It is highly important that I keep my pricing strategy as close as to the leading market brands. I will do this after my product as settled in the market by using penetration strategy. This will give me guaranteed entrance to the market and play some role in being a competitor to other businesses. After few months I will do skimming strategy because it will allow me gain some control of the market share, as the awareness of my product as already been done by using penetration strategy. In my secondary research, I have looked at the consumers most spending on certain products. I found out that nearly most consumers spend their money on coca cola and than Nescafe and so on. From this information I can set certain objectives for my products, e.g. increase market share and profits by 2% at the end of the year.
Promotion is a way of persuading people to buy certain type of products. Promotion is all about communication and advertising. When doing a promotion of my product, I will consider the following objectives: Increase awareness of a product Show product is better than competitors Improve the image of the business Also to reach a large target audience There are several criteria that my product must meet in order for an advertisement to be considered ‘effective’. When advertising this product, it must reach the desired target audience which are willing to purchase this product. I have to price my product at right price and the right place and at the right time. In my questionnaire I found out that pricing is the most things a consumer considers when purchasing the product. The pricing of the product must be just the right so when the product is advertised and priced, it can be affordable by all consumers.
In my questionnaire, I found out a lot stuff related to promotion. When my product is going to be advertised consumers will first check for a decent price of it and the quality. In question 6 of my conclusion, most consumers stated that they look at the price before purchasing the products. So it is important that I keep the price of my product at an affordable place in order catch people on my side.
Also on question 9 on my conclusion of the questionnaires, most people stated that they are happy with having discount and 2 for 1 offer on products. Surprisingly only few people chose competition because as this is not effective and can be money wasting. I cannot do discounts or 2 for 1 offers straight way, the product has to catch more people awareness and get purchased a lot. The products which are left at the end of each period or month may will be offered on discounts or 2 for 1 because if I don’t I will have less profits through loss of products.
When my product gets advertised, it must be attractive and appealing to consumers. This can be done by adding images. The advertisements must create far more money through sales revenue than the business spends on the advertising campaign My product will be advertised through media and sponsorship, as this is easy way of reaching large targeted audience. Doing sponsorship advertise is a popular method of promotion. It can be very effective but it is also very expensive to do. Football teams are promoting a lot of these products, for e.g. arsenal sponsors Nike and O2. This method can be very effective for promoting certain products. Like in this way my product will be advertised on back on bus shelters or on everyday leading magazine.
Promotion of my product will be done in many ways; the advertising of my product can be seemed well than the actual product itself. Brand name of coca cola, advertising Drink bottle to attract its consumers On TV advertisement, the advert is more memorable than the product. When we are trying to convince a certain consumer to buy a product, it is called persuasive advertising. When I want to increase the awareness of a product, it is called informative advertising. The main of promotion is to keep the business going and also keep their business ahead of its competitors.
In my point of view the best advertisement for drinks is to advertise it on TV. Giving out leaflets is cheap to advertise a product but not too effective because it cannot reach large amount of targeted audience. Giving out leaflets is cheaper than T.V advertisement because T.V advertisements is too expensive and requires my business to focus on the needs and wants of the consumers, rather than the product itself. This kind of promotion is called above the line. This promotional activity refers to extensive promotional campaigns on national media, like television, radio.
Place is all about availability. It includes physical place, availability, and the pricing. The main thing my business will consider with place is the channel of distribution. Distribution is about of the 4P’s of the marketing mix. Basically distribution of channel just is a way of saying, how the products from me to the consumers. For my product to be effective, it should be available at the right place and at the right time.
To get the product at the right place, I asked individuals in the questionnaire about where they often purchase their fizzy drinks from. As conclusion, I will distribute my products to ASDA and local corner shops which are close to schools. To get my products to distribute to the correct place quickly and in less time, I will supply them in long Lorries as they can carry more products. This will keep the suppliers happy because they are receiving their products at the correct time and probably rely on the supply more often.
I need to make sure that when my products are supplied they are kept at high quality as like no damage products which can upset suppliers. As supplying my products, I have to make sure that my suppliers are happy with the price I am charging because if they’re business starts loosing profits they will look for some other product which is more profitable than mine. This will mean I will result in losses if that happens. So the higher the price, the greater the potential profit and the larger the quantity supplied. The more the demand of the product it is going to be, the more the supply.
Controls of advertising: Industry based constraints Most promotion and advertising in the UK is covered by voluntary controls. It is self-regulated by the industry. Its key feature is to offer and preserve standards so that all advertising is lawful, decent honest and truthful. The Advertising standards Authority (ASA) is a self-governing voluntary body financed by the advertising industry to make certain that self-regulation works. It has an independent chairperson and two thirds of its members must come from outside the advertising industry.
It does not have constitutional powers. It supervises all advertising, except that on radio and TV. Its role is to protect consumers’ interests. It administers the British Code of Advertising Practice and the British Code of Sales Promotion Practice. These work on the assumption that all advertisements should be legal, decent, truthful and honest. Although ASA tries to prevent the media from carrying objectionable advertisements it does not enforce the law.