The Body Shop - Market Segmentation and Competition

The Body Shop is considered to be one of the biggest around the globe, in the cosmetics industry. They always have a consistency in producing ecological and environmental-friendly body and cosmetics products. The products are exclusively based on natural ingredients. They are manufactured according to strict ethical codes, which are opposed to animal testing. 

The Body Shop possesses good information about the market and knows the good attributes of the customer. This information will be leveraged to better understand on who is served, what their specific needs are, and how The Body Shop can communicate better with them.

Talking about Market Segmentation, TBS always tries to understand their customer and differ the target market to specify the product.

1. Geographic Segmentation. TBS set up the stores all over the world, such as in United Kingdom, US, Australia, Canada, Japan, France, Korea, etc. In these countries, the level of people’s life is high. They always focus on their quality of life. Meanwhile, TBS also sell the different products in different places. For example, for Muslim country like Malaysia and Indonesia, TBS does not sell product made by alcohol. Another example is, due to the dry weather in the south of China, so TBS sold some moisture products such as skin lotion and shower liquid. 

Strategic Issue of Harley Davidson – Thriving Through A Recession

Working in motorcycles industry for more than 100 years makes Harley-Davidson become a well-established company in the business industry, especially in the United States. From the beginning of the journey, Harley-Davidson was purposely attracting the baby boomer riders.

As the riders approach sixties, the threat for the growth of Harley-Davidson has raised. This can be seen below where the median age of purchasers of Harley-Davidson motorcycled is becoming greater. Therefore, to keep and even to increase the growth of Harley-Davidson, it is important to recruit new riders from the younger generations.

SOURCE: Harley Davidson Fact Book, posted November 5, 2007, at http://investor.harley-davidson.com/downloads/factsheet.pdf.

Another thing to be put in the strategic issue box is the gender of purchaser.

Recommended Functional Strategy for Maxis

Having the advancement on technology and internet around the world has given a huge impact on the communication sector. In Malaysia, the competition of mobile telecommunication providers is becoming heavier now and then. Maxis Communication Berhad is one of the top players of mobile communication provider that keeps sustaining in the business by delivering the innovation and simplicity for the users.

An analyst points out that competition now is a different game. The price war is confined to the growing prepaid segment and in areas where demand was relatively more elastic. Another issue for cellular industry is that prepaid market segment has a high churn rate or low brand loyalty. The subscribers often have no doubts switching between cellular operators, based primarily on pricing and availability.

To increase the stickiness or loyalty of subscribers and survive in the competitive business environment, mobile service providers have to set their business and functional strategies.

Therefore, below are some recommended functional strategies for Maxis to be applied. Functional strategy allows Maxis to approach all functional areas to achieve corporate and business unit objectives and strategy by maximizing resource productivity.

Risk Aversion Consumer Behavior

Each individual has different preferences about their consumption (whether it is a product or service) in different situation. The fact that many of situation are under uncertainty make the decision hardly to be decided. Based on individual’s preferences toward risky prospect, the type of consumer can be classified as below:

• Risk Averse (Risk-avoiding): An individual who prefer to accept a bargain with a certain payoff rather than another bargain with an expected payoff.

• Risk Loving (Risk-seeking): An individual who prefer to accept a bargain with an expected payoff rather than another bargain with a certain payoff that usually lower than expected payoff.

• Risk Neutral: An individual who is indifferent between a certain payoff and an expected payoff from two different bargain.