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Dairy Producers and Buyer Power in Supermarkets

   

Added on  2020-03-13

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Running Head: MARKETING STRATEGY AND PLAN 1DAIRY INDUSTRYName:Institution:Course:
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MARKETING STRATEGY AND PLAN 2QUESTION 1:ANSWERProduct is a type of marketing mix, product life cycle is a cycle which depicts stages that a product passes and the returns expected from it at different levels over time (Aitken,et.al,2003); these stages include:Development-this is a stage where products are investigated and planned for. The ideas about a product is weighed and looked into with keenness. Most of the ideas die up in this stage because companies fear taking risks of coming up with a new product. In this stage, the company’s expenditure is high and no income as it spends much in developing the product ideas and no sales is done (Golder & Tellis,2004).For a company to do well and pass this stage, it should look on issues like product branding and establish the quality level, good branding will attract customers and would want to taste the product. Pricing also should be considered whereby entry price should be lower to favor its venture into the market. Channels of distribution should be one-sided; it should select the areas of marketing the products until the product is received well and then move to other markets. product promotion should also be done at this early stage to help with awareness of the product to the potential market.Growth – this is a stage where sales begin to grow after product launching and marketing. The cost level may come down because if the product has been received by potential customers, production of the product will be high to meet the demand. In this stage there is also entry of competitors as they try to copy what another company is doing and they produce a similar product, this can affect sales in the company.
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MARKETING STRATEGY AND PLAN 3For a company to counter this and improve it sells, marketing strategies should be implemented and they include; increasing demand of the product but maintain the prices, maintain/improve thequality of product, increasing distribution channels due to rise in demand of the product, widening promotion to higher market level.Maturity and saturation is a stage where sales growth is constant. Entry of more firms to offer competition to existing companies makes the market to be saturated. At this stage, many businesses use different ways to improve and extend the product life and this include; Company trying to change the image of product by adding features which are different from thatof competitors. The company should also intensify the distribution channels as competition is high and also do promotions which depict the product differentiation from that of other competitors.Decline- at this stage sale of products will come down because of change in customer’s tastes and preference, change in technology, and/or the coming in of new products. This stage is criticalfor the company as it can cause product withdrawal. At this stage, the firm can decide to maintain product and improve its uses so as to increase the declined sales. Another option is the company to harvest the product, that is, continue offering the products but at a reduced price. A company can also decide to withdraw the product from the market and either turn the remaining inventory to cash or sell the product to a firm which wills to continue.The company can try to extend the life of fallen product by looking ventures for the existing products, establishing wide range of products, setting the target audience, rebranding and repackaging of the products, encouraging customers to use products anytime on frequent basis,
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