Strategic Marketing Product Positioning - Essay Example

Analysis of FreshTec: Revolutionizing Fresh Produce Contents Contents 2 Introduction 4 Industry analysis 6 Adoption approach 7 Target audience 9 SWOT and PEST Analysis 9 Conclusion 12 Executive summary Introducing a new product in an already established industry is normally among the most difficult tasks for any entrepreneur. The process requires effective consideration of both thee product and industry features in order to position the product strategically in the market. FreshTec is one such companies that seek to introduce a new technology that they believe will revolutionize the farm produce industry. The company has developed a new packaging technology that must revitalize the market. However, just as with any other new product, the company faces myriad marketing dilemmas concerning the strategic placement of the product in order to increase its profitability. The report below therefore discusses several marketing factors that will affect the profitability of the company thereby advising on the best strategies of positioning and marketing the product in order to safeguard the profitability objective of FreshTec. Introduction Marketing is a function of management mandated with effective and equally extensive market researches with the view of determining, anticipating and satisfying customer demands. The marketing department is therefore one of the most fundamental departments in any organization since it influences the operations of other successive departments in the company including the production and administration among others (Clayton, 2011). Among the primary objectives of the marketing team is to satisfy the current market, grow the market by identifying the changing consumer tasters and discovering new markets thereby increasing the company’s market share. In order to achieve this, the departments must have an elaborate understanding of both the company and the industry thereby determining the numerous market factors that affect the reception of the product a company produces. FrshTec, a leading American manufacturer of agricultural equipment seeks to increase its market share thus profitability a feature that has motivated the marketing departments to carry out extensive research thereby developing a new packaging technology. The SmartPac technology promises realistic packaging solutions to farmers. The technology promises to increase the lifetime of fresh farm produce thereby providing farmers with the ability to transport their products throughout the world in search of new markets throughout the world. The company has been in the industry for some time. This implies that the company understands the intricate features of the market. However, just as with the placement of a new product, the company faces myriad challenges relating to market determination of the new product despite its efficiency and advantages. Among the tools that marketers use in positioning their products is the marketing mix, the tool provides marketers with a realistic view of both the market and their products thereby positioning their products in a manner that will increase the acceptance of product. Among the elements of the mix are product, promotion, price, place and profit among many others. The product in this context refers to the SmartPac, the packaging technology promises increased efficiency in preserving farm produce thereby increasing the longevity of the products. The technology is therefore timely and presents realistic solutions to most of the farmers’ problems. This implies that the product is appropriate and is likely to achieved heightened profitability in case the marketers carry out their roles effectively. Place refers to the actual market. FreshTec enjoys a large market owing to the fact that it targets the international market. However, this will require a larger marketing budget in order for the company to meet the high demand. Promotion on the other hand refers to the process of increasing the product awareness. The company must therefore carry out extensive media campaigns among other promotional strategies in order to increase the product awareness. An increased awareness further acts as civic education thereby equipping the target market with the appropriate information and knowledge of the product. This increases the demand for the product. Price is an equally important element of the marketing mix that influences the products market share. When developing the price of a product, a company considers the cost of manufacture and the cost of doing business among other costs related to the business. Additionally, the price of a product must further include the profit that the company seeks to make from the sale of the product. While the discussion above portrays the price as an essential factor in the marketing process, FreshTec admits that the price of its products is likely to deter the sale of the products. Apparently, the cost of the SmartPac box is higher than the cost of other standard boxes in the market; this may limit the product’s market share. However, with effective marketing the high price will not necessarily result in a dwindling market share. The marketers must concentrate on selling other features of the product while attaching more importance on the quality and efficiency of the product. This way, the consumers are more likely to forego the high cost and purchase the product with the hopes of capitalizing on its longevity and efficiency of the product. Industry analysis Agriculture is the largest sector of the global economy. Governments all over the world continue to formulate and implement policies that seek to make their countries food secure through agriculture. Diversification within the sector include the production of fresh farm products such as vegetables and fruits which are some of the products that enjoy high demand but also present farmers with more conservational challenges as they market their products. Each region throughout the world prides itself in the production of different farm produce. The large industry is therefore an