Marketing Plan: Sammy's Sandwiches Expansion Strategy in New York
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This report outlines a comprehensive marketing plan for Sammy's Sandwiches' expansion into New York, focusing on introducing two new products: Venison steak (Sammy’s New York Special) and a Bacon sandwich. It explores methods for determining customer needs, including focus groups, observations, and surveys. The SWOT analysis identifies customer service as a competitive advantage while acknowledging inherent risks such as regulatory changes and competition. The plan incorporates a CRM software system (POS IQ) to enhance customer relationships and track sales. It also details distribution channels, key considerations for entering the global market, and a pricing strategy that balances costs, consumer acceptance, and competitor prices. The promotional strategy includes mass media and social media channels, along with sales promotion activities to drive customer engagement. This strategic approach aims to establish Sammy's Sandwiches successfully in the New York market.

Marketing
Sammy’s Sandwich
Sammy’s Sandwich
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Marketing 1
Contents
Marketing proposal..........................................................................................................................3
A1 Two new products and/or services.............................................................................................4
A1- a) Three different methods...................................................................................................4
A1- b) One competitive advantage..............................................................................................5
A1- c) Two inherent risks............................................................................................................6
A2 Customer relationship management (CRM) software system...................................................7
A2- a) Information generated by the CRM software...................................................................8
A3 One distribution channel............................................................................................................8
A3- a) Key considerations for entering a global market..............................................................9
A3- b) Global supply chain may affect the product or service..................................................10
A4 Major pricing strategy..............................................................................................................10
A4- a) Costs associated..............................................................................................................11
A4- b) Consumer acceptance of the price..................................................................................11
A4- c) Competitor prices...........................................................................................................12
A5 Promotional strategy................................................................................................................12
A5- a) Two mass media and two social media channels...........................................................13
A5- b) Two sales promotion activities.......................................................................................14
References......................................................................................................................................15
Appendix........................................................................................................................................18
Contents
Marketing proposal..........................................................................................................................3
A1 Two new products and/or services.............................................................................................4
A1- a) Three different methods...................................................................................................4
A1- b) One competitive advantage..............................................................................................5
A1- c) Two inherent risks............................................................................................................6
A2 Customer relationship management (CRM) software system...................................................7
A2- a) Information generated by the CRM software...................................................................8
A3 One distribution channel............................................................................................................8
A3- a) Key considerations for entering a global market..............................................................9
A3- b) Global supply chain may affect the product or service..................................................10
A4 Major pricing strategy..............................................................................................................10
A4- a) Costs associated..............................................................................................................11
A4- b) Consumer acceptance of the price..................................................................................11
A4- c) Competitor prices...........................................................................................................12
A5 Promotional strategy................................................................................................................12
A5- a) Two mass media and two social media channels...........................................................13
A5- b) Two sales promotion activities.......................................................................................14
References......................................................................................................................................15
Appendix........................................................................................................................................18

Marketing 2
Appendix 1.1..............................................................................................................................18
Appendix 1.1..............................................................................................................................18
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Marketing 3
Marketing proposal
The paper talks about Sammy's Sandwiches who is currently situated in Los Angeles, California
with more than 50 stores in approximately 7 countries. The company is known for its sandwiches
as this company offers different types of sandwiches, drinks, salads, nachos, and others to their
customers. The company is willing to expand the business in other countries where the demand
for the product is increasing. Considering the increasing demand of the New York customers for
sandwiches the company decided to expand the business in New York (Mental Floss, 2017). The
paper reflects the two new products that the franchise of the company will serve its customers in
New York.
Currently, Sammy Sandwiches is offering different types of sandwiches not only with beef but
also offers pork, ham, pastrami, turkey, and lamb. Along with this, the company believes in
offering sandwiches with green veggies and salads that make it a healthy option for the
customers. The company offer varieties of sandwiches include Sammy At Norb’s; Ping on wing
(which include turkey breast, H&B Bacon, H&B Ham, Red onion, with Swiss cheese served
with a baguette), The Turkey (Turkey Breast with choice of cheese and onion on top), Chicken
(House marinated chicken breast with the Swiss cheese and roasted garlic mayo), The veg
(includes different vegies including roasted red peppers and garlic mayo on wheat bread), Han &
cheese (H&B ham with choice of cheese) Pastrami (a pile of pastrami with Swiss cheese and
spicy mustard), The Reuben, Sammy Italian, Jill’s Hot Italian beef and many others.
