Product Safety and Preemptive Recalls Case Study Solution
Geographic Segmentation
Geographic segmentation refers to the weather and climate of the market it is dealing with and the targeted region. It can be local, international, in some specific countries or globally. Different plans are made according to the region and climate.
Demographic Segmentation
Demographic segmentation is done, taking into account the age, gender, income, and marital status. Babson can segment the market according to age as well. In this segment, the main target of Babson is the adult people aging more than twenty years.
Also, as the population is increasing in the developing countries, it can invest more in these countries. The middle class is also expected to increase gradually in Asian countries like China and India, so it can focus on targeting these markets.
Psychographic Segmentation
The psychographic segment includes consumer’s values and beliefs and their activities. In this segment, Babson can target health conscious people. Other than this, because of the awareness among the people about the healthy diet, people are shifting to more healthy supplements. The company meets the demands of different segments by constantly researching these segments and their trends. Susan can use both qualitative and quantitative analysis to evaluate the demand of its customers.
Behavioral Segmentation
The behavioral segment takes into account the benefits, patterns, and rates of usage of products. For example, PediaBoost is made specifically for children and for those mothers who want more benefits. It includes all the healthy ingredients and many nutrients that help the baby to grow healthy.
Marketing strategy:
Positioning
Pedia Boost is a leader of food supplement and it has always been positioned through communicating high quality, natural characteristics, the use of natural ingredients and the use of ethically processed manufacturing of the supplement. PediaBoost has acquired a unique position within the market and it has a longer shelf life allowing it to be preserved for longer durations. It has also been recommended by many gurus therefore the product is already in a strong position to grab the attention of the market.
Product
Pedia Boost has developed a good mix of nutrients, which covers all the main areas of the detoxification diet. It is refreshing, pure, healthy and safe for the consumers. The company has plenty of spare capacity to offer a product line extension and supply PediaBoost in different sizes. The elegance and shape of the product arean easily recognizable feature therefore it can be launched in an elegant shape to appeal the market to a greater extent(DuBois, 2011).
Pricing
A competitive pricing strategy can be adopted by Susan that can be offered in all the cities of the countries where this product will be launched. The company can keep checking on the distributors to maintain a stable price of PediaBoost. The cost-based pricing will be reflected in the prices of this product.
Distribution
The company can use intensive distribution strategies to distribute this product as well as the majority of its products in the market. Timely supply of the products is extremely important for any company; therefore, it should follow an intensive distribution strategy(Manuell, 2017).
Arguments:
According to the research of market, it has been stated that the motive of the PediaBoost is the promotion of healthy style of life of adults. As adults are the new targets for the marketing of their product. However, in adults there has been no reduced effect of shots of flu evidenced. Thus, there are a number of arguments:
- If the research of market has mirrored true image of the product?
- Is there a need of another segment to be targeted by PediaBoost and what will be its effects?
- What alternative should consumers pursue after being aware of the drawbacks of shots of flu?
- What is the level of competition in the market? Is the brand strong enough to compete in market?
Reasons and Rationalizations:
In spite of the fact that PediaBoost has not been evidenced in reduction of effect of shot of flu, it is approved by FDA. Even then, it has been used by many of the diet experts. The product had gain popularity in the product line of infants leading it to its stage of maturity. It helps the product in retaining its market share and in creation of true image of brand.It is to know that effect of flu shot is by detoxification. Thus, the twisting of product will result in an innovative product that can be used to target adults. As the product has reached its stage of maturity, to stay competitive in market the brand should make marketing plan.
Response:
The product PediaBoost has gained popularity in the infants’ product line of supplements. Due to Pedia Boost’s anticipated side effects to adults, there is a need to introduce a product same as PediaBoost but with some modifications. The product should be well designed and effective to hit the market share and popularity in the adult segment. There is a need to develop a strong strategic plan as it is needed for the maintenance of its position in market.
Conclusion:
The brand PediaBoost has been trending in the market for about past two decades. It has gained its product line of infants to the stage of maturity. The product has been used by adults as well for the detoxification purpose but was identified with side effects. Thus, there was a need to develop a strategic plan as well as the twisting of the products according to the needs of adults to gain high market share.
Exhibits
Exhibit 1:
Exhibit 2:
Products of Pediaboost
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