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Therefore, the objective of the Eke Way Bakery are increase the market share of young generation, the sales of company increase 20% in the coming years and breakthrough of sale volume in Chinese New Year. To achieve these objectives, development of marketing strategies is necessary. Based on the strengths and opportunities of Eke Way Barker, in this report, development of the product strategy and pricing strategy of different types of Eke Way products will be suggested.
After that, recommendation on how to coordinate the strategies and the action plan that let the strategies go smoothly will be provided. Last but not least, the evaluation and control are confirmed the marketing strategy Of Eke Way Bakery can achieve the objective with actual performance. 2. Product Strategy After conduct the analysis of Eke Way Bakery current situation, it should focus on “All-Time Favorite” and Lunar New Year Gift line to conduct this product strategy to help Eke Way Bakery achieving the goals.
Because this product is relatively weaker among Eke Way Bakery, so modification of these reduce lines to more fashionable and trendy is necessary. 1. 1 . Product packaging and new branding strategy As the image of Eke Way Bakery is quite old school, the teenagers are not willing to buy its product. Eke Way Bakery aims to get more teenagers market share and put more focus on teenager market and local adults. Therefore, it has to change the “All-Time Favorite” current package into a fashionable and trendy style. First of all, Eke Way Bakery can use new branding strategy to achieve the goal through innovative packaging.
Eke Way Bakery changes the package as the iris step of expend the teenagers’ market. The beautiful and interesting package is more eyes catching, so it could invite more local illustrators to design new packages. For example, it could invite Chocolate to design a new package, not only because her design representing the local culture, but also involved the young element. Besides, it could launch some more special edition and seasonal edition to increase the brand awareness. This innovative packing can give company an advantage over other competitors and boost sales.
These new package also can help to promote Eke Way Bakery new mage and support its new positioning. 1. 2. Product Line Extension Nowadays, people either teenagers or adults are more concern on health eating. Therefore, some more versions of “All-Time Favorite” could be added. Deepening its product mix could capture the health eating trend. We planned to introduce low fat and low sugar and bite size Chinese snacks. Traditionally, the Chinese snacks such as pineapple shortcake, grovels and Chinese sweets crispier and so on, are adding many unhealthy ingredients like sugar and tallow.
Thus, many people may refuse to purchase and eat these Chinese snacks because Of the fat. The new products will modify the ingredients consisted in the snacks into more healthy snacks. Eke Way will put less sugar and use other health oil to replace tallow. This low sugar and low fat modified products would contain 10 pieces per package. Hopefully these new product can help Eke Way Bakery to establish an innovative and fashionable image to the young customers. In addition, people also concern on the convenience of eating the snacks, a new idea about the size of snacks has come up.
Some Chinese snacks are relatively large in size, it cause some inconvenience to the customer and it is easily make the clothes dirty. A bite size can solve this problem. The size of cookies and egg rolls should be about coin size and finger size so that consumers can finish one mini pastry in one to two bites. Fragments of snacks fall out would be reduced and leave less mess to clean up. Based on this bite size, 20 pieces per package is recommended. Therefore, this new favors and package can attract the teenagers and health-oriented customers. 1. 3.
New Product line strategy-Lunar New Year Gift Set Apart from healthy eating, most of the customers are concerning the environment protection. They will put more focus on the quality of life, so they also prefer green lifestyle. Wastage of over packed moon cakes has raise up customers’ awareness and now they are seeking for a green new year. A new product line on the Lunar New Year products will be added. This new products will mainly focus on the freshness and the packages. A new method has been adopted. For the freshness, Eke Way Bakery will use fresh ingredients and without adding the artificial coloring, flavoring and preservative.
For the package, plastic bags will be replaced by reusable New Year candy boxes, which is ore environmentally friendly. It also enhances the Chinese New Year atmosphere. In terms of the new purchasing methods, customers can choose the different Chinese snacks they like, and then the shop assistance will help them to pack up the chosen snacks. Eke Way Bakery will launch this product one month before Lunar New Year to fifteen of January in Lunar. Also, Eke Way will offer more than 10 types of traditional new year snack, for instance, crispy triangle, sweet egg pastry, sesame biscuits and so on.
This type of buying methods can draw potential customers attentions during Lunar New Year so that it can compete with other competitors. Also, it fits for the modern people??s lifestyle. It is a flexible way for Eke Way Bakery to promote their product. It can help Eke Way Bakery to achieve the sale goal. 3. Pricing Strategy According to the previous report, the new marketing plan objectives are spending a year time enters to the young generation market and the sales increase to 20% in coming 12 months, especially the sale volume in Chinese New Year found a breakthrough.