Marketing proposal
The paper talks about Sammy's Sandwiches who is currently situated in Los Angeles, California
with more than 50 stores in approximately 7 countries. The company is known for its sandwiches
as this company offers different types of sandwiches, drinks, salads, nachos, and others to their
customers. The company is willing to expand the business in other countries where the demand
for the product is increasing. Considering the increasing demand of the New York customers for
sandwiches the company decided to expand the business in New York (Mental Floss, 2017). The
paper reflects the two new products that the franchise of the company will serve its customers in
New York.
Currently, Sammy Sandwiches is offering different types of sandwiches not only with beef but
also offers pork, ham, pastrami, turkey, and lamb. Along with this, the company believes in
offering sandwiches with green veggies and salads that make it a healthy option for the
customers. The company offer varieties of sandwiches include Sammy At Norb’s; Ping on wing
(which include turkey breast, H&B Bacon, H&B Ham, Red onion, with Swiss cheese served
with a baguette), The Turkey (Turkey Breast with choice of cheese and onion on top), Chicken
(House marinated chicken breast with the Swiss cheese and roasted garlic mayo), The veg
(includes different vegies including roasted red peppers and garlic mayo on wheat bread), Han &
cheese (H&B ham with choice of cheese) Pastrami (a pile of pastrami with Swiss cheese and
spicy mustard), The Reuben, Sammy Italian, Jill’s Hot Italian beef and many others.
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A1 Two new products and/or services
The products that the franchise is currently offering to their customers include all the products
that they are offering at Calfornia but along with this the brand will offer two new products that
include Venison steak with the name Sammy’s New York Special (free range deer meat and
topped with the sweet beery sauce and onions) and Bacon sandwich with the name Sammy’s
bacon sandwich (include bacon with egg and choice of cheese) with a complementary of mojito
or drinks (Morabito, 2013).
A1- a) Three different methods
There are different methods that can be used by the companies to determine the needs of
customers and an existing global market for the Sammy's New York Special and Sammy's bacon.
Out of these methods, the three major methods that can be used by the company include focus
groups, observations, and the Survey Questionnaires. Sammy’s Sandwich conducted the primary
research with the use of focus groups. In this method, the company gathered the group of people
(men and women) with the age group of 18-30 years belongs to New York and then asked few
insightful questions with the help of video conferencing. These insightful questions of the
include questions related to their new product (Venison steak and Bacon sandwich), their
preference and taste, feedback for the product and many others. The company offered free
coupons, vouchers and gift money to their participants. The group of people with 18-30 years
were selected for gathering because the major target market of the company includes men and
women with the same age group. Focus group method of primary research falls under the
qualitative research that can help the company in analyzing the trend (Bryman & Bell, 2015).
A1 Two new products and/or services
The products that the franchise is currently offering to their customers include all the products
that they are offering at Calfornia but along with this the brand will offer two new products that
include Venison steak with the name Sammy’s New York Special (free range deer meat and
topped with the sweet beery sauce and onions) and Bacon sandwich with the name Sammy’s
bacon sandwich (include bacon with egg and choice of cheese) with a complementary of mojito
or drinks (Morabito, 2013).
A1- a) Three different methods
There are different methods that can be used by the companies to determine the needs of
customers and an existing global market for the Sammy's New York Special and Sammy's bacon.
