Marketing Strategies: Adult Pleasure Toys and Lingerie This report discusses the presence of a company that produces adult toys and lingerie. There are several parts to this analysis. First, the report examines the market segment and defines the target customer according to several types of segmentation. For a complete understanding of the targeted market, the report chose psychographic segmentation, demographic segmentation, behavioral segmentation and benefits sought segmentation.

The choice for these methods was a result of the type of product. The conclusion is that the targeted consumer is likely 20 to 45 and is driven by different motivations. In young age, the idea of experimentation is the primary motive, in the upper part of the age segment (30s and 40s) it is likely the need to experiment in the couple.

In terms of differentiation strategies, the report concludes that it is more difficult to differentiate based on the nature of the product, which is less customized, but that the company should focus on other parts of the marketing mix, including pricing strategies. It should also focus on the way the product is delivered. Here, the nature of the product implies discretion, so an online distribution system could be helpful.

Another large part of the report discusses environmental factors that could impact the business. Legal, technological, social and economic issues are discussed. The overall conclusion is that the business is more sensitive to economic issues than other products and the technology offers an opportunity in improving customer experience. As seen previously, this could also become a competitive advantage for the company.

Market segment and target customer

Marketing theory recommends several different methods that can be used to segment consumer markets. This report will focus on three particular ones, more relevant given the background of the business and the type of products it sells: psychographic segmentation, demographic segmentation, behavioral and benefits sought. As a side note to behavioral segmentation, this report will also discuss the market in terms of segmentation by occasions.

According to Fripp (2012), behavioral segmentation looks at the relationship that the client has with a certain product or service. This will likely label the user as a heavy or light user, as a loyal or occasional user etc. A particular aspect of behavioral segmentation is segmentation by occasion. This is particularly relevant, because erotic toys and lingerie are a part example of a product that is purchased primarily around certain holidays, notably St. Valentine's Day.

Taking into account some of the other variables relevant to behavioral segment, one can point out that erotic products are not necessarily the type of products that develop a following. They are more the type of product that someone tries from time to time in order to bring an additional element of novelty into one's sexual life. As a consequence, the company does not need to develop a following.

Lingerie, on the other hand, does develop a following, whether it is or not erotic lingerie. Women grow attached to a particular type of lingerie, and they use this even in conversation with their peers to promote a certain social status. This is not necessarily true only for recognized brands such as Victoria's Secret, but for European ones as well.

Segmentation by benefits is based, according to Reid (2009), on the needs of the customer and on what he perceives will bring him added value when using the product. In the case of the products that this company is commercializing, the customer is seeking to maximize his or her pleasure during a sexual act with his or her partner. This in turn can increase self-esteem, among other benefits. The lingerie part of the business could operate in a similar way, women wearing lingerie not only for the sexual act, but to feel beautiful, to feel good about them.

Demographic segmentation looks at things such as age group, sex or ethnicity. This report believes that the products address the 20 to 45 age group. The company should target females in this age category for the lingerie products and both males and females for the adult toys and other erotic products. The company could focus on married couples although, given the age segment that has been decided as a targeted market, this is not a necessity. The segment should also target individuals with medium and higher income: the products are not expensive per se, but targeted this category of consumers could ensure recurrent purchases over time, helping to build clientele.

When looking at psychographic segmentation, the most important elements to consider are lifestyle and personality....

The company should target individuals that are open to sex and sexuality and who are willing to experimentation in their sex life. These individuals should also be interested in sex, although this variable should not be seen as something limitative.
Company's strengths and weakness relative to competitors

The company's strengths and weaknesses are general and not related to particular competitors. For some competitors, such as Victoria's Secret, the company's weakness will appear amplified because of the size of Victoria's Secret and its market share.

The most important strength that the company has is the initial enthusiasm. The entrepreneur spirit means that there is a certain energy about starting a business and this is something that established companies no longer have. The latter are no large bureaucratic structures that lack much of the initial commitment and focus.

Another strength that the company has is flexibility. This will initially be a small company. Small companies are more flexible on the market, they are able to make decisions in almost real-time, primarily because their organizational structures are so much more simplified and communication flows much easier top-down and bottom-up. This increased capacity to react could be an important strength as the company builds its business.

Finally, another strength is that the company is unknown. This is also a weakness, as seen below, but it represents a strength as well because the other competitors on the market have no information about a new company. They do not know how to position themselves. This company, as a new entrant, has, on the other hand, made a solid market analysis and knows very well what its competitors are doing, what their strategies are, where they plan to develop. So, one of this company's strength is a better knowledge of the market.

The primary weakness of the company is that it is a new company on the market. This report shows that the type of products that the company commercializes (adult toys and lingerie) is not necessarily the type of products for which clients are likely to build a loyalty. You do not attach yourself to the adult toy company or to a particular lingerie company, except in particular situations. However, there needs to be something that will convince the customer to switch and choose a new company on the market. A first something could be curiosity, but the company needs to encourage the client towards that curiosity. However, the fact that the company is not yet known is a weakness.

Another potential weakness is the fact that the company is still in its incipient stages and does not yet have a properly developed internal organizational framework. For that matter, even the external network of its connections with other partners (distributors, suppliers etc.) is not that well developed. The company needs to spend time to make sure that the way these structures grow is in line with the organization's strategic vision and long-term objectives.

An important absolute weakness, although not one that is necessarily relative to the other competitors, is that the products are particular and, as such, are more complicated to sell. This takes into account everything from the way these products will be marketed to the way these products will be distributed and delivered.

The financial weakness should also be considered relative to the other competitors. These competitors are already operational, so they have activities that are generating money. The company is only at the very beginning, so it is in an investment phase where debt has been accumulated in order to start the business, with revenue in the very beginning likely at lower levels. The company should consider monitoring closely its cash flow, so that it is not in a situation where it will not afford to pay day-to-day expenses.

When it comes to the lingerie business an important weakness that should be analyzed is its access to the modeling world. A successful lingerie business will operate better if a well-known model advocates for it. Victoria's Secret is a well-known example in this sense. The company should ask itself whether established models are likely to model for a company that is new on the market and that, additionally, also sells adult toys as part of its business. Some may consider this damaging to their reputation and may think twice before agreeing to commit to cooperation.

Differentiation strategy

It is difficult to differentiate when it comes to adult toys and lingerie, so this subsection will discuss two different approaches that could be considered. The first is a non-product differentiation. The company will be a newcomer on the market and could innovate…