advantage for any company that seeks to either manufacture or sell cost effective products that promise increased efficiency to the farmers. Packaging is an essential aspect of the market that influences the size and profitability of the industry. Farmers from regions throughout the world seek to transport their produce to different parts of the world but face myriad packaging and transportation challenges especially in the production and sale of fresh farm produce. FreshTec, a company that operates in the manufacture and sale of packaging produces therefore enjoys a large and equally comparative market as it seeks to intensify agricultural and commercial activities throughout the world. An effective product and marketing team should strive to influence social changes and trends in the industry. FreshTec seeks to achieve this through the introduction of its innovative products including current SmartPac technology. Among the external industry factors that influence the operation of FreshTec include the large size of the target market. The company seeks to distribute its products throughout the world with a large interest in the developing world. This implies that the company must revamp its marketing strategy in order to infiltrate the market. The company must employ effective marketing strategies in order to position the product especially in the developing countries in Africa. The high cost of the product for example is likely to limit the purchase of the products. However, the company must employ specific strategies in order to make the target market overlook the high cost of the products. Competition is yet another external industry factor that will affect the profitability of FreshTec. As the case portrays, other standardized packaging boxes in the market are cheaper. This implies that the industry has other traditional packaging boxes. The manufacturers of such boxes are likely to adopt the technology that FreshTec seeks to launch thereby heightening the competition in the market. However, FreshTec enjoys increased innovation and being the first company to introduce such products will scoop the market. This provides the company with a comparative advantage. FreshTec will therefore position its new product strategically in the market thereby increasing the profitability of the product. As explained earlier, an effective marketing team should strive to influence social changes in the society, FreshTec seeks to achieve this by championing for a shift in product packaging and preservation by providing farmers with an effective product that will increase the longevity of their product thereby enhancing the transportation of the products to far-flung markets throughout the world. Adoption approach The adoption of the new product by the market will influence the company’s profitability. This implies that the company must employ every possible marketing strategy in order to ensure that the market adopts the technology. Among such an effective approach is to attach more importance on the quality that the product seeks to introduce. The marketing team should improve the product awareness strategically while portraying the effectiveness and efficiency of the product. Among the features of the product is its sustainability, the packaging product is energy efficient owing to the fact that unlike refrigerators, it utilizes efficient technologies most of which do not require electric power. This makes the product appropriate even in the underdeveloped parts of Africa where farmers would want to transport their products but lack access to electricity and refrigeration facilities. The way, the marketers therefore position the product as an efficient and realistic solution to most of the challenges that farmers in underdeveloped parts of the world face. Additionally, the company must carry out extensive civic education alongside the promotional campaigns that they will run. This way, the marketers educate their target audience thereby improving their demand for the product depending on the features that the civic educators will present to them. Through civic education, the marketers increase information on a new product without necessarily releasing vital information to the competitors who would steal the idea and refurbish thereby introducing their own products. Other effective ways of introducing the product effectively thereby improving its adoption in the market include corporate responsibility. The company recognizes the fact that most of their target markets are underdeveloped parts of world. The company can therefore carry out effective social responsive investment mechanism that will help improve the societies besides improving the demands and media portrayal of the products. Through strategic social corporate responsibility initiatives, the company will earn free airtime from the leading media thereby marketing its products. This way, the new technology is likely enjoy unparalleled access of the market. Target audience The report targets myriad audiences with the marketing team developing appropriate information for each target group. Among the potential audience groups that the company targets include the farmers, brokers and retailers, each of these groups are fundamental in the distribution of the products thereby contributing to the success of the products. Farmers are at the end of the chain and are therefore among the most important target group. Farmers will use the product in their daily operations, this implies that they stand to either benefit or incur loses based on the performance of the products. Additionally, in case the farmers embrace the technology and demand the product in bulk, the company and the other intermediaries including the brokers and retailers will have increased activity and profitability. The company must therefore appeal to the farers with the view of influencing them to purchase the products. Retailers and brokers on the other hand are business people who will make their money by distributing the products. The appropriateness and usefulness of the product to the farmers will influence the profitability