MKT205_Project

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Feb 20, 2024

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1 MKT 205 Project Michael Galor Southern New Hampshire University MKT 205: Applied Marketing Strategies Amy Mangueira December 8, 2023

2 PRODUCT “healthy” carob (chocolate substitute) bars PERSONA Alice, 34 DEMOGRAPHICS Location: The target market will be located in a suburb of Chicago, Illinois in a single family home. Marital Status: The marital status will be married with one or to children aged from 4-11. Occupation and Income: The persona will be either a stay-at-home mom or work from home with a potential to be a social media influencer that has an income of at least $50,000 or more. Education Level: The persona will have a college degree or equivalent. PSYCHOGRAPHICS Hobbies and Interests: Hobbies and interests of the persona will have an active lifestyle or gym-goer. Wants and Preferences: The persona will have a specific diet like low-sugar, gluten free, or vegan while keeping the sweet taste. Personal and Professional Goals: This persona will be health conscious and educate others by social media. Shopping Habits and Preferences: The persona will shop at a higher end grocery store like HyVee, Kroger, or Meijer. Lifestyle: This person will want to find healthy alternatives that are "trendy" or "faddish". PROMOTION FIRST MARKETING CHANNEL Description of first marketing channel: Our primary marketing channel for promoting our product will be social media. We can leverage social media to create, share, and promote

3 content while engaging with users. Specifically, we will utilize YouTube as it has over 2.7 billion monthly active users; YouTube provides a vast audience for our business to connect with ( YouTube statistics 2023). Through YouTube, our marketers can create a business channel, post content such as videos and links, and engage with users through comments, likes, and shares. YouTube also offers advertising options, allowing our business to target specific demographics, interests, and behaviors to reach their desired audience. Our marketers can run paid ads and sponsored videos or boost their organic content to increase visibility and engagement. Why this channel is appropriate for this persona: Our primary marketing channel for promoting our product will be social media, particularly YouTube. According to the data, among social media users aged 27-43, 36% consider YouTube an excellent platform to learn about brands, while 48% find it easy to search for information (Mintel Academic, 2023). When learning about brands and researching information, YouTube outperforms other social media platforms like Instagram, Facebook, TikTok, Twitter, and Snapchat. We can utilize YouTube to advertise our product and create informative videos that compare our product to standard chocolate bars and our competitors as a healthy alternative. Of the users aged 27-43 years old, 74% have posted on social media, which in turn can help advertisement as they may share our videos or information from our ads (Mintel Academic, 2023). SECOND MARKETING CHANNEL Description of second marketing channel: The secondary marketing channel we will use is email. We will send promotional messages and newsletters to a targeted audience via email. It is a cost-effective and efficient way to reach many potential customers. By building an email list, our marketers will create a database of email addresses and thus encourage website visitors, customers, or prospects to subscribe to our mailing list. This can be done through website sign- up forms, social media campaigns, or offline events. Once an email list is established, we will segment the subscribers based on various criteria, such as demographics, interests, or purchase history. This allows our marketers to send personalized and relevant content to different segments, increasing the chances of engagement and conversion. Why this channel is appropriate for this persona: According to the data, among people aged 27-43, 80% send emails at least once a year and 46% at least once a day. When looking at females, specifically, 82% sent an email at least once per year, and 43% at least once per day (Mintel Academic, 2023). Email marketing platforms make it possible to automate the process of sending targeted emails to subscribers based on specific triggers or actions. With personalization, we can address recipients by their name, tailor content to their preferences, and send personalized recommendations. This enables our marketers to efficiently engage with our audience and drive better results.

