MKT205_Project

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Southern New Hampshire University *

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MKT 620 X1

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Marketing

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Feb 20, 2024

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1 MKT 205 Project Gavinn Castillo Southern New Hampshire University MKT 205: Applied Marketing Strategies Timothy Ashton December 10, 2023

2 PRODUCT semisweet chocolate baking chips PERSONA Anna, 30 DEMOGRAPHICS Location: Ideally the location would be anywhere in the city or suburbs with a nearby grocery store. Apartment complex, or house. A neighborhood in which the mid income in 50k and up. Marital Status: Maritual status does not apply. Children are a plus though, middle schoolers and under. Occupation and Income: Stay at home parent, employee, baking student. Medium household income level 50k and higher. Education Level: No necessary level of education needed. PSYCHOGRAPHICS Hobbies and Interests: Hobbies such as baking and doing activities that can be done with children. Interests include exploring the latest baking options out there in the market. Wants and Preferences: Some of their wants is to have their sweet tooth craving satisfy while doing a fun activity with their children. Looking for alternatives to a less sweet chocolate. Trying to cut down on sugar, and explore less sweet options. Personal and Professional Goals: As a professional, perhaps looking into trying a semi sweet product to develop new baking goods. Someone who is looking to expand their product options, ideally a baker, to be able to offer a less sweeter product such as chocolate chips, muffins, etc. On a personal level, it could be a person trying to cut down on sweets, and by starting with a semi sweet option could work. Or vice versa, someone who is trying to explore their sweet tooth. Our persona ideally is trying to explore a new semi sweet product that can be incorporated baking goods for her kids. Shopping Habits and Preferences: Persona's shopping habits and preferences include shopping in person and online. Looking for samples prior to making the purchase

3 Lifestyle: Working parent who enjoys to bake and wants to give their child some sweet options, without going to far. Enjoys baking and trying new things. PROMOTION FIRST MARKETING CHANNEL Description of first marketing channel: The first marketing communication channel that the company will use if a traditional channel, in-person events. By going through a traditional channel, the company will be able to promote their product in person and get to know their market face to face. An in-person event can provide an all time experience, They will be able to see the product, smell it, taste it and hear all about the product. Why this channel is appropriate for this persona: A traditional in-person channel is appropriate to the persona created because of the age that has been put on this persona. The persona created is a mother in her 30s who enjoys baking and trying new baking products while also having a love for chocolate. This persona would want to test the product prior to buying it as well as being able to see what else the product has to offer. Ideally these semi sweet chips are a perfect options when it comes to baking goods, and even as a quick snack. SECOND MARKETING CHANNEL Description of second marketing channel: The second marketing communication channel would be a digital channel, video.Through video the company will be able to capture the product's options. A video will perfectly promote the product and show the consumer what they can do with it. Giving the consumer potential new ideas for its consumption. Why this channel is appropriate for this persona: As a mother who enjoys baking, a video will make it much easier to really sell the product to this persona. Ideally, this persona spends time watching tv and or shows, in which the company can easily incorpteated the product through a commercial video or even use platforms such as youtube to put out a video about the product. PRICE PRICING FACTOR: COMPETITOR PRICING Competitor pricing: Competitor pricing often plays a significant role when it comes to determining the price of a product or service. Customers often compare prices among different brands before deciding on their final purchase. As a company, you would'nt want to charge a significantly higher price than that of your competitors, because it could result on the lose

