Advertising Media for a New Product Launch

Week I: Advertising Media for a New Product Launch

When it comes to defining types of media available for advertising a specific product, two major ones are usually identified, i.e., the modern and the traditional ones. While the latter is viewed as the one that is targeted at the largest amount of target audience, the former is usually the cheapest one, which serves as the key reason for using it by most modern SMEs. In order to facilitate a complete success of a promotion campaign, one will have to incorporate both types of media into the advertising program, though; thus, the product will receive the attention of the greatest amount of the target customers. Therefore, such types of media as billboards (traditional media) and social networks (modern media) should be considered as the most efficient ones (Iacobucci, 2014).

Creating an advertising budget will require an analysis of the costs for the traditional and modern media advertisements. As far as the first one is concerned, the area, where the advertisements must be located, matters greatly. In the second scenario, the costs for placing advertisements on certain sites will have to be calculated. In addition, the money required for designing the advertisements will have to be incorporated into the budget.

Though the Coca Cola Company has been doing quite well over the past few years, at present, it seems to be outranked by PepsiCo in terms of food sales (Food Processings top 100, 2014). In order to attract more customers, the following message can be used: Coca Cola is new and improved (AIDA: Attention)! Try new flavors that you have never tasted before (AIDA: Interest). Delicious mango, pineapple and kiwi flavors will make you feel that you are in a tropical paradise! (AIDA: Desire) Buy now for only $2.25! (AIDA: Action).

Week II: Components of a Social Media Campaign

When creating the media campaign, one must be especially attentive to the strategic/operational KPIs. In addition, the effects that the chosen strategies have on the ROI of the company in question are to be born in mind. Therefore, when picking the approach that can be viewed as viable for a certain small or medium entrepreneurship, one should give their preference to boosting sales via making most of the content that the company introduces to the audience information based, while only about 1520% of the content should incorporate the promotional elements (Barker, Barker & Bormann, 2012). Moreover, it is essential that the content created by the organization should be very diverse. Thus, the effectiveness/ efficiency ratio will be increased in the company and the subsequent rise in the organizations success in the target market can be expected.

As a manager of a mall, in order to become more successful, I will have to integrate social media into the promotion of the products. To be more specific, it will be required to create series of advertisements for the users of Twitter, as Colleen Francis did (Smith, 2014). The latter has proven quite successfully that the method is very efficient. Additionally, the process of goals setting must be reconsidered. It is crucial that the organizations objectives should be social media based and that the emphasis on transferring data with the help of the social network could be utilized. Thus, a greater amount of the target audience can be reached. As far as the process of setting goals within a specific strategy associated with the social media is concerned, the example of Printfirm, which has managed to grow with the help of the specified approach, must be mentioned (Parker, 2014).

Reference List

Barker, M., Barker, D. I., & Bormann, N. (2012). Social media marketing. Stamford, CT: Cengage Learning.

Food Processings top 100. (2014). Web.

Iacobucci, D. (2014). MM4: Marketing management (4th ed.). Mason, OH: South-Western Cengage Learning.

Parker, M. (2014).. Digital Printing. Web.

Smith, J. (2014). . Forbes. Web.

Advertising Media for a New Product Launch

Week I: Advertising Media for a New Product Launch

When it comes to defining types of media available for advertising a specific product, two major ones are usually identified, i.e., the modern and the traditional ones. While the latter is viewed as the one that is targeted at the largest amount of target audience, the former is usually the cheapest one, which serves as the key reason for using it by most modern SMEs. In order to facilitate a complete success of a promotion campaign, one will have to incorporate both types of media into the advertising program, though; thus, the product will receive the attention of the greatest amount of the target customers. Therefore, such types of media as billboards (traditional media) and social networks (modern media) should be considered as the most efficient ones (Iacobucci, 2014).

Creating an advertising budget will require an analysis of the costs for the traditional and modern media advertisements. As far as the first one is concerned, the area, where the advertisements must be located, matters greatly. In the second scenario, the costs for placing advertisements on certain sites will have to be calculated. In addition, the money required for designing the advertisements will have to be incorporated into the budget.

Though the Coca Cola Company has been doing quite well over the past few years, at present, it seems to be outranked by PepsiCo in terms of food sales (Food Processing’s top 100, 2014). In order to attract more customers, the following message can be used: “Coca Cola is new and improved (AIDA: Attention)! Try new flavors that you have never tasted before (AIDA: Interest). Delicious mango, pineapple and kiwi flavors will make you feel that you are in a tropical paradise! (AIDA: Desire) Buy now for only $2.25! (AIDA: Action).”

Week II: Components of a Social Media Campaign

When creating the media campaign, one must be especially attentive to the strategic/operational KPIs. In addition, the effects that the chosen strategies have on the ROI of the company in question are to be born in mind. Therefore, when picking the approach that can be viewed as viable for a certain small or medium entrepreneurship, one should give their preference to boosting sales via making most of the content that the company introduces to the audience information based, while only about 15–20% of the content should incorporate the promotional elements (Barker, Barker & Bormann, 2012). Moreover, it is essential that the content created by the organization should be very diverse. Thus, the effectiveness/ efficiency ratio will be increased in the company and the subsequent rise in the organization’s success in the target market can be expected.

As a manager of a mall, in order to become more successful, I will have to integrate social media into the promotion of the products. To be more specific, it will be required to create series of advertisements for the users of Twitter, as Colleen Francis did (Smith, 2014). The latter has proven quite successfully that the method is very efficient. Additionally, the process of goals setting must be reconsidered. It is crucial that the organization’s objectives should be social media based and that the emphasis on transferring data with the help of the social network could be utilized. Thus, a greater amount of the target audience can be reached. As far as the process of setting goals within a specific strategy associated with the social media is concerned, the example of Printfirm, which has managed to grow with the help of the specified approach, must be mentioned (Parker, 2014).

Reference List

Barker, M., Barker, D. I., & Bormann, N. (2012). Social media marketing. Stamford, CT: Cengage Learning.

Food Processing’s top 100. (2014). Web.

Iacobucci, D. (2014). MM4: Marketing management (4th ed.). Mason, OH: South-Western Cengage Learning.

Parker, M. (2014).. Digital Printing. Web.

Smith, J. (2014). . Forbes. Web.

Product Launch in German Market

Introduction

Launching a product into a new market is often challenged with a mixed reaction from potential customers. Often, early adopters form only the narrow apex of market segment triangle consisting of competition, divergent preference, and different lifestyle controlled by a customer’s purchasing power.

Therefore, before an entry bid into a new market, several preset conditions must be fulfilled from recommendations of a researched sales projections and market behavior.

As a matter of fact, success of a product launched in a new market will be determined by the management decision rationale, market segmentation, pricing, existence of competitors, buying motives, magnitude of risk, and uniqueness of the said product.

