NCC International Advanced Diploma in Business Consumer Behavior
Maladep: Bristling with problems!
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Table of Contents
Title Page 1
Table of Contents 2
Main Body of the Report
Task 1 3
Task 2 5
Task 3 7
Task 4 10
Task 5 11
Conclusion 12
Main Body of the Report
Task 1 – It has been reported that the population of Hong Kong is 6.9 million, with half being aged 20 to 49 and the remaining 30% being 50 or over. With this large number of population, the market size of Hong Kong were estimated to be more than 91.5 million, being caused by the visits and trips from different countries around the world (2006). Because Hong Kong has a high rate of trade freedom, many products all over the world can be distributed and manufactured in Hong Kong. As such, the total cosmetics and toiletries imports in Hong Kong amounted to USD787 million in 2002, along with the re-export of such products to China, based on their geographical proximity (2003). In relation to such cosmetic products and toiletries are the hair removal and shaving products for both men and women, which are very useful in daily applications. A number of shaving and depilation products are available in the Hong Kong market, including plant depilation creams, hair removal ointments, waxing and epilation strips, hair removal kits, and depilatory machines or gadgets. These products come mainly from exports from the United States, which amounted for nearly 40% in 2005, and included products such as shaving creams, deodorants, soaps, and raw materials for cosmetics and perfumes (2006). However, in Hong Kong, the increase in competition in terms of shaving and depilation products can be observed in terms of hair removal gadgets and appliances, for according to surveys, Hong Kong consumers prefer traditional small appliances with practical use. These consumers, being relatively young and belonging to the new generation of consumers, give more attention to enjoyment of life or staying close to current trends and lifestyles ( 2006). This data is based on the behavior of consumers towards shaving and depilation. In addition, this also leads to the differentiation of the shaving and depilatory markets in Hong Kong. Shaving is the term used when trimming body hair and can be both used by men and women, while depilation refers to the removal of any unwanted hair from the skin of an individual, and can also be used by both genders. However, the use of both terms can be differentiated in both genders, as shaving would be mostly used by men when referring to eliminating their beard and chest hairs, while depilation would be more often used by females, as they would like to permanently eliminate unwanted bodily hairs to be able to show flawless and smooth skins. Given this information, in Hong Kong, the analysis on the market of shaving and depilatory products can be done using the estimated ratio of males and females ranging from the age of 15 to 64 years olds. This data was considered for they would be the potential consumers of shaving and depilatory products. The data is as follows:
Age
Percentage in Total Population
Males
Females
15-24 years
13.1%
445,400
459,300
25-34 years
15.3%
462,000
592,000
35-44 years
18.1%
547,000
698,400
45-54 years
17.5%
594,200
613,400
55-64 years
10.0%
353,500
337,400
*Data: Demographics of Hong Kong 2006 – From ()
From the gathered data, the problems of males regarding hair removal is brought about back and chest hairs, and beards, while the problems of women arise from facial hair, legs and arm hair, and abdominal hair. The data also suggests that transsexuals also have hair removal problems, which are present due to abdominal, chest, and facial hairs. Along with this, the large numbers of visitors and tourists in Hong Kong also contribute to the demand for shaving products and depilators. In this regard, shaving products and depilators become part of the maintenance of the consumers’ daily hygiene, in their desire to look presentable and tidy, which becomes dependent on their performance and relationships with their peers in their working environment.
Task 2 – The process of introduction, adoption, and diffusion of new products in the market involves the process of New Product Development. This process involves the generation of the idea, designing and engineering it, and conducting marketing research and analysis to be able to obtain relevant and credible information regarding the needs of the consumers. This would be essential in fitting the needs of the consumers to the characteristics of the new product. It has been reported that this process is not easy, as it involves the management of change, and requires the scanning of the globe for new insights (1992). In this regard, a particular company must look at markets, customers, distribution channels, marketing techniques, finances, government regulations, forming standards, following standards, and many other aspects (1992). In the introduction of new products in the market, four important aspects must be taken note of, namely, the product, its price, its promotion, and its distribution in the market. The product must be able to suit the needs and preferences of the customers, and involve factors, such as its size, shape, features, and packaging. The price or affordability of the product is also a major factor that must be considered in terms of new product introduction, as the cost in purchasing the product must meet its quality or standard. The promotion of the new product must also be effective, as it must efficiently be exposed to the target consumers. In this regard, the use of the media, advertising, and publicity must be given emphasis. The last aspect to take note of is the distribution of the product, which takes into account the shopping habits of consumers, including the place or the time they purchase the products (2007). In this regard, one or several of these aspect may have failed in the three target markets of Maladep, thus, resulting to failure of the launch of the product.
