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Wotnot Baby Wipes: the Benefits for Delicate Baby Skin

Discuss about the International Marketing and Consumer Research.

Wotnot Wet baby wipes is an Australia leading natural baby wipes manufacturing company which is 100% biodegradeable and compostable. Wotnot chooses the ingredients which is beneficial for the baby skin by using natural and organic ingredients. Wipes are 100% chlorine free and also free from the other elements such as petrochemicals, parbens, caustics, glycols and artificial fragrances. It is made from the advanced fibre technology and these wipes are developed to cleanse, soothe and moisturise the skin by using certified organic aloe vera (Narayanan, Sekar, Pasupathi, & Mukhopadhyay, 2017). It works like a sponge to remove the dirt and impurities and it also prevents nappy rashes for the most delicate skin of newborn baby. These are against animal testing which is safe for the baby and also for the environment. These baby wipes are fantastic for everyday use and it is small in size which can be carried everywhere like in handbags, rooms, cars and many more. Indian Market is suitable market for this product for expansion by the company (Gao, & Simpson, 2014). The country India comprises large population and parents are sensible for their children’s health. These are the favourable factors for this product and also for the Wotnot to introduce baby wipes. In India, people care about their babies or their skin and hence they are willing to purchase the baby wipes at premium prices which will be a success factor for the company. Population of india is increasing day by day. Indian birth rate is increasing by 51 percent births per minute that is a good time for selling the baby wipes in Indian market. According to the research, Baby care market of India will progressively grow with the rate of 17%. In India, parents are concerned about the quality of products specially for baby products (Barel, Paye, & Maibach, 2014). They are looking for the natural products for baby protection. India has unorganised market in the apparel toys and accessories sector. But due to the ethical nature skin and health care sector are organised but industry face scarcity of raw material. Indian baby market adopt the online platforms like first city, Amazon, Flipkart etc (Kessler, 2015). In this report, market strategy, segmentation, targets and positioning are discussed. Apart from this, the product competitors and host country are analysed alongwith some recommendations.

American companies are moving in India for rising incomes and Johnson & Johnson is one of them. Johnson & Johnson is the competitor for the Wotnot products. Johnson & Johnson was established in India almost 70 years ago. Johnson & Johnson delivered the innovative ideas, products and services to improve the health and care of babies in India. Company started marketing with the Johnson’s baby powder. Company expanded in 1957 Johnson & Johnson limited in India. It sells the baby products in the Indian market. Johnson took 50 years advantage because of its products. It operates through three segments, these are consumer, Pharmaceutical, and Medical Devices. It has 230 operating companies around the world which conducts the business. It has expanded the market in the 14 countries namely India, Japan, China and others. Not only baby products company also offers various products such as beauty products as well as medicines. Indian baby market is change according to income of the parents and Change in consumer habits. Rising number of babies increase the demand of the market (Armstrong, Kotler, Harker, & Brennan, 2015). Baby market of India is growing at an annual rate over 17% in revenues. Wotnot can achieve success in the next five years by selling the products and spreading the hygiene awareness in the country which will increase the demand of the product in the market in the next five year. Once the demand increases, then the company can expand by launching new products in the Indian market. Johnson & Johnson have 2.3 percent share in the Indian baby market (Demangeot, Broderick, & Craig, 2015). Wotnot is expected to grab the market more than the Johnson & Johnson in the Indian market. Johnson & Johnson sales the baby care products, beauty product and also medicines with the name of Johnson. Baby wipes of Johnson have heavy demand in the market. Middle and higher class people buy these products (Papadopoulos, & Heslop, 2014).

