MKT421 Wk 4 Marketing Plan Phase III
MKT421 Wk 4 Marketing Plan Phase III
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Date Created: 11/12/15
Abstract Pet Palace is going to introduce a new product in the market. It will be called Allergy Be Gone. It will dramatically reduce the chances of having allergies from pets. This product will allow people to have pets that have given up hope because of the allergy problem. Now they can have the pet of their choice without any health concern and enjoy their life. This is a unique product and has shown great results in the testing phases. Regardless of that, a comprehensive marketing campaign will ensure its success in the market. Marketing Plan: Phase III Allergy BeGone Attributes Marketing plan of Allergy BeGone is under way and during it, we need to consider some more points. Attributes of the product should be noted so that we can decide which of them are to be highlighted in the marketing campaign. Product lifecycle will also be reviewed to understand where our product stands today. It helps greatly in choosing appropriate marketing strategy. Marketing plan will show positioning and differentiation strategies to be used. In the end, pricing of Allergy BeGone will be decided. Allergy BeGone is a product designed specially to cater to needs of petloving people. Its effective formula works by neutralizing allergens in pets. It will be provided in a liquid spray form and can be sprayed on the pets, pet beds, and all other places pet visit frequently. Allergy BeGone will trim down dandruff, coat oils and shedding of hair, as they are the main causes of allergy. Spray will have a fresh fragrance that will deodorize the house environment as well. The spray has been designed to be used numerous times a week and this much usage will not affect the pet or the house owner in any way. Alcohol or similar liquids have not been used that is why there is no chance of skin infection or clothes staining. Product Life Cycle Series of four phases through which every product passes, from beginning to end, makes the product life cycle. Combination of product, price, promotion and place (marketing mix) is different for each stage and this will determine how long will be the stay of Allergy BeGone in each stage. Market introduction is the first stage in product life cycle. The product is new to the market in this stage so it is difficult to get high volume of sales. This is where advertising comes in. Allergy BeGone will be heavily dependent on aggressive marketing campaign so that people may know about this new product. Pet Palace has no intension of involving anyone else and will be the sole provider of Allergy BeGone that is why they want to send out free samples, gift coupons and reasonably highvalued discount vouchers. This aggressive campaign may be felt as a burden as this moment but it will pay well in near future. A winning combination of marketing mix is the key to success at all stages. It Pet Palace is able to successfully implement a planned marketing mix; Allergy BeGone will enter the growth stage very soon. Allergy BeGone” is a unique product that will help millions of families in the United States have their beloved pets. We are anticipating that sales will skyrocket in the growth phase of Allergy BeGone. As always, marketing mix will be very important in keeping the product going upwards. Continuous research is needed for that. Biggest concern in this stage may be competitors; they can launch a similar product in trying to get a share from this specific target market. This will certainly affect our sales but we can manage this attack through adjustments in our marketing mix. Nest stage will be maturity stage and sales will become constant, or even decrease, in it. Competition will be all time high as many companies would have stepped in this sector till that time. They will be eyeing the market share of Allergy beGone and attacking it from all sides. Product will rely on its brand image and marketing strategies. This will be a ripe time for Pet Palace to launch a new product to revitalize the business and bring back customer attention to Pet Palace. Next and final stage is the decline stage. This is where product is nearing its end. At this moment, the product has seen its best days and has earned a good name. Still, people may or may not shift to other alternates and only brand loyal people may stay with Allergy BeGone. Regardless of a reliable brand name, effective marketing and appropriate marketing mix will be needed to prolong this stage. Positioning and Differentiation Strategies Allergy beGone was developed, by Pet Palace, as an easy to use and affordable alternate to currently available expensive medication and cleansing shampoos. Pet Palace is not in manufacturing business so it will be a challenge for them to successfully differentiate their product against many other alternates. Allergy BeGone will be competing against experienced and specialized pet allergy control companies and this battle will require precise positioning of the product. Competitors of Allergy BeGone include shampoos, allergy medicines, and sprays. Allersearch is a big name in allergy control market and positions itself as “The best way to protect yourself against dust mites and other allergens” (Allersearch Laboratories, 2007, ¶ 7). Allersearch also produces an antiallergy spray similar to Allergy BeGone. This means that we need to differentiate our product from this competitor. We can compete with this already established antiallergy spray by positioning Allergy beGone on price basis. We can use Allersearch positioning to our advantage. They claim themselves as the best saying, “The best way to protect yourself against dust mites and other allergens” (Allersearch Laboratories, 2007, ¶ 7). We can position our product as affordable spray as compared to best because not everyone can afford the best product out there. Our slogan, “The everyday spray to make allergies go away” will show that out product is a good quality affordable antiallergy spray for everybody. Appropriate Price Strategy Cost of production is the main element in deciding the price of a product. Allergy Be Gone being a new product, and first manufacturing venture of Pet palace, needs good estimation of all the costs before deciding on price. A very high price will not attract many customers. On the other hand, if the product is priced too low, people may think of it as a cheap quality product and may not take it seriously enough. There are two popular pricing strategies namely market skimming and market penetration. Skimming, “…tries to sell the top (skim the cream) of a market—the top of the demand curve—at a high price before aiming at more pricesensitive customers” (Perreault, Jr., Cannon, & McCarthy, 2009, p. 464). Skimming works well when product image and product quality, both support that higher price tag, or when the demand of the product is too high. Market penetration, on the other hand, “…tries to sell the whole market at one low price” (Perreault, Jr., Cannon, & McCarthy, 2009, p. 465). This strategy works well when there is small or low market for costly product. Allergy beGone will be positioned as a cheaper but good quality alternate to other solutions so we cannot use skimming strategy here. In addition, Pet Palace is not expecting a customer base of elite class so choosing market penetration will be best for it. Prices can later be revised, depending on circumstances. Conclusion Pet Palace is positive that it has covered all the places that need to be covered and they have reviewed the whole plan over and over. Marketing team is trying their level best to precisely know about the product life cycle of Allergy beGone. Market introduction is the most important stage, and coupons and discounts will ensure a smooth and quick introduction stage. Coupons and discount vouchers not only attract customers but also make people talk about them. This will serve as an added bonus and positive word of mouth will supplement the sales. After careful and through market study consumer analysis, Pet Palace has decided to be market leader in the low price antiallergy sector. A good slogan can boost the promotion as well as word of mouth. It will be remembered by all the people, whether they are pet owners or not. Penetration strategy has been chosen as the pricing strategy as Allergy BeGone will be marketed as low priced affordable product. Allergy BeGone by Pet Palace is giving everybody a chance to enjoy their time with their favorite pets without having to even think of any allergy. It will be the first affordable product, within reach of everybody, that will make everyone happy. Customers will get satisfaction by using a good product with great results. This will bring in sales and that will make Pet Palace very happy. Reference Allersearch Laboratories. (2007). Retrieved June 29, 2010 from http://www.allergyhelp.com/ Perrault, W.D., Cannon, J.P., & McCarthy, E.J. Jr. (2009). Basic marketing: A global- managerial approach (17th ed.). New York: McGraw Hill.
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