Edible Arrangements Product Development Strategy

Edible Arrangements Product Development Strategy 

Product Development Strategy

Edible Arrangements’ marketing department has the sole responsibility of developing services that will not only see the company retain its current customers and attract new ones, but also ensure that customers always consider Edible Arrangements’ products an first priority when buying (Krum, 1969).   That role is achieved through development of a marketing strategy, and putting in place all the necessary needs to have it implemented to enable the company to achieve its primary objectives, that is increase sales and subsequently profits (Krum, 1969).

In addition to the presentation that is due to be presented to the company CEO, the introduction, and issuance of coupons will help promote the marketing activities enabling the business to achieve its objectives. 

Introducing In-store Promotional Coupons

Other than the integral marketing strategy, the introduction of coupons in the market is likely to stimulate demand, as well as provide a platform to fast sale products that risk expiration while in our possession. Coupons are tickets that can be redeemed at specific outlets for company products, with a discount or commission attached to it (Kaufman, 1991).

The introduction of coupons at Edible Arrangements looks beyond having customers make purchases at their primary places of residences, with the coupon they can just buy from any outlet even while in overseas markets with the full benefits. Edible Arrangements has for several years of its operations noted that outside what the company specializes in the offering, there have been other products that go hand in hand. It is therefore in the best interest of the company to facilitate its clients in easily getting these products. Thus, the coupons will also be applicable in selected businesses to purchase specific services and goods that compliment or supplement Edible Arrangement’s products (Kaufman, 1991). This is majorly aimed at creating value addition to the customers, and installing the sense that as a company we care about customers which in the long run will increase customer loyalty (Dhar & Winer, 2013)..

The service will have some experience attributes that will enable customers to use it with ease. First, is to give it easy accessibility such that anyone who qualifies for it gets it without undue hindrances. It can be available online, and the conditions of qualifying for one is to register and be a regular customer for some time (Kaufman, 1991). For the service to be appealing to the customers, it must have great features that include being usable at the most convenient period to the customer (Dhar & Winer, 2013). The marketing team, through its customer relations section, will ensure it offers the best assistance whenever needed to ensure the customers have the best experience with the service.

Use of Technology to Promote the Service.

Technology is today’s nerve center for any business offering, particularly services ("Technology-Driven Online Marketing Performance Measurement", 2014). Unlike tangible products, services can be offered by the use of technology, improving efficiency, quickness, and convenience. Coupons can come in many forms, as tickets or even as numbers that can be fed into computers to enable a customer to redeem his or her product.

It is, therefore, worth noting that technology is central to all these. First, it specifies that numbers can use the coupon online by redeeming the unique coupon code at check-out. Other than that, technology particularly the internet will be central in obtaining these coupons ("Technology-Driven Online Marketing Performance Measurement", 2014). Customers do not need to appear in person in any store to get them, they can apply online and after being reviewed, the customers can be given unique numbers to redeem the coupon or special online.  Customers will not have to go into the stores, but can make use of virtual shopping through apps and promotional coupons available on their smart phones (Dhar & Winer, 2013).

Quality of Service. One of the Marketing Team’s roles is to conduct market research in its broadest manner. The main essence of market research is to find out what customers expect what they get (Freeman & Dart, 1993). Measuring the quality of coupons will be necessary to ascertain its effectiveness and the value it brings to the company considering it is something that comes with costs.

Customers will be provided with a platform to give their feedback, and other avenues will be created from time to time to survey the actual perception among customers about the new service (Dhar & Winer, 2013). Among the service qualities that will give the product a thumbs up is how reliable will it be. Efficiency in reliability means that the product can be used conveniently as per the needs of the customers (Freeman & Dart, 1993). Generally, a positive feedback from customers will mean good service quality.

Challenges in Globalizing the Coupons. Developments in technology have made it easy for coupons to be globalized by companies operating outside their native countries. But is not to mean there have been no challenges. Being based on discounts, commissions, and offers, offering it in a global market presents such a challenge since it is a very expensive service to run (Dee Zive, 1981). Other than that, lack of standardization in global prices due to different environments in different countries will also compromise on the offers. There exist price discriminations based on respective’ countries business environment, and offering coupons on a global scale will mean different clients may have different offers.

With information readily available in the distribution channels about the different offerings, customers’ loyalty is likely to be compromised in the long run.  It will be important for coupons to limit the scope or geographic location of redemption.

