EOC: Week 10: What are the benefits vs the features?

‘The company must also decide how it will serve targeted customers—how it will differentiate and position itself in the marketplace. A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

(Book page 9)’

‘Consumers see products as complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core customer value that consumers seek from the product. They must then design the actual product and find ways to augment it in order to create this customer value and the most satisfying customer experience.

(book page 211)’

‘How can a company identify new features and decide which ones to add to its product? The company should periodically survey buyers who have used the product and ask these questions: How do you like the product? Which specific features of the product do you like most? Which features could we add to improve the product? The answers provide the company with a rich list of feature ideas. The company can then assess each feature’s value to customers versus its cost to the company. Features that customers value highly in relation to costs should be added.

(book page 215)’

‘Value-based pricing doesn’t mean simply charging what customers want to pay or setting low prices to meet the competition. Instead, many companies adopt value-added pricing strategies. Rather than cutting prices to match competitors, they attach value-added features and services to differentiate their offers and thus support higher prices.

(book page 278)’

Benefits versus features of the Otsu snack product:

Benefits:
· promotes a healthy lifestyle
· satisfying
· tasty
· good with beer
· exotic
· exciting

 Features:

• low calories
• good with beer
• convenient
• good value relative to other snacks
• seaweed flavor
• rice cracker

A value added feature of the Otsu product could be that it tastes good and is healthy.

 

EOC: WEEK 9: THREE GREAT MISSION STATEMENTS

The purpose of a mission statement, as defined by the book, is:  A statement of the organization’s purpose—what it wants to accomplish in the larger environment.

I like the mission statement of Joaquim Abbott because it provides a pretty good description of what the product does:

The mission of Philleas Fogg Snacks is to provide a unique flavor experience that will take your taste buds on a journey around the world and back. We allow mature adults to enjoy snacks that complement the alcohol experience by providing narratives that are instant conversation starters.

http://jquik.blogspot.com/search/label/Final%20Project

I also like the mission statement of Victor Camarillo because it is to the point and humorous:

Our goal at Captain Deez Nuts is to deliver to our customers with the ultimate snacking experience that can be perfectly enjoyed in almost any occasion. Whether its relaxing watching the game with friends, or a much needed break in the office, our premium ingredients and superior taste will make sure that you are satisfied with your purchase. I guarantee you from start to finish, Deez Nuts will be on your mind the whole time!

http://vegasvicphoto.blogspot.com/

The third mission statement I like is Sharon St.Laurent, it to is to the point:

Phileas Fogg's Husky Smoked Salmon Chip isn't just another snack: it's mission is to make people smile around the world by selling the best quality snacks with passion, excellence, and innovation. "When you are looking for a pick-me-up snack, you will find your Super-Hero within, packed with Power in every bite." We use the number one fresh Idaho potatoes, pink salmon and Himalayan pink salt (Himalayan Salt:Gluten-Free, Non-GMO, Kosher, Certified Organic). This chip is shaped like a Salmon and packaged in a resealable bag.

http://sewb4us.blogspot.com/

EOC WEEK 8: CREATIVE CONTENT

My major is photography so I plan to make a print ad, like that could be run in a magazine. The ad will be vertically oriented and letter size.

My product is ‘Sakura’ seaweed flavored rice crackers from the sea ports of Japan.

 I plan to have a picture of a Japanese woman. She will be dressed in traditional Japanese clothing or possibly a trenchcoat. She will be dark and mysterious.  She will be on one side, next to a large barrel full of the Japanese rice crackers. She will be holding some rice crackers and showing them to the viewer.
Since packaging was invented in 1898 and this took place before then, the crackers will be sold in a barrel with none of the clear plastic packaging we are used to.
 It will be very dark, as she is supposed to represent the mysterious lady who met Phileas Fogg on the waterfront of Yokohama Japan. The tone will be dark and somber, as if the spies could get her at any moment. There will be a spot light on the product, so while she will be in the shadows, the product will be clearly visible, as will the story printed on the barrel. Darkness will obscure the scene to make the viewer focus on just the product.
On top of the image, superimposed, will be the ad script, saying ‘Try Phileas Fogg’s Sakura seaweed snack, straight from the seaport of Japan to a store near you’. It will be using an old fashioned font or maybe a Japanese-ish one to make it look exotic.
On the barrel will be the script of Phileas Fogg’s adventure.

