B&G Shoprite Ltd. is a national manufacturer of a range of cosmetics and over-the-counter drugs. It has developed a good reputation in the industry supplying own-label cosmetic products and generic drugs direct to chemist convenience stores. This reputation has been achieved through close attention to quality, excellent service and competitive pricing.

The company is unknown outside the industry. It has never launched any product of its own into the consumer market. As a company, it works very, closely with its retail customers and will develop products to their specification.

Recently, the company has considered diversifying into men's shaving products. The product would be bought at similar outlets to its existing products and could be developed within the company's existing research and development department.

The shaving product that the company has developed is men's shaving cream that is applied on the face, left for 5 minutes and then washed off. This process will not require any use of a razor. Initial research has shown that the product might appeal to people who are in the age band 18 - 30 years old, but no further detailed research has been carried out. The shaving product is revolutionary in that no such product is currently available on the men's shaving market. Extensive tests have been carried out and no risk of harm is entailed in its use except for those men with sensitive skin.

The company decides to develop this product as its own brand. The brand name is 'A Close Shave'. The product is supplied in tubes or containers, It is priced at approximately double the price of existing shaving foams in the market, but no replacement razors will ever be required. this has been initially distributed through existing channels and not supermarkets because of likely price requirements. The launch of the product took place in the South and used prime-time television slots. The adverts emphasized the product was 'mainly. Enough for men'.

Despite rave reviews the product launch was a flop, The company achieved only 300/o of its targeted sales in the first 3 months.

After consultation with its advertising agency' the company decided to commission more extensive research with 250 consumers in the targeted group. The responses can be summarised by the few quotes given below. 'The shaving foam I use is manly enough for me.'

'l had to laugh at that advert. It wasn't me at all.'

'l might use it but only if I was convinced it was not harmful to my face.'

'lt's a bit expensive. I wouldn't pay that much for a shave.'

'l like my dry shave and nothing will shift me from that.'

'l can't imagine any of my mates being seen putting a cream on their face. I like the idea but no I wouldn't buy the product.'

Questions

(a) Highlight the importance of market segmentation for a branded product aimed at the consumer.

(b) How might B&G Shoprite Ltd., consider segmenting the market for 'A Close Shave'?

(c) Identify some possible parameters by which 'A Close Shave' might be positioned.