Palmer Jackson Inc (Cincinnati Ohio) has developed a new line of sports beverages which have the added benefit of antioxidants. They have developed several elements of their brand strategy with your agency Accuity Brands which is a branding consultancy, where you are a marketing strategy specialist. They have also hired Marketing Studies Incorporated, a well respected marketing research firm, to work with the management team.
P&J are faced with several primary marketing strategy decisions:
[...] Promotion The campaign we want to launch for the new line of products seeks to distinguish “Green from its rivals by promoting its antioxidant content. The promotion will be designed, firstly to drive awareness of Green Ox and its key point of differentiation: antioxidants. To this end, we will use advertising for education. A website will be created which will five all the information about the products and their benefits for health and physical conditioning. The whole campaign will emphasize our competitive advantage. Because of its antioxidant content, Green Ox is a functional drink that is truly different from its competitors. [...]
[...] Price Regarding the prices of the products of our main competitors, and the cost of a 20-ounce bottle of our product; we believe that our retail price should be $ The production of Green Ox is indeed much more expensive than other sports drinks because of the added cost of the antioxidants; therefore the cost is about $ We cannot lower the retail price, because otherwise the company will not make enough margins on its products. Pricing the product above $ 0.79 will lead us to compete directly with the market leader Croc-Ade but with a new and non established product. [...]
[...] To encourage people to make a second purchase, we could include a discount coupon in the packages for the next purchase. For example, this could encourage people to try another flavor. Finally, specific advertising will be designed for each flavor . Now let us assume that you have just presented your analysis and recommendation to the management of Palmer Jackson. It is 4:15 p.m., and the president asks you, “What's the most important thing we don't know that we need to know?”. [...]
[...] This segmentation will allow Green Ox to have a better focus (GASSS) on all marketing efforts. We choose to target these two specific segments because they fit with our product line, and with the image we want to give to our brand. More specifically, Thinkers see natural antioxidants as a primary benefit. And it is therefore a good opportunity for Green Ox, which offers products with the added benefit of antioxidants. As they are well educated and actively seek out information in the decision-making process; they might have heard about the studies which have been made on the role of antioxidants in reducing the risk of certain types of cancers and be more likely to purchase them. [...]
[...] Users are a valuable segment that Green Ox should target as well, because they are enthusiastic about new possibilities, and indulge in a lot of sports and exercise. Overall, their characteristics fit into the Green Ox product line. Being dynamic and looking for stuff and excitement, this segment could be a great opportunity for Green Ox. We believe that Green Ox should focus on these two segments and not on the others because the other four last segments (Achievers, Believers, Strivers and Makers) would not be willing to buy Green ox products. [...]
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