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4 PRICE PRICING FACTOR: TARGET-MARKET PRICE SENSITIVITY Target-market price sensitivity: Factors such as income levels, consumer preferences, competition, and availability of substitutes influence price sensitivity in different target markets. Understanding the price sensitivity of a target market is necessary for determining the optimal pricing strategy to maximize sales and profitability. Businesses in price-sensitive markets must carefully consider pricing decisions to avoid losing customers to competitors. Market research, historical sales data, and pricing experiments can help determine price sensitivity and make informed pricing decisions. How pricing factor is used to determine pricing: Since the persona of our target market is a Millennial woman, we will have a high price sensitivity based on the data. According to the data, 76% believe that inflation limits how much money they can save, and thus, if they need to save money, snack foods are the first grocery items to be sacrificed (Mintel Academic, 2023). Our persona, 72% of the time, is willing to switch to a cheaper brand to save money (Mintel Academic, 2023). After understanding this information, we need to ensure our price for the “healthy” carob (chocolate substitute) bars is a high price sensitivity because if the price is too much for the income of our persona, they will not buy it in order to save money. PRICING STRATEGY: PENETRATION General advantages and drawbacks of penetration pricing strategy: A penetration pricing strategy involves setting a low initial price to attract a large portion of the market, followed by potential price increases based on market conditions. Penetration pricing quickly gains customers' acceptance and adoption of a product or service while generating high sales quantity. It enables a company to lower its marginal cost, realize economies of scale, and attain marketplace dominance. Moreover, it can create positive word-of-mouth and increase goodwill, making retailers and distributors happy. Penetration pricing can hurt a company's growth in the long run. Low prices attract bargain hunters or those with low loyalty, who may leave when prices rise. Such low prices can also damage brand image and trigger a price war. Instead, adopt a sustainable pricing strategy for long-term success (CFI, Penetration pricing 2023). Specific advantages and drawbacks of penetration pricing strategy: When attracting new customers, penetration pricing can be an effective strategy for businesses that produce healthier alternatives to traditional chocolate bars. Millennial women, who are health- conscious, are more likely to be attracted to such products if they are priced lower than their competitors. This can encourage them to try the product and become loyal customers.

5 Additionally, penetration pricing can help encourage the trial and adoption of healthy carob chocolate bars. The lower initial price can reduce the perceived risk of trying a new product, making millennial women more willing to give it a chance. Penetration pricing strategy can have certain drawbacks. One of them is that it might create a perception of lower quality among millennial women who could associate lower prices with inferior quality. Suppose the price of healthy carob chocolate bars is significantly lower than that of competitors. In that case, it can lead to doubts about the product's quality and ingredients, hindering adoption and trust among the target market. Another challenge that can arise from this strategy is related to profitability. Penetration pricing often involves initially selling products at a lower profit margin to gain market share. However, this can pose challenges in terms of profitability, especially if the production costs of healthy carob chocolate bars are already high due to the use of premium ingredients (CFI, Penetration pricing 2023). PLACE CHANGES IN THE MARKETPLACE Change in the marketplace: The 2020 pandemic and technology-driven millennials have led to a surge in e-commerce shopping, making online sales of our products more profitable. How the change addresses the distribution of products to my persona: As per the findings of a survey conducted by ESW in 2022, it was observed that approximately 73% of millennials had expressed their intentions to spend the same or even more amount of money online in the coming year, 2023. Using e-commerce websites is not solely convenient for millennials, but they exhibit a strong sense of comfort while navigating through these platforms. This can be attributed to their status as digital natives. They place considerable reliance on the reviews and recommendations provided on these platforms (Khoros, 2023). DISTRIBUTION CHANNEL Potential distribution channel and why it is appropriate for my product and persona: Millennial women are recognized for their inclination towards online shopping and convenience (Piñon, 2023). E-commerce provides them with a simple yet sophisticated way of browsing and purchasing products from their homes or while on the go, eliminating the need to visit physical stores. With e-commerce retail distribution, the nutritious carob chocolate bar is easily accessible to millennial women, irrespective of location. This product can be conveniently ordered from anywhere, even if the consumer needs access to a physical store that stocks it. PRODUCT

6 How product should be marketed in relation to meeting the needs and wants of my persona: When targeting Alice, our marketing approach must mainly encompass online and offline strategies as an alternative. Alice is interested in high-quality products at a reasonable price. Our carob chocolate bars are created using premium ingredients, and our marketing campaigns must reflect this when promoting the product and on its packaging. Alice wants a healthy alternative to ordinary chocolate bars, as fitness is part of her lifestyle. Our online marketing strategy should include discounts or coupons to encourage Alice to purchase our product. Additionally, we should work with local department stores to make our product available for in- person shopping. How bringing this product to the marketplace helps support and build the Chocolate Bliss brand: Introducing a new, high-quality, and reasonably priced product will only enhance the reputation of the Chocolate Bliss brand. By adding a healthy alternative carob chocolate bars to our product portfolio, we can expand our offerings and cater to customers in Mid-west states. This will attract new customers who will start to purchase our other products if we promote them well. As our brand gains more public awareness, our revenue will increase, allowing us to expand our reach and product line further. EVALUATION How to evaluate the effectiveness of the marketing plan: To determine the effectiveness of a marketing plan, it is important to collect data on both the target market and competitors. One way to do this is by conducting market research surveys to gather information on customer satisfaction, brand awareness, and purchasing behavior. This data can help analyze customer behavior over some time and help identify which areas of the marketing plan have been prosperous and which ones need improvement. Competitive analysis helps evaluate competition by gathering data on pricing, product offerings, and marketing strategies. Use this info to differentiate and gain an advantage—track KPIs such as sales revenue, market share, and customer retention rates to assess success. Compare KPIs to industry benchmarks and historical data to determine ROI. Companies can optimize their marketing strategies and make informed decisions by monitoring and analyzing data on their target market and competitors, leading to better business outcomes. Two quantitative data collection tools I could use to evaluate the marketing plan: Quantitative surveys are a valuable tool for assessing brand awareness among the target audience. Marketers can determine the effectiveness of their marketing efforts in creating brand recognition. Surveys can also help determine the likelihood of consumers purchasing carob bars. Marketers can gauge the potential demand for their product and evaluate the effectiveness of their marketing strategies in driving purchase intent. Moreover, surveys can

