Red Seal Case Study Solution
Competitor Analysis
One of the major competitors of the Red Seal in the herbal care industry is Green Cross health. The strength of Green Cross is that the company has a large number of outlets in New Zealand and the company offers its products to its customers at a lower cost. The company has a diversified workforce which helps the company to understand the different cultures to work in different countries.(Officials, 2018)
However, the company has a higher turnover rate as well as the high overhead cost, which are considered to be the major weakness of the company. Additionally,Greencorss has limited capital due to which the company is facing cash flows problem also.
One of the key opportunities for the company is to modify its products, which would help the company to improve its customer base and generate more consistent cash flows.The company should also spend on advertising activities in order to improve the consumer base.
As the company has a large number of outlets that would improve the complexity and management issues. Additionally, the company is also facing intense competition, which is considered to be one of the major threats for the company.
Red seal is operating in a limited market, which includes China, Korea, Japan, and Malaysia. However, the company is facing intense competition in its operating market. Additionally, in order to stand out from the competition, the company uses different marketing strategies that provide a sustainable competitive advantage to the company. As the company is operating in a few countries, which enables it to reduce the complexity in its operations and business. Additionally, the company also uses a cost-effectiveness strategy and offers its products at the lowest possible price in comparison to its competitors, which enables the company to maintain and improve its consumer base. The company also uses different advertising and digital marketing efforts in order to maintain its competitive position in the market as well as to reach its targeted consumers. In addition to this, the company is continuously focused on research and development in order to innovate new products and formulas to ensure the premium health of its customers. The company has also built a strong emotional bond with its customers, which has improved consumer loyalty, and has helped the company to maintain its position in the market. (Officals, good health annual report).
Recommendations
On the basis of the above analysis, it is concluded that the company is performing well in its market and maintain a competitive position. However, the company is recommended to expand its business operation and provide high-quality products, which would enable it to improve its position in the relevant market. Another recommendation is that the company should increase its product portfolio without compromising on its product’s quality, which would enable the company to increase its consumer base and build consumers’ trust.
Marketing Communication
Marketing communication uses different marketing channels and tools to communicate with their desired customers. It is the way by which a company communicates a message to its desired market. It includes advertising, sales promotion, direct marketing, interactive marketing, personal selling and plenty more. On the other hand, consumer behavior is all about how a consumer makes the decision to buy any product, what are their needs and preferences. The company has a variety of products in its portfolio that ensures the premium health of its consumers. As the company offers its products at a minimum possible price which refers that the company’s target two income classes i.e., middle and lower class. However, as health care manufactures the company is divided its customers into different groups such as hospitals, wholesalers, retailers, pharmacies as well as the company’s own outlets.The company also uses different marketing activities in order to engage its customers such as in New Zealand the company approaches its target market through TV channels. Additionally, the company also advertises its products through websites and also use informative advertising through which the company provides various knowledge about its products. However, the company has various customer segments whose company’s products for their personal use as well as for further sale. The company sells its products to different hospitals, wholesalers, pharmacists and end consumers so the customers of the company buy the company’s products through the company’s outlet or through different pharmacies and hospitals. In order to make a strong position in the consumer’s mind, the company uses its beans to bar tactic. New Zealand is becoming health conscious and avoiding unhealthy products, therefore, the company is manufacturing healthy innovative products to maintain or increase the consumer base. Moreover, the company differentiates itself from its competitors through persuasive advertisement and uses informative advertisements to connect itself with its customers and tell them that it cares about their preferences. Furthermore, consumer preferences are changing and nutritional factors are considered to be important for the consumers when making a purchase decision, but it was also found that only around one-half of all consumers actually read the products’ labels when purchasing herbal products. Therefore, informative advertisement plays a vital role in capturing health-conscious consumers (officals, EBOS group limited, 2017).
Response to Buying Behavior
Red Seal uses different marketing channels in order to facilitate its customers.Currently, the most important and effective communication platform is digital and social media marketing.Digital and social media marketing allow the company to engage with its customers directly. The company could target billions of people in seconds. Most of the people prefer to buy health care products when they feel sick or at the time of need. The company uses different types of communication in order to communicate to its target markets, such as direct advertising, online advertising and word of mouth, etc. As the company deals in a variety of products, such as supplements, toothpaste, and different herbs, so the company advertises its products in different ways, such as the buying behavior of toothpaste consumers is routine behavior, so the company advertises its product on popular social websites and tv channels. For vitamins and supplements products; the company prefers word of mouth marketing communication techniques in order to influence the impulsive buying behavior of its consumers. Through direct engagement,the company gets to know the consumer’s preferences and their feedback as well……………
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