• 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

    supermarket opening on the edge of their estate but would be concerned about the number of lorries making late deliveries to the store. Local people may also be concerned about business activities and operations that could result in damage to the local environment such as the building of housing on green field sites.

  2. I have been asked to produce a marketing strategy for an existing or new ...

    I plan to have an advertising campaign on the television before the six o' clock news on channel three. An advertising campaign on the television may be very expensive but a lot of people will see the advert so it is worth the money spent on it.

  1. This coursework entitled "Marketing" is about creating a marketing strategy for a new or ...

    The car market is a fast growing one and the A6 is a new product, so would currently be considered a question mark. However, it is likely that it would soon become a star if it sells well. The Boston Matrix shows us that the A6 will need investment (much will already have been spent on design and production)

  2. Elite Chocolate

    Any new product therefore should: be low in fat, taste as good as regular chocolates, be made with natural flavours and contain not artificial additives or preservatives. My final task it to create a summary report to the managing Director and explain the work I have undertaken and the recommendations I would make as a result of this.

  1. Analysis of The Cadbury company.

    As the world changes, obligations of the business to society has broadened of the years. Yet the company wants to ensure that the continuation of the company's heritage. The Cadbury Schweppes objectives for the 2004-2007 period are: this information was gather from the Cadbury Schweppes website.

  2. Produce a marketing strategy for a new or existing product

    Cosmopolitan this isn't a issue at all because they are the successful magazine which means they can afford to do this. I will be using both techniques because I really want to make an effort of becoming focus of attention.

  1. Promotional campaign for Pizza Pan foods in Malaysia

    For instance,, targeting the English-educated students who are more likely to follow the western style by consuming frozen pizza as their priority frequent meal whereas Chinese -educated students are preferred in consuming flour products as their elementary needs such as rice.

  2. Market Research for a new sweet. I asked the question Chocolate do you prefer?, ...

    Having collected and analysed all the results, I will now the use results to produce a product which appeals to my target audience. I asked the question "Chocolate do you prefer?", to detect what type of chocolate the people in my target market prefer; I have used these results and determined that my target audience prefer milk chocolate.

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