Principles of Marketing .

This article discusses the marketing strategy for a new product launch in the US market. It covers the target audience, market segmentation, pricing strategy, and 4 Ps decisions for each stage of the product life cycle. The product is Basil Yogurt, which is 100% natural and promotes a healthy lifestyle. The psychographic market segmentation variable is used to target health-conscious consumers who seek taste and flavor. The product will be introduced using a penetration pricing strategy to gain market share.

RUNNING HEAD: Principles of Marketing 1
Principles of Marketing
(Student Name)
12/8/2018

Principles of Marketing 2
Introduction
The marketing strategy plays a prominent role for entrance with a new product in
the market. The company has planning to introduce new product in the market of
US for which they need to analyze the whole market in effective manner.
In the following part, there will be detailed discussion on the product being launch
in the market with concentrating on their target audience as well as various
strategies.
a. What is the product name? Describe the product.
Basil Yogurt.
 It is 100% natural with full of herbs with special kinds of yogurt mix and
dynamic decoration
 It enhances the healthy lifestyle among the user of yogurt with unique
taste.
b. Identify and explain which market segmentation variable you are using 5
The psychographic market segmentation variable will mostly used by the
company in which it covers:
 The Segment that are health conscious or health seekers
 The segment that want healthy yogurt but cannot compromise with their
taste
 The segment of anti-healthy devotees that are mostly driven by the taste
textural as well as situational experience of consuming yogurt
 Segment of flavor cravers who are loyal to their brand
 The segment of product lover, who eats yogurt due to the reason of health
benefits1
c. Why did you choose this method of customer segmentation? Be specific. 3
The reason of choosing behind psychographic market segment in due to the
reason:
 The company would able to get knowledge about the lifestyle of the
consumer through which they can easily target them.
 It provides overall understanding of the consumer which enables the
company to execute effective marketing to highly responsive segment.
1 James C Cross, Thomas J. Belich, and William Rudelius, ‘How marketing managers use market segmentation: An
exploratory study’ (2015) Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference 531-536 <
https://link.springer.com/chapter/10.1007/978-3-319-13254-9_107>

Principles of Marketing 3
 The company would able to identify the underlying needs and motives of
the targeted consumers.2
d. Who is the target market? Be specific. 7
 The US is mixture of cultures as well as it is one of the biggest business
center. Therefore, the company can target the hub of population for their
product
 The US has huge population in which mainly includes young generation.
The company will target the people with the age between 14- 35 for their
product.
 The population of US are mostly seeker of taste as well as their spending
habits are quiet high which help the company to target those people as
their product are tasty as well.
 Some of the population of US is health conscious therefore; the company
will target such segment for Basil Yogurt.
 Based on the socio-economic indicator, the company will target those who
have high, low as well as middle level of income for their product.3
 The spoonable yoghurt enjoy high penetration which is mostly eaten by
three-quarters of adults of US, therefore, the company will target those
segment for basil yogurt.
 The women as well as children has a great influence in the family, the
company will target mainly women as well as children for their product.
e. What are your product’s benefits to the target market?
 It help in improving the digestive system of the consumers, it contain
bacteria as well as their texture makes it easier to digest.
 The product intakes low fat ingredients. It is pure healthy food which
allows them to cover the deficiency of iron and calcium that make the
healthy lifestyle in the target market4.
f. At what price will your product be introduced? Why?
The price of the product will be decided by keeping in mind per cost of
production. The price of the product will be range between $4to $7 due to the
certain reasons such as:
2 Allan J Kimmel, Psychological Foundations of Marketing: The Keys to Consumer Behavior (Routledge 2014) 305-317.
3 Michael J Baker, Marketing strategy and management (Macmillan International Higher Education, 2014) 125-140
4, Bernard J Jaworski, ‘Commentary: advancing marketing strategy in the marketing discipline and beyond’, (2018) 34
Journal of Marketing Management 63-70

