This promotional strategy could cause a loss in profit in the beginning, because it will help to put the reduce into consumer's hands with the hopes of driving business in the future. If the marketing mix combination is successful in the first stage of the product life cycle, the market growth stage should come quickly and successfully. Sneeze-Free is breaking the industry standard on allergy products. This product can help families who cannot own or be around pets previously because of pet allergies.
In the market growth stage, the expectation is that Sneeze-Free sales will soar. The marketing mix will still play a large role in the sales, as the product is still very new and will be hopefully in high demand. The concern during this stage of the product life cycle is the likelihood that competitors will try to mimic a similar product and drive sales down. As Sneeze-Free enters the market maturity stage, sales will taper off or even go down. During the maturity stage sales will peak when the product hits saturation which for Sneeze-Free will take approximately two years.
One year for marketing and advertising the product, and one year for saturation. With continuous advertising in the maturity stage, Sneeze-Free can stay in the profit column in the maturity stage and avoid entering the decline stage. Competition for the product will likely be high at this point. The product will rely on its branding that it has earned, and effective marketing strategies to stay competitive. Petcock may consider introducing another product that could partner with Sneeze-Free to be more effective.
This could rejuvenate the sales and interest in Sneeze-Free from the consumers. The key to success for surviving through the sales decline stage of the product life cycle for Sneeze-Free will be the loyal base of consumers that the product adopts in earlier stages. During this stage, there could be enough competition that Sneeze-Free ill be one of several products that consumers can choose from. The product will have earned a good name and brand for itself, but the promotions, price, and placement can help it be successful through this last stage of the product life cycle.
Positioning and Differentiation Strategies The pet supply retailer Petcock has developed Sneeze-Free as a convenient alternative to expensive medication and time consuming pet shampoos. Because Petcock being unknown as a manufacturer, creating a product with differentiated value for the customer will be challenging. Competing with other manufacturers with pet allergy control products will require positioning Sneeze-Free in the correct market segment. The allergy control market consists of medications, shampoos, and sprays.
Allergic, a leading allergy control producer, positions itself as "The best way to protect yourself against dust mites, and other allergens" ("Allergy Store," 2013). Spray. To differentiate Sneeze-Free from an established allergy control company, Petcock needs to position the product based on price. Allergen's strength can be used to Petcock's advantage. Not everyone can afford the best allergy relief products. Petcock should position Sneeze-Free as the low price alternative to pet dander allergy control.
Creating a low price alternative image and differentiating Sneeze-Free from other products on the market is as a simple slogan such as "The everyday spray makes the allergens go away'. Appropriate Price Strategy Pricing any product has regulations that must be abided by. Pricing of a product must be in accordance to the cost of production. Before a price can be decided on for Sneeze-Free the financial position needs to be understood. The price of a product determines consumer demands.
If a price is too high, consumers may how no interest in purchasing the product. If the product is too cheap or low in price consumer may not take the product seriously. One marketing strategy is marketing skimming; the second marketing strategy is penetration. Skimming is marketing the product at the top of the chain of the demand curve. Basically the product is sold at a high-price. "Sell the top (skim the cream of the market-the top of the demand at a high price before aiming at a more price sensitive customers" (Puerperal, Jar. Cannon, and Mac McCarthy, 2009, p. 464). Skimming is a trial-run for pricing of the product. The only time skimming works, is when an organization has image and quality in the product that will support the higher price. Skimming also works when the product is in demand. The second pricing strategy penetration is the product that is sold at a low price. This strategy is known to be effective when the market for an expensive price is low. The goal for Sneeze-Free is supply an item that stands for a quality product at fair price.
The penetration strategy is the appropriate pricing strategy for Sneeze-Free. Promoting the product at a low-price is ideal for the product. Start off selling Sneeze-Free at rower introductory prices of $12. 99 per bottle. The regular price will be set depending on the growth of the product. Conclusion Petcock is confident in the steps it is taking to ensure every piece of the marketing puzzle is in the correct place as it is laid out on the table and reviewed.
The marketing team is working day and night to ensure the life cycle of Sneeze-Free is understood. The first phase of the marketing mix is the most important start for Petcock. As mentioned, with providing coupons or free samples in this beginning stage that will drive the business successfully to reach the goal of profit sales. Individuals begin to speak of new items more when they have coupons or get free samples. This "word" of mouth advertising is crucial to Petcock's success.
With knowing its possible competition inside and out, Petcock is in the mindset of being the low price leader by selling this exclusive product under the penetration strategy. Slogans are a must to have successful word of mouth advertising. The slogan chosen to be used will be embedding itself into the minds of non-pet owners and pet lovers alike. Because Petcock is bringing a brand new exclusive item into the market to cover all of he consumers at once, the penetration strategy chosen will fit best.