I am going to compile all of the topics that we have been discussing and deliberating on all this term. Moreover, I am going discuss and evaluates the Ajax Foods scenario and in module One content by Putting myself into the shoes of the CEO for Ajax Foods. What is the most important question you need to have answered before you spend thousands of dollars on the launch of a new product? In an arena that is as competitive as the food industry today, most companies are always looking for ways to add new revenue streams and limit product attrition.
Therefore, launching a new product can assist a company in gaining access to new markets that might have previously been unapproachable. Therefore, for me, as the CEO of Ajax foods, before adding a new product line there are several factors that need to be considered: ; Profit Potential One of the most important factors of any new product launch is the potential to impact bottom-line revenue. In most cases, the product itself may not create a large increase in revenue but may open doors to new revenue possibilities. Therefore, a product that open new doors and creates significant ongoing revenue Is a winner very time.
So! As a CEO of Ajax foods, therefore, a common sense question to ask would be, what is the potential revenue this new product will create? ; Market size When It comes to market size, one can have the best product In the World but If the potential customer base Is not large enough, sales target cannot be reached. Therefore, as a CEO of Ajax foods, before launching this new product and Investing thousands of dollars Into this product, one would ask some basics questions such as: who will buy this product? Can sell this product to my customer base? Where can I locate this type of customer? What Is the market potential?
What does my prospect want from this product? Why should they buy from me? When do I begin launching this product? As a CEO, I believe that It’s very Important to think through the whole process In order to make sure all the bases are covered and ensure that there Is a market and proven need before offering any new product. ; Competitive environment It’s always Important to know what the competitive climate Is around any new business opportunity. Moreover, It’s Important to do your homework, who are the major competitors? What are the pricing strategies? How much market do they have In one area?
So! It’s really Important to go to any new product launch with a very clear Idea of what your local, regional and national competitors are doing and how you are going to meet the competitive challenges. ; Product Implementation The last Important factor to consider before launching a new product Is product Implementation. As a CEO, one of the product Implementation to ask Is how hard Is this product to make or produce? What are the requirements for supporting the Implementation? What steps would you take to assess this scenario? How would the facts be gathered and displayed In a research report?
As a CEO of Ajax foods, I would first look at secondary data because there Is much Information out there about the new product line I am trying to launch. The process of conducting research and product. As a CEO of Ajax Foods, before I started conducting a researching, it’s important make a plan by considering a few aspects of the information you want to gather. By doing the following: Ask specific questions that must be answered, considering the type of information I want to use, determining where I can find that information and lastly, evaluating how much information I need.
When is primary tat useful in this analysis? When is secondary data useful? The primary data is going to be useful in this analysis by providing the validity of how this product will fair in the market. Since Ajax foods is already a establish company with many stores, I believed that it would be great display a very limited quantities of this new product in all of the Ajax stores and let customers sample the products and feel out a questionnaire’ about how the feel about this new product and that’s how I would use primary data in this analysis.
For secondary data, I believed that since this type of tat is already establish and an existing data, I believed that the only way that this type of data can be use is a reference or by comparing this new product to some that might been similar. Moreover, this data would be useful by looking at how much of the new product is being sold and at what Ajax foods store. I believed that’s where this data will be used. Develop several specific problem statements that you will address throughout the course. For example: Will the new product be successful? How should the new product be marketed?
As a CEO of Ajax foods, I believed that the ewe product can be successful as far as I create a sales plan. First after I had establish and define the market for my new product and have a deeper understanding of exactly who are buying my product. I would start small and create a timeline for taking this product to the national distribution. Moreover, I would do the following: create sales goals, sale activities, target accounts and lastly the timeline or putting dates to all of the above elements so that I can define my steps within a realistic timeline.
For my SOOT analysis, I look at already establish corporations and rye to base my analysis on how the food industry in general is operating. I look at some of the major powerhouse in the Food industry such as Wall-Mart, Tyson Inc. And KEF and since each of these corporation market chickens in one form or another. Since Chicken is already such a stable foods, I think that it will take a tone of marketing couple with great advertisement in order to penetrate into this already saturated market.
