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- QUESTION
this is the group project of New Product Develop. This is still about the hangover cure. This time I need you to write few things.
1. The full marketing proposition with all 8 P’s. You do not to need to write 8 of them. Only write Place(Conveince stores and liqure stores) and Positioning. You should find all information if my PPT notes. I will send it to you. Make sure you read it please!
2. Ideas for how this product could be introduced
3. Guidelines for evaluating the success of the new product
Call me if you need more details. I know last time because of the miscommunication you have to write the selling channels twice. To make sure you won't need to do that again, please make sure you understand everything before you start it!
| Subject | Business | Pages | 6 | Style | APA |
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Answer
New product development
Introduction/ brief overview
The launch of a new product is quite challenging given the numerous challenges that a company might encounter with the biggest challenge being the risk of the product being a failure and losing money for the company. To ensure a successful launch of a new product, the company must conduct adequate research about its market in order to win the hearts and minds of consumers while introducing the product. The success of the launch of the “hangover cure water enhancer” relies on the market embracing the product given that it is targeted at mass consumers and it is going against established traditions. Although the product is a new offering targeting a niche that is unexplored, there are significant risks that could cause the precut to fail without adequate market research. The most significant risk facing the product is the fact that the market might refuse to accept the effectiveness of the drug because the hangover cure promises significant results that seem surreal to most people. Therefore, the company has to conduct adequate market research in order to create an effective strategy for marketing the hangover cure successfully.
Market research and positioning
Market research is important to the positioning of a new product within the market as it allows a company to meet the unspoken needs of the target consumers by creating a marketing strategy that is aligned with the customer needs. The first step within market research that the company should take is to study the competition in order to determine what is working within the market. It is extremely important that the company assess what is working within its industry and uses the knowledge gleaned from this exercise to position its product appropriately. Studying the competition is crucial to each company regardless of the uniqueness of the product offering hence, it should be prioritized by the hangover cure company. The company should determine what the ideal customers would buy from its competitors and use this knowledge to appeal to such consumers. The hangover cure is meant to help consumers under the influence of alcohol sober up quickly by replacing electrolyte in the body, which allows the body to recover. The market research should be focused on companies that manufacture alcoholic beverages in order to determine what works for them within the industry. The hangover cure should deviate greatly from the methods proven to work within the industry, as this might be a recipe for failure.
Defining and targeting the ideal customer
The hangover cure has an ideal customer as someone who has consumed an alcoholic drink and is suffering from a hangover. This person is usually in need of the hangover cure to deal with the after effects of the alcohol intake and return to a state of balance. There is a small window of opportunity for reaching the ideal customer, as they may not stay in a hangover state for more than a few hours; the company must reach this customer before the effects of the alcohol have worn off. This challenge can be addressed effectively through appropriate positioning and location of retail outlets within easy reach of consumers.
Positioning the product appropriately
The position of the hangover cure should ensure that the ideal customers defined above could identify with the product based on its unique features. The company should ensure focus its product positioning strategy on differentiating the hangover cure by marketing it as a magical hangover cure. Given that, most manufacturers of alcoholic beverages sell alcohol based on the idea that the consumption of alcohol is the best way to celebrate a social event, the hangover cure should take a similar approach in its positioning efforts. The positioning of the product should play on the consumers need for a quick and painless way of curing the terrible headaches experienced by alcohol consumers after the consumption of alcohol. Many alcohol consumers usually wish that there were ways of curing the after effects of alcohol very early in the morning in order to avoid the temporary effects of alcohol. Some of the temporary side effects of alcohol consumption include the impaired judgment, lack of physical coordination and headaches. The target consumers are people who suffer these side effects after taking alcohol, as they would like to recover a normal functional state quickly in order to perform their daily activities.
After determining the inner motivations of the target market, the hangover cure company should capitalize on the strongest desires to create a product identity that the consumer would love. This is the core of a successful positioning strategy where the company wins the hearts of its consumers. The company should emulate the positioning principles where manufacturers of alcoholic beverages always sell the experience of taking alcohol and not the product itself. The hangover cure should be marketed and positioned as a ready cure for the terrible hangovers that most alcohol consumers face. The marketing campaign as the company positions its product should tell the story of a drug that cures all types of hangovers with the message that alcohol consumers should not worry about hangovers anymore. The positioning campaign should also focus on the pricing of the product, as many consumers might be reluctant to buy a hangover cure that is more expensive than the alcohol they consumed. The products positioning should focus on demonstrating the positive effects of taking the hangover cure including how users recover in order to return to their normal personality or state, while resuming their normal activities.
Selling through convenience stores
Selling the hangover cure through convenience stores allows the company to have access to the target customers for longer hours than other avenues. Convenience stores are usually open for long hours with some being open 24/7, which means that consumers can access such stores at any time. The location of convenience stores is also a crucial factor in selling the hangover cure through such stores. Most convenience stores are located in petrol stations, urban areas, or near railway stations. Some convenience stores are licensed to sell alcohol, which makes them similar to liquor stores. A disadvantage of selling through convenience stores is that the stores usually sell goods at prices higher than normal because the stores buy goods in smaller quantities, which usually costs more. However, the longer opening hours are a significant advantage, which surpasses the minor disadvantage of higher prices. The company could also take measures to ensure that the hangover cure is sold at a recommended price at all outlets.
Selling through liquor stores
Selling the hangover cure through liquor stores is an easy decision because of the fact that such stores cater to a large base of alcohol consumers, which is the company’s target market. By selling through liquor stores, the company would have a highly qualified pool of potential customers with a high likelihood of converting such prospects into loyal customers. The company should focus its positioning efforts on liquor stores as they have the highest potential for sales. Most of the customers who visit liquor stores would be willing to buy the hangover cure if they were properly motivated using the appropriate marketing strategies. Marketing the hangover cure at a liquor store could be effectively conducted by sales representatives who would explain the benefits of the product to potential customers. The sales representatives would also be available to answer customer questions about the product and help them decide to buy the product by overcoming their inner objections. This selling process above is similar to the way most alcoholic beverages are launched into the market where potential customers are given free samples, or motivated to purchase such products by sales representatives at the point of sale. The likelihood of this method succeeding is quite high.
Guidelines for evaluating the success of the new product
One of the key indicators of the success of the new product launch and positioning is the number of sales generated during the launch. Other elements of success include high levels of brand recognition as the public becomes familiar with the product. Lastly, the number of positive customer reviews by consumers who bought and used the hangover cure would be the best indicator of a successful launch and positioning campaign.
Conclusion
In conclusion, the hangover cure should be appropriately positioned within its target market in order to compete successfully with other products and capture a large share of this unexplored market niche. The company’s unique value proposition should be the fast cure to hangovers and the company should utilize the convenience stores and liquor stores as crucial selling locations.
References
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