KG Photos's Marketing class
Monday, June 10, 2013
Pitch
Our brand of vodka is made with the best of ingredients found from around the world. With water from the Antarctica and pomegranates from Africa to give it just a hint of that pomegranate taste. With it going through the process of creating a smooth velvety taste to it. We are calling it Red Velvet with a clear bottle to see the red color of it with ether a ruby or garnet colored gems lining the bottle in some sort of pattern.
Price
"Pricing new products can be especially challenging. Just think about all the things you’d have to consider in pricing a new cell phone, say the first Apple iPhone. What’s more, you’d have to start thinking about the price—along with many other marketing considerations—at the very beginning of the design process."(Armstrong & Kotler (2011). Marketing pg. 285). Like with everything else it will always be hard to find the right prices to put on a product but for the Red Velvet vodka we have decided to sell it for about $23-$28 and will have species for the holidays and New Years to increase sells of our product. We are doing this which is what "Many companies that invent new products set high initial prices to “skim” revenues layer by layer from the market. Sony frequently uses this strategy, called market-skimming pricing (or price skimming)." (Armstrong & Kotler (2011). Marketing pg. 285). Which we will be able to do with what the bottle design is and with they way it is being packaged as well.
Distribution
“The firm uses several strategies to sustain rapid market
growth as long as possible. It improves product quality and adds new product
features and models. It enters new market segments and new distribution channels. It shifts some advertising from
building product awareness to building product conviction and purchase, and it
lowers prices at the right time to attract more buyers.” (Armstrong & Kotler (2011) Marketing: An
Introduction pg. 262). Which
will be right after Christmas in time for the New Year after that they will be
able to only be able to ether buy it online or in one of the casinos as a gift.
If bought online they will come in a specially made package just for our Red Velvet vodka. “The
slowdown in sales growth results in many producers with many products to sell.
In turn, this overcapacity leads to greater competition.” (Armstrong
& Kotler (2011) Marketing: An Introduction pg. 262).This is
something that has to be looked after so that we are not one of the ones that loses
to the competition. That is way Christmas and New Years will be our best time
to sell our product. Whether online or bought in the story each of them will
come in there own special box made just for it, though as I said be for the one
for the shipping will be a bit different from the one bought in the casinos and
that’s only because it is being shipped in the mail.
Promotion
''The
company launching a new product must first decide on introduction timing."( Armstrong & Kotler (2011) Marketing: An
Introduction pg. 253).
Which we think that around Christmas would be a good time to release our new
vodka, with us targeting women it would be the perfect time to get it as a gift
for someone. "Next, the company must decide where to
launch the new product—in a single location, a region, the national market, or
the international market." (Armstrong & Kotler (2011)
Marketing: An Introduction pg. 253). With us launching the product
around Christmas we will be doing so in a single location to start with and we
will do advertising there as well as commercials to let others know about our product.
We may even do a poster along with a radio commercial to introduce Red Velvet as a prize of some sort.
Product
"So
far, for many new-product concepts, the product may have existed only as a word
description, a drawing, or perhaps a crude mock-up. If the product concept
passes the business test, it moves into product
development.
Here, R&D or engineering develops the product concept into a physical
product. The product development step, however, now calls for a large jump in
investment. It will show whether the product idea can be turned into a workable
product." (Armstrong
& Kotler (2011) Marketing: An Introduction pg. 251). After we get it into a workable product it will go
through many taste tests to make sure that it has that velvety taste to it with
a hint of pomegranates to it. "If
the product passes concept and product tests, the next step is test
marketing, the
stage at which the product and marketing program are introduced into realistic
market settings. Test marketing gives the marketer experience with marketing
the product before going to the great expense of full introduction. It lets the
company test the product and its entire marketing program—targeting and
positioning strategy, advertising, distribution, pricing, branding and
packaging, and budget levels." (Armstrong
& Kotler (2011) Marketing: An Introduction pg. 252).
Target Market Strategy
“Many
companies today are localizing their products, advertising, promotion, and
sales efforts to fit the needs of individual regions, cities, and even
neighborhoods. For example, Wal-Mart operates virtually everywhere but has
developed special formats tailored to specific types of geographic locations”, (Armstrong & Kotler (2011) Marketing: An
Introduction pg177). This is also what
our company is doing by localizing our advertising, promotion and sales to fit
the needs of our customers and where they can buy our product. We are also using
“Gender Segmentation: Dividing a market into different segments based on gender.” (Armstrong & Kotler (2011) Marketing: An
Introduction pg177), as a means to target
women from the ages of about 23 to 35 to sell our vodka to than to men.
Situation or SWOT Analysis
With the marketers of our Red Velvet brand of vodka we had to look everything that would
ether help or hinder us as a company the reason this is always a good idea is because
of the quote definition of what SWOT which is “SWOT Analysis, by which it
evaluates the company’s overall strengths (S), weaknesses (W), opportunities
(O), and threats (T)” (Armstrong &
Kotler (2011) Marketing: An Introduction pg55). This allows us to determine which is our strengths
and weaknesses and allows us to fix our weaknesses and not to miss any
opportunities that are presented as well as look for threats. Which is very
important in case other companies try to compete with our prices and other such
things that my harm our company.
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