We will be working chiefly on introducing the new product brands. We understand the core features expected of our target market which includes tastes and texture of the products; coupled with emotional benefits they derive (relaxant, a form of indulgence). Our decision to build our brands to augmented features in order to meet and exceed our customers’ expectations will include creating varieties such as instant, add-milk, diet/ light, bedtime versions. Labelling and packaging of our products should inform our customers and appeal to them as well, based on their various perceptions. Interestingly, a new idea of green labelling could be introduced.
Price: For our pricing strategy for the new product, we consider premier’s pricing strategies, noting them as price followers. RLL are price leaders in leading brands and our target market show considerable flow of income (4,999). In order to keep the image and standard of our brands, considering, also, our approach to spending more on advertising, a rapid skimming pricing strategy will be adopted, to create high levels of awareness and returns on investment.
Decisions on promoting our products are influenced by target market, which comprises men, and mostly of women coupled with their attitude on trial of our brands. Since this is a low involvement situation, passive reception of information will be involved which will include sales promotions (premiums and gifts, coupons, packaging inserts); exhibits and trade shows, personal selling (sales samples), direct marketing (catalogs, telemarketing, company magazines, e-marketing). Our budget to invest on advertising has been approved by our financial directors.
Place: We plan to reach our customers, communicating with them as directly as possible, considering, also, the costs of distribution. Our decision to operate with Supplier-Retailer-Consumer channel will be most preferable for now. Other modes of distribution will be through direct internet sales. Arrangement concerning processing customer orders, warehouse arrangements, inventory levels, transportation modes will all be checked.
Inflation rates and overall price level in the industry will be checked to see what changes to make in pricing products. We will observe attainability of our objectives in a period of economic recovery and future increase in VAT. Also with large competitors in the same market structures and growing suppliers, noting also brands like Cadbury, highlight and options with high price levels in the market. We check competitors’ reaction to price levels, sales and distribution.
Then R&D team will execute marketing research on a monthly basis to determine if our products are meeting customers’ needs. Feedbacks and responses from our customers, on trial of free samples of our proposed new developments should be used to conduct check on sales of new products by the sales department Products will be tested on a small scale using limited distribution to test the success of our new product range before large amounts of cash is spent. Our advertising strategy will be monitored and adjusted based on the volume of sales, and reaction to our new product in comparism to existing competitive brands.
So far, the new marketing plan, prepared based on the information and reports provided by our directors and their team, has been prepared showing suitable strategies to build and launch our new product into the market. With available resources and a strong financial position, this new idea proves to be a possibility for River Links Ltd.
Coutler M. (2002), Strategic Management in Action, 2nd Edition, New Jersey: Prentice-hall.
Jobber D. (2010), Principles and Practice of Marketing, 6th Edition, New York: McGraw hill.
URL:http://www.rapidbi.co.uk [Assessed on 27/12/10].