Strategies to Implement the Service. The specific product, in this case, is the coupon. It is a product that is majorly being built for the already existing customers and potential ones. Due to its features that include enabling the customer to claim offers, buy at discounts and commissions, it is set to be a success (Dee Zive, 1981). The other major issue is the price, which in this case is the cost it will cost the company to offer the product. The said cost to the company is the price enjoyed by the customers. Due to the fact that it cuts down the price by allowing discounts and commissions, it is likely to stimulate demand. Edible Arrangements will bank on more sales to cover up the huge discounts and commissions. Coupons will have several different impacts when launched.  People that regularly purchase Edible Arrangements’ products will be enticed to purchase sooner with the discount, people will be persuaded to make a purchase they may otherwise waited to make, regular customers will use the coupons as a bonus, and competitors’ customers may switch to Edible Arrangements because of the coupon (Dhar & Winer, 2013).

Edible Arrangements operates on a global scale, and therefore its place of the offer is in all its global markets. One of the strategies to offer is to avail them online, where customers can claim the coupons and use them later in their respective stores (“Technology-Driven Online Marketing Performance Measurement”, 2014). Lastly, it is the promotional method that will be used to popularize the product. There is nothing that can come out of a good product if customers do not know about it. It is under such notion that Edible Arrangements has to undertake deliberate promotional activities that will enable customers to take maximum advantage of the coupons. Exploiting media channels like social media and online advertisement can go a long way it popularizing the coupons. Other promotional activities like instore and strategically placed banners and billboards can also play an important role.

Conclusion. Developing a marketing strategy, that involves coming up with specific services to achieve the primary objective of the company is central to the market team’s roles. The roles encompass all activities including but not limited to the creation of services, identifying the likely challenges, devising ways to measure quality and effectiveness to implementing them (Dhar & Winer, 2013).

References

Dhar, Russ Winer and R. Marketing Management, VitalSource for Kaplan University, 4th Edition. Pearson Learning Solutions, 2013. VitalBook file.

 Dee Zive, J. (1981). Solving Marketing Problems through: Creative Promotions. Cornell Hotel And Restaurant Administration Quarterly, 22(3), 57-61. http://dx.doi.org/10.1177/001088048102200314

Freeman, K. & Dart, J. (1993). Measuring the perceived quality of professional business services. Services Marketing Quart., 9(1), 27-47. http://dx.doi.org/10.1080/15332969.1993.9985072

Kaufman, C. (1991). Coupon use in ethnic markets: implications from a retail perspective. Journal Of Consumer Marketing, 8(1), 41-51. http://dx.doi.org/10.1108/07363769110034956

Krum, J. (1969). Perceptions and Evaluation of the Role of the Corporate Marketing Research Department. Journal Of Marketing Research, 6(4), 459. http://dx.doi.org/10.2307/3150083

Technology-Driven Online Marketing Performance Measurement:. (2014). International Journal Of Online Marketing, 4(4), 0-0. http://dx.doi.org/10.4018/ijom.2014100101

Developing and Managing New Products

Developing and Managing New Products

This essay is about Gaga's Sherbetter brand of Sherbet ice cream.

The GaGa brand of sherbet is not really a sherbet at all, as the recipe formula does not fit into the same formulas as traditional sherbets. With this different formula, the GaGa brand has been marketed with the name of the product, Sherbetter, as an attempt to create originally from traditional sherbets. The name, Sherbetter relays to the consumer that the GaGa brand of sherbet is a different, more satisfying sherbet as compared to other brands of sherbet.

            However, even though the name of the product implies the diversity of the product, the GaGa brand name has been seen by consumers as more catchy than the Sherbetter name (GaGa Inc., N.D.). Currently, there is a pop icon by the name of Lady Gaga, which unintentionally provides a sense of familiarity when the consumer sees the GaGa name on a product even though Jim King patented the GaGa name in 2003 (GaGa Inc.,N.D.). Although Sherbetter does provide the consumer with a preconceived vision of the product, it falls short in providing a distinct spark in the consumer’s memory. The King’s revamped their marketing strategy to focus more on the GaGa branding than the name of the product as a result of a market branding test where the packaging was recreated in response to the market test (GaGa Inc., N.D.). Consumers were not understanding what the product was with the name Sherbetter, as they were more focused on the brand GaGa, hence the need to reposition the product with the GaGa brand as the focus. 

Jim King and his wife chose the GaGa’s brand over the use of the Sherbetter name based on the distinction that the product really did not fall into the sherbet category of recipe formulas. When the Kings tried launching the name of Sherbetter, but were still placing the product in the same grocer area as traditional sherbets, consumers were confused about the product profile. The GaGa brand was what consumers were remembering based on a market test (GaGa Inc., N.D.), hence the King’s decided to adjust their marketing profile to focus on the brand GaGa instead of having the primary focus be on the Sherbetter name.

