Contemporary Marketing Assignment PDF

Page 1 of 11
CONTEMPORARY MARKETING
ASSIGNMENT

Page 2 of 11
Table of contents
1.0 Introduction..........................................................................................................................3
2.0 part I – Rationale to introduce new the product in the market.............................................3
2.1 Barriers to entry................................................................................................................3
2.2 Key buyer behavior trend.................................................................................................4
2.3 Indication of key competitors...........................................................................................4
3.0 Part II- Marketing plan.........................................................................................................5
3.1 Marketing objectives........................................................................................................5
3.2 Marketing mix Strategy....................................................................................................5
3.3 SWOT analysis.................................................................................................................6
3.4 PEST analysis...................................................................................................................7
3.3 Implementation.................................................................................................................8
3.3.1 Budgets..........................................................................................................................8
3.3.2 Strategy..........................................................................................................................8
4.0 Conclusion............................................................................................................................8
Reference..................................................................................................................................10

Page 3 of 11
1.0 Introduction
Contemporary business is all about changes in the external environment and the
corresponding internal changes as a process of survival. The external factors are more
dynamic now compared to that of a decade ago and hence it becomes necessary for the
management of the organizations to bring changes especially through new product
development. New product development is also being used as a means to avoid the price wars
with the other rival companies of the market as well. This paper considers an organization
and its new product development and showcases the rationality of the decision to introduce a
new product in the market. Along with this discussion, the paper also furnishes the marketing
analyses regarding the development of the new product as well.
The product which the organization is planning to introduce is a brinjal sauce which is unique
as there is no similar product on the market. The product is full of healthy ingredients which
set up the USP. Currently, most of the similar products such as tomato sauce use ingredients
which are not healthy for the customers of the market. In addition to that, studies have shown
that use of tomato sauce gives rise to heartburn and acidity as well. The modern health-
conscious customers of the market are now looking for a new alternative to tomato sauce and
hence the product of the company has a huge potential to attract customers.
2.0 part I – Rationale to introduce new the product in the market
2.1 Barriers to entry
Barriers to entry are referred to difficulties which are faced by the new businesses. These
difficulties, in the practical situation, come from a lot of direction. One of the potential
barriers to entry is the information of the market. The rationality of the introduction of the
new product is that the company already knows the details regarding the product that it is
going to introduce in the market. The new product that is going to get introduced is totally
new and the rivals companies do not have this product in their portfolio. Ul Haque and Hasan
(2016) stated that new product development and introduction comes with a great risk as the
organization does not have any clue regarding the impacts that it may have on the choices of
the buyers of the market. Another important barrier to the entry for the organization is the tax
rate of the government. Generally, the tax rate on the commercial income ranges from 25-
30% which can disrupt the operation of the company in its initial stages. Infrastructure
development is also another barrier to entry that can disturb the new product development of

Page 4 of 11
the company. However, Ernst et al. (2017) stated that modern businesses have the access to a
huge pool of investment which has the ability to demolish this barrier for the organization.
2.2 Key buyer behavior trend
The needs and the preferences of the buyers of the market especially in terms of food have
changed since the last decade (Borger, 2015). The customers of the market keep themselves
aware of what they are eating. Therefore, healthy products are becoming the choices for the
customers. As per the trend and recent market studies, the customers are left with fewer
buying option as the products of different companies are almost the same under the structure
of monopolistic competition. Wowak et al. (2016) highlighted that buyers preferences keep
on changing over time and it is the responsibility for the organization to upgrade the product
accordingly, not only to meet the needs of the customers of the market but also to maintain
the market share that it has over the rivals.
According to Morgan et al. (2015), the demand for fun foods or the fast foods has gone down
29% since 2010. Largest food chains and eateries have also started coming up with healthier
alternatives in order to fit with the changing preferences of the customers. Another most
important point here to note is that customers are flexible and the scope for the new product
in the market is high. Gopalakrishnan et al. (2015) stated that, historically, new products have
performed impressively in the initial phase after the introduction in the market. This implies
the acceptance of the customers for new products. However, the longevity of the introduced
product depends on the effectiveness and value that it generates for the customers of the
market.
2.3 Indication of key competitors
There are a number of rival players in the market which provides similar products to the
customers of the market. However, it is important to know that healthy alternative food
ingredient is still not used by the rivals of the market. Therefore, it is a rationale to introduce
new products into the market which is healthy and can fit the current preferences of the
customers of the market. Cooper (2016) noted that there is always a first mover advantage for
the businesses in the market. This allows them to influence the image that customers create in
their mind. Thus, there will always be an extra value for the product that customers launch
before any other players of the market. Thus, there is a huge potential for the business to get a
competitive edge. This also justifies the decision of the company to introduce brinjal sauce
for the customers.