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P6 Develop a coherent marketing mix for a new product or service
Transcript of P6 Develop a coherent marketing mix for a new product or service
Price is very significant aspect of the marketing mix as this affects whether consumer will purchase your product or not.
Our pricing strategy
I have selected to utilize the skimming pricing strategy for our new product, this is done to maximize the profits as we have entered the market with a product before the competitors enter the market, if however the competitors enter the market with a product similarly or same then our product will be unsuccessful at making a profit which is the core value.
The pricing I have elected for the organic granola bars is £8.79 for 18 bars of 2 bar packs Therefore meaning that 8 granola bars will be in one box and the second pack will entail the other 8 granola bars. If the situation comes to that our product demand decreases we will decline the pricing to £4.40
Factors that influenced the pricing strategy
There are numerous diverse factors that were taken notice of for the product pricing and they are the following;
The price that is believed to our target audience will be delightful and willing to pay
Place (distribution) is how businesses gets its products to the consumers through what location should the product be at and the distribution of it.
Organic granola bars will be sold at Grocery stores or known as supermarkets entailing the following; Waitrose, Sainbury's, Morrison's and Marks and Spencer's. The product will also be available at convenient stores for example Tesco Metro, Tesco Express, Sainbury's Local, and the Co-Operative.
The objective of distribution is to make products available in the correct place at the correct time and in the correct amount of quantities. The type of distribution we have selected is selective distribution for our product. Small quantity of retail outlets have been chosen to distribute the product, throughout United Kingdom. This will entail Supermarkets, convenient stores and the product will further be available for online shopping.
E-commerce is defined as commercial transaction conducted electronically on the internet. Organic granola bars will be sold online and further in stores. Through E-commerce we will be able to link promotional offers Thus maintaining high sales figures.
organic granola bars
Competitors Quaker Oats Chewy Granola Bars and Nature Valley Crunchy
Quaker Oats Chewy Granola Bars
Quaker Oats has presently a selection of granola bars that have 8g of whole grains that contain no high fructose corn syrup. The granola bars is available in boxes of 8 with 18 bars. The average pricing for the granola bars are £3.63. On observation it can be seen that there is a clear gap between the quality and pricing as compared with branded granola bars and supermarket own brands more specifically organic granola bars.
Nature Valley Sweet & Nutty
This product contains crunchy nuts and toasted oats for a delightful sweet and nutty flavor which comes in three variations and they are the following; peanut, almond, and chocolate. They are further dipped into nutty flavor coating. The bars are available in boxes of three with 5 bars entailed. The average pricing for the granola bars are £2.39.
The average weight of a granola bar is 55g, this information will aid the product development. The product is granola bars is made from organic barley, whole grains and oats.
In conclusion the product named Organic Granola Bars that gives you one of your five a day as well as being high in fiber. The target audience is 16+ for young adults and people that have a intense working life style or student style. We wanted the product to be easily accessible to be produced at high standard and entail the quality that will be fruitful to our targeted consumers.
The organic granola bars will be sold at the given price of £8.79 for the majority of the year however during the low sale periods that the organic granola bars will have their price lessened. promotion strategy for example purchase one get one free will be utilized. At the beginning of the year we will give out free samples with Waitrose online shopping and in store shopping orders. This is done to encourage and enthuse the consumers into purchasing more of the different five variations of the product that we have offered.
Promotion for our product will push its ethic values lets take for example we will promote how all of the granola bars utilize organic ingredients.
Promoting the brand
Promoting the brand is significant as promoting the food product. Commercial will play an important role in selling the product whilst it will promote the brand of Nestle's. This will be done by utilizing television commercial, radio, pamphlets, internet and store promotions. By doing this the brand of Nestle's and it's new product entering a new market will be recognized because of variations in the promotion strategy.
Scenario and task:
The Nestle company has decided to commission you to develop a coherent marketing mix for their brand new breakfast cereal product aimed at children under the age of 16 in the UK to compete with cereal products from Kellogg’s and Quaker. They would like you to present your proposed marketing mix to them in a power-point presentation.
Here is an visual representation of what the granola bar will appear like without its packaging. It has the same base which is noted in the ingredients table and the five variations to appeal to what the target audience needs and wants.
Here is the Nutrition facts about a granola bar which will the base of the five variations offered to the consumers.