Marketing Management

Marketing Management

Launching a new product is always a challenging task because of the differences in how potential customers and the challenges in the business environment, such as government regulation and stiff competition, receive the product. This paper reviews the challenges that a company introducing a new disinfectant may face. The review includes an analysis of the marketing environment, the environmental factors the company should be aware of, and how it will adjust accordingly; a competitive analysis, which includes a minimum of 2 competitors; and a comparison of competitors’ products or services offered. Additionally, the review also contains pricing strategies, distribution methods, and marketing or positioning strategies, how competitors are differentiating themselves, how the company might overcome the challenges in the marketing environment, and how the company might successfully compete in this market.

Marketing Environment

Governments across different countries are currently focusing on improving the hygiene of citizens and encouraging them to sanitize regularly to prevent the spread of the COVID-19 pandemic. The innovative new disinfectant product may be affected by policies in the health sector, such as changes in tax legislation, consumer protection, and tax mandates. The development would also be affected by pricing regulatory mechanisms that dictate the minimum and maximum price. One of the main economic factors that may affect the product’s success is the host country’s economic condition and exchange rates. The host country’s financial markets also affect the ability to raise capital and maintain the production of the disinfectant.

The company also needs to consider the financial condition of the people in the host country when setting prices to increase affordability and create a competitive advantage. The cultural beliefs and values of most of the population in the company’s potential market will also significantly influence the overall perception of the disinfectant. The company, therefore, needs efficient marketing campaigns that deliver touching and significant messages to gain goodwill from the community. The company also needs to consider the perception that the price dictates the quality of a disinfectant. Further, setting high prices may limit affordability, limiting the customer base, while setting low prices may create an impression that the product is of low quality. Therefore, it is essential to ensure that the price ranges are close to what has been set by major competing brands with a reputation for providing high-quality disinfectants.

The main technological factor that could affect the product is internet connectivity, which may require the company to establish a strong presence on the internet by creating social media platforms and posting videos illustrating the efficiency of the disinfectant in preventing the spread of pandemics. The product will also play a significant role in the healthcare sector, hence being influenced by various legal factors such as laws and regulations on safety and health that dictate the recommended quality of disinfectants. To avoid predatory business practices, the company also needs to follow anti-trust laws in the households and personal goods sector. The product’s success is also dictated by how well the customers receive it. Hence, the company needs to consider environmental factors that could affect the brand’s image. For instance, the company needs to ensure they have proper waste disposal to avoid polluting the environment, adapt to the use of renewable energy, and give back to the community through corporate social responsibility.

Potential Environmental Factors Influencing the Company

As mentioned above, the brand will be affected by various environmental factors. One of them is waste management requirements. The company will recycle and reuse the packaging containers to reduce waste. The company will also ensure that the material used to package the disinfectant is environmentally friendly. The second environmental factor is environmental sustainability. Over the past decade, companies have been encouraged to participate in creating environmental sustainability for a better future for the community. The company will adjust by using renewable energy in the production process and engaging in corporate social responsibility activities that enhance sustainability, such as providing internships to the community members around it, planting trees in the community, and sponsoring needy children to have access to education.

Competitive Analysis

The main competitors in the disinfectants market are Dettol and Savlon. Dettol operates globally and has established substantial brand equity globally because it had a monopoly in the antiseptic liquid market before Savlon entered the market. The brand has also established strong customer loyalty worldwide by maintaining high-quality products, hence creating a significant competitive threat to the new disinfectant. Savlon is, on the other hand, a major brand that has acquired a considerable market share in the antiseptic market over the years by providing efficient, high-quality disinfectants at a lower price compared to that set by Dettol. It is thus essential to first consider venturing into markets that these brands have not yet dominated and ensure that customers get value for their money to attract and retain as many customers as possible.

Dettol’s Products, Pricing Strategies, Distribution Methods, and Marketing Strategies

Establishing a solid competitive advantage requires understanding the competitors’ product offerings, pricing strategies, distribution methods, and marketing methods. Dettol offers a wide range of products, including soaps, antiseptics, hand washes, antibacterial wipes, multi-surface cleaning liquid, and antibacterial wipes. They are packaged in different sizes and scents, and each package and scent is priced differently. Customers may also purchase the products in bundles at discounted prices. The hand wash is also provided in a refill at a discounted price. Customers are also offered samples to test the products before they purchase, hence creating customer loyalty. The prices of the products are regularly revised based on market needs. The company also uses the value pricing method, where customers get the best value for what they purchase. The company distributes its products through a common distribution channel with a deep and broad market reach. The main distribution channels are modern trade, a self-service channel, sub-stockist networks in small towns, and direct distributors in significant cities; additionally, the company markets its products through advertisement campaigns.

