Assignment:
In this scenario, you are a small business consultant, and although you have expertise in all aspects of business your specialty is marketing. Two weeks ago, you were contacted by "Beautiful You" (a small business jewelry distributor), requesting your services. Beautiful You is selling an Emerald Lab Created Diamond. Here is the description:
Product: Emerald Lab Created Diamond
Carat: 1.01
Cost: $1374
Consider this information:
This diamond is basically a Cubic Zirconia (CZ), which is a synthetic manufacturer diamond. In other words, it is a fake diamond that looks like a real one. Many experts indicate CZ's sparkles like a diamond, looks and feels like a diamond, and have all the characteristics of a real diamond. In fact, it is only when a gemologist closely examines the item that they can tell the difference.
The CZ's have been around for several years, and when they first came out, they were a fraction of the cost of a real, authentic diamond. Although CZs were not as expensive as real diamonds, they have increased in cost through the years due to the demand for them. The reason for the demand is people did not want to pay the high price for a real diamond when they could get one that resembled the real thing for a cheaper price.
According to research, a real, authentic 1.04 carat diamond that is like the Emerald Lab Created Diamond (the fake one) will cost approximately $5700. Although the Emerald Lab Created Diamond is cheaper at $1374, that is still a lot of money to spend for a fake diamond.
So, based on this information, the owners of Beautiful You have asked you the following questions (which is your assignment)
1. Who is their target market for this product? Consider the four types of segmentations which are demographics, behavioral, psycho-graphical, and geographic. You are free to use all the types of segmentation or only one or two. Whatever you think is best. The only requirement for this portion of the assignment is that you use demographics for sure. The reason for this is the demographics is the most widely used type of segmentation. Remember to be specific in your description. For example, when using demographics, be specific with age range, income range, educational level, etc.
2. Consider the marketing mix for this product (the 4 Ps) Price, Place, Product, and Promotion. You already know the price ($1374) and you have determined your target market from question (a), so based on this information,
- Place - in what stores should their product be sold?
- Promotion - what is the best means of promotion and advertising? Think about this. Where does the target market get the information? Should they use social media or online sells be considered? How so? How would you position this product?
- Product - what need or want does this address?
Positioning- How do you position this product? How do you want your market, and the public to perceive this product? Here is an example of positioning. Sanderson Farms positions their product (chicken) as the only producer that does not use steroids in their chicken. While other companies do, Sanderson Farms remain organic, pure, and healthy just for you. Positioning is simply how you want to be seen and through of by your market.