Essay OXO: Satifaction Guranteed

950 Words May 22nd, 2014 4 Pages
OXO

Satisfaction Guaranteed

4/27/2014

OXO’s most profitable customers are those with dexterity problems like arthritis such as the wife its founder, Sam Farber, had when coming up with the idea of starting OXO. Now OXO designs products that are usable by as many people as possible. This means that men and women, young and old, left and right handed, and those with special needs can utilize their products (OXO, 1990). “Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs (Kotler & Armstrong, 2014).” Psychographic segmentation is primarily used by OXO in
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In comparison to like items, OXO adopted the correct pricing scheme and has made itself a viable competitor in the home goods market. OXO is doing what any other reasonable and profitable company is doing by advertising on social media sites. There is vast community of social media users that can be pose as potential customers of OXO. Facebook and Twitter are the two most reputable social media sites and they OXO utilizes both to broaden its customer base. Facebook alone has:
“over 1.15 billion users
One million webpages can be accessed with the “Login with Facebook” feature
23% of Facebook users login at least 5 times daily
47% of Americans say Facebook is the top influencer of their buying decisions
On average, Americans spend %16 of each online hour on Facebook.
70% of marketers acquire new customers through Facebook.
And Twitter:
Now has over 550 million registered users and 215 million monthly active users
Between 2012 and 2014, Twitter achieved a growth rate of 44%
34% of marketers use Twitter for lead generation (Romeri, 2014).”
The vast amount of internet users speaks for itself. OXO is conducting business via internet and attracting a multitude of clients through social media and word of mouth. OXO has raised the bar for the kitchen gadget market with its Good Grips product line and its guarantee of satisfaction. They’ve even taken it a step further to cut advertising costs by advertising through social media sites and even creating a

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