Savlon’s Products, Pricing Strategies, Distribution Methods, and Marketing Strategies

Savlon, on the other hand, produces disinfectants and germ protection wipes. The pricing strategy includes accommodating mid- and low-income populations. Furthermore, the company has a vast distribution network with many distributors supplying supermarkets, retail outlets, and chemists. The company also distributes its products via online stores such as Amazon. Savlon’s marketing is mainly done through traditional channels, including printing ads in newspapers and magazines with an extensive subscription network.

Dettol’s and Savlon’s Distinguishing Facets

Dettol differentiates itself by maintaining the high quality of its products and regularly revising prices based on prevailing economic conditions. The company has also distinguished itself from competitors by having an extensive product line and customizing products to meet specific needs. The company also increases public awareness by engaging in corporate social responsibility projects worldwide. According to Hanaysha (2018), corporate social responsibility is effective in increasing brand equity. For instance, it organizes health and hygiene campaigns in schools and rural areas, thus creating an image of caring about people’s hygiene. Dettol products also offer value for money because instead of a customer buying two or more products for different uses, they can purchase only one product with many benefits. Savlon is, on the other hand, differentiating itself from other competitors by setting favorable prices for its products. The company focuses on enhancing the affordability of its products to low- and mid-income populations.

Company Strategies to Overcome Marketing Environment Challenges

The company might overcome the challenges in the marketing environment by adjusting its prices to attract customers. For instance, the company may begin by setting low prices and then increase them as the product continues to gain awareness. The company might also partner with retailers in different locations to facilitate the distribution of disinfectants to various places at a lower cost (Huber, 2011). It might also consider selling the disinfectant on online platforms to expand customer reach. Another technique that the company might use to overcome the challenge of intense competition is ensuring that the disinfectant is of high quality and guarantees value for the money spent by customers to purchase it. The company also needs to consider engaging in health campaigns and donating its product to people in need to create a good image and gain the support of healthcare providers, who may then purchase the disinfectant for use in healthcare facilities.

Company Strategies to Successfully Compete In The Market

Although the company will be facing stiff competition from major competitors such as Dettol and Savlon, it might still successfully compete by gaining a large customer base by implementing various strategies. One of the strategies is offering the product at discounted prices to attract customers and create brand awareness. The second strategy is offering high-quality products at an affordable price, hence creating a value proposition that builds customer loyalty and increases sales (Parniangtong, 2017). The third strategy is focusing on markets that the major brands have not yet dominated. For instance, the company may focus on remote areas where disinfectants are gaining popularity due to the COVID-19 pandemic and convince customers that the new disinfectant is the most effective in preventing the spread of COVID-19.

References

Hanaysha, J. R. (2018). Importance of corporate social responsibility in strengthening brand equity. The European Proceedings of Social and Behavioural Sciences. https://doi.org/10.15405/epsbs.2018.07.02.83

Huber, A. J. (2011). Effective brand strategy implementation: Review of literature and avenues for future research. Effective Strategy Implementation, 9-42. https://doi.org/10.1007/978-3-8349-6595-0_1

Parniangtong, S. (2017). Gaining sustainable competitive advantage. Competitive Advantage of Customer Centricity, 1-18. https://doi.org/10.1007/978-981-10-4442-7_1

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In this assignment, you will take on the role of a marketing manager in an existing company. You have been asked to analyze the market (situation analysis) for an innovative new disinfectant to help slow the spread of viruses. Nearly 2 in 3 people have shown a desire to use your product, but 40% of prospective consumers do not believe that your product will be effective. You have a challenge to overcome in the marketplace. The shareholders believe that this is an opportunity in the market.

Marketing Management

As a marketing manager, you face a challenge and an opportunity in the marketplace. Compile a 5-page situation analysis that addresses the following points:

Analyze the marketing environment, including the macroenvironmental factors (e.g., political, economic, socio-cultural, and technological).
Outline what environmental factors you should be aware of and how you will adjust accordingly.
Compile a competitive analysis, which includes a minimum of 2 competitors.
Compare their product or service offerings, pricing strategies, distribution methods, and marketing or positioning strategies.
How are competitors differentiating themselves?
How might this company overcome the challenges in the marketing environment?
How might this company successfully compete in this market?
Submitting your assignment in APA format means, at a minimum, you will need the following:

Title page: Remember the running head. The title should be in all capitals.
Length: 5 pages minimum
Abstract: This is a summary of your paper, not an introduction. Begin writing in the third person.
Body: This begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is five pages. In-body academic citations to support your decisions and analysis are required. A variety of literary sources is encouraged.
Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usages suitable for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-bifurcation.