Marketing Strategy for WD-40 Company

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Developing Marketing Mix Strategies

It is essential for businesses to develop marketing mix strategies for the product or service they deal in to guarantee the success of the company or organization in the market. Considering that an organization produces a product or service with the target market in mind, it has to ensure the product or service is of value to the users. Through the development of the marketing strategies, a company can tell whether to make adjustments on the product so that it can meet the satisfactory requirements of the target audience. Hence, the combination of the price of the product, location of the product in light of distribution, how it is promoted, and how it appeals to the target audience defines the value for that product.

Creating Offerings

WD-40 is a product that is used for multiple purposes in the automobile and manufacturing industries. It is explicitly used as a lubricant to loosen parts of a machine or metal, thus protecting it from corrosion and rusting. WD-40 is referred to a product with over a thousand uses since a vast number of machines depend on the product for maintenance. WD-40 is power loosening oil considering that it can penetrate stuck fitted metal parts while also displacing moisture. Due to WD-40 multiple uses, it has a range of other benefits that include cleaning of tiles, removing stains from sinks, helps in softening of leather, and easing the loosening of nuts and bolts. A 330ml can of WD-40 cost approximately $25, and the price varies with the volume of spray in the can. WD-40 is inclined towards service dominance. The product is a fundamental component that enhances the delivery of a service. Besides, WD-40 aims at co-creating value with the users of the product (West et al., 2015). WD-40 is tangible as it can be touched and meets the physical characteristics of a product.

Type of Consumer Offering

WD-40 falls under the category of the shopping offering. The product is a leading brand in the market. Due to its uniqueness, customers strive to find WD-40 in the market with the belief that it is the right product to use. As such, consumers are likely to put off buying if they find that the product is not in a store where they purchase their items until the product is stocked. Customers are the primary determinants of the category of offering that a product provides. A different target market may view the WD-40 as an unsought offering. The offering that one consumer may place on a product will be different from the category another consumer group puts the same product. Thus, a new target market may lead to change in the category of offering for WD-40. The marketing strategy will, therefore, have to change since new methods of promotion will need to be sought so that they can conform to the new target market. The method of distribution will also change as the company will be forced to stock its products in company-owned stores.

Product Line Extensions or New Product Development

The WD-40 needs to be modified for the sake of the new target market. Modifications need to be done on the product's pricing since the new target market categorizes the product as an unsought offering. Thus, to increase the purchasing power of the lubricant from the company's stores require that the price be lowered so that it can create more value for the customers. The WD-40 Company also needs to change its promotional tactic so that it can be aligned with the needs of the new target market. Personal selling can intrigue the new target market leading to a significant number visiting the company stores. Besides, opening the company stores closer to the target group can enhance the sale of the WD-40 (Keiser et al., 2017).

Product Lifecycle

The WD-40 is in the growth stage of the product lifecycle. At the growth stage, WD-40 is faring well in the market. The company is making sales at a faster rate as more market share is aware of the product. With the modification of the WD-40's price and promotional strategy, the product will enter the maturity phase. In the maturity phase, WD-40 will be favorably positioned to compete with rival products being introduced in the market (Keiser et al., 2017). The WD-40 company will have attained a considerable market share; hence the company will reduce product promotion. At this point, the target market is aware of the product and is likely to refer their colleagues to visiting the company stores to purchase the product.

Using Marketing Channels and Price to Create Value for Customers

WD-40 uses multiple marketing channels to reach the target audience. The channels used in marketing the product have followed consideration of appropriate channel decisions. The marketing channel decisions are made since the consumer demand for the WD-40 is high and poor channels can lead to the target market seeking the product from competitor firms (Tanner & Raymond, 2015). As such, the WD-40 utilizes both direct and indirect channels to ensure the product satisfies the demand in the market. WD-40 direct channels include sale via the internet to reach the target market. The company makes use of its social sites such as Facebook and Instagram to reach out to potential clients, and the delivery of the products requested is done. Besides, on the WD-40 webpage, the company gives clients an opportunity to shop online (Kozlenkova et al., 2015). In the indirect channel, WD-40 utilizes the manufacturer selling through retailers to customers. In the channel, retailers purchase WD-40 from the company and later sell the products to the consumers. The company also markets its goods through the agents. The agents apply in the case where the company needs to reach the global market. Notably, WD-40 products are sold in over 150 countries globally, and thus the target audience in such areas need to be reached through agents, distributors, retailers until the product reaches the customer (Kannan, 2017). The channel strategy is not likely to change in the case of a new target market since the company utilizes multiple distribution channels that meet the needs of the new target market.

