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Marketing Mix Proposals for a Chocolate Bar

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Introduction

Task 5: Marketing mix Proposals Price It is important to decide on the correct pricing strategy as it is related to where in the market the product is positioned, it will also affect the demand for the product and it can also differentiate it from competition. There are a number of factors that will affect the price of a product, these will be: Perceived Quality of the product Features of product Amount of disposable income consumers have Nature of the competition in the market Availability of product My product will be relatively price elastic as there is a lot of similar competition in the market, I will try to reduce this elasticity by differentiating my product. Increasing brand loyalty also helps to reduce price elasticity, but my product?s brand name already has a loyal customer base. The different pricing strategies that are available are: Skimming ? Set a high price to sell to customers that are less price sensitive. The objective of Skimming is to achieve profit margin maximisation with a low volume of sales. Skimming is not appropriate for my product, as the demand for my product will be elastic so I cannot charge a high price, as the demand would fall. Skimming is generally used on new products that have a low amount of competition. Penetration Pricing ? This means going into the market with a low price to maximise then quantity of the product being sold, then raise the price when the product has been established. ...read more.

Middle

The advantage of this is that it reaches a wide audience, although the disadvantage is that it can cost a lot of money, especially when advertising on the television. As brand name of my product is well established, the company has enough capital to advertise on television, so this would be a good promotional technique for my product. Direct Mail � This means posting promotional material through a customers letter box. This form of promotion often does not generate enough sales to justify its use. Telephone selling, or �cold calling� can be a slightly cheaper alternative to this. I will not be using this type of promotion for my product as the disadvantages outweigh the advantages (it does not generate enough sales) Samples Test Marketing Sponsorship Endorsements � This means getting a sports star or television personality to promote a product for you. Recent examples include David Beckham promoting Police sunglasses and Britney Spears & Beyonce Knowles promoting Pepsi. Sales promotions � This is a short-term method of boosting sales. Techniques involve; buy one get one free, discounts, free products. In my questionnaire (primary research) I asked the question �Which advertisements persuade you to buy a product most� most people said the television, I expected this outcome as most people have a television at home and they watch it more frequently than they go to the cinema or read a magazine.    In my secondary research from the Cadbury�s website it showed that most people buy confectionary as a snack food, I am therefore aiming my product at this market, the promotional techniques I use therefore have to be suitable for this market. ...read more.

Conclusion

   To distribute my product I will use an indirect method of selling �Manufacturer -> Wholesaler - > Retailer - > Customer� The advantage of this is that the wholesaler takes on many of the responsibilities, such as making many journeys to retailers, where as the manufacturer only had to make one journey to the wholesaler. An intermediary can also cut down on other costs for the manufacturer such as paperwork for invoicing and administration. I have not used other channels of distribution such as �Manufacturer -> agent -> wholesaler->retailer-> customer� as an agent usually takes a cut of the profits to promote the product, as my brand is well established and I have already proved that people will buy my product (Primary research � questionnaire), this channel of distribution is more costly and time consuming. I have not chosen the channel of distribution �Manufacturer->Customer� as a retailer has more experience and expertise in selling/promoting a product to a customer. Selling through a retailer will also help to save money training and employing sales staff, as the retailer will do most of the interacting with the customer. Product features that may be used to exploit target market Small snickers fingers will appeal mainly to the female and teenage market mostly as teenagers are getting more health conscious due to the impact of the media. Integration of the 4 P�s None of the four P�s can work alone together, to achieve a successful marketing mix, the four P�s have to work together. The diagram below illustrates this: ...read more.

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