Psychological pricing:
Psychological pricing or price ending or charm pricing is a marketing practice based on the theory that certain prices have a psychological impact.
Captive product pricing:
Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera.
Product line pricing:
Setting the price steps between various products in a product line based on cost differences between the products, customer evaluations of different features, and competitors' prices.
How the pricing strategy that I will chose will appeal to the target group of customers
The product will based at families but will be introduced at a penetration price, this is because the product will be new and to encourage families to purchase it the product will be sold at a low price, when the product passes the competitors on the bases of favouritism then the price will be increased and the families will still purchase the product because they have enjoyed it
The product will be sold for £1.00 a box because it is going to do penetration pricing.
Penetration pricing is done first usually because businesses want to generate the money which was used to create the product. Business also use penetration marketing when entering a new market, they usually start off with low prices so that the product gets more recognised. The product will have a good start when it enters the new market. The organisation could not have chosen any other marketing strategy because Businesses also have to be careful they do not put the prices to low as some parents and others will see the product as a cheap product.
Place:
This product will be sold intermediary, intermediary means the product will be delivered to super markets and then they will sell it. The place which my product will be sold in is already very appealing as they are the top four super markets in the UK.
The main places where my products will be sold are at super markets because this is where most families shop for their weakly shop. The organisation is going to try and sell this product in the four top supermarkets in the UK which are Tesco’s, Asda, Sainsbury’s and Morrison’s. If the product is a success and sells loads in the supermarkets then my product can be sold in other shops like corner shops.
Promotion:
This product is aimed at all those people who like having Jaffa caked but require a different variety of tastes and also those people who don’t like the current taste of the Jaffa cakes, they are edible with any liquid e.g. tea, coffee
The product is also suitable for vegeterians which will attract more people and also save time when customers are reading the ingredients to see if it has any kind of meat or something else they can’t eat e.g. gelatine. There is a trace of salt in the products.
The organisation shall promote the product and attract the attention of other customers by advertising it on T.V during 5pm, this is because this is the time families tend to watch television, the organisation shall target the product at families and children as they are who my product is aiming to sell at, this will make them more interested in the product, the organisation will make it very clear that it is an alternate version of the original Jaffa cakes which will also attract people who are lovers of the original Jaffa cake. Another method of advertising is the use is celebrity endorsements which will attract customers because their favourite celebrities eat them.
To attract customers and because families are on a tight budget, the organisation are going to use a promotional strategy for a family especially price of the product will have a massive influence when deciding whether to purchase the product or not. Especially in a recession my product isn’t a necessity it is more seen as a treat. It is not a product which individuals need to live. When families or people try to cut back one of the main things their change is the amount of their shopping bill.
The organisation is going to segment the market based on psychographic segmentation. This is when a business identifies key lifestyle preferences of consumers’ values, beliefs and interests. Primarily families are going to be targeted as children and adults will both interest in the product. The original Jaffa cakes are already nations favourite this is just to give the customers another similar product.
Objectives of developing mix
Support brand building:
One of the reasons why this is good to use is because it allows a new product to enter the market which can help increase the existing brands reputation and image.
Satisfy needs and aspirations of targeted group of customers:
They need to satisfy what the target group wants and needs and if they don’t satisfy the targeted groups then the product has failed as it has not satisfied the target group.
Importance of need for cohesion of different elements of marketing mix:
Every part of the 4 p’s (product, price, place and promotion) need to be correct because of not it won’t have a chance of competing in the market
Product
Product range:
The way that my product flappa cake fits into the market is because it fits in with the treat section, which allows customers to treat themselves with a flappa cake. The reason why this product fits into the product range is because it’s a sub product of the original products (Jaffa cake) but it’s just has a different taste to the original product
Benefits verse’s features of products or service for targeted customers:
The way that my product will benefit the customer is through allowing them to have a variety of different flavours of the same product, it also benefits vegetarians, the way that the flappa cake benefits the customers is through allowing them to eat at, the Jaffa cake contained gelatine which prevented vegetarians to consume the product
Concept of product life cycle:
The diagram above shows the life cycle that all products go through
The flappa cake product will be in the introduced category this is because the products has just be introduced to the market, opposed to other mcvitie products they will be at the growth/maturity category this is because they have been in the market for a long time.
How the new product will meet the needs of your proposed target
The way that the proposed product will meet the proposed target will be through the use of many multimedia sites, and television advertisement, and also it has the recipe to be an achiever. The organisation will also use celebrity endorsements to hit the road running with my product being noticeable.
Place
Distribution:
The product will be distributed via online website such as Wal-Mart, Tesco PLC, Asda, Sainsbury’s, Morrison’s etc, the product will be available in all the leading supermarkets operating on a global base, this is to achieve global recognition and to make the product a success if possible
Due to the of both distribution tactics (online/ physical presence) it will be purchasable by anybody and there won’t be any limits in where you have to go to obtain the product, it will meet the target audience because it will be widely available to them
Promotion
Promotional mix:
A specific combination of promotional methods used for one product or a family of products. Elements of a promotion mix may include print or broadcast advertising, direct marketing, personal selling, point of sale displays, and/or merchandising.
Advertising
Different media:
The organisation will use multimedia sites e.g. net mums and also YouTube because those sites are family oriented, television advertisement e.g. BBC, ITV and sky because they are family oriented channels, celebrity endorsement e.g. George Clooney. In store advertisement e.g. in the stores of Asda, Tesco PLC, Wal-Mart etc to make the presence of my product head, by using celebrity endorsement it will allow my product to hit the market running, this is due to fans wanting to eat the product because their inspirations are eating them
Online techniques:
The organisation will be promoting the product on many different multimedia websites such as YouTube, it will also be advertised on the supermarket websites it is sold at e.g. it will be sold at Tesco and so it will be sold at Tesco PLC website. The product will also be advertised on twitter and Facebook through popups because they are social media sites that are visited by many people from all around the world which will increase international awareness
Personal selling:
The organisation won’t be selling the flappa cake product themselves this is because the product has no recognition and so it will take a vast majority of time to make the product noticeable and so we will achieve slow profit increase. Selling the product at recognised and very popular supermarkets and markets will give our product a boost and this will also give the product its own recognition in a small period of time
Public relations:
The organisation will maintain the favouritism of the product by getting celebrity to endorse the product so it maintains the top positions for a lengthy period of time, they will consider using celebrities such as George Clooney
Sales promotions:
The organisation will use sales promotions such as regular offers like buy on get one free, they also want to introduce anniversary promotions, they’re will also be holiday promotions such as Christmas, Eid Diwali promotions, this will best benefit our product because it will show that we are very interlinked with the different religious celebrations
The methods of promotion that I have decided to use which will meet my proposed target group
The promotion tactics that the organisation will use is anniversary promotion and also religious In the July the product will be presented to families portraying that it will be a healthy treat, a promotion tactic will be a television advert set in the July time so in the summer when the family require ice creams and instead of ice-cream they will receive a flappa cake and they will be happy with it, when the product is established they will tie itself into anniversary promotion and also religious celebration promotions such as Diwali, Eid and Christmas