In the examination or analysis of the failure of Maladep, the adoption of the product in the market must also be given consideration, which emphasizes the behavior of consumers towards a certain product. A number of variables or factors can influence consumer behavior, and includes physiological, psychological, and external factors, such as culture, environment, lifestyle, need, and many others (2007). The behavior of consumers towards a particular product, most especially with shaving products and depilators may seem fragmented, as hair removal practices vary from one individual, or from one culture to another, and depending on the need of the individual. Based on findings, hair removal, especially in men becomes crucial. This is because the change in the lifestyle and influences in the society, such as the increase use of technology and increase in global and international relations enforces the image of cleanliness. In this regard, hair removal, such as beard and underarm hair removal is now part and parcel of daily hygiene in both men and women. In relation to this, the speed of adoption of a particular new product in the market can be done by strategically reaching the customer and by building the company’s reputation in the target market. This can be done either through advertising, publicity, and personal selling. Advertising refers to the paid promotion of goods and services through a sponsoring organization or company. It is the paid communication through which relevant information about the product is conveyed to potential customers (2001). Advertising has three common objectives, namely, 1) conveying relevant information regarding a particular product or service; 2) persuading consumers to purchase the advertised product; and 3) keep the company under the watchful eyes of the public (2002). Another way of speeding the adoption of the new product in the market is through publicity, which is the careful management of a product or service’s means of communication between the company and the general public, thus, featuring an informative process ( 2003). The advantages of publicity include having low costs, and its credibility. Lastly, personal selling is also an effective way, as it pertains to a systematic process of continuous yet measurable methods in which the person selling the product describes the product in such a way that the buyer will be able to visualize how to benefit from the offered product in an economic way. Its main objective is to be able to know the needs and satisfy the wants of consumers effectively, and therefore convert possible consumers into actual and reliable ones ( 2002). These three basic ways may be used by Maladep to be able to effectively reach its consumers.
Task 3 – In assessing the failure of Maladep in the market, one factor that must be considered and taken note of is the hidden psychological motivations and associations, which involves human behavior that is largely influenced by his or her culture, beliefs, perceptions, personality, and environment. In this regard, the problem lies on the fact that Maladep targets males with above salaries and social status, and with occupations such as fashion designers, nursing, and airline cabin crews, who mainly live in urban areas and not in suburban or rural areas. Because the individuals who purchase Maladep belong to this group of individuals, psychologically, the image of the product is being built in such a way that it targets only sophisticated and professional individuals. This builds the image of Maladep in the market to cater to the needs of only working individuals in the urban areas, thus, indicating their status, salary, and achievement in the society. Because of this, the image of Maladep is also geared towards being expensive and suitable to only professional men or males with high status in the society. This is being proven by the fact that there is limited or even lack of sales in the suburban or rural areas, where individuals, especially males work in the farm or have limited resources in terms of using expensive and sophisticated gadgets or products. The failure of Maladep can be also attributed to the increase in the competition in the market, especially in terms of cosmetic products and toiletries. The increase in the variety and number of shaving and depilatory products in the market gave a grave threat to the success of Maladep in the market. However, one of the major causes of its failure is the fact that it has failed to develop the image of Maladep to cater to the needs of the gay population. This is because the company is afraid that developing the image of Maladep to also cater to the needs of the gay market may alienate the male consumers. In this regard, the company made a serious and big mistake because today’s generation has developed to be socially and politically aware of the presence of the “third sex” in the society. In this regard, the society has learned to accept and tolerate gay and lesbian activities in the society, thus, lessening the incidences of gender discrimination in all aspects of the society, such as in the workplace, school, public functions, and many others. As such, gender justice and equality now is being observed in all agencies, with the support of law. The fact that the company failed to develop the image of Maladep to be able to cater to the needs of the gay population resulted to the image of the company as being discriminatory and unfair. In addition, more and more gay individuals are able to express themselves publicly, thus, increasing their population in the society. This means that more and more gay individuals would be purchasing shaving or depilatory products in order to further express themselves and to answer to their physiological and psychological needs.
Another aspect that contributed to the failure of Maladep is brought about by peer pressure and behavioral rituals of consumers. It has been stated that despite the efficient and effective distribution, advertising, and product launch of Maladep, it failed in its home US market, in Italy, and in the United Kingdom. In this regard, the company did not pay particular attention to the value and importance of cross-cultural understanding of consumer behavior. The cultural practices and beliefs in a specific market may be totally different in another, thus, it would be helpful to modify the product based on the needs of its particular target market. As such, hair removal practices in the United States may be completely different from the hair removal practices in Europe, and in this sense, the company should have been more sensitive and observant, given the differences in climate, beliefs, religion, practices, and culture. In addition, it has also been mentioned that the “success” of Maladep lies on its sales from males, who are younger than the average, which is mainly caused by puberty. In this period of human development, growth of hair becomes more active, thus, needing shaving creams and depilatory accessories. However, today’s generation is more expressive in terms of appearance and style, and depending on the belief or practice of the individual. As such, the increase in competition, self-expression, and individualism on the part of consumers may serve to limit the sales and success of Maladep in the market.
