copy of the current readership figures for the UK?s top Health, Beauty and Lifestyle Woman?s monthlies. As the figures show, while there is a large gap between the readership figures for Cosmopolitan and its closest rival (Marie Claire), the only way to make sure that Cosmopolitan will remain market leader in the future is to continue to widen that gap. Therefore, my marketing aim is to continue to increase the market share
Cosmopolitan has reached the top of the league by using a marketing strategy which combines the promoting or giving out of questionnaires and other research techniques to understand the needs of the customers/ readers and giving freebies, advertising and more. The possible aims for these magazines would be as follows: ? Achieving market domination. ? Increasing market share position. ? Retaining existing market shares. ? Combating new entrants to the market. Achieving market domination- this is not relevant to cosmopolitan because they have already achieved this. Increasing market share / position-this is the aim that appears to be most relevant to cosmopolitan because they need to keep on widening their gap with their competitors, especially its closest rival / threat, Marie Claire. To achieve this, they will have to look at other magazines that have done well and steal their ideas and readership. Retaining existing market share -this is another aim that cosmopolitan need to be aware of because retaining means holding on to existing customers and making sure they come back to you and don?t go anywhere else. This also is cheaper than recruiting, which involves advertising etc? Combating new entrants ?one of the key factors in market is the existence and strength of competition. In a competitive environment organisations are forced to be on their toes. They cannot allow rivals to gain advantages by offering lower prices or goods customers perceive to be substantially better. This aim is relevant to cosmopolitan because if a new magazine is launched, this poses a potential future threat to all magazines in that market sector. Therefore, this issue cannot be ignored. Through an aim of increasing market share, knocking out new entrants can, if well planned, be a by-product of marketing strategy. Cosmopolitan needs to widen the gap between Marie Claire; on the other hand Marie Claire may be trying their best to rise above cosmopolitan. Therefore, before they think about widening the gap, Cosmopolitan Need to stabilize their position before they can widen this gap. Their aim must be to Increase Market share / position. Product Price Place -? Promotion ===== In order to be successful, cosmopolitan will gear their activities to being better than competitors, and keeping up with any improvements competitors make. The first challenge for Cosmopolitan is to find a set of customers and to identify their needs so that appropriate goods and services can be developed. The first element in the marketing mix is the product. Once Cosmopolitan has a product, then all the other elements in this marketing mix can engaged to meet customer needs. These may include developing the pricing for the product provided, working out how to distribute (place) goods to the customers, as how to promote them. Product Profile: My chosen magazine is Cosmopolitan the publishing director of Cosmopolitan is Jan Adcock. Profile: Cosmopolitan meets and tackles all of its readers concerns, passions and ever-broadening interests. Advice on relationships and men continues to beat the heart of the cosmopolitan offer but is also backed by relevant, topical features, imaginative fashion and beauty and the very latest health and career news. Glamorous and gutsy as well as frank and intimate, Cosmopolitan celebrates being a women by recognizing that women today are stronger, braver And more exceptional than ever. Cosmopolitan support, encourage, congratulates, entertains, amuses, inspires and uplifts ? helping its readers be the very best they can. The core Cosmopolitan buyer is ABC1 and in her mid to late twenties. Intelligent and independent, she is determined to succeed ? in her career, her social life, and her relationships. She wants to take full advantage of the many choices and opportunities open to her and understand that self-fulfillment comes from having fun, treating yourself and feeling good, as much from work and material achievements. Sex men and shopping are essential part of her life. She is part of the post-feminist generation who assumes they have equal rights. She has grown up in a world that has grown progressively smaller and more accessible, so is far less constrained by society?s rules, physical boundaries, or tradition than her predecessors. She will judge her success on her own terms. The issues that Cosmopolitan cover within their magazine are set out in very interesting format which makes the reader just want to go for it. With the bold writing saying celebrities real-life stories this is another method used to attract readers. Cosmopolitan attract their readers by advertising their front cover in a glossy, colorful and eye catching way, using attractive women figures on the front, with her eyes set so that when you enter a shop she will be watching you where ever you turn. The purpose of this is so that you can?t miss the