Strategic Insights for Desigual: Segment Targeting, IMC Blend, CSR, and Pricing
Task: How can companies like Desigual effectively target market segments, utilize integrated marketing communication strategies, implement corporate social responsibility initiatives, and determine appropriate pricing strategies?
Defining three clear segments
Grounded on the aim of Desigual to establish a stronger presence in the Australian apparel industry, it's essential to identify and define three clear sections using the four segmentation approaches.
Segment 1 "Fashion-forward Millennials"
This part can be defined using demographic, geographic, psychographic, and behavioural segmentation. The name for this part is" Fashion-forward Millennials."
? Demographic - This segment comprises the young generation aged between 20- 35 years old, with a high-income position, and are likely to be well-educated.
? Geographic - This segment is located in metropolitan and suburban areas, with a high population number.
? Psychographic - This part values fashion, social media, and technology, and is socially active (Tardy et al., 2023).
? Behavioral - This segment is willing to spend on fashion products, are early adopters of new trends, and prefer to shop online.
Segment 2 "Outdoor Adventurers"
This segment can be defined using geographic, psychographic, and behavioural segmentation. The name for this segment is" Outdoor Adventurers."
? Geographic - This segment is located in indigenous areas, near public premises or out-of-door recreational areas.
? Psychographic - This segment values health and fitness, and environmental responsibility, and enjoys outside conditioning similar to hiking, camping, and sports.
? Behavioural - This member spends on out-of-door gear and apparel and prioritizes comfort and endurance (Wen et al., 2019).
Segment 3" Smart Savers"
This segment can be defined using demographic, psychographic, and behavioural segmentation. The name of this member is "Smart Savers."
? Demographic - This segment comprises individuals aged between 25- 50 years old, with a moderate-income position, and are likely to be family-oriented.
? Psychographic - This segment values practicality, and affordability, and prioritizes quality over brand names.
? Behavioural - This segment is likely to compare prices and stay for discounts and deals before buying.
Identify the market segment you will target and justify why
Of the three identified segments, I recommend that Desigual target the "Fashion-Driven Millennials" segment of the Australian clothing market.
This segment includes young people aged 20 to 35 with high income, living in urban and peri-urban areas and being socially active. They appreciate fashion, social media and technology, and are willing to spend on fashion products. As early adopters of new trends, they can influence the purchasing decisions of their peers (Ahani et al., 2019). Desigual can meet the needs of this segment by providing stylish and unique clothing that matches their fashion choice (McDonald & Gao, 2019). They can leverage social media platforms and influencer marketing to reach this segment as they are very active on social media. Additionally, by providing a seamless online shopping experience, Desigual can appeal to the digital nature of this segment.
By targeting the "Fashion-Driven Millennials" segment, Desigual can penetrate a growing market and build a strong presence with young people who are passionate about fashion, this will help increase brand awareness, loyalty and revenue.
Define and justify a buyer persona from the target market you have identified.
Occupation: Marketing Manager
Income Level: High
Location: Urban area
Interests: Travelling, digital media, technology and shopping
Shopping Behavior: Likes to do online shopping, have a unique eye and value for trendy and good clothes, and is ready to spend on products which offer high quality and worthiness
Sophia is a successful young marketer who appreciates and enjoys social media and fashion. She is active on Instagram and various Instagram-like platforms and finds some motivation through her engagement with fashion bloggers and influencers. She is ready and wholeheartedly to spend on quality products and is constantly searching for distinctive and fashionable outfits to add to her wardrobe (Rauschnabel et al., 2022). Sophia places high significance on comfort and effortless online buying experiences. She values businesses that provide a broad range of clothing alternatives and takes into account all body types and sizes.
By providing Sophia with distinctive and cutting-edge clothing that fits her sense of style, Desigual can attract her business. Sophia can be reached and brand awareness increased by Desigual by utilising social media platforms and collaborating with influencers. Offering Sophia a user-friendly website with tailored recommendations and a simple checkout procedure can appeal to her digital expertise and improve her buying experience. Desigual may understand their target market's interests and desires better by developing buyer personas like Sophia (Jansen et al., 2020). They can then modify their marketing methods to successfully reach and appeal to this group.
The integrated marketing communication blend (IMC) may be a set of different communication devices that work together to convey a reliable message to the target gathering of people. The IMC blend comprises a few components, each of which plays an imperative part in making an effective promoting campaign (Hutasoit, 2022). In this reaction, I will clarify each component of the IMC blend and give a case of how Settle has successfully utilized each component in their promoting efforts.
