Marketing strategies
1) Reposition our brand Haribos in the mass-market sector by cutting its price; launch new up market, high price brands in each of the following next years making it appeal to teens.
2) Relaunch Haribos with better packaging which appeals to teens. Better advertisement that gets to more people. Offer free samples to those who are aged between 13 to18.
3) I will make my product slightly cheaper than my competitive. So this will make Haribos will seem more profitable so it will appeal to more consumers who love sweets as it is a good brand, fair priced sweet product also I will not make my price of Haribos too low so I wont make a profit or to high as it will seem very costly to the consumers so they will not purchase it. I will price my product at a fair price so I and the consumer will both benefit as I will make a profit and they will buy a product which will seem profitable.
4) I will enhance my corporate image by getting sponsored by Hollyoaks which is a very popular teen show which has been running for many years. By getting sponsored by Hollyoaks hopefully I will win over most of the viewers to buy my product. Also my product will be put on billboards around the country. So hopefully 15% will have tasted my product, 50% will have heard of my product.
Explaining what market segmentation is:
Market segmentation is the process of dividing up a market into some unique set of characteristics according to different consumer purchasing needs and wants. To help segment consumer market you will need to use various methods such as demographic, geographic, behaviouristic or psychographic.
Chosen a relevant geographical segment:-
I have chosen to sell my product in Britain. I will be starting off in the capital city of England which is London as most people have an average or above household income, which will make them want it as it is not expensive .I will start off in large supermarkets where the families generally go to shop.
Chosen a relevant demographic segment:-
The people who will buy my product will be mainly teens who will be the ages of 13-18years but it could also appeal to adults but this product is mainly aimed at teens to get the proportion of consumers aged 13-18 higher as there are no sweet products which are specifically aimed at teens. My product will appeal to both genders as it is sweets which boys and girls both like.
Chosen a relevant physiographic segment:-
The buyer of this product would probably have an average lifestyle from middle class society. It is for people who like buying top brands such as Haribos as it is a well recognized brand which has been ongoing for many years and is mainly acknowledged by all ages. My product is for someone who likes sweets or Haribos. It appeals to Muslims and as it has no gelatine which is not allowed under religious circumstances also to vegetarians as they don’t believe in eating meat.
What I have chosen niche or mass marketing:-
For my product which is Haribos does not appeal to the whole market which everyone should be a consumer to the product it only appeals to specific type of customers such as teens who like sweets. I have chosen niche marketing as it focuses on a small proportion of a market sector as my market is focussing on sweet market for mainly kids, I am not focussing on a mass market due to it attempts to sell to a wide range of market which appeals to mainly everyone. Haribos will appeal to both girls and boys as both genders like sweet as it will double the sales which will achieve handsome profits. I have adopted a niche marketing strategy so I must make profits from a relatively small sales value. So my Haribos product is highly differentiated and highly valued by the niche it is aimed at. By producing sweets that tap into unmet needs, Haribos has a better chance of tempting customers from my competitors. Niche market products can be highly profitable in their own rights. In niche marketing the consumers will be looking for something different and unique. So this means buyers are less likely to be price sensitive than consumers of mass market. My marketing tactic is higher prices and low volume, high margin operator.
3.2
Identifying purpose of using market research:-
Market research is conducting primary and secondary research to find out peoples wants and needs of a certain product:
Primary (Field) research gives you original data directly about the product and market. Secondary (Desk) information gives you information that already exists and has been collected by someone else for another purpose.
To give the business a more clear perspective knowing the wants and needs of the costumer. Primary and secondary research will give a better knowledge of the costumer wants and needs as it finds about there thoughts and feelings on the product you are going to launch such as what appeals to them and what would persuade them to buy the product also you can find out if the colours, packaging, taste, size and price will effect the likeness of the product.
Trying to make sure the product does not fail. To help you product be successful research is critical. You need to collect up to date information by conducting primary research asking relevant questions so you know what people want now. By getting feedback about the product so you may be able to improve it. Also you will get a rough idea if the consumers like your product. This will give you a better understanding of the product by the feedback you receive by understanding what people and don’t ,making sure it has a unique quality for people wanting to buy it. The research should help your product on the way to success.
