Positioning

                              —- What the customers think exceeds what the true is

                                           

Bawang Shampoo, a Chinese hermal medicine shampoo, was indeed efficient and healthy to nourish the hair, so it gained a stable and large amount of customers. However, in 2010, a customer claimed that the quantity of Carcinogens in Bawang Shampoo is higher than the safety standard. Everything changed after that news came out .

Although the news has been proven to be fake, nearly 80 percentage of customers lost confidence of the product and Bawang Company’s stock slumped and is unable to recover. The news reminded me of the concept of repositioning the competition which I learnt in class 8. Bawang Shampoo’s competitors tried to reposition Bawang Shampoo and change the view of customers towards it by broadcasting some fake news. Interestingly, even after purchasers knew that the Bawang Shampoo is totally safe to use, they still don’t want to buy it anymore. It seems that customers easily lose confidence especially when the products are connected to their personal health.

The news also indicates that companies ought to give customers access to efficient and quick channel to communicate with company to maintain a good and long-term relationship with customers. Additionally, when dealing with an emergency or scandal, company is expected to be more responsible and positive to solve the problem. As a result, customers will still keep confidence in buying the products.

 

 

 

Sources:

1.”What do Hongkongers think about Occupy Central amidst warnings of a “tragedy”?.” South China Morning Post. N.p., n.d. Web. 5 Oct. 2014. <http://www.scmp.com/article/721444/many-bath-products-contain-carcinogen-bawang-shampoo>.

 

2.”Bawang.” (01338). N.p., n.d. Web. 5 Oct. 2014. <http://quote.eastmoney.com/hk/01338.html?StockCode=01338>.