Out of these methods, the three major methods that can be used by the company include focus
groups, observations, and the Survey Questionnaires. Sammy’s Sandwich conducted the primary
research with the use of focus groups. In this method, the company gathered the group of people
(men and women) with the age group of 18-30 years belongs to New York and then asked few
insightful questions with the help of video conferencing. These insightful questions of the
include questions related to their new product (Venison steak and Bacon sandwich), their
preference and taste, feedback for the product and many others. The company offered free
coupons, vouchers and gift money to their participants. The group of people with 18-30 years
were selected for gathering because the major target market of the company includes men and
women with the same age group. Focus group method of primary research falls under the
qualitative research that can help the company in analyzing the trend (Bryman & Bell, 2015).

Marketing 5
Another highly effective way for the company was an observation in the new market. In this
method, observation can be done in two ways observation through interaction and
communication and observation without interaction and communication (Bryman, 2015).
Sammy sandwich conducts both the method they observed the behavior of the responder for
Sammy's bacon and for Sammy's New York Special that helped them in understanding the
behavior of the respondents. While communicating with the person they got to know about the
preference of the customers in the sandwiches which helped the company in understanding the
needs and buying behavior towards sandwiches. This approach is more personal approach if we
compare it with the survey and Questionnaires. In this method, the company gives the scope to
the customers to share their opinions as a company asks open-ended questions with their peoples
(Reinharz, 2017). This gives an opportunity to the company to bring the changes in the product
considering the behavior.
Survey and Questionnaires is another method through which the company can analyze the
market. This method is effective in understanding the feedback of the customers present in the
market (Babin & Zikmund, 2015). After conducting the survey, it has been analyzed that 45% of
the people like to consume venison steak and 35% people desire to have bacon. In addition,
people who consume it often desire to consume egg and sausage. The survey reflected the price
range for the product in which they mentioned the price for meat sandwich and for an egg
sandwich. (Refer Appendix 1.1)
A1- b) One competitive advantage
SWOT analysis was conduct which is an effective way to identify strengths, weaknesses,
opportunities, and threats of this marketing proposal. This analysis is effective for the company
as it provides the structured information related to the competitive advantage of the business and
Another highly effective way for the company was an observation in the new market. In this
method, observation can be done in two ways observation through interaction and
communication and observation without interaction and communication (Bryman, 2015).
Sammy sandwich conducts both the method they observed the behavior of the responder for
Sammy's bacon and for Sammy's New York Special that helped them in understanding the
behavior of the respondents. While communicating with the person they got to know about the
preference of the customers in the sandwiches which helped the company in understanding the
needs and buying behavior towards sandwiches. This approach is more personal approach if we
compare it with the survey and Questionnaires. In this method, the company gives the scope to
the customers to share their opinions as a company asks open-ended questions with their peoples
(Reinharz, 2017). This gives an opportunity to the company to bring the changes in the product
considering the behavior.
Survey and Questionnaires is another method through which the company can analyze the
market. This method is effective in understanding the feedback of the customers present in the
market (Babin & Zikmund, 2015). After conducting the survey, it has been analyzed that 45% of
the people like to consume venison steak and 35% people desire to have bacon. In addition,
people who consume it often desire to consume egg and sausage. The survey reflected the price
range for the product in which they mentioned the price for meat sandwich and for an egg
sandwich. (Refer Appendix 1.1)
A1- b) One competitive advantage
SWOT analysis was conduct which is an effective way to identify strengths, weaknesses,
opportunities, and threats of this marketing proposal. This analysis is effective for the company
as it provides the structured information related to the competitive advantage of the business and
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Marketing 6
also reflects the marketing strategy of the firm (Laszlo & Zhexembayeva, 2017). Along with this,
the analysis helps in understanding two inherent risks that indulge with the two new products
introduced by the company. The analysis helped in identifying the competitive advantage of the
Sammy Sandwiches that is customer services that they offer to their customers. The customer
service is the only way through which the franchising of the company in New York is able to
make its position in the market. Sammy’s Sandwiches tries to celebrate every occasion and
festivals in their outlets which are an effective way providing customer services comparing it
with its competitors. Moreover, currently, the company introduced Venison steak and Bacon
sandwich along with that the company offered complimentary drinks to their customers. This
complementary add on to the experience of their customers which makes the customer service
effective.
