Introduce A New Product To The Market

Published Date: 02 Nov 2017

Without this basic knowledge about our insights and goals, it will be troublesome for us to reach our customers, to retain our position in the market and to advertise our new product.

The following are the main parts of the marketing process.

Situation Analysis (where we are at now?)

Environmental and Internal Analysis

Market Information and intelligence

Setting Goals (where we really want to be?)

Strategic marketing decisions and choices

Segmentation, targeting and positioning strategies

Branding strategies

Relational and Sustainability strategies

Marketing Strategy (What we should do to get there)

Innovating new products and strategy development

Service marketing strategies

Social and ethical strategies

Implementation and Control (what has to be done)

Strategy implementation, control and metrics

When we take Situation Analysis, it gives us a clear idea about our companies current position at the market, which is the most basis knowledge that his highly required to recognize our strengths and weaknesses.

Moving on to Setting the Goals, it is essential for any company to where they want to be at by the end of a certain period of time. It helps to make strategic marketing decisions to tackle the competitors, crucial choices, targeting a certain market which we think that is the most appropriate market and also to think of how to sustain in the market.

Coming on to Marketing Strategies, which is the third phase of the marketing process which is know to help us identify what we should do to achieve our goals such as innovating new products and services, strategy development suiting to the new product or service that we are trying to market, naming a reasonable price for the products and planning product distribution, building up internet marketing strategies make our product/service more popular and gain more customers plus understanding differences between societies and ethics.

The 4th and the final phase of the marketing process is Implementation and Control which helps a company to understand what has to be done to ensure that they will achieve their goals which is to execute the strategies that we have come up with so far and gain control of it.

2.

2.1 Cost

The product ‘Flavoured Curd" is our company’s new innovative food product which will surely take all the customers by surprise. We have eaten flavoured yogurt, flavoured ice cream, flavoured pudding but have we ever got a change to eat flavoured curd? NO! Because it is a whole new idea and just by hearing it’s very name, we get tempted to have a taste of it. The cost of making a normal yogurt size cup of Flavoured Curd is Rs.20/-., which is of course a manageable cost per unit since it is flavoured. A normal cup of yogurt that our company makes cost Rs.15/- so just having to add more Rs.5/- into making a cup of flavoured Curd is reasonable.

2.2 Benefits

Since ‘Falvoured Curd " is a totally new product and is coming in a handy little cup with a reasonable price tag. Since we do not have any strong competitors in the curd market, we will have a strong edge in gaining a huge market share within a short period of time. As Sri Lankans , our traditional food is curd and not yogurt , so even if we have to compete head-on with the yogurt making companies, since our people respects the traditions and trust the goodness of Sri Lankan food, we will still have an edge over them.

3.

Now when we look into micro and macro environmental factors, we have to admit that micro environment and macro environment. Factors play a major role when it comes to marketing decision making. A good marketer will always analyze both the micro and macro environmental factors before making a decision. A single wrong decision which a marketer takes can be fatal for the company’s future. Marketing decisions are crucial and should be taken after putting lot of thought into it and by judging various reasons why that it deserves to be chosen as a marketing decision. Therefore, a marketers judgement and his decision making has to be extremely accurate and reasonable.

3.1 Micro Environmental factors impact on decision making

What exactly is known as a micro environment in a company? What sort of things are included in the micro environmental factors? The answers are simple. A micro environment of a company is a group of forces that are put together to be a part of the marketing process itself. Some might state that the micro environment is intricate and is quite stubborn. But however, that it is said and done the company do have the strengths required to control how it behaves in the environment. The marketers are the key of success when it comes to gaining control over this environment. Every step that a marketer takes will affect this environment’s behavior immensely. The micro environment consists of Competitors, Suppliers, Intermediaries, Public, Company and finally the customers. Now let us look how each of these factors impact on marketing decision making.

3.1.1

Competitors

Someone might think why are the competitors considered as a micro environmental factor and don’t they considered as threats? Yes, that is exactly why they are considered as a micro environmental factor. Their actions have big impact on the company’s stability, progress, future etc. Their top priority is to make it difficult for us to reach to the customers. If one is considered to be your competitor, that means that person or company shares the same set of goals that you do. So as a good marketer, one should always be aware of the competitors behavior in the market, how they respond to various promotions and campaigns of your company and so on. So from the things are that mentioned above, it is nothing but crystal clear of how much of an impact that competitors have on the marketing decision making. Since the company and the competitors shares the same market and the majority of the customers, every single move that that make can be the downfall or up rising of the company. So, therefore, before taking a marketing decision, it is vital to study your competitor.