Therefore, three pricing strategies in the following: 1. 4. New Product Pricing Strategies 1. 41. Market-penetration Pricing As mention in above, the of launch new product (Chinese New Year gift set) with new packing (candy box) and new buying method will be one month before the Chinese New Year until the 1 5th January Of Lunar New Year. In order to attract target customer buying in Chinese New year, and via to raise the target customers’ awareness that Eke Way is a good for gifts in anytime, especially in Chinese New Year.
The gift set is total 25 pieces of Chinese traditional cakes include eight different types traditional cakes choose by themselves. Based on the new product with new packing, “market-penetration pricing” tragedy will be adopted to set a price in Chinese New Year new product. “Market-penetration pricing’ strategy is set a low price alms to make new product entry the market quickly, because new product is less loyalty and awareness in the market. Therefore, it will planning on low price decision, around $1 28 of a gift set include total 25 of Chinese traditional cakes include eight different types and special packing.
The lower price is not meaning it is cheap and without quality. Instead, a lower price is good to attract target customers to purchase and easier to reach the larger market share. What is more, the “word of mouth” is the best result finding from the “market-penetration pricing” strategy, because setting lower price is good for new products introduce to the market and gain product awareness. 1. 5. Product Mix Pricing Strategies 1. 5. 1. Product Line Pricing Product line pricing means decide on the price steps to set between the products on line, it is based on the quality and size.
For example, the normal product -??total 8 pieces of pineapple short cake, which is in All Time Favorites line, is charged S 60, so total 10 pieces with low sugar formula should be charged $ 85. Because of the low fat and low sugar formula is healthy food, matched with target customers healthy lifestyle, so the price is higher than normal cakes. And the total 20 pieces of a bites size’ cakes should be charged $72. Although, it is smaller size, but selling 20 pieces in a package, so the price is higher than normal cakes. . 6. Price-Adjustment Strategies 1. 6. 1. Promotional Pricing Using promotional pricing strategy to offer discount from a normal price, it aims to promote the product. There are three reasons. Firstly, the promotional discount is an attractiveness to encourage target customer to purchase. It is a good chance to increase sale volume within a short period. Also, If Eke Way offers a discount to customers; Eke Way can take advantage to keep a good relationship with target customers. It is a mutual benefit.
There are three ways in promotional pricing strategies: 1. 6. 1. 1 . Special-Event Pricing Different festivals in Chinese like Lantern Festival, the Mid-Autumn Festival and Chinese New Year. Chinese traditional bakery or cake is a good choose for gift to others in different festivals. During the Chinese festivals, it would offer a discount to target customers, such as low fat and low sugar pineapple worth cake is charged around $ 85, it would get 5% discount from normal price (base on product line price, as mentioned in before).
We know that, there is a heavy demand for purchasing gift during special festivals, thus we offer a discount to target customer aims to attract them to purchase Eke Way products. 1. 6. 1. 2. Guy More Get More Discount In fact, consumers would always make a comparison between promotional discount and normal price. The promotional price would be based on the existing product and the product line price, as mentioned in before. For example consumer buying over $ 80 can enjoy 5% discount; over $160 enjoy 0% discount, the upper limitation is $ 480 enjoy 30% discount.
This discount is using for low fat and low sugar formula and a bites size’ cakes (product extension of All Time Favorites line) and promote in the summer and Charisma holiday, because many target customers would travel to meet their friends and relatives in the summer and Charisma holiday, therefore “Buy More Get More Discount” can attract them buy more for gifts. 1. 6. 1. 3. Credit Card Discount Nowadays, many people have credit cards, especially for young generation (target customer). In purchasers’ view, the advantage of credit card that the aid can prolong to next month so credit card is attractiveness to encourage to shopping.
In this situation, it would offer discount to purchaser when they purchase the products by credit card. For instance, if purchase over 5200, they can enjoy 10% credit card discount. It can corporate to Hang Seen Bank, due to many students of University are using credit card of Hang Seen Bank. They are the target customer of Eke Way. This discount is using for low fat and low sugar formula and a bites size’ (product extension of All Time Favorites line) and promote in each Friday during coming year. 1. 7. Product extension . . 1. Light Chinese Snack Packs Light Chinese Snack Packs is one of the new products based on the original product line, “All-Time Favorites”, it can help Eke Way expand young generation market and increase sale as none of any bakery has emphasized or promotion on bite size snacks. The package of these snack packs is paper bag with drawings of products so that consumers can see what is inside. It would also have a wire for customer to reseal unfinished snacks. It may attract health conscious youngster and busy office workers.
