Instructions for Marketing Proposal Essay
Instructions for Marketing Proposal Essay
1. Graduate/Masters level writing (academic), all original work.
2. No plagiarism. All work will be tested through 5 different plagiarism software programs to check for possible plagiarism.
3. Four references including in-text citations formatted in APA writing Style (total essay)
4. Write in complete sentences and paragraphs with proper grammar.
5. Carefully read the requirements in each essay prompt, besides the examples, I suggest you perform additional research.
6. The body of the paper, written word count, range of1900 to 2300 words.
7. Deadline: 3 days, I would prefer the essay complete before the deadline.
8. The paper has 17 different marketing prompt/essay requirements. I will provide the prompt/requirements and examples of the answers. You cannot copy the example answers, only gain an idea for original writing. Should you run into any issues or not understand something, please let me know asap.
Marketing Proposal Essay
(17) prompt/essay requirements and examples.
1. Prompt/Essay Requirement.Propose two new products or services the company can sell or offer to a global market. You should provide the name of your business, where it is located in the U.S., what it currently sells/produces/manufactures, your two new products/services, and the foreign country you are going to test market your products/services. Select one foreign country (outside the U.S. and its territories) to focus their responses. The company can be existing or one you create. The two new products or services must be new to the (one) company you select. The two new products or services must stand alone and not dependent on each other. You must set a price and charge for each of your products or services. The two new products or services do not need to be unique to the world, just to the company you select.
Example 1. Lil’ Ones is a baby-care products company based in Alpharetta, Georgia. We are currently serving the US and Canada markets. Our product focus targets parents with babies and toddlers—or who are likely to have babies and toddlers. Now, we offer a range of products focused on making raising babies and toddlers more comfortable and enjoyable. Our slogan is “Taking the work out of raising your babies so you can get back to loving them.”
The company distributes the products primarily through e-commerce (our online shopping cart and online partners such as Amazon), but also through partnerships set up with Walmart stores.
Through competitor analysis and customer feedback, we have developed and successfully introduced two new products in our US market. The success of these products has prompted Lil’ Ones to test-introduce them to our Canadian market. The products are:
Product 1. The Pinky Binky. Designed and molded from a mother’s pinky with similar firmness and shape to simulate that of an actual pinky finger.
Product 2. Tidy Tots Bib System. This is a universal bib cover that goes over a baby and high chair table comfortably using high strength suction cups designed to work with any surface. Food slides onto the tabletop and not onto the baby or chair.
Example 2. The retail company selected for this marketing evaluation will be referred to as “Craft Corner.” Craft Corner is located in Eastern Pennsylvania and manufactures and supplies planner related products nationally and globally. They are a family-owned company, currently operating out one factory. This paper will analyze the development efforts of two new products in Canada. One new product that the company can offer to the global market of Canada is a themed monthly planner kit box. Each month the theme will change based on the season and holiday-themed kit and will include pieces of the products already produced. Craft Corner currently provides planner stickers that include weekly and functional stickers, washi tape (decorative tape), planner magnets and planner page clips, and uses a supplier for packaging needs that include company labeled envelopes. The company could use their current equipment to manufacture the monthly planner themed kits and continue to use their supplier for the themed box packaging.
The next new product Craft Corner can offer to the market of Canada in DIY printable planner pages. This new product is likely to bring in positive revenue because the company already has the planner page layouts designed, in which they currently print and ship. Offering them as DIY will allow the consumer to be able to skip the wait of a shipment and be able to print their planner pages at home.
2. Prompt/Essay Requirement.Identify a need and existing global market. Provide a logical discussion of 3 research methods that the candidate theoretically used to determine that there is both a need as well as an existing global demand for the products and services.The product or service selected must probably generate a profit for the organization.
Example 1. The need for baby-care products has been around for centuries. In today’s fast-paced world, the need for innovative products that take the stress out of parenting while attending to the needs of the baby is in high demand. Humans are a renewable resource, and thus there will always be a need for items to assist the growth and care of babies. Products that help parents enjoy parenting keeps babies happy and families healthy.
Evaluating the market need for our new products was accomplished through data collected from existing customer reviews and feedback of the Lil One’s online store, retail partners (Amazon, Target, and Walmart), and through the company’s social media platforms.
Because Lil’ Ones already has suppliers located in Canada, shipping and stocking the Pinky Binky and Tidy Tots products would require minimal overhead. Distribution channels already exist. This would allow Lil One to keep existing profit margins.
To further identify and validate the demand for our Canadian market, the company conducted the following secondary research methods:
Direct Observation. A Lil One’s control group monitored online click-through sequences of existing, new, and prospective customers, specifically concerning pacifiers, bibs, and high chairs. Additionally, sales and feedback comments were tracked with the latest products along with return rates. Return rates are meager, and customer reviews have been tremendously positive.
Focus Groups. Focus group panels were created while pilot-testing the new products in the US as well as six months after the product launch to validate interest, use, durability, and satisfaction and improvement needs. These groups consisted of suppliers, retail representatives, customers, Lil One’s employees, and parenting advocacy groups in both the US and Canada (for product introduction consideration) markets. The 3rd party moderator was selected to conduct the focus group interviews. These interviews helped setup survey questions.
Surveys. Surveys were created from focus group and direct observation data and sent to Lil One’s customers, online fans, pediatric clinic partners, and baby advocacy companies using Survey Monkey—an affordable online survey tool used worldwide. These surveys were targeted specifically to Canada, but we included some US customers and partners as well to determine if Canadian connections to US customers existed and if marketing the products, there would make sense. Lil One’s received an incredible 57% response rate to surveys indicating that Canada would respond favorably to these products.