Task 4 – Based on the analysis previously done, relevant research must be pushed through in order to make relevant strategies in terms of the re-launch or development of Maladep. One of the research methods appropriate in obtaining relevant data on the failure of Maladep in the market is through the Questionnaire Design and Survey Research, particularly through using multiple choice or dichotomous questions and mail interviews. The use of questionnaires and surveys is appropriate since it is easy to construct, with the rules and principles of construction easy to follow. In addition, the copies of the questionnaire could reach a considerable number of respondents, with responses objectified and standardized, which makes tabulation easy. More importantly, the responses of the participants in the survey are the product of their own will, thus, reducing biases. Another appropriate research method is the Observation Research, which involves recording human behavior with monitoring instruments (2007). In this type of research method, the types of individual purchasing Maladep and other depilatory products would be observed, thus, obtaining relevant data on what characteristics of individuals need the product. The last type of appropriate research method for determining the failure of Maladep in the market is the Motivation Research method. This type of research method is concerned with finding out how the product is seen through the eyes of the consumer, his or her self-image, and the image of the product (2007). In this research method, in-depth interviews can be conducted, thus, through the interview, the researcher would be able to uncover and understand the underlying attitudes of the consumer (2007), including his or her perception with a particular product. In addition, the data can be obtained using attitude measurements, such as the Likert Scale, the Rank Order Scale, and many others. In this regard, concise and consistent view of the research would be made. In relation to the research methods, the sampling frame would be obtained using the quota or the non-probability sampling method, which would allow the researcher to obtain interviews without traveling (2007). Because the target of Maladep is the male consumers, the quota or the non-probability sampling method would be the most appropriate, for not all the elements of the population would be included in the research or the study, which is totally different from the use of the random sampling method, wherein all elements of the population are given equal chances of being included in the research.
Task 5 – Given the information from the previous tasks, I believe that I would be opting to re-launch Maladep in the market, in all three markets, namely, the United States, Italy, and the United Kingdom. This is because the company has been effective and efficient in determining the problems and the limitations of the product, which have caused its failure. Despite the increase in the competition in these markets, the edge of Maladep is its “success” in the gay or homosexual population, which is now continually increasing in all societies. The company and the product itself can target the gay population, thus, further developing the features of Maladep in suiting the needs of the gay population. This can be done through changing the packaging, the advertisements, and the promotion of Maladep. In today’s generation, the products that last long in the market are the products that continually suit the individual needs of consumers, including their cultural, ethnic, and social needs.
The unspoken concerns of the consumers of Maladep may include the increase in its availability in the suburban and rural areas, along with the decrease in price, and the improvement of the image of Maladep that would also suit the image of lower class individuals in the society or the common individuals in the society. In this regard, the image of Maladep must be altered first, such as exposing the product to the rural areas through the change in advertisements or promotions. In these advertisements, the affordable prices and benefits of using Maladep must be emphasized in order to suit the needs of the consumers and change their perceptions and judgment on the product. In the re-launching of Maladep, the Hong Kong market is also included, thus, the company must be able to build the image of the product that would both suit the needs of the male and the gay population. However, in this regard, the Chinese culture has a different perception with homosexuality; thus, the company must come up with alternative packaging and promotions to feature their product. In the aim to re-launch the product, the company can change the attitudes in favor of Maladep gradually, and this can be done through constant exposure of the product in the target market. Primarily, to gradually change the perception of consumers towards Maladep, its image can be enhanced through demonstrations, which can be facilitated by personal sellers and representatives. Second, the image can be effectively enhanced through effective promotions in all aspects of media, including television, radio, and printed ads. Third, sales representatives of the company can travel to far and remote areas for personal selling and introduction of the product. Lastly, the company can also opt to engage in further studies in the field of depilation using Maladep, and present the results of the study in conventions and forums. With these strategies, the product would be able to be accepted by consumers in the market gradually.
Conclusion
From the discussion, it can be understood that Maladep can be a success in the Hong Kong market depending on the dedication and perseverance of the company to rebuild its reputation in its target market. Because Maladep is a male product, which is mainly for shaving and depilatory purposes, Maladep can have the edge in the Hong Kong market due to the continuous fascination of Hong Kong citizens and visitors with using a variety of products in the market. However, failure may also result, as the increase in competition among other companies that manufacture similar products would feature more high quality products than Maladep. In this regard, the strategies proposed would be useful in gradually building the reputation of the company and the product as well.
Credit:ivythesis.typepad.com
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