Segmentation, Targeting, and Positioning
The handbag market is vast and comprehensive; thus, it attracts a wide range of customers. Besides, with Liu Zaheer planning to produce different handbag products with different colors and styles, there is an outstanding need for market segmentation to ensure the organization meets all the customers needs. Liu Zaheer will use two styles of segmentation which include; Demographic Segmentation and Behavioral Segmentation, to assess the consumers needs, wants, and demands. Under Demographic Segmentation, variables such as; age and income will be evaluated while Behavioral Segmentation will classify the customers based on their behavior and usage of handbags.
With a focus on the age factor in Demographic Segmentation, Young Adults between the ages of 21-36 represent the highest population in the UAE and are likely to purchase more handbags than people below 21 years and above 36 years old. To be more definite, the particular segment accounts for more than 55 percent of total sales of handbags in UAE. As such, the Liu Zaheer handbag product will target the young adult individuals while selling their products. Consequently and relating to income, Proctor, outlines that the rich are a significant segment as they purchase the most expensive brands but are limited in numbers. On the other hand, the middle-class individuals account for a vast population; thus, Liu Zaheer will target the rising middle class. This is because despite their low income they always strive to purchase luxurious goods. Additionally and relating to behavior under Behavioral Segmentation, Liu Zaheer will target the individuals who have a passion for fashion to attract customers for their broad range of products.
Liu Zaheer will produce cheap products that are of high quality. In this respect, they will be very appealing to the organizations segment markets. The young adult will be attracted to the products based on its different favorable designs that are manufactured in different colors to match the customer's many outfits. Moreover, it will attract the middle-class consumers with relatively lower prices that will influence their purchase behavior at the expense of the company competitors.
Product and Branding Strategy
According to Sandlin, handbag products can be outlined as an essential accessory for women based on the point that it holds their most precisions and usable item products. Thus, the organizations handbag products will be produced with a variety of raw materials which include; leather, faux leather and PVC, canvas both coated and fabric, and crochet handbags. The leather handbags will be chiefly aimed at promoting versatility, durability and stylish designs of the Liu Zaheer products. Some of the standard features linked with the production of the leather handbags are the fact that they are classic and can quickly be transited from day to knight. Another point is that the product is typical and can match with a variety of outfit owed to its numerous colors.
Additionally, the faux leather and PVC handbags will be aimed at targeting consumers who are price cautious while purchasing a handbag product. The purse feels and look, will be similar to patent leather with a particular focus on softness. In this respect, they will be adequate for the rising middle-class segment who want to spend less and stand out in public. On the other hand, the canvas both coated and fabric handbags will be aimed at the young generation who are always on the move. The purse will feature their needs; in that, the product itself will be a light and secure way for a woman to store their personal effects. Lastly but not the least, crotchet handbags will be chiefly aiming at the tourists within the UAE. They will be manufactured with breezy accessories which mean that they will be the most ideal for storing beach products such as sunscreens and clothes.
Liu Zaheer will also employ branding strategies that will help in presenting the desired image for organizational products in the eyes of the customer. As recommended by Kapferer et al., the company will first incorporate an organizations logo that will be associated with the organizations product. The logo will be a symbol of high-quality products that will be sold by to the customers at a relatively low price. Second, the company will also use an organizations slogan that will further build trust and influence the consumers choice while purchasing the handbags. The motto will be, with us you are in good hands. This will be used to symbolize the point that with Liu Zaheer handbags, your items will be safe.
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The pricing objectives aimed to be realized through the sale of Liu Zaheer handbags is directed towards achieving significant growth in the market share and enhancing competition with other organizational products. As such, the pricing strategy will be aimed at influencing more purchases of the corporate products and rewarding the customers loyalty. Per Jensen, the price offered will be one that is both convenient for the customers and at good for profit acquisitions to encourage more production of quality products. This will be a definite distinguishing factor between Liu Zaheer handbags and other prominent competitors that include Louis Vuitton, Hermes, and Gucci.
Consistent with Smith, the pricing strategy will include a one price policy baseline where all products will be available at the same time to all consumers purchasing the product under the same condition. In this regard, there will be no flexible pricing where prices are offered within a specific range to present room for negotiation. A one price policy baseline will be beneficial towards maintaining uniformity on product price which will further promote customers trust in the organizations product and eventually promoting consumer loyalty. Also, the pricing strategy will develop a standard margin of profit obtained from selling the organizations product; thus, it will be very beneficial towards monitoring the organization's progress and attainment of corporate goals.
The pricing strategy will also include Discount and allowances; in that, there will be a reduction of the selling price to attract more consumers under exceptional circumstances. For instance, a discount of 10 percent will be issued on all returning consumers purchasing the Liu Zaheer handbags. This will profoundly encourage consumer loyalty which will, in turn, boost the organizations profits and overall performance. Likewise, a discount of 15 percent will be issued to customers who purchase more than three handbags at the same time. This will promote the organizations sales as more consumers will opt to buy more bags to reduce their overall costs.
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Marketing Communications Strategy
Consequently, the organization will use an integrated marketing communication to reach as many consumers as possible. With the companys primary target being tourists and young adults between the age of 21-36 years. The organization will use the social media for advertisements to promote and develop awareness of the organizational products. This is a datum to the fact that the target customers are highly engaged with social media platforms such as Facebook, Twitter, Instagram, and print advertising more than any other platform. With Facebook having the highest number of users registered on social media, Liu Zaheer will use the platform to reach out to the potential consumers. It will achieve this by creating a Facebook page and working significantly to gain as many followers as possible. The organization will post various images of 1200 pixels and 900 pixels tall of their different handbag products.
Per Shin, a twitter account will also be created based on the point that it also has numerous users. The organization will use their Twitter handle to promote various handbag products and engage consumers in direct communication. In this respect, the company will be able to obtain feedback from the customers and recommendations towards improving their handbag products. Likewise, Instagram will also be an essential forum for engaging consumers in presentable commination while promoting the organizations product. The team will share successive images of the organizations product which will also include pictures of persons using their products. This will profoundly influence the purchase of the product thereby boosting organization sales. Lastly but not the least, the organization will use print media to raise awareness of their products. This is driven by the fact that the target consumers are highly engaged in social media through print media such as Fashion and Parent magazines. Thus, the organization will develop print ads that will be displayed on a half-page of the favorite magazines.
As per Solomon et al., the distribution strategy will cover the process in which Liu Zaheers handbag products will be stored, handled and transported to the various points of sales. The organization will ensure that the process of distribution is not only smooth but also fosters availability of the products to multiple locations of transactions that are distributed across the UAE. After production, the organization products will be transported to the companys warehouse for storage. This will be highly efficient due to the point that the room will promote efficacy in the distribution process of companys handbag products. Hence, the organization will incorporate the Efficient Customer Response where it will work with suppliers, wholesalers, retailers and the final consumers across the supply chain management.
The use of retailers will facilitate the availability of the handbag products to various regions distributed across the UAE. As a result, customers demand the product will efficiently be realized. The organization will partner with transportation agencies to oversee distribution of products from the warehouse to wholesalers and retailers as well. The products will be transported in bulk to cut the cost of transportation and enhance profit acquisition. The suppliers will guarantee safe, smooth, and timely delivery of the organizational products to the various points of sales.