RecommendationsDespite the increase in OGX shampoo usage in the region, competition in the region is still high. However, our research highlighted SMART recommendations that the company can adopt to increase market share and improve their product.
OGX shampoo needs to create more awareness regarding the benefits that emanate from natural shampoo over conventional products. One of the ways that the company can create more awareness is through creating a new marketing department with over 10 distinct blogs over the next 2 months that highlight the benefits associated with the use of their natural shampoo. Our research found out that most local competitors in the regions had multiple blogs to advertise their products, which allowed them to get a wider consumer network even outside the city. Due to the fast lifestyle changes being witnessed in the region that are fueled by increasing numbers of internet users and widening disposable income levels, beauty bloggers are playing a critical role in changing the consumer behaviors. By creating a new online advertisement department, OGX shampoo is expected to increasing mobile phone advertisements, as research by Eurometer International (2015) found out that over 80 per cent of individuals below the age of 25 used a smart phone at least once daily. In retrospect, this is expected to increase sales and built a large consumer network.
The second strategy that the company can adopt is to increase their online presence, by increasing their customer service team by over 100 per cent in the next 6 months. According to our research, majority of OGX shampoo users are below the age of 25. Research conducted by Aimia (2014) revealed that rapid advances in the Information and Communications technology (ICT) sector has increased monumentally over the past few years. In retrospect, technology has contributed to changes in lifestyles of these millennials, who now rely on the internet to make their daily choices. However, our study revealed that OGX shampoo online presence and service delivery is not effective compared to its competitors in the natural hair products market. Therefore, for the company to increase its market share, it is vital to ensure that it shifts its focus to adopting more effective online service delivery services. This is expected to increase loyalty from this age group by building better relationships through online communication.
Our research provides invaluable insights regarding the use of organic hair products among millennial in Jeddah, Saudi Arabia. Despite the growing rise in the use of hair products made from natural products across the globe, there exist a constrained number of researches that focuses on this region (Zecic, 2015). Therefore, our study’s aim was to analyze the trends in the use of natural hair products, in particular OGX shampoo. Information acquired from the research is expected to be of great importance to hair products’ marketers in identifying the current markets trends in the region. This will enable them to assess the demand of the products and identify the level of competition of their specific product. Consequently, they can be able to tailor their products with the consumers’ expectations to guarantee more satisfaction. In addition, the research will also be of importance to consumers, as data obtained will provide in-depth information regarding the benefits of using natural hair products Due to the fast lifestyle changes being witnessed in the region that are fueled by increasing numbers of internet users and widening disposable income levels, beauty bloggers are playing a critical role in changing the consumer behaviors.
Our research identified that in Jeddah, Saudi Arabia, millennial between the ages of 15 and 30 years were the biggest hair beauty products consumers. These findings are consistent with intelligence collected by the global market intelligence company, Euromonitor International (2015), which highlighted that Saudi Arabia held the largest share in the Middle East in terms of organic hair products spending. An interview with an editor of Drug Store News, one of the region’s most popular magazines, identified that millennials were the most active readers and participants in the region. With the ever changing lifestyles being experienced in Saudi Arabia brought along by the increasing number of internet users and Western cultures influences, millennials are more aware of the benefits brought along by organic shampoo over conventional hair products (Zecic, 2015). Our interviews also revealed that a large proportion of OGX shampoo also preferred such an organic product due to their associating environmental benefits. Unlike shampoo made from chemical products, OGX was made from pure natural products and was therefore biodegradable.
From our research, it is evident that the hair products industry is expected to witness increased growth, especially from the millennials. According to Eurometer International (2015), Saudi Arabia dominates in the Middle East region, in terms of number of hair salons. The company further identified that by 2017, the hair care market is predicted to hit $ 708 million due to the region’s strong economic growth. It is vital, therefore, for organic hair products companies to ensure that it invests heavily on building a local presence to maximize profits in the future. Future researches should therefore focus on analyzing how shopping trends among this younger and more tech-savvy generation will change over the years.
- Aimia (2014). Smart, Savvy and Set to Soar: Customer Loyalty in the Middle East. Aimia Inspiring Loyalty.
- Eurometer International (2015). Saudi Arabia. Accessed online from http://www.euromonitor.com/saudi-arabia
- Zecic, Dada. 2015. Firm foundation: Women spend massive sums on cosmetics in Saudi Arabia. BQ Magazine.