Example 2. Craft Corner planner stickers and supplies are made to be used without difficulty by the consumer. The labels are printed on 100% recycled paper. “Circuit” cutting machines are used to ensure each sticker is kiss cut, so all the consumer needs to do is peel it from the paper and use it immediately.
Three methods were used to determine the need for new products in Canada. The first method used was conducting a survey. Using Facebook and their free survey system, planners of all ages will be targeted to identify the types of planner products used monthly, the options of being able to print their planner pages versus having them printed and shipped, and the option of having a monthly theme chosen for them. To get planners to complete the surveys, they will be given a discount coupon for 20% off their next order, once completed.
Craft Corner learned from the survey that many Canadian planners use stickers and other crafting supplies to decorate their daily. It revealed that 65% were willing to print their planner pages if it meant they could have immediate access to the pages. 85% of the planners were excited at the thought of having all their monthly planner supplies in one kit with a unique theme, as it meant they would not have to spend too much time searching various aspects, to come up with their monthly supplies necessarily.
The next method used to select new product offerings was to gather a group of 10 Canadian participants from the Facebook survey, made up of 2 males and eight females, for an open discussion. Each person was given a link for business Skype, an internet-based program used for video and chat meetings. Each person was given a chance to ask questions regarding prices, shipping times, supplies needed for the DIY pages, themes covered throughout the year, etc. Eight of the Ten people were excited to see samples of the themed kits.
The last method used would be for planners to sign up via email for a free membership and notifications of new products. When consumers make purchases through the online store, they will be given the option to sign up for the email notifications. The information required would be their birthdate, so that they may receive a particular sticker page during their birthday month. They will also be asked general interest questions so that when an individual sale comes up with products that are geared towards their likes, they will be notified.
3. Prompt/Essay Requirement.Competitive Advantage. Provide a logical explanation of 1 competitive advantage to the company that will be attained by offering each new product and service to a global market. Be sure to name your competitor(s) and discuss your products/services concerning competitors.
Example 1. Lil’ Ones competitors are aplenty with many that offer excellent products for baby and child care. Our primary competitors to our new products are Nuk, Playtex, and Fisher-Price. Each of these companies provides bibs and pacifiers with varying degrees of differentiation. While they have become household names, Lil’ One’s has successfully established itself as a new entrant leader in high-quality, innovative baby-care products at a great value. Our two latest products are our most exciting yet!
Lil’ One’s has multiple advantages over our competitors, but it is perhaps our viral marketing efforts and testimonials that have set us apart. Our products are sourced in sourced responsibly and the highest standards while remaining affordable. Also, our Pinky Binky pacifier is patented for both the material used in the pacifier and the design shape. The Tidy Tots system has a universal application—which means that it can be used to cover any existing high chair young parents already have. No other competitor offers this.
Example2. Craft Corner will gain the competitive advantage of being a distributor in Canada, by offering higher quality products of their monthly themed planner kits and instant access of their DIY printable planner pages. The stickers used in the themed packages will be printed on high-quality paper, where they can be removed from the planner page and repositioned if needed. This will allow the consumer to be able to fix a misplacement without ruining their page efficiently. The competitors are only offering their stickers on non-removable sticker paper, not allowing the consumer to be able to adjust their labels as needed. Non-removable stickers could lead to page tears or completely ruined pages if the consumer attempts to remove them. With Craft Corner’s removable stickers, the consumer will not only gain the flexibility to rearrange their labels, and they will have gained the satisfaction knowing that their hard-earned money was spent on a product that will simplify their planning needs. Once consumers begin to use this product and notice the quality difference, they will continue to purchase the planned kits every month, giving Craft Corner positive profitability.
Craft Corner will have gained a competitive advantage over competitors with DIY printable planner pages, as they have already designed each template, with numerous sizes and layouts; whereas, this product does not exist with competitors. At this time, the competitors print out planner pages and ship them to the consumer. Offering DIY printable planner pages will provide instant consumer satisfaction. They no longer have to wait weeks to begin planning, they only need to purchase, download, and print and they can start planning within minutes. The consumer will appreciate taking out the middle-man and being able to take part in putting their planner together. They will be able to choose their preference of paper and inks; whereas, buying from the competitor, they are not offered any type of customization.
4. Prompt/Essay Requirement.Risks in Product/Service Launch. Provide a logical discussion of 2 inherent risk(s) associated with launching the new products and services in the country you selected and how to minimize these risks. State each risk, discuss why it is a risk for your company, and what action you can take to reduce each risk.
Example 1.Risk 1: Copy Cats. Our patents may protect our products, but duplicating the Pinky Binky or Tidy Tots bibs would not be too tricky for savvy competitors. To mitigate this, we are relying on being first-to-market with these products and amass a large share of the market with loyal customers. Lil’ One intends to be the household name with our neighbors to the North.
Risk 2: Supply Chain. Shipping orders to Canada from the US may be a hassle due to customs, taxes, and tariffs. To eliminate this, the Pinky Binky and Tidy Tots bibs will be freight-shipped to our Canada warehouses and then distributed in-country. Shipping by bulk freight reduces costs, risk of Customs interference, and saves Canadian Customers shipping costs.