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4 potential customers. One thing to consider is the brand of the competitors versus your own. Sometimes the popularity of the brand can over power the price, and thus causing the company to be able to charge a higher price than other companies can afford to, therefore its important to know exactly what companies/brands you are going up against. On the other side, you also want to make sure your prices are not significantly lower than your competitors because it could cause a negative perception of the product. If your prices are too low, customers /consumers may perceive your product as being cheap. Having an understanding of your competitors' pricing will help your company have an idea of where they stand in the market. How pricing factor is used to determine pricing: When it comes to determining pricing for a new product there are three main factors the company must consider; market research, competition, and cost of production. Market research comes first, knowing the target audience and ideally create the perfect target market persona for the product. Through competition research, as a company, you can get an idea of what your competitors are charging and determine if you can offer a similar price. Finally, cost of production, knowing how much it will cost you to make the product and company's profit. It will be irrelevant to automatically charge a lower price than your competitors, if it takes the company double the costs to product the product or vise versa. Through these steps, a price can be set for the new product of Chocolate Bliss, semi sweet chocolate chips. PRICING STRATEGY: PENETRATION General advantages and drawbacks of penetration pricing strategy: "A penetration pricing strategy is when a company sets a low initial price to get as much of the market as possible to try the product". This type of strategy is ideal for companies who are entering the market with a new product and want to test the waters. Although this can be a good strategy at first, over time it can set some setbacks for the company.Advantages of market penetration strategies include quick diffusion and adoption of your product in the marketplace, incentives to be efficient, discouragement of competition, and creation of goodwill. Disadvantages include lower profit margins, possible harm to your company's image, and the risk of a pricing war. Specific advantages and drawbacks of penetration pricing strategy: Some of the advantages of penetration pricing is high adoption and diffusion, through this it enables a company to get its product out quickly and have customers be attracted to it instantly. The low and high quality product will attract new customers but it does depend on how known the company is. If its a well established company, customers are more likely to trust the quality of the new product versus when its a brand new company that they are not familiar with. Another advantge will be using the goodwill method by offering promitions right after entering the market, such as discounts and specials. This will attract customers and also have them come back for more.

5 Through this, the company can build up their customer number and then eventually raise their price to increase their profitably while still keeping the same number of customers .The downfall though is that if the company decides to raise their prices over time, they can potentially loose their gained customer. For a company to really make a profit, penetration is not a strategy that can be used long term therefore its only a short term solution to the introduction of a new product. PLACE CHANGES IN THE MARKETPLACE Change in the marketplace: Online shopping has significant increase throughout the years, therefore this is one purchasing habit that I would like to explore. How the change addresses the distribution of products to my persona: The persona created for this new product belongs to the millennial generation, therefore online shopping is something this persona is highly knowledgable in. "According to a 2022 research by a Berkshire Hathaway Company,80% of millennials do most of their shopping online" (Cumbul, 2023). Making the product online available, fits in perfectly with our ideal target persona. Ideally, this will be the most convenient way of shopping for such persona. DISTRIBUTION CHANNEL Potential distribution channel and why it is appropriate for my product and persona: A potential distribution channel I recommend would be retail. I think it would be the most affordable and efficient channel to reach our persona. Taking into consideration that we have chosen. persona who is a mother and in her 30s, chances of this persona going into her local supermarket are much higher than her visiting individual stores or company websites for buy specific products. It would be much more convention to our persona to have this new product available to her at the same stores she would normally shop for groceries, essentials and what now. Having a retail store that also has an online shopping site with delivery or pick up options available is also an important part of this distribution channel. PRODUCT How product should be marketed in relation to meeting the needs and wants of my persona: Our product can be marketed by focusing on the specific needs and wants that the persona looks for in a product. By emphasizing things such as ease of use, convenience, and accessibility, you can attract our targeted person more quickly. The marketing strategy should focus on promoting a message that resonates with the persona. Marketing in areas that your

6 persona would most likely frequent is also a way to effectively market this new product in relation to the needs and wants of the persona. How bringing this product to the marketplace helps support and build the Chocolate Bliss brand: It is very important that our semi-sweet chocolate chips have an image that is approachable and attracts our potential consumers without hesitation. To ensure a positive brand awareness to the public, we will need to use a slogan, a picture or video that strongly grasps our consumers feelings to an extent where they can relate it to their daily lives. By providing to our customers, a high quality product at a reasonable price, it could bring positive awareness about the brand overall. Customers would be intrigued to try other company products and Chocolate Bliss could potentially gain new and long-term customers. EVALUATION How to evaluate the effectiveness of the marketing plan: There are a few methods one can use to evaluate the effectiveness of a marketing plan. Such methods can range from surveys to focus groups, quantitative and qualitative data, social media research, case studies, website and competitive analysis. Two quantitative data collection tools I could use to evaluate the marketing plan: One specific quantitative data collection tool that I can use are interviews. Through interviews the company can collect data on customer needs and opinions. “The face-to-face setup allows the researcher to make clarifications on any answer given by the interviewee” (Belyh, 2019). Through one on one interactions with customers, the company can better understand what it is that the customer truly needs and thinks about the product. Another quantitative data collection tool that I can use are quantitative surveys. By creating a quantitative survey, it will help the company have a better idea on how the product brand is succeeding and what critics are saying about the product. “The use of statistics to generate and subsequently analyze this type of data adds credence or credibility to it, so that quantitative data is overall seen as more reliable and objective” (Belyh, 2019). Surveys can help make positive changes and improvements on the product according to actual data collected by customers and consumers. Two qualitative data collection tools I could use to evaluate the marketing plan: One qualitative data collection tool that I could use in order to explain how the marketing plan can be evaluated would be qualitative surveys. “Qualitative surveys use open-ended questions to produce long-form written/typed answers. Questions will aim to reveal opinions, experiences, narratives or accounts. Often a useful precursor to interviews or focus groups as