            Even though Jim King patented the GaGa brand, consumers are currently familiar with the GaGa name as the name increased in popular vision with the rise of the pop start Lady Gaga (GaGa Inc., N.D.).  This unintentional coincidence has created a sense of familiarity in the consumer, which helps lessen the risk of trying a new product when a consumer can associate it with another familiar product, even if the familiarity comes from a pop icon.   

GaGa’s rainbow Sherbetter features a blend of orange, raspberry, and lemon ice flavors to create a Sherbetter variety all in one packaging. The consumer does not need to buy individual pints of each of these flavors as they are conveniently packaged in one pint to meet the needs of consumers who desire all of these flavors. The packaging on the rainbow Sherbetter is brightly colored, but is tactfully uncluttered, keeping the appeal simple, clean, and eye catching. White space on the pint as a background to the colorful fruits on the pint packaging help the consumer focus on the main attraction of the product which is the combination of specific fruit flavors. It also adds cleanliness to the packaging. Additionally, the labeling on the package also draws the consumer in as it is bold against the white background.

            Contrast is created with the lid colors, which is where a majority of the bold colors are located. This is a distinct form of packaging for the brand itself as it is used strategically on all Sherbetter pint packaging with colors unique to the flavor of the Sherbetter.  The GaGa trademark is made obvious to the consumer from the packaging as this is one of the first attractions on the packaging in bold scroll-like font. However, the packaging does not completely separate the Sherbetter product recipe from its competitors as this is not specifically identifiable from the face value of the packaging.

 

1. What type of consumer product is the Sherbetter bar?

a. Shopping Product

b. Convenience Product

c. Specialty Product

d. Unsought Product

ANSWER:

            The Sherbetter bar is categorized as a shopping product based on the product being sold in limited locations. A shopping product is defined as “a product that requires comparison shopping because it is usually more expensive than a convenience product and is found in fewer stores” (Lamb, 2013). Sherbetter bars are located in the same grocer area as other frozen treats, and are therefore compared to these products in the eyes of the consumer. With this comparison, consumers could potentially substitute the Sherbetter bars in lieu of other brand names as they compare price, packaging, and quality of the products.

2. When GaGa’s developed Sherbetter Bars, what type of new product was that?

a. Repositioned product

b. Improvement on an existing product

c. Addition to an existing product line

d. New product line

ANSWER:

            The GaGa Sherbetter bars are an extension of the GaGa brand. The development of this product extended the GaGa brand to compete in a wider range of products, and potentially reach new customers. Product lines are added to an existing product line in order for a brand to compete more broadly in an industry (Lamb, 2013). By adding this product line, the Kings have created additional consumer and retail opportunities, which will help market their brand to more people. Instead of just having one line of GaGa branding, they now have two, and the bars are also located in s different section than the Sherbetter “sherbet”. More opportunity for consumers to see and locate the brand have been created with this new product line. 

 

 

3. Performing which of the following steps in the new-product development process would have helped Jim King realize that the novelty bars and the pints of Sherbetter would not be shelved together?

a. Business Analysis

b. Development

c. Test Marketing

d. Commercialization

           

ANSWER:

            During the development process, the proto-type of the product is developed along with a potential marketing strategy (Lamb, 2013). During the creation of the marketing strategy, Jim King could have researched where novelty ice bars and pints are placed in the grocery store. This would have enabled him to adjust the packaging and identification of the product to avoid the challenge of having the two products placed in two different places. However, having the products placed in more places of the freezer section could also lead to a broader range of consumer interest. The product is attracting additional interest by displaying it in more than one place.

 

 

 

4.  At which stage of the new product development process should GaGa’s have conducted its extensive focus groups and any research it needed before putting GaGa’s Sherbetter on the shelves?

a. Idea Generation

b. Development

c. Idea Screening

d. Business Analysis

ANSWER:

            Idea screening enables producers to gauge and eliminate concepts that do not fit the strategy of the product (Lamb, 2013). GaGa’s Sherbetter is not a sherbet as it does not fit the recipe formula for a traditional sherbet. Therefore, the Kings could have introduced the product’s originality first to the focus group before marketing it on the shelves, eliminating the need to readjust midstream of the product’s introduction. When the product is placed on the shelves in comparison to other sherbets, the consumer thinks it is the same item. The separation of product does not exist in the mind of the consumer. The focus group could have helped prevent this challenge, and the Kings could have potentially had a more effective product introduction.