Example2.A risk associated with the new product of monthly themed planner supplies is that craft stores may fear change from their regular business relationships and beginning to use Craft Corner as their supplier. This risk can be decreased or eliminated by offering monthly themed planner supplies at attractive and competitive prices. If craft stores can increase their revenue, they will want to change. Craft Corner can ship at lower rates than competitors in other countries, as they are just across the border between the U.S. and Canada. Craft Corner can use this advantage to beat out the competition.
Another risk associated with the new product of DIY printable planner pages in Canada is a higher than the expected threat of consumers stealing the design templates of the planner pages and giving them to their friends or family at no cost. This risk can be reduced by obtaining copyright rights and patents on the design templates for the products made by Craft Corner. “A copyright protects an original artistic or literary work; a patent protects an invention.”
There is immense competition from craft stores and other online retailers that may be less expensive than Craft Corner. Craft Corner has been focusing on superior quality and customer relations, which, in turn, decreases risk from the competition.
Example3. There are inherent risks with the international product launch of Cognition and Bertrand. Two risks associated with the global launch of Cognition and Bertrand are brand loyalty and an inability to reach the target market.
To mitigate these risks, and to reach the target market, Cognitive Logistics’ marketing program will focus on how Cognition and Bertrand can help meet the unmet need of real-time business data and business analytics in the supply chain realm. Additionally, to combat brand loyalty, Cognitive Logistics will use specific language in their marketing to plant seeds of doubt in the minds of supply chain leaders as to whether their existing software platforms are genuinely providing the necessary level of business intelligence. These psychological marketing initiatives should mitigate certain risks regarding the new product launch of Cognition and Bertrand by introducing fear, uncertainty, and doubt into the mind of supply chain decision-makers about whether their needs are being met and repositioning Cognitive Logistics’ competitors making their software applications appear to be lacking in providing appropriate data to generate definitive results for the transportation & logistics companies in our target market.
5. Prompt/Essay Requirement.CRM System. Name the customer relationship management software system you prescribe/to recommend to track product and service inquiries and sales and provide a logical justification of why you selected the software. Discuss 4 or 5 major features or functions of the system and why you feel they are functional aspects. You will need to research the CRM software.
Example 1.The days of handling customer data on paper and storing in filing cabinets or warehouses are long gone. Technology has become so streamlined and sophisticated, that just about any business—large or small—can effectively track business and customer data. This is where Customer Relationship Management (CRM) systems come into play. Lil’ One is no different. We are committed not just to being the best in baby care products, but also to continuous evolution to keep up with modern trends and best practices. At the heart of this is our HubSpot CRM tool—which we use for our existing products in the US and Canada. We will continue to use HubSpot for our product test and potential launch phase for the new product introductions to Canada. There are several reasons for this, but the following are four of the primary justifications.
4 or 5 features/functions of the CRM and why are they good
Marketing Automation. Hubspot’s online marketing automation streamlines Lil’ One is digital marketing efforts in one interface linking social media, landing pages, sales, and lead tracking, as well as sales/marketing alignment.
Cloud-based. The most significant advantage in today’s data-demanding world is the availability of cloud-based systems. This reduces infrastructure costs (housing on-premise servers and data centers) and allows data to be accessed in real-time anywhere in the world with an internet connection or cell coverage. It also stores the data securely and with a near 100% uptime service level.
Simplicity. Marketing, sales, support, and operations require both communication and collaboration to effectively hit company strategic goals, manage growth, and increase profitability and marketshare. Hubspot integrates with a host of other software systems that make communication and collaboration between business units streamlined and easy to use.
Reporting/Analytics. Hubspot includes robust reporting and analytics data, including customer and prospect interactions with our website, shopping cart. Social media ads, posts, and promotions, as well as product inventory management, sales and return data, market strengths and weakness data, and customer support/feedback analytics.
Example2. Customer Relationship Management (CRM) tool that offers real-time lead capture and lead history integrated with a web-based auto-dialer and power dialer. This CRM tool will be an integrated combination of software from Five9 and Zendesk. Through the use of this integrated CRM, Cognitive Logistics will be able to capture prospect information such as the location of the opportunity, size of the opening, expected date of implementation of Cognition and Bertrand, open opportunities, and closed sales. Additionally, Cognitive Logistics will be able to maintain a history of all prospect and client interactions indefinitely, allowing Cognitive Logistics the ability to continue to follow-up and capitalize on sales opportunities from their internal database without having to re-initiate marketing efforts.
The integrated combination Five9 telephony and Zendesk CRM offers Cognitive Logistics the ability to warehouse leads indefinitely, capitalize on points immediately, and gives the scalability and flexibility to have offices and sales representatives anywhere in the world there is a high-speed internet connection. In addition to necessary contact information and call information, a Five9/Zendesk integration offers interactive voice response (IVR) menus and automatic call distribution queues (ACD), with the option to have geo-routing which routes the call to the closest office/representative geographically to a potential client’s location. These powerful features will allow Cognitive Logistics the ability to offer services anywhere in the world without excessive headaches in having to change CRM or telephony as the company grows. As such, after the successful expansion to the first international market of Australia, additional global development can occur quickly due to the options scale up and to rapidly deploy the web-based CRM and telephony provided by Five9 and Zendesk.
6. Prompt/Essay Requirement.CRM Practices. Explain how the information generated by the CRM software will be used to continue to drive CRM practices and track sales in your foreign country. Provide examples specific to your products and services.
Example 1. As explained previously, Hubspot will continue to be used as the Lil’ One’s CRM of choice for the new product introduction into Canada. Because the first foray into the country with the Pinky Binky and Tidy Tots bib will be testing the market to validate acceptance and market viability, Hubspot will be used to monitor click-through lead generation from online ads through social media channels, the corporate site, and our Amazon affiliates.
