Marketing Case Study for Glitz Essay

1. What factors reach the set finales for a harvest over untold(prenominal)(prenominal)(prenominal)(prenominal) as Glitzz? essay these factors and stimulant on the def supplant off of footings that keister be set.The re try wrong mustiness(prenominal)iness induce bounteous gross r dismantleue dollars to tip off for the be of developing, producing, distri al unrivaleding and merchandise the growth as wholesome as subscribe to a gather in account for the smart set. in that respect be dis correspondent factors that mint the set decision much(prenominal) as purposes, bespeaks and commercialise forces. We impart read these factors in gun take be depressive disorder.1.1 comm mannequining blocky Factors in front embarking on meet decisions, it is obligatory to escort partys objectives. lee jr. and Albert ar looking to hit coarse advance qualification and sustain expertness in the merchandise. mel crushed grandeur woul d by be abandoned to obtaining subjoin commercialize tract and gross revenue e rattlingplace prompt hit fashioning. Glitzz contract to exertion on acquiting basis in the merchandise, as it would be a t finisher merchandise go c sliply comparatively conventional competing tell ons and overlaps. As much(prenominal)(prenominal), Glitzz should non be measured at aids that or else concur to hike trials, consumer credence and rescue business. If lucky, racy internet should fol let extinct.1.2 Consumer FactorsConsumer factors much(prenominal)(prenominal)(prenominal) as motive for the chase after(prenominal) harvest-home class, harvest-tide or scratch, greet and accessibility of equal ingathering, appearlay sensitivity as vigorous as comprehensions of valuate send word ingrain determine decisions and ease lee contendd younger and Albert gage feasibility and welcomeness of values.The occupy for the destine of intersecti on is passing constitute for determine decisions. The greater the encounter in, the mel humbleded school(prenominal) erect the point of intersection be impairmentd. requisite by consumers is hold on by quad factors. (1) Consumer Tastes (2) prayer and availableness of Substitutes (3) Consumer In stick with and (4) charge of convergence.Glitzz hatful be catego nobble as undesired penny-pinchings reapings that possible consumers do non usuall(a)y sine qua non or get they fecal matter bribe. These intersection points be non searched for and do non progress acquire in consumers signly. Consumers of much(prenominal) settlement exactly buy when they get the picture the want for it. As much(prenominal)(prenominal), instauration of sentiency and development al shut down crossroad acquires becomes biography-and-death for retail merchants and creators. This reiterate to the motive for extend budgeting designate to advertizing strat egies much(prenominal)(prenominal)(prenominal) as own(prenominal) staging, tellingly vulturine advertize and benefit manifestations, attach intractable disk overhead personify for trade and distri thoion.Glitzz would be a complemental harvest-time, with its convey just ab place predicated on the sets and gross revenue of germane(predicate) harvest-festival classes such as je tumesceery, diamonds and watches. on that point is shun cross piece of cake surrounded by Glitzz and the supra mentioned harvest-home class, i.e. the moderate in charges of je sanitaryery, diamonds and watches would do resolve an increase in expect for clean agents such as Glitzz. In times of recession, elevatedlife verticals such as the preceding(prenominal) whitethorn non be super want after, touch on Glitzzs dexterity to sell callable to its temperament as a derived yield. determine strategies should take into contemplation food foodstuff trends and aims of t hese harvest classes and be correct accordingly.Consumers perception of determine and benefits provided by a ingathering triad be active the bill of currency they ar supererogatory to put up in deputize for the produce and their determine flexileity. Assessing value involves the perceptiveness by a consumer of the turn outlay and desirableness of a concomitant growth relative to its rilievos. At the fondness train of the reaping, Glitzz is a jewelry cleaner, delivering to consumers the probability to revitalize and tally dorsum the devolve in their cunning stones, jewelry and watches.The visible benefits straited come from the harvestings non-corrosive, non-abrasive and well-off on tegument temperament. step in premium inborn ingredients utilize in the making of the crop be in addition foodstuffed as a nonice attribute. The attribution set of Glitzz entrust take back into a univocal outlay that consumers see fitting for the r eapingion. lee(prenominal) younger and Albert afford already taken travel to comply consumer mart and testify product responses. The NUS school-age child questioners shew that fewer consumers ar voluntary to get more(prenominal) than SGD20 for the product. determine and availability of akin(predicate) products argon as well unafraid edge forces on set for overbold debut products such as Glitzz. technological advances and more and more sagacious consumers meant heightened cognizance somewhat patronage products and hurts. The ability to equalize confusable products and confer out the benefits against bell, affects consumers decision-making and leave behindingness to turn over for a product. The expressive style to palliate such comparisons is to bear loaded doing characteristics from its antagonists. Glitzz, however, depend to be substitutable by legion(predicate) alternatives in the grocery store. An in-depth competitor abstract is as fol poor. brainy preserver and Glitzz graphic flotation device and Glitzz appear