Hoping the product will be successful for future trends. To see what other products people would like to buy to do with you brand i.e. the Haribos brand is only know for selling sweets so it only produces new products to do with sweets. It can do all different types of sweets but it won’t able to do crisp as it is only a sweet brand which is limited. Also what other features people will like with your product so you could upgrade or how it can be developed to see what people want in the future.
Identifying my target market:-
Parents want their children to enjoy what they eat without having to much sugar which has been proven to makes kids hyperactive, this will the parents life harder trying to calm there children down. My product is a product that could help those parents as it has no sugar. The Haribos sugar free sweets which are packed in long tubes should generally appeal to 13-18 years of age as it is a product with no fat which is useful as the teenagers like looking good, caring about their image as teenagers feel a pressure to look good. It will appeal to teens as my product will be colourful and attractive so it will grab the attentions of teens as it will stand from all the other sweets. My Haribos will come in different shapes and flavours. I think my product will profitable at this time especially as everyone is trying to make their kids life’s healthy as there have been many concern in the UK over children’s health problems as kids now days have to much junk food with contains a lot of fatty acids. My product has no fat and calories or sugar. My product would be perfect as the government are trying to kids eating healthier as there has been a weight concern for the children in the UK this is the product children as they stay healthier and enjoy the sweets. This product will especially credit Muslims and vegetarian as it has no gelatine but most other sweets contain gelatine such as polos, soft mints, marshmallows etc.
Identifying size and dynamic of market:-
I will sell in the capital city of England and UK which is London as it is the most populous city in the European Union, with over 7 million residents. London is the world's ninth-largest city. Today, London is a growing city with a of more than seven million. .It has an estimate of 870000 people living there aged between 10-19 years of age . Hopefully 2% of them people will buy it over the next 2 years. . People have come from all parts of the world to live here. They all have different cultural backgrounds; there are a lot of Muslims living in London. My product will be a good seller with Muslims and vegetarians as it has no gelatine which will mainly be kids so I got some facts to show that most Muslims are children under the age of sixteen. “Muslims have the youngest age profile of all the religious groups in Great Britain. About a third of Muslims (34 per cent) were under 16 years of age in 2001” .
External sources
It has been proven that and benzoate preservative can influence and artificial colourings can influence their hyperactive behaviour which can have a "deleterious effects" which the parents would like to avoid but still letting there children enjoy what they eat as my Haribos dose not have any of those things but is still a product which appeals to teens.
Identifying Competitors
My 3 main competitors are Rowntrees, bassets, Maynards.
http://en.wikipedia.org/wiki/Rowntree%27s_Fruit_Pastilles
Rowntrees fruit pastels as they have similar packaging and type of sweet
“Rowntrees are Rowntree's Fruit Pastilles are small round sweets measuring about 1.5 cm/0.6 in in diameter; they have a jelly-like consistency, almost like huge Jelly Tots. Fruit Pastilles are covered in sugar. Ice-lolly versions were originally made in , but are now made in Crossgates, North Yorkshire by after it bought 's ice cream division in 2001. Rowntree's Fruit Pastilles contain fruit juice and no artificial colours or flavours The 48g/1.7 oz packet contains about 180 calories, which is about average for sweets of this nature”
This shows what type of sweet is a Rowntrees fruit pastille.
“Tubes of Fruit Pastilles are wrapped in foil-backed plastic with a paper wrapper over the top. The paper wrapper is green in colour with "Fruit Pastilles" written along the front in large lettering, along the bottom of the lettering there are pictures of different types of fruit all relating to the flavours within the packet. Fruit Pastilles come in a small tube of about 48g/1.7 oz, and bigger bags of about 180g/6.3 oz, both of which are widely available. They are available in tubes, sharing bags, multipacks and cartons. Over 40 million tubes of Pastilles were consumed in 2006 “.
This shows the packaging of my Haribos used and the type of packaging that appeals Rowntrees consumers. I will have to make my packaging more attractive than Rowntrees. I will see how they have done there packaging to decide what I am going to do.
My 2nd competitor is Maynards.
“Maynards Wine Gums, with their unique and distinctive flavours, were introduced in 1896 and have become a staple part of the UK confectionery market where they are today's leading fruit sweet. The success of Maynards Wine Gums was built upon in 2001 with the launch of Maynards Wine Pastilles which have extended the range and helped the brand hit the £40m mark”
This helps me to think of how to extend the range of Haribos so more consumers purchase it.
