Utility, Elasticity and Demand

Product Campaign

Identifying the external and internal factors that will affect the demand of the new shampoo will be the key to a strong product campaign. Capitalizing on the product’s current strengths and developing a sound marketing strategy based on those factors will be the ultimate goal to succeed in such a competitive marketplace.

Marketing Strategy

One of the first methods that will be used is to identify the primary and secondary target markets for the new shampoo. The primary marketing segment that is targeted are women ages 15 to 30. The shampoo is specifically formulated and most effective for female hair care. The secondary target will be middle to upper income level men that also take pride in their appearance and hair care and are unable to find suitable hair care products specifically formulated for their needs. As an all-natural shampoo, our product will serve as a worthy alternative to their currently used brands.

Pricing Strategy

Based upon the current market landscape, the new shampoo will be competitively priced at $3 per bottle. This price point is $1 lower than competitor P&G (Clothier, 2010). This initial price offering will create strong demand for our consumers by offering a product comparable with top brands but at a price point that is significantly lower than the top brands.

Distribution Strategy

As an all-natural shampoo, our distribution channels will be retailers who have already proven to capture the business of consumers that are within our target market. The new shampoo will be carried in stores such as Target, Whole Foods and in the online retailers like Amazon. In addition to that, we will authorize independent retailers to sell our products and order directly from our supply. This will serve to remove an extra step that would only add production costs, which we would then pass down to our customers.

Demand Analysis

As stated within our pricing strategy, the new shampoo will be offered at a lower price than our...