Marketing Strategy and Product Price

Questions: Develop a proposal for a global strategic marketing plan for a business chosen from the introduction to add two new products and/or services in which you do the following: Identify two new products and/or services for the company to add. Discuss three ways you determined that these products and/or services would be the most feasible and potentially profitable for the company to add. Explain one competitive advantage to the company that will be attained by offering each new product and/or service. Recommend the channels you would use for both mass media and social media. Justify why you chose those channels based on market segmentation. Determine the pricing structure based on the following points: consumer preferences of the real-world competition marketing analysis of the real-world competition Discuss the customer relationship management system you prescribe to track product inquiries and sales. Discuss the inherent risk(s) associated with launching the new products and/ or services. Discuss the risk(s) associated with not launching the new products and/or services. Answers: Introduction: The project identifies the various aspects of marketing function, Management of customer relationship on evaluation of feasibility of a business, entrepreneurial enterprise and marketing strategy. In order to understand these aspects in a pragmatic view, a restaurant industry is chosen. This is because this industry depends highly on its products and its customer services. A restaurant named Day Delicacy is formed with a business proposal so as to develop a strategic global marketing arrangement that has introduced one new product and a service strategy through which it expects to make a mark in the global market. The project also focuses on the possibility of negative and positive outcomes and a basic analysis of the product acceptance. About the Company: With an objective to provide healthy, nutricious and tasty food Day Delicacies was established. The purpose of day Delicacies was not only to make an impression on their customers with the quality of foods serviced, but also with their customer services. Along with profitability management it also aims to retain and attract new customers. Mission: The mission of Day Delicacies is to establish a good relationship with their customers with a premium quality of natural foods provided by them. The existence of the restaurant depends on the number of customers. In order to attract more customers the company has made its stores available in almost half of the USA with a great ambience for people to spend their quality time along with delicious food. Vision: The company visualizes its future as a leading global restaurant with menus of more than 200 types of foods available in each branch. With continuous innovative strategy and quality service by employing creative and efficient employees the company also seeks to establish itself as a good restaurant with a high level of employee satisfaction. The New Product Service: Day Delights: This is a special service that provides early morning breakfast and lunch for their customers, there will be home delivery of foods starting form as early as 5 am in the morning. The service not only ensures immediate delivery but also the temperature of food delivered. Choice Checker: It is a search engine provided in the online website of Day Delicacies, where the choice checker offers customers to select twenty exotic flavors for their product in any food category. And if the desired flavors are not available then the customers can provide a suggestion query in the website. It is now common trend in USA of having a strict healthy diet throughout the day. The world has become heath conscious, People are looking not only for good quality food but also healthy food that aids digestion (National Restaurant Association, 2015). Starting with alcohol to ice cream Companies, every company is putting great efforts into making their products natural and healthy. Today various mobile applications offer, to check peoples health and therefore people can control various health issues. The aim of Day Delicacies through day delight is to provide a healthy early breakfast and lunch starting from 5 a.m. (Lury, 2011). Three ways in which Day delights and Choice Checkers would be feasible because: A new concept in the market: The concept of delivering breakfast at ones doorstep is considered as a new concept in comparison to its competitors. It is a fact that consumers are busy and time is of the essence, with that in mind Days delight provides healthy breakfast and lunch (Griskevicius Kenrick, 2013). Location: The locations of Day Delicacies are in certain areas where the population is closer and transportation facilities are easily accessible. Time: the time factor is an important criterion which would ensure the customers are going to order more service and products for their daily consumptions. It is the duty of a seller of hot food to understand the value of time and quality of food (Shimomura Kimita, 2013). The same time the customers do not wish to have spicy and delicious heavy food early morning. Instead of cold leftover in the refrigerator Day Delicacies aims to serve their customers fresh hot foods. Moreover the service not only available in their residence but also at their place of work (Otnes Tuncay-Zayer, 2012). Competitive Advantage: Competitive advantage is the gain over extra benefit provided by one company in order to compete with another (Barney and Hesterly, 2010). Today companies invest highly on their strategic implementation of their innovative ideas. It provides an edge over a companys rivals to create more customer value for its consumers and shareholders. In the restaurant industry competitive advantage determines the sustenance of a restaurant (Hill and Jones, n.d.). Following the product or service differentiation the strategy of delivering packed hot breakfast to their customers is one of the competitive advantages of Day Delicacies over its competitors. Other restaurant chains serve deliverable foods after ten; their office workers who had to go to their work early in morning and who wish to have early breakfast would enjoy the service (Hassan Craft, 2012). Apart from that the freedom provided for customers to choose their flavors in any food product guarantees support to the innovative ideas of their customers. This attempt is not only to enable the customers have their choice of food but also to feel as a part of the restaurant (Reuvid, 2014). The service or product differentiation is achieved through providing uniqueness in their products. A unique service or product is hard to maintain because after a while it becomes familiar (Sanders Huefner, 2012). Channels for mass media and social media: A method that conveys information about a new introduced service or product is known as promotion. If once the target market is observed then it becomes easier to create and implement a promotional strategy (Hooley Nicoulaud, 2011). In order to inform customers about a new service or new product it is necessary to advertise the product with the help of social or mass media. The target audience for this promotion will be working people; student or college goers who do not get ample scope to do their breakfast (Kardes, Cline Cronley, 2011). The target audience for the Choice Checkers will be those who love to experiment with various culinary dishes. The channels for promoting the new services will be: Television: entertainment and infotainment channels. Social Networks like Twitter face book. Social