Beauty industry has been experiencing constant metamorphosis. Reflectively, new products and modifications on old products are the order of the day as businesses across the globe attempt to cut and maintain a niche in the crowded market.

Management Summery

Management science is critical in modeling and transforming a blue print of ideas into a reality. Management involves research, design, production, sales, and efficiency as means of maximizing profits. As a matter of fact, a successful management team should be put in place especially in marketing, logistics, and follow up to determine success and sustainability in the volatile fragrance market characterized by pop culture and celebrity endorsement.

Therefore, the management team for Tunner spar spray will consist of the marketing manager, logistics personnel. The marketing manager has the responsibility of monitoring progress, managing risk, and studying consumer behavior. Periodic finding will be important in product modification and packaging to meet demands of customers in the highly volatile Germany.

Target Group

In product market, our life style defines the activities we are involved in, beliefs, opinion, health aspect, and interests. As defined in the “Activities, Interest, and Opinion”, life style directly dictates purchasing behavior and preference. Germany population consists of many literate women who have continued to be more conscious of health matters and beauty.

Specifically, the cosmopolitan Deutschland city has a comfortable percentage of high market women who have fully embraced beauty and natural attractiveness. Besides, they tend to associate with sophistication and have money to spend. The middle and high social classes women are the key target this product. This groups are heavy spenders in beauty products especially those that promise unique aspects and have unique features.

As the issue of need for safety and prevention of cancerous infection penetrate beauty industry, German women have increasingly grown shy from synthetic cosmetics and prefer natural products. The target group has a peculiar buying motive for beauty product. The main reason for purchase of beauty products is to try the best possible (Longenecker, Petty, Palich and Moore, 2009, p.34).

Besides, a good percentage of sales are generated by referrals from satisfied customers. Beauty products are bought for use in skin care and protection form harsh climatic conditions.

Product Development

Success of a product launched in a new market will be determined by the management decision rationale, market segmentation, pricing, existence of competitors, buying motives, magnitude of risk, and uniqueness of the said product. Beauty industry has been experiencing constant metamorphosis across the globe.

Sweet Tuner spray is a beauty product that gives clients a glowing natural skin texture. This product is developed from assorted rich Ecocert DHA elements and fragrances with active tanning ingredients. At 8.45%, this product is the best among others for that rich olive tone and golden glowing skin.

Through selective research about the potential customers that can access other beauty products in this class, and by eavesdropping on the celebrity preference talks, the resultant product is tailored and encrypted with a personal tag of quality and affordability (Butterworth-Heinemann Byrnes, 2009, p.13).

The fragrance is quite resilient and can withstand harsh sunny environment. Besides, it also has a portable stylish container bottle and some variants offer multiple customized properties thus making it easier to apply, doing away with the need for constant application as common with other products with limited adjustments flexibility.

This product has minimal effect on nearly all types of skin and has received approval from the pharmaceutical organization of Germany as having a clean bill of health. All different variety of this product emits a unique identifier fragrance regardless of the type.

Most of potential clients seem to suggest that this product is the best invention in the beauty industry (Laudon and Laudon, 2007, p.45). Besides its unique package and affordable price tag, this 200ml bottle of skin turner offers quality against money considering the fact that it retails at $5 while most of other products in the same class trade for a higher value. Also, the product comes in different fragrance to fit different occasions and customer preference.

Market Launch Risk

Beauty industry majorly functions on product identity and class affiliation. As a matter of fact, some beauty products have penetrated the market and have worn several customers who often identify themselves with these products (Zahra and George, 2002, p.23).

Women in Germany observe strong cultural practices that at times contrast modern perception of beauty and pharmaceutical usage. They believe in traditional beauty products that have been tried and approved by many users. In Munich, there are many natural and herbal therapeutic beauty agents who discretely offer the alternative beauty skin care. In a hybrid between the traditional and modern beauty, German women try several alternatives.

Adoption of a beauty product mainly depends on a recommendation by a relative or friend. Potential customers often source for traditional or household beauty products in this class from neighborhood stores. Then, they turn to the traditional beauty experts and market for further recommendations. If the find a positive response, their trust is worn otherwise they proceed to mainstream pharmacy to buy over-the-counter skin care medication as suggested to by friends (Erricos and Cristian, 2007, p.46).

This trend present a real challenge in the launch of this product since the first impression and convincing traditional beauticians may prove difficult. Besides, existing products have cult like following and change might be resisted. In addition, the opportunity cost of balancing the target and actual accomplishment is directly associated with success of the launch. Cultural competency is necessary to for success of this skin product.

In many cases, acceptability depends on perception of the targeted consumers. While well intentioned, this scenario erects more barriers to communication. Firstly, due to generational gap, an adult does not readily share all their intimate discomforts with a product like young generation does ( Maness and Zietlow, 2005,p.67).

Secondly, distortion of context can occur for concepts are culture-specific. Culturally, German communities are very social sharing household with multigenerational variance (Baskerville, 2004,p.17). Therefore, a mere approval might not necessarily translate into sales and success.

Rereference List

Baskerville, R 2004, International e-business marketing, Alabama: Cengage Learning EMEA.

Butterworth-Heinemann Byrnes 2009, Management and the Arts, 4th edn, Focal Press.

Erricos, J. and Cristian, G 2007, Optimisation, econometric and financial analysis, London: Springer-Verlag.

Laudon, K., & Laudon, J. P 2007, “Using internet tools to increase efficiency and productivity”, Essentials of Management Information System, vol 8, pp. 300-410.

Longenecker, G. J., Petty J W., Palich E. L. and Moore, W 2009, Small Business Management: Launching and Growing Entrepreneurial Ventures, USA: Cengage Learning.

Maness, T., and Zietlow, J 2005, Short-term financial management, New York: Thomson Learning.

Zahra, S., and George, G (2002), International Entrepreneurship: The current status of the Field and Future Research Agenda in Strategic Entrepreneurship creating a new mindset, Oxford Uk: Blackwell Publishing.

Spicy Walkers Crisps: New Product Launching

Executive Summary

Inspired by the increased customers’ interest in the cultures of Asian and Latin American countries, Walkers, the leading manufacturer of snack foods in the United Kingdom, currently launches new ‘Luxury’ spicy Walkers Crisps. The main feature of the new product is the uniqueness of the taste. These crisps differ from the other Walkers products in a variety of spicy tastes proposed. The customer receives the opportunity to taste the variety of flavours from the world and enjoy the healthy potato and non-potato snacks produced from the high-quality products.

