A marketing strategy contains a set of choices that an organization uses to create and sustain a competitive advantage in the market. Product positioning and pricing are integral tools of a successful marketing strategy. The positioning and pricing part of Super Coffee’s marketing strategy will determine where in the market the business will position its products, and how much will be charged for the products after identifying the market positioning. Market positioning refers to how a business wants its customers to perceive its services or products relative to competitors’ similar products and services (Nagle & Muller, 2018). Positioning and pricing ought to align by pricing products correctly for their positioning in the market. The most appropriate choice for Super Coffee is one that will help it attain its sales and profit goals, boost its reputation, and satisfy the target market.
This will be the best pricing strategy for Super Coffee in pricing its products. The company will select one of the following actions based on its competitors’ prices. This will include pricing below their competitors, pricing above the competitors, or pricing in line with the competitors (Nagle & Muller, 2018). Pricing in line with competitors is also known as the going rate pricing which would be the best strategy for the company. This is because the company offers quality products and therefore customers will go for their products and no those of the competitors.
When it comes to positioning, marketers have a higher chance of achieving a strong position in the market after developing a strategy upon which to build a brand. It is crucial for Supper Coffee to understand the target demographics, the strength of competing products, and its strengths, weaknesses, opportunities, and threats. A thorough understanding of the market landscape will enable it to decide the most appropriate positioning strategy for its products (Iyer et al, 2019). Super Coffee faces high competition from other beverage providers. Hence, they will have to competitively position themselves ahead of their competitors by differentiating their products. This will be achieved through the continued production of healthy and energetic products using natural ingredients. The company will therefore retain its customer base which constitutes mostly of healthy hustlers who share the company’s mentality of a better future.
Super Coffee should capitalize on its strengths and opportunities to increase its customer base and increase profits. This will include continuing to offer quality and healthy products to its customers using natural ingredients. This will ensure that its customers are satisfied and will not shift to competing products. The company should also invest in technological advancements, for instance, the introduction of online services where customers can order products online. The company should also target new markets besides college students. This will result in an increased customer base hence increased profits.
The company should also address the weaknesses and threats that threaten its continuity. As mentioned earlier, targeting new markets will increase the company’s customer base hence its profits. Higher profits will however be realized if the company prices its products appropriately considering Super Coffee charges low prices for its products. Competition-based pricing discussed above will help the company to price its products appropriately. Additionally, the company should address the shortage of staff to avoid overworking the current staff hence lowering their productivity (Iyer et al, 2019). They should also adjust well so as to fit in with the new collegiate lifestyles. The company should also consider offering take-away services to students because of the covid-19 setback.
Positioning in Advertisements
Advertisements are typically the first place for a business to position itself. The product or service being offered determines who is being targeted and what consumer needs are being met. Super Coffee should use social media, television, mobile, local advertising, etc. to market its products. Super Coffee should invest in advertising its business to attract more customers. Since the company’s target market is campus students it could use a group of college students enjoying one of its products with smiles on their faces showing satisfaction. Moreover, the advert should include that the company’s products are made using natural ingredients to attract even more customers since people want to stay healthy.
Positioning Through Price
It is important to note that there is a huge amount of research on the psychology of pricing in marketing. There is a need to place a price on a product as this tells consumers more about the item. For example, many people associate high quality with a higher price while a lower price is associated with low quality (Iyer et al, 2019). Since Super Coffee’s products are of high quality, the company should price them appropriately to differentiate the products from their competitors’ products.
Tactical Marketing Plan
This marketing plan is informed by the weaknesses and strengths of the facility and the opportunities and threats analyzed in the milestone 1 assignment. The plan will focus on the company’s marketing strategy (Morgan, et al., 2019).
Market Target. Super Coffee psychographic segmentation consists of Healthy Hustlers with a shared mentality on a better future. Healthy Hustlers are always headed to better and compete with their former selves. Super Coffee target three classes; the College Carrie of 18 and 25 years, Athi-Lifer Abe of 23 and 30 years, and Multitasking Mid-Career Mona of 31 to 50 years. For the competition purpose, Super Coffee majorly focuses on College Carrie of age 18 to 25 years. The majority are college students, both male and female with unstable income.
Marketing Mix. Super Coffee should use the following marketing mix to realize its desired results of increasing and bettering its services: product, price, place (location), and promotion.
Product. Super Coffee products are made of organic Colombian coffee with grass-fed milk protein, MCT oil, caffeine, no-sugar natural sweetener, and L-Theanine. Its products include Ready to Drink, creamer, grounds, bundles, and pods.
Place. Super Coffee is headquartered in New York, US. Super Coffee has established a foothold in C-stores, clubs, online and off-campus locations.
Price. Super Coffee charges low prices despite the quality and the various ingredients used in its products. A key price factor for Super Coffee is the influence of its target market on the prices since it constitutes independent individuals with unstable income.
Metrics for Measuring the Plan’s Effectiveness
Return on Investment. This one of the most common metrics used to measure the success of a marketing campaign. This method however can be a challenge since determining the amount of profit generated by a marketing campaign can be subjective.
Social Media Metrics. Social media marketing involves using social sites like Instagram, Facebook, Twitter to market products and services (Kingsnorth, 2019). Social media advertising sites will provide the company with its own metrics. For example, the number of ad views on Instagram will help to determine how many people have seen the ad.
Revenue Tracking. Tracking revenue will help the business determine whether its sales are increasing or not. Increasing revenue shows that the business is growing, while stagnation of revenue indicates that the business is not growing.
Customer lifetime value and churn rate. The business should also keep a record of its customers. This will help the company to know if its customer base is increasing or decreasing or if it is stagnated (Saura, 2020). A decrease in customers could be an indication that customers are switching to competing products.
Super Coffee Marketing Calendar
Continue frequent buyer program,
Direct mailing of colleges
Direct mailing consumers
Start frequent buyer program
Sponsorship of community little league
Social Media advertising
Iyer, P., Davari, A., Zolfagharian, M., & Paswan, A. (2019). Market orientation, positioning strategy and brand performance. Industrial Marketing Management, 81, 16-29.
Kingsnorth, S. (2019). Digital marketing strategy: an integrated approach to online marketing. Kogan Page Publishers.
Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), 4-29.
Nagle, T. T., & Muller, G. (2018). The strategy and tactics of pricing. Routledge.
Saura, J. R. (2020). Using Data Sciences in Digital Marketing: Framework, methods, and performance metrics. Journal of Innovation & Knowledge.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more