3.1.2.

Suppliers

A supplier is a key factor for the company’s stability in the market. Especially the main suppliers. The supplier’s ability to produce you healthy goods for your production is vital cause, if you cannot product a healthy product for your customers using the supplies that is produced by your suppliers, because of a fault the supplies that were over to your company. That causes customer dissatisfaction and losing your share in the market. Suppliers behavior is strongly affected to the company’s productivity and sales. A main suppliers bond with the company is so strong. A good marketer always keeps in touch with his suppliers. The quality of goods which a supplier can provide always varies so, a marketer always should adjust his products promotions/campaigns and decide how much of a quantity of products that he is going to produce to the market in that particular period of time. So a supplier play s a major role in the marketing decision making process.

3.1.3

Intermediaries

Marketing Intermediaries can also be called as an important factor in the micro environment. They are the one who promote, distribute and sell the goods on behalf of the company. The one’s who buy products from intermediaries are the final buyers. A marketer should make many marketing decisions according to the intermediaries marketing tactics and needs. They require varied quantities of products for purchasing as they prefer and main intermediaries have a power over the production output so that it will be suitable for their likes and dislikes. There are several kinds of intermediaries , a company can have

Financial Intermediaries

They are the ones who help a company to keep their finances upto the point. The examples such intermediaries are credit companies, insurance companies and banks.

Marketing Service Agencies

These agencies help the company to market their products and service.

Distribution Firms

These distributors are helpful in transporting the goods of a company from one point to another.

3.1.4

Public

The public can be known as the group that has an interest in the company doings. The public has a great impact of the company’s status in the market and the marketing decisions that a company make. They have the control over company’s ability to achieve it’s goals. The public can eb categorized into seven different categories.

Internal Public – volunteers, workers, manager and directors

General Public – It is important that the company pay close attention to the lies and dislikes of the general public.

Citizen Action Public –

Local Public – Social organizations and the locals around the company premises

Financial Public – The main supportive hand in aid for the company when it comes to obtaining funds

Media Public – The media that helps a company to reach the public

Government – The government always keep an eye on a company’s development

3.1.5.

Company

The company is commonly known as the internal environment. The marketing strategies, company policies, the mission and vision statement, objectives, handling business and marketing decisions making is all done by the Top Management of a company. The top management gives their opinion and sets limits to what a Marketing Manager should achieve from a certain task. A good marketer should always keep in touch with all the different parts of a company.

3.1.6.

Customers

The customer is the fortune of a company. A successful company always manages to keep it’s customers satisfaction in a top level. A company must always provide products/services which are within the customers’ likeliness. So a marketer should pay very close attention to his customers. A marketer should reach his customers using the media. Such as by advertising and promotions. Since there are several different customers markets, a marketer should be able to understanding each and everyone market needs and should make marketing decisions wisely.

a)Consumer Markets

b) Business Markets

c) Reseller Markets

d)Government Markets

e)International Markets

4. Processing Segmentation Criteria to be used to market the new product

What exactly does marketing segmentation mean? Marketing Segmentation means dividing a group which is identical in every perspective into different smaller groups.

We CIC Agri Company as a top market share holder in the curd market, we have our own unique ways of marketing segmentation. Unlike other competitors in the curd market, we hold on to a prestige which is known for us.

Since this product can only be consumed once and the buyer being the final consumer of the product, we will only be considered about the segmentation criteria in the B2C market.

*B2C Marketing Segmentation

As a well organized company, we in CIC Agri always looks into our strengths , weakness, opportunities and threats before marketing a new product/service. As for our new innovative "Flavored Curd food product is promised to make a revolution in the whole market.

Strengths

Since the flavoured curd is a whole new product the customers will surely be templted to buy it. Plus, since the curd comes in many flavors such as Strawberry, mango, banana, blueberry and papaya, the product will not be labeled as a product which is there for a certain group of people.

