Introduce a New Product to a Potential Market - Case Study Example

Introduce a New product to Potential Market Table of Contents Table of Contents 2 Introduction 3 Market support 3 1. Communications 3 2. Strategic fit using Coles 3 2. Brand image 4 3. Price and promotion 6 3.1. Justification of the RRP 6 3.2. Recommendation for price promotions 7 Conclusion 7 Reference list 9 Introduction In the current study, marketing plan will be developed to create brand presence in Coles supermarket in Australia. It has been observed that the Coles were selling other products of goodness superfood. In order to boost profitability, Goodness Superfoods are planning to introduce a product in Coles. Marketing plans of the ‘Better For U! Wild Berries & Yoghurt Bars’ is developed in the current section. This study is divided into three different segments like the market support, brand image and price and promotion (Trainor, Krush and Agnihotri, 2013). 1. Market support In the current report market, support policies will be developed for “Better For U! Wild Berries & Yoghurt Bars”. It is an existing product of Goodness Superfoods and the marketing team is aiming to create brand stock in the 800 Coles Australian based supermarkets. Such marketing plan will be including certain plans to attract the customers of the Coles market. 1.1. Communications Goodness Superfoods are adopting direct selling approach and social media portals for promoting healthier snacking cereal bars in the Coles supermarkets of Australia. Direct selling approach will be targeting regular visitors of the supermarket stores (Cousins and Lawson, 2007). 1.2. Strategic fit using Coles The firm can use collaborative strategies with Coles supermarkets in order to advertise the “Better For U! Wild Berries & Yoghurt Bars”. Leaflets, bill backs and E-commerce site of the Coles can be used to attract potential customers. Apart from this, Goodness Superfoods is planning to use in-store promotional system that includes signage and digital displays outlining the features of the new product. Moreover, interpersonal promotion will be used to attract potential customers. Goodness Superfoods is planning to adopt the pre-mentioned policy along with sponsoring anniversary of Coles stores. Entire marketing plan of the firm will be completed within 16 months. 2. Brand image Goodness Superfoods is one of the major Australian breakfast cereal and fitness foodstuff producers. Their brand image is mainly outlining high quality products and tasty food products for the Australian customers. They are aiming to provide Australians customers healthy food grains. Nutritious breakfast range is attracting busy customers. Goodness Superfoods have developed their brand image with the help of natural ingredients which increases nutritious factors in the cereals and health foods offered by the firm. Therefore, it will create brand perception among the customers (Filieri, 2013). Goodness Superfood will get the advantage of their brands in promoting new cereal bars in the Coles supermarkets. According to Jensen (2013), brand image of the Goodness Superfood can increase their marketing plan success. In order to increase the awareness of Coles customers about the product, “Better For U! Wild Berries & Yoghurt Bars” existing brand value of organization can be used. Brand values can provide certain knowledge about features of the products. In the current context, brand image will be helping the firm in increasing the knowledge of the potential customers (Mu, 2015). In addition, exclusivity and obsession for the new product can be created with the help of existing brand portfolio and quality factors. Moreover, the product exists in other parts and markets of Australia, so more reliability is developed among the customers. Brand name of Goodness Superfoods will be boosting up the level of competitiveness of the product in Australian market. Goodness Superfood will get more market exposure and cost leadership in the new market diversification strategy (Kohn, 2005). However, the marketing plan of Healthier Snacking or Cereal Bars will be facing complexity in attracting the customers. The organization is facing challenges of reducing profitability in the Australian segment. Coles is one of the major supermarkets in the country and having higher customer arrival possibility. Diversifying market in the Coles supermarket will increase potentials of profitability (Simkin, 2000). Goodness Superfoods planned to introduce the “Better for U! Wild Berries & Yoghurt Bars” in the Coles supermarket. The USP of the product is its ingredients; super grain named ‘BARLEYmax’ is used in the product. Rich fiber helps users to become m ore fit all the day. Customers will be having the outstanding foundation of ingredients like fiber with having 25% lower sugar contents. According to many quality surveys, the cereal product got 4.5 Health Star Ratings out of 5. Department of Health of Australian government considered that high quality grains and prebiotics are used in the product in order to increase digestive equilibrium of the users. Diabetes is one of the major concerns for developing and selling any food product. It is observed that “Better for U! Wild Berries and Yoghurt Bars” is maintaining strategies and dietary standards set by Diabetes Australia authority. Henceforth, the product is planning to reduce the diabetic impacts on the customers (Westwood, 2011). Figure 1: Quality survey process (Source: created by author) Image attributes are collected from market survey; customers are able to report the actual experience and expected products features, quality and pricing. Further, accurate rate of deviations are reported. Mainly, the existing customers of the cereal bar products in the other markets are surveyed to gain insight on their expectation and perception about a product and actual experience of using the product. It is observed that customers of new Goodness Superfoods products are demanding because of healthy ingredients, easy to cook and economic pricing policy (Wood, 2003). The report will be helping in developing marketing plan for “Better for U! Wild Berries and Yoghurt Bars” in the Coles supermarkets