An Idea for a Novel Functional Food Product - Essay Example

FOOD Market share The company making ginseng ice cream can expect a niche market share, so it has to target appropriately. “In the analog economy,most companies operate three different businesses: a product innovation and commercialization business, a customer relationships business, and an operations and infrastructure business” (Kotler, et. al, 2002, p. 22); in the new or digital economy, these three different businesses are still present, even if they must be dealt with more dynamically than in the past. And build relationships based on teamwork, as often as not, rather than the concept of competition. So this is an opportunity, but there is also a lot of competition in the external setting, so this gives a threat. Target market The ginseng ice cream store is going to really target two main demographics: busy mothers and students. In terms of busy mothers, this target market may want different things from the product than students for any number of reasons. First of all, students are buying the product directly for themselves, while busy mothers are buying the product for their offspring. This should lessen the product side of the marketing mix in terms of the students’ individuality, and slant it more towards the mother’ good sense. Nutrition and value should be highlighted in this product line, but since the product is ultimately fun for children, fun should also be emphasized. Many busy mothers shop with their children, and children often know what they want and how to get it. The core strategy of the ginseng ice cream company in terms of value proposition is to focus on the value of strong personal selling and attention to advertising and cost-effective leadership. “The goal of advertising is the same in any country” (Etzel et. al, p. 558). In an atmosphere where teamwork, leadership, and creativity are valued, this universal message can be put through with more facility in terms of employing appealing marketing strategies. The ginseng ice cream shop will focus on a specific target demographic and will market effectively in order to get its ginseng ice cream out in as many channels as possible, thus increasing revenues. One strength is in the customers: wherever they are, and they also expect to have a convenient and efficient framework there for them. It is part of an individual’s responsibility to help to provide this framework in a spirit of consideration. In terms of weaknesses, there could be a lack of clarity to marketing objectives at the ginseng ice cream store. Packaging and ingredient claims There are two ginseng ice cream product lines, each with individual characteristics that will appeal to the given market segment. On the packages, a simple list of ingredients will show milk, sugar, cream, eggs, and ginseng. Ingredients must be grouped in a way that is meaningful to the future profits and growth of the company, in terms of its ability to find out what the different segments want and provide it. Therefore, this product line should be aimed at the consumer, not the purchaser, but should have the trappings of sense and value so that the purchaser does not mind buying it for the consumer. For the ginseng ice cream store, this will be reflected mainly in packaging and product presentation that highlights, at the same time, the healthy attractiveness of the ginseng ice cream to the mother, and the fun factor to the child, without any sort of misdescription. “Misdescription can occur in many forms, from the undeclared addition of water or other cheaper materials, or the wrong declaration of the amount of a particular ingredient in the product, to making a false statements about the source of ingredients i.e. their geographic, plant or animal origin” (Food, 2010). Since the ginseng ice cream uses simple ingredients, this is less of a problem. Packaging can be differentiated to segments, with premium pricing available. Placement has been mentioned in terms of vending machines as well as other channels. Ultimately, the company should employ product positioning along lines of customer segmentation to reach groups who are likely to spend money on ginseng ice cream. This needs to be done in terms of two segments for target marketing, individual buyers and representative buyers. The next step in product positioning is to determine how to convince these segments that they will be making a wise decision in buying this particular kind of ginseng ice cream, which is better than the competitors’ choices, and that they can rely on the company to meet their needs. To do this, one needs to keep in mind that in terms of the marketing mix, there must be a balance of customer segmentation and product segmentation. Labeling The core strategy for cost effective value at the ginseng ice cream store involves labeling: labeling could be effectively linked to promotion using interest venues. For example, at the retailer level, services and products could be offered in promotional campaigns and distributed at select pubs, theme parks, and restaurants popular with the target market demographic. Another important and potentially cost-saving distribution channel for this market could be the vending-machine. The company could work with new technology that is developing in this area. Promotion could continue through this venue, and also in the abovementioned restaurant and pub introductions, as well as traditional avenues of print and television media. In terms of promotion through labeling, as mentioned, the consumer or child of the busy mom is the target. Children are an important target market. The promotion strategy should focus on advertising almost exclusively, since personal selling is less of an option and sales promotion is limited to the purchaser. The advertising should be mainly in the form of labeling aimed at the consumer, preferably using the bright colors and anthropomorphic animals popular with children. A few prime-time spots should also be included, however, to keep the purchaser in mind as a specified target of promotion as well as the consumer. Evidence Many believe that ginseng promotes health and relaxation, and eases stress. However, it is not regulated or mandated a s a drug, and is mostly available as a herbal supplement and cooking ingredient. “Ginseng has not been evaluated by the government for safety, effectiveness, or purity. All potential risks and/or advantages of ginseng wort may not be known. Additionally, there are no regulated manufacturing standards in place for these compounds” (Ginseng, 2010). There is no clear evident study that shows ginseng can do harm to people in either target market category, so the promotion seems to be ethical. More scientific evidence is needed when it comes to non regulated herbs and supplements. REFERENCE Ailloni, D. (1998, March 16). Marketing by any name is still about sales. Brandweek. Kotler, Philip, Jain, Dipak C., and Suvit Maesincee (2002). Marketing Moves: A New Approach to Profits, Growth, and Renewal. Boston: Harvard Business School Press. Etzel, Michale J., Walker, Bruce J., and William J. Stanton (1997). Marketing. New York: McGraw-Hill. Food Labeling (2010). http://www.food.gov.uk/foodlabelling/ Ginseng—medical facts (2010). http://www.drugs.com/mtm/ginseng.html Read More