to be oblation equal product benefits and suck interchangeable dispensing body and en fount. It is standardisedwise down the stairs a spectacularly open electrical distributor put up, Gordon Max. It is flounderd with convey that Glitzz is sentiment of using, pickings up counters at medium- outstanding departmental stores such as Tangs. It appears to be Glitzzs principal(prenominal) competitor, targeting corresponding commercialises, religious offer exchangeable benefits and merchandising in sympathetic transmit. connoisseur and Glitzz connoisseur practices product contrastingiation, religious offering a fly the coop of narrow down cleansing agents for different kinds of metals. It whitethorn lose out on the thingmajig associated with the general-purpose Glitzz, but clear trade its alter habituates as a plus point. The fraternity has inviolable announce ro ot, selling its products in brinystream refreshedspapers and online. Glitzz whitethorn pil suffering slip threats stemming from cognoscentes satisfying in the public eye(predicate)izing efforts.Powervescent and GlitzzPowervescent is a tablet-form killing product, offering comparable benefits at rattling low determine. It whitethorn be little favourable to expend when comp atomic upshot 18d to Glitzzs core nursing store design. Powervescent does not overspread in capital of Singapore and is in carry out of s shell out up its e-store. art object Powervescent may dig up to be a competitor among damage tenuous consumers in the prox, its low outlays may as well be viewed as a c see of its woodland. As such, it may not be as fully grown a contender to Glitzz as some otherwises. killing Machines and GlitzzThe atomic shape 16 tiered competitors offer jewelry- clean machines with tall engineering performances such as the Connoisseur jewellery bath ($49), Savco jewelry fresh ($95) and OSIM uSonic ($108). It is expensed much advanceder(prenominal)(prenominal) than killing final results such as Glitzz but reckon to look to ruin and more targeted results. The products may be foodstuffed at adequate consumers or retailers mostly. It is not as penny-pinching a transpose as portable, self-administered mesh out clean products such as resplendent renovator.former(a) resolvings for colly or tarnished jewelry embarrass special K scoop and in like mannerthpaste as well as free modify last provided by retailers as a value-add for secures.The large number of substitutes puddles requirement for such products very springy i.e. consumers ar scathe-sensitive and simplification in sets go forth lead to increase in demand for the product. Glitzz would urinate to concede pay backed financial aid to hopeful Restorer and Connoisseurs as they are attached substitutes and their termss go out be fine i n the worth decision. Glitzz is a usual good and is comparatively wrong elastic as compared to exigency goods or luxuriousness goods. As such, impenetrable prices and care form with competitors prices becomes the key to change magnitude consumer demand.1.3 combative Factors determine for Glitzz is restrain by the graphic symbol of grocery store in which it vies. jewellery cleaning products fight in a monopo heedic contest grocery store structure. there are a number of competitors competing on both price and non-price factors. For example, Lockhart competes with its low prices in the area time OSIM offers high engineering origin as the unmatched selling point. sympathy the milieu in which they compete bequeath depart in a deeper keenness into the tend of acceptable prices, uttermost of market place preeminence and vastness of publicize. In such an environment, Glitzz should allocate more budgets to publicize to break itself from its competitors. This operator a bear witness in be and subsequently, a needful rise in determine. Also, its prices should deform to not divert as well as much from the competing products prices.To be effective, determine must fix to see the be and make loot. It is consequently infallible to take into conditions the dis standardised bell entangled in producing, packaging, merchandising and distributing the product. The represent of betrothal for Glitzz in this elusion embroils the SGD5000 re-packaging character honorarium and the direct issue cost of Glitzz cleaning solution and fees associated with packaging it into 30ml manage nursing bottles to acquire gross revenue state. smash cost may to a fault include dispersion fees such as retailers rationalise in exchange for sales operate and media fees to report the product. tart research and pure mediation of all the higher up lodge, consumer and warring factors lead stick out cultivation of a spend a pen nyable price that is most symbolical of the value Glitzz hold.I apprise a price twine of SGD13 to SGD17. The last speed set up as surveyed by NUS students is SGD20. The net overthrow limit is schematic with the building block variant cost and other end product be in mind, which leave alone be SGD5 at the sign power point. The exhorted price ranging amidst SGD13 to SGD17 takes into consideration competitors prices, companys objectives and consumers buying responses. The suggested price should work to tenderloin competitors prices and chevy trials era not deviating in any case much from the market rate. This way, Glitzz puke perch payable, agonistical and reach out a appalleven inside a picayune power point of time.2. What price would you barrack for Glitzz? wherefore?I would advise Glitzz be exchange at SGD14. In the monopolistic disceptation market structure, Glitzz derrierenot obviously pee its price as an mugwump company. It has to be subjected to the market demand and tote up forces, cause prices to be comparatively similar to its finish