Marketing Report: Launch Strategy for Donald B's Cookie Shots Product

This marketing report examines the launch strategy for Donald B's new product, 'Chocolate Chocolate Cookie Shots,' a packaged cookie targeting the 15-25 age group. The report analyzes the competitive landscape, identifying Kimberley’s Bakeshoppe as a key competitor, and conducts a marketing environmental scan, considering competitive, regulatory, economic, and socio-cultural forces. It details market segmentation using the STP approach (segmentation, targeting, and positioning), defining the target market as health-conscious individuals aged 15-25. Product positioning emphasizes the combination of health and taste. The marketing mix is explored, including product ideas, features, pricing strategies (penetration pricing), distribution channels (retailers, online), and promotion strategies (advertising, public relations). The report also includes a marketing communications budget and concludes with an extended marketing mix analysis.

Marketing strategy Report
Student Name:
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Executive Summary
The prime purpose of this document involves studying and analyzing various factors required for
a successful launch of Donald B’s new product “Chocolate Chocolate Cookie Shots” namely
product pricing, marketing environment, STP, and marketing communications budget. The new
product shall be launched under the packaged cookies category.
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Key Competitor for Donald B......................................................................................................4
Marketing Environmental Scan....................................................................................................5
Market Segmentation...................................................................................................................6
Target Market Profile...................................................................................................................7
Product Positioning......................................................................................................................7
Positioning map............................................................................................................................8
Marketing Mix variable..............................................................................................................10
Pricing........................................................................................................................................14
Distribution.................................................................................................................................15

Promotion...................................................................................................................................16
Marketing Communications Budget..........................................................................................17
Extended marketing mix............................................................................................................18
Conclusion.....................................................................................................................................19
Introduction
Donald B is known for its product like cookies, crackers and bread. The company has
positioned itself as one of the premium bakeries selling chocolate, crackers, and cookies as its
main selling products. Donald B has maintained its position by introducing innovative products
every time the customers demand. Donald B is willing to expand locally through new product
development. This time Donald B has decided to launch a new product called “Chocolate
Chocolate Cookie Shots”. These cookies are a combination of health and taste. Made from whole
grains, the product has high fibre and the mix of chocolate and milk gives it a yummy taste. The
targeted age group is 15-25 years.

 Product Focus: Chocolate, Crackers, Cookies
 Key Strengths: Healthy plus Tasty
 Weaknesses: Lack of Product variation
Key Competitor for Donald B
Origins of the Company: Kimberley’s Bakeshoppe is a prominent competitor.
History in Canada: Kimberley’s Bakeshoppe is the major competitor. It has a stronghold in the
market due to its various innovative products. The in-house bakery mostly uses their ancient
recipes. Cookies, cakes, pastries and bread are its major productsTargeting(Dibb& Simkin,
2017).
 Product Focus: Cookies, Cakes and Pastries
 Key Strengths: Loyal Customer base
 Weaknesses: Products are high calorie and high sugar ones
Marketing Environmental Scan
Competitive Forces:
Kimberley’s Bakeshoppe is the major competitor. It has a stronghold in the market due
to its various innovative products. The in-house bakery mostly uses their ancient recipes.
Cookies, cakes, pastries and bread are its major products.
Regulatory Forces:

Consumers are better connected as compared to the earlier times. The expectations for
safer and healthier foods along with accurate labelling are on a high rise. The shifting consumer
landscape like diversity, ageing population and better access to information regarding ingredients
are affecting the way the food industry operates (Jenkins& Williamson,2015). The consumers are
demanding more accountability and transparency in the food they eat (Pearce, Robinson, &
Subramanian, 2017).
Economic Forces:
The Global GDP for the year 2016 has shown a growth rate of 1.5% which is higher than
the earlier year. This growth is due to the higher spending habits of the people. There has been a
rise in the employment opportunities as well in the year 2018 as compared to 2016 (Pearce,
Robinson& Subramanian, 2017).
Socio-Cultural Forces:
There has been a rise in demand for the products which are not only tasty but also high in
energy content. The main reason behind this increase is the customer’s motive to stay fit and lead
a healthy lifestyle and prevent diseases. The new product will be developed in such a way that it
has high quality as well as healthy (Shultz, 2017).
Technological Forces:
The customers now days are more technologically advanced and prefer to do online
shopping as compared to shopping physically in malls or stores (Di Benedetto, 2017).
Market Segmentation

There are cookies for a specific section of customers like diabetic, bodybuilders, kids, etc.
But for a long time now there has been a demand for a cookie which has great taste and texture.
To fulfil this demand of customers, a new product “Chocolate Cookie Shots” has been
introduced. This cookie is made of whole grains which makes it rich in fibre and the combination
of chocolate and milk makes it very delicious (Beard&Easingwood, 2016).
Here, Donald B can use STP theory of product positioning. STP stands for segmentation,
targeting, and positioning, and it is a great approach for modern marketing (Dewhirst&
Davis,2015). It helps marketers in prioritizing propositions and developing personalized products
to engage with the target buyer. STP is relevant in this case. For example, applying the target
marketing persona can help understand the audience. Through segmentation approach one can
identify the niche and needs, find a mature market for new customers, and deliver a more
focused product or service (Moutinho, 2015).
Geographics Initially, the product will be launched in the metropolitan
cities and later will be launched in smaller towns too. S
Demographics The age group of 15-25 years shall be a target right
Psychographics “Chocolate Chocolate Cookie Shots” are a high fibre cookie
which has a chocolate and milk fillings which makes it
healthy as well as delicious the targeted age group is 15-25
years (Wensley, 2016).