A1- c) Two inherent risks
The launch of the product in the dynamic environment is not easy for the company as there is
two inherent major risk associated with the launching of the new products and services in the
global market (Peng, 2016). These risks are fluctuations in the rules and regulation of Industry
by the government which means instability in the policies and competition in New York. In New
York working in the dynamic environment is a challenge for the Sammy Sandwiches. These
fluctuations might lead to the failure of the launch of the product in the market. Therefore, the
company should analyze the external environment factors that might create an impact on the
working of the company. This analysis will also help them in understanding the environment and
they will be able to make changes quickly.
Another inherent risk that the company might be dealing with is competitors available in the
market of New York. In the competitive market, there are many companies who offer save sort
also reflects the marketing strategy of the firm (Laszlo & Zhexembayeva, 2017). Along with this,
the analysis helps in understanding two inherent risks that indulge with the two new products
introduced by the company. The analysis helped in identifying the competitive advantage of the
Sammy Sandwiches that is customer services that they offer to their customers. The customer
service is the only way through which the franchising of the company in New York is able to
make its position in the market. Sammy’s Sandwiches tries to celebrate every occasion and
festivals in their outlets which are an effective way providing customer services comparing it
with its competitors. Moreover, currently, the company introduced Venison steak and Bacon
sandwich along with that the company offered complimentary drinks to their customers. This
complementary add on to the experience of their customers which makes the customer service
effective.
A1- c) Two inherent risks
The launch of the product in the dynamic environment is not easy for the company as there is
two inherent major risk associated with the launching of the new products and services in the
global market (Peng, 2016). These risks are fluctuations in the rules and regulation of Industry
by the government which means instability in the policies and competition in New York. In New
York working in the dynamic environment is a challenge for the Sammy Sandwiches. These
fluctuations might lead to the failure of the launch of the product in the market. Therefore, the
company should analyze the external environment factors that might create an impact on the
working of the company. This analysis will also help them in understanding the environment and
they will be able to make changes quickly.
Another inherent risk that the company might be dealing with is competitors available in the
market of New York. In the competitive market, there are many companies who offer save sort
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Marketing 7
of products like Sammy Sandwiches. The competitors form different strategies (innovation in
products, improvement in customer services, low prices and many others) to provide effective
services in the market. These strategies of the competitors generate the risk for the company in
the New York market. It will be difficult for the Sammy Sandwiches to attract and retain the
customers towards their new products when the existing leaders of the market are available.
Most of the customer believes in the quality of the products which makes them loyal to a brand
who can offer them a quality which is a risk for the company. To minimize this risk the company
can try to offer high quality at low prices which will be possible by forming ties up with the
suppliers who can offer the best quality raw material. It is essential for the company to promote
its products in the market effectively.
A2 Customer relationship management (CRM) software system
CRM software is a system that provides company to nurture relationships with the customers and
forecasts to drive sales or sustain long-term profitability (Eichorn, 2017). The company can
make use of the POS IQ as this is the ultimate customer monitoring and analysis tool that allows
the company to choose for tracking different activities. Along with this, this software provides
discount and marketing activities for the company (Fairbanks, 2018). Considering the fact, that
restaurant industry is changing rapidly with the change in the technology. POS IQ software is
designed especially for the restaurants who believe in making the customer happy with the
delight services. POS perform all the activities related to tracking the order and delivers the
product made by the customers. Along with this, this software contributes to tracking payroll,
employee schedules and delivery (IQ Interactive, 2017). This is the easiest system through which
the employees of the company can quickly split bills, take card payments without any delay.
of products like Sammy Sandwiches. The competitors form different strategies (innovation in
products, improvement in customer services, low prices and many others) to provide effective
services in the market. These strategies of the competitors generate the risk for the company in
the New York market. It will be difficult for the Sammy Sandwiches to attract and retain the
customers towards their new products when the existing leaders of the market are available.
