For Ann Harris

STRATEGIC MARKETING 16

Strategic Marketing

Student Name:

Date:

American InterContinental University

Abstract

This paper looks into strategic and marketing objectives that must be attained with reference to the specified product. It discusses the product’s attributes which will enable it gain a good positioning in the market. Essentially, this paper shows how the product will address the need identified in the market. Integrated Marketing Communication with respect to making effective communication to customers has also been evaluated in this paper. This entails functions such as advertising and personal selling. Furthermore, this paper also evaluates how the organization will attain a competitive advantage through adoption of several strategic approaches.

Introduction

Strategic marketing is one of the most important business functions if an organization is to achieve a competitive marketing advantage (Schirmer, Ringle, Gudergan & Feistel, 2017). Strategic managers must establish frameworks that are utilized from product development to commercialization. In the modern business organizations, strategic objectives must be in line with corporate strategy. In most times, corporate strategies entail profitability and growth while strategic objectives entail implementation of all processes from product development to commercialization (Schirmer et al., 2017). In this light, it is thus highly important for the corporate and strategic managers to relate closely and to attain effective communication.

With regard to launch of a new product in the market, strategic managers must be able to define various parameters such as the target market so that necessary measures may be put in place accordingly. In addition, there should be predefined goals and objectives that need to be achieved within a particular period of time. Most importantly, the strategic managers need to ensure that all approaches and functions undertaken are in line with core organizational values as well as the overall organizational goals (Lockrey, 2015). For instance, if an organization’s core value is low priced products, then the new product should also be able to attain cost leadership. This paper looks into applicable strategic marketing strategies that need to be adopted so as to market the product while targeting a particular market segment.

Discussion

Product

67% of all US adults are either overweight or obese (Leeflang, 2011). There have been campaigns to help the US population adopt ways in which they can reduce excessive intake of sugars, fats and salts. Excessive intake of these elements has been found to be predisposing factors to hypertension, diabetes and heart conditions. This means that there exist a gap in the market for products that have low composition of these elements. This paper specifically looks into a breakfast cereal package that has low amounts of fats, sugars and salt. Consumers need breakfast cereals which have a maximum of 12 grams of either element in every 100 grams of the product (Sun & Govind, 2017). In this paper this breakfast cereal will be referred to as BFC for easy reference.

BFC will mostly target young to middle-aged males and females who have been searching for breakfast cereals that have low sugars, salts and fats. It has been observed that this category of individuals is always selective when bound to make a purchase decision. They spend more time on shelves trying to pick the best of breakfast cereals primarily based on compositions of these elements. More so, this category of individuals is also price sensitive when making a purchase decision. This means that price is still a critical factor when they are making a purchase decision.

In this light, it is thus evident that there exists a gap in the market which entails lack of a breakfast cereal that has the lowest composition of sugars, fats and salts (Sun & Govind, 2017). The market segment described above is watching their weight so as to avoid being predisposed to diabetes, hypertension and heart conditions. More so, this category of consumers want a product that is low priced. Hence, BFC should attain cost leadership and should have low composition of the mentioned elements. In addition, the product needs to have a greenish packaging as it normally gives an impression of a product being healthier. Notably, marketing of this product should primarily emphasize on composition of fats, sugars and salts as well as its pricing. These two factors will be effective in attracting the target market.

Goals and Objectives

The short term goal of this product is to penetrate the market locally before reaching out for globalization. In the first year, the aim is to specifically make the target market aware of BFC’s availability on the market. Making them aware will result to a good response from the market as there is already a gap in the market. It is not expected that the first year will experience huge returns as there may be challenges experienced due to the fact that customers will have to keep up with the new flavor. BFC will be introducing new flavor due to change in the compositions. Some of the target customers may not be able to keep up with the new flavor and hence market responsiveness must be reviewed during the first year. Essentially, the aim of the first fiscal year is to penetrate the market and to acquire customers’ responsiveness which will give the green light regarding whether customers are satisfied.

With regard to long term goals, a break-even point must be attained first through a cost-volume profit analysis (Nikabadi, Safui & Agheshlouei, 2015). This will enable the organization to learn the volume of sales that need to be sold so as to start registering profits. However, it will be imperative to establish market responsiveness first. After the responses have been collected from the market, the next step will involve attainment of long term goals. This entails penetration the country’s market through promotional approaches such as advertising. However, it is important to note that customers’ behavioral patterns must be established so that necessary modifications can be implemented especially in line with changing consumers’ tastes and preferences.

