Factors Affecting Marketing Strategy - Essay Example

? Factors Affecting Marketing Strategy The study evaluates the promotional campaign for off brand cereal in the competitive market. From thestudy the involvement decision of consumers regarding the off brand cereal and the market segment to be targeted for the advertisement campaign are recognized. Various marketing and promotional strategies such as focusing on parents as the key reference group and developing word-of-mouth strategy are among the vital factors evaluated in the study for the off brand product to gain its importance in the market. Introduction Marketing strategy of a product depends on various factors such as the product type, its price and the brand. The product type dealt with in this study for the development of advertising campaign is “Off-Brand Cereal,” which has a low involvement. Low involvement products refer to a set of products wherein the consumer takes the decision to purchase or consume it based on less information, as the products are used on a regular basis and have a relatively low price as compared to other products. Low involvement is when the need for the product is recognized and a purchase is made without much knowledge. Consumers normally involve in the routine response behavior which is immediate purchase and also deal with impulse purchase which is buying of products without planning while making low involvement decisions. The price involved is for off brand cereal is low as compared to other products such as cars. Moreover, the low involvement products have less advertisement as these are the products that are used on a regular basis by nearly every individual. The quality of the product has nothing to do with the price or the advertisement as the new product launch requires a clear focus on promotion to reach the public even if it is of low involvement. The marketing strategy used for the off brand cereal selected will be the mimicking an existing campaign of a famous cereal brand. The reason for using the option of mimicking of the existing brand’s strategy is because of the success story of the brand. The way branded product influences the consumers to select it along with meeting the requirements of the target market segment would be keenly considered while developing action plan for off brand cereal (Tanner & Raymond, 2012). Market Segment of Cereals Users Focused The target market for the cereal based products such as cornflakes are usually children from the age group between 6-14 years. The market size of the consumer of the morning cereal as per the United States census of 2012 is 37,022,425 children (American Path Finder, 2012). In this regard, the target consumers are the children. In order to make the product aware and increase the sales, advisements must be generated keeping in mind the population targeted. As per data, it is evident that in the earlier years, the marketing strategy was not as important as the current situation. According to the data of 2003, the target segment was nearly 26,251,000 children, which is much lower than the current market size (Fields, 2004). The advertisement campaigns at that point of were less aggressive as the level of competition was less. Today, in order to place the non-branded products, a lot of promotion and advertisement is required to meet the growing demand of present and future. Moreover, with the growing trend of the prospects by 2025, the projected target market is expected to grow further to 114,052,000 (United States Census Bureau, 2012). The factors that affect the market segment of the cereal consumption include the price of the product which is strategized to meet the requirement. The quality of the product which is of significance for the health issues of the target segment. And, establishing a brand awareness of the product in the mind of the parents is crucial as they make the purchases based on their income and status. The purchasing behavior of the product depends on various factors, such as the price of the branded products and the quality of the food as it is largely consumed by the children. In terms of recent day context, the purchasing behavior is showing a change in the buying trend as the price of the prevailing branded products is more as compared to the off brand products for morning cereals. The off branded product has a huge scope in the market due to the price of the product. The quality aspect of the off brand is the same as it has nearly the similar composition of ingredients. Moreover, because the product has a low involvement, its sales opportunity is more as the information required by the consumer is not that elaborate (Golub & Binkley, 2005). Reference Group and Diffusion Marketing Reference group entails the people who influence the decision perspective of others. The reference group for the cereal product of children is their family members. They are the ones who influence the choice of decisions of the children based on their thoughts, information and the level of income (Laszlo, 2008). Diffusion is the procedure by which a new product is made acceptable in the market. The pace at which the information of the product is spread from one customer to another with the influence of the reference group or by the promotional strategy of word of mouth is the rate of diffusion. The key strategic determinant used is the price of the product which would enable to attract people of various income groups to buy the off brand cereal product with the assurance of high quality. The easy availability of the product in the local market, observability of the product due to product advertising campaigns and advertisement in the local media influence the market share of the off branded cereal. Moreover, the penetration model used to observe the sales of the product in the short run helps in determining the sales along with assisting in moving the product to the national prominence (Wright & Charlett, 1995). The rate of diffusion defines the expenses of market for the success of the off brand cereal. The process of diffusion causes viral marketing which is to maximize the advertisement with the minimum expenses. This marketing facilitates in influencing the consumers directly and changing their preference from branded to the non-branded cereals. The diffusion inhibitors of the off brand product are its competition from the already established products and the social constrains as people with high income might buy cereals of the brand to symbolize their status. Lack of investments and advertisement at a large scale as compared to the branded products might be a reason for hindrance (Strategic Marketing and Research Techniques, 2013). Recommendation of a Diffusion Enhancement Strategy The recommended diffusion enhancement strategy for the off brand cereal can be the use of the Bass model which is executed to estimate the time or pace at which the product will be gain its importance