of the two intermediaries. However, the two are equally important in enhancing the profitability of the company. The two intermediaries contribute to the products’ infiltration of the market. As explained earlier, the California based company cannot access the global market on its own without the assistance of the brokers and the retailers who operate in the different countries thereby facilitating the company’s market reach. The FreshTec must therefore appeal to both the retailers and the brokers since some of them run parallel product promotions thereby increasing the products’ market share. SWOT and PEST Analysis SWOT and PEST analysis are two vital tools that help the marketers understand both the industry and the product thereby developing effective strategies to position the product in the market. SWOT analysis investigates the strengths and the weakness of the product that are likely to influence the product’s market share. Additionally, the tool further investigates the opportunities and threats that emanate from the market and are likely to affect the product’s profitability. PEST analysis on the other hand investigates the political, economic social and technological factors that are likely to affect the profitability of a product. The two tools therefore provide marketers with unparalleled access of the market thereby influencing their marketing strategies with the view of cushioning the company from incurring loses. Among the strengths of the SmartPac are its non-reliant on electric power and large size. The fact that the product does not rely on electric power and is portable makes it an efficient product and a necessity for most farmers who produce fresh farm products such as fruits and vegetables. The product is sustainable and therefore appropriate for use in the underdeveloped parts of the world such as parts of Africa, Asia and the South America. Most of these regions rely on agriculture, which is the largest sector of the economy in the regions. The product will therefore become a necessity in the region since it addresses some of the factors that affected the productivity of the industry in the region. However, the product is more expensive that other traditional packaging boxes in the market. The high price of the product is the only weakness that may affect the adoption of the market. However, with effective marketing strategies the target market is likely overlook the price that is commensurate to the products high quality and usefulness. Among the opportunities that industry presents to the new product, include eth large market and the fact that the technology is new. The company targets the global market. Such a market is so large that the company will require effective strategies in order to meet the demand that is likely to arise from the market. The large market therefore minimizes the threats of underperformance since the company is likely to determine an insatiable demand from any part of the world. However, the large market further presents intense competition from both the local and international companies priding themselves in the provision of different packaging devises. Furthermore, some of the products are cheaper than the SmartPac a feature that is likely to intensify competition for the product. As discussed above, agriculture is the largest economic sector in the world with different governments motivating their populace to embrace different agricultural technologies. Among the political factors that are likely to influence the market for the products include the need for countries to increase their food security and to intensify commercial activities. Such political factors will influence the demand for the product that provides realistic solutions to such factors. The same applies to the economic factors that are likely to affect the profitability of the product. Agriculture is a fundamental sector of the economy. Any product that seeks to provide farmers with increased productivity is a desirable product that the market is likely to appreciate. Intense integration coupled with the development and sue of social networking sites are vital social factors that will affect the marketing of the new product. Such factors increase the market for the products since they make marketing both easier and cost effective. Through such factors, the pubic share information and trade ideas. This implies that the populace is likely to share information about the new technology through the more trustworthy word of mouth type of advertising thereby improving the reputation of the product. Social media provide marketers with dedicated access to the target market thereby sustaining an interpersonal communication among themselves. Technological advancements on the other hand influenced the development of the new product. This portrays that both the manufactures of the products and the farmers throughout the world appreciate technological innovations that help improve the quality of produce thereby increasing their profitability. The new technology that FreshTec introduces seeks to address various technological factors that affected the quality and market of fresh farm produce. This way, the product is likely to enjoy a larger market thereby sustaining the profitability of the company. Conclusion In retrospect, SmartPac is an appropriate product that seeks to provide solutions to most of the problems that fresh produce farmers faced in the past. The product permits farmers to pick their fruits while ripe thereby improving the quality of such products. However, just as with any other new product, SmartPac requires effective marketing strategies in order to increase the market’s awareness besides an equally important and concurrent civic education in order to improve the usability of the product. The company must therefore employ appropriate marketing strategies in order to position the product appropriately thereby improving the adoption of the technology. This way, the company increases the productivity of the product. Reference Clayton, C. (2011). The Innovators Dilemma. Englewood: MGMA Press. Read More