PRODUCT AND PRICING STRATEGIES TO BE A MASSIVE PRODUCT FOR COMPANY P, THAILAND. In this thematic paper, significant characteristics that influence the marketing product and pricing strategies for the new mass product repositioning were investigated. But while masstige product has become more popular among women, although men skin care market.
Consumers pay more for massive product, but their behavior is still highly sensitive to price which is currently working out of economic downturn. Gaining more brand awareness and recognition from the customers is essential for a marketing strategy to influence the customer to buy a massive product.
LITERATURE REVIEW
Demographic, social and economic factor
- Increasing of older population in the country
- Increased upper-income target customers are focusing on masstige market
Masstige” meaning a mixture of mass and prestige to increase their status value at a reasonable price. A "Masstige" brand is named as in the high perception of value position in the higher price that is acceptable, up a level to the mass brand in the same category, but is less level compared to a premium or prestige brand that is lower in price ". The behavior of the middle class society is very price-oriented, while looking for functionality and allowing purchases in extra values.
Market Situation and Consumer Behavioral Factor
- New product development for target market expansion
- Technological Factor result in Quality Product
- Skincare market continually growth
- Successful of Masstige Brands in Asia
- Consumer Behavior
- Price
Female consumers with middle income segment prefer high quality of the product which they can afford in the lower economic condition, then retailers and manufacturers concern about price to minimize cost and maximize benefits. Japanese cosmetic brand creates brand awareness among Shiseido in the origin of Japan, which is now a well-known brand in Thailand. L'Oreal is one of the most famous and best-selling companies in beauty that is present worldwide.
Consumer behavior emphasizes the way in which each buyer, their households and families decide to spend their time, money and effort to get the products or services they want. Many studies show that consumers' decisions after choosing skin care products or services are unpredictable as they are highly selective with various factors influencing their consumer behavior. There are no more competitors in the market and the production size must have greater economies of scale than the reduction in production costs, which will also fit this strategy because it can reduce the entry of other competitors into this market through a price war.
The usage penetration strategy should be tailored to the type of customer in the mass market, but the main concern about this price is that the target customers will not perceive that low price means low product quality, then the value of the product will decrease and will make customers low repurchases. . When a large company that has more product categories can lower prices in the same target market in the cost range that the small company cannot fight for. However, all this concerns the cost of production, competitor's price and product values to set the price.
The product from this case can be positioned in a high value strategy, which in terms of the product is high quality but the cost is an average price for customers who are price sensitive and have an average income.
RESEARCH METHODOLOGY
- Research Selection and Design
- Population and Sampling
- Focus Group Discussion Data Collection
- Ethical Guideline
Recruit participants in a focus group targeting low and high middle income, a total of 24 customers who are separated into three groups, each group consisting of 8 main users who used mass products and mirrored the real target customer. For observation of focus group expressions that the team can see through the other side of the filmed mirror, I can see how the participants interact with my product compared to someone else's product. Focus groups deeply open the minds of customers for insight to share their wording in revealing the information from the focus group discussion.
This study used focus group discussion to clarify acne whitening product attribute, brand awareness, price range, package design and new technology concepts for repositioning acne whitening cream. The question guide created by covering the focus topics and problems led to the explanatory concept and descriptive idea of the participants and all accepted by the team (Krueger and Casey 2009). The main idea was to combine several sections. The time for each section of the focus group discussion is at least one and a half hours.
To accomplish this topic, focus group interview data from 24 participants were collected in October 2015 via focus group interview. Each research topic of this study was included in the focus group discussion guideline with the following questions. During the focus group session, the moderator should not answer questions about the details of the research or the topic of discussion to protect influencing information.
The modulator should follow the procedures outlined in the study protocol to protect participants' confidential information and explain these steps precisely if participants express concerns about their privacy during the focus group discussion.
