Thursday, December 12, 2019
A Product Market
Question: A product is brought out to the market; the offer must be managed effectively to allow the consumers get value from the product. Explain. Answer: Immediately a product is brought out to the market; the offer must be managed effectively to allow the consumers get value from the product. The producer of a product will be able to achieve the set objectives as well as sustaining the offering in the marketplace only when the active management is followed. In the process of introducing the product to the market, and observing an effective management, there are technical decisions that have to be made more so in the process where the product if being taken to the global market. Before making the commodity Global, a company is expected to have evaluated and taken note of the factors that are found in the external environment such as the laws and regulations, competition, values and the market needs. There is also need to find the most appropriate expertise that will successfully make the launch of the product in the foreign market. In this paper, the central theme is to file a proposal that my company would best follow to introduce a new healthy on the go cereal product to the market. This will be on behalf of the management a grain food and baking mixes market in the city of Sanitarium, Australia. The new cereal to be introduced is the Weetabix cereal that comes out as an attraction to new users. Literature Review According to a survey conducted by the business analysts in Australia, the new cereal is a product that can be placed into the sub-market of the cereals that are ready to eat that is also seen to be among the major components of the overall market of the cereal food and baking mixes. The market research that was done by ibisworld.com.au has been found pointing out that the cereal industry in Australia that contributes to a gross of revenue amounting to almost three billion dollars. It has also been seen that from 2007, the cereal and baking mix industry have indicated a growth that is expected to span a rapid increase in the future where the consumers are expecting to come across a healthy option that will allow the fight the obesity pandemic. According to previous literature, the industry in Australia falls in an oligopoly market under a mature life cycle stage in the market ladder. Insights have also suggested that the cereal market in Australia will be in future be influenced by t he highly rising population awareness of the healthy eating and obesity epidemic (Kumar, 2010). According to the website wikinvest.com (2012), Kellogg's is robust and commercially considering the sales that were recorded in 2010 out of the known billions. They have also been seen to have the strong tradition in the Australian households and are also well recognized as a brand in the state. Research has proven that the major strength of the industry is in the resources considering that they have manufacturing plants in several countries that broaden their distribution range reaching across the globe to more than 180 countries. According to research in the industry in Australia, uncle Toby appears to be the leading in the oats as a firm dealing in the breakfast cereal markets due to the well-known and trusted brand in the country's households. The manufacturing of the company is said to be based on their local market that allows the business to create and promote their customer relationship. It is as well considered as their weakness because it has been seen to have limited the c ompany to the local market and is yet to test their markets globally. In the available categories of cereals in the market, sanitarium has been seen to be promoting the healthiness of Weet-Bix that comes as a target to the athletic boys and personnel who are the most people who come under the energy junkies segment. Research has proven that Australia has been considering the Weet-Bix a favorite cereal for over 40 years, and it has been known as the only cereal brand to the breakfast for the country's soccer team. Sanitarium has also appeared not to be renowned for being enjoyable tasting cereal. The chances involved the improved alertness and demand for the healthy consumption. Among the discovered fears, the major contender's brands cereal replacements due to the precooked food in nature and the cheapest home-based cereals offered in Coles Woolworths (Kumar, 2010). Research Question What are the best ways sanitarium cereal stores could employ to introduce a new healthy cereal product to the market? Aims and Objectives of the Research Gaining the highest market share that will be the competitor in the industry within the shortest period possible. For this to take place, the firm is supposed to create an attractive offer to the customers by the marketing mix so as to attract more and more consumers. To make the most healthy and nutritious cereal where the clients of all types would enjoy