Marketing Mix for Flavored Potato Chips
The rapid growth Flavored Potato Chip in the market has increased the market share of International Chip Vendors, Inc. the success of the product has undeniably brought the company to a high level of success. Today, the company needs to expand the business not only to enlarge the profit but also to answer the demand and satisfy the needs of the public. ICV is penetrating a larger market with wider customers and competitors. As the business grow, the company sees the need for a more strategic plan that would bring the product to its new target markets.
People buy a certain product for different reasons and these reasons are being influenced by either internal or external factors (Cahill, 1997). Most people eat potato for different reasons which should be taken into consideration in making the marketing plan for the product. Today, the innovations of many products in the market gave the public wide variety of goods to choose from. In this case, introducing the potato chips in the market would not be hard for the ICV because many companies have already developed that kind of product and the public had easily purchase them. In other words, the company just need to sell the brand because the product is already known in the market.
The target market of ICV for Flavored Potato Chips are the young adults in the ages 12 to 21. This cluster will be the main target for the product and the middle age adults in the ages 22 to 28 will be the second target market of the company. The product will be offered to these clusters that are belonging to the middle and upper classes in terms of income levels. However, the product will be sold not only to individuals but also to retailers who will purchase the goods in wholesale and sell them to their customers.
The rapid growth of Flavored Potato Chips in the market can be considered as a good sign for the ICV. Since many companies with the same products are constantly penetrating the market, ICV can enter with unique positioning and different treatment to promote the brand in the market. Since most of the potato chips in the market are being offered to children, ICV could penetrate the market by offering the product to the other clusters. Moreover, the increasing demand of the product can be an opportunity to expand the business more in the marketplace. The plan of distributing the product to other locations may give the company a chance to make the product mature in the market because the brand will be able to enter a wider market. In other words, the product will be exposed to large number of potential consumers which would make the company plan for development of more products and penetrate more markets in the future.
A product that has not yet established a name in the market should develop a strategic plan. This is what ICV needs for Flavored Potato Chips. The marketing mix will focused on the available resources of the company and goal of ICV for the product that will be offered to the wider consumers.
Flavored Potato Chips will come in six flavors; jalapeño, ranch, cheese, barbecue, salt and pepper, and no-salt. Aside from the traditional potato chips, the company develops a snack sized pretzels coated with sweet savory flavors that will definitely fit to the tastes of the target market. The product will be positioned as healthy snack which will be perfect for watching movie, going to picnic, traveling, and all the activities that are usually done by the young adults. Proper positioning of the product is important because this is the perception that the customers will create towards the brand (Ries & Trout, 2001).
The price of the product will vary depending on the size of the product that will be placed in the store shelves of a certain place. In other words, the company will develop a pricing strategy on case to case basis. The product will come in different flavors and in different sizes. It needs to be done in order to give the customers opportunity to choose the quantity of Flavored Potato Chips that they would like to buy and make it easy to sell in the market. Since the rapid growth of the product in the market has gained awareness not only from the consumers but also to the businesses, many retailers would definitely come to buy potato chips from the company and sell them to their target markets.
However, there are still some factors that the company needs to consider in setting the process of the product. First is the competition with the direct and direct and indirect competitors. The direct competitors are those companies that sell potato chips in the market. Some of them may have already developed their brands and able to reach the maturity stage while some are still striving to make their brands grow and getting the consumers’ recognition (Ruskin-Brown & Clarke, 2000). The indirect competitors, on the other hand, are those companies that sell snacks that are not made in potato. They are also considered as competitors because they may influence the behavior of the consumers in buying potato chips in the market. In this aspect, ICV needs to set the price that would conform to the prices of the existing products but still capable of gaining profit. The prices of the competitors would be determined to make the product reach its maturity stage easily. The target consumers should also be taken into consideration because the products are developed based on the demographic and psychographic aspects of these segments. ICV may set a price that may be affordable for the target market.
Basically, the product has already penetrated the Pennsylvania and Philadelphia markets. This could be a good start for the company to reach and penetrate other markets because of the sudden increase of the market share of ICV. The company may consider the partnership with an Amish Food Manufacturer in order to increase the number of the consumers. Apparently, the Pennsylvania Dutch will serve as the bridge between ICV and target market. With these additional products, ICV will be able to endorse the potato chips to the typical buyers of Pennsylvania Dutch treats. Moreover, opening more stores within the area of Philadelphia and Pennsylvania can also be taken into consideration because the rapid growth of the product could be a sign of an increasing demand of potato chips in the market.
In penetrating other markets such as New Jersey, Delaware, New York and Washington DC, ICV could develop a slow but guaranteed process to reach the target consumers on that area. With the use of pull strategy, the company will focus on the retailers and wholesalers first before constructing many stores on a certain location. The online marketing should be implemented in order to build strong relationship with the wholesalers and retailers. Through this technique, the company will be able to determine if a certain location will need an intense promotion or strategic implementation of marketing mix. Internet marketing will serve as the bridge between the company and the wholesalers or retailers of the product which would be easier for ICV because of online order processing and lesser manpower for distribution. Once the company has gained the anticipated brand awareness from the customers, ICV will be able to apply the push strategy to outwit the competitors in the marketplace.
Market penetration may be hard for a new product in the market like the Flavored Potato Chips. Although it has gained the recognition of the customers in Philadelphia and Pennsylvania, the company still needs to focus on the marketing tools that should be used for the target markets in other locations. In Philadelphia and Pennsylvania, ICV may release advertisements that would retain the loyalty of the customers. Aside from that, the company may also sponsor events that would create publicity and increase the number of purchaser of potato chips.
On the other hand, ICV may use other techniques in advertising the products in the locations where pull strategy is being applied. The company may use prominent endorsers that are in the same age of the target market to persuade them to purchase the brand. The attributes of potato chips should be highlighted in the advertisements to create an effective positioning and strong brand recognition to the target consumers of the product. ICV may release a 30-second commercial portraying the products and the endorsers as well. The advertisements may run on the times when most of the young adults are watching television which will be determined through the results of marketing research (Hiebing & Cooper, 2003). Moreover, ICV may also consider a partnership with organizations that conduct events for the youth to be able to give free sample of product to the target consumers. The company also needs to create an appealing website for the online shoppers. Through internet marketing, ICV may penetrate not only the mentioned locations but also other markets that would open the door for global market.
Cahill, D. J. (1997). How Consumers Pick a Hotel: Strategic Segmentation and Target Marketing. New York: Haworth Press
Hiebing, R G. & Cooper S. W. (2003) The successful marketing plan: a disciplined and comprehensive approach. New York: McGraw-Hill Professional
Ries A. & Trout, J. (2001). Positioning: the battle for your mind. New York: McGraw-Hill Professional
Ruskin-Brown, I. & Clarke, G. (2000). Marketing a Service for Profit: A Practical Guide to Key Service Marketing Concepts. Great Britain: Kogan Page Publishers