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7 identify the preferences and tastes of the target audience. Marketers can gather insights to tailor their marketing plan to meet their target market's specific needs and desires. Surveys can also assess customer satisfaction levels with carob bars. Marketers can evaluate the effectiveness of their products and marketing strategies in meeting customer expectations and generating positive experiences. In addition, surveys can collect demographic information about the target audience, such as age, gender, income, and location. This data can help marketers understand the characteristics of their customer base and segment the market effectively, allowing for more targeted marketing efforts. Experiments can help evaluate the potential market for carob bars, and various methods can be employed. These include conducting taste tests and surveys, experimenting with different pricing strategies, running controlled marketing experiments, and exploring multiple packaging designs, branding elements, and distribution channels. It is also important to identify target markets, compare carob bars with other chocolate alternatives, and collect customer feedback to obtain valuable insights to help inform and improve our marketing plan. By combining these approaches, we can gain a comprehensive understanding of the market landscape and develop a strategic marketing plan that meets the needs and preferences of our target audience. Two qualitative data collection tools I could use to evaluate the marketing plan: Face-to-face persoanl interviews with the target audience can provide valuable insights into their preferences, needs, and perceptions of carob bars. This feedback can help evaluate whether the marketing plan effectively addresses their concerns and desires. By asking potential customers about their thoughts on taste, texture, health benefits, and overall satisfaction, marketers can assess if the marketing plan effectively communicates the unique selling points of carob bars. Additionally, interviews can help understand how carob bars are perceived compared to similar products in the market, assess brand awareness and recognition, and explore potential barriers to purchase. Case studies are real-world examples that demonstrate how marketing plans have been executed and their impact on the target audience. By analyzing data and metrics from the case study, marketers can evaluate if the plan has successfully met its goals, such as increasing brand awareness, improving customer engagement, or driving conversions. Case studies provide insights into customer behavior and their response to the marketing plan. They help identify the strengths and weaknesses of the marketing plan, inform future marketing strategies, and can be used to compare its performance against competitors. Case studies provide a chance to learn from both successful and unsuccessful outcomes.

8 REFERENCES New Strategist Editors. (2010). Who’s Buying Information and Consumer Electronics, 3rd ed: Vol. 3rd ed . New Strategist Publications, Inc. New Strategist Publications, I. (2010). Household Spending : Who Spends How Much on What: Vol. 15th ed . New Strategist Publications, Inc. The New Strategist Editors. (2015). Best Customers : Demographics of Consumer Demand: Vol. 11th edition . New Strategist Press, LLC. US marketing to millennials report 2023 - consumer analysis . Mintel Store. (2023, September 27). https://store.mintel.com/report/us-marketing-to-millennials-market-report YouTube statistics 2023 [users by country + demographics] . Official GMI Blog. (2023, November 6). https://www.globalmediainsight.com/blog/youtube-users-statistics/#:~:text=Monthly %20Active%20Users%20on%20YouTube&text=YouTube%20has%20more%20than %202.70,population%20uses%20YouTube%20every%20month. Penetration pricing . Corporate Finance Institute. (2023, October 15). https://corporatefinanceinstitute.com/resources/management/penetration-pricing/ Khoros. (n.d.). Top millennial spending habits & buying behavior . Top Millennial Spending Habits & Buying Behavior. https://khoros.com/blog/millennial-buying-habits

9 Piñon, N. (2023, March 24). Millennials plan to stick with online shopping even as stores rebound, new survey finds . CNBC. https://www.cnbc.com/2023/03/24/millennials- online-shopping-over-stores.html

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