Australia. From the survey, it is obtained that customers are mainly searching for various features in the product. It is observed that health or nutritious criteria are highly maintained by the product. Deviation of actual and expected health criteria reported with positive 21 rating. Goodness reported 5 deviations on the basis of fast cooked items. In addition, it is observed that new product recorded positive deviation from the end of snacks demands and money value offering. Thus, potential customers of Coles supermarkets can use the product as one of the major snacks items and effectively priced to meet spending capacity of supermarket customers. On the contrary, “Better for U! Wild Berries and Yoghurt Bars” is least innovative as similar products are present in the market. Customers expected more innovative features in the product but organization actually failed to provide more inventiveness. Moreover, it is a new product thus, customers have lower association with the product features and family influences are less for product (Zineldin, 2000). In order to introduce cereal bar in Coles supermarket, Goodness Superfoods must use the statistics of the survey (Trainor, Krush and Agnihotri, 2013). Such statistics can be used in the promotional campaign to attract supermarket customers. The product is popular among other parts of Australia and people will contrast or review the experience of existing customers. Thus, survey results can attract Coles visitors and healthy food consumers. It can act as word of mouth promotion (Mu, 2015). 3. Price and promotion Pricing is a crucial strategy for developing and marketing a new product (Jensen, 2013). Goodness Superfoods must design their products very well so that the possibility of earning profit and market sustainability increases. Pricing strategy for the firm must concentrate on providing high value for the money spending (Simkin, 2000). 3.1. Justification of the RRP Carton quantity of the “Better For U! Wild Berries & Yoghurt Bars” includes 20 packages each. Goodness Superfoods reported that producing cereal products for 100 stores will cost $3.20 per product. On the other hand, production for 800 stores is having unitary cost price of $3.10 in the Coles market. Sell price of new products in 100 stores reported as AUD$ 5.00, whereas, unitary sale price of 800 stores reported as AUD $5.49 (Goodnesssuperfoods.com.au, 2015). Therefore, profitability margin clearly differed in terms of amount of sales units. It has been forecasted that with the help of predetermined RRP 100 stores can generate nearly 36% on the sales. On the contrary, 800 stores can generate 43.5% profitability on sales. RRP of “Better For U! Wild Berries & Yoghurt Bars” is quite suitable for 800 stores segment (Goodnesssuperfoods.com.au, 2015). 3.2. Recommendation for price promotions Goodness Superfoods can use pricing promotional tools like free product with every purchase, economic pricing, competitive pricing, trade discounting, bulk pricing techniques and regional pricing for meeting vast numbers of customers Coles supermarket of Australia. Consumers will be provided with 10 grams free products with every 100 grams purchases and 500 grams free with every 1 KG box purchase. Coles super market will be awarded with 15% royalty of entire sales they will be making during the next 1 year of promoting product. In addition, Coles will be offered with 20% trade discount for storing the new cereal product in the Australian supermarket. Goodness Superfoods will offering Melbourne and Canberra supermarkets customers with 10 grams free sampling. Such pricing strategies can increase potential customers of “Better For U! Wild Berries & Yoghurt Bars” in Australian segment. Conclusion From the current study, marketing plan of Goodness Superfoods is obtained for their new product “Better For U! Wild Berries & Yoghurt Bars”. The product is present in other areas or markets of Australia but it is not present in Coles supermarkets. In the study, marketing plan is distributed into three different parts like Market support, Brand image and Price and promotional strategies (Cousins and Lawson, 2007). The firm is using high quality cereals to increase the quality of new product. Moreover, new marketing plan will be aiming to increase the global profitability. Gradually it can be said that developing marketing plan for new or existing plan will be requiring proper time framing, selection of communicational channel, branding and pricing strategies. Thus, diversification of market strategy of Goodness Superfoods is using economic pricing and social media promotion to attract customers from Coles super markets. Reference list Cousins, P. and Lawson, B., 2007. The Effect of Socialization Mechanisms and Performance Measurement on Supplier Integration in New Product Development. British Journal of Management, 18(3), pp.311-326. Filieri, R., 2013. Consumer co-creation and new product development: a case study in the food industry. Mrkting Intelligence & Plan, 31(1), pp.40-53. Trainor, K., Krush, M. and Agnihotri, R., 2013. Effects of relational proclivity and marketing intelligence on new product development. Mrkting Intelligence & Plan, 31(7), pp.788-806. Jensen, D., 2013. Your Personal Marketing Plan. Science, 21(9), pp. 257-259. Kohn, K., 2005. Idea generation in new product development through business environmental scanning: the case of XCar. Mrkting Intelligence & Plan, 23(7), pp.688-704. Mu, J., 2015. Marketing capability, organizational adaptation and new product development performance. Industrial Marketing Management, 35(6), pp. 117-125. Simkin, L., 2000. Marketing is marketing maybe! Mrkting Intelligence & Plan, 18(3), pp.154-158. Westwood, J., 2011. How to write a marketing plan. London: Kogan Page. Wood, M., 2003. The marketing plan. Upper Saddle River, NJ: Prentice Hall. Zineldin, M., 2000. Beyond relationship marketing: technologicalship marketing. Marketing Intelligence & Plan, 18(1), pp.9-23. Goodnesssuperfoods.com.au, (2015). Better for U! Wild Berries & Yoghurt Bars | Goodness Superfoods. [online] Available at: http://goodnesssuperfoods.com.au/better-for-u-wild-berries-yoghurt-bars/ [Accessed 29 May 2015]. Read More