Target Market

As earlier highlighted, BFC will be targeting individuals who are watching their weights as well as those who want to have controlled dietary. As outlined herein, 67% of all US adults are either overweight or obese (Leeflang, 2011). These conditions predispose them to Diabetes, Hypertension and hear conditions. To avoid excessive intake of sugars, fats and salts, this category of individuals is looking for food products that have low amount of the above elements. Specifically, though even teenagers have been established to watch their weight, this product specifically aims at attracting young to middle-aged adults who have to make a purchase decision while on the shelves. BFC will be branded in a way that informs the target market about the composition of the elements as a strategic approach. Essentially, this is the primary target market in the American market. Targeting this market will enable attraction of a secondary target which entails individuals such as teens who also do not want to be overweight or obese. For instance, it has been found out that young girls between ages 9-13 have their self-esteem affected as their bodies grow immensely during that time losing shape and hence these teen girls would quickly adopt this product (Nikabadi et al., 2015).

Competition

There are many players in the cereals industry that compete primarily based on pricing and flavors. However, customers’ tastes and preferences have changed and they want cereals with low fats, salts and sugars (Leeflang, 2011). This means that competition may not have an impact during introduction of the product in the market. However, with time it is expected that major industry players may introduce competing products and hence the organization must lay out strategies that will enable the organization to compete. The core strategy in this entails cost leadership. Cost leadership is one of the major factors that appeal to customer even before quality and/or quality (Lockrey, 2015).

Maintenance of a market segment may require the organization to ensure that customers’ present needs are met effectively. Reviewing customers’ feedbacks and responses will be highly important in this case. Any strategies to modify the product’s attributes such as flavors or differentiation should be done based on data collected from the customers. Actually, differentiation enables an organization to attain value proposition of a particular product (Lockrey, 2015). It will be very important for the organization to have product differentiation so as to effectively meet customer’s varying tastes and preferences. More so, product differentiation will also enable the product to compete against any other similar products or those that may be introduced in the near future. Cultivation of customer loyalty and trust is also highly important in ensuring that competing against other similar products is effective. This can be attained by personalized services to customers so as to make them feel part of the organization.

Product Features

As earlier pointed out, BFC has low compositions of sugars, fats and salts. This will be highly different from other competing products which have relatively higher amounts of these elements that predispose individuals to Diabetes, Heart conditions and Hypertension. BFC will enable consumers to improve their dietary behaviors through avoidance of these elements. In addition, BFC will also be introducing a new flavor which is unique and appealing to the target customers. More so, the organization will attain product differentiation which entails provision of varying flavors all with low compositions of sugars, fats and oils.

Additionally, the product will be low priced so as to attain cost leadership as a strategic plan. In as much as customers want breakfast cereals which have low compositions of the said elements, they want products which are low priced. Today’s consumers’ trends entail access to quality products and services at relatively low prices (Kotler & Armstrong, 2013). Hence the organization must meet both of these aspects if a good market positioning will be attained. More so, product uniqueness in terms of flavors, packaging and composition of the said elements is also critical in the marketing processes. Consumers need to have products they can identify with which can only be attained through product uniqueness (Kotler & Armstrong, 2013).

Core Strategy

The core strategy in line with overall organizational values and goals entails elements composition as the core value of the product. This is in line with the organization’s vision and mission of ensuring that products attain quality and low pricing. As it has been shown herein, the core value of BFC is in line with an identified gap especially in the American market. Young to middle-aged adults are looking for products that have low amounts of fats, sugars and salts. This shows that the product not only attains organizational goals but also meets a competitive advantage in the diverse American market. More so, the product is able to address an existing need in the market.

Marketing Mix

Integrated marketing communication IMC entails a number of business functions that must be attained so as to effectively communicate to the stakeholders in this case customers (Baidya, Ghose & Maity, 2014). This will entail a number of procedures such as promotion, distribution channels, personal selling and direct marketing among others. In this case, the organization must be willing to invest in promotional activities so that penetration in the market may be successful. First, it is important for an organization to ensure that the right personnel have been charged with responsibilities with respect to attaining effective communication to the customers.

The first strategy entails advertising. This has been around for years. However, since recently advertising is taking other forms such as internet and social media advertising. In this regard, it would be imperative for the organization to adopt internet advertising as it is cheaper and faster (Ataman, Heerdec& Mela, 2010). Internet users are ever increasing and hence meeting them online would be a plausible idea. More so, social media advertising can also be done. In internet advertising, it has been established that users are more likely to watch promotional videos as opposed to reading long and wordy paragraphs. In this light, it will be a very good practice to create videos with testimonials which will be used in internet advertising especially in the social media (Ataman et al., 2010).

