The Marketing Mix “4Ps” theory

The Marketing Mix “4Ps” theory was born in United States, with the proposing of marketing mix theory (Christian G., 1997). In 1953, Neil Borden created marketing mix which means that the market demanding is more or less largely replying on the marketing variables or selling factor. In order to find some market impacts, the enterprises must effective combining these elements to meet market demand and to maximize profits. McCarthy in 1960 in summarized marketing mix elements as four categories: Product, Price, Place and Promotion (J. Cha., 2009). In 1967, Philip Kotler further confirmed (Wander Jager., 2007).that the most important elements in marketing mix 4Ps is product, which means that the business should focus on the development of features so that products has the unique selling point. Price means that the business should accord to different market positioning to develop the pricing strategies. Place requires the company does not directly selling to consumers but rather focus on training of dealers and the establishment of sales networks. And the enterprises can communicate with consumers through distributors. Promotion requires that company to concentrate on changing the distribute behaviors to encourage consumers and using short-term, such as discount, to promote the growth of consumption. Therefore, the company should concentrate on the Product, Price, Promotion and Place for its new product.

Position the new product

The product Description

The Tilburgers is mainly engaged in selling the range of ready-to-eat foods, which are fully contained of natural substitutes as well as exceptional taste. The new products of Tilburgers – a breakfast “shake” designed for the breakfast, which was suit for the consumers who skip the breakfast, because it is simple to take along, ready-to-drink and full of nutrition- which was made from soy bean, dairy products and rice, and containing fibre, vitamins, calcium and carbohydrates, meanwhile, the packaging allows the drink to last up to 12 hours once opened and unrefrigerated.

Product type

The products are typically belongs to consumer products, because the products are purchased for the breakfast needs. Although the selling price is difficulty to decided, the existed producing capacity has the superiority to limit the cost within $ 0.80 delivered (to stores) and with the standard size is 500 ml. Chief Executive Officer (CEO) of Tilburgers has decided to develop the low-scale product in this area. Thus, for customers, the product is economical and affordable. In addition, due to it can sill keep fresh when it is opened within 12 hours, consumers still can eat even after opened for 12 hours. Therefore, buyers only need minimal purchasing effort.

The selling point and characteristics

Bonfoh B., et. al.,(2003) defined selling point as that it is the best connecting point between the interests that the products brought to consumers and consumer’s demands for the product. Selling point is not only the direct way to convey the product message to consumers and is the part but also the part that can easily leave memories to consumers. Consumers will purchase the products again if the selling point can let consumers remember the product brand directly, clearly and quickly. Meanwhile, a good selling point can lead to rapidly growth of the sales. Many famous well-known brands get success as a result of excellent selling point of many. The author will introduce the selling point of Tilburgers’ new products.

The characteristics and competitions of the new product: First of all, Tilburgers attached great importance to the nutritional of their products. The new product – “shake” was made from soy bean, dairy products and rice, and containing fibre, vitamins, calcium and carbohydrates. Therefore, comparing to other products, it has the feature of with high nutritional. In addition, its patented packaging allows the drink to last up to 12 hours once opened and unrefrigerated. Therefore, the product has the advantages of high nutrition, easy to take and drink and performance for fresh.

Demands of consumers

The target consumers of breakfast products are the people who are so busy that skip breakfast and so mainly consume in weekdays. Therefore, portable packaged foods are needed for them. The new products of the Tilburgers, which has the consistency of a thick milk shake that are convenient and portable and can ready-to-drink, provides an alternative for people who skip home breakfasts for a variety of reasons. In addition, Baby boomers who aged in their forties and fifties tend to be the major buyers of Tilburgers products, as a result of that those people pay more attention to nutrition and health, which are willing choose nutritional products. Finally, working people and students are more prefer to the combination of both nutrition taste. The products –Lo-Krim ® and Lo-Sweet ® are both nutritional and good tasting. In a word, the selling point of the products is the high nutrition, easy to take and ready to drink.

Branding

Tilburgers is a very famous brand in the West Australian which has specialized in health foods since 1940. Since the 90s, the company has accumulated much expertise and a fine reputation among consumers and retailers as producers of quality health food products. The company is engaged to enhance the influence and competitiveness of the brands in both international and domestic. Nowadays, Tilburgers’ currently distributes to 90% of the health food stores in Perth. In the past year, two leading brands were withdrawn from major health foods stores when they started to appear in the health foods section of some supermarkets, which shows the large brand effective and the competitive in the domestic market. At present the company’s product has won a good international reputation.

Packaging

The new product of Tilburgers is 500 ml packaged, using the advanced packaging fresh material, which allows the product to last up to 12 hours once opened and unrefrigerated. Therefore, it’s more welcomed by consumers who are too busy to have the breakfast.

MARKETING MIX (4Ps) STRATEGIES

Product Design & Development

Product Presentation: G. Dhruv (2007) believed that product presentation is important to reflect the products’ positioning. For easily and impressive remember the new product, a slogan “shake breakfast, nutrition cares everyday!” meanwhile, for directly remember meaning of the slogan, a logo is needed.