eliminating the possibilities of them thinking of their health risks and providing them with the energy that is needed at the beginning of the day. To find ways to half the gap of market share between Sanitarium and other cereal stores in the international marketplace. To help sanitarium become the market leader in cereals To suggest the most appropriate ways a company could follow to lead in becoming the best global To make our company the most admirable producer of the most broadly consumed cereals at most of the hotels and resorts across the world shortly. Global Survival Strategies The survival of the company in the global level would need the management to develop such strategies as; Forming an appliance with restaurants and hotels to allow the tourists to start to recognize the brand and always remember it. Two, there is a need for a reliable infrastructure in the field of information technology that is to be worked with. It will in turn help in the distribution of the available stock on time. Another significant factor is to keep the primary pricing as low so that the rural residents would begin purchasing a product. Also, it is recommended that the company have a minimum of two warehouses that would be used for the storage of their products to minimize the chances for distribution delays. Methodology The research is objected to using various methods to come up with the most appropriate way that the company would use to go global. First, the management would be advised to use question sires that will be distributed to a group of people around the country aiming to find their opinion about the new cereal that would be introduced to the market. In the questionnaires, there would be questions that would aim at finding the areas that need to be improved in the new product. The mixed reaction to the responses to the questions would assist the management figure out where there needs to be improved instantly for the consumers to love the product more. This would involve a quantitative method to a sample size of approximately 10 percent of the market population. In this case, it will be a situation where the questionnaires would be distributed to some individuals and the responses collected and sampled qualitatively. As such, the feedback that would be used to analyze the market would be a more appropriate and efficient. The company could rely on the customer's opinion from the answers from the questionnaires (Kumar, 2010). Analysis The data collected from the research would be analyzed on the market strategies. The main reason for the analysis is to allow sanitarium to come up with the best way to introduce the product into the new market. The marketing strategies involve some different factors that are believed to be the most considerable in the commercialization of a product. Target market From the research, it has been noted that the market target today appears to be the youngest generation. It is an opening to the company as we could use this as a lead to the introduction of the product to the new market. The target is mainly the athletes who are known to be in need of breakfast to support them whole day and during their sporting activities. The mature market target for the business is rather seen to include the adults ranging from the ages thirty years to forty. The target could, however, be divided into the groups that comprise of the mothers with children. The other category is that which entails the career-oriented adults who are concerned with the healthy and high-quality foods. The mothers are figured to be buying the products, not for their sake but the good of their children and their families. The adult in the athletics career seems to be working in an environment that revolves around a busy lifestyle. These individuals are seen to be stereotypically single and are found to be earning more than enough in the efforts to supporting themselves (Rezaul, 2012). Marketing mix Marketing mix constitutes to the real end product of the producing company to be sold to its targeted populations with the cost market worth of the product, the market regarding where to sell the product, in other words, we could say the accessibility of the product to the consumers and finally the marketing. The marketing here in bold is the way to brand the product in such a way that it will appear appealing and attractive to the customers and various ways to make promotions for it to acquire the desired consideration to the consumers and consequently selling the product (Butuner, 2016). Product A product can be tangible or intangible in aspect; a tangible is a physical ting that can be seen and touched which comes as goods while the intangible product is in not seen or felt and so it is a service in nature. The product is constituted by goods and services made available by the company to consumers in target market in broad concept. In our case, the result from the sanitarium company is weet-bix cereal. The product