More so, this strategy will enable the organization to closely interact with customers where feedbacks can be given instantly. In addition, it will be possible to collect reviews and feedbacks which can be used in evaluation of consumer behaviors. More so, the organization can as well hire the services of firms which offer advertising services. However, the organization should be keen in evaluating whether there are proportional returns in sales made as well as in meeting various objectives. However, it is important to note that internet advertising may not proportionally result to making more sales.

Personal selling can also be attained more efficaciously in this age of e-commerce. The organization needs to establish products’ online presence where personal selling may be attained (Leeflang, 2011). This entails attending to customers’ queries and concerns as well as making sales online. E-commerce has been described as the future of retailing. This means that the organization needs to lay out strategies which will be effective in attaining competence in e-commerce. Actually, most consumers do not have time for visiting stores and hence go online and search for products which are then ordered. This thus means that online presence will be highly critical for the organization which will also help to attain other aspects such as personal selling through online interactions with the customers. However, it is important to note online presence is risky due to malicious internet activities such as hacking where crucial data may be accessed by malicious individuals (Leeflang, 2011). It is thus important to invest in cyber security.

Public relations are also very important for an organization. To attain a good public image, it will be very important for the organization to ensure that corporate social responsibilities are attained in a cost and time effective manner (Ataman et al., 2010). For instance, labor laws and human rights must be attained for all employees as compromising will lead to a blurred public image. This will eventually have an impact to sales made. In addition, the organization should also focus on use of green energy as well as avoidance of pollution. There is a category of consumers who only want to utilize products that are created using clean energy so as to feel as indirect contributors of pollution avoidance (Ataman et al., 2010).

Price

Pricing is a process that needs to be undertaken in keenness while involving key stakeholders such as the suppliers. The organization needs to select suppliers who will provide raw material as relatively lower cheaper prices. To attain this, consideration of suppliers who do not incur high costs of transportation may be considered as their cost of unit supplies is likely to be low (Furrer, Tereza & Sudharshan, 2007). More so, strategic managers should ensure that optimal and lean production are attained which will help attain low pricing. In addition utilization of resources should focus on optimal use so as to attain optimal pricing. On the other hand, adoption of technological tools may also help in low pricing. Improved technology enables attainment of some specific business functions at relatively lower costs (Furrer et al, 2007). Essentially, pricing should be a process where all factors that contributes to high pricing need to be addressed.

Channels of Distribution

The most applicable channel of distribution of the product will entail online selling. In this age, traditional shopping is expected to go extinct in years to come (Kotler & Armstrong, 2013). In this light, it is thus imperative for an organization to meet the needs of the future. Online stores should be advertised where customers will be able to place orders online and deliveries done. More so, online selling will enable easier competition as well as easier examination of customers’ behavior. Introduction of a new product without establishment of its online presence will obviously lead to challenges in penetrating the market. However, it is important to note that the organization needs to hire internet marketers who have outstanding skills in online selling (Kotler & Armstrong, 2013). This will help the organization to effectively attain competiveness in the market.

Customer Relationship Management

Customers’ interactions are highly important in cultivation of their trust and loyalty. In online selling, interaction with customers can be attained effectively through online platforms such as the organization’s website. The queries and concerns by the customers should be responded to in a timely manner so as to win their trust (Lockrey, 2015). The organization should thus establish mechanisms which will enable effective online interactions with the clients. All concerns addressed by the customers must be addressed where this promotes the customers’ attitude towards the organization. Online interactions with the customers should always attain efficacy so that a good relationship can be maintained.

Conclusion

BFC can penetrate the target market if the right strategic approaches can be adopted effectively. The product has attributes such as; differentiation, cost leadership, low compositions of sugars, fats and salts as well as flavors which will help the product attain a good market position. The organization needs to ensure that customers’ loyalty and trust are cultivated through maintaining close customer relations especially through online interactions. On the other hand, it is imperative to note that all strategic objectives should be in line with corporate strategy as well as the overall organizational goals.

References

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Baidya, M., Ghose, K., & Maity, B. (2014). An empirical investigation of the effect of advertising in shaping the relationship between sales and price of two entrepreneur brands in India. Asia-Pacific Journal of Business Administration, 116-126.

Furrer, O., Tereza, M., & Sudharshan, D. (2007). The impact of resource-strategy correspondence on marketing performance - financial performance tradeoffs. Journal of Strategic Marketing, 161-181.

Kotler, P., & Armstrong, G. (2013). Principles of Marketing. New York, NY: Prentice Hall.

Leeflang, P. (2011). Paving the way for “distinguished marketing”. International Journal of Research in Marketing, 76-88.

Lockrey, S. (2015). A review of life cycle based ecological marketing strategy for new product development in the organizational environment. . Journal of Cleaner Production, 1-15.

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