Marketing Mix Strategy at Canadian Dessert - Case Study Example

? Marketing Mix Strategy Summary In the recent times organizations are focusing on matching its products and their s’ needs through the use of elements of marketing mix that include products, price, promotion and place (Owomoyela, Olasunkanmi and Oyeniyi 2013). This helps the company to have an advantage over its competitors (module- 5 n.d.). Marketing mix help the company overcome the challenges that are as a result of unpredictable and changing macro environment. The companies embrace this concept by developing new products, actively marketing their products, adjusting their prices and constantly establishing new market for its products (Border 1984). Introduction Consumption of healthy food is an important aspect of staying health and controlling major diseases such as diabetes, high blood pressure, dental problem among other lifestyle related diseases. Many people have been enlightened and are avoiding unhealthy foods. In Canadians are fond of tasty desserts like cakes and ice creams but their major concern is the problems caused by high level sugar consumption especially diabetes and tooth cavity. It is estimated that about 9 million people have diabetic related health complication with at least 20 new diagnoses per hour (Canadian Diabetes Association n.d.). As a result of this, various desert and Ice Cream Company have shifted to use of other sweeteners but most of them have side effects. Xylitol is a sweetener from plant materials with less calories and glucose as compared to sugar thus preventing tooth decay and lowering amount of blood sugar Michelle, A. (n.d.). This paper will critically analyze a Canadian dessert company in regard to their xylitol based products, their target market, positioning, market segmentation and the four elements of market mix. Components of marketing mix Marketing mix comprises various activities undertaken by an organization that is targeting to produce products for a specific group of people (module- 5 n.d.). For instance the Canadian dessert company target urban resident who are aged between twenty years and fifty years who work in various sectors. This is a group of people who are energetic, self-assured, inquisitive, and adventuresome, like socializing and are also healthy conscious. The company then strategizes on providing the customers preferred products, at an appropriate price and distribution channels (Owomoyela, Olasunkanmi and Oyeniyi 2013). The company is also able to reach the target group through marketing and advertising (module-5 n.d.). A good strategy should ensure that the company satisfies the target customers while still meeting its objectives (Owomoyela, Olasunkanmi and Oyeniyi 2013). Product development Product is the most important element of marketing mix plan that a company offer to is target customers and must have unique characteristics that distinguish it from its competitors. Characteristics such as brand name, superiority, freshness, and contents, taste, appearances, wrapping, and writings influences the customers decisions(Owomoyela, Olasunkanmi and Oyeniyi 2013). In Canada, the major prevailing health problem and is attributed to uptake of products containing high sugar content is diabetes and tooth cavity. Most people are worried about these problems are careful about sugar content of their foods. Most companies are tapping into this by providing products that contain alternative sweeteners such as Xylitol. One such company is Montreal, Which is Xylitol- based dessert company that produces ice cream and cakes. The company will offer different range of cakes and ice cream that fit their customers’ needs to eat delicious desserts with lower quantities of sugar. These products will help to boost its competitive advantages compared to other dessert houses that offer similar products but has high sugar content or use other alternative sweeteners that have side effects. The Montreal Company will conduct extensive market research in order to produce quality products for its target customer. According to Kotler (1964), insufficient market research leads to high rate of products failure of about three quarter of new products failing to acquire commercial value. Price Price is the cost of products and services offered by the company. The price is determined by several factors such as cost of production, the competitor’s price, government regulation and taxes, product’s demand, capability of the customers to pay for the product among other factors (Module-5). Product price affect profitability of the company as well influence the product’s demand. Price of products such as dessert that are readily available in the market should be flexible in relation to the changing business environment (Owomoyela, Olasunkanmi and Oyeniyi 2013). The price of the products to be produced by the Montreal dessert house will be affordable to all its target customers who are mostly between the ages of 20 years to 50 years in employment. The unit price of 500 grams of cake and ice cream will be 5 USD plus tax which is affordable to most customers. The price was set considering that most ingredients are locally available as well as the average unit price of the competitors so as to be competitive to avoid losing customers to other company that offer desserts which are delicious but have negative impacts on their health. Since it a new company, the set price will attract customers to consume their products. Place (Distribution) A place is a channel of distribution which a customer can obtain goods and services for use environment (Owomoyela, Olasunkanmi and Oyeniyi 2013).The products and services produced by the company are availed to the customers through different channels of distribution to the areas that are well-situated for them to make a purchase. Distribution as the element of marketing mix includes all the decisions and strategies that facilitate availability of products to its target consumers. The distribution process involves several individuals and establishments that may include retail chains, open markets, institutions and home delivery and wholesalers (module n.d). The Montreal