Most of the customer believes in the quality of the products which makes them loyal to a brand
who can offer them a quality which is a risk for the company. To minimize this risk the company
can try to offer high quality at low prices which will be possible by forming ties up with the
suppliers who can offer the best quality raw material. It is essential for the company to promote
its products in the market effectively.
A2 Customer relationship management (CRM) software system
CRM software is a system that provides company to nurture relationships with the customers and
forecasts to drive sales or sustain long-term profitability (Eichorn, 2017). The company can
make use of the POS IQ as this is the ultimate customer monitoring and analysis tool that allows
the company to choose for tracking different activities. Along with this, this software provides
discount and marketing activities for the company (Fairbanks, 2018). Considering the fact, that
restaurant industry is changing rapidly with the change in the technology. POS IQ software is
designed especially for the restaurants who believe in making the customer happy with the
delight services. POS perform all the activities related to tracking the order and delivers the
product made by the customers. Along with this, this software contributes to tracking payroll,
employee schedules and delivery (IQ Interactive, 2017). This is the easiest system through which
the employees of the company can quickly split bills, take card payments without any delay.

Marketing 8
Sammy Sandwiches can make use of this system effectively as this system can guide them to a
way to retain their customers by fulfilling their needs with the help of tracking.
A2- a) Information generated by the CRM software
The information that is generated with the help of this software can guide the restaurants to drive
CRM practices and track the sales in the global market. Sammy Sandwiches can make use of this
system as this software is affordable and easy to be used by the companies (Expert CRM
software, 2018). This system includes a time-saving feature which helps the company in
analyzing sales data and managing the inventory, staff, and customers which helps the company
in performing CRM practices. Sammy Sandwich can make use of the basic point of sale software
for the inventory system as with the use of this software the company doesn't have to worry more
about inventory (Peavler, 2017). This system enables the manager to keep the track from
different locations as this system provides the stability in prices from one location to another
which is most effective of gathering information and this drive CRM practices and track sales in
the global market.
A3 One distribution channel
Sammy Sandwiches have to get involved in the distribution channel as they have to buy the
ingredient for their Venison steak and Bacon sandwich. The company can make the purchase
directly from the retailers or from the wholesalers. Apart from it, they can contact the farmers for
the purchase of ingredients in bulk. The ingredients that are used by the company in their new
products are produced by farmers belongs to different countries (Green & Lomanno, 2012).
Generally, these farmers sell their goods to the wholesalers in bulk and these wholesalers sell its
products to retailers because they buy the products in quantity. Over here, the company makes
Sammy Sandwiches can make use of this system effectively as this system can guide them to a
way to retain their customers by fulfilling their needs with the help of tracking.
A2- a) Information generated by the CRM software
The information that is generated with the help of this software can guide the restaurants to drive
CRM practices and track the sales in the global market. Sammy Sandwiches can make use of this
system as this software is affordable and easy to be used by the companies (Expert CRM
software, 2018). This system includes a time-saving feature which helps the company in
analyzing sales data and managing the inventory, staff, and customers which helps the company
in performing CRM practices. Sammy Sandwich can make use of the basic point of sale software
for the inventory system as with the use of this software the company doesn't have to worry more
about inventory (Peavler, 2017). This system enables the manager to keep the track from
different locations as this system provides the stability in prices from one location to another
which is most effective of gathering information and this drive CRM practices and track sales in
the global market.
A3 One distribution channel
Sammy Sandwiches have to get involved in the distribution channel as they have to buy the
ingredient for their Venison steak and Bacon sandwich. The company can make the purchase
directly from the retailers or from the wholesalers. Apart from it, they can contact the farmers for
the purchase of ingredients in bulk. The ingredients that are used by the company in their new
products are produced by farmers belongs to different countries (Green & Lomanno, 2012).
Generally, these farmers sell their goods to the wholesalers in bulk and these wholesalers sell its
products to retailers because they buy the products in quantity. Over here, the company makes
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Marketing 9
the purchase with the wholesalers and act as a retailer because they make use of these ingredients
in their product and provide final goods to the customers.