Marketing Channel Strategy

The WD-40 uses a differentiated multi-channel distribution network to ensure that the company products can be found in a significant number of outlets as possible. The WD-40 has the advantage that the product has multiple uses. As such, the WD-40 Company sells its products to numerous store outlets, which include automotive stores, hardware stores, groceries, bike stores, plumbing stores, sporting goods store, and the drug shops. The company also displays its products on the online platform so that the new target market can have broader access to the company's products (Kozlenkova et al., 2015). Hence, the company does not need to introduce a new distribution intensity strategy since all the target market is catered in the multi-channeled distribution network.

Value Chain

The different members of the value chain that bring value to the consumers include the WD-40 Company, retailers, wholesalers, and agents. The WD-40 Company uses raw material to create a finished product, thus creating value. The company creates value by creating an affordable price and quantity of the product, which enables consumers to purchase the product at ease (Adner et al., 2017). The agents ensure that WD-40 products reach wholesalers within the stipulated time to satisfy the demand in overseas countries. Moreover, they make it easier for the manufacturing company to access the global market. The wholesalers bring value to the consumers through speeding up the shipping process of WD-40 products to enhance reliability in the delivery process (Adner et al., 2017). Moreover, the wholesalers employ skilled staff who can handle complaints related to the products distributed. Retailers can also bring value to consumers by offering the best customer service to attract and retain a considerable number of customers. Also, the retailers can enhance their knowledge about the WD-40 products so that they are in a position to offer expert advice. Most consumers value a product when they can acquire information concerning the product (Adner et al., 2017).

Pricing Strategy

WD-40 uses the penetration pricing strategy to access the market share and increase sales. The penetration strategy has enabled the WD-40 company to access over 150 new markets globally. The strategy involves a company selling its products at a considerably lower price within a limited period in the bid to create a profound customer base. Under the approach, the company can gain entry into new markets through introductory lower prices, which can be increased after the company secures the market share. To accommodate the new target market, WD-40 can utilize the value pricing strategy. Currently, WD-40 faces competition from the RSC Company and therefore needs to ensure that it does not lose the target market to the rival companies (Kannan, 2017).

Conclusion

In summation, it is essential that companies put strategies in place to ensure their products meet consumer value. The strategy put in place can determine how the company's product performs in the competition. A variety of marketing channels are ideal so that the product can satisfy a considerable market share globally. Besides, pricing should be focused on the target market and the competition in the industry. Lastly, a company must bear in mind that the value offering of the target market can change as the target market has varying characteristics, and none is like the other.

References

Adner, R., Barney, J. B., Porac, J., Priem, R. L., & Ryall, M. D. (2017). Customers and Value Propositions: Rethinking Strategy from the Demand Side. In Academy of Management Proceedings (Vol. 2017, No. 1, p. 10674). Briarcliff Manor, NY 10510: Academy of Management.

Kannan, P. K. (2017). Digital marketing: A framework, review and research agenda. International Journal of Research in Marketing, 34(1), 22-45.

Keiser, S., Garner, M. B., & Vandermar, D. (2017). Beyond design: The synergy of apparel product development. Bloomsbury Publishing USA.

Kozlenkova, I. V., Hult, G. T. M., Lund, D. J., Mena, J. A., & Kekec, P. (2015). The role of marketing channels in supply chain management. Journal of Retailing, 91(4), 586-609.

Tanner, J., & Raymond, M. (2015). Principles of marketing. University of Minnesota Libraries Publishing.

West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing: creating competitive advantage. Oxford University Press, USA.

September 18, 2023
Category:

Business

Subcategory:

Corporations Marketing

Subject area:

Company Marketing Strategy

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