India as a Suitable Market for Wotnot Baby Wipes Expansion

 Indian culture is explored on the basis of  Hofstede theory. In India, power of the people is unequally distributed and those have less power accept the orders of the powerful men. It means all individual are not equal in the Indian society. Employees accept the orders which is directed by the supervisors because power are centralised in the organisation. Indian people always lived in a group like family, neighbours, and workgroup (Bratton, & Gold, 2017). They  follow there groups opinion like family opinion. If one person of the family rejects the product then everyone refuses to buy the product. They look themselves only then direct there groups. India have many religions and there are different traditions, Hinduism follows the concept of individual. According to hinduism religion, death and birth is a cycle. Individual live themselves independently. India is masculine country, they focus on success and achievements which is validated by material gains (Gollnhofer, & Turkina, 2015). The major proportion of the India believes on achievemnet, success and competitive spirit which are perceived to be masculine. India is a country where tolerance for the unexpected is high. People generally do not take actions and intiative but are comfortably settled in established roles and routines without asking any questions. India gives the low preference to the uncertainty avoidance. India believes on the concept of Karma. The country also believes on truths and often depends on the seeker. Restraints culture adopt by the Indian society which have strong control of their desires and impulses. Indian save their money for their children by controlling their desires (Shafritz, Ott, & Jang, 2015). They give low preferenece for indulgence and that indicates the restraint culture. In India, Power is unequally divided among the members, they follow their boss but in Australia managers and employees are consulted to each other and share information frequently. Australia people highly based on individualism but in India they based on collectivist. India people lives in a group but Australia believes an individual is independent. India and Aiustralia both are masculine society which believes in success and axchivemnets. India does not gives importance to the uncertainty avoidance but Australian people take actions and inative that is why the uncertainty prefrences are high. Australia have a strong concern with truth. They think less for future but Indian people make more plans for future. India is restraint country in nature but Australia is indulgent country because they believe on having fun and enjoying life. They cannot save money for future.

Wotnot baby wipes manufactures in the Australia and can export in India . There are different rules of origin under various national laws and international treaties. India have also some rules or policies for export. Wotnot set the Indian baby market as a target, parents are the consumer of the Wotnot baby wipes. Indain consumer believes in religion. They bought those products which is related to their traditions. In India market, people trust those people who are same in their caste. They did not bought the products which are different from there taste and traditions. Indian citizens who live in urban area are more attentive towards their children care. They believe on market or hygeine product which are benefecial factor for the Wotnot Babywipes. But in rural area, consumers trust on natural product they brought less Wotnot baby wipes because it is against their taste. Consumer disidentification means rejection of domestic product but willing to buy the foreign product. Indian consumers also reject the Indian product because they willing to buy foregin product. Indian people are generally price conscious, and Wotnot baby wipes are luxurious in nature. Wotnot baby wipes is targeting medium and higher class which is almost always a top down phenomena. Indian people always want good lifstyle that is why it is favourable factor for the wotnot baby wipes. Indian policies  also affect the consumer attitude toward product (Jangra, 2014). Consumer animosity means  the impact of anger and negative attitudes between the countries upon consumers. India has many Australian companies and these companies have consumers for their product. Indian companies did not have good relations with Pakistan that is why India people did not buy the Pakistan product. It indicates that India have no problem to buy the Australia product. But some consumers follow made in India policy, and therefore they did not buy domestic product which is not made in India. They have more trust on Indian products. Wotnot baby wipes is an Australia product which is affected by this factor. Consumer animosity is the favourable factor or may be unfavourable factor for the Wotnot baby wipes. Affinities are emotional connections with the brand. A consumer have personal bond with the brand by using the product of the company. After the trust is gained, consumer will buy the products from that brand only because they are satisfied with that product. It is difficult to establish a consumer trust among the other nation. It is a challenge for the Wotnot to make trust in the consmers. Indian consumers rarely trust the product of foreign companies which is unfavourable factor for the Wotnot baby wipes. Johnson & Johnson company is the competitor of Wotnot baby wipes. Indian consumers have blind trust on Johnson products that is why it is difficult for the Wotnot to make the trust among the Indian consumers.

Understanding Indian Culture with Hofstede Theory

Segmentation, Targeting and Positioning determine the kind of customer that exist in the market, determine the customers target and determine the position of the product by setting the price. Segmentation refers to find out the kind of consumers with different needs. Target refers to set the consumer as a target according to their product. Positioning means at what level company wants to maintain their level. Wotnot baby wipes has set middle and higher class people as a segment.