FINAL: IMPLEMENTATION, EVALUATION, CONTROL

Controls 'will be used to monitor progress and allow higher management to review implementation results and spot products that are not meeting their goals. It includes measures of return on marketing investment.' (book page 56)

Marketing control is 'the process of measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that objectives are achieved.' (book page 58)

Implementation 'spells out how marketing strategies will be turned into specific action programs that answer the following questions: What will be done? When will it be done? Who will do it? How much will it cost? '(book page 56) Implementation is 'the process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.' (book page 57)      For the Phileas Fogg's Seaweed Snack product, the marketing department will set goals at the beginning of the fiscal year involving market share, sales and return on marketing investment. The results will be evaluated yearly, quarterly and monthly using market research and other methods to measure progress toward those goals. The strategies and controls will be adjusted as needed, so that if one marketing strategy is working well it can be implemented as needed.  Individual marketing campaigns will be measured to see if the cost per customer justifies them.      A website will be made, as will a blog and a twitter feed. Online ads will be placed on google and maybe other services and a cost per customer will be calculated to see if they need adjusting. These will target younger (21-35) customers that might not be reachable by traditional media.     Bars will be contacted to see if they are willing to set out some of the product samples during athletic events or other times when they have lots of customers. Ads and other promotions will be done with the bars at those times, like maybe during football season.       Liquor stores and convenience stores will be contacted to see if they are willing to carry the product.       Another possibility is using snack food distributors if the terms they offer would be beneficial. Such an agreement would have to be carefully thought out as it means less profit and less control of the distribution in return for more customers and access to some stores that might not accept the product otherwise. [NOTE: For purposes of these blogs, all references to 'book' refer to Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing]

FINAL: PRICE

'Price: The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having or using the product or service.'

(book page 275)

'Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible marketing mix elements. Unlike product features and channel commitments, prices can be changed quickly. As a part of a company’s overall value proposition, price plays a key role in creating customer value and building customer relationships.'

(book page 275)

'The price the company charges will fall somewhere between one that is too high to produce any demand and one that is too low to produce a profit ... Customer perceptions of the product’s value set the ceiling for prices. Product costs set the floor for prices.' 

(book page 276)

'Three major pricing strategies: customer value-based pricing, cost-based pricing, and competition-based pricing.

• Customer value-based pricing: Setting price based on buyers’ perceptions of value rather than on the seller’s cost.
• Cost-based pricing: Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.
• Competition-based pricing: Setting prices based on competitors’ strategies, prices, costs, and market offerings.'

(book page 276-280)

     The initial plan for Phileas Fogg's Seaweed Snacks is to price them at $2 per 2 ounce bag, that is a competition based price and is about what the competitors are charging. This assumes that price is lower than the cost. There are no plans to sell the product at a loss though some could be given away in bars possibly as a marketing strategy to get consumers to try the product.
     Different size bags will be introduced as needed, like a larger bag, if the situation warrants it. 
     Being the low price leader would be hard in the beginning since the competition would have economies of scale therefore, the plan is to price the product in the middle of the competition, this will give customers good value and probably will produce reasonable profit, though this would be hard to calculate without knowing the full costs. 

FINAL: PROMOTION

'Promotion means activities that communicate the merits of the product and persuade target customers to buy it.' (book page 54)

This is the ad I made, to be run in magazines like ESPN magazine and others: 

     Phileas Fogg Seaweed snack will be introduced in bars and advertised to get people to try it. Promotions will be done with the bars during sporting events and during football season to get more people to try the product. Promotions will be coordinated with other flavors of Phileas Fogg snack products so consumers can follow the adventures of Phileas Fogg as he goes around the world trying delicious snack products. This would generate interest in the whole product line and increase brand equity.
    It will be sold and promoted in liquor stores and convenience stores. Cross promotions will be done with them and attempts will be made to get national chains to carry the product, like 7-11.
    Social media like facebook and twitter will be used to target adults who are looking for something new to go with their beer or by itself as a snack. Such ads will reach a younger crowd, aged 21-35, than might otherwise be reachable by traditional media like newspapers, television and magazines.
    
    

FINAL: DISTRIBUTION

'A marketing channel or distribution channel is a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user.'

(book page 311)

'Marketing channel design is designing effective marketing channels by analyzing consumer needs, setting channel objectives, identifying major channel alternatives, and evaluating them.

(book page 322)'

     The Phileas Fogg Seaweed Snacks product will be introduced at bars and sold in liquor stores and convenience stores. Attempts will be made to get national chains, like 7-11 to carry it.
     Later it could be sold in supermarkets. Initially the product will be sold directly to stores though later some distributor would possibly be used if the goals of the distributor align with the goals of Phileas Fogg. Use of a distributor might be necessary to get the product stocked in certain stores and the costs and benefits of such a deal must be considered. Selling to distributors would result in less control but more stores versus selling direct to stores would result in greater profit and greater control.