As the American household grows more ecologically sound, organic cleaning products are in demand. Grapefruit seed extract, Orange peel, many plant based oils, lemon juice, along with electrolyzed water all offer organic cleaning solutions that perform just as well as the other cleaning products in our lineup.Thousands of customers have already requested that we introduce such a product including many of our own employees. Lab tests have shown that this organic cleaner cleans just as good as our non-organic cleaners. The product is currently in market testing and the “green” market is a viable one indeed. It is planned for a regional rollout.
Diversification analysis is a tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products (book, pg. 31).An organic cleaning product is new to our lineup. Markets shift and change, new markets open and old markets close, in order to survive we must pinpoint those new markets.
The reason I chose diversification analysis is because we are diversifying our lineup of cleaning products and entering a new market. We should be focusing on product development as we are selling a new product to a current customer. Also, focus on market development should not be overlooked as we are selling a new product to a new market as well.The “green” market is unique as in the people looking for green products will not buy products that are not considered green or natural. In step one of the marketing research approach we must define the problem.
People want “green” all-natural cleaning products at affordable pricing. We must research whether or not this can be viably done. Step two in the marketing research approach is developing a research plan. A possible constraint would be the company image.
Even though we are working on one organic product, the rest of our lineup is not organic. In order for us to reach our intended market we must show people that this company cares about the environment. Therefore, we must identify if whether or not potential customers will be turned away because of our other non-organic products. We can collect data, perhaps by conducting surveys. Step three of the approach would be collecting relevant information.When developing the findings while analyzing the data we found that almost half of the people said the company image would affect their decision to purchase a product.
The last step of the process is taking market actions. In order to improve the company image we could start a “green” campaign. Simple action like planting trees, holding events, or perhaps changing the color scheme or logo of the company can result in an improved image for the desired market.