Question

Marketing mix for candy store-pricing objectives, cost, competition, and demand

Answer 1

Marketing Mix-

Product - With so many competitors spanned out in the market selling Candies, the product assortment should be selected in such a way that they present a premium positioning for our products in the market. Moreover, in addition to having premium products, we should also instill a premium product delivery environment which shall act as a complementary service for the product.

Place - The store should be located in the vicinity of an area frequented by children like play parks, schools, etc. Having an appropriate position will help us attract children towards the store.

Promotion - We should promote our store as value adding experience store in which the consumers can have a joyous experience. We can also promote the place as a perfect venue for kids birthday party and thus attempting to increase the time kids spend in the store. These techniques will help converting our customer relationship from transactional relationship to a Value Adding Relationship.

Price/ Pricing Objective - A premium pricing should be undertaken while pricing our candies, with a slight mark up over our competitors. Moreover, we should also implement pricing schemes to promote bulk purchases or activity based costing or time constricted consumption (have any number of candies in 15 min at $20)

Cost - The cost of establishing the store and developing the initial marketing kits would be the cost experienced by the store. After this initial phase, the variable cost of the candies would be the only cost factor for the store owner and they should be able to cover it up well due to the premium pricing implemented.

Competition - Our Direct competitor would be any point of sale of candies located in our vicinity. We shall also experience relative competition from other experience based stores which also target kid for their customer base (McD for birthday parties & Toy zones).

Demand- Love for candies is not expected to dry down in the near future. Irrespective of the hue and cry about their health issues, children and their parents would always be attracted towards the candies. So we can expect a steady and stable demand for our product in the near future.

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