Publicizing is the foremost well-known component of the IMC blend, and it includes utilizing mass media to convey a limited-time message to the target group of onlookers. Settle is known for their exceedingly successful publicizing campaigns that utilize passionate requests to associate with their clients. For case, the "Have a Break, Have a KitKat" campaign could be a classic illustration of Nestle's viable promotion (Le Pechoux et al., 2022). The campaign's message was basic, catchy, and resounded with the group of onlookers, driving an increment in deals and brand recognition.
Deals advancement includes advertising motivations to clients to empower them to buy items. Settle has successfully utilized deal advancements to extend deals and brand devotion. One illustration is the "Nestle Crunch Super Bowl Sweepstakes," where clients were energized to buy Nestle Crunch bars for a chance to win a trip to the Super Bowl (Woolhandler et al., 2021). This advancement successfully expanded deals and energized clients to lock in with the brand.
Open relations (PR) include building a positive picture for a brand through media scope, community outreach, and other communication endeavours. Nestle has viably utilized PR to construct a positive picture for their brand. For illustration, Nestle has joined forces with natural bunches to advance sustainable farming hones and has executed capable sourcing approaches for their items (Nestle et al., 2020). These endeavours have made strides in Nestle's notoriety and have made a positive picture for the brand.
Individual offering includes utilizing face-to-face communication to induce clients to buy items. Whereas, Nestle does not regularly utilize individual selling, they do have a group of deals agents who work straightforwardly with retailers to guarantee that Nestle items are successfully promoted and shown.
Coordinate promoting includes sending limited-time messages straightforwardly to clients through the mail, e-mail, or other shapes of communication. Nestle has viably utilized coordinated showcasing to promote new items and lock in with clients. For case, they have utilized e-mail campaigns to offer elite rebates and promotions to customers who sign up for their email list (Johnson & Duckett, 2020). This procedure has successfully expanded deals and empowered client engagement.
Advanced showcasing includes utilizing online channels to advance items and lock in with clients. Nestle has successfully utilized advanced showcasing to associate with clients and advance their items. For case, they have utilized social media stages like Instagram and Facebook to share lock-in content and interface with clients on a more individual level (Saura, 2020). They have too utilized online promotion to advance modern items and drive deals.
In conclusion, the coordinates showcasing communication blend could be an essential component of any effective showcasing campaign. By successfully utilizing each element of the IMC blend, Nestle has been able to form fruitful promoting campaigns, increment deals, and construct a positive picture for their brand. From publicizing and deals advancement to open relations and advanced promoting, each component plays a crucial part in conveying a reliable message to the target gathering of people and building long-term client connections.
Explaining two corporate social responsibilities for the organisation
As the marketing manager of Hyundai Australia, I believe that it is significant for our association to fulfil our corporate social obligations towards society. Two of the foremost critical corporate social responsibilities that we must address are environmental sustainability and community advancement.
Firstly, Hyundai Australia must prioritise the sustainability of nature by executing environmentally-friendly practices in our fabricating forms and advancing the utilisation of hybrid and electric vehicles. Able to engage in exercises such as tree ranch drives to diminish our carbon impression and back maintainable improvement (Cheema et al., 2019). By centring on the sustainability of nature, we not as it contributed to a cleaner and more beneficial environment, but we too advance brand dependability among clients who prioritize environmentally-conscious companies.Furthermore, Hyundai Australia must contribute to community improvement by supporting local communities through different activities such as instruction, healthcare, and social welfare. We can take an interest in community benefit exercises and support occasions that advantage underprivileged bunches (Ferrell et al., 2019). By supporting community improvement, ready to fortify our brand picture and create a solid association with our clients, who appreciate socially capable companies.
Justifyingthe selection of strategies
I have chosen sustainability of nature and community improvement as the two corporate social duties for Hyundai Australia for a few reasons.
Firstly, the sustainability of nature is a progressively imperative issue all-inclusive. We can attract environmentally concerned customers and help create a cleaner, healthier world by using environmentally friendly practices in our manufacturing processes and promoting the use of hybrid and electric automobiles as customers are becoming more environmentally conscious and are prepared to pay more for environmentally friendly products (Bibri et al., 2020). Additionally, by diminishing our carbon footprint, able to decrease our working costs, which could be a win-win circumstance for both our association and the environment.Besides, community improvement is a vital viewpoint of corporate social duty, because it helps to strengthen the bond between our association and the communities in which we work. By contributing to neighbourhood communities through activities such as instruction, healthcare, and social welfare, we can make a positive brand picture and create a faithful client base (Hanelt et al., 2020). Moreover, by supporting underprivileged bunches, we will contribute to the improvement of society, which is a basic viewpoint of being a mindful corporate citizen.