Segmentation Type

Criteria of Segmentation

Target Segment of Wotnot

Geographic

Region

International

Density

Urban

Demographic

Age

2-10

Gender

Male & Female

Life-cycle stage

Mothers

Income

Middle and higher

Occupation

Housewives, Businesswomen

Behavioural

Degree of loyalty

Hard core loyal and switchers

Benefits sought

Cost benefits and time efficiency

Personality

Aware & Health conscious

User status

Hygienic

Psychographic

Social class

Middle and higher class

Lifestyle

Wotnot Target Business women, Housewives and Parents 

Wotnot baby wipes is manufacturer for the Middle and higher class. It is a basic product which which can be easily afforded by the middle and higher class. Wotnot baby wipes made itself to be the family-friendly low price which is beneficial for the mothers, parents and family group. Wotnot promotes their baby wipes through advertising or media and by distributed sample. Wotnot did their promotion within the prestige form (Alden & Nariswari, 2017).  Company has build the trust in the consumers by giving samples to them. Pricing or promotion is the main techniques of the company to attract the consumers for their baby wipes. By the help of advertising on TV, Wotnot promotes the wipes. Wotnot set their target to the mothers and family groups. Wipes are made from the natural products which indicates the cure of their children. By providing the reliable quality services to the consumers at a significantly low rate than hose have well run competitors. Wotnot baby wipes distribute their product in the intensive mode of distribution. The product is available in many outlets that is why consumer encounter the baby wipes everywhere like in supermarkets. By easily available of the product sale is increases in the market but they are found in big supermarkets.

With the Himalaya company Wotnot enter in the country for expansion the business in India. Himalaya is reputed company in the Indian market. Indian consumers trust their product because of its quality and services of the product. Each and everything have their pros and cons. Joint venture in India also have  some advantages and disadvantages for the Wotnot. In India, Himalaya have good goodwill of his products (Kaye, Nye, & Ayres, 2015). With this company, Wotnot have a great chance to develop and improve themselves in the term of capital and technological. Not only capacity but also gain the experience and expertise in the Indian market. Wotnot have a benefit to extend the business beyond the geographical area but they can also extend their business in other traditions (Monios, & Bergqvist, 2015). They cannot stick into one traditional form of business. Himalaya is also selling the baby care products which is flexible for the Wotnot and make his business more convenient because they both have a common purpose. It also gives a creative way to the Wotnot to know the Indian market structure (Samiee, Chabowski,  & Hult, 2015). Himalaya and Wotnot both have an option to eventually segregate their business in the others organisation. Any party can sell the its share to the other party to the agreements. With  the help of Himalaya, Wotnot build the trust of his product in the Indian consumer and also get the success after getting the experiment. But it is difficult for Wotnot to understand the Himalaya and this requires some sincere efforts to enter into Indian market with Himalaya. Himalaya also manufactures the baby products that is why both the companies have their own set of technology which can cause imbalance in the level of technologies (Morschett, Schramm-Klein, & Zentes, 2015). Wotnot have disadvantage because both  the companies are from different culture and backgrounds. It is difficult for them to understand each other and it is difficult to co-operate and work with each other. If the Himalaya and Wotnot distract from the goals of the agreements, it can cause the failure for the entity as a whole. Not only it will result in a loss, but it will also affect the business of both the companies as well as reputation. Merger with the Himalaya has a advantage for the Wotnot. For attaining the success in the next five years, Wotnot follow the supply chain strategy to satisfy the customer demands (Christopher, 2016). If supply chain is maintained in order then demand of the consumers will be satisfied. By following the innovation strategy Wotnot expand in the next five years. By launching new products in the market wotnot can expand their business in the Indian market (Pisano, 2015). Entry by Joint venture is also a strategy to attain the success in the market. They use the goodwill of the Himalaya and also build the trust in the consumer. Apart from all these strategies, they will enter in the market with new products by exporting the products from the nation. It will develop the Wotnot market (Jacobs, Chase, & Lummus, 2014). Joint venture is the right choice for the Wotnot to enter in the Indian market. By the Joint venture, they can easily understand the market structure and experience the market. In the Joint venture, they have a less risk to loose and also have a support of capital. It is a correct way to enter in the market (Mathuthra,  & Latha, 2016).

There are many recommendations from which the company Wotnot has to apply to attain success in the market. In positioning, they have to set high prices according to the foreign product in the Indian market. With more advertising they can promote the product like by banners or posters for the consumer. According to the consumer needs or taste, they have to manufacture the product or attract the consumer by the promotion for the consumer Ethnocentrism (Chernev, 2018). Not only urban area is set as a target, they have to set the rural area as a target as well for selling more products. Wotnot have to make a family relation by giving them good quality products at a reasonable price. Consumer affinity makes the relation with the company or brand. Country of origin should keep the Indian life style in mind at the time of making strategies (Michael, Storey, & Thomas, 2017). They have to make the product by following the Indian tradition because disidentification consumer would like only products with Indian taste, which will increase the sale of the product. Wotnot would also have to anlayse the government policy of the nation at the time of expanding the business in the Indian market (Hatch, 2018). Wotnot can promote the product keeping in mind the nature of Indian mothers. In India, mothers are more caring about their children skin and attractive toward the homemade goods. These are the recommendations which have to be followed by the company. Australia and India have different culture, Wotnot have to maintain the product as according to the Indian culture. They must adopt the collectivist theory and also make themselves restraint as same like Indian culture (Tanner, & Raymond, 2015).