We will also be tracking support inquiries regarding the new products, inventory monitoring through the fulfillment hub, sales, and returns, and product feedback. The CRM also includes a customer feedback system, which we will integrate to have a point of sale Yes/No satisfaction survey. Returns will also be tracked and automated through the Customer portal with a required field for customers to fill out, indicating the reason for return. This will help track defects or other dissatisfaction with the products so we can make adjustments and improvements before full product launch.
We will use data reports weekly to determine area and demographic strengths or weaknesses in the purchase and lead patterns and adjust marketing/sales efforts accordingly.
Example2. The information generated from the CRM software will be used to help refine Cognitive Logistics’ marketing programs, target market, sales methods, and product offerings. Pulling data from the CRM database will allow Cognitive Logistics to discover and differentiate between their proposed ideal client and their typical client. Additionally, Cognitive Logistics will be able to determine such useful metrics as the average sales cycle, average case size, average sale, and average profit margin. Eventually, Cognitive Logistics can use this information to generate a balanced scorecard to aid in all facets of product development. Thus, allowing Cognitive Logistics to tailor existing products or create new products that are likely to become sales winners and service winners.
7. Prompt/Essay Requirement.Distribution Channel. Name and discuss at least one distribution channel for the two new products and services in the country you selected. The distribution channel relates to how customers will obtain/buy the products/services you are selling in the country you selected. You must discuss exporting your products or services (or some aspect of your product/service) from the U.S. to the foreign country you chose to test market your products/services in.
Example 1.We will leverage our existing warehouses in Toronto and Calgary to store and distribute the products in Canada. Shipping routes will be from our new manufacturing partner in Madison, Wisconsin—who handles all Canada inventory stock shipments. Shipments have currently been dealt with by pallet freight with DHL and UPS. We are sourcing manufacturing partners in Canada to manufacture within the country to cut overhead costs in the future and to appeal to Canadians preference for in-country products.
Our distribution channels will be the same. Since the majority of our product is purchased through Amazon affiliates and at Target stores, we will send Target store partners in Canada with product and display/marketing material to setup the new products in the baby-care section of the stores.
Amazon orders will continue to be fulfilled through our Canada distribution centers from online orders along with the corporate online shopping cart. Because both products have relatively little bulk, it will be easy to ship, store, and distribute.
Lil’ One maintains the necessary documents to conduct business within Canada (i.e., license, customs documentation) and already have established shipping routes in-country.
Example2.Craft Corner will continue to use a business to the consumer distribution channel, utilizing selling directly to retail stores such as Michaels craft stores, as well as straight to the consumer. One advantage of channeling to craft stores, like Michaels, is that this type of store is an established distributor. They have the experience and already have effective shipping routes in place. Another advantage is that the craft stores already sell planner supplies. As such, they already have a thriving market with dedicated consumers, and they offer promotional events very frequently. Introducing monthly themed planner supplies from Craft Corner will increase these store’s profits because the prices would be lower than importing from further away countries such as Europe or China.
8. Prompt/Essay Requirement.Key Considerations. Name and analyze at least two critical considerations for entering a global market – e.g., regional trade alliances, agreements, environmental forces. You must discuss these considerations concerning your specific distribution channel.
Example 1.One of the benefits of doing business with Canada comes from NAFTA, which creates free trade between the US, Canada, and Mexico. It is the primary reason Canada was our first global expansion choice with our existing product lines. However, there are other considerations for why we want to introduce these new products in Canada.
Sociocultural Environment. Canada is very similar to the US when it comes to potential market demographics. The primary language is English, the citizens are generally affluent, progressive, and technology-savvy, but also as a tangible product experience. This bodes well for both our online and retail store strategies. Canadian couples are still having babies and expect products that help them raise happy, healthy children while easing the burden of parenting.
Economic Environment. Canada, while not as strong as the US, is doing well economically. The Canadian dollar is not as strong as the US, but there is a large number of US companies that do business in Canada. Canadian citizens have come to trust and rely on US products as a part of their life. As previously stated, Canada is predominantly affluent and tech-savvy. Individuals are used to making purchases at retail locations and online—along with gathering information from products from online data sources (reviews, feedback, testimonials, forums). Lil’ One’s high customer satisfaction and product recommendation from existing customers will influence Canadian customer’s decisions on acceptance and purchase of new Lil’ One’s products. Canadians are also willing to spend more on products that improve their life or make it more convenient.
Example2.The critical considerations for entering the global market for an intangible product such as software applications like Cognition and Bertrand are the sociocultural environment and economic environment. Both situations are critical to the branding and marketing of Cognition and Bertrand. For these purposes, Cognitive Logistics chose to enter theinternational market in Australia because it most resembled the United States from a socio-cultural and economic perspective. Australia has a mostly Anglo-Saxon Englishspeaking population, and except for a few colloquialisms, the branding and marketing will mainly be unchanged.
Similarly, remote sales and service agents for Cognitive Logistics can still be understood and get their sales message across. As with any new international venture it may be hard to build a corporate brand but selecting a country that has amicable business and trade agreements with the United States and has limited communication barriers were key considerations for entering the Australian market. All of this is particularly beneficial when looking at the internal direct sales team distribution channel and has strong benefits in the direct internal sales channel and when forging relationships with distributors and resellers.
9. Prompt/Essay Requirement.Supply Chain. Describe your global supply chain and analyze how it may impact the product or service. The global supply chain relates to how you create/build/manufacture/package/ship the products/services to the country you selected. Once you have outlined your supply chain, discuss some disruption to that chain and the impact it would have on your business in your foreign country.