CIC Agri is very well known for our healty way of making food products and the nutritional value of our products. We are on high standards compared to our competitors.

Since our productivity is not limited to curd production and since we own our very own farm in Hingurakgoda – buffalo herd. We are very well supported with resources since we are pioneers in urban agriculture, Agri technology etc. we are abel to gather resources in a low cost and our production cost is also comparatively lower than our competition.

Weaknesses

Since this is a whole new product that we are introducing to the market, we need to make the customers believe in this product as a healthy, nutritious and tasty. It is necessary to work hard to avoid any remarks as much as possible. Since it is new , there will be a lot of criticism on the product and we should be prepared to tackle them.

Opportunities

Since this is the holiday season, people will tend to visit their relatives more often and people will tend to buy more food (especially fancy food) since they are staying at home for a while. So it is the best time to introduce our product to the market.

There are 4 ways of segmentation available in the B2C market.

a)Demographic Segmentation

b)Psychographic Segmentation

c)Behavioral Segmentation

d)Environmental Segmentation

(a)The Demographic Segmentation

When it comes to Demographic segmentation, we will be looking into age, family size. The age category we aim to market our flavoured curd product is from age 6 – 50 years. The reason for limiting the maximum age barrier to 50 years is because of the health issues caused by sugar is fatal for most of the elderly people.

The family size of course varies from one family to another. Mostly Sri Lanka’s average family size is 04 accordingly to the 2009 Household Income and Expenditure Survey whichw as done by the Sri Lankan government. So we could be making a 500 ml curd cups for a family size of 04 and 100 ml cups for a single person.

(b) Psychographic Segmentation

In psychographic segmentation we will be grouping the customers under lifestyle and opinions. A person’s life style is different from one to another. So we would be targeting the adults who have a busy life and children. Since these adults would tend to get something sweet and nutritious to their children, since the children are always eager to meet their parents in the evenings and always hope that they bring something sweet for them. So our flavoured curd is the best choice for the hard working parents.

(c ) Behavioral Segmentation

Under this segmentation the customers are concerned about Benefits, Brand Loyalty, Price Sensitivity. The benefits of buying a CIC Agro Flavoured curd is that the customers get to enjoy a sweet dessert and at the same time will not have to worry about eating it since it is nutritious. These are concerns of the customers.

Our brand produces a wide range of products. From rice, dhal and sugar to curd and many more. We have always been able to keep our customers satisfied.

5. Targeting Strategy

Single Target Market Approach

Multiple Target Market Approach

Combined Target Market Approach

The abovementioned 03 steps are the ones which are available asoptions t be chosen as a targeting strategy.

We will be taking a Multiple Target Market Approach with Demographic, Psychographic and Behavioral Segmentation.. Selecting the target market is an important part of the marketing segmentation process. The target market that we are selecting should represent our goals, abilities plus strengths.

6. Customer Characteristics

A consumer characteristics has an impact on products that they buy. There are several consumer characteristics.

(a) Demographic Characteristics

As In mentioned before, we will only be focusing an age and family size out of all the demographic factors. So age factor strongly impacts on our product since it is limited to some extent. Age 6 – 10 consumer may tend to like strawberry, Blueberry or Raspberry flavoured

Curd since those colourful and bright. Same can be applied to age 11 – 16, but all the ages above that might prefer a more healthier mango or banana flavor since it is good for the health. When it comes to the family size, consumers tend to buy large 500 ml flavoured curd cups which can support 04 to 05 people easily. The customers would like to choose a flavor which is healthier than the rest such as mango and banana.

(b) Psychographic Characteristics

A Psychographic consumers characteristics can be known as interest opinions , values, attitudes and activities. A consumer might have different interests in flavours and we have to understand their interests by analyzing which f the 5 flavours have the most sales or by conducting surveys, the consumers have different opinions on different flavours.

(c ) Behavioral Characteristics

Behavioral Characteristics include benefits, brand loyalty and so on. A customer will always see into the benefits that he/she gain by buying a product.

6.1 Buying Decision Process

The buying decision process includes 5 steps.

Problem Recognition (Perceiving a need)

Information Search (Seeking Value)

Evaluation of Alternatives (Assessing Value)

Purchase Decision (Buying Value)

Post –Purchase Behaviour (Value in consumption or use)

6.1.1.