Websites: YouTube, burp, blogging websites, travel and food websites. Print media Television: entertainment and infotainment channels. The entertainment and infotainment is generally followed by audience of all age group (Biagi, 2012). If along with business information channels and entertainment channels the advertisement is broadcasted then it would make an impression in the viewers mind (Bui, Huggins, Hwang, White Erbas, 2010). b) Social Networks like Twitter face book. Today the working population along with the teenagers is very much addicted to social networking sites like face book and twitter (Seward, 2015). Even celebrities are on network and creating a homepage and a special account for customer interaction would also enhance the relationship and will be able to provide required information. c) Social Websites: YouTube, burp, blogging websites, travel and food websites. Nowadays in YouTube a typical trend has been tracked where an advertisement of 1 min is shown in any video one wish to look for. This kind of advertisement would work well with the type of promotional strategy (Klapdor, 2013). Apart from that website like burp which provides a critical review of the quality of food followed by many food lovers (Hassan Craft, 2012). A review on the Choice Checkers would enhance the number of customers. Blogs of food critique also helps the customer to decide. Print media: travel and food magazine, general magazine, newspapers (entertainment and business sections). Print media which are followed in US like business journals and entertainment acquires a good number of viewers for advertisement (Blakeman, n.d.). Apart from newspapers, travel and food magazines will convey the two services of Day Delicacies to consumers who will have interest in healthy, Tasty, and delicious foods. Pricing Structure: Consumer preferences: based on the target audience their preference is analyzed. The target audience here is the working group (Spender, n.d.). The working or earning group is targeted for Day Delicacies because this group will be benefitted with this kind of service. They are generally busy to conduct their daily task (Pride Ferrell, n.d.). For customers with the desire to taste something new, Choice Checkers is provided. This means customers belonging to the different age group can afford quality healthy eating. Market analysis: The pricing strategy for Day delights will be medium targeting the incoming group affordability of their food. category degree Average Income of the group high demand for heavy food medium Expected days of service high Range of choice by the customer low Expected range of price Medium. The pricing strategy for Choice Checkers: For the choice checkers the target customers are younger generation, this type of food is not meant for daily service, moreover the exotic flavors are costly so this service would cost a little more than Day Delights. category degree Average Income of the group Medium, low demand for heavy food high Expected days of service low Range of choice by the customer high Expected range of price high The price discrimination is not based on the income level but the frequencies of available food. Depending on the response of Choice checkers the price would be decreased. Similarly strategy would follow in case of Day Delights. Customer Relationship management System to track product inquiries and sales: Customer relationship system which can be used for customer sales and inquiries will be via online. Online portal: a website that will be constantly monitored by the customer service section. The Facebook page and the twitter group would also collect feedback (Pires Stanton, n.d.). Helpline Service: phone numbers and directories will be provided to maintain customer complaints and orders. Customer Feedback System: A mobile application is provided so that the customer gets constant update about the service. Customer Survey: a customer survey must be conducted on a monthly basis so as to be aware of queries know any query and expectations customers may have. Inherent Risk of product launch: Day Delights: The customers demand may not be much: Initially the customer may not want to pay extra for making their breakfast. The concept of buying breakfast may seem to be irrelevant. Initially the concept will be a little Cost effective: the cost for initializing the strategy will be more because. The management have to keep in mind that people would buy things only when they will be cheap and reasonable. Customer acceptability will differ: the customer may not accept the fact that they actually have to buy breakfast, instead they could make instant food or have frozen food or even buy food from the cheap food store. A new product launch without a good brand name always suffers the risk of acceptability. Risk of taste and preference acceptability: the customer may or may not prefer the taste or the quality of food it is because healthy foods are not always tasty as Day Delicacy wants to provide healthy food and wants to make good quality as well so it may happen that consumer may not prefer the taste of the product. Delay and unanticipated cost: the cost which has been fixed for the service may become hard to maintain. In that case expert financial analysts suggestions are needed to be consulted which may result in more investment for the service launch. The projected sales may not bring satisfactory return on investment; the biggest risk that every product or service launch is being confronted by an organization is the unsatisfactory return on investment. Risk in economic terms for fixing price: the relevance of launching the product and the taxation to be charged for that may make the service more cost effective for Day Delicacy. Risk associated with not launching of new products: Risk of other companies gaining competitive advantage: there are chances that without launching a product Day delicacy may become just like another company with same product availability and no innovative strategy. The extent of risk is low yet competitors may get the advantage of launching new and innovative product. Risk of customer relation being hampered: the market competition is high and other restaurants always try to retain customers and welcome new customers, so they would try their level best to make more customers which mean Day Delicacy may lose its present customer. Launching a product mean making their customer believe that the restaurant is making effort for satisfying their customer. Hence the relationship would ruin if the customer feels that no new initiative is taken for satisfying them. Risk Analysis: For launching the services: Risk factors Degree of Impact Elimination measures 1.Low customer demand Low Advertising and promotion with a message conveying the importance of having healthy food at breakfast. 2.cost effective high Use of cheap yet good quality ingredients. 3. customer acceptability medium Market research to be conducted bout the product. 4.taste and preference medium At first make a review from the food critique or testers. 5.Unanticipated cost high Try to control high expense on the project with proper measures 6.unsatisfactory return on investment high Initially the company has to be optimistic with enough financial funds and backup. 7.taxation factor high This influence the price, so the price needs to be within the boundary. For not launching the services: Risk factors Degree of impact Elimination measures. Competitive advantage high Launching the product. Customer relationship Low Making customer service more effective. 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