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OXO Kitchen Gadgets – Developing marketing strategy on a budget

OXO target market
In order to identify the target market of OXO, market segmentation must first be considered. Market segmentation can be described as dividing the entire market into customer segments. According to Kotler and Armstrong (193), there are various variables that are used in segmenting the consumer markets. In the marketing strategy video that was uploaded to YouTube by OXO, the Senior Vice president of marketing and sales of OXO noted that their initial target market was the older consumers however they have re-strategized to attract younger consumers through their innovation and design. In their new strategy, the variables that are used include the psychographic, demographic and behavioral relationships between the juniors and seniors, the individuals who are impaired and the foodie. The brand name of OXO is more popular with design-savvy individuals. Additionally, OXO targets the consumers who are adopters of innovative technology.
OXO value proposition
When considering the value proposition, OXO asks itself why customers are interested in their products. The organization uses this query in their value proposition and the answer to this question is their unique selling position. The gadgets that OXO designs have a cool design, ease of use and comfortable to use. Based on its design, all the gadgets that Oxo produces is made in such a way that a wide variety of consumers is able to use it as much as possible. When these kitchen products are being designed, the consumers which include the young, old, gender, right or left handed individuals and even the individuals with any kind of special needs are considered. The mission of OXO is to ensure that the products that they develop is up to date and improved continuously based on the requests of the consumers. They have hence over time been able to convince new consumers that their gadgets add value to their lives when compared with the products of their competitors. While conducting market research, OXO has noticed that the competition is increasing due to the development of low-end products and copycat products by some of their competitors such as Wustof. OXO however still maintains a competitive edge over their rivals.
OXO product mix
OXO began its business with 15 products in 1990. At the time, this was one of the biggest product variances that were produced by a company. Currently, the organization has more than 7 product lines for their kitchen gadgets. The products that they produce are over 500. The main products that OXO produces are used in the kitchen. These tools that are used in the kitchens all over the United States make cooking easier. The utensils include food storage containers, measuring spoons, cups, mixing bowls, graters, thermometers, different sets of cutlery, spice grinders. The products come in different designs, and they are all polished differently with ergonomics and clever functionality. Additionally, the products are identifiable with the soft, black, and thick non-slip rubber materials to protect the consumers from being burnt and hurt while they are using them in the kitchen. The products are easy to use and look good due to the design. This makes it possible for the consumers to hang the products in their kitchen without making the kitchen look clumsy. Additionally, the products that OXO produces are sold in many retail and wholesale outlets in more than 52 countries in the world. This depicts that Oxo has become a market leader globally.
OXO distribution strategy
Any distribution channel can take two different ways. According to Diamond et al. (12), the channel can be short in a manner that is direct from a vendor to the consumer or in some instances include various interconnecting intermediaries who may include distributors, wholesalers, retailers, and agents. For any organization, it is difficult to build an effective distribution channel. This is because of the many challenges that are associated with the different distribution strategies that are available. According to OXO website, there are various products that are available directly to retailers. This gives the impression that OXO implements an aggressive intensive distribution channel. OXO stocks their products in many outlets that can accept their products. Initially, OXO merchandise products were slated for upscale distribution channels but after some time they targeted the low priced distribution channels such as supermarkets. Though their products were initially intended for the high-end markets, the low-end markets provided a much more profitable option due to its large scale. Currently, their products are available in most of the retailers in the United States. All of the OXO products are however not available in all the distribution retail stores apart from its website. Therefore, all the kitchen gadgets are not available in the retail outlets.
OXO pricing strategy
Pricing is an indication to consumers about product sitting and value. Consequently, a careful analysis is essential before rate levels are pronounced in the market. When setting costs of the products, it is imperative to sensibly balance the tradeoffs concerning volume, price, access and profitability. OXO’s accomplishment in the kitchen appliances and tools marketplace, even reporting amplified sales during current economic challenges, says they are valued right. That, nevertheless, is likely not attributable to providence. The merchandises supposed value by the customer is a more likely description. According to Clarkson (45), because of their exceptional policy, a handle made to be comfortable to grip for short and long times of use and held firmly when wet, the charges are priced slightly upper than others, so it had to be professed as being a much higher excellence and desirable by all prospective consumers. Still, OXO dares themselves to get costs down to something that is still attractive and can sell at a sensible price – an obligation started over 20 years ago with forefather, Sam Farber. Farber also thought that clienteles are loyal to an innovative establishment who keeps new contributions coming. The objective has always been to offer budget-conscious customers with good worth kitchen tools that observe to OXO’s universal design philosophies.
OXO’s use of social media
Initially, OXO did very little direct customer promotion but have acquired lots of public relation and word of mouth promotion. They, nonetheless, get the “principal bang for the buck” over social media. They have more than 75 thousand Facebook individuals who have liked their Facebook page; they also converse through Twitter and blogger outreach. It must be noted that all of these social media platforms have been great at updating individuals of their consummation guaranteed use. Cagan (186) notes that the social media platforms have also engaged people to purchase various products. The advantage of using social media platforms is the ability to track responses to products which allows them to make modifications to meet consumer demands. Social media has demonstrated to be a great advertisement platform for OXO. Kitchen apparatuses and tools is a $500 million group for OXO, and though they could reach a much wider target market through commercial promotion, the cost is perhaps not affordable. Luckily, with more and more individuals interconnected through social media platforms, OXO will remain to positively influence this to build consciousness of their merchandises.
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Works cited
Clarkson, John. Inclusive Design: Design for the Whole Population. London [u.a.: Springer, 2003. Print.
Cagan, Jonathan, and Craig M. Vogel. Creating Breakthrough Products: Innovation from Product Planning to Program Approval. Upper Saddle River, NJ: Financial Times Prentice Hall, 2002. Print.
Kotler, Philip, and Gary Armstrong. Principles of Marketing. Boston: Pearson, 2014. Print.
Diamond, Jay, and Gerald Pintel. Principles of Marketing. Englewood Cliffs, N.J.: Prentice-Hall, 1972. Print.
Cagan, J. and C. Vogel. Case Study from Creating Breakthrough Products: the OXO Good Grips. 20 November 2001. Web.

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