Growth Stage In the growth stage, the firm seeks to build brand preference & increase market share. The impact on the marketing mix is as follows: • Product :- The product quality is maintained and additional features & support services maybe added. • Pricing :- The price is maintained because the firm enjoys increasing demand with little or no competition. • Distribution :- Sales channels are diversified & increased as demand increases & consumers start accepting the product more & more. • Promotion :- It is aimed at a broader audience.
In creating a new company and implementing innovative sales systems, we would like to take some of our competitors business by initially drawing customers in with offering lower prices. Furthermore, in using this pricing strategy our hope is that we will be attracting customers to come in more frequently because they find a higher benefit or value when visiting our store. In turn with gaining more customers this pricing strategy will help us grow rapidly as a new
Kudler Fine Foods is an epicurean grocery store for the connoisseur in which noteworthy growth with a focal point on increasing revenue, advancement concerning the effectiveness of operations, and shortening the consumer acquisition cycle is Kudler’s main objectives. Enclosed in this term paper is the significance of marketing research pertaining to the expansion of Kudler Fine Food's marketing line of attack and identification of the regions in which Kudler calls for additional market research is necessary. In addition, a comprehensive analysis concerning the value of competitive intelligence and breakdown with relation to the improvement of Kudler Fine Foods marketing strategy and tactics is scrutinized. Marketing Research Market research is an essential function in all aspects of a business’s approach when it relates to growth and diversification. In view of the fact that Kudler Fine Foods is increasing its services it then needs to be familiar with its competitors.
After experiencing substantial growth, Kudler Fine Foods is now interested on increasing the loyalty and profitability of its consumers through the expansion of services, improving operation efficiency, and increasing the consumer purchase cycle (Apollo Group, 2004). Market research is the first step that Kudler Fine Foods must perform in order to increase customer loyalty and profitability. Market research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions (Kerin,Hartley,Berkowitz &Rudelius, 2005). This is performed for the purpose of reducing risk and uncertainty therefore allowing managers to make better decisions (Kerin,Hartley,Berkowitz &Rudelius, 2005). The market research process consists of five steps; define the problem, develop a research plan, collect relative data, analyze the data, solve the problem (Armstrong &Kolter, 2005).
Different businesses should apply different strategies.However, some of those strategies are more efficient than the others.The most common used strategies are introduced below: Promotion Strategy is commonly used to promote the products. It has 2 types as push and pull. The push strategy is normally seen as an attractive big discount.It pushes the distribution to “push” the offering into the marketplace in order to achieve the objective to promote the offering.It minimizes one’s need for advertising. The pull strategy is to use distribution by minimizing the price during the first stage of promotion. It aims to “pull” the demand into the market.
But that's why we do planning, hoping for the best and getting ready for the worst. In times of overcapacity or market decline, strategists can decrease prices to an extent which could still cover up the costs and let the business up and running. That's the case where survival gets higher priority as compared to profits and sales. 5. Making your product a trendsetter Quality is what determines how much a product should cost.
IMPACT OF PRODUCT PACKAGING ON CONSUMER’S BUYING BEHAVIOR In nowadays competitive environment the role of package has changed due to increasing self-service and changing consumer’s lifestyle. Firm’s interest in package as a tool of sales promotion is growing increasingly. Package becomes an ultimate selling proposition stimulating impulsive buying behavior, increasing market share and reducing promotional costs. A package attracts consumer’s attention to particular brand, enhances its image, and influences consumer’s perceptions about the product. Also package imparts unique value to product’s , works as a tool for differentiation, i.e.
Purpose of sales promotion; The basic purpose of promotion is to disseminate information to the potential customers. Sellers use incentive-type promotion to attract new customers, to reward loyal customers and to increase the purchase rates of occasional users. Objectives of sales promotion; • To attract the new customers • To inform the public about the new products • To capture the major share of the market • To stimulate the demand by popularizing the products • To create brand image Sales promotion is effective when; • A new brand is
These factors, along with heavy emphasis on promotion, tend to help the product make significant inroads into the market. The high price also helps segment the market. Only nonprice-conscious customers will buy a new product during its initial stage. Later on, the mass market can be tapped by lowering the price. If there are doubts about the shape of the demand curve for a given product and the initial price is found to be too high, price may be slashed.
It is a major component for any business to excel. According to “Not All Repeat Customers Are the Same: Designing Effective Cross Selling Promotion on the Basis of Attitudinal Loyalty and Habit” by Yuping Liu-Thompkins & Leona Tarn discourse covers brand loyalty and habits, that results for contextual cues. The author argues: “Consumers exhibit behavioral loyalty when they repeatedly patronize a business, often to the exclusion of competing offers. Although such repeat purchases are desirable from a financial perspective, it is not optimal to take behavioral loyalty at face value, because consumers' repeat purchases may be driven by different reasons, such as favorable attitude, switching barriers, and sunk costs (Dick and Basu 1994). Identifying the drivers of behavioral loyalty can help properly allocate resources among marketing tactics (Seetharaman 2004) and enable the creation of customized marketing programs for maximum effectiveness”.