FINDINGS AND DISCUSSION
Key Components
- Component1: Product and Attribute
- Component2: Brand perception and favourite source of information The interview data indicated that the participants from all 3 groups were
- Component3: Price and packaging component
- Component 4: Advance technological concern
I have used cosmetic products to treat acne…After many brands, Garnier brands are the most effective from the special roll-on container for easy use. -4 days my inflamed acne is reduced which I think is ok… Using sensitive skin products will be important for acne protection. Most of them although the whitening effect should be separate from another product because they want the targeted therapy to be better than all in one e.g.
I love the Acne oil control, I think it's better than the acne whitening cream, but I prefer an anti-acne product that works against redness, I'll definitely use it to reduce the red spots after acne. It is very important for the participant to perceive the brand if they already use that brand before they can use other products of the same brand. 22 out of 24 participants already have experience in reviewing bloggers and tend to trust especially in the younger age group, while in the older age group they will compare between different bloggers before buying.
They want to know the mechanism of action from the product that is reliable for their buying behavior and reliable they suggest that the company should provide a professional consultant to answer their questions; they often go to Watson and ask the pharmacist or look at the review product. This group does not like to use the acne product from the clinic because the doctor gives medicine that causes a dry side effect and they feel that they cannot get rid of acne (the doctor makes them pimple again for their money). If the company sets the price of the product at 850 baht and asks the participants to choose the company's P brand, only 2 people out of 24 people accept this price while the other suggests that this price should be cheaper than an international brand.
But in other groups the mechanism is nice to know, the point they know is emphasized information about the product has a most effective for acne treatment without deep down to mechanism.
CONCLUSION AND RECOMMENDATION
New Market Segmentation In Masstige Product
- Product new positioning;
Acne clear spot essence is a non-medicinal anti-acne product plus anti-red spot and reduces comedone effect after acne therapy with sustainable effect. This product is recommended by skin specialist. Product repositioning of acne clear spot is a product development process to reduce demand risks. After researching the product benefits that the customer is looking for or what the market wants in summary, Acne clear spot's value proposition is quick response antiacne plus anti red spot with protective effect.
From the price strategy, the price of P&B acne clear spot is an average price with high quality, but even cheaper than cosmetics of some international brands, the cosmecuetic products offered in the specialty store, such as Eucerin, another brand called La Roche and Vichy ( skin care products from the L'oreal group). The suggested retail price of P&B acne clear spot essence is more expensive than that of Ganier and Ponds on the mass market. If you compare the quality of the products, Acne Clear Spot has the most efficacy because we have core functional and comprehensive benefits (anti-comedone effects and red spot reduction), followed by La Roche and Vichy which focus on anti-acne products, Ganier, and then Eucerin.
Name for fit this characteristic and distinct functionality; In my opinion, the product name should be changed to "Acne clear spot essence" which emphasizes the quality of the product for acne clear treatment and adds to the benefit of clear red and dark spots after inflammatory acne so that the customers are no longer confused about the pale effect not. . The addition of the name must merge with international company from the focus group desired, such as B company in the USA. Because my company already has a joint venture with this company to create the eastern sources and western blending like Shiseido start. In addition, the acne technology is researched and developed by professional dermatologist of the American board of dermatologists for trends such as Vichy, laroche strategy.
For the brand name decision strategy, suggest the idea of using the mixed trade name of the company and the combination of the name of the individual product, e.g.
Collaborate with influential bloggers
But in the older group, the recommendation is that the company should create the Thai origin that comes from active ingredient, e.g. Emblica extract for specific acne treatment with the blend of the western advanced technology such as the targeting approach, the polyphenol which is specific chemical, acts on specific receptors to reduce the signal of inflammatory and protect signaling against comedone formation. In addition, the website will also function as an online store where customers can buy the acne clear spot product.
Finally, further recommendation is the company can also penetrate product line expansion on whitening cosmetic skin care also for customers who want to brighten skin (but should not combine with anti-acne product) because the whitening segment is the highest demand in Asian consumers from literature review.
Limitations and Suggestion in The Future
-Hill, New York, NY. 2014).[Online] Available at https://dspace.wul.waseda.ac.jp/sem-hirotastudies/.
APPENDICES
Appendix A: Focus Group Question Guideline
Factor of masstige product use