Your boss would like to see if the company could use the same CSR strategies in India. Would you recommend the same strategies? You need to explain your answer and justify why you think the same strategies can/cannot be used in that country.
Whereas environmental sustainability and community advancement are imperative angles of corporate social obligation that can be actualized in any nation, the methodologies utilized may have to be adjusted to suit the particular cultural and financial conditions of the nation. Within the case of India, there are a few components to consider when choosing whether to execute the same CSR methodologies as those utilized in Australia (Hill et al., 2020). Firstly, India could be a quickly creating nation with an expansive populace, and as such, there are numerous social and financial issues that got to be tended to. Whereas community advancement activities such as instruction and healthcare are critical in India, there may be different areas of the centre that are more squeezing, such as destitution easing and work creation (Barocas et al., 2020). Therefore, while community advancement can be a key CSR methodology, the particular activities may get to be custom fitted to the requirements of the nearby community.
Furthermore, India may be a nation with a wealthy social legacy, and natural maintainability activities may have to be taken into consideration. For case, whereas advancing the utilisation of hybrid and electric vehicles could be a great way to decrease our carbon impression in Australia, in India, where the utilisation of elephants as a mode of transportation is still predominant in a few zones, it may be more viable to centre on reducing air contamination in cities through activities such as advancing the utilize of open transportation and decreasing industrial emissions.
Explaining three different pricing strategies.
There are a few diverse price estimating procedures that companies can utilize to set the cost of their items. Three common estimating techniques are:
Cost-based price estimation: This includes setting the cost of an item based on the fetch of creating it, and a markup to cover overhead costs and benefits. For case, if the fetching of creating a Solid Chicken Serving of mixed greens at Hungry Jack's is $5 and the company needs to create a 20% benefit, the cost of the serving of mixed greens would be set at $6.
Value-based price estimation: This procedure includes setting the cost based on the seen value of the item to the client. For illustration, if Hungry Jack's accepts that clients put high esteem on the well-being benefits of the Healthy Chicken Salad, they may be able to set the next cost for the salad than they would for a less solid thing on the menu (Choi et al., 2020).
Dynamic price estimation: This procedure includes altering the cost of an item based on changing advertising conditions, such as supply and request. For illustration, on the off chance that the request for the Healthy Chicken Salad is high at certain times of the day, Hungry Jack's may be able to charge the next cost during those periods.
Use each of the strategies to suggest a certain price. You also need to justify why you have chosen each of those prices.
Cost-based estimation of price:
The cost of creating a Healthy Chicken Salad at Hungry Jack's is $5. Considering a 20% markup to cover overhead costs and benefits, the cost of the serving of mixed greens would be set at $6. This estimating procedure guarantees that the company covers its generation costs and produces a reasonable benefit edge. Be that as it may, it does not consider the esteem of the item to the client or the estimating techniques of competitors.
Hungry Jack's can set the next cost for the Healthy Chicken Salad if they accept that clients see high esteem within the well-being benefits of the salad. For illustration, in case clients see the salad as a more beneficial choice compared to other things on the menu, the company can set a cost of $8, which is $2 higher than the cost-based estimating methodology (Ranjan & Jha, 2019). This estimating procedure takes into consideration the customer's discernment of the item, which can increment the seen esteem and readiness to pay.
Dynamic price estimation:
Amid crest periods, such as lunchtime or early evenings, requests for the Healthy Chicken Salad may be high. To capitalize on this request, Hungry Jack's can charge a better cost, such as $9 or $10, for the serving of mixed greens. This energetic estimating methodology takes advantage of the customer's eagerness to pay amid periods of high request and can increase income for the company.
By and large, the finest estimating strategy for the Healthy Chicken Salad at Hungry Jack's would be value-based estimating, as this methodology considers the seen esteem of the item to the client. If Hungry Jack's can position the salad as a more advantageous alternative compared to other things on the menu, clients may be willing to pay a premium cost for the item (Rosenbloom et al., 2020). In any case, the company ought to also consider the estimating strategies of competitors and showcase conditions sometime recently setting the ultimate cost.
Considering main competitors, Subway and MacDonald’s, in the Australian fast-food market, which of those prices is recommended? Justifying the choice.