or growth in the market. It is an enhanced strategy as it is used for the future prediction of the sales of the off brand product in comparison with the branded cereals. The use of promotional campaigns especially the word-of-mouth promotion by the reference group helps the sale of the product. Moreover, income, price, quality, availability and easy accessibility of the off brand product as the substitute of a branded product can lead to the success of the off brand cereal (Wright & Charlett, 1995). Characteristics of the Product to Promote Advertising Campaign The key characteristics of the off brand cereal products to be featured in the advertisements campaign are its pricing strategy and the quality ingredients used emphasizing the organic procurement of cereal products from the farmers. The nutritional value of the product and its better worth to the consumer along with health aspects are the factors for promotion. Using kids for the advertisements will be of added advantage to showcase the high quality of the cereals. In addition, availability of different flavors and the packaging to attract the target market on the basis of the taste buds would be the key ingredients for success. Providing free gifts with the product would also be an aspect of promotion. Low fat and high nutritional value would be the key facets featured for the promotion of off brand products (Harris & et.al.). Determination of the Dimensions and the Promotion-Focused The dimension of the cereal product is based on the consumer and the social dimension. The product deals with the health of young kids hence the focus of the product should be to value the customer and on the merits of the product such as the quality. The promotion done is also based on the facts that it demonstrates the responsibility towards the society and the consumer consuming the cereal. The lifestyle and the income are the dimensions which are to be determined while focusing on the promotional factors (Alcalay & Bell, 2000). The promotion focused campaign for the off brand cereal product can be done by leaflets, using hoardings to display the product and its features to provide information to the target market and the reference group. The promotion can also be done in malls by arranging games for the children to attract them along with offering the off brand cereal to observe their reactions. This would be the best way to promote the product as they are focused on directly providing the cereal to the target people, subsequently the acceptance of the cereal would increase the sales volume. The promotion can also be done by providing free packets of the cereal in the schools where the target prospects are easily accessible. Moreover, packaging of the product is also a way to promote a product (Alcalay & Bell, 2000). Product Learning Needs In terms of involvement, the off brand cereal for the morning food has a low involvement. The reason for such involvement is the convenience for preparation for the products such as cornflakes and bread. The low price of the off brand to stay or enter the market assists people usually with low income to buy the products with less knowledge. The taste of the product and the different flavors available would be the sufficient information for the consumers to buy the product (Zaichkowsky, 1985). The strategy used for the consumers to rediscover the product is through regular advertisement in the cartoon channels with the a few attractive gifts with the product. Improving the quality of the product and marketing the product as a healthy food for the young children would facilitate in the growth of the off brand cereal. Impact of Lifestyle on Consumer Behavior The fast moving lifestyle of the consumers is making them to select foods which are readily available and require a less amount of time for preparation. Quality of the food and the flavors are the prior requirements of the consumers today. The income of the people and the economic condition of the individuals affect the buying behavior. The innovative lifestyle segment entails the group of people who try new products which renders a scope for the off brand cereal to derive its importance in the market (Krishnan, 2011). The purchases or consumptions depend on the need of the product by the consumer. The quality of the cereal is an important aspect of the advertisement which would facilitate to attract the consumer and increase the sales of the product. The low reasonable price of the off brand cereal would also be a critical factor that would increase the consumption level of the product. The advancement in the technology and the new methods of advertisements through the internet and games would help in increasing the sales of the off brand cereal as compared to the branded cereals (Krishnan, 2011). Evaluation of the Campaign and Conclusion The campaign executed for the off brand cereal for the morning breakfast had a great influence on the perception of the consumer and the reference group. The quality and the price were the characteristics of the products which were determined to be advertised in the campaign. The campaign was made efficiently to satisfy the needs of the customers. The effect of the advertisement campaign on problem recognition was that the customers had been efficiently made aware bout the availability of the cereal product. Moreover, the campaign facilitated to establish the off brand cereal amid the more established branded competitors. References American Path Finder. (2012). Population Under 18 Years by Age Universe. Retrieved from http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_12_1YR_B09001&prodType=table Alcalay, R. & Bell, R.A. (2000). Promoting Nutrition and Physical Activity through Social Marketing. University of California., 1-94. Fields, J. (2004). America’s Families and Living Arrangements: 2003. US Census Bureau, 1-20. Golub, A. & Binkley, J.J. (2005). Consumer Choice of Breakfast Cereals. Department of Agricultural Economics, 1-22. Harris, J.L., Schwartz, M.B., Brownell, K.D., Sarda, V., Dembek, C., Munsell, C., Shin, C., Ustjanauskas, A. & Weinberg, M. (2012). Limited Progress in the Nutrition Quality and Marketing of Children’s Cereals. Cereal Facts, 4-69. Krishnan, J. (2011). Lifestyle – A Tool for Understanding Buyer Behaviour. Int. Journal of Economics and Management 5(1), 283–298. Laszlo, H.J. (2008). The Role of Reference Group Influence in Consumer Behaviour. Theses of Doctoral Dissertation, 3-24. Strategic Marketing and Research Techniques. (2013). Demand Forecasting. Retrieved from http://www.s-m-a-r-t.com/SMARTForecasting.htm Tanner, J. & Raymond, M.A. (2012). Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making Process. Retrieved from http://2012books.lardbucket.org/books/marketing-principles-v2.0/s06-02-low-involvement-versus-high-in.html United States Census Bureau. (2012). Population Projections. 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