Marketing strategy for my product from the Steiff bear company.

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Kiran sunder                                                                                       Last printed 09/05/07 3:36 AM

                                Unit 3 Task 4

To: Maria angel

From:

Date handed out: 25/10/02                                        Date handed in: 8/11/02  

REF: (Unit 3 task 4 part 1, 2, 3, 4, 5, 6, & 7)

Terms of references: I am going to look at my marketing strategy and the marketing mix. I will describe my marketing strategy showing an understanding of the principles of marketing, I am also going to show an understanding of how marketing and market research affecting the choice of my marketing strategy.

Procedures: I will find this info from the business advance textbook and the lead lesson was I would take notes from Maria angle lessons. I will also look on the web sites on the Internet and refer back to the pervious work that I have been doing.  

Findings: PART 1

My marketing strategy is for my product which is from the Steiff bear company it is the teddies bear collection of 2002 and the marketing strategy that I am using for this product is marketing penetration. This strategy will help to develop the company name to attract more and new customers because the promotion of the product is the main aim of the strategy.

This will attract all sorts of customers at different ages and types. Marketing penetration is an existing product in an existing market, this strategy improves the promotion and sales of the product that is advertise and will be in more demand and to promote the product and company name. The 4p’s are the principles of marketing and are called the marketing mix. I will use the marketing mix for my product strategy, the marketing mix are the 4p’s which are:

  • Price
  • Promotion
  • Place
  • Product

These 4p’s will change the marketing strategy I am using, I will need to be able to fit the product and the 4p’s around the strategy to make the marketing marking mix work with my strategy. To do this I will need to clarify the principles of marketing, which are:

  • Customer needs
  • Competitors
  • Communication
  • Co-ordinate the functions of the company

  • Aware of constraints on the marketing activities

There is a graph/table, which shows the lifeline of my product it is the called the product life cycle.  This is what the product life cycle looks like and the red line indicates the Steiff bears product, which I have chosen.

 

PRICE

Price will be shown through my strategy of advertising with promotion and this will also attract more customers because prices will be shown making it easier for the customer to make a choice. I will use a pricing strategy which is called penetration pricing, this strategy means that the product that I am selling is to be introduced at an introductory price to attract customer’s attraction to the product. So that they become interested into my product then when this has happened I will start to increase the price and also begin to bring more products into the market but with a higher price and this will allow my profit to increase.  

PROMOTION

Promotion is a big thing in my strategy so not only am I going to advertise and offer new introductory prices but I will also get sponsorships from popular TV shows and football teams to help promote the name of my company. I will display my product in as may stores as I can and making all advertisements much are attractive and eye caching to all customers. I will also us direct marketing by sending all families with children leaflets and posters of my product. I am also going to have to look at the time of introducing my product, as it has to be during a good competitive time when the market is at a high selling point like winter during Christmas.  

PLACE

Place for my product to be located is in the right area is vital so that customers can have easy access and can get business booming to make a profit. Through my research I found that they company is not distributed in the right areas in the UK. There are only two small stores in the UK the others are world wide.

This is also why I chose my strategy to advertise in busy places like airports, coach stations, train stations and shopping centres. This is where there are a lot of people, so they are good places to advertise and get notice. I will also advertise on TV this is direct selling to customers telling them about the product ands where they can find their local store and I think this is a good idea because almost everyone owns and watches TV.

This yet again will attract more customers and customers then will come more often. I decided to change the place that the Steiff Bears Company is located because they were not in the right places. They need to be in a busy town area. Where Steiff bears are location, usually there is no rivalry outlet like other big company, this is because they are not very competitive with each other and this is what they need to be doing.

PRODUCT

I will target different customers such as different age groups and different cultural back rounds. I will promote my product to these different age groups such as 10-13 as they like teddies as toys and for 30-50 as this group would be interested in collecting them. So I am advertising my products as well as attracting more customers. I will have prices shown with my products.

The product is a 2002 collector’s Teddy bear with blond, jointed with glower with gold-plated “button in ear” (surface washable) and is 44cm long. The price is $29.99, but I will change the price to $19.99 so that I can introduce it at a fair price for customers to be come interested in to the product. In the Boston matrix I found that my product is a problem child product, which means it has a low shares and high growth in the market.

Customer needs

My marketing strategy is affected by customer needs, as the marketing strategy involves the marketing mix the 4p’s and the 4p’s are part of their needs as the price, place, product and promotion is aimed at them. So my strategy needs to change to fit the customer’s needs. Before I do anything, I need to identify the customer needs to do this I will need to give out questionnaires and look at number of stock sold in the last year etc. Then I will use the results to meet the customer needs as bests as I can for the company image.  

  • The price of my product will affect the customer needs and communication between the customer and staff, as the staff will have to convince them that the price of my product is fair. My strategy is enabling me to give an interdictor price to the product, which would a cheap price.
  • The product will need to be promoted this will be done by advertising; the adverts have to be appealing to all types of customers so that all customers are being attracted to the product.
  • The product will be placed where the customer can reach and have easy access to my product that is why I have placed it in other stores. My product will be placed in other stores where the customer can find my product easily along side others and they will be able to compare them and find that my product is better quality.
  • The product needs to be suitable for all shorts and types of customers. The customer’s thoughts and ideas are important to the company. The customers are given questionnaires for research they are the main research method for my strategy and product. The customer needs are needed to be looked into to see what the customer want as the product is aimed at them so I will look at these needs and use questions to find the needs. I will ask people with children and around the age of 26–35 etc.
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Competitors

My company needs to know and be aware of their competitors. They keep within the time of my company as they have released the new beanie bears which are the new range of the toy market, which is a good method of keeping in front of the other companies and competitors.

  • My competitor’s effects the price of the product, the product will have an introductory price which will help promote the product and be able to get the customers attention with the cheap prices and this will help overcome the other competitors, keeping ahead ...

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