• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Prices Snacks plc has been established as a company for a long time therefore they have a great knowledge and understanding of the competitive market. They make a range of confectionery items such as chocolates, chocolate boxes and chocolate eggs.

Extracts from this document...


Introduction Prices Snacks plc has been established as a company for a long time therefore they have a great knowledge and understanding of the competitive market. They make a range of confectionery items such as chocolates, chocolate boxes and chocolate eggs. The company started making milk chocolate bars and over the years their products have developed and increased to meet customer demands and to compete with rivals. The current products have been in the market for twelve months and the sales are steady. Therefore as marketing director I feel it time to start to develop a new product. As marketing director of Prices snacks Ltd it is my job to identify anticipate and satisfy customer's requirements with the new product and the profit for the company. The marketing department at Prices Snacks Marketing is about creating customers. The manager's look at things through the customer's perspective, so giving the customers what they want at a profit is a high priority. The activities that are included in the market section are: > Market research to find out customer's needs. Also to find out from questionnaires whether people like crisps, chocolate, sweets etc. Also to find out the right type of chocolate that Prices Snacks customers want. > Producing a product that meets customers needs and wants, Prices Snacks must have a product that customers want and are prepared to pay for other wise they will got to competitors like Cadburys or Nestl´┐Ż. ...read more.


They do this because the product is new so therefore people will be prepared to pay the extra cost to try the new product because of the high demand. Penetration pricing is where the product is released into the market at a lower price to competitors; therefore more bars are being sold but only a small profits being made. Once the product is selling at a steady pace then the price will be increased slowly. Cost plus pricing is a good way of setting the price of a new product. To do this the following formula is used: Number of chocolate bars sold + Number of bars being distributed + How much it costs to produce the product then a bit onto is added to this to make the product profitable. Prices snacks use this method because it is easy to apply to the products, so a profit is guaranteed. Price skimming is used for new improved products that are not in the market, this is because there is no competition, and therefore people will be prepared to pay that bit more extra for a bit more luxury. How and where the product will be distributed Businesses have to decide where is the best place to sell their products. Houses will be sold directly to customers and so will cars, but chocolate is a lot more complicated to sell straight to customers so Prices snacks have to sell to wholesalers and retailers. ...read more.


This is the amount of time that the manufacturer expects the product to sell. The product life cycle is made up of series of stages these are as followed: Research and development Prices snacks invest money into researching the market for the new product, develop it and market test the product. At this stage the product is making no money, it is costing the money company. Introduction The product is launched on the market. A promotion campaign and a large amount of advertising will take place at this stage. The product is still making a loss. Growth The product starts to make a profit because it is becoming known in the market. Advertisement is still used. Maturity/saturation The product is still well established in the market. Advertising will be used to remind the consumer about the product. This is when the product reaches its peak and is at its highest profit level. Companies will try to maintain this stage as long as possible. Then they may introduce new models, or revitalise the advertising campaign to promote further sales. Decline The product begins to lose its sales. Competitors are entering rivals into the market. The product is out of date and sales begin to fall and so do profits. End of production line: The product is taken out of production. The last stock is often sold at a lower price for a quick sale. To make sure a product does not reach the end of production line Prices snacks are always researching into new ideas for new improved chocolate bars. 1 Rachael Cullis 11tt ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Marketing and Markets section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Marketing and Markets essays

  1. Barnardos PLC - Management

    All government want to retain power and aim to be re-elected. A government which is receiving large amounts in revenues has the scope to do more. It can spend money on new hospitals, schools and transport, which will please voters.

  2. Promotional campaign for Pizza Pan foods in Malaysia

    Furthermore, public relation also an important tools for a firm like Australian Pan Pizza Company outlets in Malaysia. This is because media, government, investors, society, stockholders and suppliers contribution needed to promote these two products. For example, dealing with favorable public relations like safety control of the fast food and quality control approve by Halal.

  1. To make our product I had to research key factors on savoury snacks so ...

    Also many of the requested flavours involved meat flavours like chicken, bacon, beef etc and from our tasting panel the spicy flavours seemed to be the most preferred taste so this information has given us guidance on what our new flavour should be.

  2. Investigating Market

    wear, Ascot, black tie events, prom nights, balls and many other special occasions. Suits from different eras to cater for today's high profile society events such as WW1 military, 20s royal courts, 30s cruise liners, 60s mod fashion and 80s power suits.

  1. Amstrad Plc a business overview.

    Policy matters are typically left to leadership bodies meeting more frequently. And management is often delegated to staff. Culture Sociocultural- "The sociocultural environment is of particular concern to marketers as it has a direct effect on their understanding of customers and what drives them.

  2. Analysis of The Cadbury company.

    for Cadbury Dairy Milk, with its 'glass and a half of full cream milk in every half pound produced', is still basically the same as when it was launched. Cadbury is the clear leader in the UK chocolate confectionery market, with over 50 brands and 350 packs.

  1. Is there a gap in the chocolate market? How could one befilled? Looking at ...

    There was also a selection of other chocolates that were wanted, see appendix 6 for the full results. I had found the gap in the current market, which I had found by Mars Maltesers. I had noticed that Maltesers did not have much competition at all the closest competition for

  2. Elite Chocolate

    It has been very successful and Elite Chocolates wants to increase their product range. They now would like to create a new low fat product. The firm is clear that any new product should maintain the high standards they have set themselves over the years.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work