New spicy Walkers Crisps can be discussed as the perfect choice for those persons who prefer tasting the high-quality products with the unique flavours which can be considered as non-harmful to their health. The company with the impressive reputation makes the emphasis on using only clear and rather unique spicy flavours. Furthermore, the levels of salt and fat containing in the proposed new spicy crisps are reduced significantly in order to provide the consumers with the opportunity to enjoy ‘luxury’ Walkers Crisps without affecting their health negatively.

Background

Walkers is the company with a long history. Today, Walkers can be discussed as one of the largest snack food producers in the United Kingdom. The company was founded in 1948 by Henry Walker, and now the company is the leader in the market of crisps and other snack foods (Walkers Crisps 2014). Walkers specializes in proposing the high-quality potato and non-potato snacks which attract the public with the variety of tastes and flavours (Sensations: Walkers 2014).

The launch of every new product proposed by Walkers can be discussed as the sensation within the market because of the focus on the remarkable tastes, unexpected variations, high quality, and available prices (Cooper 2010, p. 3; Sensations: Walkers 2014). The launch of new ‘Luxury’ spicy Walkers Crisps is one more step to creating the line of the most popular flavours based on the world traditions while comparing to the products presented in the UK market.

Market Research

To understand the positive effect of launching the new product by Walkers, it is necessary to research the influential market tendencies. While discussing the current tendencies associated with the UK market of snack foods, it is possible to note that the launch of new spicy Walkers Crisps is the effective strategy to respond to the public’s demands in new tastes and impressions. During the period of 2010-2013, the sales in the market of snack foods increased in 14% in the United Kingdom (Sensations: Walkers 2014; Walkers Crisps 2014). However, the customers note the necessity of expanding the market offer (Chitale, & Gupta 2007, p. 54; Walkers Crisps 2014).

The focus on addressing the customers’ expectations can result for the company in achieving 7% share of the market while focusing on the category of potato spicy crisps (Walkers Crisps 2014). As a result, it is important to find the balance between following the traditional approach to manufacturing the high-quality products and the necessity to propose new tastes and opportunities for customers.

Findings: Product Launch

The integrated campaign associated with launching new ‘Luxury’ spicy Walkers Crisps provides the customer with the opportunity to learn more about the product, company, and expected benefits (Walkers Crisps Range 2014). The position of the company’s leaders associated with launching high-quality unique products is reflected in the words of Neil Campbell, Walkers General Manager, who states that “over the years people’s needs have changed and so have we. Nowadays our customers are looking for snacks that do not just taste great but are also better for them” (‘£20 million relaunch for Walkers Crisps’ 2006, p. 4). The current complex launching campaign is based on the massive TV campaign and the use of advertisements in press (Walkers Crisps 2014).

While comparing Walkers Crisps with the competitors in the market, it is important to note that Walkers Crisps contain 30% less fat (Edgecliffe-Johnson 2006, p. 3; Walkers Crisps Range 2014). Furthermore, the company uses only the high-quality potatoes. Thus, the products proposed by Walkers are not only tasty and really spicy but also healthy (‘Facts and figures: Walkers Crisps’ 2005, p. 31).

It is important to focus on new ‘Luxury’ spicy Walkers Crisps’ features:

  1. New spicy flavours are inspired by the traditions of Eastern, Asian, and Latin American countries (Walkers Crisps 2014).
  2. New spicy Walkers Crisps are characterised by the improved flavour and crunch.
  3. New spicy Walkers Crisps are cooked in Sunseed™ oil which is more appropriate for cooking because of containing mono-unsaturates (Walkers Crisps 2014).
  4. New spicy Walkers Crisps are extremely spicy, but the level of salt used in the products in reduced.
  5. New spicy Walkers Crisps are characterised by the high nutritional value.
  6. New spicy Walkers Crisps offer a third of the daily wholegrain (‘£20 million relaunch for Walkers Crisps’ 2006, p. 4).
  7. There are no artificial colours and preservatives in these high-quality snacks.
  8. The Walkers Crisps are available in single 90g packs, 126g packs, 145g packs, 165g packs, and 175g packs (‘Get a taste of the Mediterranean with Walkers’ 2004, p. 10; Rigby 2010, p. 3).

To find the additional information about new spicy Walkers Crisps, it is helpful to visit the company’s website where there is the latest information on the launching products and the facts about all the details associated with the launching campaigns (Walkers Crisps Range 2014).

Discussion

The campaign which is developed to launch new ‘Luxury’ spicy Walkers Crisps concentrates on proposing new spicy flavours based on the traditions and tastes typical for the Eastern, Asian, and Latin American countries. Today, the company proposes the variety of spicy tastes which are the Thai sweet chilli, Mexican chipotle, Indian spices, and other ones. However, the launch of ‘Luxury’ new spicy Walkers Crisps is the new approach to addressing the variety of the public’s tastes because of proposing more flavours which can be chosen not only by the brand’s fans but also by the persons who are not oriented in the market of snack foods (Lodato 2008, p. 112; ‘Walkers invests millions to meet demand for crisps’ 2009, p. 6). From this point, new spicy Walkers Crisps can be discussed as the immediate response to the consumers’ needs.

Walkers also chooses to follow the effective strategy of focusing on the high quality and remarkable tastes. New spicy products from the ‘Luxury’ series which are proposed by Walkers are launched to address the tastes of the lovers of snacks because Walkers offer the variety of spicy tastes and the healthy approach to snacking (‘Promotion works Walkers Crisps’ 2004, p. 7). New ‘Luxury’ spicy Walkers Crisps can be discussed as the example of the snacks appropriate for persons following the healthy lifestyle because these products are characterised by the high nutritional value, these new spicy crisps offer a third of the daily wholegrain, and there are no artificial colours and preservatives in these high-quality snacks (‘£20 million relaunch for Walkers Crisps’ 2006, p. 4).

With the focus on the innovative healthier recipe and unique spicy flavours, new Walkers Crisps known as ‘Luxury’ because of their quality can be discussed more attractive for the consumers, and followers of the brand (‘Get a taste of the Mediterranean with Walkers’ 2004, p. 10; Mehra 2009, p. 98). Furthermore, this new category of snack food can be discussed as even irresistible for the persons interested in consuming Walkers Crisps.

Conclusion

Walkers can be discussed as the leader in the market of the United Kingdom while focusing on the actively developed industry of snacks. The progress of the company is closely associated with constant changes in the market and industry because more and more innovations and propositions are necessary to attract the customers’ attention. In this case, the leading position of Walkers depends on the fact that the company leaders are inclined to reflect the trends and address the demands.

To respond to the customers’ increased demands, Walkers chose to stimulate the production of new ‘Luxury’ spicy Walkers Crisps which can satisfy the customers’ needs at the current stage of the market development. Walkers propose the most impressive range of tastes related to snacks in the UK market. There are also many healthy snacks proposed by the manufacturer, and new spicy Walkers Crisps belong to this category. As a result, more customers are expected to pay attention to the new products proposed by Walkers.