Example 1.Lil’ One’s products are produced entirely in the US—one of our differentiation from competitors. Raw materials are sourced from midwest partners and manufactured in the US in Colorado, Wisconsin, and Georgia. The new products are made in Wisconsin. Keeping the supply chain from raw materials to finished goods within the US does mean Lil’ One’s has a thinner margin on profits. However, we maintain excellent relationships with our supply chain partners, and it has allowed us to have more influence in reducing material, operation, warehouse, and distribution costs.
Raw materials for the Pinky Binky and Tidy Tots bibs come from Ohio and Missouri silicon and textiles partners. These materials are then shipped to our Madison Wisconsin manufacturing plant where they are produced into the finished goods. These finished goods are then sent by DHL freight by plane or truck to our Toronto and Calgary warehouses. From there, purchase orders are handled by our fulfillment partners and shipped via DHL or UPS in-country.
Packaging for the products is produced with a print and packaging partner in Wisconsin and shipped to the Madison plant. Assembly of product and packaging happens at the Madison facility before shipment to Canada.
Potential disruptions to this chain come from raw material shortages, shipping delays due to transportation malfunctions, mistakes or mishaps, and extreme weather conditions. While Lil’ One’s practices just-in-time manufacturing generally, we keep buffer stock on hand at the Madison plant to mitigate shortages caused by supply chain disruptions. This is also the case in warehousing for product distribution within Canada.
Example2.Craft Corner aims to compete in direct sales and craft stores. This means there will be a couple of different methods of delivery to Canada. For direct sales, Craft Corner will utilize the postal services and FedEx, which already have established delivery routes. The cost of shipping would be paid for by the consumer. For craft stores, Craft Corner will need to ship the products to each stores’ distribution centers via UPS or FedEx. From the distribution center, they would provide their delivery methods to get the products to each store location.
Whether harsh weather or an engine failure on the delivery truck, anything could disrupt the supply chain. Depending on the cause and time to get back in transport, these factors could lead to significantly delayed deliveries and possible loss of money.
10. Prompt/Essay Requirement.Pricing Strategy. Name and discuss a significant pricing strategy (i.e., cost-plus pricing, competition-based pricing, break-even-based pricing, penetration-based pricing, premium pricing) aligned to your products and services’ position within the overall market strategy of the global marketplace. State the prices of your products/services.
Example 1. Lil’ One’s pricing strategy was determined based on a market share objective and competition-based pricing. However, marketing efforts will focus on the differentiation, and quality difference the new Lil’ One’s products will have. We know that profitability is predominantly aligned with market share and quality. Relying on our brand’s quality, perceived value, and high customer satisfaction reviews and testimonials, we expect the new products to be well received with our Canadian target market.
With this data and because these products will be new to Canada, we have decided on a price-skimming strategy for the first month of the test market release with penetration pricing at the target price-point, which will be slightly less than our highest-priced competitors. Price skimming will be accompanied by online stores and social media promotional discounts. Pricing for the products will be:
Pinky Binky: $8.95US per pacifier (skimming introductory price) and $5.95US after that (penetration pricing).
Tidy Tots Bibs: $19.95US per bib system (skimming introductory price) and $15.95US after that (penetration pricing)
Example2.A significant pricing strategy for monthly themed planner kits is cyclical pricing. When using this pricing strategy, the prices will be adjusted accordingly with how the business market is performing at any given time. “Prices are slashed during a recession and pegged up during a demand-pull or a demand-push.”
Demand for monthly themed planner kits peaks at specific times throughout the year, such as during holidays and throughout the school year. Prices set during these time frames will be higher due to demand, reflecting higher revenue. When the peak had decreased, rates will be reduced to get consumers to continue buying products. During the decrease, revenues will also below, but should average out throughout the year.
A significant pricing strategy Craft Corner can use for DIY printable planner pages, would be penetration pricing. This was when the company decreased the product price to the lowest price possible to make a quick sale and gain more consumers. “Penetration price is known as charging the lowest price for the new product. This is aimed to quick in sales, capture market share, utilize full capacity and economies of scale in the productive process, and keep the competitors away from the market”. Since monthly themed planner kits do not exist in Canadian stores, Craft Corner can take advantage of planners on a budget. With development and production costs being minuscule, DIY printable planner pages are an ideal product for penetration pricing. Craft Corner will charge lower prices and can make a profit.
Example3. Cognitive Logistics will engage in two separate pricing strategies until a dominant sales pattern arises from one of the pricing methods or until Cognitive Logistics achieves a significant enough market share to hold a sustainable competitive advantage. The two pricing strategies employed will be cost-plus pricing and value-based pricing.
To achieve desired profit margins, cost-plus pricing will be the primary pricing method until Cognitive Logistics has gained market share. Cost-plus pricing will allow as this pricing will allow Cognitive Logistics to maintain the desired profit margin to recover research, marketing, and implementation costs surrounding the Australian launch of Cognition and Bertrand. Once desired market share has been achieved, and branding has given Cognitive Logistics a sustainable competitive advantage, then Cognitive Logistics will integrate value-based pricing for select clients. Value-based pricing should allow for more significant profit margins for a larger client and large-scale integrations where the cost savings to the client from optimizing their transportation, logistics, and inventory management is several times greater than the nominal cost of the software.
11. Prompt/Essay Requirement.Costs. Identify and discuss costs associated with developing and launching new products and services. Provide dollar figure examples/estimates of each of the expenses you address.