A3- a) Key considerations for entering a global market
The key consideration for entering into the global market consists of environmental factors, legal
obligations, and the competitive forces. Confirming that the research is conducted by the
company to under the needs and desires of the international customers is essential for the success
of global marketing success. It is the responsibility of the Sammy Sandwiches to conduct the
comprehensive research before launching the new products in the market. This is the fact that
these efforts of the company will lead to the success of the business, achievement of the goals,
rise in sales and revenue of the company along with the awareness in customers for the new
product across the world.
It is essential for the Sammy Sandwiches to analyze its competitors in the global market. The
customers are in control of their own so they can make choices for the product that they are
willing to buy in the market of New York so it is essential for the company to identify those
competitors who are offering some sort of products to the customers. At this point, it is important
for the Sammy Sandwiches to seek the opportunity of attracting the customers towards its new
products and retaining them for making them their loyal customers. Once the company will be
able to understand their competitors then they can make use of the strategies against them to gain
the attention of the customers.
The environment forces consist of political, legal and many other forces that can create an impact
on the working of the company (Kotler, 2015). While entering the market of New York it is
essential for the company to fulfill the legal obligation which will be possible once the company
the purchase with the wholesalers and act as a retailer because they make use of these ingredients
in their product and provide final goods to the customers.
A3- a) Key considerations for entering a global market
The key consideration for entering into the global market consists of environmental factors, legal
obligations, and the competitive forces. Confirming that the research is conducted by the
company to under the needs and desires of the international customers is essential for the success
of global marketing success. It is the responsibility of the Sammy Sandwiches to conduct the
comprehensive research before launching the new products in the market. This is the fact that
these efforts of the company will lead to the success of the business, achievement of the goals,
rise in sales and revenue of the company along with the awareness in customers for the new
product across the world.
It is essential for the Sammy Sandwiches to analyze its competitors in the global market. The
customers are in control of their own so they can make choices for the product that they are
willing to buy in the market of New York so it is essential for the company to identify those
competitors who are offering some sort of products to the customers. At this point, it is important
for the Sammy Sandwiches to seek the opportunity of attracting the customers towards its new
products and retaining them for making them their loyal customers. Once the company will be
able to understand their competitors then they can make use of the strategies against them to gain
the attention of the customers.
The environment forces consist of political, legal and many other forces that can create an impact
on the working of the company (Kotler, 2015). While entering the market of New York it is
essential for the company to fulfill the legal obligation which will be possible once the company
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Marketing 10
will understand all the guidelines of New York regulations. The international trade association
and the export government of New York provide the help to navigate import and export
procedures and regulations (NYC, 2018). NAFTA eliminated all the traffic and allowed
companies to perform the free trade in New York (Manzella, 2001).
A3- b) Global supply chain may affect the product or service
The global supply chain is the flow of goods and services from the producer to the end
consumer. The new products of the company might get affected due to the global supply chain.
Sammy Sandwich has to design an effective distribution way to make the product available to
their customers. Effective supply of the product is the only way through which the company can
achieve the success of the new products (Venison steak and Bacon sandwich) in the market. This
is the fact that there are numerous challenges that are associated with the global supply chain
such as delay in time of delivery, compliances related to trade and many others. These challenges
might create the impact on the distribution of the new product and make it available to the final
customer (Christopher, 2016). Moreover, to reduce the impact of global chain challenges the
company should adopt some strategies which include a strong relationship with the vendors or
suppliers of the company so that company can get delivery of product on time. This effective
relationship will help the company in expanding the business at numerous places on time which
leads to the customer’s satisfaction which is beneficial for the Sammy Sandwiches.
A4 Major pricing strategy
While launching the new product in the market the biggest question that arises is related to the
price of the product. Sammy sandwich will use make use of the value-based pricing strategy for
their new product. In the value-based pricing strategy, the pricing of the product is based on the
will understand all the guidelines of New York regulations. The international trade association
and the export government of New York provide the help to navigate import and export
procedures and regulations (NYC, 2018). NAFTA eliminated all the traffic and allowed
companies to perform the free trade in New York (Manzella, 2001).
