Marketing Plan for Dessert Dreams - Case Study Example

Dessert Dreams Name Institution Course Tutor Date Introduction The notion of marketing is grounded on the foundation that companies need to first find out needs and wants of costumers before designing their products. Such a costumer-centered marketing strategy can result in higher demand for a company’s products and greater customer satisfaction following a purchase (Kotler, Keller, Brady, Goodmam and Hansen, 2009). Dessert Dream company needs to employ this strategy to develop its products if it is to experience success in this food industry sector. The marketing concept of Dessert Dream should be to attract people going to cinema and nightclubs. The traditional marketing mix also known as the four Ps (Product, Price, Place and Promotion), was introduced by McCarthy during the 1970s (Cadle, Paul and Turner, 2010). The general process of marketing includes the application of four variables in the context of the macro-environment of the firm while concentrating on the target audience. The firm has the power to control the marketing mix but don’t have the capacity to directly control its macro-environment. The main objective of Dessert Dream should be to develop a mix, for every product, which meets the needs and wants of its customers and gives it a competitive advantage in the market. Dessert dream should try to create marketing strategies using the marketing mix which will bring about sustainable competitive advantage resulting in long-term expansion and success. This report will document the best marketing mix strategies that Desert Dream need to develop for it to experience increased profitability. Product This marketing mix’s component involves the tangible goods as well as every service that is used to produce the end product. A product consists of a package of products or services which include the total offering (McDonalds and Wilson, 2011). In this case, the product will include low-fat desserts, waiters and cooks among others. The variables associated with the product decision comprise variety, quality, packaging, design, features, brand name, and supporting services (Larkin, 2009). Dessert Dream needs to offer a variety of low-fat desserts to its customers. Moreover, the company must offer high-quality low-fat desserts to customers so as to compete with its competitors in the market. Dessert Dream’s design should be elegant but simple to make it suitable for the young and middle aged people since they are the ones who often go to cinemas and nightclubs. The main features of the product marketing strategy of Dessert Dream should be low and reasonable prices as this will be quite suitable to its customers given that they are mostly students and middle class people. Dessert Dream also needs to design simple yet eye-catching packages that consist of specially made boxes containing information like nutrition and dietary facts, picture of the product and serving suggestions that it will use to serve their customers the low-fat desserts. Moreover, it should consider packaging generous portion that can be shared. A good packaging shows that a company offers more than simply a product. It also gives the impression that a good quality product requires a good package and shows the company care for the customers. Today, people have a tendency to evaluate the product based on the outer appearance and hence it is important to have an attractive design and slogan which can stay in the mind of people for a long period of time (Cadle, Paul and Turner, 2010). This product’s size is relatively associated with the advertising of the product. The product’s size has to be adapted to the income level as well as size of the customers. For example, if the customers consists of a whole family, then their order would be large than when a customer is alone (Johnson, Whittington and Scholes 2009). Hence, Dessert Dream should produce their product size as both regular and large. A brand name is very critical when it comes to marketing a firm’s products. Dessert Dream should work its way to the top to create a brand name so as to add value that their customers associate with their products. It should create positive brand awareness so as have the firm linked to the minds of customers. It should make sure that this firm would be the first to ring in consumer’s mind when it comes to low-fat desserts. Dessert Dream can establish a brand name by ensuring continuous products enhancement and development. It should offer high-quality and a wide range of low-fat desserts. In addition, the company needs to offer a wide range of services to its customers. It should offer exceptional service to customers such as high maintenance and good quality products. It should also consider delivering its products to its customers inside the cinemas and nightclubs. Price This is the value attached to a product. There are both monetary and non-monetary components of price. Dessert Dreams should develop a well-drafted price list for their low-fat desserts. This company should make sure that their prices are in line with the prices of other low-fat desserts in the market. The average price of a dessert in the market is $ 4. Often, the legal and political factors affect the pricing policies of a firm owing to the imposing taxes. Non-monetary elements of price include, for example, the accessibility of location and the time a customer can take to search and examine the product. If a customer has to travel for a long distance looking for the product then there are costs related to time as well as depreciation on the vehicle. Customers tend to associate a certain perceived price with the product and this have an effect on the buying and the satisfaction level of customers. Customers tend evaluate the benefits they receive from what they pay for (Pearce and Robinson, 2005). Thus, Dessert Dreams need to ensure that they strike a balance between price and quality for their consumers to consider their products valuable. The other variables that Dessert Dream needs to consider when developing their pricing strategy are discounts and payment options. The company should offer discounts on its low-fat desserts and this will lead to increase in sale. As regards the payment option, the company should utilize the payment on sight type of payment since it will be selling