is attributed to a range of components so as to be a subject of marketing. These components include variation, quality (market mix), types, packing, etc. for the weet-bix cereal; the major cog of the product falls in quality, trademark name, and packaging. The integral component to put into account is quality and the emphasizing the product's premium position (McGhie Mcghie, Austin, 2012). Cereal should be nutritious and healthy. Branding name again an aspect for sanitarium will employ to promote the cereal. Branding is the pinpoint to penetrating into the market share. The ease to have the cereal get to communicate effectively by itself to the consumers will not only attract them but also make them loyal to weet-bix and therefore making them show satisfaction towards its taste. Branding of wee-bix cereal should not only be to produce a bowl of cereal but also get to offer the customers a whole breakfast cereal familiarity. Some research done by various marketing gurus have depicted that smell and sound have got a distinctive way to customer's attraction towards a product. The entire process of buying and putting in the knowledge is to come up with the best recognition of branding. Product grouping is categorizing a product in a wider range of product classes available within the product market. A product's type is categorical in identifying and bearing in mind its use and features regarding products at a sight in the market and the way they are classified. Weet-bix cereal can in broad extend be considered as a food production and can as well be drawn as the product formed from processed food, grain and corn product and eventually a breakfast cereal. Weet-bix cereal is made up of grains that are processed then dries and it, therefore, fits the category in good health (Hogeforster Baltic, 2012). Price The amount of money paid for a product by the customers is what is said to be the product's price. Pricing strategy is the planning and acting upon the plan of what the amount of money to tag onto the product from the customers upon selling. Pricing is a unique strategy as it plays a significant role in reviewing the performance of a product within the market. Pricing a product too little tends to compromise the profits hence the perception that the product is invaluable while pricing too high again will compromise the sales of the good. Therefore, pricing should strategically assure that correctly priced in accordance to live cycle stages of a product that changes the pricing strategy (Alexander, 2008). Value-based, cost-based and target pricing are the main branches of pricing. Value-based pricing is split into binary kinds: good value assessing which provides for right constitutes of quality moderately priced and the other is the value added pricing under which primary cost charge comes in place and the value adding feature is then attached to the product. Manufacturing and marketing of the product also come at a cost for the product to be considered, the level of markup calculated and charged the cost-based pricing for the product at hand. The target profit pricing entails coming up with an aimed level of profit and strategically pricing the product for that reason with the intention to achieve the set profit target (Alexander, 2008). Value based pricing takes into account the costs drawn from the value providing to the customer; Sanitarium will borrow the idea of using the value based pricing to price weet-bix cereal. A good value pricing seemingly provides for an excellent way to creating quality and value to a customer and in return receive value in a measure. Value-added pricing will be employed additionally to be part of endeavors in promotions in conjunction with various products later on, like a free cereal coming with a cereal pack. At the introductory level, a well-laid policy for the penetration to the market will be considered and do away with skimming as the objective is gaining the market share and performing mass promotion. Moderate or low price supported by good promotion will consequently see customer changing over or testing the new puffed up product. This strategy will ensure that a considerable market share at the sanitariums can develop upon. On trying out the product, Sanitarium's responsibili ty is to affirm that the customer likes and loves the sense of taste, marketing mix, and value so as to make them cross over to the new-fangled product. Costs may then be raised gradually eventually (Beri, 2013). Weet-bix will not be the only cereal in the market, and therefore it will be challenging other cereal types on a permutation of price and non-price factors. The price here will be the distinguishing factor as it will be the orbit of the competition. However, there should be other factors that are significant to propel the competition as well. Chief ones would be the market mix of the product and promotion. The two factors stand out significantly in the account of pricing when