HI5004 Brand Positioning and Brand Equity: The Meditation Headband Assessment Answer
Brand Positioning and Brand Equity
The brand positioning tactics help new business improve consumer relevancy, brand value and competitive distinctiveness. Positioning is determined as the place that the brand occupies within the mind of consumers and the way it is differentiated from the products offered by the rivals. For the new business introducing a new product in the market, it becomes important to evaluate the product compatibility in context to market needs. This report aims to produce detailed information about the launch of new product meditation headband within the market with proper analysis of environmental factor, competition and demand forecast. Moreover, the product segmentation across potential consumers, strategic positioning and targeting will also be undertaken.
About the product
The meditation headband is the high-tech product that helps consumers to pair it with the mobile application to offer guided medication having real-time feedback on the brain activity, breathing heart rate and more (Farr 2020). The product translates the body performance or data in the form of sound-scapes that modifies depending on the level of individual calmness. The meditation headband translates body and brain activity in the form of guiding sound of the weather to help the user find concentrated relaxation. The device connects the mobile through Bluetooth, the meditation is initiated and the headband is placed on the head. The product is a research-grade EEG device which passively senses user's brain activities and helps them to stay focused. The product offered to consumers helps them enjoy more than 300 meditations on stress, performance, sleep and much more from recognized meditation instructor.
The competitors that are more likely to limit the profit generated by new business launching meditation headband within the market are SMARTECH, InterAxon and Muse offering the brand with more advanced features of the product (Farr 2020). The rivals offering easier muse meditation as personal meditation support by delivering real-time neuro-feedback depending on the EEG that allows users to perform the guesswork different from the usual meditation practice. These rivals may threat new business encounter decreased consumer base and market share, specifically when the demand for the meditation headband is restricted from the start. The new business launching meditation headband noted to be capable enough to compete rivals with the features of wireless connection, Smartphone compatibility, LED indicator and supported with micro USB port (Farr 2020). While competitors within the market are likely to force the business to lower product prices to remain competitive and decrease sales rate, the new meditation headband would stay competent with offering the product at affordable prices of better quality to effectively increase sales volume. The product with features of one headband offering multiple user experience, rechargeable characteristic of 5-hour continuous use, turning the heart rate towards optimizing performance is helpful to attract diverse consumer base. The product supporting discovering the meditation posture to bring physical relaxation and utilizing breath to fight stress and find come would be the competitive features for the new business to generate huge profit within the market.
The environmental analysis is defined as a strategic process of recognizing the internal and external elements that affect business performance (Aithal 2016). In the case of meditation headband newly launched in the market, the environmental analysis would entail evaluating the degree of opportunity or threat that the environmental factors may present. The environmental screening is important to ensure the success of the business products or services for a long term basis. In order to analyze the environmental influence on meditation headband, PESTLE analysis has been undertaken.
Political factor: the Australian market has noted to attract AUD 62 million within the foreign direct investment in the year 2018 (Tang 2020). This means favourable government policy and regulation for the new business launching meditation headband to generate profitable income along with reaching a diverse market with ease. The taxation in Australia accounting to 30% is likely to become the de-motivating element for the small business to maintain profit margin and survive for the longer run. The business partnership with the local or private industry corporate within capital venture may become supportive of the meditation headband product to increase efficient profitable return.
Economic factor: The Australian market encountering economic recession is likely to impact business with decrease product demand and consumers with less disposable revenue to spend on luxurious goods. The interest rate 0.25% and the inflation rate of 1.43% is the favourable economy for the launch of meditation headband with less costly funds borrowed for business expansion (Tradingeconomics 2020b). It is important the new business emphasize cost strategies for surviving operation in an uncertain market.
Social factor: The consumers becoming broadly cost-conscious and changed in buying behaviour negatively impact product sale with pressurizing business to offer the product of high quality at a reasonable cost. The GDP of Australia account to AUD 1450 billion means people have the adequate disposable income to invest in the luxurious product (Tradingeconomics 2020a). The increase in social media use and e-commerce platform might be used by the business to enhance product sales to diverse consumers.
