Market identification and consumer preferences for a new adhesive bandage

¶ … New Adhesive Bandage Into a New

MARKET

Introducing a new adhesive bandage into a new market

The study addresses the problem of market identification for a new bandage. Sample population is the parents of children aged between 3 and 15. Research methodology is through primary and secondary research. The findings test the first and second hypotheses and the overall findings reveal that consumer prefer an adhesive bandage with low price and having high quality. The finding also reveals that branding contributes to an adhesive bandage market advantages.

Problem Addressed

Organizational Chart

Hypothesis/es Dependent Variables, Independent Variables, Population (sample), Methodology

Survey Questions

Summary of your findings (from the survey) Hypothesis Testing and Evaluation

Summary

References.

Introduction

Introducing a new bandage into the market is a problem that this study attempts to address. The research interviews the sample population and research findings reveal that value, which is the combination of price, and quality, are the deciding factors that people use to demand for a bandage in the market.

Problem Addressed

The study addresses the problem of market identification for the new product. Research analysis reveals that children aged between 3 and 15 forms more than 70% of the adhesive bandage users. Thus, the study has been able to address the problem by identifying the right market for a new adhesive bandage.

Literature Review

Adhesive bandage sector is among the fastest growing segment in the United States. In the Global market, the United States is the largest consumers of adhesive bandages. (Freedonia Group 2010). Factors leading to the introduction of a new bandage into the market include combination of socio-cultural factor, legal and competitive market environment. Market analysis reveals that Hispanics are the major consumers of adhesive bandage since an average adult Hispanic has between 3 and 5 children which is more than 2.7 national averages. Moreover, adhesive bandage market is very competitive and some of the key players in the market are Johnson & Johnson, Brand Aid Brand and KidCare. More importantly, Branding technique is critical to differentiate product in the market, and branding is an effective tool to create customer loyalty. (Volckner & Sattler, 2006).

Organization Chart

The research is organized as follows:

First section provides research objective, research problem and research question.

The second section reviews the previous literatures on adhesive bandage. With review of the literatures, the study identifies children as the major users of adhesive bandage. The study also develops hypotheses in this section.

The third part of the study provides research methodology that reveals data collection, research design and sample population.

Research Questions

Research question is as follows:

What is an appropriate market for a new adhesive bandage?

Hypotheses

H1: Strong brand enhances firm's competitive advantages

Ho: Strong brand does not enhance firm's competitive advantages.

In the first hypothesis, Strong Brand is identified as an independent variable while firm is identified as a dependent variable.

H2: Setting the right price for a new adhesive bandage increases chances of achieving high market shares.

Ho: Setting the right price for a new adhesive bondage does not increase chances of achieving high market shares.

In the second hypothesis, price is identified as an independent variable while market is identified as a dependent variable.

Summary of the Findings and Hypothesis Testing

Findings from the survey reveal that combination of pricing and quality are the major attributes that consumers use to demand for adhesive bandages. 80% of the sample population strongly agrees with survey 1, 2, and 9. The findings of survey 1, 2 and 9 have agreed with the second research hypothesis (H1) and thereby reject the second null hypothesis (H0).

Addition, 72% of the sample population strongly agrees with survey question 6 and survey question 3. The findings of these survey questions test and agree with the first research hypothesis (H1), and thereby rejects first null hypothesis.

Additionally, television and internet are the advertising medium that the more than 70% of participants prefer. Thus, less than 10% of the sample population purchase adhesive bandage with high price.

Summary

The study addresses the problem of market identification for a new bandage. Findings from the survey reveal that participants prefer an adhesive bandage with low price and high quality. The study tests the first and second hypotheses, and the overall findings reveal that branding contributes to an adhesive bandage market advantages.