coming to the customers purchasing the cereal. Sanitarium would require gaining an advantage by proposing to the tourist market a local taste with dynamism and enthusiasm and bid the domestic market desirable quality and nourishment at the reasonable price (Beri, 2013). Place Place strategy speaks of the process of developed reliable and in effect way of keeping and supplying merchandises and products, distributing them and availing them to the customers in the market. This is so important because if a product is not available to the customers, then it is considered useless. It is reasonable enough to avail products to customers as flowingly as possible with the zeal to generate lowest charges and making greater sales return by selling the manufactured products to the customers. Products should be easily accessed by the customer because of the intensity of competition. A customer can only buy what is easily available in case of similar products in competition. Sanitarium intends to be manufacturing and selling the Weet-Bix Bites to various retailers in the order of; Supermarkets, Retail Convenience Stores, Independent Food Stores, and Discounter (Galal, 2013). Sanitarium's method of selling the product is mainly via retailers and local wineries. The product is readily obtainable wherever a breakfast is served like in; cafeterias, tourist resorts and inns too. Middlemen the pinks in the distribution chain of the product. They can be sellers who sell merchandises in confined binges, traders that vend the manufactured goods in unpackaged at small amounts to the retailers as well as added customers. Distributors who supply product to the wholesalers and the retailers and also to other big consumers, charters who are sovereign businesses and operate a particular brand and pay the fee and finally representatives sell products and receive a commission on the trades. For Sanitarium, retailers serve a pivotal role as that is where customers purchase cereals from majority getting them from the supermarkets. Furthermore, it's a major exit for all cereal brands too (Butuner, 2016). There can be numerous chains of dissemination as well. Transport by road will be the simplest where a logistics sector or maybe a firm carries goods to distributers, wholesalers, and retailers. The goods can as well be transported by air, sea or even by electronic means. However, the most reliant are the sea freight service, cargo reaches storerooms, and automobiles from the third party or Sanitarium's private transit the goods to the wholesalers and retailers. This choice is the best as cereal is simply a produce with considerable long shelf life (Butuner, 2016). Promotion Promotional strategy is the channel for marketing and selling of the product to customers. Promotion strategy constitutes with; advertising in the form of nonperson form computation through the use of radios and TVs, public interactions that involve links and related to the organization and the community to vend produces and also come up with trademark awareness. Sales campaign: These generate sales within a short through promotions like coupons, personal selling: is an individual selling of a product and straight mailing: which is mailing by hand so as to sponsor a product jeering info and highlighting the rewards (Schmid, 2013). The advertisement will be made as a way of communication by advertisements via different possibly construct a marque mascot as well that will be attractive to children. The methodology is invited by also opponents like Kellog's various cereal lines. Also, public relations and direct marketing will be other ways of advertisement. This will well be thru by tagging tourism and native culture links on the product's packing and promotion. This way, Weet-Bix cereal will have an edge in Austria as it will be set apart from competitors.Customers will get to hear the information and promotion regardless of whether or not they require to; this will be a push strategy employed Sanitarium example being the unwanted e-mails and also postal mails. An attraction strategy will allow customers to pull the information at their wish basing on their requirement and convenience. Sanitarium will take into consideration both methods majorly emphasizing on the pull strategy as it wouldn't want to get into t he customers; nerves by irritating them with annoying commercials and advertising but just lets the customer pick to accept and go into an advertisement (Schmid, 2013). Control and Evaluation Method To be ascertained that the business has achieved a desired and expected marketing plan, the assessment of the scheme at hand will be done by keenly surveying the progress of the sales in the international market. In the instance where the business generates including revenues, apparently the marketing plan would be considered to have been successful. The Sanitarium can as well control the prosperity of the firm by Dropping cost, increasing output and keeping