magazine from any angle. Cosmopolitan start their magazine with fashion using exaggerated words like ?flirty fashion?, basically to encourage readers. These are followed by some love stories persuading readers to read on. Then going on to some advice on hair for everyone with hair problems. Moving on to some real life issues and then summing it up with ideas on how to lose weight and finally supplementing this with some gossip about celebrity life styles. Comparisons with the competition Comparing this with their closest rival, Marie Claire, who also are successful in what they do, they have nearly reached the top of the league in fact they are second best, just below cosmopolitan. If they have reached this far they must have something that readers are interested in; this is why I have decided to compare this with Marie Claire in order to improve Cosmopolitan and to widen their gap between Marie Claire their closest rival. Marie Claire has also set their front cover in exactly the same way as Cosmopolitan but with different headings and issues. Like cosmopolitan, Marie claire has a very pretty picture of a model that would attract their targeted readers which are girls that are aged between 15-19 this is the age that girls tend to care more about their looks. Her eyes targeting at you so that when you walk pass you get at least a glimpse of the magazine. Marie Claire also uses exaggerated phrases such as "Courtney opens her heart on marriage, babies and being too thin", to dramatise the issues they cover fashion tips. Then to attract reader?s attention they use the word celebrity for instance ?celebrity beauty? which is what every would want to look like.marie claire advertise their magazine in very bold and big letter like ?men?s confessions?and other words such as ?452 fashion best buy? this is their way of making the readers to flick through. marie claire also advertise their front cover in a glossy and bright and colourful so that it stands out from the rest with a figure on the front . The issues within marie claire are also very interesting, they start with tips on fashion and then relating it with some advice on beauty and health and then in contrast they add some gossip on Celebes life style. This is then followed with providing information on travel, then to encourage readers to choose their particular magazine they have there own page where they offer special offers to their readers which are worth looking at they even offer vouchers. Finally they have a page of regulars this page is about letters from readers and information on publisher of the magazine. Price: Cosmopolitans sell their product at a reasonable price, which is £2.80.Comparing this price with Marie Claire?s price their closest rival which is the same. Cosmopolitan needs to keep on checking their price with their competitor?s price in order for them to stay at their position .For instance if marie claire decide to lower their price therefore they might be able to overtake cosmopolitan?s position or might put it on offer. An advantage of having your product expensive is that readers might think that if the product is expensive the quality is going to be good, rather then some cheaper magazines. Cosmopolitan needs to keep on checking their price with other competitors too. Prices of other competitors are as follows: Cosmopolitan-£2.80 marie claire-£2.80 Red-£2.00 Vogue-£2.60 Elle-£1.70 Looking at other prices of the competitors they all seem reasonable. Even though Red is a lot cheaper it has less reader?s cosmopolitan, cosmopolitan has the most readership then any of the other competitors .My aim is to widen the gap between cosmopolitan and marie claire. Place: Cosmopolitans sell their product virtually everywhere for instance in newsagents, shops, cornershops, shopping malls, stores, newsstands and they send subscriptions through post. As a part of a primary research, I have given out questionnaires to try to find out what readers of cosmopolitan do and like, and where they go so we can sell our magazine in those places. Promotion: -???- Cosmopolitan promote their product nearly everywhere for instance they promote it on television in between soaps, other magazines, posters, handing out leaflets in towns. To find out more about what people wanted I have handed out a questionnaire to find out what soaps they watch what places they go to in order to place my adverts. Consumer profile Cosmopolitan targeted audiences are readers aged between 19-28 ABC1. Cosmopolitans sell their product nationally. I have investigated the total population between 19-28 in Aylesbury are 11062 people. Which I hope to aim at by advertising. The occupation is all in different positions such as half the readers are students and workers so the occupations were very different. The consumers are people who are rich and poor both types of customers can afford to buy the magazine. Establishing customer needs Cosmopolitan has to explore the needs of its customers and activities of its competitors before it can develop a marketing strategy. To gain an understanding of the market for a product, I will need to understand the different research methods and data. I need to know how primary research is carried out, and how to interpret primary research data for use in developing marketing