Biscuit Cup Marketing Plan
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Introduction of innovative and new products to the market is a common aspect that requires a superior marketing plan for the product to be appreciated by consumers. The aim of this report is to present a marketing plan, and show how a marketer can market Biscuit Cup. Biscuit Cup is a type of cup that can hold tea or any beverage, and at the same time, has space near the bottom of the cup where biscuits are inserted. This means that the bottom has two parts, one, which holds the tea while the other will hold the biscuits, and retrieving the biscuits will be an easier task.
The goals of the marketing plan are:
Market share should account to 20% after the end of the marketing plan
Revenue that is collected should be 10%
The amount of sales should be 70% relative to production
The marketing strategies that will be used to ensure customers appreciate and embrace the product include (Cohen 321):
Increase amounts of monies on promotion and advertisements
Ensure there is appropriate public relations program in place
Expand and improve on the distribution channels ensuring that most of the market is accessed.
The number of outlets should be increased to ensure that customers could easily purchase the product.
Segmenting a market is splitting an entire market into sub-set or groups of consumers that demand similar products, and it is usually based on functionality and price of the product. Some of the criteria that a market segment should fulfil include; it is supposed to be homogeneous, distinct from other segments, can easily be reached by a marketing plan, and responds easily to same/similar market stimulus (Wood 144). Market segmentation brings into consideration demographics, geographical and psychographic. The market segmentation that I will utilised is geographic and demographics, since demographics will bring into consideration income and job specification, while geographic are locality of outlet stores and nature of market in that region (Luther 91).
Targeting allows choosing specific segment, and maximising organisational resources on it. When the product is introduced into the market, two-target market will be championed, which are business establishments and private homes (Hiebing & Cooper 223). Business establishments usually hold frequent meetings and sometimes soft drinks such as coffee or tea are served, and complemented by cookies e.g. biscuits. Usually, the biscuits are on a side plate, which means that the Biscuit Cup would easily address this problem of having side plates. The second target market is private homes in which a person moves around the house. Carrying two components e.g. a cup and a biscuit plate may be tedious, which means that the Biscuit Cup functionality can eliminate these inconveniences (Wood 144).
Sales are important requirements that support the way businesses operates and usually determines the way organisations operate, and thus it is paramount to formulate and implement a sale promotional plan. This means that a promotion plan ensures that the market is depicted and modified to ensure that targeted market purchasing behaviours and patterns balances with the requirements of the organisation. Cohen states that promotional strategy helps to draw new customers and at the same time ensures that older consumers are retained. Two promotional strategies can be utilised, which are ‘push’ and ‘pull’ (Cohen 19).
‘Push’ strategy is ensuring that distributors and retailers sell the product directly to the consumer in that the producer promotes the product to the wholesaler; the wholesaler then promotes the product to the retail hence forming a chain (Cohen 19). On the other hand, pull promotional strategy usually concentrates on the consumer in that the consumer ‘pulls’ the product e.g. request the product from the seller and the seller would be forced to acquire the product. Conversely, since the two approaches are different, is important that the two methods are combined to ensure that promotional strategy has a greater impact.
Pricing is an important component that defines a product, and it is the hardest decision that a marketer has to make. The price is the only component that gives revenue to an organisation within the marketing mix. This means that price can be fixed either manually or automatically and can be based on numerous factors that may include fixed amount, quantity break, promotion or sales campaign, invoice date and the prevailing market cost (Hiebing & Cooper 213). Numerous methods exist that can be used to fix the price of a product, and they may include penetration and cot-plus pricing strategies.
Cost-plus strategy is a common formula that is used by manufacturing companies to allow the calculation of price product when minimal information is available (Luther 99). The normal process involves calculating the cost of the product and then a small amount of profit is included. This approach is also applicable in those situations that require the inclusion of direct costs, indirect costs and fixed cost. Thus, in fixing the price of the product, fixed costs, direct, transport costs and other costs are included in determining the price of the product. On the other hand, penetration strategy will be used to complement the cost-plus ensuring that the most appropriate price is placed on the product (Cohen 79). Penetration strategy is a technique that places the entry price of a product lower relative to other competitors in the market. Moreover, this strategy is applicable to new products and hence the price should be comfortable for consumers easily purchase it. Penetration strategy is important since it is easy to increase on market share and increases on sales.
This refers to the method in which a firm may distribute the product that they are offering to the consumers. Generally, it means that the product should be distributed at the right place and at the right time. Efficient and effective distribution is inherent in any business organisation so that it can easily meet the marketing objectives (Westwood 134). For example, if the organisation underestimates consumer’s demand, the resulting effect may affect profitability. Biscuit Cup is a new product and thus should be protected against any shortcomings or complications that are related with underestimation. To fulfil this requirement, it is inherent to understand the channel structure strategy and front office strategy (Cohen 78). Channel structure strategy is the number of intermediaries that participates in ensuring that the Biscuit Cup reaches the customers. Two distribution strategies, which are indirect and direct distribution, will be used in ensuring the product reaches the consumers.
Direct distribution is when an organisation sells the product directly to a consumer while indirect distribution is when a product passes through numerous intermediaries before it reaches the customer. This means that the distribution method that will be utilised will be based on location of inventories e.g. adequate customer service, sorting processes, and still ensuring that the entire process is efficient (Hiebing & Cooper 213). Thus, in the case of Biscuit Cup, both strategies will be used to sell the product since it is also based on the principle of penetration strategy and hence the entire distribution strategy should be efficient and effective. A combination of these two strategies ensures that the benefits of promotional strategies and accessibility are championed. Additionally, both strategies will employ its own distribution strategy to ensure that the organisation is profitable (Wood 144).
The second distribution approach that will be used is establishing sale offices. Front offices will come with numerous benefits, which will ensure that the brand is sustainable and viable. The sales office will receive the product directly from the organisation, and then later distributes to retailers and wholesalers while at the same time sells the product directly to the consumers (Hiebing & Cooper 213). Moreover, direct distribution could ensure that the consumers are persuaded to purchase a given product, questions may be answered easily by the staff, and features of the product can better be understand since how the Biscuit Cup will be used could be illustrated. In addition, this strategy would ensure word of mouth is used to market the product (Westwood 133).
The product strategy defines the product and some components that make up the final product. The Biscuit Cup is a new and unique cup in the market compared to other cups. The core product that the marketing will market is the Biscuit Cup while the augmented product is the packaging, features and other factors or components that make the cup to be known (Luther 89). Packaging is an important consideration since it will allow the product to be known and be appreciated by the user. Conversely, augmented product is services and benefits that are associated with the product or while purchasing the product. For example, augmented product can be illustrated by testing its usefulness in shopping areas and malls, and generally ensuring that the capabilities of the Biscuit Cup are known (Cohen 67). The augmented product and promotional strategy will complement each other ensuring a wider market is accessed. Moreover, the product production is associated with branding, since branding will improve on competitive advantage for the product in the future.