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7 they help identify initial themes or issues to then explore further in the research” (Deakin, n.a).Through this qualitative data, the company can aim to obtain data and opinions from their customers and targeted market as fast as customer shopping preferences, satisfaction and expectations on products. A second qualitative data collection tool that could be used would be case studies. “Case Studies are a qualitative design in which the researcher explores in depth a program, event, activity, process, or one or more individuals. The case(s) are bound by time and activity, and researchers collect detailed information using a variety of data collection procedures over a sustained period of time” (Creswell, 2014). Through this tool one will be able to acquire rough data for an extensive period of time that will focus on certain habits of the targeted market. This will help the company better understand if such a marketing plan applies to the target market or if it needs revising.

8 REFERENCES Owens. (2022). Chocolate Confectionery . Mintel Group Ltd. https://reports-mintel- com.ezproxy.snhu.edu/display/1102787/?fromSearch=%3Ffreetext%3Dsemi %2520sweet%2520chocolate%2520chips%26resultPosition%3D5# Scott. (2023). Baking and Mixes. Mintel Group Ltd. https://reports-mintel- com.ezproxy.snhu.edu/display/1157829/?fromSearch=%3Ffreetext%3Dchocolate %2520baking%26resultPosition%3D5%26resultPosition%3D1# Claritas . (n.d.). https://claritas360.claritas.com/mybestsegments/#zipLookup Location strategy . (n.d.). https://webapps-cdn.esri.com/Apps/location-strategy-for-business/#/ insights Owens. (2022). Chocolate Confectionery . Mintel Group Ltd. https://reports-mintel- com.ezproxy.snhu.edu/display/1102787/?fromSearch=%3Ffreetext%3Dsemi %2520sweet%2520chocolate%2520chips%26resultPosition%3D5# Scott. (2023). Baking and Mixes. Mintel Group Ltd. https://reports-mintel- com.ezproxy.snhu.edu/display/1157829/?fromSearch=%3Ffreetext%3Dchocolate %2520baking%26resultPosition%3D5%26resultPosition%3D1#

9 Claritas . (n.d.). https://claritas360.claritas.com/mybestsegments/#zipLookup Location strategy . (n.d.). https://webapps-cdn.esri.com/Apps/location-strategy-for-business/#/ insights Team, C. (2023, October 15). Penetration pricing . Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/management/penetration-pricing/ Owens. (2022). Chocolate Confectionery . Mintel Group Ltd. https://reports-mintel- com.ezproxy.snhu.edu/display/1102787/?fromSearch=%3Ffreetext%3Dsemi %2520sweet%2520chocolate%2520chips%26resultPosition%3D5# Scott. (2023). Baking and Mixes. Mintel Group Ltd. https://reports-mintel- com.ezproxy.snhu.edu/display/1157829/?fromSearch=%3Ffreetext%3Dchocolate %2520baking%26resultPosition%3D5%26resultPosition%3D1# Claritas . (n.d.). https://claritas360.claritas.com/mybestsegments/#zipLookup Location strategy . (n.d.). https://webapps-cdn.esri.com/Apps/location-strategy-for-business/#/ insights Team, C. (2023, October 15). Penetration pricing . Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/management/penetration-pricing/

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