A3- b) Global supply chain may affect the product or service
The global supply chain is the flow of goods and services from the producer to the end
consumer. The new products of the company might get affected due to the global supply chain.
Sammy Sandwich has to design an effective distribution way to make the product available to
their customers. Effective supply of the product is the only way through which the company can
achieve the success of the new products (Venison steak and Bacon sandwich) in the market. This
is the fact that there are numerous challenges that are associated with the global supply chain
such as delay in time of delivery, compliances related to trade and many others. These challenges
might create the impact on the distribution of the new product and make it available to the final
customer (Christopher, 2016). Moreover, to reduce the impact of global chain challenges the
company should adopt some strategies which include a strong relationship with the vendors or
suppliers of the company so that company can get delivery of product on time. This effective
relationship will help the company in expanding the business at numerous places on time which
leads to the customer’s satisfaction which is beneficial for the Sammy Sandwiches.
A4 Major pricing strategy
While launching the new product in the market the biggest question that arises is related to the
price of the product. Sammy sandwich will use make use of the value-based pricing strategy for
their new product. In the value-based pricing strategy, the pricing of the product is based on the

Marketing 11
value of the product in the eyes of the customers. Currently, the Sammy Sandwiches is becoming
popular in the market with approximately 25% of the market share. The new products Venison
steak and Bacon sandwiches were introduced in the market after considering the feedback of the
customer with the rise in demand. Value-based pricing is important for the company to increase
market share and strong customer base (Nagle, Hogan & Zale, 2016). In addition, this pricing
strategy is effective because the company can increase the price considering their customers
capacity to pay for the product.
A4- a) Costs associated
There are three types of cost that are mainly associated with the cost of the product that is fixed
cost, variable cost, and marginal cost. Sammy Sandwiches has to bear all these costs while
producing the Venison steak and Bacon sandwich. The fixed cost is the cost which remains the
same irrespective of change. Variable cost change with the change in the market situation and the
marginal cost is the cost incurred by the company when they product additional unit of their
products (Drury, 2013). Sammy Sandwiches will work in New York will get affected by
marginal cost and variable cost. The rise in the demand for the product will lead to increase in
marginal cost for the company and change in the market condition will affect the variable cost of
the company.
A4- b) Consumer acceptance of the price
The customers of the company will accept the value-based pricing strategy because the price of
the product will be set by the company after considering the value of the product in the eyes of
customers. The research will be conducted by the company before quoting the price in which
they take the feedback from the customer regarding the price of the product. In this, the
consumer will definitely like to pay a low price for the product as compared to the competitor’s
value of the product in the eyes of the customers. Currently, the Sammy Sandwiches is becoming
popular in the market with approximately 25% of the market share. The new products Venison
steak and Bacon sandwiches were introduced in the market after considering the feedback of the
customer with the rise in demand. Value-based pricing is important for the company to increase
market share and strong customer base (Nagle, Hogan & Zale, 2016). In addition, this pricing
strategy is effective because the company can increase the price considering their customers
capacity to pay for the product.
A4- a) Costs associated
There are three types of cost that are mainly associated with the cost of the product that is fixed
cost, variable cost, and marginal cost. Sammy Sandwiches has to bear all these costs while
producing the Venison steak and Bacon sandwich. The fixed cost is the cost which remains the
same irrespective of change. Variable cost change with the change in the market situation and the
marginal cost is the cost incurred by the company when they product additional unit of their
products (Drury, 2013). Sammy Sandwiches will work in New York will get affected by
marginal cost and variable cost. The rise in the demand for the product will lead to increase in
marginal cost for the company and change in the market condition will affect the variable cost of
the company.
A4- b) Consumer acceptance of the price
The customers of the company will accept the value-based pricing strategy because the price of
the product will be set by the company after considering the value of the product in the eyes of
customers. The research will be conducted by the company before quoting the price in which
they take the feedback from the customer regarding the price of the product. In this, the
consumer will definitely like to pay a low price for the product as compared to the competitor’s
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