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New product

• Publicado por Linda Tyler 19 de dezembro de 2020 - Arquivado em Pessoal - #marketing writing  - 213 visualizações
  1. What is the product name? Describe the product. 

  The company is going to launch the new product line of refrigerated whole tropical fruit smoothies, based on the process of flash pasteurizing and cold filling with adding some functional herbs such as seaweed. The list of fruits used for producing these smoothies includes mango, papaya, pineapple, lemon, lime, plantain, avocado, coconut, passion fruit, bananas, plum, apple, guava, strawberry, peach, orange, blackberry, and others. The new process technology makes the product’s taste very close to the original taste of the fruit. The product line includes thirst quenchers, healthy organic juices and health waters under the new brand name Xito . Xito fruit smoothies are functional drinks designed to revitalize and rehydrate the body. They can be offered in 6-packs of 350mls size bottles that are convenient to be taken on the go. The product is naturally low in calories, contains no preservatives and added sugar. The refrigerated fruit smoothies combine naturally refreshing and revitalizing capabilities with the delicious taste of tropical fruits.

  1. Identify and explain which market segmentation variable you are using. When identifying a new product, the following market segmentations variables were considered: geographical, demographic, psychographic, and behavioral. Geographical segmentation is associated with variables such as region, climate, population density, and population growth rate. Variables that refer to demographic segmentation include ethnicity, age, gender, education, occupation, and income. Psychographic segmentation relates to attitudes, values and lifestyle. Behavioral segmentation is based on usage rate, brand loyalty, and benefit sought. Developing a new product under the new brand Xito incorporates the combination of key variables of all these market segmentations.
  2. Why did you choose this method of customer segmentation? Be specific. Geographical and demographic segmentation allows marketers to single out the group of consumers showing its potential as a target market. This group chosen is Hispanic Americans based on their population size that accounts for 15% of the total U.S. population, their location, and impressive rate of growth (33%). In the U.S., the highest density rate of these consumers is in Texas, Florida, California, Nevada, New Mexico, and Colorado, where a warm to hot climate prevails. The average age of this group is 28 years old, and the average income level is $ 37,759. Using psychographic and behavioral variables allow differentiating consumers of this group by purchasing power, average usage, and benefits sought based on social attitudes and active lifestyle, language and taste preferences.
  3. Who is the target market? 

  Consumer segmentation methods allow identifying the most attractive customer segment to target. The target market is 18-35 years old Hispanic Americans, who are young professionals and students of both genders, living in the states with a hot climate. They make about $30-40,000 per year; respond to Spanish-language signage, ads and specials. These consumers reveal their Hispanic preferences for tropical fruit flavors, especially lemon and lime, and other flavors reflective of their native countries, and seek for specific health benefits in their foods and beverages.

  1. What are your product’s benefits to the target market? 

  The naturally refreshing drinks provide specific health benefits such as the thirst-quenching ability, required dosages of vitamins and nutrients, and hydration effect while retaining natural goodness of fruit and true flavor that is very close to the original taste of the fruit.

  1. At what price will your product be introduced? Why? 

  4 ptsThe product lines have similar price ranges. It allows consumers to compare all products offered and identify the most suitable product line by their benefits and taste. Thirst quenchers, health organic juices, and health waters are introduced at a price up to $4.10, which is considered competitive with similar products presented in the market.

  1. What new product pricing strategy are you using? Why? 

  When introducing Xito fruit smoothies into the current marketplace, it is reasonable to use a penetration strategy that implies offering products at a lower cost and in sample form for an initial period.

  1. What objectives will be accomplished by using this strategy? Be specific..

  The usage of penetration pricing strategy accompanied by running ads targeting specific groups of customers allows the company to gain a market share and develop a strong consumers’ base due to encouraging as many as possible potential customers to try a full range of products and luring consumers away from current competitors.

  1. Why is the product worth this price? 

  Actually, the product is underpriced because whole fruit smoothies are considered a unique and innovative product in the market. The price is set as a standard competitive retail price for affordable product lines, which incorporates the penetration pricing strategy. This price allows potential consumers to choose the most suitable product line by taste and benefits.

  1. Identify and explain what prices you should charge at each stage of the PLC? Once the consumers are enticed away from competitors, the price can be raised by $0.30 without much risk of consumers being confused because they understand that the initial offering was a trial and limited time offer. Further, once a strong consumers’ base is gained, the price will be increased by $0.10 to the normal level. During the growth stage, the prices will remain stagnant to maintain position in the market. However, inflation can increase the prices. In the maturity stage, it is important to maintain and increase a market share through lowering prices and reducing costs without jeopardizing quality. Besides, at this stage, the revision of existing products can improve the performance of the product. At the decline stage, the company has to find ways to squeeze cost still more. 

  Linda works as an editor and she is working on writing a music review now. She has always enjoyed working with a variety of literature and being interested in new facts. In addition, she easily finds common ground with many people. She also received her master's degree from American University Washington