Reference List

‘£20 million relaunch for Walkers Crisps’ 2006, Vending International, vol. 40, no. 3, p. 4. Web.

Chitale, A & Gupta, R 2007, Product design and manufacturing, PHI Learning Pvt. Ltd., Delhi. Web.

Cooper, W 2010, ‘Walkers begins search for the top crisp flavour from around the world’, New Media Age, p. 3. Web.

Edgecliffe-Johnson, A 2006, ‘Walkers to use own nutrition labels on new crisps’, Financial Times, p. 3. Web.

‘Facts and figures: Walkers Crisps’ 2005, Marketing Week, p. 31. Web.

‘Get a taste of the Mediterranean with Walkers’ 2004, Vending International, vol. 38, no. 6, p. 10. Web.

Lodato, M 2008, Management of new product launches and other marketing projects, AuthorHouse, London. Web.

Mehra, A 2009, Advertising management: media approach for market research, Global India Publications, Delhi. Web.

‘Promotion works Walkers Crisps’ 2004, Promotions & Incentives, p. 7. Web.

Rigby, E 2010, ‘Crunch time for Walkers ‘grab bag’ of crisps’, Financial Times, p. 3. Web.

Sensations: Walkers 2014, ‘Walkers Biggest ever crisp’ 2012, Campaign, p. 8. Web.

Walkers Crisps 2014. Web.

Walkers Crisps Range 2014. Web.

‘Walkers invests millions to meet demand for crisps’ 2009, Food Manufacture, vol. 84, no. 9, p. 6. Web.

Neptune Gourmet Seafood’s New Product Launch

Background

Neptune Gourmet Seafood is a leading firm in N. America’s $20 billion seafood industry with an estimated capital of $820 million (Case Study, 1998). It offers a range of high-quality seafood products, including the Neptune Gold line. The major issues, in this case, include excess inventory, inappropriate marketing strategies leading to accumulation of inventory, quality improvement to achieve 25 to 30 percent price points, and a decline in sales (10%) compared to the previous year (Case Study, 1998). The firm plans to introduce a new and cheaper product (Neptune Silver) into the market to reduce its inventory levels. This paper analyses the case to determine whether a class or a ‘mass’ marketing strategy is appropriate for launching the new product.

Analysis

Features of Neptune’s Business Position

One key feature of Neptune’s business that triggered the discussion to introduce an inexpensive product line is the high inventory levels. The current inventory represents a threefold increase from the previous year’s levels. Additionally, Neptune’s sales dropped by 10% compared to the previous year’s revenue because of high production costs and stiff competition in the industry. Thus, the high inventory levels and declining sales necessitated the decision to add an inexpensive brand to Neptune’s product line.

The Effect of the New Brand (Neptune Silver)

The introduction of the new brand (Neptune Silver) will affect three aspects of Neptune’s business, namely, revenue, supply chain, and market. The new brand will be sold at a lower price than the Neptune Gold line products. This will affect the firm’s revenue, as it has already invested $9 million in new fishing trawlers. The new brand will also affect the supply chains. Neptune must find an independent wholesaler to market the inventory as a new less costly brand. Third, the brand will compete with the existing products (Neptune Gold line). In this view, the COO is considering selling the new brand outside the existing North American market.

Rita Sanchez’s Proposal

Rita Sanchez proposes deep price reductions of up to 50% as a solution to Neptune’s inventory problems. This proposal is reasonable considering that the firm has tripled its production and the inventory has grown to two times its usual level. Moreover, even with the “demand reaching an all-time high”, the inventory level is still rising (Case Study, 1998, Para. 7). Thus, only price cuts can reduce the high inventory and ensure sustainable production.

Hargrove’s Objections to Sanchez’s Proposal

Jim Hargrove, Neptune’s marketing manager, objects to Sanchez’s suggestion to reduce prices by between 40 to 50 percent. He notes that huge price cuts will create the perception that the firm’s products are of low quality and drive customers away. For the last ten years, Neptune has occupied the top spot in Connoisseurs Choice magazine due to the high quality of its products (Case Study, 1998). He fears that price cuts will affect the firm’s brand equity and market share. Additionally, the proposal will attract unprecedented price wars that will affect growth in the industry.

Hargrove’s objections are reasonable considering that the firm has experienced a 10% revenue decline in the past year. Additionally, the rising sunk costs and intense competition have had a big impact on Neptune’s revenues. Thus, price cuts will only eat into the firm’s dwindling profits. The proposed cuts may also create negative perceptions about the quality or safety of the firm’s products, which will damage the company’s reputation and lead to a decline in market share (Joshi, 2005). It may also precipitate price wars that can affect the firm’s performance further.

Strengths and Weaknesses of the Experts’ Analyses and Recommendations

The experts note that the firm wants to introduce a low-priced brand in the existing market that is served by the Neptune Gold line. Moreover, the management is considering taking the low-priced brand to a new territory. The recommendation that the two brands be kept separate relates to class marketing. ‘Class marketing’ will allow Neptune to differentiate its products according to the characteristics of each market segment (Burrow & Bosiljevac, 2005). However, moving clients from the low-end to the high-end product would mean new brand labeling, which is costly.

Additional Information Needed

In setting up Neptune’s strategy, additional information, such as the firm’s business networks (wholesalers and distributors), will be helpful. Additionally, information about the characteristics of the existing market will be useful in designing a market coverage strategy. According to Kotler (2006), market segment differences define how a firm differentiates its products. Information about the distributors will help determine how Neptune can streamline its supply chains to reduce the excess inventory.

Other Options not Mentioned in the Case

The main options appear in the case include price reductions (40-50%), a 10 percent discount, expansion to new markets, and new brand development. Other possible options include selling the inventory to a firm with a different brand name. In this way, Neptune can make a profit and retain its brand image. Neptune can also dispose of the excess inventory to independent distributors at a reduced price. Another probable solution is to identify potential geographical markets not reached by its current product line. This will allow Neptune to introduce the new brand at higher prices and avoid losses associated with deep price cuts.

Recommendation to Hargrove

The writer’s recommendation to Hargrove is to adopt a class marketing strategy. This will allow the firm to sell the two brands in different market segments. In the short-term, the excess inventory can be sold to independent wholesalers. The writer will propose these views to Neptune’s senior management level to influence strategic decisions.

References

Burrow, J., & Bosiljevac, J. (2005). Marketing. Nashville, TN: South-Western Educational Publishing.

Case Study: Class or Mass. (1998). Web.

Joshi, R. (2005). International Marketing. New York: Oxford University Press.

Kotler, P. (2006). Marketing Management. London: Pearson.

