The company uses thepremium pricing strategy. This one translates to the fact that their prices areconsiderably higher than the prices offered by competitors in the market. Thiswas previously arrived at by gauging the much people are willing to pay fortheir products in the market. This would have to change because not all peoplewithin the new target market would be willing to pay as much for theirproducts. The new target customers are not necessarily interested in the rateat which the company has specialized or the quality of the products offered inthe market (Ahlstrom & Bruton, 2010).
The fact that there are competitorsin the market who would be able to substitute their products makes themvulnerable to losing customers. It would actually be wiser of the company totry and adopt the pricing strategy where they consider the cost of production.This way, their prices would be justified and well in range with the prices ofthe competing products. The change would definitely have to be gradual andwould also have to involve different stakeholders, and especially the customersin its determination. The new prices of their products would reduce the rate atwhich they seem to be creating an alienation between people of different socialclassesQuestion4Themanufacturer could be said to be the one plays the greatest role in theproduct. The production part is very important. They are the ones who areexpected to be the base component in determining the supply of the products andthe maintenance of the quality (Rovell, 2006).
The supply of products can onlybe maintained if the manufacturer is carrying out production to the rightvolumes, to avoid excess or shortage. Mainly, they are responsible formaintaining the balance between the demand and the supply for the products.They also carry out the branding and packaging of these same products. Thewholesalers are mainly of importance of ensuring that the products are able tomaintain their time and place utilities. They transport them from themanufacturer to the retailers, just in time to replenish their supplies.
Thismeans that the customers will be able to access the products whenever they needto. The retailers are the ones who availthe products to the consumers. They also introduce the aspect of convenience asthe products are availed at convenient places and inconvenient quantities. Forinstance, the customer can buy one bottle of the beverage but it would bedifficult to get less than a carton of the same from the wholesalers. Question3Intensivedistribution is the one which is used for the products currently in the market.
This can be easily identified because it is so difficult to get into ay storeand not come across their products being marketed. This is only evidence thatthey actually take into account the fact that their target market is not aconcentrated one (Schindler, 2012). It is generally distributed equally amongthe different markets involved. Their marketing channels are also an indicationthat the company is actually able to access a great variety of markets andregions. With the target market having a slight alteration, this would notchange. This is because if anything, the volumes of sales were expected toincrease and the only way to ensure that this works to the advantage of thecompany is to ensure that the marketing is intensive and so is the distributionstrategy. Question2Theproduct has three different marketing channels.
One is direct and the other twoare indirect channels. The direct channel is where the customers are able toorder their products online. These orders are made directly from themanufacturers.
The second channel is where wholesalers buy the products fromthe manufactures, sell them to the retailers who then avail these products tothe consumers. The third channel involves there being third party wholesalers.Wholesalers get products from the manufacturers and then sell them to otherwholesalers who now sell to the retailers. From the retailers, the customersare able to conveniently make purchases. With there being a change in the targetmarket, these channels would not be expected to change because the customerswould basically remain at the same level and their preferences are also almostsimilar.
Drastic changes would not be expected. Question1Part2Theproduct is currently at the maturity stage. However, the introduction of thedifferent flavors and a change in the target market would take the product lifecycle back to the growing stage. In the same way, it would be bound to increasethe period of time that the product would remain at the maturity stage. This isan added advantage to the company (Ferrell & Hartline, 2011). The lifecycle strategy of marketing would become even more appropriate for use becausethey would be able to earn even more from the prolonged maturity stage.Question4Theonly modification which would be required in order to be more appealing to thenew target customers would most probably be an introduction of a variety offlavors. This creates wider variety for the customers to pick from.
This wouldjust call for the modification of the product line, to incorporate differentflavors. This is just a simple modification in the products that are present inthe market. However the effect is expected to be very great. This is virtue ofthe fact that availability of variety is expected to attract new customers,those who were previously being put off by the lack of variety. Furthermore thenew flavors would definitely cause there to be an illusion and a perception ofpersonalization.
They would feel that their specific tastes and preferenceswere all being put into consideration during production. This would really beof help in helping the product to take up the uncontested space in the shoppingoffering. It would become more difficult for the customers to substitute theproducts. Question3Theproducts belong to the shopping offering category.
This is because they aredifferentiated to a particular extent and are specification the kind ofbenefits they have to the consumers. Mostly it is to increase the levels ofenergy provided. Due to the specialization, the consumers are definitely afterthis prominent characteristic and would not prefer any substitutes to it. Evenwith the change of the target market for the beverages specially, the offeringwould not have to change at all. This could be attributed to the fact that thisspecialization during production comes out as a method of customization to the consumers.
As a result of the kind of offering category the products belong, there wouldbe great levels of customer loyalty expected. The marketing strategy applied bythe company does not have to change to a very great extent. The only changemade would be the adverts made and the branding to a small extent.
Instead ofonly featuring sports persons, they also ought to feature the youth who are notnecessarily sporty. Question2Thecompany is currently offering a variety of foods and beverages which have the characteristicof being sports oriented. Mostly this could translate to the fact that they doprovide a lot of energy to the consumers. Their products are usually marketedin a very competitive environment, the competition being from other foods andbeverages, most of which are not very specialized. The company is offering itsproducts at a relatively higher price than that of the competing companies(Pride, Hughes & Kapoor, 2012).
It can be said to be product oriented. Theymostly concentrate on ensuring that their products get the reception that theywould anticipate. That is why their marketing as well as other strategies areall directed towards ensuring that the products are being well perceived andtherefore purchased in the market. The tangible aspect s that could beconnected to the company include the unique branding of their products so thatthey can stand out in the market and the large scale production so as to ensurea steady and constant supply in the market. The intangible aspects are thebenefits that the consumers are able to get and the resultant increase incustomer base from the recommendations given.