Strengths Strong market position Broad and diversified brand portfolio Strong consumer based Weaknesses Chicken prices might have a major influence over firm’s profits ; pricing Untrustworthy suppliers Negative publicity Unhealthy food menu Lack of strong marketing efforts Opportunities Extend supplier range Product Increase product offerings Expansion of retail operations Increasing demand for healthier food Home meal delivery Introducing new products to its broad brand range Threats Supply disruptions Trademark infringements Increased competition from local and national powerhouses such as Wall-Mart.
Saturated Chicken markets in the developed economies ; Supply disruptions Trend towards healthy eating For most part, test marketing is usually the final step before centralization. The objective of this marketing phase is to test all the variables in the marketing plan, including different elements and characteristics of the product. This stage represents the launching of the total marketing program, albeit on a limited basis. Test market usually is done to address three key questions. ; Is the overall workability of the marketing plan realized as planned? Do alternative allocations of the budget need to be evaluated? ; Can I determine whether users are being inspired to switch from their previous brands to the new one, and whether repeat purchases are taking place? In the end, the test market should include an estimate of sales, market share, and financial performance over the life of the product. Test marketing is distinguished by the fact that the test cities represent the national market. The consumer must make the decision themselves, must pay their own money, and the test product must compete with the existing products in the actual marketing environment.
For these and other reasons, a market test is meant to serve as an accurate simulation of the national market and serves as a method for reducing risk. It should enhance the new product’s probability of success and allow for final adjustment in the marketing mix before the product is introduced on a large scale. There are two to take in account when conducting test market, which are risks and variables. ; Risks Test marketing is not without inherent risks. First, there are substantial costs in buying the necessary productive capacity needed to manufacture the product or locating manufacturers willing to make limited runs.
There are also promotional costs, particularly advertising and personal selling. Although not always easy to identify, there are indirect costs as well. For example, the money used to test market loud be used for other activities. The risk of losing consumer goodwill through the testing of an inferior product is also very real. Finally, engaging in a test-market might allow competitors to become aware of the new product and quickly copy it. Therefore, that are some of the risks involved in test marketing a product. Variables This the process of selecting test market region or city and this usually should reflect the norms for the new product in such areas as advertising, competition, distribution system, and product usage. Another point here is the number of test cities. This is based on the number of variations considered, for example, vary price, package or promotion, representatives and cost. The next point here regarding variation is to be adequate to represent the total market. So! Even though all the test results are in, adjustments in the product are still made.
Additional testing may be required. Here are my three ways on how I will test market. Pseudo Sale Methods Speculative Sale For me, since I am introducing a new line of frozen chicken potpie product, I would select a few stores among the many Ajax foods Stores and go to the customers, give hem the full pitch on my new frozen chicken potpie product, in a version that’s close to ultimate marketing, answer questions, negotiate prices, and lead up to the closing question, “Would you buy it? ” This is one way I would test market my new fresh and frozen chicken potpie. 2.
Controlled Sales Methods Direct Selling In this case, I am going to display a few frozen chicken potpie and let my customers try them out. I will also try to couple this new chicken potpie with another item in the same product line so that whenever, a customer buy that product, he or she will get a discount on the new frozen chicken potpie. And with this direct selling, I am also going to used discount items such coupons and buy one get another one half price off ; Minarets In this scenario, I am going to select certain Ajax Foods stores and used them as a insanity or marketing to display my chicken potpie.
This will help me in understanding on how this product will be received by customers once it’s rolled out in full scale. 3. Full Sale Methods With the full sale methods, I am going to say pick few cities to sell my frozen chicken potpie into, and test all the variables including competition, trade, ad and etc. This is ongoing to allowed me to gain the best sales forecast and the best evaluation of alternative marketing strategies. The above mentioned are my ways and strategies that I will employed when trying to test market my new frozen chicken potpie.
The most crucial and critical questions I would ask are going to be driven towards knowing the preferences of the consumers based. For AJAX Foods, I think that knowing your demographics is one of the most important thing to put into consideration when launching a new product. These will include trying to gauge the income base, sex, gender and ethnicity. Therefore, the question on my survey will be: About how much do you usually spend weekly or biweekly on your poultry products overall? Rough estimate: Whenever you are in a hurry, what kind of ready-to-go meal do you usually purchase from hot deli section of grocery store?
