A product is something that is offered in to the market. For my product to be successful I have to consider what the product is and what it means to the customers. I will produce effective product mix using the results from the questionnaire because in questionnaire people have gave some hates, likes, spending information which I could use to develop an effective product for the consumers. I will also use my secondary research to consider effective product for a market. My product is for those consumers, which are interested in fizzy drinks and drink it at regular basis. I gave my questionnaire to forty people and got a full feedback. Thirty one out of forty people liked fizzy drinks and eight didn’t. For my product to have attraction like shape and colour I will believe I need to have effective brand name and well laid out text and other info on the bottle.
Question stated, “Indicate one thing which you look or check when purchasing a new fizzy drink brand?” Thirteen consumers gave me a result of price being low so people can afford it. As I said I will develop a product to the taste and purchasing habits of consumers. As consumers wanted me to price my product at 60p to 70p, this is a low price to charge for my product at so it will force me to use penetrating pricing strategy to get the foot head in the market and can than later charge my product at higher price because its awareness have already been indicated by consumers.
It is important that I consider how a product can actually fit into the market. An effective products are those which are able to fit there product in the market correctly. While developing the products, the development department must have to make sure that it is produced at high standards and also developed to keep pace with the market changes. The gaps between the markets are so tight with tough competitors around like Coca Cola, Vanilla Coke, and Lucozade etc… In order to break through these gaps I must launch my product at the right place, and at the right time, and also at the right amount.
Also from the secondary research which I collected I found out that fizzy drinks are difficult to fit into the market because of so many different brands all ready published, for e.g. coca cola, fanta. Price: This is again will be taken in consideration by the results from the Questionnaire and using the secondary research. Price plays a critical part in marketing activity. If my Price is not aimed at a right price, I will lose customers and revenue. I will be charging my product at 70p in the market, which will lead me to use penetrating pricing strategy. This is done because it allows the product to have a guaranteed entry into the market.
By doing a penetration pricing strategy will mean that I will lose customers as well as the revenue will be lost through the product being priced too low. To conker this, I need to keep the balance between the sales and revenue at correct rate. If this can be done successfully it will have high revenue meaning more net profits, but I need to make sure that after paying tax and paying my expenses I still have enough revenue invested in the business to start off the next year.
For example, suppose I have 500 000 of gross profit in my first year and paid tax to government at 100 000 and also paid my expense at 80 000. I would have following profit left: Gross profit 500 000 -Tax 100, 000 -expenses 80 000 Net profit= 320 000 In question 4, I wanted to know how many times in a week do people have fizzy drinks. This is a good result because in each figure there are 5 or more people which drink fizzy drink every week at different times. The amount fizzy drinks drank was topped up by 14/18 times with 12 people. This probably means that each individual drinks nearly two glasses or cans of fizzy drink each day. This shows that most consumers are interested in fizzy drinks and will purchase them.