Torque – New Zealand in 2005 by Smith Ltd
Torque␣
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Torque was launched in New Zealand in 2005 by Smith ltd, but experienced market failure due to fundamental marketing errors. Therefore, our marketing team has conducted a market analysis and its findings suggest the industry for non-toxic hair care is promising. Consequently, a strategic marketing plan has been created to establish recommendations in order to make Torque a highly successful brand.
Analyses have identified the potential target market entitled ‘young couples with or without children’. Findings suggest that this target market will relate to Torques non-toxic attributes but will also desire traditional hair care attributes. Torques value proposition is “non toxic hair carewithout the compromise”. This resonates with the target market and is consistent with other analyses.
Further analyses based on the projected segmentation details of the target market, combined with macro-environmental and competitor analyses have identified the following in regards to the marketing mix.
Product development will include the use of colour to provide the desired brand image of urban, environmental chic.
Product development will result in increased brand awareness and increased market share through vertical brand extension.
Distribution will combine push and pull strategies through retail and online distribution. ␣
Retail distribution will be through the Foodstuffs Organisation. ␣
Torque will be priced at $9.95, which is consistent with past analyses. ␣
Price detailing includes the use of a differentiation strategy which reflects Torques brand
image. ␣
Promotions through T.V advertorials and radio have been identified as effective in reaching
Torques target market. These avenues allow Torques value proposition to be obtained by
the consumer. ␣
Package design and vendor relationships will also act as important promotional tools.
If the strategic marketing plan is followed it is estimated that the following Objectives will be met within the first year of production, these objectives include:
A net profit of $1,118,535.248. ␣
75% brand awareness within the target market.␣ ␣
A␣gain of 40% of the non-toxic hair care market share. ␣
A further10% increase in sales due