Body Shop Company’s New Product Launch in Australia

Project background

The Body Shop International is one of the largest cosmetic franchises in the world; it operates in 61 countries, including Australia (The Body Shop, 2010, unpaged). At the given moment, this organization offers more than 600 different products such as soap, lipstick, face creams, and massage oils (The Body Shop, 2010). This company operates in a very competitive environment; among its competitors, one can single out Procter & Gamble, L’Oreal, Unilever, and Avon (Pitman, 2006, unpaged).

The key aim of this project is to provide Australian customers with a new moisturizer with a hat by selling it in the stores of the Body Shop. This product will enjoy considerable demand among customers; in part, it can be explained by the fact that Australian people are becoming more aware of the high incidence of skin cancer in this country (Cancer Council, 2011, unpaged). This project will enable the Body Shop to increase its market share and improve its corporate image. The thing is that a part of the revenues will be donated to the Cancer Council, a non-governmental organization that seeks to reduce the incidence of cancer.

Project definition

Nature of the project

In the course of this project, our team will partner with the Body Shop in order to sell moisturizers and hats as a bonus to the clients. Given current manufacturing costs, we can estimate that the price of the product will be $25. Furthermore, 8 percent of each sale ($ 2) will be donated to the Cancer Council, a not-for-profit organization that attempts to help the community overcome cancer. In turn, the Body Shop will receive three dollars of revenue from each sale. The product will be promoted by sales representatives and at the websites of the Body Shop and the Cancer Council. The customers must know that a portion of sales revenues will be donated to a not-for-profit organization; otherwise, it will be very difficult to differentiate our moisturizers among similar products.

Project aim

This project has to attain several goals. First, it is aimed at boosting sales revenues of the Body Shop and increasing its market share. Secondly, this project has to strengthen the reputation of this company as a responsible corporate player that is concerned about the challenges faced by the Australian community. In this way, the Body Shop will be able to strengthen the customers’ loyalty to their products. Finally, this project is to help a not-for-profit organization Cancer Council which strives to prevent cancer or reduce the incidence of this disease. These are the main objective that we need to achieve.

Project scope

This project will require an initial investment of $ 105,340; this sum includes the cost of advertising, production, and labor expenses. These estimations are based on the current cost of moisturizers and average labor costs. Secondly, we need to bear in mind that the Body Shop adopts a very negative attitude toward the products that were tested on animals. The official policy of this company is that the development of its products must not involve animal testing (The Body Shop, 2010, unpaged).

This is one of the key limitations or restraints of this project. Furthermore, at the initial stages of the project, the products will be marketed to the customers only at several stores of the Body Shop, although we expect that in the future, our products will available to customers throughout Australia. For this project, we have chosen only moisturizers these products are directly related to the protection from skin cancer. At this point, the donations will be given only to Cancer Council since this is a non-profit organization that requires funding.

Prerequisites and assumptions

There are several prerequisites for the successful implementation of this project. One of them is the demand for moisturizer. The customers must be convinced that this product really creates value for them. Moisturizers are manufactured by hundreds of companies, and we need to make sure that our moisturizers will stand out among others. Thus, we can argue that effective marketing strategies are indispensable for the success of this venture.

In particular, potential customers must know that they not only purchase a high-quality product but also contribute to the noble cause. The second indispensable condition is the effective functioning of the supply chain. It is necessary to make sure that our supplies of moisturizers can match the demand for this product. Overall, this project is based on several premises. The first assumption is that people will be more willing to buy a product if they know that the manufacturer does not only pursues profits but also tries to practice charity.

Another assumption is companies like the Body Shop recognize the importance of corporate social responsibility (CSR). Modern companies do not view CSR as some necessity imposed from outside but rather as the cornerstone of their success among customers all over the world (Werther & Chandler, 2010). This is why the Body Shop can agree to help us with this project. These are the main underlying assumptions.

References

Cancer Council. 2011. Skin Cancer in Australia. Web.

Cancer Council. 2011. The Official Website. Web.

Pitman S. 2006. . Web.

The Body Shop. 2010. The Official Website. Web.

Rakos, J., Dhanraj, K., Fleck, L., Harries, J., Jackson, S., Kennedy, S., 2005, The Practical guide to project management documentation, John Wiley &Sons, New Jersey.

Werther William & Chandler D. 2010. Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. London: SAGE.

Cleanser Laboratories Ltd.’s Product Launch Event

Event: Product Launch

Product: The product is a newly developed washing powder that boasts exceptional features and a highly competitive edge over similar brands, both domestic and international. The product is said to have some additional features that enhance the process of removing dirt from the clothes and the ability to retain a good scent even after long hours of wash.

Brand Name: Igma.

Company: Cleanser Laboratories. Ltd., is a firm that has been in the field for the last 10 years by producing and marketing washing and toilet soaps. Igma is a newly developed washing powder after long days of research by the research team of Cleanser Laboratories Ltd.

Date of Launch: The day of the event should be such that none of their special guests should have any other engagements. It can be ensured by contacting those whom the company would like to invite for the event and asking them about their availability. But, it is quite impossible to get everybody on a certain day and prime concern should be given to the company’s objectives in such circumstances. (Daoust 2006).

Venue: A renowned Hotel in the country, which should have a catering wing of its own, vast parking facility and enough number of executive rooms and in close proximity to an airport. (Parker 2006).

Method of Product Launch

The method selected for making things happen as the company intends is ‘Convention’. This seems to be the ideal method for the company to launch its product. This is suggested because the company is not restricted by any kind of financial constraints and it needs to attract a large number of people from different parts of the country. This is the reason why a renowned hotel is selected as the venue of the convention. Moreover, the company has a plan to turn the event into a memorable one among the audience. This is intended in the anticipation of getting wide publicity across the country because the company believes strongly in the word-of-mouth method of marketing. The company intends to conduct the convention in an interactive manner so that any queries about the company and the new product’s features can be communicated to the audience in an effective manner. This will also enable the company in the future to modify their product in line with the expectations of customers or any of their suggestions that may come forth in the convection.

Objectives of the event

The fundamental objective of product launch is closely associated with the company’s long-term goals. The introduction of a new product in the market itself is a reflection of the firm’s intention of drawing new customers who are presently using similar washing powders and making them use the new product. Already the company enjoys very good customer support and loyalty for its washing and toilet soaps and with the new washing powder, Igma, it is aiming to retain the existing customer and attract new ones. However, the following are the specific objectives behind the grand convention, through which the product is intended to be launched:

  1. To enhance the popularity of the company’s brand
  2. To retain existing and attracting new customers
  3. To interact with existing and potential customers and other audiences on queries relating to the company as well as its products
  4. To received and use the feedback from the audience to further improve the qualities of the product
  5. To use the audience as a medium of communication to talk about the company and its products
  6. To create an awareness across the industry and among the public about the company’s large customer base

Time duration

The entire process of product launch, interaction, food, and entertainment is proposed to be concluded in 3 hours. Nobody is ready to sit and show patience for more than 3 hours for a formal corporate event. (Yuan 2006).

