Biolage R.A.W., a professional haircare brand, was established in 2017 in Portugal. The brand is facing challenges in market entry and creating brand awareness. Additionally, pricing is another challenge that the company must overcome to enter the Portuguese market successfully. The brand would benefit from identifying a target demographic, defining its psychographics, meeting its needs, and establishing brand trust. Identifying target demographics is critical for Biolage R.A.W. since it helps distinguish between different audiences and supports market segmentation. Since the marketplace is too differentiated, courting potential customers requires the company to be aware of their customers’ age, gender, race, ethnicity, income and education level, and lifestyle. It is impractical to serve every niche. Therefore, identifying target demographics gives a clear focus of the appropriate market segment and their needs (Gajanova et al., 2019). Categorizing customers based on their demographics also helps the company to prioritize its resources.
Defining the psychographics of the target demographic is critical in determining customer loyalty. Psychographics will help Biolage to identify the characteristics that would motivate people to purchase their high-end natural products. Psychographics, such as attitudes, values, and desires, supplement demographics. They help understand potential customer’s purchase decisions, making marketing efforts more precise and accurate. Jointly considering the target market’s demographics, psychographics, and behavior helps develop a buyer persona (An et al., 2018). Meeting the target audience's needs and wants is essential since it attracts and retains new customers and leads to brand loyalty and trust (Gajanova et al., 2019). Additionally, it also influences customer satisfaction. The brand’s success is directly related to customer satisfaction (Hult et al., 2019). Biolage can use its brand to help establish trust with the target demographic through marketing. The marketing campaigns should include a clear value proposition that represents that brand’s purpose and competence. Biolage can also create and promote educational content on hair care and products to enhance brand trust (An et al., 2018). This launch strategy would help offset some of the market entry challenges that Biolage R.A.W. is facing.
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References
An, J., Kwak, H., Jung, S. G., Salminen, J., & Jansen, B. J. (2018). Customer segmentation using online platforms: isolating behavioral and demographic segments for persona creation via aggregated user data. Social Network Analysis and Mining , 8 (1), 1-19. https://doi.org/10.1007/s13278-018-0531-0
Gajanova, L., Nadanyiova, M., & Moravcikova, D. (2019). The use of demographic and psychographic segmentation to creating marketing strategy of brand loyalty. Scientific annals of economics and business , 66 (1), 65-84. http://saeb.feaa.uaic.ro/index.php/saeb/article/view/363
Hult, G. T. M., Sharma, P. N., Morgeson III, F. V., & Zhang, Y. (2019). Antecedents and consequences of customer satisfaction: do they differ across online and offline purchases?. Journal of Retailing , 95 (1), 10-23. https://doi.org/10.1016/j.jretai.2018.10.003