5. In what stage of the new product development process should GaGa's have introduced Sherbetter and the companies marketing program into the market to gauge consumer reactions?

a. Test Marketing

b. Target Marketing

c. Business Analysis

d. Commercialization

ANSWER:

            During the test marketing stage, product lines are introduced to the consumer in the market place for a limited amount of time (Lamb, 2013), allowing the developer or producer to adjust the product to meet the needs of the consumer. Additionally, the test marketing stage enables the producer to react to any potential risks identified for the product during this stage. The producer can then be proactive to future marketing strategies. The Kings could have tested the market first with their product to gauge some of the risks without having to pull back all of their product as a result of these risks. However, the Kings had limited marketing funds avaible to them, as this was their first business venture, and test marketing is an expensive opportunity.

 

6. In what stage of the product life cycle is Sherbetter?

a.   Introduction

b.   Growth

c.   Maturity

d.   Decline

ANSWER:

            Sherbetter is on the brink of the growth stage as it is beginning to stretch its branding to reach more consumers. However, the word of the brand is still not reaching the mainstream market, and is only avaible at limited locations. Therefore, Sherbetter is still in the introduction stage. With limited funding resources, the introduction stage has been drawn out farther than the Kings’ had hoped, as they are only using sampling and word of mouth through social media sites to market the product (GaGa Inc., N.D.). As word of mouth grows, the product will soon enter the growth stage of the product life cycle.

 

References

GaGa Inc. (N.D.). GaGa Inc. Marketing Video. Retrieved from: http://www.cengage.com/marketing/book_content/lamb_9781285091860/videos/ch11.html

Lamb, Eric. (02/2013). ACP MKTG, 7th Edition. [VitalSource Bookshelf Online]. Retrieved from https://kaplan.vitalsource.com/#/books/9781305370128/

Marketing and the 4 P's

Product is Everything

Products are everything that a person receives in an exchange. Specific versions of a product offered by an organization are product items while groups of closely related product items are called a product line. All of the company’s products together are a product mix

     There are five consumer product classifications; inexpensive items which require little shopping effort are convenience products. Shopping products are items where consumers compare different brands and the items are usually more expensive than those of convenience products. The third classification would be specialty products such as high end products and consumers will not accept substitute brands. There are also unsought products that consumers don’t actively seek but are found more on a necessity bases such as burial plots or insurance.

     Branding of a product allows for distinguishing products from all other competitors because consumers will recognize a brand they consider to be good quality and a product line that they trust. Packaging of a product is sometimes changed in order to attract a new group of consumers. If they want to attract a younger demographic, they will change the logo/label to one that the younger consumers will take notice of.  A company is global if they get 1/3 of their revenue from outside of their home country. These companies have to offer products that are based on the local tastes, or styles of the area they are selling in. Labeling for global products also must be properly translated when listing ingredients, and they have to watch what colors are on the labels as some countries have different meanings for different colors which means we may use a color here in the United States that if sent to another country could be very offensive, so it is very important to pay close attention to that.

     There are different types of warranties, Express warranties are ones that are written while implied warranties are unwritten guarantees that say the product is fit for the purpose it was sold for. Warranties are to protect the buyers and they give important information about the product that is sold.

     Companies must develop new products to continue growing, increase revenue and to replace items that have become obsolete. There are six catagories of new products. The first being new to the world products which are created for an entirely new market, then there are new product lines which are products that have not been offered by the company before. Additions to existing product lines which are developed to supplement and established line, revisions of existing products can have slight changes or significant changes to the existing items. Repositioned products are existing products which are targeted at new markets and finally lower-priced products which are similar to competing brands but are offered at lower prices than the competitors.

     The process for developing new products starts with new product strategy which provides general guidelines, followed by idea generation which comes from customers, employees, vendors, R&D and consultants. The next step is the idea screening which eliminates the ideas that are inconsistent with the organization’s new product strategy. The company then has to use the business analysis to estimate and compare cost and revenue for the new product and then the development where the prototype is developed and the marketing strategy, packaging, branding and labeling is all developed.  The next step is to test market the product where it is sent to limited market places for introduction. Once all of that is complete, the final step is commercialization where the decision to market the product is made and production materials and equipment are ordered products are shipped to distribution points and advertising is all started.

     The concepts of the life cycle are first the introduction, where a full scale launch of the product begins, that moves to the growth when sales grow at an increasing rate and then the maturity of a product which is the longest stage, where the sales increase at a decreasing rate and it finally leads to a decline when there is a long running drop in sales.