Promotional price of this new product extensions would be almost the same tit the All-time favorites’ products but a bit more than the original ones. For example, the original version of pineapple short cake is charged $ 60 and the new low sugar version should be charged $ 85. For big quantity purchase, Eke Way would price-offs to encourage customers to buy more as mentioned above. It may also corporate with credit cards such as Hang Sends Compass Visa, by offering 10% off discount for purchase over $200 to its owners in order to raise awareness from these credit card users. Citizens aged 18-40 use social networks and read newspaper.
Hence, the extension products should be promoted on Eke Wash’s Faceable fan page and free newspaper such as MAMMA and Headline Daily. This could cover most of the target market. This Light Chinese Snack Packs should be very convenient to consumers so it would be sell in the bakery’s branches, supermarkets and theme parks. As Eke Way has corporate with Disneyland and Ocean Park, selling snacks in theme park could be possible and it covers more consumers aged 18-29. 18. New product line 18. 1. Chinese New Year Gift Set On Your Choice This new product line would only available a month before to the fifth teen ay of Chinese New Year.
Packing of this gift set would be in a box divided into eight parts, one of the lucky numbers among Chinese. Consumers can choose seasonal goods such as grovels or Jinn died by their preferences. To prevent competitors adopt this new idea, product price must be stunning. Price Of this gift set would be $128. TO encourage consumers purchase more, the bigger quantity they buy, the lower unit price will be offered. For example, 5 boxes would gain a 75% percent discount. As Chinese New Year is so important in Chinese culture, it has to maximize sales.
To reach as much as customers, advertising of this new product would be on tradition media such as TV and newspapers. Since it is identified as shopping goods, it should be well differentiated. Selling it in the brand’s branches would be the best way to do so because nowhere else sell it but exclusively in Eke Way. The following action plan for coming year plans actions of the production, products’ launch date and the person in charge of each sections: Date Action/Event In charged by 1 December, 2013 Design a reusable Lunar New Year candy box Marketing Executive A Between 1 January,2013 and 14 February,2014
New product line: Produce a reusable Lunar New Year candy box with traditional food Marketing Executive A Promote the Lunar New Year candy box of on magazine, social media and internet Marketing Executive B January ,2013 Launch Lunar New Year candy box in the retail shop and the online store Marketing Executive C 1 March, 2014 Line extension: Design packing Of a traditional food with low fat and low sugar Marketing Executive A April, 2014 nine extension: Launch a traditional food with low fat and low sugar Marketing Executive B Middle April, 2014 Line extension: Promote the low fat and low sugar through advertisement on gained, social media and internet Marketing Executive C Late, 2014 Line extension: Design packing of a traditional food with a bite size cakes Middle May, 2014 Line extension: Launch the Bite size of traditional food Late May, 2014 Line extension: Promote the Bite size of traditional food on social media June, 2014 Special promotional of those new product extension, “Buy More Get More Discount”- buy over $ 80 enjoy 5% discount; over $160 enjoy 10% discount, the upper limitation is $ 480 enjoy 30% Marketing Executive C August, 2014 A 37th anniversary of Eke Way, special offer of all products within days December, 2014 Discount”- buy over S 80 enjoy 5% discount; over $160 enjoy 10% discount, Each Friday, 2014 Hang Seen Bank credit card discount promotion: purchase over 5200, enjoy 10% credit card discount Marketing Executive C In the control section, it is an important process to evaluate that whether the actual performance is on the track or not.
The result must meet our target objectives, which are increase young generation market share and increase the company’s sales to 20% in the coming year. In order to manage the sales condition, after launch those line extension, Bite size” and low fat and low sugar of traditional food at the end of March and April 2014, the sales report should be submitted to marketing manager weekly. According to the sales report, the manager should have an adjustment of the marking strategy. For instance, the “Bite size” are more popular; the marketing manager may decide to produce more. If sales volumes are not is not idea, the manger should make some adjustment, may be lower the price or makes more advertisement in social media.
When it launch the “Bite size??’ and low fat and low sugar of traditional food, it would set an observation site several large scale retail shops to observe the real consume situation. The marketing team can also interview the customer to get the comment of the new products thus do a small adjustment in the marketing strategy, pricing and promotion. In this report, we mentioned the product and pricing strategy, coordination of strategies, action plan and control of Eke Way Bakery.