Conclusion

In this report, an Australian company Wotnot wants to expand its business of baby wipes in the Indian market. There are various factors in the Indian market which are favourable for the Wotnot baby wipes. But Johnson & Johnson is the competitor of the Wotnot baby wipes. Johnson & Johnson has large amount of market share in the Indian baby market. Consumer has a trust on its product and its quality. By analysing the culture of India by the Hofstede theory, it is found that India and Australia have different cultures like India believes on collectivist theory but Australia believes on individualist theory. Wotnot set some segments, targets and positioning of the product as a strategy like mothers as a target and it is affordable by the middle and higher class in the Indian market. As a Joint venture, Wotnot has entered the market with the Himalaya company. By the application of supply chain, innovation strategy and Joint venture strategy the success can be achieved in the next five years. Joint venture is the right selection for experience in the Indian market. There are recommendations which Wotnot have to change their positioning or for the consumer positive attitude toward the product.

References

Alden, D. L., & Nariswari, A. (2017). In The Customer is NOT Always Right? Marketing Orientationsin a Dynamic Business World.New York: Springer, pp. 527-530.

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. UK: Pearson Education.

Barel, A. O., Paye, M., & Maibach, H. I.,  (2014). Handbook of cosmetic science and technology. USA: CRC Press.

Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. USA: Palgrave.

Chernev, A. (2018). Strategic marketing management. USA: Cerebellum Press.

Christopher, M. (2016). Logistics & supply chain management. UK: Pearson

Demangeot, C., Broderick, A. J., & Craig, C. S. (2015). Multicultural marketplaces: New territory for international marketing and consumer research. International Marketing Review, 32(2), 118-140.

Gao, X., & Simpson, E. L. (2014). Market trends in baby skin care products and implications for clinical practice. Pediatric dermatology, 31(6), 734-738.

Gollnhofer, J. F., & Turkina, E. (2015). Cultural distance and entry modes: implications for global expansion strategy. Cross cultural management, 22(1), 21-41.

Hatch, M. J. (2018). Organization theory: Modern, symbolic, and postmodern perspectives. Oxford: Oxford university press.

Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain management. New York: McGraw-Hill, pp. 533-535.

Jangra, A. (2014). A study on women consumer satisfaction & preference for baby care products. Clear International Journal of Research in Commerce & Management, 5(10).

Kaye, C. R., Nye Jr, J. S., & Ayres, A. (2015). Working with a Rising India: A Joint Venture for the New Century. United states of America: Council on Foreign Relations Press.

Kessler, R. (2015). More than cosmetic changes: taking stock of personal care product safety. Environmental health perspectives, 123(5).

Mathuthra, O., & Latha, D. K. (2016). Costumers Attitude towards Baby Products of Johnson & Johnson and Himalayan Products, Coimbatore City. International Journal of Applied Research, 2(6), 816-819.

Michael, S., Storey, D., & Thomas, H. (2017). Discovery and coordination in strategic management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset, pp. 45-65.

Monios, J., & Bergqvist, R. (2015). Using a “virtual joint venture” to facilitate the adoption of intermodal transport. Supply Chain Management: An International Journal, 20(5), 534-548.

Morschett, D., Schramm-Klein, H., & Zentes, J. (2015). Strategic international management. New york: Springer.

Narayanan, M., Sekar, P., Pasupathi, M., & Mukhopadhyay, T. (2017). Self?preserving personal care products. International journal of cosmetic science, 39(3), pp. 301-309.

Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing.  Oxon: Routledge.

Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-54.

Samiee, S., Chabowski, B. R., & Hult, G. T. M. (2015). International relationship marketing: Intellectual foundations and avenues for further research. Journal of International Marketing, 23(4), 1-21.

Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. United States: Cengage Learning.

Tanner, J., & Raymond, M. (2015). Principles of marketing. University of Minnesota Libraries Publishing. https://lib.hpu.edu.vn/handle/123456789/21516

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