Food and Beverages

All arrangements have been made in the hotel’s catering segment for food and beverages. The food shall be served on a buffet model to avoid wastage, save time, and give preference for everyone’s taste. Special consideration has been paid to dietary needs and plenty of choices have been provided in the menu. Alcoholic drinks shall also be served on a need-to-serve basis to make everyone happy with the event. All these matters have been discussed with the catering wing of the hotel to make it a grand and memorable success.

Target Audience

As specified in the objectives, one of the aims of the event is to use it as a means of communication through the audience. Naturally, the larger the audience, the greater will be the impact upon the marketing efforts the company deploys. The target audience should comprise of different groups from varied walks of life. The intention is to make the diverse group become aware of the product and to ensure that they will communicate themselves to a larger audience ultimately. The List of people from different fields has been prepared and it comprises celebrities including movie stars, sportspersons, business tycoons, popular politicians, social activists, successful dealers across the country, and the most important group, the public. The invitation cards to the target audience have been prepared and these are being sent to the personal/ business address of the invitees.

Communication

Apart from sending an invitation to the target audience, the information about the product launch must be disseminated to the whole world. Since the product is a consumer product, some selective tools can be used for communication. The desired tools are:

  1. Dailies
  2. Popular Television channels
  3. Notices through dealers of existing products
  4. Internet
  5. Hoardings at important places

Budget

Finance, as is generally accepted, is definitely the lifeblood of any activity. Finance is needed right from planning the event to its conclusion. The budget for the whole event is framed in consultation with the company’s Finance Manager after going through the likely expenses. Air tickets for the dignitaries, cost of gifts and mementos, and cost of media, etc, should also be taken into account. The budget should not be a fixed, but flexible one so that any possible increase in expenses can also be met out of the allocated funds. The finance matters should be dealt with by a person with a good track record of service.

Logistics Planning

The arrangement is made to ensure and check about liability or safety issues that may impact the event. It is necessary to allocate the duties of risk management to a specially trained group of people. If these factors are taken into consideration and necessary action taken, nothing will disrupt the smooth flow of the event.

Resources planning

Once the activities to be conducted are planned, the next step is to arrange human and other resources to convert those plans into action. Specify the tasks to be executed by each group/ person and explain it to each make it clear that penalty will entail for non-execution in time. The human resource skill and potential should be checked well in advance so as to avoid slow and illogical execution. All materials such as chairs, tables, and decorations should be purchased and checked in time. The media should be approached for effectively covering the event and broadcasting the same.

On-site registration

Arrangements need to be made to get the names of the persons and their representing organizations. The moment the invitees enter the room, their identity should be collected and recorded for future reference. The record maintained for this purpose can be used on similar occasions in the future.

Product Launch Technology

The event should be conducted in an ambiance with attractive light and appealing music. It should have such an impact that it will be remembered by the audience and it also needs to be the first of its kind in product launching history. The features must be explained with clarity to the audience.

Circulate feedback forms

Immediately after the product launch and its explanations, the feedback forms need to be circulated among the audience to collect as much information as possible. The design of questions should be made with the help of experts in the field. Also, the language should be impressive. Informal languages are advisable in such contexts to avoid difficulty to the audience in answering questions.

Evaluation

Evaluation of activities is meant to ensure that everything is going in line with the objectives and plans. This is tied to the aims and targets for the event and helps to measure return on investment and return on objectives. It is an ongoing process and does not end with the evaluation of one activity. As the activities continue to happen, so is the evaluation. Both negatives and positives are taken care of at the time of evaluation to make the data useful for the future. (Event Evaluation. 2008).

Control

Controlling is the process of measuring the deviations of actual performance from planned performance. It is possible by comparing the actual and planned performance. If any deviations are found, the reasons for the same shall be ascertained and remedial actions are prescribed. Controlling should not be restricted to activities alone. Rather, it must be extended to other areas such as finance. Controlling helps the event managers substantially in the future when similar events are undertaken.

Bibliography

DAOUST, Bette. (2006). You Are Invited. [online]. Best Management Articles.com. 2008. Web.

Event Evaluation. (2008). [online]. Web.

PARKER, Shaun. (2006). Perfect Venue: The Key to a Successful Event. [online]. Web.

YUAN, Cheow Yu. (2006). How to Plan a Successful Corporate Event. [online]. Web.

Delta Synthetic Fibres Company’s New Product Launch

Introduction

Delta Synthetic Fibres (DSF) is a company engaged in the production of artificial fibre, the brand name of which is Britlene. The company heavily depends upon the sale of Britlene as it accounts for 95 per cent of total sales. The company developed a new product, namely Britlon, in the year 2006, which the company says is superior to the former product. The new product has all the qualities of Britlene but is more heat-resistant capable. The new product is likely to open up new clothing uses and industrial uses. The company could solve the problems of mass production of Britlon by late 2006.

The production procedure of both Britlene and Britlon is almost similar to that of all artificial fibre products. The production involves the polymerization of an oil-based organic chemical in conditions of high pressure and heat. The raw materials for both products come from Teesside. The production of Britlene is carried out in three locations, each of which has one plant except Teesside Factory, where there are three plants. The annual production capacity of all five pants after providing for annual maintenance and shutdown is 5 million kg. All five plants operate on a 24 hours X 7 days basis.

The production method of Britlon is almost similar to that of Britlene, with the exception that a new polymerization mechanism is needed for a process prior to the extraction stage. The company has approached Alpen Engineering Company, an international chemical plant construction company, for designing a large-scale plant design for the new unit. DSF now wants the working party, one committee set up by the company, to forward a proposal as to how the new product be phased into its activities.

The likely capacity requirements for Delta Synthetic Fibres over the next six years (2007)

Capacity Requirement Planning

It is an important aspect of production management. It refers to the process of determining the production capacity needed for meeting the changing demands of customers. The central issue of capacity requirement planning is balancing the discrepancies between the production capacity and customers demand. The discrepancy may be favourable or unfavourable, but both are dangerous to the firm. If the capacity is not sufficient enough to meet the demand of customers, the company may lose its customers. On the other hand, if the demand side is lower than plant capacity, that will result in capacity underutilization. In a manufacturing firm, it is mostly associated with the production schedule. It is the act of reconciling the production schedule with plant capacity.