Problem Recognition

When the consumer realizes his/her needs to buy something sweet or a curd, he/she thinks what he/she should choose.

6.1.2

Information Search

In this particular step the consumer tries to find a product which fulfil the needs and suit the consumer likings. The consumer will look for a flavor that suits him/her likings which is healthy and fits the budget.

6.1.3

Evaluation of Alternatives

After choosing the desired product, the consumer compares the flavoured curd price, quality with the other curd products in the market.

6.1.4

Purchase decision

The consumer will look in whether we have any discount offers, promotions going on to decide when he/she should buy the product.

6.1.5

Post- purchase behavior

After the consumer buys the flavoured curd and consumes it, he /she reacts according to how satisfied or dissatisfied they are with the flavoured curd product and will share the experience of it with others.

7. Positioning Strategy

Positioning is the most important part of marketing a new product. Positioning a new product is all about getting the attention of the consumers in the market.

We need to conduct a research in the market to see the demand that we have for the flavoured curd product. Our positioning strategy would be "Using Product Characteristics & Customer Benefits" a part of our mission is to "ensure the trust from farmer to consumer" and a part of our philosophy is to "Making Sri Lanka a nutritious and a Healthy Nation". Using these statement , we will ensure enrichness of the flavoured curd product get into the targeted consumers mind. We would be targeting to position the flavoured curd among the psychographic, demographic and behavioral markets. We will be advertising the product benefits through media to get the consumers attention.

8. Price, Place, and Promotions for two customer segments

The 100 ml cups would be priced under Rs.35/- each and 500 ml cups would be priced under Rs.180/- each.

Since we are very well known as a prestigious brand which provides rich goods and services, we will be distributing the flavoured curd products to very well known super markets such as Cargills, Keells and Arpico.

8.1. Promotion decisions for the Demographic Market

Since the flavored curd product is a new introduction to the demographic market, placing a promotion for the product is the best way to get the attention of the customer. As we are focusing on the age categories, mainly we will be doing an age based promotion. We would be having a ‘Buy one Get one Free" promotion on strawberry, raspberry and blueberry flavors. Since these are the most tastiest among the five flavours, the kids will tend to buy those more than the rest. And the free cup will be one that is of customers choice. This promotion will only be valid for 100 ml. cups.

8.2 Promotion decision for the Behavioral market

Behavioral market is considered about the benefits that they gain by buying a product. We would be giving away a booklet for healthier life with every purchase of a mango or banana flavored curd. This promotion is valid for both the cup sizes.

9. Difference of Marketing the product to businesses rather than consumers

Consumer markets generally buy goods and services for it’s final use. But business market such as businesses, government and intermediaries generally buys a product or service to re-sell. The relationship between the buyer and seller is in the level of strangers when it comes to the consumer market. But in the business market, the buyer and seller needs to come to a mutual understanding to do business. In consumer markets, the purchasing decision is made by an individual person, but in the business market, the purchasing decision is made by considering opinions of several people.

If we were to deal with B2B market, the factor we would be able to adopt is dealing with intermediaries for the product. It would make it much easier for our company to distribute the product islandwide and will lower our costs.

10.

As so, we all would agree the flavored curd is a product which is too good to be restricted just to the domestic market. So if we are to export the product to the country, to which country this product would be most suited? America! America is a country where people from all over the world has migrated into. It is a country with over 100 different cultures. Many of those immigrants are Asians. Since our product is a traditional asian food, America is the best country that we should export the product.

And since the international market is a lot bigger than the local market, we will have to put more effort and focus into it. We will have to add 02 more extra flavours in the international market, so that the consumers will have a variety to choose from. Peach and Red Apple would be the two flavours.

If we are to approach the international market, we should bring some changes into the domestic market. We will have to make a change in the price of the local market (price increase) since it cost a lot to export the product. Since we have to do the necessary packaging and payments for the intermediaries. A small price increase from both the cup sizes would be helpful to cover the extract cost. The 100 ml cup for Rs.45/- and the 500 ml cup for Rs.200/-.

We would only be selling the flavored curd products in super markets that are situated in the western province. Since the products that are being exported to the international market should be recognized as prestigious products in the local market.