Differentiating and Positioning:
Market positioning has been aided by agreements to utilize the great marketing and sales resources of Amazon.com. Infusium 23 is no exception and this strategy also includes more traditional Helen of Troy product lines such as curling irons and hair clippers. Product differentiation includes such aspects as an attractive sale price point of $7.99, an attractive new scent, redesigned bottles and better hair results (Gold, 2010). Price is a very important factor, as this consultant found out in a Google search on September 6, 2010. The second most popular search on the Google pull-down menu was for Infusium 23 coupons, even given the competitive price of the product currently. A great example of this can be found offered by Walgreens on not just Infusium 23, but related Helen of Troy products. The coupons bring the price down to a super low of $4.99 per bottle. Obviously, price is as important as brand loyalty. In addition, the coupons are mixed with other Helen of Troy products such as those in the Oxo kitchen product line (Mercedes, 2010).
The consultant team's intriguing observation is that given the success of outlets such as Amazon, there is now less brand loyalty amongst consumers. The co-branding and mixing of products is now an accepted practice, as long as the items have some logical, functional link. An example is that a consumer would go straight from the bathroom to the kitchen in the morning. Infusium 23 hair conditioner and Oxo kitchen products therefore have a logical link in the typical consumer's mind. We can continue linking coupon offers in this way to take full advantage of the current trends in co-branding and marketing. This goes along very well with the company's history of developing product lines by product develop which inevitably requires price modification to position the products and differentiate them from their competition.
This view is supported by analyst David Gibbs. In quarter one of this year (2010) profits were $0.59 versus estimates of $0.57 and $0.47 for the first quarter of last year. Revenues were up 11% to $160.2 million vs. estimates of $161.3 million. According...
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