If a new product developer thinks he can just put his product on shelves and watch if fly and make money, he is sorely mistaken. It is crucial to evaluate how your product is doing, and see where its strengths and weaknesses are. Its is your product, you have control and responsibility for it. Control consists of measuring and evaluating the results of marketing activities and taking corrective action where needed. Finally, marketing analysis provides information and evaluations needed for all of the other marketing activities. (Armstrong/Kotler, Marketing, pg 31) It is important to take the information gathered and make changes in your marketing plans where needed. It is also just, if not more important to take the positive information and capitalize on it and increase what is working. Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage. (Armstrong/Kotler, Marketing, pg. 31) This will be a key part of the success of the new product.
Monday, February 27, 2012
Final Project: Promotion
Promotion is going to the fun part of my marketing plan. When people walk into stores they take a scan around the entire store just to get a good look of what they have. Most of the health and nutrition stores I have seen are bland with very little color. People nowadays are looking for low prices, so they are focusing on tags and numbers. Consumers have become more deal oriented. In the current economy, consumers are demanding lower prices and better deals. Sales promotions can help attract today’s more frugal consumers. (Armstrong/Kotler,Marketing, pg. 37) My plan is to distract the buyer with the youthful colors and images of cartoon-like rocket ships and kid stuff. My promotion goals are to bring youth onto being healthy. A given promotion runs the risk of being lost in a sea of other promotions, weakening its ability to trigger immediate purchase. (Armstrong,Kotler, Marketing, pg. 37) My big fun ideas may be a gamble due to the risk of the above quote. I don’t feel my promotion runs the risk of getting lost among other promotions. My approach is different than most others in those types of stores. Adds in nutrition stores have the slogan “ you can look like this” Mine is focused on “you can feel like this” Promoting Chocolate Boosters in this fashion is going to be a positive experience when consumers are using them and feeling better.
Final Project: Price
Chocolate Boosters (pack of 30 pieces)$24.99
Pricing can be a tricky aspect of introducing a new product. It is even harder when your product is just a different version of an existing product. You never want the consumer to say “why would I pay this price, when this one is cheaper and it’s nearly the same thing?” That can be damaging. My first instinct is to price Chocolate Boosters a little more than similar products at first, so the consumer knows the quality and value of it. Companies should be very wary of risking their brands’ perceived quality by resorting to deep and frequent price cuts. Some discounting is unavoidable in a tough economy and consumers have come to expect it. (Armstrong/Kotler, Marketing, pg 43) I feel I will keep the price of consistent, because the quality and value doesn’t change, why should the price. If by some reason the market fluctuates, I may follow the market with my prices. If Chocolate Boosters are selling off the shelf, of course I will adjust pricing accordingly. Dynamic pricing makes sense in many contexts—it adjusts prices according to market forces, and it often works to the benefit of the customer. But marketers need to be careful not to use dynamic pricing to take advantage of certain customer groups, damaging important customer relationships. (Armstrong/Kotler, Marketing, pg, 47) Pricing will be a trial and error process. I want to find a perfect medium between a high price to generate a descent profit and the right price for what its worth and its value.
Final Project: Distribution
I have decided to sell Chocolate Boosters in Health food stores and also vitamin type stores. I may even try them out in convenience stores, such as 7-11, or food marts. This brigs up the question of distributing my product to these stores. I feel I want to use intensive distributing. Producers of convenience products and common raw materials typically seek intensive distribution—a strategy in which they stock their products in as many outlets as possible. These products must be available where and when consumers want them.(Armstrong/Kotler, Marketing, pg. 25) This seems like the process for me due to the fact that these distributers can get my product to a variety of stores. I may also use another type of distributing to gain a good relationship with a few companies. This has many benefits as well. By using selective distribution, they can develop good working relationships with selected channel members and expect a better-than-average selling effort. Selective distribution gives producers good market coverage with more control and less cost than does intensive distribution.(Armstrong/Kotler, Marketing. Pg 26) I think that I will try to incorporate these two types of distribution to get Chocolate Boosters into many stores and build solid relationships with strong distributing companies
Final Project: Product
The great thing about Chocolate Boosters is that I am actually just coating existing products. The great thing is I already have a base of loyal costumers and users. I am looking for a slightly better reaction to the supplements’ than they had before. The consumer will feel the same health and energy benefits with a better taste.. There are many different energy supplements and vitamins already on the market, That gives me a variety to work with. An organization with several product lines has a product mix. A product mix consists of all the product lines and items that a particular seller offers for sale. (Armstrong/Kotler, Marketing, pg 22) My plan is to in a sense team up with all these existing brands and offer to make their bad tasting supplements better. By adding a smooth chocolate covering loyal customers will continue to buy them and hesitant consumers will hopefully be pushed over the edge. Product quality is one of the marketer’s major positioning tools. Quality has a direct impact on product or service performance; thus, it is closely linked to customer value and satisfaction. (Armstrong/Kotler, Marketing, pg. 13) Once I have these new and existing costumers, I will need to keep them coming back for more. I am counting on the original vitamin or energy supplement to work as it is designed, and keep producing positive results.
Final Project: Target Marketing Strategy
Difficulties arise in developing a product or brand that will satisfy all consumers. Moreover, mass marketers often have trouble competing with more-focused firms that do a better job of satisfying the needs of specific segments and niches.(Armstrong/Kotler, Marketing, pg. 25) It is said that, trying to sell to everybody does not work. It seems less effective to sell to a more narrow demographic, but it works. My Target Marketing Strategy is to study the type of people that are already buy such supplements. I feel my target consumers are males 18-45. A lot of young adults are getting into working out and taking supplements to help them bulk-up and boost their energy. Men reaching into the late 30’s and 40’s are wanting to maintain the health and take supplements for what their bodied are lacking.
Trying to reach different market segments with different advertising campaigns increases promotion costs. Thus, the company must weigh increased sales against increased costs when deciding on a differentiated marketing strategy. (Armstrong,Kotler, pg. 27) I do feel I will need adjust my campaign due to the fact that my age group is rather large. I will advertise my product a bit different to the 18 year olds than the 45 year olds. This may not take to much tweaking. The 18 year olds want to have the energy of little kids and the 45 year olds want to feel like the 18 year olds.
That is my goal, to make you feel younger.
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