its products on sight. The mode of payment should be through direct payment with monetary methods that is credit card systems. Place This marketing mix’s component involves the distribution as well as logistics of creating a product and making it accessible to customers. The variables associated with the place marketing strategy and which are relevant in this case include location, type of channel, inventory, transportation, and coverage area (McDonalds and Wilson, 2011). Before deciding where locate Dessert Dream, it is critical to consider the costs of obtaining raw materials used to make the low-fat dessert. Dessert Dream should be situated in a place whereby the costs of acquiring raw material in terms of money and time are low. Moreover, it should be located in a place whereby its customers can easily access their products. In this case, Dessert Dream should be situated within universities, colleges, office urban areas and right beside nightspots since young people and some adults who go to cinemas and nightclubs are concentrated in these places. The major sale principle of Dessert dream should be that its inventory of final product will be at 0 labels. Usually, consumers like high-quality products and hence the company should not sell anything stale to them. Equally, Dessert Dream need a strong channel of marketing since it targets a large consumer range and has the advantage of establishing several branches within the city. The company does not need middle men since it will be delivering its products direct to customers and hence it will just implement a one channel distribution. This will ensure a relatively easy product sale across schools and universities. Moreover, the company should consider delivering the low-fat desserts to people at home or colleges so that they can eat in an environment they consider conducive before hitting the nightclubs which are usually noisy. The company should offer parking and siting services to its customers. Dessert Dream should target to cover a wide range of area and inform people about the benefits of eating low-fat desserts before going out so as it can gain respect of its target customers and the others. Promotion This marketing mix’s component comprise of all the communications related to marketing a product. The promotional strategy includes four components: advertising; personal selling; sales promotion; and publicity. Publicity and advertising are types of mass communication utilizing a range of mediums including newspapers, radio, television, magazines, the Internet and direct mail. Advertising is any paid type of mass communication using identified sponsors while publicity is a free of charge type of mass communication with no sponsor. Personal selling is a type of interpersonal communication funded by the organization. Sales promotion is a short period incentive meant to increase the purchase of a product (Johnson, Whittington and Scholes 2009). Dessert Dream should offer sales promotion such as free entry to cinemas or nightclubs for many students or even low class families. Dessert Dream should determine its promotion mix based on its target market and customers. The company will draw its customers from the local population and hence it is beneficial for it to use local media including radio stations and newspapers to advertise its product. The other advertisement method that Dessert Dream can use and which can be cost-effective is handing out leaflets to customers regularly so as to attract their attention to the business. Moreover, should consider developing public-relating programs aimed at promoting its product as well as enhancing its sales by allowing it to have easy access to major cities. In addition, the owner of this company should consider is having a face-to-face communication with his potential costumers informing them the health benefits of eating a low-fat dessert in an effort to multiply his sales. This is called personal selling. Dessert Dream should also use direct marketing, such as phone fax to interact its customers and potential customers. The introduction of the internet has offered smaller firms a cost-effective method to reach their potential audiences. The director of Dessert Dream can use twitter, Facebook, LinkedIn and other social media platforms to reach its potential customers. Moreover, it can create its own website whereby it can post a menu of the low-fat desserts varieties it offers and direct potential customers to where it is located. Having a menu on the company’s website can save time as it ensures that the costumers know what they want even before getting into the restaurant. The waiters should inform customers the different dessert that the company offers immediately they enter into the restaurant and help them in deciding which preference to eat by for example telling them the top 5 desserts that people enjoy eating. Conclusion Dessert Dreams needs to devise an effective marketing mix strategy as this is the only way the company can gain a competitive advantage in the market. The company should create a wide variety of low-fat desserts in order to meet the needs of consumers. It should come up with a price that is low and reasonable that will ensure it makes profit. Then, Dessert Dream needs to use direct channels of distribution to ensure that their customers receive the products at the right time and place. Moreover, the company should use personal selling, sales promotions and direct marketing to communicate its product to the consumers. If Dessert Dreams addresses the 4Ps of the marketing mix, its success can be guaranteed. References Cadle J. Paul, D. and Turner P. (2010). Business analysis techniques, 72 essential tools for success, the chartered institute for IT. Johnson G, Whittington, R. and Scholes K. (2009). Expiring corporation strategy with mystrategy Lab, Financial Times Prentice Hall. Kotler P. Keller K. L, Brady M. Goodman M. and Hansen T. (2009) Marketing management Person education Larkin, E. M. (2009). How to run a great hotel: everything you need to achieve excellence in the hotel industry. Oxford McDonalds M and Wilson H (2011) Marketing Plans; how to prepare them, how to use them, 7th edition John Wiley. Pearce J, A. and Robinson R. B. (2005) strategic management; foundation implementation and control 9th edition McGraw Hill Chicago. Read More