Keto Chips Company Marketing Strategy: New Product Development Report

This report presents a marketing strategy for a Keto chips company, focusing on new product development and market analysis. The strategy includes a detailed examination of the product's value proposition, pricing, and potential barriers to entry. It also addresses key buyer behavior trends and identifies major competitors. The report outlines marketing objectives, strategies, and the marketing mix (product, place, promotion, and price). Implementation and control mechanisms, including an action plan and budget, are provided, along with recommendations for product differentiation and pricing strategies. The report draws on various academic sources to support its analysis and recommendations, making it a comprehensive guide for the company's marketing efforts.

Keto chips company marketing strategy 1
KETO CHIPS COMPANY MARKETING STRATEGY
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Keto chips company marketing strategy 2
Keto chips company marketing strategy
New product development
The company came up with a new product that suits the taste of its customer and made an
innovation to attract more attention. Keto chips will make up of cheddar cheese, sea salt, onion
powder garlic, and chilli powder, cumin and paprika, and Calamansi syrup. The most significant
value proposition for combined marketing campaign will be directed to the nutritional value in
each bottle. The name Keto chips give an impressive and highly distinguished brand name,
permitting for incredible labeling abilities. Price-size distribution of Keto chips
200grams sachet $1.99
300grams sachet $2.99
500 grams sachet $4.49
1kilogram sachet $7.99
The potential barrier to entry
The threat of entry (low): in term of products differentiation, the existing firm has a good brand
image and customer loyalty (Bunn and Ellis 2012, pp. 660). Therefore, it is going to be very
difficult for any new entrant to have the capital required to contend with such firms
(Cunningham and Harney 2012, pp. 57).
The threat of substitutes: there will be little threats to the KETO chips and people are preferring
to eat healthy foods, easy and conveniences one. Influence of customers: the UK consumers
negotiating power is high as there is low cost in switching to another product (Mosley and
Barrow 2013, pp. 37).

Keto chips company marketing strategy 3
Power of suppliers: there is a wide range of suppliers with direct competition and thus, the
retailer can change suppliers with low cost.
Competitive rivalry: the competitions among the business will affect the industry's profitability.
(Felgate and Fearne 2015, pp. 471)
Key buyer behavior trends
Cultural moves towards reducing anxiety and stress, and adopting a more mindful
attitude, is seeing and focusing more on health and self-care (Alexander and Doherty 2009, pp.
6). The portability and ease of keto foods mean more brands are diversifying their products range
including the health-boosting offerings. Personalisation is growing trends which are largely
driven by a faster pace of life, an evolving need for conveniences and higher digital expectation
from users (Aaker 2012, pp. 12).
Indication of key competitors
Various supermarkets have differing strategies trying to appeal slightly diverse types of clients
(Piercy, Cravens, and Lane 2010, pp. 5). The shops can be subdivided into higher status and
price (Waitrose and M&S). By values, more ranges, and special offers (Safeway, ASDA,
Morrison, and Tesco). Lower prices and bargain stores (Iceland, Lidl, Somerland, and Aldi)
(ASDA 2017).
Marketing objectives

Keto chips company marketing strategy 4
The objective of a company is to provide a quality product and avoid anything
detrimental to the consumer’s health. The firm objectives are to increase the promotion and
distribution and maintain price. The objectives are based on creating customer’s loyalty and
good relationship while promoting the company’s sales and profits (Harrison 2013, pp. 41). .
Marketing strategy
From a broad perspective, the company campaign’s general target markets are college
students. For effective marketing, it is vital to divide the market upon product, psychographics,
demographics, and psychographics positioning (Krafft and Mantrala 2010, pp. 7).
Marketing mix
The firm uses for four marketing operation (price, product, place, and promotion) and
also intensive development. The objectives of each marketing mix are definite to make the
company achieve its mission statement (McLoughlin and Aaker 2010, pp. 12).
Product
The company offers a wide variety of Keto chips. A wide variety of company’s products
complements each product and thus provides a customer with diversity. The company will have
to increase the range and quality of the products to cover a large market segment (Morschett
2011, pp. 15).
Place/distribution