strategy. The methods that I can use in order to get hold of that information are as follows: ª Discussions with people for instance, interviews, focus groups, and panel discussions. ª Questionnaires and surveys ª Sampling ª Testing through pilots and fields trials. The method that I have chosen to use is a Questionnaire this is a very effective way of retaining valuable information, but has to be done the right way to gain full advantage. Segmentation Another way that I segmented my audience was by dividing the age range, splitting one huge age range into four small age groups which were: 15-18, 19-21, 22-25, 26-28. The idea of this was so that when I received the Questionnaire I can put the appropriate Questionnaire under the specific age range group that it went under. This will then enable for the whole process to run smoothly as possible because this way I will have four piles of Questionnaire that tell me exactly what each specific age group likes and wants. The results were as follows: 16-18 age group- This age group was the complicated age group and are quite easy to attract this is because they can be influenced by numerous of things like celebrity and can also be quite fussy too. They were also attracted by what was given on the front cover like diaries, which they can keep throughout the year with all of the dates relevant with the events that are going to take place. The younger age range has a number of very different interests and concerns then the older range. For instance the type of music, celebrity, fashion, movies, activities, lifestyle, and the situations they are in. The younger audience are the school age group, because this age group is at school they don?t have much disposable income this not only giving them no opportunities to splash out their money, but also leaving out of the gossips which come within the magazines. From the Questionnaire that I divided up into a small age range which is16-19. I have learnt that this age range when compared with the older age range there were a lot of differences .For instance most younger age group wanted and rated issues on gossips about the top celebrity, tips on latest fashion which they can upgrade their look on. And something that attracts them from the front cover of the magazine like celebrities. 19-21 age group- At around this age most of the age range would start university and I would refer to them as the uni age range. Their taste are similar to the younger age group but with a little difference. From the Questionnaire I have learnt that this age range wanted Celebrities gossip but not same as what the younger ones like. They also wanted issues on fiction, soaps, and health and beauty. 22-25 age range- This is what I would call the traditional age group meaning the changing group because from this point onwards their tastes change. This group has gone through school, university and they now have probably started their first job, which means they now have a reasonable disposable and they can now start flashing their money. The magazines Cosmopolitan caters specifically for this age group because the issues within in Cosmopolitan relate more to this group for instance the relationships, situation language etc. From the Questionnaire I have found out that when compared with the younger age range there are lots of differences for example this age group liked issues on health and beauty, diets, celebrities and a problem. 26-28 age range-This age group would be at their stage of their life where they are progressing their career. I am going to call them the mature age because they have moved up into the world they have now moved up into their job which means they now have a higher disposable income. Cosmopolitan is also targeting this age group. Like the changing age group they have similar interests, Therefore the issues in Cosmopolitan more of relate to these too. From the Questionnaire I have learnt that this age group wanted issues on environment, medical help and tips on diet etc. From the findings I have found out that it is difficult for magazines to cater specifically for such a wide age range of people. To overcome this problem instead of cutting off the one big age range from each end, I will divide the age ranges by drawing the line through the middle. 16-18 School age group 19-21 University age group -??????????????? 22-25 First job age group 26-28 Career progressing As shown above I have drawn a line through between the ages of 19- 21 and 22-25. The reason because I have split the ranges into two sections is to show that the top two have similar tastes and the bottom half have similar tastes, which really splits the four sections into two sections. And showing that the bottom half is what Cosmopolitan caters for, and are the popular readers of Cosmopolitan. Because it is difficult for Cosmopolitan cater for all age ranges I have come up with a solution that will try to overcome this problem. I will launch a new magazine that will be designed especially for the top half of the audience. This magazine will be recognized as the Cosmopolitan ?teens? designed specifically for the top half of the audience. The idea of this is so that Cosmopolitan doesn?t lose on any readers instead attract. Questionnaire In order to improve and to promote more customers to buy the magazine I have produced a questionnaire taking a more specific look at what readers like and want. I decided to put my questionnaire inside other magazines in the publisher?s product portfolio and to encourage readers to fill it in. I have offered them a free holiday in Wan Chai in Hong Kong for them to win which I arranged over the phone with a travelling agency. [Include copy of Q and explain the relevance of each of your Qs] Product -??