Marketing proposing a positioning strategy for new lipstick “Plump lips”
This memo proposes marketing strategy for positioning of company’s new product – lipstick “Plump lips”. The description and analysis of the product’s quality will be presented in terms of its advantages vis-a-vas similar products of other companies. The description of this product is aimed to construct possible methods and guidelines for brand construction and promotion.
On the basis of it marketing positioning strategy is outlined. Different mechanisms of promotion to the perfumery market are discussed such as promotion in supermarkets and other market places. Moreover, online and off-line buyers characteristics are analyzed and the ways to optimize online and offline marketing.
The description of the new product
New product called “Plum lips” is a lipstick designed to fill the demand gap in the category women with dry, rough lips. The pigments, waxes, oil and various emollients that are contained in this lipstick moisturize dry and rough lips. The product has already undergone clinical and scientific examination and the results show that in 9 from 10 cases the effect on women with such category of lips is positive. Moreover, the esthetic characteristics of the product are enhanced by the large number of colors and textures which creates big assortment. Thus, company’s new product has a lot of advantages vis-à-vis our competitors in terms of quality and variety, which can be directly, used in market promotion activities.
The product belongs to the premium price category and the recommended price is determined on the level of 20 $, though the marketing communication should be oriented on the middle and high-income focus groups.
Positioning strategy for the product or service
The marketing positioning strategy for the given product is determined by necessity to occupy certain market niches that are peculiar for this category of products. The marketing positioning strategy falls into two parts. The first one refers to branding construction and promotion through the mass communication outlets in form of commercials’ designing and creating positive attitudes of customers. The second strategy is market positioning through creating and developing sales line and promoting product through various activities in the market places such as supermarkets, perfumery shops etc.
Branding construction is determined by the fact that the product is oriented on the middle and high-income focus-group. It must be popular among them. Various techniques have been developed by the Marketing department applying the most effective branding technologies such as “brand strategies” and “attitude branding”
The developing of brands according to the first concept is not about just generating profit but developing positive experiences.
According to this point of view brands create energies that can not be reduced to mere consumption and stay intact even after the decline in product production. Brands create such phenomenon as consumer’s loyalty which means that brands can themselves generate value not tied to any concrete product. People will stick to other company’s brands since they regard them to be of high quality and increasing social status. This branding strategy is particularly important for the marketing positioning of our new product. The slogan, logo and design scheme, that Marketing Department has already created, is grounded on the findings of marketing analysis of the middle and high-income focus group orientations and lifestyles perceptions. These findings in application to the new product are provided in the appendices to this memo.
Another marketing concept used in the market positioning of the new product relates to attitude branding. It represents the position which is not directly connected with a given product but generates special feelings, mood and orientation. It is used to create personalities with certain interests, lifestyles. In this way the demand is increased not on the separate category of product but on the trademark in general.
Using this strategy will allow us to increase sales of other premium products of our company and mainly in perfumery. Necessary designs and groundwork will be presented by marketing department at the joint meeting of the company’s departments representative. The financial resources necessary for developing of the branding strategies for this product are reconciled with financial department and make up 60000$.
Marketing positioning in mass communication will be produced through advertisement campaigns. The commercials series are now being designed in Marketing Department. As in the case of brand construction we draw upon the analysis of middle and high-income consumer’s orientations, which conditions the context of advertisement images. The attention is paid to the product promotion among business women and young perspective girls. The advertising campaign is planned to proceed in 10 stages each of them while paying attention to the entire nomenclature of the product will focus specifically to specific subcategories. This would allow differentiating sales line and making each product popular among consumers, which in turn is likely to increase sales. The extrapolation of financial result is now being elaborated in cooperation of the specialist from Marketing and Financial Department. We are planning to draw several celebrities to advertise our products. The concrete names are now decided and negotiations with their representatives are held at the moment. The attraction of famous people in show-business is regarded as important prerequisite for effective marketing positioning. The aggregate costs will be evaluated after all formalities are observed.
The marketing positioning of the new product in the market place will be organized through promotion campaigns for which additional promoters will be employed and realization of promotion events in the perfumery shops and supermarkets. These responsibilities will be assigned to our regional sales representatives.
Impact of online and off-line buyer characteristics on the positioning strategy
As market positioning will be realized through Internet the approach to online and off-line buyers significantly differs. Our marketing positioning strategy in Internet is designed to provide customers with possibilities of quick and sage purchases from the on-line stores with which we had already concluded business agreements. The new product may be easily bought on the most popular on-line stores, which will also provide possibilities of attracting dealers and stakeholders.
Thus, the marketing positioning strategy for the new product is organized at several levels. The first one is branding construction and promotion through advertisement and other activities. The second refers to marketing positioning through promotion events and creating sales lines. At last the third pays attention to on-line promotion and commerce. This memorandum must be considered as action plan for the promotion of company’s new product line.
Moschis, G. P. (1994). Marketing Strategies for the Mature Market. Westport, CT: Quorum Books.
Paley, N. The Manager’s Guide to Competitive Marketing Strategies. Thorogood, 2006.