Example 1. The Pinky Binky and Tidy Tots bib system was introduced to our US market more than a year ago to the tune of $98,500 (concept, design & prototyping=$56,000; materials testing and formulation=$16,000; manufacturing equipment and production costs=$15,500; product test market, online and in-store marketing promotion=$7,000 and additional costs for warehouse and inventory storage impact=$4,000). These initial product development and introduction costs have already been recouped from US sales alone.
Outside of ongoing operational, marketing, and sales associated costs already established for these two new products, we expect around $5,000-$7,000 additional market introduction costs (in-store displays and signage, online marketing, lead generation strategies, and Amazon fees for sponsored ads). Costs for researching product fit in Canada (observation, focus groups, and surveys) are approximately $2,700. At the same time, freight shipments from our US manufacturers to Canada distribution warehouses will be variable depending on sales/inventory need (shipping and storing estimates between $800-$1,200 monthly).
Example2.Each monthly themed planner kit would cost the consumer $25.00 plus shipping, the costs of DIY printable planner pages would be $4.95 for each template chosen. With the DIY pages, the consumer would need to purchase each month’s model separately, which in turn would cost $59.40 every 12 months. The costs with developing/producing monthly theme planner kits would require an initial investment for research and development and additional equipment. The materials needed are already built or used by Craft Corner, such as printers estimated at $349.99 each, industrial inks ranging $49-$149.00 per color, Circuit cutting machines up to $299.00 each, stamps ranging $3-$19.99 each and sticker paper $12.95 per 100 sheets.
However, production equipment would be needed to be able to keep up with supply and demand. Product line variation might include a variety of sticker sizes, pens, magnetic page clips, styled paper clips, sticker samples, bookmarks, planner charms, washi tape, and planner charms. While initial costs will be high, themed kits will be available for professional, personal, and holiday planners, motivating consumers during the highest sales periods, which will make up for most of the investment.
The expenses for developing DIY printable planner pages come from copyrighting and obtaining a patent. This is because Craft Corner has already created and manufactures the needed templates. Marketing is an essential factor in selling the new DIY printable planner pages line in Canada. Craft Corner will present several attractive samples of the target consumers with precise, step by step instructions. A series of YouTube videos would be created to demonstrate the kits.
Example3. The costs associated with developing and launching Cognition and Bertrand are as follows:
– planning $10,000
– software research $15,000
– software development $250,000
– user interface design $125,000
– quality assurance testing $75,000
– training $25,000
– market research $50,000
– post-launch customer service & support $50,000
– overhead $100,000
*the numbers listed above are estimates
12. Prompt/Essay Requirement.Consumer Acceptance. Evaluate and discuss consumer acceptance of the price set for the new products and services. Set a price for your products or services and discuss how your business theoretically gathered feedback from potential customers that the price would be accepted.
Example 1.Canadian consumers are more value-oriented than US consumers, but still expect quality in their products. The Pinky Binky and Tidy Tots bibs fit this expectation perfectly. While we do not aim to be the low-cost leader in Canada, our pricing strategy is set competitively with comparable substitutes, and we feel these consumers will recognize the value for quality associated with these products.
Pending the success of the product 3-month test introduction, the launch pricing for these products will be $5.95US/ea (Pinky Binky) and $15.95US/ea (Tidy Tots). Based on consumer feedback through in-market surveys, sales of existing Canada Lil’ Ones products and comparable competitor’s pricing, we feel strongly that these prices will be readily accepted by the majority of the target demographic—which are middle-class mothers of toddlers to age four and expectant or new mothers that shop online or stores like Walmart or who are price and quality-conscious.
Example2.Consumer acceptance of the price set for monthly themed planner kits and associated cyclical pricing strategy would be expected to be high. Craft Corner conducted a survey/poll on Facebook with 100 planners focusing on acceptance of price points for the two new planner products and what the average costs were that they have previously spent monthly for various planner supplies. 92% felt that the $25.00 plus shipping charges was a fair price that they would be will to spend for a monthly themed planner kit. 98% agreed that $4.95 was a more than reasonable price to pay to be able to print their planner pages. The competitors range world-wide. There are large craft stores such as Michaels, A. C. Moore and Jo-Ann Fabrics, along with the dozens of home-based crafters selling on sites such as Etsy and eBay. These stores/shops offer sticker sheets and kits ranging from $7.95 to $30.00.
Consumer acceptance for the price of DIY printable planner pages is also anticipated to be high, as Canada does not currently have these types of products to compete with, and because of Craft Corner’s ability to use penetration pricing. As no other planner competitors in Canada offer a DIY planner product, there are no prices to compete with. Since Craft Corner will be utilizing penetration pricing for the DIY printable planner pages, it will allow for the lowest possible price point, which will attract consumers.
Example3.Customer acceptance of the price(s) set for Cognition and Bertrand will be dependent on the consumer’s perceived value and Cognitive Logistics’ pricing strategy. Cost-plus pricing is a non-negotiable pricing strategy that a customer will accept if they recognize a benefit for the named price. Value-based pricing focuses not just on the perceived value, but the actual value realized by the customer. Value-based pricing is not as intuitive or easy to arrive at like cost-plus pricing; however, value-based pricing may be more straightforward for the customer to accept as Cognitive Logistics will be showing a tangible value to the customer of real savings from usage of either the Cognition or Bertrand software as the actual price they pay is a percentage of the money saved from use of the software.