- In my questionnaire the results didn?t come as a surprise from the readers of Cosmopolitan. This was because the younger readers compared with the older readers had a lot of differences. For example with the issues, the younger readers aged between 15-19 preferred issues on gossip, celebrity, fashion, beauty, health a glossy front cover and freebies that come free with the magazine, Whereas the older ones aged between 20-28 have moved up into the world they have moved up in their job they have more disposable income and they wanted issues on travel which now they can afford. They also wanted issues on environment because they are keener on the environment around them and how their children?s are brought up considering the environment. As they have become a lot older then the younger age group they tend to worry more about their figures as they asked for tips on diets and etc. These results will definitely influence my strategy decisions because when I change my product to increase market share and widen the gap between their closest rival. I will take in account from the primary research, which I have found out about different ages of people like different issues. To overcome this problem I will balance my product so that it offers and covers variety of issues expected by all age groups. I also compared marie claire with Cosmopolitan to see weather there are any issues that cosmopolitan don?t cover and marie claire does I found this very interesting because even though Cosmopolitan has more readership than marie claire but marie claire strangely covers more issues and gives more offers. For instance marie claire have a whole page of offers which they offer to their readers another issue that cosmopolitan don?t cover is on lifestyles. This is another issue I will be taking into account so that when I adapt and change my magazine I will be sure these issues are included so that I can steal some of marie claire?s readers with them. The front cover is probably the most important part because after all it is the cover that attracts most people. It is a risk in designing the front because there is a chance of the readers not liking the cover. The cover will be changed and adapted into a more colourful eye-catching in order to attract and to persuade more readers to buy the magazine and I already know that to attract young readers will be the cover and the freebies that it offers. On the front cover different bold texts will be placed so that when a reader catches a glimpse of the magazine they can see what?s inside just by reading the cover. The design will be fresh, something new, modern and several other techniques will be used like taking pictures reversing them, bold texts and placing them upside down, taking texts placing them different angles, placing pictures on top of each other and basically stupid things like that. The issues will be changed in order to suit everyone?s needs this will be done considering everyone?s opinion on their needs and wants. I will only change my magazine at some extant because if I change my product too much this might affect the existing customers in order to keep my existing customers I will have to keep my product and make the changes only to some extant to satisfy my customers. Before I can make any changes to the product I have to first stabilize my existing customers before making any changes. I will also create a problem page this page is about if someone has problem then they can write to the problem page that will try solve it Price -?? This is the vital part of the marketing mix because you need the best price to sell your product at. In order to do this is to look at where your product is. For instance Cosmopolitan is at the top of the league and has the most readerships than any other magazines this then enables the product to move their prices without any risks involved. This year Cosmopolitan?s birthday is coming up it is a perfect chance to put Cosmopolitan on offer by moving their price to a lower price maybe to 95p this it is a gamble, but it can be a huge success this will hopefully encourage readers to buy their competitors magazine and cosmopolitan magazine which will seem to them at a such low price and gradually then moving the prices high again with the readers of their competitors too. Place (Distribution) Distribution plays an important part in the marketing mix. It helps cosmopolitan meet customer needs profitably and efficiently. In the questionnaire I asked questions like where the reader?s of Cosmopolitan spent their time? What hobbies they like? Where they mostly buy magazines? Etc. These questions were asked in order to help me decide where was the place for the magazine. The results were that most of Cosmopolitan readers went out more often to clubbing, tennis, shopping, bowling this was really expected because of