Week 5 analysis for bank on lemonade drink | MKT421 Marketing | University of Phoenix
Week 5 analysis for bank on lemonade drink | MKT421 Marketing | University of Phoenix.
Using the same organization and the lemonade drink from the Week 4 Learning assignment, develop an analysis for the bank. The bank will be using this information to make their final decision on how, and if, to fund your company’s new and unique lemonade. Through your research, you have found that the bank you will be presenting to is favorable of socially-conscience companies that support local charitable endeavors.
Develop a minimum 350- to 525-word analysis that include the following:
- Select four of the following methods and explain how they should be used by your company to align best with your target segment and product definition:
- Public relations
- Traditional Digital marketing
- New Digital marketing techniques (describe)
- Direct marketing
- Event marketing
- Outdoor Advertising
- Select two of the following forms of sales promotion to promote your product and explain the reasoning for each of your choices:
- Loyalty Programs
- Point-of-purchase displays
- Discuss ways you can demonstrate to the bank that this company is a socially-conscience organization and will be involved with local social endeavors.
- Discuss how your company could expand into the global market.
- Examine promotional methods that could be used to market your lemonade globally.
- Examine any ethical or moral issues you may encounter while developing and utilizing the various forms of sales promotion.
Week 4 below to show assignment and grading from professor.
Simply Lemonade- A Lemonade that has been reported to taste more like lime and have a tartier taste. (“Taste Test: Ready-To-Drink Lemonade”, 2011).
Our company’s lemonade is made with fresh lemons and other fruity flavors for a fresh healthy lemonade.
Minute Maid- This lemonade was reported to be perfectly blended but were still reported as bland.
(“Taste Test: Ready-To-Drink Lemonade”, 2011).
Our company blends our fresh lemonade with other fruity flavors for a nice sour taste added with vitamins for an added health boost.
Natalie’s Hand-Crafted- Reported as sweet but doesn’t seem fresh.
(“Taste Test: Ready-To-Drink Lemonade”, 2011).
The above designates the above brands’ taste weaknesses and can be significant. But, the Team must also report its nutritional and ingredient strengths and weaknesses as compared to Super Flight.
Our company prides itself with its fresh lemonade and fruit juice blend that is carbonated giving it that little extra fresh crispy taste.
This hints at Super Flight’s positioning in terms feature and benefits, value added and competitive edge. However once again, I refer the Team back to Part 2 to understand how this positioning can be strengthened to more clearly differentiate the brand from the competition.
- Define the pricing strategy in no more than 90 words that you will use for the introduction of the product.
We believe that the best pricing strategy for our lemonade at launch to be penetration pricing. With penetration pricing, prices will start low with little profit margins to attract new customers and gain market share value. This should in turn raise awareness of our new lemonade and raise sales volume, while also creating lower production costs and higher inventory turnover due to the increase of sale and production.
This makes good sense.
The considerations can be this:
If the Team is convinced the product is addressing an unmet need for which there is no direct competition and for which robust demand is anticipated, then a skimming pricing strategy is advisable.
However, the Team has determined the product will be introduced into a competitive marketplace wherein a penetration pricing strategy that aims price at the middle of the market can be implemented to encourage trial and brand-switching.
- Discuss in no more than 90 words the maturity life cycle stages of your product.
Stage of Maturity Life Cycle
Sales volume peak
During the maturity phase of the Product Life Cycle sales volumes tend to peak because of product saturation in the market.
Maintaining market share
During the maturity phase competition is at its highest level in the cycle, which makes it increasingly challenging for a company to maintain their market share.
Stronger product differentiation/Improvements
Through product differentiation, improvement or changes to the product (new mixes, flavors, or ingredient improvements) the company can keep maintaining or slow the decrease of their market share.
Decreasing in market share
Because of the high competition at this stage companies will start to experience a decrease in market share. This will be followed by lower profits because of price reduction of products to maintain competitiveness, which will also bring down price levels.
The Team has examined the maturity PLC stage only. Note that the maturity life cycle stages are to be discussed.
This means the Team must examine the introduction, growth, maturity and decline stages.
Briefly, the discussion would look like this:
· At introduction a product must establish brand awareness, perhaps trial the product with key target markets and price the product – the Super Flight Team implementing penetration pricing strategy to encourage trial and brand switching.
· During the growth stage, the Team improves quality and adds new flavors to enhance differentiation and maintains the price due to healthy demand. The Team seeks increased distribution coverage and modifies promotion to shift the promotional message from brand awareness to preference.
· At maturity, the Team may enter new geographical markets and engage in additional product modification to further differentiate the product line from the any emerging competition rather than compete on price.
· In the eventuality of product decline, which can be possible with the emergence new health and taste trends, the Team will reduce promotional expenditures, cut back distribution and possibly reduce the price. The product, if endangered, will then be harvested from the product line if sales no longer justify a marketing investment.
The Team does discuss the maturity stage correctly.
- Describe in 90 words how you will use suppliers, agents, or distributors to create your distribution channel.
We can use wholesalers, resellers, retailers, and consultants since they already have resources and relationships with customers and vendors to quickly bring our product to the market. We will even set up our own personal sales team to bring in new customers as well to sell directly to these customers. We can also set up an online web-store so that customers can order directly from us online and get their orders shipped directly to them possibly by UPS since they can deliver even to smaller locations. Another thing we can do is to advertise our lemonade with specific sales for brand new customers -since this seems to help catch interest.
Good. The Team is planning to implement a multi-channel distribution design; first indirect through wholesalers and retailers. I don’t know what “consultants” means. Super Flight>Wholesales>Restaurants, Supermarkets, Convenience Stores>End-User.
The Team is also establishing customer-direct distribution channel through its website.
Total Score: 7