13. Prompt/Essay Requirement.Competitor Prices. Name a competitor for your products. Then evaluate and discuss competitor prices for similar products and services. Provide dollar figure examples of prices.
Example 1. While there are many competitors to Lil’ One’s products, none have the same innovation as our Pinky Binky and Tidy Tots bib system. Still, our chief competitors are Nuk and MAM (pacifiers) and Fenleo or BiBaDO (high chair bibs).
Pinky Binky target price: $5.95/ea
Maam pricing: $5-$7/ea
Nuk pricing: $4-$6/ea
Tidy Tots Bib target price: $15.95/ea
Fenleo pricing: $13/ea
BiBaDO pricing: $25/ea
Example2. Domestic competitors in the supply chain software-as-a-service marketplace include Red Prairie (now owned by JDA) and Fleetmatics (now owned by Verizon). An Australian based competitor in this marketplace is GetSwift.
In reviewing the pricing strategies, GetSwift offers both cost-plus pricing and value-based pricing. GetSwift offers “pay as you go” pricing, which could be considered cost-plus pricing for $0.03/delivery for its software competitor to Cognition. GetSwift offers “enterprise pricing,” which would appear to either be a flat rate fee or a value-based fee negotiated based on expected savings. This pricing model seems to be in line with what Cognition Logistics will offer.
Red Prairie has three pricing models for its competitive software to Bertrand: subscription software-as-a-service, perpetual license, and commercial open source. All of these seem to cover the different pricing models of cost-plus, flat fee, or value-based pricing. Robust warehouse management software (WMS) from Red Prairie may cost $250,000-500,000.
Fleetmatics has a competitor product to Cognition, and they have multiple pricing models. Fleetmatics has a cost-plus pricing model of $45 per month per vehicle in a fleet.Additionally, Fleetmatics appears to have enterprise pricing that is negotiated.
In analyzing and reviewing several of the significant competitors to Cognitive Logistics, it appears they all use multiple pricing strategies, including a combination of cost-plus pricing and value-based pricing. This falls in line with the strategic marketing and strategic pricing strategies of Cognitive Logistics making Cognitive Logistics’ plans a possible and reasonable fit in the supply chain software-as-a-service market.
14. Question/Essay Requirement.Promotional Strategy. Discuss the promotional strategy (Push or Pull plan) you will use to promote your products and services in a global market.
Example 1.The promotional strategy will be both push and pull type strategies.
Push Strategy. The push strategy will use online, social media, and tradeshow marketing promotions and ads designed to create awareness and buzz about the two new products. We will also leverage our US fans to create viral interest via social media feeds, which include ads about baby-shower gift registries for Walmart and Amazon. Also, we’ve developed in-store displays for both products for use with our Walmart partners to attract customers to the new products.
Pull Strategy. The pull strategy will be from existing loyal customers and partners that are keeping up with the latest product news and information with Lil’ Ones. We expect they will want to purchase these products as soon as they become available. We have also integrated SEO strategies to put the new products on the first pages of search engines and social media marketplaces.
Example2.To promote a healthy choice for lunch and dinner, Wendy’s will use the following promotional strategies: Signage, television commercials, radio ads, social media, coupon mailers, and in-store marketing. Combined, these strategies will encourage a push strategy by creating a demand for the products through the use of the promotion.
15. Question/Essay Requirement. Media Channels. Identify two mass media and two social media channels you would use to promote your new products and services in a global market. Be sure to verify that your selections are allowed in your selected foreign country.
Example 1.Advertising and promotion will be handled through both traditional and social media channels, similar to our US methods.
Traditional channels. Lil’ Ones will post ads in baby, parenting, and lifestyle magazines. TV or radio spots will also be leveraged to showcase the product and features a well. Parent and baby advocacy influencers have also signed to promote the products through their media organizations.
Social media channels. As discussed previously, the company has worked with an SEO group to increase search results on popular search engines with tagging and keywords. We will also post sponsored ads through Facebook, Instagram, and Pinterest. Lil’ Ones has a YouTube channel where short teaser videos and features/benefits videos will be displayed along with customer and influencer testimonials.
Example2.Mass Media Channel 1.
The first mass media channel to promote the new waffle chicken breakfast sandwich and the spicy chicken nuggets is essential television advertising. Television advertisements are theright mass media choice because it reaches a broad audience of people. Most people have televisions in their homes and watch tv regularly. This is a good option because it reaches a general audience. While television advertising could be on regular cable television, it would also be useful to place advertising on the ads of popular streaming services such as Hulu.
Mass Media Channel 2.
A second mass media channel to promote these new Chick-Fil-A products is the radio. Radio advertising would be an effective way to promote the two new products that Chick-Fil-A has to offer.
Social Media Channel 1.
The first social media channel Chick-Fil-A should use to promote the two new products is Instagram, what better way to show people how delicious these products are than with pictures and videos! With over 500 million daily active users, Chick-Fil-A could reach many people. Since the same person owns Instagram, it has equal access to the extensive user base as Facebook. Using Instagram, Chick-Fil-A could use tags and hashtags to allow more of an audience to see their posts on their Instagram page. They could also use sponsored ads so consumers can see the ads for the new Chick-Fil-A products on their news feed without having to seek out the Chick-Fil-A page itself. This is also a great social media platform to promote because users can grow their following organically. Unlike Facebook, where you must pay to play, Instagram is a social media outlet that allows you to gain a following and grow your customer base organically.
Social Media Channel 2.