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The company intends to include more colleges and universities to its retail intermediate
to boost Calamansi its Keto chips products. Additionally, the firm will start to offer the new
product to grocery marts, college campus stores, and restaurant in streets.
Promotion
The company will use event sponsorship, in-store sales promotions, interactive internet programs
such as Facebook and press release (Hensmans, Johnson, and Yip 2013, pp. 22). The messages
the company delivers to the customers will attract attention and address the users’ needs (Keller
2013, pp. 114).
Price
The company’s valuation must reflect the expenses of the college’s students due to the
targeted demographic. The best and appropriate method to access the market is to use price
penetration strategy (Mosley and Barrow 2013, pp. 36).
Implementation and control
Action plan: Actions plan will include also place and distribution plan. The locations of
outlets could be available and within the reach of fragmented markets. With a view to
reinforcing the brand recognition and awareness, there will be promotional mix including the
television and online media.
Budgets: the company wills impellent 50% of its total return on investment to impellent the
promotional mix (Hitt, Ireland, and Hoskisson 2008, pp. 8).
.

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Mechanism and control mechanism: The Company will use benchmarking to display its huge
expediency in monitoring progress and activities in a suitable method.
Recommendation
Product differentiation:
Supermarket, particularly the leading opponents are trying to create new ranges. The advantages
are that the company gets the added value through the product differentiation either through
premium price (Wood and Gibbs 2014). Other issues are the prices: supermarket is believed no
longer contest on the issue of price but still needs much consideration.

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References
Aaker, D.A., 2012. Building strong brands. Simon and Schuster, pp. 11-23.
Alexander, N., and Doherty, A. M. (2009). International retailing. Oxford: Oxford University
Press, pp.5-9.
ASDA (2017) About us, available
at <https://www.asdasupplier.com/about-us/aboutasda> [Accessed on 28 April 2018].
Bunn, P. and Ellis, C., 2012. Examining the behaviour of individual UK consumer prices. The
Economic Journal, 122(558), pp. 660
Cunningham, J., and Harney, B. (2012). Strategy & strategists. Oxford: Oxford University Press,
pp.56-61.
Felgate, M. and Fearne, A., 2015. Analyzing the impact of supermarket promotions: A case study
using Tesco clubcard data in the UK. In The Sustainable Global Marketplace Springer, Cham,
pp. 471-475.
Harrison, A. L. (2013). Business environment in a global context. Oxford: Oxford university
press, pp. 40-44.
Hensmans, M., Johnson, G., and Yip, G. S. (2013). Strategic transformation: Changing while
winning. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan, pp.21-26.
Hitt, M. A., Ireland, R. D., and Hoskisson, R. E. (2008). Strategic management: Competitiveness
and globalization. Mason, Ohio: South-Western, pp.7-14.
Keller, K.L., 2013. Brand equity and integrated communication. In Integrated
Communication, Psychology Press. pp. 113-142.
Krafft, M., and Mantrala, M. K. (2010). Retailing in the 21st century: Current and future trends.
Heidelberg: Springer, pp. 5-15.

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McLoughlin, D., and Aaker, D. A. (2010). Strategic market management: Global perspectives.
Hoboken, N.J: Wiley, pp.10-19.
Morschett, D. (2011). European retail research: Volume 25, Issue I. Wiesbaden: Gabler
Verlag ,pp. 14-18.
Mosley, R., and Barrow, S. (2013). The employer brand: Bringing the best of brand management
to people at work. Hoboken, N.J: Wiley, pp.35-38.
Piercy, N.F., Cravens, D.W. and Lane, N., 2010. Marketing out of the recession: recovery is
coming, but things will never be the same again. The Marketing Review, 10(1), pp.3-23.
Wood, Z. and Gibbs, S., 2014. Tesco to launch own brand smart phone. The Guardian, 7th May
2014. [Online]. Available at <https://www.theguardian.com/business/2014/may/07/tesco-to-
launch-own-brand-smartphone> [accessed on 27 April 2018].