Marketing Report: Analysis and Plan for Brinjal Sauce Introduction

This report presents a comprehensive marketing plan for the introduction of a new brinjal sauce product. The document begins with an introduction to contemporary marketing and the rationale behind introducing a novel product, emphasizing the shift in consumer preferences towards healthier food options. It analyzes barriers to entry, key buyer behavior trends, and the competitive landscape, highlighting the first-mover advantage. The marketing plan includes clearly defined marketing objectives, a detailed 7 P's marketing mix strategy (product, price, place, promotion), and thorough SWOT and PEST analyses to assess internal strengths and weaknesses, as well as external opportunities and threats. The implementation section covers budget allocation and strategic approaches, such as competitive pricing and distribution strategies. The report concludes by summarizing the key findings and recommendations for a successful product launch, emphasizing the importance of meeting the evolving needs of health-conscious consumers.

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CONTEMPORARY MARKETING
ASSIGNMENT

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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

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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

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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.

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Furthermore, the competitors of the market often get involved in price wars in order to
increase the market share. Morgan et al. (2015) highlighted that price war in a product market
leads to a poor quality of the products in the market. Therefore, it is always better to use
nonprice features in order to increase the market share. The new product of brinjal sauce may
allow the company to attract new customers to the market thereby increasing market share
without affecting the revenue and the quality of the products. Therefore, the introduction of
brinjal sauce which is not part of the product portfolio of the existing sellers makes sense and
has a huge potentiality.
3.0 Part II- Marketing plan
3.1 Marketing objectives
The objective of the marketing department of the company is to put across a message to the
consumer regarding the nutritional values of the product of the company. In other words, the
objective of the company is to meet the changed preferences of the customers.
3.2 Marketing mix Strategy
The 7 P’s of marketing is presented below:
Product The product of the company is a brinjal sauce
which is very uncommon given the existing
products of the market. It is high in
nutritional value as ingredients used in the
production are fresh and healthy.
Price The Company is the first mover and hence
competitive price will be used in order to
attract customers.
Place The product will be distributed to local
departmental stores and markets. Apart from
that, the brinjal sauce can also be bought
from the online platforms as well.
Promotion For the promotional purpose, the company
will use a number of channels. The analog
channels such as newspaper and leaflet will
be used at the initial stages after the

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introduction. As the business move forward
and product receives positive feedbacks,
other channels such as online marketing will
also be used.
Table 1: The marketing mix for the new product development
(Source: Developed by the learner)
3.3 SWOT analysis
SWOT analysis is important to understand the internal factors that impact on the operation of
the company. The SWOT analysis of the new product development is presented below:
Strength Weaknesses
 The product is new to the market and
none of the other sellers have
introduced it before. Therefore there
is a first movers advantage
 The product uses healthier ingredients
matching with the changing
preferences of the customers of the
market.
 There is an ambiguity associated with
the performance of the product in the
market as there was no prior
information available to the company.
 The other companies of the market
may follow the initiative and
introduce healthy products and
increase their respective market
shares (Cuervo-Cazurra et al. 2017).
Opportunity Threats
 The preferences of the customers of
the market have changed towards
healthier products. Therefore this
product has the potentiality to be
revolutionary earning lots of profit to
the company (Muethel and Hoegl,
2016).
 The first movers have the chance to
set a bench in the market using which
other products of other companies can
be judged. Therefore, the company
has the opportunity to establish a
 The competitors of the market are
highly active and hence can imitate
the strategies very quickly hampering
the increasing market share of the
company.
 Estimation regarding the new product
introduction cannot be made as this
production and hence information
related to past performances is not
available to the company which it
could use as a case study.

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brand reputation.
Table 2: The SWOT analysis of the new product development
(Source Developed by the learner)
3.4 PEST analysis
PEST analysis is the study of external factors that may impact on the performance of the
product. The PEST analysis for the new product development is showcased below:
Political The awareness from the government in favor
of using healthier products may give rise to
the demand for the new product of the
company. Apart from that, reduction in the
commercial taxes can also allow the
company to manage the finance of the
company in a smoother way.
Economical Fang et al. (2015) stated that with the
increase in the income of the customers of
the market, the demand for the healthier
product increases. Therefore, any kind of
economic boom may influence the sales of
the company and hence the revenue.
Social The lifestyles of the customers are an
important factor that impacts the sales of the
company. The main value of the product is
the nutritional value and hence healthier
lifestyle preferences can increase the demand
for the product of the company (Fuller,
2016).
Technological The changes in the technology of sauce
making can not only increase the nutritional
values of the product but it can also reduce
the prices of the products as well. Therefore,
a change in the technology may influence the
demand and hence the sales.

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Table 3: The PEST analysis for the new product development
(Source Developed by the learner)
3.3 Implementation
3.3.1 Budgets
Expenses Total Project Expenses
Salary and Benefits $ 14,000
Contract Services (consulting, professional, fundraising) $ 7,510
Occupancy (rent, utilities, maintenance) $ 4,500
Training & Professional Development $ -
Insurance $ 1,200
Travel $ 540
Equipment $ 7,100
Supplies $ -
Printing, Copying & Postage $ 320
Evaluation $ -
Marketing $ 1,250
Conferences, meetings, etc. $ -
Administration $ -
*Other -_____________ $ -
*Other -_____________ $ -
TOTAL EXPENSES $ 36,420
Table 4: the Budget expense of the project
(Source: Developed by the learner)
3.3.2 Strategy
As per the pricing strategy, the company will keep the margin low and hence a competitive
pricing strategy will be used for the first few months after the introduction. Lawson et al.
(2015) stated that it is important to generate the demand for the product first. Apart from that,
the distributional strategy will also be chosen such that it is easily available to the customers
of the market. Rather than direct retail outlet, the product will be delivered to the local stores
and market. This will also allow the company to have more advertisement through word of
mouth. This will also enable the company to get feedback directly from the customers of the
market in a cheaper way.
4.0 Conclusion
Therefore, this document summarises the details regarding the new product development.
The product is a brinjal sauce which is a new product on the market. The rationality of
introduction lies in the fact that the preferences of the customers of the market are changing

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towards a healthier lifestyle. The paper also presents the business plans for the new product
based on the studies of PEST and SWOT analysis. Furthermore, the budget and
implementation of the strategies have also been discussed in the paper regarding the
introduction of brinjal sauce.

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Reference
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Recommended for you 3:59 Concept to Consumer - Available at
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