After analyzing the three pricing techniques and taking into consideration the competition, I would prescribe the Infiltration Estimating methodology. By pricing the Healthy Chicken Salad lower than the competitors' costs, Hungry Jack's can draw in more clients and pick up advertising share (Li et al., 2019). This will permit the company to set up a faithful client base, increment deals volume and accomplish economies of scale. Subway and McDonald's both offer salads, but their costs are higher than what we are proposing for our Healthy Chicken Salad (Ban &Keskin, 2021). Concurring to a ponder conducted by Canstar Blue in 2021, Subway's salads extend from AUD 7 to AUD 11, and McDonald's salads extend from AUD 9 to AUD 12. In comparison, our recommended cost of AUD 6 for the Healthy Chicken Salad will be more appealing to price-sensitive clients.
Moreover, as clients ended up more health-conscious, the request for solid nourishment choices is expanding. Hence, by advertising a healthy salad choice at a lower cost, we can separate ourselves from our competitors and cater to this developing request (Zhang et al., 2019). By utilizing the Penetration Pricing procedure and pricing the Healthy Chicken Salad lower than our competitors, Hungry Jack's can draw in price-sensitive clients, pick up showcase share, and separate itself from competitors by advertising a more advantageous nourishment choice.
Ahani, A., Nilashi, M., Ibrahim, O., Sanzogni, L., &Weaven, S. (2019). Market segmentation and travel choice prediction in Spa hotels through TripAdvisor’s online reviews. International Journal of Hospitality Management, 80, 52–77. https://doi.org/10.1016/j.ijhm.2019.01.003
Ban, G.-Y., &Keskin, N. B. (2021). Personalized Dynamic Pricing with Machine Learning: High-Dimensional Features and Heterogeneous Elasticity. Management Science, 67(9), 5549–5568. https://doi.org/10.1287/mnsc.2020.3680
Barocas, S., Selbst, A. D., & Raghavan, M. (2020). The hidden assumptions behind counterfactual explanations and principal reasons. Proceedings of the 2020 Conference on Fairness, Accountability, and Transparency. https://doi.org/10.1145/3351095.3372830
Bibri, S. E., Krogstie, J., &Kärrholm, M. (2020). Compact City Planning and Development: Emerging Practices and Strategies for Achieving the Goals of Sustainable Development. Developments in the Built Environment, 4, 100021. https://doi.org/10.1016/j.dibe.2020.100021
Cheema, S., Afsar, B., & Javed, F. (2019). Employees’ corporate social responsibility perceptions and organizational citizenship behaviors for the environment: The mediating roles of organizational identification and environmental orientation fit. Corporate Social Responsibility and Environmental Management. https://doi.org/10.1002/csr.1769
Choi, T.-M., Guo, S., Liu, N., & Shi, X. (2020). Optimal pricing in on-demand-service-platform-operations with hired agents and risk-sensitive customers in the blockchain era. European Journal of Operational Research, 284(3), 1031–1042. https://doi.org/10.1016/j.ejor.2020.01.049
Ferrell, O. C., Harrison, D. E., Ferrell, L., & Hair, J. F. (2019). Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95(1), 491–501. https://doi.org/10.1016/j.jbusres.2018.07.039
Hanelt, A., Bohnsack, R., Marz, D., & Antunes, C. (2020). A systematic review of the literature on digital transformation: insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), 1159–1197. https://doi.org/10.1111/joms.12639
Hill, A. D., Johnson, S. G., Greco, L. M., O’Boyle, E. H., & Walter, S. L. (2020). Endogeneity: A Review and Agenda for the Methodology-Practice Divide Affecting Micro and Macro Research. Journal of Management, 47(1), 105–143. https://doi.org/10.1177/0149206320960533
Hutasoit, M. F. (2022). HUMAN RESOURCE MANAGEMENT OF PT. NESTLE INDONESIA PANJANG FACTORY LAMPUNG, INDONESIA. Economic Management and Social Sciences Journal, 36–44. https://doi.org/10.56787/ecomans.v1i2.2
Jansen, B. J., Salminen, J. O., & Jung, S.-G. (2020). Data-Driven Personas for Enhanced User Understanding: Combining Empathy with Rationality for Better Insights to Analytics. Data and Information Management, 4(1), 1–17. https://doi.org/10.2478/dim-2020-0005