the age group. I also got the reader?s of the reader?s of marie claire to fill out the questionnaire too. Their results were they also liked going out to nightclubs, parting, gymnastics, tennis, cinemas, and shopping. With this vital piece of research I will put this together and find a place that both readers of marie claire and Cosmopolitan attend. This way I be able to provoke the reader?s of marie claire into buying cosmopolitan. Promotion From my questionnaire I have learnt what programs readers of Cosmopolitan watch and what programs are the most popular to gain full advantage of them I will advertise my product between those programs so that I can attract more readers. To make the readers aware of this new product I will be using the device advertising to gain full advantage of the audience. This is the most expensive and probably the most successful if is done the right way. There are various devices that I can use to get the message of the new product across. I have chosen Advertising, advertising is a prime way of gaining competitive advantage. Advertising not only enables Cosmopolitan to present and describe the key features of a product to potential customers but also has the power to transform the product by creating subtle association between product and lifestyles. From the research I found out what programs are the most popular this was in order to advertise between those programs. This I found very interesting because Eastenders come up as the most favorite soap, as this soap is on BBC1 there is a slight problem meaning BBC1 doesn?t do any advertising. In order to overcome this constraint I have come up with a solution instead of using advertising I am going to use product placement, this means getting the product seen in a different environment which reflects and emphasis the product image and has to be paid to be done. To do this I will be getting the most popular person in the soap to hold the product where it is eye-catching and the most noticeable. Within advertising I will be using two methods those are Splash advertising and Drip advertising. Splash advertising is lots in one but lasts for a short period and is very expensive, On the other hand Drip advertising is a slow, constant reminder. Before a magazine can splash out their money on expensive advertising they need to see where they are in the dominated market as Cosmopolitan this isn?t a issue at all because they are the successful magazine which means they can afford to do this. I will be using both techniques because I really want to make an effort of becoming focus of attention. The device I will be using for the launch of the new magazine recognized as the Cosmo ?teens? which is specifically designed for the top half of the age range they are the school and the university age group, they are known as the younger age and have different tastes and interests when compared with the bottom half of the audience. This group has similar likes and dislikes so I decided to put them as one and cater specifically for them. I think splash advertising is the most appropriate for this as it is the launch of the new magazine and needs to be reminded quiet frequently as it needs effective and expensive advertising to get its message across. The Drip advertising is going to be used for Cosmopolitan the initial magazine this is specifically for the bottom half of the age range, which are the first job and the career progressing age group, they are known as the mature group. This is the group that Cosmopolitan specifically caters for which really leaves out the younger group. I have avoided this problem by launching a totally new magazine for them as I have explained in the above paragraph. I have kept the original magazine for this group, but I have made a few changes to it that will fulfill the customer needs and requirements. As these changes have been made I want them to be recognized, which I thought Drip advertising would be brilliant idea it is cheap and a constant reminder to make readers aware of this product, and the changes made. Another constraint is the launching of the new product that is a brilliant idea in long term this will also feed back in the long term, but as my strategy is only a 12-month trial I need a faster acting strategies to work alongside this strategy in order to meet my short term target. Those are as I have shown in my strategy. Strengths, Weaknesses, Opportunities and Threats. This is a frame structure, which tells the organisation of any on coming risks. In order to develop an appropriate marketing strategy, which involves creating the best possible match between the external environment and the internal capabilities. To overcome this problem I will draw out a swot and pest analysis that will overcome any problems. A particularly useful approach to examining the relationship between Cosmopolitan and its marketing environment is a swot analysis. A swot analysis sets out to focus upon the Strengths, Weaknesses, Opportunities, and Threats facing business or its products at a given moment. It includes both internal and an external element. The internal element looks at current strengths and weaknesses of the organisation. The external element looks at current the opportunities and threats present in the environment in which the