Branding, Pricing, and Distribution - Assignment Example

? Branding, Pricing and Distribution First Branding, Pricing and Distribution In today’s highly globalized market and with a product, Fizzi Cola that is aimed at the international rather than just a domestic market, the product branding strategy would have to be the same for both the global and domestic market. With the reality of borderless markets, the strategy would have to be one that that works for both the local and global audience as any dissimilarities or differences there would be questioned. The kind of branding strategy that is to be created for this product will have the following as the main features: It should have a consistency in message no matter what market it is aimed it. It is important or the branding strategy in one country or market is the same in terms of content and message delivery each and every time (Cooper, 2010). The strategy will include having themes that are immediately adaptable to each and every economy and those that do not easily translate in certain economies should be dropped. The last thing you want for example is a branding strategy that ridicules the culture of one country or whose meaning contrasts with that of another culture. The branding strategy that will be adopted by Fizz Cola will also link strongly to the business model on which the product’s sales and marketing philosophy is built. This ensures that marketing the brand will go hand in hand in marketing the brand’s business model, which leads to a more sustainable and sustained customer following (VanAuken, 2007). The branding strategy should also include the use of borderless media such as social media to ensure that the product message reaches all and also to leverage scales of economy in marketing and distribution. The use of social media can also be incorporated into the branding strategy, thus making the users or consumers of the product co-creators. Development of branding strategy that utilizes such social media as YouTube allows the consumers to develop and spread the word about a Fizz Cola. The branding strategy the Fizz Cola will use will also include a type of measure that can be used to assess its effectiveness as well as being flexible enough to change when necessary especially on the global borderless market (VanAuken, 2007). There are different types of pricing strategy depending on the products, its price elasticity and the existence and nature of competing brands. For a product like Fizz Cola, which will be coming into a highly competitive arena where there are basically two major competitors, Coca Cola and Pepsi, it is even more precarious. These two firms have been known to deal ruthlessly in sales and marketing terms with any upstarts that try to enter into or undercut their market share. Introduction at a price that is too low will make it impossible for the makers of Fizz Cola to ever break even (Stiving, 2012). However competing that same or higher pricing level as these two giants could lead to a vicious price war that Fizz Cola my not be able to survive. Thus the only way Fizz Cola will be able to survive is by establishing a very competitive policy of penetration pricing. The penetration pricing should be low enough to enable the company cover its costs – and thus be sustainable over the long term - but slightly lower than that of the competition in order to attract consumers of the already existing products. The pricing strategy should also have a value-based angle to it, thus involving the consumers in its determination as long the main principles relating to penetration pricing are still adhered to (Stiving, 2012). The pricing strategy will support the branding strategy by ensuring that whatever price is charged for the Fizz Cola products is comparable and consistent throughout the different markets and regions the products are sold. This will engender and ensure that the product is able to build a strong consumers confidence and consumer loyalty as well as ensuring that the marketing message of the products remain the same through whichever market is being targeted by the products. Thus the price to be charged in Europe will be comparable to the price being applied in the United States. The pricing strategy will also leverage upon the branding strategy in terms of ensuring borderless reach and retaining the same advertising and merchandising ideas and methodology. The pricing strategy thus emphasizes the “sameness” of the Fizz Cola brand and their products no matter whether it is sold or bought in a supermarket in New York or a small village kiosk in Namibia. The distribution channels that Fizz Cola will use include the traditional sales through supermarkets, convenience stores and other retail outlets. There will also be the use of the traditional vending machines and self-service machines as well hotels, restaurants and cafes. The distributor and retailer relationships to be developed by the product will be based on value addition and profit generation at each stage of the distribution pipeline to ensure profitability and engender loyalty from the different players in the supply chain. The development of an effective and efficient product distribution channel will also be factored in the pricing strategy to ensure that there is sustainability as well as attractive enough margins to keep the products attractive to all players in the supply and delivery chain. A push strategy for distribution is essential at the beginning of any new product since customer have to be informed of the product and for the implementation of effective and credible brand awareness. Such activities as trade shows, negotiation with retailers to stock Fizz Cola products as well as point of sale displays will be necessary to push the product into the market and into the radar of potential consumers and customers. However Fizz Cola cannot depend on push strategies along. There will be need to engage in Pull strategies that will motivate customers to actively seek out the products and deliberately choose them. This will include such activities as advertising and promotion in the mass media as well as sales promotions and discounting strategies that excite consumers about the products on offer. Using a combination of both push and pull will therefore be the best avenue to distribute and market Fizz Cola.As with the branding strategy, the advertising strategy should also be consistent across borders and also utilize borderless media such as social media to ensure value for money is achieved and enhanced in advertising. The distribution strategy for Fizz Cola is designed to fit in well with the type of product and to ensure that the product has the same, if not more exposure within the market as all its competitors. That said, the branding strategy will ensure that it differentiates the product enough to build a steady consumer following and loyalty. Utilizing the delivery and distribution strategy that is similar to the competitors ensures that the product gains adequate visibility and is able to compete on a more “head on” footing with the larger already existing players and also leverages on existing distribution channels, lowering costs for the manufacturer. The distribution channels will also follow consistently with the branding strategy to provide maximum customer identification and to attract interest in all the markets the product is aimed. References Cooper, L. (2010, July 6). Five strategies for a successful global brand. Retrieved August 12, 2013, from http://www.marketingweek.co.uk/five-strategies-for-a-successful-global-brand/3015220.article Stiving, M. (2012, August 6). What You Need to Know About Pricing. Building a Global Brand. Retrieved August 12, 2013, from http://www.entrepreneur.com/article/224121 VanAuken, B. (2007, January 9). Building a Global Brand. 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