“As the leading fruit sweet, Maynards Wine Gums are almost totally distributed in the UK. Overseas”
“The strength of Maynard Wine Gums led to the introduction of Wine Pastilles in 2001. In addition to these permanent lines we have also had a number of special lines including Reds & Blacks and Quenchers - cocktail flavoured wine gums”
Maynards are being in uk and have a lot of special lines to change various flavours to meet the different needs of different taste
Bassett’s
“Boasting the oldest heritage of our sugar confectionery brands, Bassett's was founded by George Bassett in 1842. One of its most famous sweets, Liquorice Allsorts, was literally discovered by accident in 1899 when a salesman knocked over his tray of samples. Today Liquorice Allsorts have more than a 70 per cent share of their market, and are the number one sweet brand in local newsagents”.
This shows that Bassett’s is my main competitor has it has a 70% share of their market and it shows they are often bought n newsagents. it is a sweet which has been around for many years.
I have carried out and explained appropriate market research which will include Questionnaires, Observations, Focus Groups, Consumer Panels and Trade Audits.
Questionnaire for Haribos
I will ask 50 people to fill in my questionnaire who are aged between 13-18 years of age to see what they like or want.
Q1. Do you like Haribos? Yes/no (if no please state why)
Q2. Are you Male or Female? (Tick which applies to you)
Male Female
Q3. What age group are you in? (Tick which applies to you)
13-14 15-16 17-18
Q4. Which gums / jelly product is your favourite?
Other please state
Q5. What is most important to you when choosing sweets? (Circle which applies to you)
Q6. Where do you most buy your sweets from? (Circle which applies to you)
Q7. How often do you buy Haribos? (Circle which applies to you)
Q8. Which of these are your favourite Haribos packs? (Circle which applies to you)
Q9. Would you prefer Haribos without gelatine?
Yes / No
Q10. Would fat free Haribos appeal to you more? (Circle which applies to you)
Q11.Would you like the packaging for Haribos to be recycled?
Yes / No
Q12. How much would be willing to pay for a brand new Haribo pack with it having no artificial colouring, fat free, sugar free, no gelatine? (Circle which applies to you)
Q13.How would you like the new improved Haribos to be packed?
Q14. Could you please suggest to us how would you improve Haribos?
Results
Write what the graphs shows for each question
Focus group
I asked 3 teenagers of what they thought of my improved haribos sweets. Teenager 1 aged 13
Teenager 2 aged 15
Teenager 3 aged 18
What is you favourite sweet brand?
Teenager 1 said I like Haribos as you can get them in various flavours also they have a lot of different shape sweets which make it more fun to chose, also most Haribos have a lot of different shapes and flavours in one packet such as the fantasy mix which is my favourite.
Teenager 3 said I like Rowntrees as fruit pastels are my favourite sweet. Also I like the fact that Rowntrees have produced a range of products for different
And carry on asking more questions with all the teenagers answering the questions
Consumer panels
If my product was produced I would test it on 50 people aged between 13-18, 25 girls, and 25 boys to help make it fair. It will help me to see if they take a liking to my product also it will give me suggestions of where to improve it if needed. These questions are designed to help me see what people think of each thing, so I have designed questions on various topics to see what people think on what bits. So I have done it in section to see where I can improve:-
- What do you think of the packaging?
- Does the product attract you/ stand out from the others?
- What do think of the shape of the product?
- What do think of the taste/ flavour of the product?
- Does it taste better than the original Haribos?
- Would you rather buy this product rather than any other sweet product?
- Does the product appeal to you?
- Would you improve this product if so how?
- What are your thoughts on my product overall?
4 ps- price, promotion, place an
Price:-
The pricing policy that my business has chosen is a reflection of the market of which I am aiming at. If the prices of my Haribos are not right, costumers will buy rival product as consumers have a fair idea of what is the correct price for a product. Also this could end up in resulting of lost revenue which can also be lost if price is too low. For my pricing I need a balance between sales and revenue. An understanding of pricing elasticity of demand will help my business to make correct decisions as pricing involves a balance between being competitive and being profitable.