Legal factor: For the new business to acquire long-term sustainability the compliance to employment act, discrimination, equality, safety and health rules become important (Clark 2016).The business requires adequate investment in promoting fair treatment, inclusion and diversity across the workplace to gain the interest of potential stakeholders as well as investors attention.
Technological factors: The technological breakthrough has compelled the business to adopt modern means and digitalized platform leading to additional operational cost (Kembro et al. 2017). It becomes critical for the business to indulge within establishing disruptive technologies for increasing product sales productivity and profit generated from online commerce operation.
Environmental factor: The Australian government emphasize strict rule on environmental protection for the business operating in the nation (Clark 2016). It means new business launching meditation headband need to advertise its product as eco-friendly and sustainable in nature to attract diverse stakeholder’s attention to ultimately increase profitability. The CSR activity would promote higher brand recognition and image among targeted consumers.
The high demand for meditation headband within the market means the new business has the opportunity to increase product sales and penetrate the market niche. It is forecasted that meditation is becoming a billion-dollar trade. The internal meditation application marketplace demand has noted to reach AUD 189.64 million in the year 2018 (Insights 2020). The meditation product demand is forecasted to reach nearly AUD 4,377.95 million by the year 2027. The market for meditation application has noted to grow at the CAGR value of 41.3% (Insights 2020). All this means that the launch of the meditation headband as the product within the Australian market is likely to become advantageous to enhance the profit margin, acquire adequate market share within the industry and allocated resources towards business efficiency.
Market segmentation, targeting, and positioning
The development of marketing tactics or strategies required identifying positioning, targeting and segmentation basis to understand the particular buying behaviour of consumers or end-users (Schlegelmilch 2016). The use of segmentation method facilitates new business offering meditation headband to narrow greater and diversified targeted customers depending on behavioural as well as demographic aspects. The product with advanced technological features offered of premium quality becomes more favourable to generate huge profit advantages by targeting high income to a middle-income group of the millennial consumer including both women as well as men. The product to be durable, compatible with Smartphone, wireless features and material of eco-friendly standard remain strategic for positioning brand among upwardly mobile, working professional, leisured people and moneyed consumer group attracted through competent online promotions (Samadder 2020). In reference to behavioural segmentation, the heavy users, early adopters, quality-conscious consumers and luxury seekers are the critical targeted audiences to ultimately enhance the sales rate of meditation headband. The new business with the venture of offering meditation headband in the market can position the brand among cost-sensitive customer segment by facilitating product at a premium price to affordable range based on the quality.
The business is impacted by altering targeting and positioning tactics to attract potential consumers offered with product and services on the premium to economic price range. In reference to economic aspects of the Australian market including the favourable interest rate and inflation means improving the positioning capability of the business in the meditation appliance industry. The business may require targeting higher revenue consumer groups or reduce product cost as because of economic recession declining the spending supremacy of lower to middle-income group let them fail to afford the item. With the changing consumer demands and requirement, the business required understanding the buying behaviour of the targeted consumers over social media online platforms. The meditation headband marketed and promoted on e-commerce platforms, social media, website and online advertisement becomes significant to lead building diverse brand awareness along with acquiring large consumer base. The competent method of proper investment in R&D activities is likely to favour increment in brand equity and strong positioning of the brand within Australian market with attractive features of the product to sustainable as well as eco-friendly in the application.
In affirmation to above discussion, the competitor analysis has depicted that even with the existence of top rivals in the meditation appliance industry, the new business launching meditation headband has the competency to attract potential consumer base. The PESTLE analysis demonstrated that the economic and political factors of the Australian market favour the new business to generate adequate profit. The compliance to environmental protection, legal law and analyzing changing customer demands has become the means of opportunity for a new business offering meditation headband to improve sales volume and profit margin. The strategic segmentation, positioning and targeting have highlighted the adequate capacity of the new business offering meditation headband product for targeting highly profitable customer segment.