Question

You are currently working for a company called Pierogi’s and More. This company specializes in authentic ethnic European style foods. Product offering includes Blintzes, Golabki, Kaputsa, and Kielbasa, but the main item in the product line is the traditional Pierogi. A pierogi is best described as a piece of pastry or dough that is stuffed with various ingredients. Going back to the tradition of the product, the original pierogis were normally stuffed with mashed potatoes, spinach, sauerkraut and/or variety of cheeses. The pierogi was the ‘worker’ or ‘laborers’ meal, so consequently did not include meats as they were not affordable but when available, some meats would be an ingredient in the pierogi. These meat-based pierogis were considered a delicacy and used mainly for special occasions. The pricing strategy has been quality/value-priced based. The company has been trying to develop a reputation and perspective of a high quality item. The standard price for one dozen pierogis has been $5.99 per dozen. This price is a little higher than the prices of the main competitors. Depending upon the ingredients, the competitors’ prices range from $2.79 to $5.39 per dozen in most grocery stores. Based on the current production costs and overheads, there is some room to manipulate price, but there is a desire to make sure that the pricing strategy reflects the quality of the product. While the company has completed no in-depth research or analysis, management believes they offer the highest quality pierogi on the market and believes their price should reflect as much. A breakdown of the cost structure revealed total variable costs of $1.87/dozen and total fixed costs of $0.20/dozen. Pierogi’s and More is starting to enter a new phase of distribution. To this point, sales were through the current company store front or direct sales to a few local markets. The company is now branching into specialty or higher end grocery retail. This change will require the inclusion of a wholesaler into the marketing channel. Studies have shown that most grocery wholesalers maintain a 30 percent mark-up while the retailer maintains a 25 percent mark-up. Pierogi’s and More desires to maintain their current price point at the retail level when they enter this new distribution channel. The company would also like to maintain a 45 percent mark-up. Based upon the above information, please respond to the following: e: Create a slogan for the business, less than 20 words, which captures the essence of the brand. Explain your rationale for the slogan. Then show how it should be incorporated within the brand image and integrated marketing communication plan.

Answer 1

Slogan- getting in touch with the traditions, in class.

Let us reiterate some of the facts about the company.

• Pierogi’s makes and sales authentic ethnic European foods.
• They are selling these products in USA, assuming prices quoted in USD.
• Their USP is the Pierogi, which is traditionally considered as a dish for worker class or lower class.
• They are selling them at a price higher than their competitors. They want to position themselves as a quality providers.
• They not only want to position themselves in the higher end of the value chain providers but also change the perception of the products they are providing.
• Their primary customer target group is the people from European background who are in the middle class and above, which is primarily in the age group of 35+

Hence, considering all the above highlights, it would to apt to say that the company wants to touch the nostalgic part of the consumers and recreate the memories they may have of their European decent. At the same time, they would also be looking forward to introduce their younger generations to the ethnic European delicacies as a part of their traditions. Hence, the slogan should emphasize on being part of tradition. Also, their pricing strategy is quality/value-priced based. Hence, the slogan should capture this aspect also.

The branding should be done as if the company was based out of Europe and initiating a branch on the other side of the Atlantic after being very successful in the home market. The company may have originated in the USA but such brand positions will not only help them get a share of customers minds easily but will also sell them sell the higher values items quite easily. The customers should associate an image of superior quality or class when they look at Pierogi’s and More. The marketing should be done via channels where their target customers pays more attention to. In this aspect, utilizing more traditional channels of marketing such as prints, newspapers along with TV would be more suitable. He marketing communication for the new distribution chain should also focus on the value based proposition of the company. One important point to remember is for the company to expand through retailers who already have established themselves as a value providers rather then merely the lowest price providers. If the company’s products are placed along with other competitors who focus on low price, then Pierogi’s products would not sell. Hence, they should look for high quality, value based distributors in the area.