Marketing Strategy For New Product Launch – Basil Yogurt

The marketing strategy plays a prominent role for entrance with a new product in the market. The company has planning to introduce new product in the market of US for which they need to analyze the whole market in effective manner.

In the following part, there will be detailed discussion on the product being launch in the market with concentrating on their target audience as well as various strategies.

1. What is the product name?  Describe the product.

Basil Yogurt.

• It is 100% natural with full of herbs with special kinds of yogurt mix and dynamic decoration
• It enhances the healthy lifestyle among the user of yogurt with unique taste.
  1. Identify and explain which market segmentation variable you are using 5

The psychographic market segmentation variable will mostly used by the company in which it covers:

• The Segment that are health conscious or health seekers
• The segment that want healthy yogurt but cannot compromise with their taste
• The segment of anti-healthy devotees that are mostly driven by the taste textural as well as situational experience of consuming yogurt
• Segment of flavor cravers who are loyal to their brand
• The segment of product lover, who eats yogurt due to the reason of health benefits

1. Why did you choose this method of customer segmentation?  Be specific. 3

The reason of choosing behind psychographic market segment in due to the reason:

• The company would able to get knowledge about the lifestyle of the consumer through which they can easily target them.
• It provides overall understanding of the consumer which enables the company to execute effective marketing to highly responsive segment.
• The company would able to identify the underlying needs and motives of the targeted consumers.

1. Who is the target market?  Be specific. 7

• The US is mixture of cultures as well as it is one of the biggest business center. Therefore, the company can target the hub of population for their product
• The US has huge population in which mainly includes young generation. The company will target the people with the age between 14- 35 for their product.
• The population of US are mostly seeker of taste as well as their spending habits are quiet high which help the company to target those people as their product are tasty as well.
• Some of the population of US is health conscious therefore; the company will target such segment for Basil Yogurt.
• Based on the socio-economic indicator, the company will target those who have high, low as well as middle level of income for their product.
• The spoonable yoghurt enjoy high penetration which is mostly eaten by three-quarters of adults of US, therefore, the company will target those segment for basil yogurt.
• The women as well as children has a great influence in the family, the company will target mainly women as well as children for their product.

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

• It help in improving the digestive system of the consumers, it contain bacteria as well as their texture makes it easier to digest.
• The product intakes low fat ingredients. It is pure healthy food which allows them to cover the deficiency of iron and calcium that make the healthy lifestyle in the target market.
  1. At what price will your product be introduced?  Why?

The price of the product will be decided by keeping in mind per cost of production. The price of the product will be range between $4to $7 due to the certain reasons such as:

• The price of the competitors is high which help in competing in the competitors.
• The product is new in the market therefore; low price would help the company to target the consumer easier.
  1. What new product pricing strategy are you using?  Why?

Penetration pricing strategy will be used in which in the starting the price of the product will be low for limited period to gain market share. There are certain reasons such as:

• It would help the company to enter in a market in effective manner and also help in to grow the base of consumers as well as revenue
• This strategy would help the company to stave off hungry competitors or to combat the efforts of competitors.
• The pricing strategy generates high quantity of sales which allow a firm to improve their economies of scale as well as lower the marginal cost.
• This strategy would allow the consumer to accept as well as adopt the product in efficient manner.

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

• The company would able to achieve maximum share in the market.
• This strategy would fulfill the objective of competing in the market as well as able to survive in the competitive market
• It also helps the company to enhance their goodwill in the market when consumers are able to find a bargain in the product.
• The objective of reaching out maximum consumers will be fulfilled through this strategy

1. Why is the product worth this price?              

The product comes in the category of basic product. It is made of natural herbs which promote healthy lifestyle; therefore this is the main reason that the product is worth this price.               

1. Identify and explain what happens to each of the 4 Ps decisions you make for your product, at each stage of the PLC? 16 pts.

• Name of PLC Stage: Introduction, Growth, Maturity, Decline
  1. Product decisions for  your product
• In the first stage the company will offer basic product of basil yogurt
• In the stage of growth, company will offer product extensions, try to introduce new flavor with basil yogurt
• In the maturity stage, the company will diversify the brand and product
• In the last stage, it would be time to phase out weak items.
  1. Price decisions for  your product
• In the stage of introduction of product, the company will take decision to use cost-plus price to sell their product within minimum margin.
• At the time of growth, the price to penetrate market will be decided by the company.
• In the maturity stage, the price will be set according to the price of competitors which may beat or match with them
• At the end, the price of basil yogurt will be cut down to survive in the market.
  1. Place decisions for  your product
• in the first stage, the company will build selective distribution
• In the growth stage, the company will build intensive distribution
• In the maturity stage, build more intensive distribution
• In the declining stage, the phase comes out of unprofitable outlets.
  1. Promotion decisions for  your product
• In the introduction stage, the company will use heavy sale promotion to entice trial
• In the growth stage, the company reduce to take the advantage of heavy consumer demand
• In the maturity stage, the sales promotion increase to encourage brand switching
• In the decline stage, sales promotion reduces to minimal level.

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