The target market of OXO is mainly consumers of household goods both young and old (Abrams 14). The main concentration of the target market is individuals who use kitchenware as they are the main segmentation of the customers.The most profitable customers are the individuals who value quality and are ready to spend. This category is mainly defined by the high-income segment of the society. The product segment in terms of gender mainly targets the female who are the more users of the kitchenware products (Kotler and Amstrong 203).
OXO Value Proposition
A value proposition is a core part of business model and often an element of strategy (Kotler and Amstrong28). The value proposition of OXO is a reflection of the value that OXO offers to the customers. OXO’s value proposition describes why customers should buy a product or service and often targets a well-defined customer segment(Kotler and Amstrong 214). Creation of value for the customer for OXO apparently has been done extensively through product design. OXO has managed to differentiate its products from the others. In doing, OXO has used superior designs of its products mainly through ergonomics such as the OXO swivel peeler.
The designs of the OXO products are done by ergonomic engineers who offer both value and quality (Abrams 31). The products are well designed, comfortable to hold often with soft-cushioned handles. The tools are crafted to fit in the palm of the hands without any stress or strain. The value proposition of the products is focused on design and technology rather than on price with OXO products being just a little costlier than other kitchen tools. The value proposition is same as competitive offering given that the product design gives the company a competitive advantage it requires hence an edge over the other products.
OXO Product Mix
In the product mix, focus of OXO is on the dimensions of the products, and they include length, consist and width(Kotler and Amstrong 237). In its product length, the company has numerous products that it carries alongside. OXO over a long period has managed to develop an iconic product line (Kotler and Amstrong 236). The development of the product line was done through partnership with Smart. Through this partnership, they designed superior Nonetheless, the company has created the ubiquitous OXO brand identity which has cut a market niche and appreciated globally. The packaging of their products has been overwhelming with their simple black and white packaging system standing out. The product line of OXO entails more than 850 products with Kitchenware being the main focus of the company. Over time, the company has expanded its product line to include storage and organization products, laundry supplies, children products and gardening tools.
OXO Distribution Strategy
OXO uses exclusive method of distributorship where they only give exclusive dealers distributorship rights of their products(Kotler and Amstrong, 351). There are only a handful of distributors in the world, and they include 80 countries globally. I would recommend that the store explores intensive distributorship strategy given that numerous of their products are kitchenware(Kotler and Amstrong 351).
OXO Pricing Strategy
(Abrams 41). Hence, it is evident that it is such expensive for such a simple tool which cost less than 3 dollars from other manufacturers. The prices of the OXO products are well in place given the quality of their brands. It is the quality that differentiates them from their competitors thus the price of the product rightly matches the product quality hence justified (Kotler and Amstrong 332).
OXO’s Use of Social Media
In order to be successful in the social media one needs to be responsive, and this helps in creating brands in a great deal for companies (Direction 23). Being responsive is like the customers calling a customer care line, and the line being answered. OXO has been great in responding to all the concerns raised on social media platforms. Looking at the company’s twitter account, there are numerous re-tweets that are done on the brands as well as the questions answered. OXO’s responses have developed into a two-way relationship with the brands having a lot of mentions and followers globally. This is a good marketing strategy for its products.
The other use is in the blogger outreach program where they have robust and enthusiastic users. The well in their use of social media.
Works Cited
Abrams, Pam. Gadgetology: Kitchen Fun with Your Kids, Using 35 Cooking Gadgets for Simple Recipes, Crafts, Games, and Experiments. ReadHowYouWant.com, 2010.
Direction, Strategic. “Simply better design: Designing to include a growing market.” Strategic Direction 24.3.
Kotler, Philip, and Gary Armstrong.Principles of Marketing. Englewood Cliffs, N.J: Prentice Hall, 2009. Print.