1. Situation Analysis Presented By: Kate Ammerman, Elisha Brandenburgh, Ryan Currier, Jamie Eisinger, Mike Livermon, Cassandra Muntz
2. The History ofMedical Inventors Group Think Tank Designs, Develops, and Markets Medical Inventions Purpose: Creating Innovations to Improve the Quality of Life
13. Industry Analysis The Bandage product category has Inelastic Demand. The Industry is relatively saturated. Band-Aid monopolizes market share at 60%, and it’s brand equity poses a major barrier to entry. There are many small players in the market but all have relatively small market shares. (2-3% each)
14. Industry Analysis The macro environment does not have much an an influence on consumers’ purchases decision, except for two dimension: Economic State increasing/decreasing price sensitivity. Organic/Sustainability Trend increasing the importance of organic attributes
17. Strengths & Weaknesses Strengths: Modern brand image- in a stale product category Innovative technology Accelerates natural healing process Chemical Free Distribution channels in place Weaknesses: Saturated Market Need to change long-held attitudes/awareness that wounds need to breathe in order to heal. S. w. o. t.
18. Opportunities & Threats Opportunities: First-to-market advantage Patent ownership Threats: Alternative emerging technologies Imitation by competitors Short technology lifecycle Consumers resistant to change Switching Costs S. w. o. t.
19. Research Objectives What is the demand among American parents for a bandage that promotes healing (without chemicals touching the skin) and allows the wound to breathe? What are the best avenues for contacting/communicating with the parent bandage market? When and how often do parents purchase bandages? How much money are parents willing to pay for a healing bandage, in comparison with the Band- Aid brand (per unit cost)
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21. Primary Research PARTICIPANT ROSTER Ron, Male, 75, Retired business owner, Grandfather. Susan R. Female, 50, Married, Mother of 2 college boys. Sue M. Female, 49, C.P.A., 6 yr old granddaughter (children are 20 & 34) Jenny, Female, 45, High School Teacher, Mother of a teenager. Sunny, Female, 69, Luxury Spa Owner, Teenage granddaughter.
22. Quotes From Adults“what they told us” “I prefer value. Price + quantity + quality = value. I would weight quality higher than price or quantity.” –Ron, 75-year old. How many alternatives did you consider buying before buying your bandage? ”None. Johnson & Johnson Band-Aid. (She sang the song)” –Andrea, 47-years old. “I prefer buying the colorful ones for the kids.” –Andrea, 47-years old “My experience was the bandage didn’t stick as well as Band-Aid, so the healing time wasn’t as quick. “ –Sue, 49-years old.
23. Quotes From Kids“what they told us” “I prefer a colorful bandage as opposed to a neutral one. I like the ones with Sponge Bob on them, because I like Sponge Bob. I like plain colored ones too, but not the plain skin colored ones.” –Alexandra, 11-years old.
24. Research Conclusions Consumers- male & female, young & old, purchase Band-Aid Brand bandages. -lack of awareness of other brands -lack of knowledge of what constitutes proper wound healing. Brand loyalty to Band-Aid Brand is overwhelming. Consumers cannot name alternatives that they consider unless using the term, “Generic”.
25. Research Conclusions Younger users of the bandages prefer: colorful bandages that stick strongly because of their active lifestyle. Based on the MRI statistics about the actual users of bandages, it is clear that children are the highest users of the product (at 70%). However these highest product purchase category is Mothers.
26. Research Conclusions Adult users of the bandages prefer: -Skin Colored bandages Adult have a variety of needs. However, all state that “quality” is their top characteristic of bandages. (However the components of quality are subjective and unique to the individual.) All adults noticed that their wounds do get soggy or white under typical bandages.
27. Research Conclusions When asked if they plan to switch brands to another bandage, they were reluctant to change. However, most were open to trying a bandage that was “void of chemicals and allowed the wound to breathe”. Band-Aid Brand has a strong following. is the top of choice appears to be the ONLY brand in their evoked set.
28. Research Conclusions It is important to communicate to the target market the benefit of allowing the wound to breathe. This is something that Band Aid does not do. Sticking better, or staying on longer, does not promote healing.
29. Target Markets- Communications Strategy Differentiated Marketing Strategy: involves marketing in a number of segments, but developing separate marketing strategies for each.
32. Target Markets- Communications Strategy Natural and healthier alternatives to traditional lifestyle options have become central to countless marketing campaigns – except Band-Aid. True, their product has been modified over the decades to adapt to newer trends, however the product concept behind it has remained untouched. Our product directly competes at this fundamental level.
33. Target Markets- Communications Strategy ONE NEWLY IDENTIFIED TARGET MARKET BASED ON PSYCHOGRAPHIC SEGMENTATION THAT WE WANT TO AIM OUR COMMUNICATIONS AT IS: LOHAS: Lifestyles of Health & Sustainability. A market segment focused on health, fitness, the environment, & sustainable living.
36. Positioning & Message Strategy 1. Band-Aid 2. Very brand loyal, people are unaware they prolong healing 3. Family brand, classic 4. High preference for band-aid
37. Positioning & Message Strategy 5. Consumers are open to trying a bandage with our attributes 6. Communication needs to differentiate as: -superior technology -chemical free -modern -premium quality
38. Positioning & Message Strategy Low Involvement products that are perceived to have highproduct differentiation often appeal to the consumers through cognitive messages.
Editor's Notes
Factors that make demand for a good inelasticThere are few substitutes,or substitutes are difficult to obtain;the good is a necessity - it is something you have to have, Or the good is unimportant in terms of proportion of income spent of the goodsthe consumer has little time or inclination to search for substitutes