Johnson, D. A., & Duckett, L. J. (2020). Advocacy, Strategy and Tactics Used to Confront Corporate Power: The Nestlé Boycott and International Code of Marketing of Breast-milk Substitutes. Journal of Human Lactation, 36(4), 568–578. https://doi.org/10.1177/0890334420955158
Le Pechoux, C., Pourel, N., Barlesi, F., Lerouge, D., Antoni, D., Lamezec, B., Nestle, U., Boisselier, P., Dansin, E., Paumier, A., Peignaux, K., Thillays, F., Zalcman, G., Madelaine, J., Pichon, E., Larrouy, A., Lavole, A., Argo-Leignel, D., Derollez, M., &Faivre-Finn, C. (2022). Postoperative radiotherapy versus no postoperative radiotherapy in patients with completely resected non-small-cell lung cancer and proven mediastinal N2 involvement (Lung ART, IFCT 0503): an open-label, randomised, phase 3 trial. The Lancet Oncology, 23(1), 104–114. https://doi.org/10.1016/S1470-2045(21)00606-9
Li, G., Li, L., & Sun, J. (2019). Pricing and service effort strategy in a dual-channel supply chain with showrooming effect. Transportation Research Part E: Logistics and Transportation Review, 126, 32–48. https://doi.org/10.1016/j.tre.2019.03.019
McDonald, R., & Gao, C. (2019). Pivoting Isn’t Enough? Managing Strategic Reorientation in New Ventures. Organization Science, 30(6), 1289–1318. https://doi.org/10.1287/orsc.2019.1287
Nestle, U., Schimek-Jasch, T., Kremp, S., Schaefer-Schuler, A., Mix, M., Küsters, A., Tosch, M., Hehr, T., Eschmann, S. M., Bultel, Y.-P., Hass, P., Fleckenstein, J., Thieme, A., Stockinger, M., Dieckmann, K., Miederer, M., Holl, G., Rischke, H. C., Gkika, E., &Adebahr, S. (2020). Imaging-based target volume reduction in chemoradiotherapy for locally advanced non-small-cell lung cancer (PET-Plan): a multicentre, open-label, randomised, controlled trial. The Lancet Oncology, 21(4), 581–592. https://doi.org/10.1016/s1470-2045(20)30013-9
Ranjan, A., & Jha, J. K. (2019). Pricing and coordination strategies of a dual-channel supply chain considering green quality and sales effort. Journal of Cleaner Production, 218, 409–424. https://doi.org/10.1016/j.jclepro.2019.01.297
Rauschnabel, P. A., Babin, B. J., tom Dieck, M. C., Krey, N., & Jung, T. (2022). What is augmented reality marketing? Its definition, complexity, and future. Journal of Business Research, 142(1), 1140–1150. https://doi.org/10.1016/j.jbusres.2021.12.084
Rosenbloom, D., Markard, J., Geels, F. W., &Fuenfschilling, L. (2020). Why carbon pricing is not sufficient to mitigate climate change—and how “sustainability transition policy” can help. Proceedings of the National Academy of Sciences, 117(16), 8664–8668. https://doi.org/10.1073/pnas.2004093117
Saura, J. R. (2020). Using Data Sciences in Digital Marketing: Framework, methods, and Performance Metrics. Journal of Innovation & Knowledge, 6(2). https://doi.org/10.1016/j.jik.2020.08.001
Tardy, H., Soilán, M., Martín-Jiménez, J. A., & González-Aguilera, D. (2023). Automatic Road Inventory Using a Low-Cost Mobile Mapping System and Based on a Semantic Segmentation Deep Learning Model. Remote Sensing, 15(5), 1351. https://doi.org/10.3390/rs15051351
Wen, C., Sun, X., Li, J., Wang, C., Guo, Y., & Habib, A. (2019). A deep learning framework for road marking extraction, classification and completion from mobile laser scanning point clouds. ISPRS Journal of Photogrammetry and Remote Sensing, 147, 178–192. https://doi.org/10.1016/j.isprsjprs.2018.10.007
Woolhandler, S., Himmelstein, D. U., Ahmed, S., Bailey, Z., Bassett, M. T., Bird, M., Bor, J., Bor, D., Carrasquillo, O., Chowkwanyun, M., Dickman, S. L., Fisher, S., Gaffney, A., Galea, S., Gottfried, R. N., Grumbach, K., Guyatt, G., Hansen, H., Landrigan, P. J., &Lighty, M. (2021). Public policy and health in the Trump era. The Lancet, 397(10275), 705–753. https://doi.org/10.1016/S0140-6736(20)32545-9
Zhang, J., Zhang, J., & Zhang, M. (2019). From free to paid: Customer expertise and customer satisfaction on knowledge payment platforms. Decision Support Systems, 127, 113140. https://doi.org/10.1016/j.dss.2019.113140