For sustaining in the highly competitive business environment, it is important for the companies to prepare effective marketing strategies (Sujan and Bettman, 2009). However, the first step of preparing marketing strategies is to analyze the present marketing mix of the company. The purpose of this report is to perform an in-depth marketing analysis of Ecostore. In order to evaluate the current marketing strategies of Ecostore, the main focus will be given on analyzing its marketing mix. In addition, the present marketing mix of Ecostore has been compared with that of its major competitors of the market. Based on the analysis, this report will also offer recommendations that can improve the present marketing strategies of Ecostore.
Ecostore has been set up by Malcom Rands in an eco-village of New Zealand in 1933 (Ecostore, 2016a). This organization has been engaged in offering non-toxic cleaning and body care products to the customers. The purpose of this company is to provide environmental friendly products to the customers. Thus, Ecostore has introduced the concept of ‘health first’ that ensures that the products of this company is safe for the health of consumers (Ecostore, 2016a). The first retail store of this company was set up in 1997 in Auckland. The product range of Ecostore includes household cleaners, body care and baby care (Ecostore, 2016b).
Ecostore has provided a major focus on research and innovation with its team of scientist. The intention of the company is not only to maintain quality in its products and services but also to reduce the impact of the products on the environment. In order to provide healthier and eco-friendly products, Ecostore has selected sustainably sourced plant and mineral based components rather than the petrochemical based ones (Ecostore, 2016a). In addition, the company also reviews the reliable international resources like EWG (Environmental Working Group) and Cosmetic Database for assessing the impacts of each of the components used by the company. In addition, the company also compares its ingredients with that of its competitors’ ingredients to ensure that the level of safety from the perspective of health and environment has been maintained. Some of the most common and detrimental chemicals related to the household products like Triclosan, parabens and SLS are not been used in the products of Ecostore (Ecostore, 2016a). In addition, the organization has ensured that each of the ingredients have been listed in the product labels. Although, such practices have significantly enhanced the cost for the company and delayed its production process, the management of Ecostore has remained stick to this approach. Moreover, Ecostore is considered as the first company that has shown that eco-friendly businesses can be profitable.
Apart from providing eco-friendly and safer products for heath, Ecostore has also been able to maintain its sustainability through participating in the corporate social responsibility (CSR). For instance, Ecostore has contributed a significant percentage of its profits to the non-government organization (NGOs) Fairground Foundation (Ecostore, 2016b). In addition, Ecostore has contributed funds for education, stewardship and advocacy from the perspective of sustainable business practices. This organization has actively participated in the activities related to the refurbishment of the brittle environment. The management of Ecostore has actively participated in organizing conferences that can help the other organizations to develop sustainable business practices. For instance, Ecostore has organized Better Boards conference in Adelaide in the year 2014 for motivating the other companies about sustainability and alternative funding.
Marketing mix of the company mainly represents 4Ps of the company that includes product, price, place and promotion (Constantinides, 2008). Marketing mix of Ecostore has been analyzed in the below sections:
Product: Product is considered as one of the most important components of marketing mix as it enables the companies to maximize satisfaction level of the consumers (Goi, 2009). Ecostore offers a wide range of products to its customers and it includes laundry, dishwasher, home cleaner, baby care, hand wash skin care, body and hair care, home spa etc (Ecostore, 2016c). In addition, the companies also come up with a new product range that offers bath towels, bath towers and bath mats to the consumers (Ecostore, 2016d). Each of the products offered by Ecostore has again been segregated based on nature of skins or hairs. In this regards, Grönroos (2007) mentioned that in order to sustain in the competition, it is important for the companies to provide customized products and services.
Customers and suppliers: As women are more familiar with skin, hair care, laundry and home cleaner products, a majority of the customer segment of the company include female consumers. On the other hand, being a manufacturer of the above mentioned products, Ecostore does not outsource much of the components related to its production (Ecostore, 2016f). However, the company has become a TFT member in 2015 to associate with the major palm oil suppliers (Ecostore, 2016f). It has enabled Ecostore to procure palm oil from some of the major suppliers such as BASF, New Britain Palm Oil Ltd of Papua New Guinea and OIO Oleo Chemicals of Malaysia (Ecostore, 2016f).
Price: As mentioned by Rafiq and Ahmed (2009), pricing strategy of a company has been regulated by the economic status of the target market and the demand of the concerned products. Pricing strategy of Ecostore can be analyzed by identifying the prices of some of its products.
(Source: Ecostore, 2016d)
The above table represents the prices of some of the products offered by Ecostore. From this information, it can be inferred that the product prices of Ecostore are lesser than that of the market leaders. Moreover, it has also been found from the above table that the laundry products offered by Ecostore have been able to wash more number of dishes