Behaviouristic The whole grains make if high fibre and the combination of
chocolate and milk make it very delicious. This product is a
combination of both health and taste
It can be frequently purchased due to the above-mentioned
benefits
Target Market Profile
Christina is a 20-year girl. She is a member of the local gym. She loves to stay fit and loves
eating cookies. She is always in search of some cookies which are healthy as well as tasty. She
likes surfing the internet for various researches and also prefer online shopping.
Product Positioning
Positioning Statement:
“Chocolate Cookie Shots” is for the people who are searching for the combination of
health and taste within one cookie. The whole grain component makes the product high fibre and
healthy and the combination of chocolate and milk gives it a yummy taste (Chiu, Chen, & Tzeng,
2016).
ELEMENT OF POSITIONING
STATEMENT
YOUR BRANDED PRODUCT
(1) the branded product name Cookies Shots
(2) the category in which it competes Packed Cookies

(3) one or two main reasons why the
target market buys the branded product
High fibre. Combination of both health and
taste
(4) what sets the product apart from the
competition
The unique combination of whole grain
cookies and chocolate and milk filling
Positioning map
Probable Product attributes on which the target market bases its purchase decision on:
 Healthy
 Delicious
 High Fibre
 Price
 Quality
Most important attributes for Cookie Shot’s target market:
 Healthy
 Delicious

“Chocolate Chocolate Cookie Shots” shall have a combination of both health and taste.
This makes it superior to the other two competitors Circles & Squares and Kimberley’s
Bakeshoppe. The targeted age group is 15-25 years. Customers who want to stay healthy and
prefers taste and quality as well.
Major competitive brands to your new product in this category are:
 Kimberley’s Bakeshoppe
 Circles & Squares
Marketing Mix variable
Ideas for how the product can be offered
 Idea Generation: Brainstorming potential product concepts with the whole team
1. Healthy
2. Tasty
3. High Fibre
4. Chocolate Flavor
5. Sugar-Free
6. Nuts

 Screening and Evaluation: For evaluating the product concepts to conclude an
agreement on the final product concept that will be developed for the market. The table
below shows the ability of each concept to fulfil the two chosen criteria for product
success. The + symbol represents positively satisfying criteria, and the – shows not
satisfying criteria.
PRODUCT
CONCEPT
POINT OF DIFFERENCE
(+/-)
MARKET ATTRACTIVENESS
(+/-)
1. Healthy +++ + ++
2. Tasty +++ ++
3. High Fibre +++ +++
4. Chocolate flavour +++ ++
5. Sugar-Free --- ---
6. Nuts -++ ++-
 Product Concept:
Product Concept: Combination of health and taste with a low fibre
component
 Physical Product:

FEATURES RATIONALE
Appearance: The cookie will be of a golden-
brown colour and cup-shaped
with chocolate and milk fillings
The cup shape of the cookie will
attract the customers to try the
product once.
Ingredients: Whole grains, baking powder,
lite butter, chocolate and milk
The combination of healthy and
delicious ingredients can attract
customers.
Packaging Recyclable material shall be
used for packaging purposes,
and theredetailed labelling will
also be given
The buyers can rec about
ingredients and avail information
about the health benefits of the
product and make decision
accordingly.
Differentiation: Whole grains as the main
ingredient
The ingredients make the
producthigh in fibre component
and thus beneficial for health
 Product Name: To conclude an agreement on the final product name, first 5
names are chosen, and then the top three will be shortlisted.

The table below shows the three shortlisted product names. The + symbol represents
positively satisfying criteria, and the – shows not satisfying criteria.
Criteria Chocolate
Cookie Shots
Chocolate and
milk Cookies
Cup Cookies
1. Product benefits. +++ ++- --+
2. Memorableand positive. +++ +- -+
3. In accordance with company
image.
+++ ++ - -
4. Legally protected name. ++ -- -+
5. Simplicity +++ + +
 The final choice of brand name: Chocolate Cookie Shots
Three Levels of Product
In terms of Philip Kotler, a product has three different levels at which it can be utilized by the
consumer(Kotler, 2012). In this case too, the Chocolate cookie shots can be offered at three
different stages and here’s how it can be offered:

Core Benefit: It’s the level where fundamental need is served to satisfy buyers when they buy the
cookie. The core benefit of cookie shots is to give nutrition and quality taste. The cookie here
can be served as a chocolate base to serve this need. It offers no competitive benefit but it can be
served as a basis form of chocolate cookie or chips (Kotler, 2012).
Actual Product: It’s the level where the cookie is served with it’s specific or specialty taste. It’s
where a chocolate base is turned into a classic dessert with chocolate chip molded into the form
of a shot glass and filled with crème and vanilla milk(Kotler, 2012).
Augmented Product: It’s the final phase where cookie is tailored to meet the market needs and
attract the buyers. At this phase, the cookie shots will have attractive packaging, international
branding, and apt pricing (Kotler, 2012).
Pricing
Pricing Approaches:
Chocolate Cookie Shots will be a Premium product and a leader in the healthy cookie's
domain. Penetration Pricing Strategy will be used here. The product will first carve a place for
itself and when the product is able to capture market shares, bulk pricing strategy will ne used
(Marek, 2014).
Pricing Objectives:
Accelerate the profits by 20% with business ethics as its priority
Pricing Constraints:
New product demand is likely to increase once the product gains recognition in the
market. In the later stage, marketing and advertising costs will be estimated before setting the
final price (Öztamur&Karakadılar, 2014).

Competitor product Pricing Analysis:
For Comparing the price of cookie shot brand relative to Donald B’s key competitor”
Product Prices
Chocolate Cookie Shots by Donald B (1 box of
12 cookies)
$3.59
Cookies by Kimberley’s Bakeshops (1 box of 12
cookies)
$3.88
Costco Cookies by Circles &Square (1 box of 12
cookies)
$4.20
Distribution
 Retailers:
Chocolate Cookie Shots will be sold out through corporate chains and contractual
systems. A number of retail outlets, departmental stores and supermarket (Baker, 2014).
 Wholesalers & Agents:
Wholesalers and Distributors will not be appointed now but can be at a later stage.
 Alternate forms of retailing:
Online retailing will also be undertaken
 In-store strategy:

Chocolate Cookie Shots will be placed at a separate rackswhich will allow buyers to have
a detailed look at the product(Burns, Bush & Sinha, 2014).
 Competitor analysis:
Kimberley’s Bakeshoppe’s strategy which is different is that they sell through their own
website. The rest of the online distribution part is similar to Chocolate Chocolate Cookie Shots
Promotion
Advertising
Internet
 Social Media (Facebook, Twitter, Facetime), Personal Emailing Campaign, Online Ads
and Videos
Traditional media
 Outdoor Banners and Posters will be placed around metro cities and then the smaller
towns. Pamphlets distribution shall also be undertaken (Baker, 2014).
Public Relations
 PR Tools
 Media release and press release will be considered here. Online updating shall
also be done at the same time
Consumer Sales Promotions
 Online Promotions
 Online blogs and articles will be published with product details and benefits.
Photoshoot pictures shall also be shared online(Burns, Bush & Sinha, 2014).

Traditional Promotions
 Contest and Coupon distribution shall be undertaken with complementary gifts
and prizes(Burns, Bush & Sinha, 2014).
Direct Response
 Offline approaches
 Loyalty programs (Burns, Bush& Sinha, 2014).
 Online approaches (email campaigns, online display ads, pay-per-click ads)
 Bulk emailing and online ads will be sent to potential customers
Event Sponsorship
 They will be used for large scale product launch and press releases
Personal Selling
 To collect customer reactions and feedbacks for the product
Marketing Communications Budget
The company’s promotional budget is $1 million. Here’s how $1 Million will be allocated to
different media, ads, and promotional channels.To keep the allocations bifurcated; the total
budget has been allocated as under:
 Online Marketing – 30%
 Sampling – 40%
 Others – 30%

Marketing Activities Budget
Social Media: Facebook, Instagram, Twitter,
Youtube
$ 3,00,000
Sampling: Costo $ 4,00,000
Banner ads/skyscrapers ads $ 2,00,000
Coupons and Referral rewards $ 1,00,000
Marketing Budget $1,000,000
Extended marketing mix
Extended marketing mix has a combination of a total of seven marketing elements that
work together to help an organization achieve the marketing objectives and strategy. The seven
elements of an extended marketing mix are product; price; place; promotion; people; process and
physical (Cravens & Piercy, 2016).
Since product, price, place, the promotion has already been discussed above. This section
will emphasize on people and process as another two significant elements of marketing.
 People: These are people who are responsible for reaching customers and
delivering the product (David, 2018).
 Process: This is the step that determines the system of procedure that is carried
out to deliver the product to the end users in an efficient and profitable manner (Daly,
2012).
In this scenario, the people and the process are as follows:

Responsible Person Process
Market Researcher
Market research shall be undertaken. A detailed report will also be
submitted for analysis
Marketing Manager A detailed report study for further course of action will be done
Brand Manager Brand Logo and Name will be finalized in this step
Brand Manager, Advertising
Agency
The first press release was done to introduce the new
product to the potential customers
Advertising Agency
Online blogs and articles, Bulk Emailing
campaigns, with other social media, is
used in online marketing campaign
Conclusion
The objective of this report studied various factors required for a successful launch of Donald
B’s new product “Chocolate Chocolate Cookie Shots” namely product pricing, marketing
environment, STP, and marketing communications budget. The new product shall be launched
under the packaged cookies category.

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