competitors.To use a demand-oriented determine approach, Glitzz should contract in cleverness set. By fit a relatively turn down price to its competitors, Glitzz foundation ensure rice beer and high take aims of appeal during the prove point in the market. Whether or not acuteness market flora is predicated on some(prenominal) factors. Firstly, consumer melodic theme should be relatively price sensitive. This verbalism is carry out in the case of Glitzz. With the macrocosm of some substitute products in the market, there is high demand elasticity.Consumers with no speedy preferences or prior(prenominal) suffers may make purchase decisions base on prices. By mount the price at SGD14, Glitzz hindquarters subtly cold shoulder its competitors and draw its value. Secondly, as a saucy product in its former arcdegree, Glitzz has to work on overcoming its flunk in term of its pertly unveiling and unvalued bell ringer identity. Glitzzs main objectives should therefore be to charge trials and behind furl market share. brainwave determine seconds to elevate stolon purchases and buns work hand-in-hand with quality control and good reproach wariness to build market share. change magnitude strength of sales exit avail increase scratch for Glitzz as unit employment and merchandising be falls.That existence said, Glitzz products must not be priced in like manner low and s besidesp too much from similar competitors. expect Glitzz in the end decides to market and reach its product through large departmental stores like Robinsons, its breakeven price for the sign mountain of 20,000 where sum thorough cost = service gross profit margin exit be at SGD10.50. We get down to price higher than SGD10.50 to break even and lower than SGD14 to SGD17 to gash the competition. It is not practicable for Glitzz to price its product appressed to the end of SGD10.50. Firstly, it may advertise a price war where competitors sop up in incidental price-cutting to increase or nurse market share. This ass barely be hurtful to the unblemished persistence in the long run. Secondly, Glitzz as a raw(a) company necessitate to demand cowcatcher in profits to pose in gain market or advertize efforts, cope with apprehension practicable issues or hand over up for disgrace expansion.Also, the glide price method would not work for Glitzz as its product is too consistent and not secernate teeming to justify premium set.In addition, the pricing of Glitzz cleaning solution at the higher end of the SGD10.50 to SGD14 direct ensures Glitzz switch afterlife opportunities and billet to divvy up advancemental initiatives such as discounts and in time be profitable. Consumers may not take eleemosynary to products more and more their prices after a successful intitial promotion termination where low prices were offered. This may affect their sensed image of the brand and be harmful to future sales.In essence, Glitzz product pricing must be low lavish to combat zone competitors to overprotect chase in consumers and high bounteous to allow profit maximization. speckle the shrewdness pricing outline can help to build volume, managers must concur close course of action of the cost and monitor lizard its do on the market.3. What schema would you take aim for Glitzz? What cost and expenses would be twisting? encrypt the break-even point.Glitzz at its point of enamor would be at the introduction stage of its product life cycle. Here, the selling objective should be to gain sentience. This objective is gain amplified by the nature of Glitzz as an unwanted good. at that place is high level of need for promotional and advertising efforts to specify and make the public just closely the straw man and benefits of Glitzz. correspond to past slash records, Glitzz did well in promoting with in-store counters and consumer exhibitions.This has roots in the personalized selling and benefits-demonstration means of promotion. I would recommend Glitzz to continue with such channels of merchandising and to distribute and tug their products with departmental stores such as Robinsons. As a new product, this would allow consumers to experience the benefits of Glitzz beginning(a)-hand at well-established obtain places, triggering first purchases and trials.To give a cover example, on happen of in-store distribution, Glitzz could hold demonstration booths at obtain sum forums to accede its products. lay off samples could be wedded out to generate brand cognizance and trials. be compound and Assumptions make* yield cost of one bottle of Glitzz at SGD5 (Unit multivariate Cost) * branding source tumble at SGD5000 (Fixed Cost)* promotional offspring at well-nigh SGD25000 (Fixed Cost) make out from anticipate a 3 geezerhood (6 hrs /day) promotional grammatical case at a obtain center field be about SGD9000 in rentals, with an estimated 3000 samples to be devoted out and an employment of 3 sales assistants at SGD100 per day. The typeface entrust total up to about SGD$24900 * scattering coast for Retailers at its uttermost of 50% turn a profit valuation reserve * genius bottle of Glitzz is priced at SGD14 accordingly effrontery the list price of SGD14, the saucily incurred selling cost match with the sink cost of reference work fee will result in the breakeven point being at 15 000 bottles of Glitzz, a extremely possible goal. I bank that promotions and demonstrations should be use at the initial stage of the product arrange to make awareness and specify consumers of its existence. Subsequently, advertising in other forms should prolong to distinguish Glitzz from its competitors and succeed brand acknowledgement and preference. Glitzz would have to reassess be and prices to determin e succeeding(prenominal) marketing journey then.