Competitive Advantage of the product:
The focal point of our company is to give best services to trade alliances, which are more worthwhile in returns. The main questions can be asked e.g. “Where can we get the highest return?” and “How much influence do we have with the trading partner?”
Our most business transactions such as taking orders, confirming orders, invoicing and payments were processed manually and as many of our distributors were smaller service provider, there’s a clear chance to them to get the latest technology with the most evident business strategy by just implementing an e-business project.
Now with the new product we also plan that our whole business transactions are processes electronically, by a simple dialup connection and batch transfer of documents, across more than 150 trade alliances. The distributors are operational with the touch screens, which are linked with their computers, not only to gather and secure all the sales data throughout the day and uploaded all their orders and invoices but to download news about products and their pricing and their sales commission calculation automatically and simultaneously. Moreover, the evolution process is still there and the company is ready to enter into the “Next Generation” era with more futuristic technology, to make their business more profitable. The wireless technology will be used to make transactions in real time and trade alliances will be equipped with the blend of phone/Personal Digital Assistant (PDA) devices using the general packet radio system (GPRS) facility. All the information will be made through these devices with the usage of 802.11 radio technology; however, the GPRS facility is used when a distributor’s vehicle is away. Despite of the ease of these preliminary accomplishments the advantages are seamless and unlimited. The technology will provide the paperless environment, hassle free process and the real time information. All the past laborious errands will be replaced with avant-garde techniques of real time business.
In order to plan the marketing strategies for our product of fresh fruit juice, an appropriate informational base is required, this is called marketing research. Marketing research is the systematic gathering, analysis, classification, and interpretation of marketing information. The sequential steps to follow when undertaking market research are as follows, whether the research is formal or informal:
- Recognition of the problem
- Preliminary investigation
- Gathering and analyzing factual information
- Reaching a conclusion
The use of the quantitative methods is the time-honored approach to a study of market potential, investigation of potential customer reaction to different marketing strategies and analyses of the effectiveness of advertising. Given a good sample design, efficient coding and tabulation, accurate analysis, and common sense in drawing conclusion, one can get good results from such methods.
The strategy formulation is one of the most important factors influencing the success or failure of marketing of any product. The strategy is either competitive or cooperative. In our case, we will use the competitive strategy.
We will offer product of fresh fruit juices in the profitable market segment to close off any entry points; raise buyer switching costs by offering low-cost training to users; raise the cost of gaining trail users by keeping prices low on items new users are most likely to purchase; or increase scale economies to reduce unit costs.
Two types of survey research techniques are available- the questionnaire and the interview. When the survey subject matter is complicated interviews are virtually required. Interviews may be conducted personally or by telephone. Questionnaire sent by mail or the online surveys have the advantage economy in comparison with most interviewing techniques.
Testing Market acceptance:
Our product can reduce risks by first investigating the market reaction to a product of fresh fruit juice. This can be done by test marketing. The important thing is to discover the probable reaction of customers in the market as early as possible. If their response is negative, the product can move slowly- or even abandon the product.
The proper starting point for our product in the market is an accurate determination of the profit potential.
The concept of customer satisfaction has become increasingly critical in the present business world. At one time the accepted philosophy was expressed as “let the buyer beware”. In contrast, today’s newer philosophy holds, “let the seller beware”. Today’s sophisticated buyers feel they should be able to purchase products that are safe, reliable, durable, and honestly advertised.
The customer's trust can be achieved through "fairness". It is almost impossible to create customer's satisfaction without efficient, effective system and competitive and reasonable cost and price structure. All the transactions with customers must be completed on time and to satisfy all the concerned persons. The processes must be well conceived and well executed. Customers trust those organizations where their expectations met. So well execution of a transaction is not enough. Any organization’s ability to meet these new and higher expectations distinguishes it from its competitors.
Achieving customer acceptance is of obvious importance if the business hopes to earn profits. Because customer contacts constitute an integral part of business operations, they are often viewed as something other than public relations (Primeaux, 1970).
Although the main product of the company is fresh fruit juices but the company has also two other products in the pipeline. These products are beverages and fresh milk bottles. The products in the pipeline are consistent with the existing product line.
The main purpose of this expansion in product line is to increase profit and thereby contribute to the long-range growth of the company.
The pricing implication depends whether the competitors are superior or inferior in terms of credit terms, delivery arrangement, personal attention of top executive, and willingness to stand behind the product.
In order to run a profitable and smooth business it is necessary that price must be adequate to cover total cost plus margin of profit.
Total cost covers three elements:
- Cost of goods offered for sale
- Selling cost which includes the direct cost of the sales person’s time as well as the cost of the advertisement
- General overhead cost applicable to our product. This cost also includes the cost of the office supplies, utilities, taxes, office salaries, and management salaries
Thus we decide to market our product in a lot less price than our competitors in order to increase product acceptance in the market (Kehoe, 1972).
If our product would not sell at our initial price then we will cut the price at less than our total cost. The price would cover all marginal or incremental costs- that is, those costs specifically incurred to get the added business. In the long run, however, all overhead costs must be covered as well (Haynes, 1962).
Advertising is the impersonal presentation of a sales-creating message to large group of people. The primary goal of advertising is to draw attention of the people towards the existence of our product.
Frequency of advertising is an important question for our product. It is much better that institutional advertising should be done regularly. Attempts to stimulate interest in fresh fruit juice product should be part of a continuous advertising program. One-shot advertisements, which are not part of a well-planned advertising effort, lose much of their effectiveness in a short time.
It is necessary that the advertising media should reach but not overreach the present or desired market. From among the many media available, our product must choose those that will provide the greatest return for the advertising dollar.
Selection of the right combination of advertising media depends upon the type of business and its governing circumstances. In this particular case Internet, television and newspapers are the most appropriate medias for advertising.
It is necessary to plan the budget for adverting very wisely. Adverting and sales promotion efforts should be woven into a carefully planned program. This involves a determination of amounts to be spent for advertising and supplementary sales promotion. Haphazard, uncoordinated efforts may constitute a waste of business resources.
Following are some of the advertising principles upon which the successful advertiser regularly depends:
· Advertising should be truthful, honest, and in good taste
· Advertising must be regularly and consistently used for maximum impact
· The advertising message should reach the right people- the potential customer clientele
· The fresh fruit juice product should have factual knowledge of its market so that the advertising will be properly designed with appropriate appeals
· Each type of advertising should fit into a total advertising program designed for maximum sales impact
One often hears the statement that it pays to advertise. A little reflection upon these principles of successful advertising reveals this to be only a partial truth. Only effective advertising actually pays.