Capacity Requirement Plan (in Million Kg)

Potential sales Britlene Britlon Total Plant Capacity Discrepancy
2006 24.7 24.7 25 -0.3
2007 22 22 25 -3
2008 20 20 25 -5
2009 17 17 25 -8
2010 13 16 29 25 4
2011 11 27 38 25 13
2012 10 29 39 25 14

The company has Capacity requirement Discrepancy in all years. The plant capacity is for all plants are 5 million kg each, and five pants put together come to 25 million kg per annum. In the first year, where the actual information is given, the company faced a negative discrepancy of 0.3 million kg, which reveals that the company could not utilize its full capacity. The problem of underutilization of plant capacity continues to exist in the first four years, including the first year. But, it could be overcome from 2010 onwards. Even though the new product was launched in 2006, the company expected to start commercial production only in 2010. It is also evident from the plan that the introduction of Britlon has affected Britlene in demand, but together can utilize the plant capacity in full. However, from 2010 onwards, the company could not meet the demand of all customers as the demand is much greater than the plant capacity.

Locations to make the capacity changes

Plant location refers to the preference of an area and the selection of a particular site for setting up a business or factory. The cost and benefits of different alternative sites are the major issues to be considered for finalizing the plant location. It is a strategic decision that cannot be changed once taken. However, the company’s requirements and circumstances of location should be given priority. Each location has pros and cons, but the company should try to make an attempt for the optimum or ideal location. “An ideal location is one where the cost of the product is kept to a minimum, with a large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives the lowest unit cost of production and distribution. For achieving this objective, a small-scale entrepreneur can make use of location analysis for this purpose.” (Kumar, p. 93).

Location Analysis

Location Analysis is the process of analyzing the appropriateness or otherwise of various alternative plant locations so as to minimize cost and maximize the company’s profit.

  1. (Demographic Analysis: It is the study of demographic factors like age composition, per capita income, educational level, occupational structure etc.
  2. Trade Area Analysis: It is the study of the geographic area where the plant is likely to be located. The commercial viability of the area is analyzed in detail to assess the profitability of the project.
  3. Competitive Analysis: It attempts to study the factors affecting the business, such as the number of competitors, quality of substitute products, and nature of the industry.
  4. Traffic analysis: This is to ensure that how many potential customers are passing by the side of the proposed site.
  5. Site economics: In this analysis, the establishment and maintenance/operational costs of various alternative sites are evaluated so as to fix the best one.

Criteria used to select the plant location

The selection of plant location is an important production strategy. Companies must try to locate a location for the plant which can maximize profit and minimize cost. Profit maximization or cost reductions are the ultimate goals of plant location decisions. But, immediate considerations must be paid to a number of factors, such as the availability of raw material.

These common factors include:

  • Raw materials availability
  • Energy availability
  • Meteorological data
  • Market study
  • Transportation facilities
  • Water supply
  • Waste disposal
  • Labour supply
  • Taxation and legal restrictions
  • Site characteristics
  • Safety and Environmental measures
  • Community factors (Shrinivas).

Among these, raw material availability, water, energy availability etc., account for the central issues in the selection of plant location. Similarly, the availability of human power at low cost is also a factor to be taken care especially for a manufacturing firm where the majority of processes is done manually.

DSF need to consider mainly the availability of raw material and human labour. The production heavily depends upon manual processes, and as such, the company requires human resources without any disruption. Therefore, it is advisable to increase the capacity of the Teesside Plant where three of five plants are located and wherefrom raw materials are collected for all the five plants.

The main dangers facing DSF as it changes its capacity over the next five or six years

There are two ways of increasing the capacity for the production of Britlon to meet the increased needs of consumers. Either the existing plant of Britlene can be converted, or an entirely new plant can be constructed. The possibility of the two choices, however, can be discussed below:

Conversion of Existing Plant

The first thing to be noticed is the time duration required to finish the conversion process. As the new product involves a little bit different technology, the existing plant can be converted with two years time span. Another thing is the economics of change in plant capacity. When the existing plant is converted into another one, the production of old products will be slightly affected. However, from the table, it is clear that the introduction of new products has enhanced the use of plant capacity and reduction in plant maintenance costs. The Chief Executive Officer has opined that the closure of an existing site for a new plant will result in the erosion of investment made in the plant in the form of human capital and physical resources.

Construction of New Plant

If the company goes with the decision to construct a new plant, the pros and cons of the same must be analyzed in detail. In the words of the Chief Executive Officer, the construction of a new plant will result in complexities of multiple operations, and that will contribute to complete troubles and chaos.

Therefore, it is advisable for the company to expand one of the three sites in Teesside for meeting the requirements of a new product.

Works Cited

  1. Kumar, Abha. Lesson 7: Plant Location and Layout. 2008.
  2. Shrinivas, Prashantkumar Kudli. Selection of Plant Location for Establishing a Chemical Industry. Go Articles. 2008.

Sun Block Cream: Product Launch

Introduction

After product development and having done a thorough scrutiny of the target market, the next step is to develop a product launch plan. This plan will address the necessary steps that will help increase production, develop marketing strategies, develop programs for training of sales personnel, and preparation of how to set up or support the product. A well-prepared product launch plan results in faster and more effective marketing and coordination of activities (Lodato, 2008). Having a product launch plan is very crucial for the success of every business. The product launch plan of Sun Block cream for both local and international markets (United States and Kenya, Africa) will have the following approach.

Understanding the target market

Under review of the product launch process; there are certain things that should be put into consideration such as identification of needed activities, system requirement, and organizational responsibilities. A clear understanding of the target market is necessary in any product launch plan. This is because products launched on markets where most of the audience are not interested results in terrible failures (Lodato, 2008). One has to have a thorough understanding of his audience. From the previous research on the target market (United States and Kenya) it has shown that the targeted audience (both male and female) are interested on the new sun block cream. From the recent past, people especially Kenyan citizen are becoming more concerned about their beauty and they are almost ready to test every product that comes into the market. Demand is still high in both markets and therefore the producers of this product should put more emphases on its quality so as to fetch a bigger market share when it is finally launched. The sun block for male and female need to be tested and certified before it is launched in the market. In Kenya it has to go through Kenya Bureau of Standards (KEBS) before it is allowed into the market. Manuals on how to use the product have to be prepared and attached on the product. A design of sales and distribution should be prepared as well as performing a market testing.

Process improvement

After reviewing the product launch process, the next step is to develop a process improvement. This involves making improvement on the marketing strategies, organization responsibilities, and design of the product. In order to achieve an effective improvement process, the best way to go about this is to market and pre-sell the sun block products in the targeted markets before the actual date of launching (Lodato, 2008). Different methods of advertising may be used to drive the message home. The aim of this pre-selling is to help the product developers get some feedback from the audience of which that they can be able to make the necessary adjustments before launching the product.