Company will operate two outlets in Montreal city in Canada that will sell their products their products to their directly to their customers. The customer can consume their products in their establishments but they will also offer take away services. Their establishments will have a sitting place with a sitting capacity of thirty customers each. To be able to meet their objectives of serving twenty to sixty four customers a day, the company will also offer home and office delivery to customer who call their outlets or use their website to book online. The company will engage a logistic company to deliver it products to their customers’ office or house. The company’s management however understands that the home delivery service may have logistic problem and therefore it will encourage customers to use online their payment module. The company will establish ways obtaining feedback from its consumers such as having an interactive website where customers can post their feedback, establish its presence on social networks and conducting road shows across Canada. Promotion Promotion is any method used by the company to ensure that the target market segment is aware of their products or services environment (Owomoyela, Olasunkanmi and Oyeniyi 2013). These methods include advertising on print Media and television, bill boards, outlet displays, public relations, word of mouth among others traditional and modern modes of marketing. According to (Owomoyela, Olasunkanmi and Oyeniyi (2013), promotion is an important component of marketing mix that include advertising, public relation, direct selling, periodical offers and any marketing tool that a company uses to ensure that people know their products. Initial research by Montreal dessert house show that its target consumers are innovate, dynamic, enlightened, adventurous and have easy access to information. Montreal dessert house target people include the urban dwellers of working class who are the main consumers of their products, medical practitioners who can recommend their products to their patients and general public as well as distributors of their products .In order to reach the target audience, Montreal dessert house will use five methods of promotion namely advertising, sales promotion, direct marketing, personal selling and public relation. Montreal will advertise its products on a magazine known as ‘What’s cooking magazine’ which is available in print form and soft copy once monthly for six months. On the television advertising, the company will design a 30 seconds advert to appear on TNS television channel at least once per day for the first month of its operation. The company will sponsor a health food program in this channel for one month. In regard to sales promotion that will help boost short term sales, Montreal will also put a coupon on every copy of the ‘What’s Cooking Magazine’ so that the magazine readers can get their products at half the price. In addition to that, the company will offer its products at half price every Sunday the first three months of its operation. The target group of consumers prefers individualized marketing methods rather than traditional methods of advertising (Constantinides 2006). Montreal will market directly to its customers by sending short messages on their mobile phone and emails. In public relation, Montreal will establish a customer care desk in its retail outlets to solve customers and other stakeholders’ queries. The company will sell its product directly to the customers from its outlet and therefore personal selling will not be used at the initial stages. Recommendations The target market for Montreal desert house consist of well enlightened people who have access to internet. The group consist of single people as well as people who have young families therefore the company will also develop products that are recommendable for the growing children. The company should discouraging consumption of alcohol in specific distribution establishments to accommodate diversity among their customers. Conclusion Marketing mix is include all the process that ensures a company is able to distribute its products and services to the target customers, satisfies the need of their customers as well as meeting its objective in a dynamic business environment. It’s focused on ensuring that the company has a competitive over its competitors. The Xylitol- based products have a competitive advantage since they contain low level of glucose content as compared to other desserts. Montreal Company will adopt a comprehensive marketing mix plan that ensures flexibility since business environment is dynamic. References Borden, N. H. (1984). The Concept of the Marketing Mix. Journal of Advertising Research Classics, Volume II. Harvard Business School. Retrieved from: http://www.commerce.uct.ac.za/Managementstudies/Courses/BUS2010S/2007/Nicole%20Frey/Assignments/Borden,%201984_The%20concept%20of%20marketing.pdf Canadian Diabetes Association (n.d.). Diabetes and you. Retrieved from: http://www.diabetes.ca/diabetes-and-you/). Constantinides, E. E. (2006). The marketing mix revisited: Towards the 21st century marketing. Journal of Marketing Management, 22(3/4), 407-438. Retrieved from: http://ehis.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=3e973ade-dc4f-4cfa-a5be-ec4c97534e06%40sessionmgr104&vid=2&hid=102 Kotler, P. (1964). Marketing mix decisions for new products. Journal of Marketing Research (JMR), 1(1), 43-49. Retrieved from: http://ehis.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=9d978462-eb14-4bb1-8517-8af2df91689b%40sessionmgr10&vid=2&hid=8 Michelle, A. (n.d.). Tips for a Clean Mouth and Appliances. Warpeha prosthodontic dental clinic. Minnesota. Retrieved from: http://www.warpeha.us/wp-content/uploads/2011/12/Xylitol.pdf Module-5 (n.d) Marketing mix: Business studies-senior secondary. Retrieved from: http://old.nios.ac.in/srsec319new/319EL20.pdf Owomoyela, S. K., Olasunkanmi, S. and Oyeniyi, K. O. (2013). Investigating the impact of marketing mix elements on consumer loyalty: an empirical study on Nigerian breweries plc. Interdisciplinary Journal of Contemporary Research in Business, 4(11), 485-496. Read More