Chicken _ Beef _ Pork_ turkey none Personally, I decided to choose the above two questions because the data that is gain from these questions can be measurable and it will give the company at least an overall consumer preferences and what consumers are willing to spend on this product. I think the survey should be at least 10 questions. Making a survey a short do save consumer time and that will make them answer survey questions at least. There should be incentives rewarded to customers that take time to answer survey questions.
Now that we have gather all the information on our AJAX chicken potpie achieved the results of success or will be a failure. To me, there are three ways that we can find out if our new AJAX chicken potpie product will succeed or fail. The three ways that I will used to test market the new product are Beta-testing, Regional launch and direct target launch. For the first test marketing way which is Beta-testing, I will end choose a select group of loyal customers and send them coupons to come to some selected AJAX stores to get this new AJAX chicken potpie before it’s generally release into the marketplace.
In return, the customers will help identify any problems in the product and provide feedback on the product’s performance. After we at AJAX have collect all the feedbacks, from this select group of groups. We will analyze the feedback and any necessary changes based upon the feedback will be incorporated into the product before its launch. For me, this test marketing way can really tell me s AJAX CEO and my teams the trajectory of our new product and if it’s going to succeed or fail and that’s one way to test market the product.
The second test marketing way I will used to test the potential of success or failure is regional launch. In the case of regional launch, this approach is usually used in test marketing by limiting the release of new product or marketing campaign to a specific geographical region or regions for testing. A small regional launch can saves money let AJAX Foods determine the impact of different factors affecting the launch, such as advertisement, ales training and incentives, use of specific retailers and lines of distribution.
In undertaking a regional launch, AJAX Foods will try to find a region that matches our full target market as much as possible. In my case, an example of a regional launch for AJAX Foods maybe Norfolk, Virginia where we have figure out our target market. This region is heavily populated by military and college students which we know are mostly on the move and with our new chicken potpie, this can be a great market. For me, doing a regional launch will definitely tell us (AJAX Foods) the potential trajectory that out new product is going to head.
And for me, I think this is another great way that’s going to tell us the success or failures of our new product. The way of test marketing that we (AJAX Foods) is going to use is direct target launch. For me, this test marketing approach is going to minimize the information that our competitors can find out about the campaign such as the size and scope. Direct marketing allows us (AJAX Foods) to test a bunch of different variables, including the type of offer, different creative approaches, different target audiences, the method of response and the frequency and timing of the marketing activities.
AJAX Foods can carry out a test campaign based upon a sample the target market, a regional territory, or a particular part of the target market, such as specific age group. AJAX Foods can undertake the test marketing campaign using the good old-fashion direct mailing approach as well as internet and social media approaches. For AJAX Foods, we will send out sample coupons our new chicken potpie to our loyal customers. These sample coupon will have a convenient bar code on the back for us to track the information. Personally, this is how I will test market these new AJAX chicken potpie before these products are Lully launched into the market.
I believed that if all of the above are done, we will be able to tell how our new chicken potpie is going to fair upon mass launch. In most cases, hot deli packaging usually varied from store to store. However, in the case of AJAX Foods, there are many factors that would need to be considered when designing cost efficient, easy to use, and does a good Job of holding in the heat for the chicken potpie that a customer might plans to eat right away. For AJAX Foods chicken potpie packaging, I would use Flex transparent flexible hot food stand-up pouch which provides ;
Innovative ventilation system that keeps food flavor and crispy ; Grease resistant, high barrier paper provides stain protection ; The packaging should provide clear anti-fog on the package which maximizes visibility and entice customers’ impulse buying. As far as graphic designs on the packaging is concern, I think bright colors like yellow and bright or orange would be applicable to use because they are eye catchers. The package should have writing on labels that include warning “HOT” and have all of the other good stuffs that come with labeling. That’s how I would design my package.
When it comes to pricing strategy, I believed that a business can use a variety of pricing strategies when selling a product or service. The Price can be set to maximize profitability for each unit sold or from the market overall. It can be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. Businesses may benefit from lowering or raising prices, depending on the needs and behaviors of customers and clients in the particular market. Finding the right pricing strategy is an important element in running a successful business.