Integrate organization

Once the process has been reviewed and necessary improvements done, the next step of the product launch is to redesign the organization integration. This integration is done among the product launch team members who are responsible for its development. Responsibilities are distributed among the team members, and necessary changes made which then helps to facilitate the launch activities. Trainings are offered to the team members in order to equip them with the necessary skills required in this job.

Design the product launch approach

The team responsible for carrying out the launch should come up with attractive gifts alongside the product; they can offer free samples to the first group of audience who actually purchase the product. Sales promotion have been found to do well especially in new businesses and such a promotion can be for every two packets of sun block purchased, the buyer gets an extra one. All this should be included in the budget and cost should be kept as low as possible. Another strategy that has been found to make product launch process successful is the offer of cheap prices after a product has been launched. The Sun Block Cream Company should lower the prices of these products during and after the product launch especially in the foreign market-Kenya. This will help attract a bigger section of the market. However, these prices should be increased with time to their normal prices (Lodato, 2008).

Internal analysis

Before the products are launched, there is need to carry out a SWOT analysis for the company in the two target markets (United States and Kenya). SWOT is an acronym for strengths, weakness, opportunities and threats. Locally (in U.S), the company has strength in that it is already established and has a good reputation. This makes it easy for the launching of sun block cream in the market. The beauty industry is already developed and thus the company may face stiff competition from the rival industries against its product. It may become even harder to convince clients to try the sun block products because they are used to other product. Despite the threat of competition there is still an opportunity that U.S being a developed country the company has opportunities for expansion and growth.

In Kenya, the government regulations for both local and foreign markets are supple and aim to protect the business owners. The import regulations have less legal requirement making it easy for foreigners to venture into the market. Kenya has less political interference, and business policies are friendly to both local and foreign investors. All this favors the Sun Block Cream Company in its entry to the Kenyan market. The company will be allowed to repatriate some of its profit to its local country although such profits are highly taxed. Kenya has trade agreement policies with the United States which will help in protecting the company’s products against fraud, and malpractices in the Kenyan market. One of the weaknesses of the company in Kenyan market is that it does not have a subsidiary firm in Kenya; this will make it hard to market the products. The solution to this is for the company to form a subsidiary firm with the Export Processing Zones (EPZs) in Kenya. Kenyan market is still growing especially the beauty industry; more people have migrated to the urban centers leading to an increase in their purchasing power. The company will have an opportunity of getting sun block cream to the right audience in the urban centers. The beauty industry in Kenya is very young and the varieties of the products are not many. This will act as an advantage to the company for the Sun Block products.

Most of the manufactures of beauty products in Kenya are foreigners. This poses a major threat of competition to the company and in order to fight with this competition, the company has to liaise with many consultants in the country who will serve as their sales representative.

After carrying out the necessary analysis for the product launch, the product launch team is left with the responsibility of designing the plan. The plan should include the quantities of the product to be manufactured, channels of distribution to be used, the sale representatives, method of advertisement to be adopted, projected budget among others. The plan should be cost effective and cost should be kept as low as possible. After successfully launching the product, the team should monitor closely the progress of the sun block cream, get feedback from the users and decide when to raise or lower the prices.

Reference

Lodato, M. W. (2008). Management of New Product Launches and Other Marketing Projects. New York: AuthorHouse.

Kudler Fine Foods Firm’ New Product Launch Plan

Competition

The major competitors to Kudler Foods in France and Germany are Filterfresh Coffee Service and Flavia. A subsidiary of Van Houtte Inc. Filterfresh Coffee Service was the initial pioneer of a one-cup brewing system in the coffee industry. It introduced the technology in 1980. Despite being the pioneers, their organizational and operational structures provide adequate room for improvement (Anderson, 2005). The hopper they use makes it a necessity to clean and re-load coffee beans. Kudler intends to overcome this shortcoming by introducing K-cup, which is more convenient, better, and hence preferred by the clients within the target market. Flavia however more of a threat to Kudler, as its approach is almost similar to Kudler’s. Kudler intends to counter this by offering an increased focus on customer satisfaction. Though unconfirmed, the impending entry of Procter and gamble into the two coffee markets will raise competition considering the company’s popularity (Sherry, 2002). Kudler intends to deal with this by introducing a customer loyalty program whereby customers who consistently use our products receive appropriate rewards, for instance, a free month supply. Kudler will offer better pricing as compared to Procter and Gamble. Filterfresh and Flavia price their Gourmet coffee models at $52 and $53 respectively (Anderson, 2005). Based on existing markets data from other markets, Proctor and Gamble are expected to offer a price range of between $53 and $54. Kudler intends to set a lower market entry price of $50 and later re-adjust the price (David, 2004). Kudler will also use mass retail centers and grocery outlets as selling points to enhance its ability to interact with clients and understand their needs. The major challenge is convincing clients that our Gourmet coffee model comes with better quality as compared to the other brands.

Marketing

Marketing Objectives

Marketing will aim to position Kudler as a strong force in the gourmet coffee market in Germany and France. Additionally, it will focus on client growth and hence the consolidation of a considerable portion of the market. More specifically, Kudler Foods intends to consolidate a market share of not less than 5% over a period of one year.

Marketing strategy

The market gourmet coffee market in Germany and France is segmented into three broad categories (McCarthy & William, 2005). Previous research by Anderson (2005) amongst gourmet coffee consumers revealed that demonstration through the internet and other public media increased purchase possibilities of the product by 75 – 82%. Advertisement and demonstration campaigns will be used in the marketing of the product. Correspondingly, advertisement/demonstration campaigns will be based on these three categories namely: the aged, the illiterate, and the literate. Kudler will also use pricing as a marketing strategy. Initially, the market price will be set lower than that of its competitors to attract customers. Having initially conducted a study on Gourmet coffee consumer preference, the brand produced will be easy to clean up in addition to having consistent taste and variety. These elements will attract customers to use the product. The target market, however, remains the same market that competitors are targeting or have already gripped. In general, the marketing strategy will involve initial low pricing accompanied with high quality, media campaigns, and demonstrations aimed at sensitizing the public on the good qualities of Kudler’s Gourmet coffee.

References

Anderson, E.T. (2005). Keurig At Home: Managing a New Product Launch. Harvard Business School Review, 28(2), 23.

David, K. (2004). “At What Cost Convenience?” Testing the New Single-Serve Coffee Systems.” Journal of Marketing and Business Planning, 12(3), 45- 47.

McCarthy, J. E., & William, D. (2005). Perrault Jr. Basic Marketing: A Global-Managerial Approach (15th Ed.). Boston: McGraw-Hill Irwin, 234 – 249.

Sherry, C. (2002). “Coffee shops look to fill caffeine cravings.” The Post-Crescent. Web.