Product Marketing - Tips for Successful Green Marketing - Assignment Example

College: Product Marketing As a newly appointed marketing executive, the product of choice to boost the Company’s performance in the local, as well as global market would be biodegradable diapers, branded as “Green Diapers”. The selection of this product is attributable to the rapid growth of consumers’ preference for green products. It is imperative to note that purchase of green products and utilization of green marketing strategies is rapidly shifting from being a trendy marketing approach to becoming a cultural practice. This is happening as additional customers demand for more products deemed to be environment-friendly, not only due to sustainable production methods but also due to the ease of disposal and consequent environmental conservation (Gordon, n. p.). Product Description “Green Diapers” provide users with a wide array of disposal options, that is, tossing, composting or flushing. Additionally, the fact that these diapers are biodegradable implies that, microorganisms which occur naturally, and those that are responsible for decomposition of materials, can easily breakdown or weather the diapers. Further, the nutrients can be recycled into the environment, without leaving behind any injurious residues. The disposable inserts incorporated into “Green Diapers” usually decompose in approximately 50 to 150 days when composted at home. These diapers, unlike the conventional ones can also be flushed down the toilet without clogging the system. This implies that less garbage will be transported to landfills, hence preventing environmental pollution. “Green Diapers” have undergone numerous tests by autonomous laboratories, thus, proving beyond reasonable doubt that they are really biodegradable (Weinberg and Parrs, n. p.).  Market Conditions Based on a market survey conducted by BusinessGreen (n. p.) consumers’ demand for different green products rose from 15 percent in the year 2008 to 70 percent in the year 2009. This trend has continued to grow since then, and by the end of the 2012 fiscal year, demand for green products has reached a high of 83 percent. These consumers posit that they would opt to buy a product deemed to be green, rather than purchase a relatively priced, ordinary product. This trend, therefore, provides a lucrative opportunity for the company, as it ventures into the sale of biodegradable diapers. The prospect appears to be even more profitable, since approximately two-thirds of customers that buy green commodities have upheld this purchasing habit throughout the tough economic times. This serves as a clear indicator that the market for green products is relatively stable, thus providing the company with a competing platform at par with that of ordinary disposable diapers. The statistics also prove that the shift towards green products is not a trend anymore, but a sustainable societal lifestyle. The company can also borrow traits from businesses currently selling green products and pursuing green marketing strategies, since most of these ventures continue to reap benefits like: Increased revenue: with continued growth of the green market there is an increment of opportunities to lure new customers. Further, there is broadening of the customer base through product modification, product innovation and promotion, eventually increasing revenues. Reduced costs: manufacturing of green products involves utilization of fewer and locally available resources to develop products and market them to consumers. This greatly cuts down costs incurred in the production process. Enhanced reputation of brand hence high market value: companies’ attempt to protect the environment through manufacturing and selling green products develops a positive impression among many customers. This, in turn, promotes the brand name and its popularity among consumers. Risk mitigation: numerous studies have shown that green companies can stay ahead of their competitors, as administrations make an effort to enact more rigorous environment regulations to mitigate destructive impacts of pollution and resource exhaustion. To achieve all these benefits, however, it is imperative for the company to guarantee production and delivery of biodegradable diapers in the manner stipulated during marketing. This is due to the fact that many customers are still skeptical about claims put forth by organizations about green products and marketing strategies. Strategy Development This phase of product marketing involves establishing goals that should be attained by the biodegradable diapers. Such objectives could be: to create brand recognition of “Green Diapers” in the general market, to promote brand recognition among consumers who opt for green products, to depict the firm’s commitment to social responsibility, and to demonstrate compliance of the company with legislation relating to environment protection. The marketing strategy developed should then meet the stipulated objectives. Additionally, the marketing strategy should primarily focus on promoting the biodegradable diapers based on their green benefits, thus luring the environmental conscious customers, before gradually attracting conventional diaper buyers. Marketing Mix A proper marketing mix must make an effort to benefit from the strengths of biodegradable diapers, to lessen this unique product’s weaknesses, optimize on the opportunities it presents and, finally, eradicate possible market threats. Creating such a mix for eco-friendly diapers bears resemblance to ordinary marketing approaches, but with a slight twist. Given the fact that, biodegradable diapers seek to uphold environmental conservation, the 4P’s of marketing should lean towards green marketing strategies 1. Product In marketing of green products, three fundamental paths can be adopted and these include: selling of an eco-friendly product, marketing the said product through denoting its green advantages or features, and/or utilizing recyclable marketing process and materials like e-communication and recycled writing materials (Carpenter and Sanders 56). In this situation, the firm’s product plan is founded on the extra value provided by eco-friendly diapers. The additional value is a derivative of resultant environment protection after usage of the distinctive “Green Diapers”, a requirement previously undermined, in ordinary disposable nappies. 