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 The price of the competitors is high which help in competing in the
competitors.
 The product is new in the market therefore; low price would help the
company to target the consumer easier.
g. What new product pricing strategy are you using? Why?
Penetration pricing strategy will be used in which in the starting the price of the
product will be low for limited period to gain market share. There are certain
reasons such as:
 It would help the company to enter in a market in effective manner and
also help in to grow the base of consumers as well as revenue
 This strategy would help the company to stave off hungry competitors or
to combat the efforts of competitors.
 The pricing strategy generates high quantity of sales which allow a firm to
improve their economies of scale as well as lower the marginal cost.
 This strategy would allow the consumer to accept as well as adopt the
product in efficient manner.5
h. What objectives will be accomplished by using this strategy? Be specific.
 The company would able to achieve maximum share in the market.
 This strategy would fulfill the objective of competing in the market as well
as able to survive in the competitive market
 It also helps the company to enhance their goodwill in the market when
consumers are able to find a bargain in the product.
 The objective of reaching out maximum consumers will be fulfilled
through this strategy6
i. Why is the product worth this price?
The product comes in the category of basic product. It is made of natural herbs
which promote healthy lifestyle; therefore this is the main reason that the product
is worth this price.
5 Thomas T Nagle and Georg Muller, The strategy and tactics of pricing: A guide to growing more profitably ( Rutledge,
2017) 44-48
6 Norman M Scarborough, ‘Essentials of entrepreneurship and small business management’ (Pearson, 2016) 82-87

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j. Identify and explain what happens to each of the 4 Ps decisions you make for
your product, at each stage of the PLC? 16 pts.
1) Name of PLC Stage: Introduction, Growth, Maturity, Decline 7
a) Product decisions for your product
 In the first stage the company will offer basic product of basil yogurt
 In the stage of growth, company will offer product extensions, try to
introduce new flavor with basil yogurt
 In the maturity stage, the company will diversify the brand and product
 In the last stage, it would be time to phase out weak items.
b) Price decisions for your product
 In the stage of introduction of product, the company will take decision to
use cost-plus price to sell their product within minimum margin.
 At the time of growth, the price to penetrate market will be decided by the
company.
 In the maturity stage, the price will be set according to the price of
competitors which may beat or match with them
 At the end, the price of basil yogurt will be cut down to survive in the
market.
c) Place decisions for your product
 in the first stage, the company will build selective distribution
 In the growth stage, the company will build intensive distribution
 In the maturity stage, build more intensive distribution
 In the declining stage, the phase comes out of unprofitable outlets.
d) Promotion decisions for your product
 In the introduction stage, the company will use heavy sale promotion to
entice trial
 In the growth stage, the company reduce to take the advantage of heavy
consumer demand
 In the maturity stage, the sales promotion increase to encourage brand
switching
 In the decline stage, sales promotion reduces to minimal level8.
7 John Stark, Product Lifecycle Management (Springer, Cham, 2015) 1-29.
8 Stefanie Hellweg and Mila Canals Llorenc, ‘Emerging approaches, challenges and opportunities in life cycle
assessment’ (2014) 344 Science 1109-1113

Principles of Marketing 6
Bibliography
Stark, John, Product Lifecycle Management (Springer, Cham, 2015) 1-29.
Hellweg, Stefanie, and Llorenç Mila Canals, ‘Emerging approaches, challenges and
opportunities in life cycle assessment’ (2014) 344 Science 1109-1113
Jaworski, Bernard J, ‘Commentary: advancing marketing strategy in the marketing
discipline and beyond’, (2018) 34 Journal of Marketing Management 63-70
Nagle, Thomas T., and Georg Muller, ‘The strategy and tactics of pricing: A guide to
growing more profitably’ (Routledge, 2017) 52-56
Cross, James C., Thomas J. Belich, and William Rudelius, ‘How marketing managers use
market segmentation: An exploratory study’ (2015) Proceedings of the 1990 Academy of
Marketing Science (AMS) Annual Conference 531-536 <
https://link.springer.com/chapter/10.1007/978-3-319-13254-9_107>
Kimmel, Allan J, Psychological Foundations of Marketing: The Keys to Consumer
Behavior (Routledge 2014) 305-317.
Baker, Michael J, Marketing strategy and management (Macmillan International Higher
Education, 2014) 125-140
Scarborough, Norman M, ‘Essentials of entrepreneurship and small business
management’ (Pearson, 2016) 82-87