organisation operates. Strengths M Dominated its market. M It has a loyal readership. M Strong brand image. Weaknesses M Struggles to keep up with anticipating ever-changing top celebrities. M Niche age range constantly losing loyal readership: the niche age range 16-28 demands customers older or younger then this age to choose a different product then ?Cosmopolitan?. M Saturated market. Opportunities M To lower the price M Changing consumer interests. M Changing / evolving media developing existing media by making it sound more interesting, by Changing the speech. M Media product placement. Threats M Competitors M New product entrants. M Keeping up with evolving culture. Cosmopolitan as strength has a loyal readership and a strong brand image their loyal readership is mainly based around the age 16-34. This is because people around this age group want and enjoy entertainment. And this is what Cosmopolitan is good at giving what their customers want, which gives them this as strength. Another strength within Cosmopolitan is that they have dominated in the market meaning they have reached the top of the league and need a way of staying there. From the swot analysis above Cosmopolitan needs to develop on their Opportunities, minimize weaknesses and to cancel threats and to build on the strengths. In order for Cosmopolitan to build on the organisation strengths they need to consider making big changes by seizing opportunities. For instance if Cosmopolitan decide to lower their prices this is advantage and successful approach in gaining more readers. When the consumers will see this price they will definitely buy the magazine this will be able to provoke other competitors consumers, allowing the readers to actually read the magazine and pick it up the next time too. Gradually moving their prices back high again with more readers with their target accomplished. This will be an example in my strategy. As well as changing the price and the quality of the product meaning by changing the expectancy of the paper. This is another device for gaining more consumers by meeting customer needs and requirements. From my research I found out that most people made points on the quality of the paper that the expectancy of the paper should be changed into something that lasts and doesn?t tear apart. In order to meet this requirement I will be changing the expectancy of the paper into something that doesn?t tear apart. And up dating by new media development, they can cancel two threats which are competitors and new product entrants. Another opportunity for Cosmopolitan is that they can product placement their product in order to create awareness and target at that age group effectively by researching which programs are the most popular and who are the popular actors within that program to place your product there. This is a good way of increasing brand awareness, which I hopefully will add in my strategy. They will be way ahead of their competitors and at the top of the league and also new entrants will be knocked out. Also the niche age range is16-28 this is a weakness as it is constantly losing loyal readership. This demands customers older or younger then this age to choose a different product then ?Cosmopolitan?. This weakness can be turned to an opportunity then to an strength if the organisation decides to change the age range to aim at an larger audience and this could probably provide ?Cosmopolitan? with more customers and less competitive market. Another weakness for Cosmopolitan is that it struggles to keep up with anticipating ever-changing top celebrities. To overcome this weakness and change it into strength. This is linked with another one of Cosmopolitan strength, which is they really are big and has dominated in the market and are currently running under E-map with other magazines. E-map who are massive publisher this then means Cosmopolitan can draw on the research from other magazines under the publisher to get information for anticipating up-coming celebrities. Another one of Cosmopolitan weakness is that it only caters for the age range between 16-28 this is such a wide group, which means they only can cater for a small group this makes younger group feel ignored and demands them to buy another magazine. To try and overcome this problem I will launch a new magazine that will recognize the specific group and cater for them fulfilling their needs and requirements. The final weakness within cosmopolitan is that it has saturated in the market meaning it has squeezed out every opportunity in gaining more customers. To turn this in an opportunity for Cosmopolitan they can export their product abroad, encouraging other cultures to buy the magazine and stealing readers from other magazines. These are the opportunities, which they can then turn into strength. Political, Economic, Social and Technological. This is a frame structure that identifies the key factor external to an organisation that are likely to have an influence on the organisation in the coming months and years. pest stands for Political, Economic, and Social and Technological influences all of, which are external. Political ? Legal restraints ? Libel laws ? Data Protection ? Intrusion laws. ? Sexually exploit. Economic

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