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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.

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Introduction

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.

Middle

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.

Conclusion

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.

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