As a demonstration on how someone can use the 4′ P’s, product, price, promotion and placement at their business, I am going to use a small popcorn establishment to demonstrate this concept. We will call it, “It’s Popcorn Time”.
PRODUCT:
Our positioning statement: To families who enjoy spending time together, Its Popcorn Time is popcorn with many different flavors that the whole family can enjoy. With it’s Popcorn Time popcorn, is a snack that you and your family can enjoy, any time of the day.
It is important the we differentiate It’s Popcorn Time popcorn from our competitors. We will do this though our patent process. We will educate consumers on the quality of our product compared to our competitors though our patent process.
PRICE:
High Price Gourmet Market
It is important that we do not overprice or under price it’s Popcorn Time popcorn. A price that is too low can cause a feeling in the customers as not being of good or high quality. A price that is too high can give the customers the feeling of being “taken.” The price we choose for It’s Popcorn Time will lead to a different level of demand for our popcorn. The price will have an impact on It’s Popcorn Time marketing objectives. Its Popcorn Time cost to produce and distribute the product will determine the profit margin. The Financial Advisor mentioned earlier that we have long-term low cost contracts with manufacturers and suppliers.
Perceived – Value Pricing Strategy
The perceived value pricing strategy is made up of several elements: Image, performance, quality, customer support, and delivery. Though our marketing efforts, we will communicate and enhance our customers perceived value as a gourmet popcorn.
It’s Popcorn Time business buyers will receive a bulk / wholesale pricing. We should expect lower profit margin on these sales. These buyers will order direct.
Seasonal Pricing and special-event pricing
We will utilize seasonal pricing to increase sales during seasons when our sales are low. We will offer discounts on grand openings of stores to introduce our products to the neighborhood. We should expect lower profit margin during these promotional pricing events.
PROMOTION:
Promotional ideas for It’s Popcorn Time: coupons, rebates, contests (tickets to movies or sporting events) , sweepstakes (chance to win Laz-y-boy-good place for a person to enjoy there snack), bonus packs (45% free), samples, temporary price reduction, and premiums (logo’d merchandise), Slotting Allowances at retail stores(for new products to gain distribution)
Sales promotions are a good way to introduce your products to a new market place. Its Popcorn Time is planning to expand to the Tri-State area. However, it has been founded that sales promotions do not tend to yield long-term buyers. It is important that we tie our sales promotions to increase brand awareness. To use sales promotions as a tool to increase brand awareness, we need to tie these promotions to new store openings and IPT’s anniversary’s or birthdays. By doing this we can release press releases about the company and how it ties in with our sales promotion.
Consumer Groups: individual consumers and businesses
For instance, to the lower income levels, we could send out coupons or offer rebates. To young adults we could have contacts to offer movie tickets. A good promotion to a business would be to offer temporary price reduction for a special event the business may be having such as a company picnic.
DISTRIBUTION:
Through market research, buying methods currently would be 35% from the storefront, 30% from catalog or web sales, and business buyers would direct order. Market research also indicates that Geographic distribution could increase sales outside the Philadelphia area by as much as 50% the first year. This is based on the contact with the National Flower and Gift Basket Company. Those people we once lived in the Philadelphia area and are now living in other states and counties wish to have a way to purchase Amish products.
These new distribution channels will have an impact on our suppliers and manufacturers. We currently have low-cost contacts with these companies. As we expand into the tri-state area, and add distribution channels such as the website and National Flower and Gift Basket contact, the demand of products from our suppliers and manufacturers will increase. It is important to ensure that these companies can handle the product output to meet our growth.