The second social media channel Chick-Fil-A should use to promote these products is Facebook. With over 24.1 billion active users daily, Facebook is the most widely used social media platform. Facebook’s user base and demographic of its’ users reach diverse. Almost anyone can find their target audience and get in front of them. Chick-Fil-A could use Facebook to target by age, gender, employment, interests, and purchasing. Our news feeds are filled with advertisements. Many organizations use Facebook to promote their goods, but it is also a great way to interact with their customers.
16. Question/Essay Requirement. Channel Justification. Provide a logical justification of why you selected those channels based on market segmentation.
Example 1.The mass media channels chosen were selected because society still enjoys purchasing magazines, listening to the radio, or watching television to get their information. Magazines work well because many of the chosen magazines are available in checkout lines at retail, and grocery stores were expectant or new mother’s shop. Perusing magazines while waiting to checkout is as natural as shopping at the store itself. Child and parenting advocacy influencers have extensive networks of parents where raising healthy babies and loving, emotionally stable parents is highly relevant. These influencers weigh heavily on the decisions of these parents, and advocating the new products through influencer interviews, whether on television news or radio stations, is a natural choice for product introduction and promotion.
The world-at-large thrives on social media. They rely on it to share information, base decisions, network, and shape opinions. It’s easy to present and promote knowledge and even easier to get the customer perspective instantly. It’s also an extremely cost-effective way to advertise that yields excellent results.
Lil’ Ones has always believed in having a robust online presence with the company and has amassed a large following of loyal fans and customers. The majority of the information these fans and customers receive from our company is through our social media updates or posts, so this was another natural avenue to promote, with viral expectations, the new product introduction.
Example2.Based on market segmentation, Cognitive Logistics believes that an integrated marketing strategy utilizing the internet, direct mail, blogs, and LinkedIn will yield the most effective results. The internet is now the fastest way to reach the widest audience, and Google is now the largest advertiser in the world. A search engine optimized web presence using both natural and paid optimization features should drive prospects to Cognitive Logistics’ new product offerings. Adding a direct mail component to the integrated marketing campaign will allow Cognitive Logistics to touch certain pre-qualified high value prospects directly. Blogs are another way to capitalize on the internet’s reach and incorporate a social media component that appears to be from consumers as opposed to directed by the company. LinkedIn marketing is a way to use social media to get product information directed to corporate supply chain decision-makers. Internet and direct mail are mass media options that allow Cognitive Logistics to reach the most significant number of prospects while targeting specific demographics with their marketing. Blogs and LinkedIn are social media options that may allow for behavioral or psychographic targeting of opportunities as those with attitudes or beliefs may congregate on specific social media sites and blogs.
17. Question/Essay Requirement. Sales Promotion. Name and discuss two sales promotion activities – e.g., coupons, games, contests, sweepstakes – you would use to promote your new products and services in a global market.
Example 1.Several promotion activities will be incorporated to increase awareness, share, and promote the products or encourage purchasing. Two promotions the company is most excited about is our Buy 2 Get One promotion and What’s Your Story online contest.
Buy 2 Get One promotion. This promotion will give the buyer an additional product if they purchase two at the same time. Only 2 of the advertisements can be redeemed per customer per product to limit profit loss. It works like this, if the customer purchases 2 Pinky Binkies or 2 Tidy Tots bibs, they will get an extra one free to “share” with someone else as a gift—or in other words, if they purchase three at the same time, one will be free. They can do this one more time for each product (buy 3, one is free); after that, the systems will know they’ve already received the maximum promotions.
If purchased at Walmart, the store will automatically discount the full price of the 3rd. Online, if the customer buys two at the shopping cart checkout, they will automatically get a third that they can have shipped directly to themselves with the other two or ship to someone else as a gift (the customer pays the shipping).
What’s Your Story promotion. This promotion allows the customers to submit a short testimonial and photo of them using the new products. Those with the best pictures and stories that promote how these products have helped make parenting easier or their baby happier will be featured in the Lil’ Ones social media posts and Youtube videos along with receiving free Lil’ Ones product(s) and entered into a baby room makeover.
The purpose of these promotions isn’t just to increase sales and grow market penetration. The primary goals are to get people using and talking about the product and sharing their stories to create greater awareness, community, and more reliable brand and customer loyalty.
Example2.Two sales promotion activities Craft Corner would use to promote products would be a contest for a planner to win a free monthly themed planner kit. The contest would be open to all planners of any age, located in the United States and Canada. The contest would require a brief questionnaire asking why they became involved in the planner community and how it has helped them accomplish their goals and what is one random act of kindness they would like to pay forward. Each planner who enters the contest will receive a coupon code to receive a discount with their next order. A second promotion I would have would be a start of season sale. For the first two weeks of the change of season, Craft Corner would discount its products 20%. This promotional sale would be geared to the direct sales division and would be coordinated with distributors, such as the craft stores.
By using the Craft Corner products, the expectation is that the consumers will be pleasantly surprised about how calming planning can be, and enjoy being able to use their creative talents to set and enjoyably meet their goals.
Example3.Two sales promotion strategies that could be implemented for Cognitive Logistics in the global market could be discounts and rebates. Instead of cost-plus pricing, Cognitive Logistics could discount the price just to cost to gain market share, attract users, and get the name out to assist with branding. Similarly, a promotion that could be employed for value-based pricing (enterprise pricing) could be rebated. In this case, Cognitive Logistics would refund the customer back a part of the fee they pay that is a portion of their cost savings from using the new software…think of it as saving on top of the savings! Both discounts and rebates have been should be utilized appropriately as part of an integrated marketing campaign as an effective way to attract buyers and gain market share.
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