Product, Pricing, and Channels Paper

PRODUCT, PRICING, AND CHANNELS PAPER 5

Product,Pricing, and Channels Paper

Developmentof a new product isa key concept in the study of marketing management.Thecurrentbusinessworldis dominatedby muchdynamism in relationto productdevelopmentandgrowth.There is a tendencyto focuson strategyandstrategicmanagementprocess.Thestrategicmanagementprocessisdefinedby thethree uniqueprocessesthat areinvolvedtheseare analysislevel, formulation level andimplementation. Additionally, managershavethesoleresponsibilityof formulatingthebeststrategyin orderforthem to enjoya competitiveadvantage.Forthisreason,a studyon variousmarketingeffortsin theOreoproducts’lifecycleis paramount.

Theintroductionphaseof a productcycleischaracterizedby thehighlevels of productawareness(Krafft, 2010). Profitmaximization is not a keyto considerat thisphaseas theproductis stillnewto themarket.In the case of our product Oreo, it is not an exception to follow therule. Themainconcernin branding is ensuringa goodimageandalsoacquiringallthepropertyrights. Oreo packages should be distinct in the marketplace dominated bysimilar commodities. Low-penetrationformof pricing is themainstrategyto builda marketshare.Othertimes,there is theapplicationof skimmingsoas to meetthedevelopmentcosts.Channelmembersarechosensufficientlyto coverthemarketadequately(Cant, 2006). Thisstrategyisapplieduntil theconsumersshowa highlevel of acceptanceto theproduct.All thepromotionstrategiesaregearedtowards theinnovators andearlyadopters of theproduct,andthekeycommunicationis educatingconsumersof Oreoproducts(Krafft, 2010).

AstheOreogoesthrough its cycle,competitionis inevitable.Theindustryischaracterizedby newentrantsofferingsimilarproducts.Emphasishereislaidon creatingbrandpreferenceas wellas increasingthemarketshare(Krafft, 2010). Emphasis should be in making Oreo a family name amongconsumers. Thequalityof theproductshould bemaintainedas wellas thepricing level since theproducthas alreadybeenacceptedby theconsumers.Thechannelmembersshould be increasedto haveadequatecoverage of newmarketsandalsomoresupport,andincentivesshould beawarded.Itis alsoadvisableto keenly observetheeffectsof competitiveproductson thechannel(Cant, 2006). Promotional strategiesaregearedtowards largergroupsof audiencewhich include new markets.

Maturitystageischaracterizedby survivalforthevariousproductsdueto theintensecompetition.An observablechangeis thedeclinein thestrongsalesthat werewitnessedat thegrowthstage.Productdifferentiation dominatesthisstagesoas to counter theclosecompetition(Krafft, 2010). In ensuring the sustainability of Oreo products atmaturity stage, product features such as new shapes of the cookiesshould be adopted. Profitmaximization is emphasizedas wellas defendingthemarketshare.Lowerpricing strategiesare adoptedto remainhighlycompetitive.Distributionchannelsareintensifiedandextraemphasison motivationto mitigatecompetitiveimpact.Thepromotional strategyappliedhere isthatof productdifferentiation (Cant, 2006). Oreo products should be promoted in adistinct way to command a share in the market.

Oncea productsurvivesthematuritystage,itnowgoesto thenextlevel of decline.Themarketischaracterizedby changein consumertastesandintensepricecutting(Krafft, 2010). Profitsare maximizedthrough pricecutting andalsoloweringtheexpenditureon marketing. Marketers’ responsibility in the case of Oreo should be designingnew features of the already established product (Cant, 2006). Newmarketsespecially in foreign countries where the product will be embracedshould be devised.In the case that the product fails to rejuvenate at this stage, allmarginalchannelmembersshould be phased out(Cant, 2006). Theinvestigationshould beconductedon theimpactof productdeletion on channelmembers.In theeventthatallthesefail,itis advisableto phase out the product from the market.

References

Cant,M. C. (2006). Marketingmanagement.Cape Town, South Africa: Juta.

Krafft,M., &amp Mantrala, M. K. (2010). Retailingin the 21st century: Current and future trends. Heidelberg: Springer.