2. Price Price has been one of the principal barriers in green marketing. This is because; numerous customers are never willing to pay premium prices for green products. Nevertheless, various green commodities are cost efficient, regardless of their upfront sticker shock rates. Green marketing plans ought to address long term savings, and at the same time strive to find an appropriate price point. This is because; if basic prices are difficult to achieve, the great value of the product will still influence its sales positively. According to Carpenter and Sanders (59), evaluating non-green competitors’ pricing, should be one of the main focus points, when structuring the price of “Green Diapers”. This is because; such an assessment assists in sensitizing customers about the green product’s benefits, other than price. In this case, the pricing plan of the biodegradable diapers is supposed to coincide with the items’ product strategy. This means that the “Green Diapers” brand will have a slightly higher price, in comparison to the other types of diapers, by about 20%. The slightly elevated price is justified by the fact that, the product will be targeting diaper buyers that earn a relatively high income. Further, the price is valid, because of the unique nature of the product, as well as, its additional advantages not present in the usual diaper brands. 3. Place In the past, green products were limited to online retailers and strict fanatics of healthy foods, but this has changed radically over the past several years. Companies have placed an appeal to a broader customer base, by intensifying and choosing product placement while basing it on the product, rather than its green attributes. It should be noted that only consumers that know the benefits of such items, will go forth and buy green products (Carpenter and Sanders 62). Other customers largely rely on easy to find precuts, as well as, cheap commodities. In this situation, the primary target for biodegradable diapers “Green Diapers” will be relatively well off consumers. This is because these people do not question the price of the product, but rather the quality and satisfaction offered by the product. If the product effectively meets their needs, such customers will not shy away from purchasing the item because of the price. For higher specificity, the target market will chiefly comprise of working class mothers. This is because; women are venturing more into employment, compared to the situation in the past, and this is one of the factors largely depriving them of sufficient enough time to raise their kids. Therefore, to effectively juggle family, in addition to job responsibilities, these women are likely to opt for biodegradable disposal diapers instead of the usual diapers. For this reason, the diapers will be availed in locations that are accessible to such mothers; for instance, in malls, shops and grocery stores at both local and international settings. Promotion It is not appropriate to limit advertising or pitches by focusing solely on the green aspects of the product. This is because such green products have better appeal than just the fundamental eco-friendliness. The message portrayed to the customers should focus directly on the benefit that the product will offer to the consumer. For instance, with the new message of global warming, a message about saving the planet would be meaningful to numerous consumers (Carpenter and Sanders 65). However, this message will have a better meaning if the advertisement is more about the personal benefits that will be experienced by the customer like improving a child’s health, as well as, saving money in the long-run. Therefore, promotion of “Green Diapers” should be aimed at stimulation of preliminary sales in the local market and also building up a loyal consumer base, while sustaining long term sales. In many cases, most promotions on biodegradable diapers are printed advertisements in dispensaries and prominent drugstores. This limits the promotion of the product making it necessary to widen the advertisement bases. Therefore, utilization of television commercials and other printed advertisement like newspapers and magazines will boost the promotion of the “Green Diapers”. Additionally promotion should be expanded to include utilization of social media, as this will make it possible to reach a vast customer base within a very short period of time. Marketing Plan Product modification Consumer preferences are becoming dynamic by day, and this is prompting producers to diversify in order to meet the customer’s needs. Therefore, biodegradable diaper consumers need assurance that the product being offered to them is of high quality. The company, therefore, is supposed to produce diapers in different sizes, in order to cater for kids of different ages. Moreover, the diaper pad inserts ought to be developed for optimal absorbency, as well as, odor reduction. The diaper packaging must also be of high quality, in order to depict an attractive color scheme and design that will attract many new consumers. Pricing Despite the fact that, it is fiscally feasible for the company to set premium prices for the diapers, it is necessary for the organization to slightly lower the price. This is because, by lowering the price, the “Green Diapers” will attract more buyers especially from low income earning families. Additionally, lowering the price will increase the sales therefore, compensating for the low priced product and probably present a chance of earning more revenue (Carpenter and Sanders 68). Promotional Programs The organization is supposed to continuously utilize conventional promotional methods, previously discussed in the promotion section. However, the corporation should also take interest in experiential and online marketing of these diapers, in order to increase consumer awareness at all levels (Carpenter and Sanders 70). Distribution Channels The organization should embark on widening the distribution network of “Green Diapers”. This will include not only the key suppliers, such as shopping malls, but minor retailers as well. The diapers should also be made available in the local pediatric hospitals. Online sales, as well as consequent shipping is supposed to be enhanced in order to take advantage of increased popularity of online shopping (Carpenter and Sanders 71). Conclusion Marketing efforts of green products like biodegradable diapers can be measured by using customary methods, such as revenues accrued and customer base attained. Measuring of green efforts assists in, providing transparency bases for future marketing strategies and appealing to consumers to recognize the value of the product. Overall, if properly presented to the customers, “Green Diapers” will be a beneficial product for all people, hence, generating good returns for the company. Works Cited Gordon, Kim. “3 Tips for Successful Green Marketing.” Entrepreneur. 2009. Web. 13 April 2013. Weinberg, Irv, and Carolyn Parrs. “The Tao of Green Marketing.” Marketing Resources for Marketing Professionals. 2009. Web. 13 April 2013. Carpenter, Mason and Gerard Sanders. Strategic Management: A Dynamic Perspective Concepts and Cases. Upper Saddle River, New Jersey: Pearson Education, Inc. 2009. Print. BusinessGreen. Businesses scramble to keep up with green product demand. 2012. Web. 13 April 2013. Read More