Some of the pricing strategies I will use will for Haribos include competitive pricing, which is where products are very similar and there is a lot of competition. I will not be able to charge significantly more or significantly less than market rivals. The price I will charge will therefore be very close to that charged by my rivals and competition will tend to be “non price” competition. My rivals are Rowntrees, mints,
Also I will use promotional pricing. This will be a short term pricing strategy which will help generate sales which will lead to profit. Special offers, sales, discounts etc are various promotional prices. As people will want to buy a larger quantity as they will be saving more money. This strategy will appeal to adults as they will want to save money and get the beast deal for a product. Discounts mainly appeal to family with kids. This will be an advantage as kids like sweets.
Creaming or skimming is another pricing strategy but will not be relevant to my product as my product will not be set at an initial high price in order to take advantage of that segment of the market that is willing to pay to be ‘the first’ with the product then the price will slowly decrease as more products come out in the same market. As my product is not a generally a brand new product but an much improved version of Haribos also as it will be set at one price this pricing strategy will not appeal to my product.
There is also a pricing strategy which is psychological point pricing. This could help me as it adds a price tactic where I try to make goods and services sound cheaper then they really are e.g.: £9.99 sounds a lot less then £10.00. A lot of company’s use this strategy as they finish in 99 penetration price, this is a price that is set lower than that of competitors so that a firm can gain a foothold in the market for example, my company may offer discounts and cheaper prices to new customers. Even though these may be eroded, customer may stay loyal to the company. Once a business has established a market share through penetration pricing, they are likely to keep it. But this price strategy is not relevant to my product is a good reputation brand which already has a foothold in the market. This strategy applies more to building societies, banking, gas, water electricity and telecommunication with people reluctant to move from one service to another.
Undercutting is called predatory or destroyer pricing. A firm deliberately undercuts a rival’s price with the intention of driving that rival out of business. The success of failure of the strategy depends on which firm can best carry the losses. I will not want to use this pricing strategy as I will be using competitive pricing which will be having similar prices to my rivals. This strategy is a risky strategy. This could cost the company a lot of money trying to see who can carry the most losses.
Another pricing strategy is loss leaders which I would not like to choose for my pack of Haribos as the price of a loss leader is set lower than the total average cost of producing the product. This pricing strategy is mainly for companies who sell various products as they use this pricing technique because they expect losses made on the loss leader to be more than compensated for by extra profits on other products. So this strategy will no be relevant to my company as I would not to make a loss and hoping I make some extra profit this strategy appeals to bigger firms.
The demand curve for business
Business need to understand how the demand for a product can effect that they price that they can charge for it. This relationship can be shown by a demand schedule and a demand schedule and a demand curve. For the most products the relationship between demand and prise is opposite. As the price goes up, the quantity demand goes up. So the demand curve will rise price will lead to a fall in the quantity demand curve. Some demand curves are different for various products. Some appeal to wealthy people such as ‘prestige’ perfumes. A low price could put off consumers of perfumes. A low price could put off consumers of such a product, given the link made between a higher price and high quality. This means that the quantity demanded over lower prices may increase as price rises for such product.
How my business will use the demand curve
My demand curve will useful as it will help me in terms of analysing and planning activities. They will enable my business to:-
- Calculating my revenue for any given price change;
- If I decide to change the prices of my product it will predict the likely reaction of consumers.
- Help me predict the likely impact upon revenue on price of price changes.
Calculating revenue;-
The reasons for my business being interested in demand curves so it can help me to calculate the revenue that may be earned for a certain price that is charged for Haribos. I can calculate the revenue by using a simple formula.
Price x quality demanded = total revenue. so for example
Right competitor’s price
Price sensitivity
All businesses are concerned about the sensitivity of the demand for their products to price changes like I am for Haribos. If there is a change in price with Haribos I will want to predict what will happen to the quantity demanded. The sensitivity of quantity demanded to changes in price which is known as price elasticity demand. It can be calculated by using the formula.
PED= Percentage change in quantity demanded
Percentage change in price
To measure how demand for my rival products will react such as rowntrees or complementary goods change. I can calculate it by using the formula.
Percentage change in demanded of good X
Percentage change in price of good Y
Factors effecting price