quantity margins on a budget. Conclusion Weet-Bix cereal has an attractive and hopeful target market with the Australia and taking into account that it is trailing its leader Kellog's, Sanitarium requires to put in place an appropriate marketing mix and strategies to acquire its desired purposes. In the market mix, the product needs to be of upright quality and nutritious enough as well as appealing and available whenever needed. The pricing approach should be value oriented as this will give rise to profits from reasonable charges provided by the customer. The promotion has to be spontaneous if Weet-Bix cereal has to penetrate the market by creating immense brand recognition and equity. Advertising and public relations, upholding tourism and also providing the exceptional market gift. These efforts will no doubt Weet-Bix cereal leaders and also achieve marketing objectives in a specified period. References Kumar, P. (2010).Marketing of hospitality and tourism services. New Delhi, India: Tata McGraw Hill Education. Blythe, J. (2009).Key Concepts in Marketing (Marketing). Sage Publications. Codita, R. (2011).Contingency factors of marketing-mix standardization: German consumer goods companies in Central and Eastern Europe. Wiesbaden: Gabler. Katz, R. L., McKnight, L. W., Vaaler, P. M. (2002).Creative destruction: Business survival strategies in the global Internet economy. Cambridge, Mass. [u.a.: MIT Press. Rezaul, K. M. (2012).Strategic and pragmatic e-business: Implications for future business practices. Hershey, PA: Business Science Reference. Gordon, G. (2011).Lean labor: A survival guide for companies facing global competition. Chelmsford, MA: Kronos Publishing. Madar, D. (2009).Big steel: Technology, trade, and survival in a global market. Vancouver: UBC Press. Schwartz, R. H. (2002).Judaism and global survival. New York: Lantern Books. McGhie, A., Mcghie, Austin. (2012).Brand is a four letter word: Positioning and the real art of marketing. Charleston, South Carolina: Advantage. Hooley, G. J., Piercy, N., Nicoulaud, B. (2008).Marketing strategy and competitive positioning. Harlow, England: FT Prentice Hall. Brinckerhoff, P. C. (2010).Mission-based marketing: Positioning your not-for-profit in an increasingly competitive world. Hoboken, N.J: John Wiley Sons. Kaufmann, H. R., Panni, M. F. A. K. (2013).Customer-centric marketing strategies: Tools for building organizational performance. Hershey, PA: Business Science Reference. Schmid, V. (2013).Branding, positioning and segmentation at volkswagen. Place of publication not identified: Grin Verlag. Ramaswamy, V. S., Namakumari, S. (2009).Marketing management: Global perspective, Indian context. Delhi: Macmillan. In Mokwa, M. P., In Dawson, W. M., In Prieve, E. A. (1980).Marketing the Arts. Westport CT: Praeger. Beri, G. C. (2013).Marketing research. New Delhi: Tata McGraw-Hill. Lamb, C. W., Hair, J. F., McDaniel, C. D. (2012).Essentials of marketing. Mason, Ohio: South-Western Cengage Learning. Ferrell, O. C., Hartline, M. D. (2014).Marketing strategy. Mason, Ohio: South-Western Cengage Learning. Lamb, C. W. (2012).Marketing. Toronto: Nelson Education. Lamb, C. W., Hair, J. F., McDaniel, C. D. (2010).MKTG4: Student edition. Mason, OH: South-Western Cengage Learning. Hoffman, K. D., Bateson, J. E. G. (2017).Services marketing: Concepts, strategies, cases.aa Boachie-Mensah, F. O. (2010).Sales management. Place of publication not identified: Trafford Pub. Butuner, H. (2016).Systematic strategic planning: A comprehensive framework for implementation, control, and evaluation. Masterson, R., Pickton, D. (2010).Marketing: An Introduction. Docters, R. G., Barzelay, M. (2012).Contextual pricing: The death of list price and the new reality. New York: McGraw-Hill. Amihud, Y., Mendelson, H., Pedersen, L. H. (2013).Market liquidity: Asset pricing, risk, and crises. Rebonato, R. (2012).Modern pricing of interest-rate derivatives: The LIBOR market model and beyond. Princeton, New Jersey: Princeton University Press. Alexander, C. (2008).Market Risk Analysis: Pricing, Hedging and Trading Financial Instruments. Great Britain: John Wiley Sons. Bakshi, S., University of Texas at Dallas. (2015).Three essays on imperfect information and market pricing. Kaser, K., South-Western Cengage Learning. (2013).Advertising sales promotion. Mason, OH: South-Western Cengage Learning. Solomon, M. R., Duke, C. L., Nizan, A., Open Textbook Library,. (2009).Launch!: Advertising and promotion in real time. Pride, W. M., Ferrell, O. C. (2014).Foundations of marketing. Hogeforster, M., Baltic Sea Academy. (2012).Strategies and Promotion of Innovation in Regional Policies around the Mare Balticum. Norderstedt: Books on Demand. Top of Form Galal, K. (2013).Strategic positioning in the consulting industry: An emperical analysis of strategic groups and performance. KoÃÅ'Ãâ ln: Eul.Bottom of Form Reigle, J. (2011).Positioning for architecture and design firms. Hoboken, N.J: John Wiley Sons.