In order to highlight the key feature of the product -health care, LOGO of the product was designed with three parts: the whole picture was a structured with a cycle; the products’ brand name-“shake” was design fonts. The middle part is a hand, means that “care & love”. The central part of the logo is the words of Health with the round ring design fonts of the letters. The whole LOGO means that shake can bring healthier and carefulness to customers.

Figure1. The logo of the shake

Product Management: Product Management is let one of the part of the business, which may be product, product line, service, brand, segment as a virtual company to manage. The goal of Product Management is to achieve long-term customer satisfaction and competitive advantage. Product management may include-not exactly-project management, new product development or sales supporting. Product Management is a multi-dimensional product management process that is leading corporate image and the overall cultural. In order to achieve better product management in 1-2 years, Tiburgers should concentrate on the product image and technical harmonization, by the development, design, product design, as the focus will shake the characteristics of the specific show convert the message of the products and corporate culture to consumers consistent. As the product management is based on consumers’ needs, planned research the tracking of products in the market and feedback of information for consumers is an effective way for shake to get continuous improvement and competitiveness. Therefore, a questionnaire for vendors and consumers is necessary to investigate products in the market. The preparation of pre-marking for shake: quantitative and qualitative research for the demands for pre-market; product concept development and testing; products design in both inside and outside, such as packaging, formulation, liquid capacity and the internal structure of the design; market positioning and communication strategy; advertising creative and implementation; the production of various publicity materials; market research and development of the proposal; promotions planning and execution; sales team formation.

Place Strategy

The nature of Retailing channel is that the process of product’s distribution from the factory to the consumers’ market (Hans M., 1999). The distribution of products can through several channels. At fist, through setting up counters in supermarkets, such as by Carrefour, Wal-Mart and Metro. Products are distributed to the supermarket, by which communicate with consumers. Consumers who are working and living near the supermarket will become the target consumers. Then, the products can still retailing by small, specialist health foods stores, such as Betta Health Foods, the Good Life shops and a series of independent retailers. The products are provided by the producers and turn to the consumers who are always bulk purchases this kind of products will become the target consumer. Still, online retailing: the online marketing is divided into two types: entity store and the store non-entity in the online business (Park J., et. al., 2005). Among them, the non-entity store do not need set additional stores, which is a convenient marketing channel (Lee S. G., et. al., 2008). Consumers can order goods online which will mailed directly from the manufacturer then by the responsible department of the company. This sales channel is adapted for consumers who usually shopping online.

Online

Selling

Specialty

Stores

Retailer

Producer

Figure2 The distribution channels of “shake”

Promotion Plan

Promotion, as the last link of marketing, is aimed at promoting the communication with consumers to expanse purchasing rate and repeat purchasing and shorting the purchase decision time of consumers in order to achieve sales (Petrovic D. R., 1999).

Trade Promotion: This strategy is aimed at retailers. This is only appropriate if the company markets the product to retailers or other resellers. Trade promotion is including quantitative discounts and quota awards. Quantitative discount means that retailers can enjoy the discount according to the purchase quantity. For example, when dealers purchase 100 boxes of the products will enjoy a discount of 0.9; If it purchase 100-200 boxes will enjoy a discount of 0.8 ; If it purchases 200 box or more, will enjoy a discount of 0.7. Distributors who purchase a number of products will enjoy accordingly discount. Meanwhile, the discount can change with the season, strength of dealers and market changes. Quota of awards is that when the dealer achieved setted selling goals, they can receive a cash award and a certain percentage of return. The incentives can improve the motivation of dealers. Although the “shake” is a low-profits product, the incentive can help to enlarge the marking.

Consumer Promotion: This strategy is aimed at the consumer. Consumer Sales Promotion including the marketing shopping guide, tasting, discounts, and cultural marketing. Shopping guide voiced promotion method. The retailers achieve marketing goals by initiatively introduce customers. The advantage of the shopping-guide promotion is that guider can detailed introduction the message of products to the customer to help customers selecting the right product and answering queries that consumers raised. Promotion of this approach is the most direct means of communication with customers, thus shopping guide on sales promotion techniques have greatly affected. This kind of promotion is mainly in supermarkets and other stores.

Taste is the most effective method for food promoting, by which consumers can taste the product for free, which can increase the awareness of purchasing the products. Tasting promotions can transmit the direct taste information to consumers that customers will purchase the products without any initial concerns and psychological barriers. Usually, the tasting place is near to product sales so that customers can immediately purchase after taste. The taste activities are typically held in the sales peak such as the holiday and weekend.

Discount promotion: shake can not promote by separately discount, which will easily leading to the feeling that the product has the quality problems or used outdated materials. The Indirect discount is a very good promotional method for foods products, such as bundle sales and package sale which is now a popular promotion method in the restaurant industry, which means that promoting the popular accepted products with the new product portfolio. On the other hand, the Coupon and membership card is another form of indirect marketing. Customers who have purchased a certain amount of the products of the brand will get a free coupons or membership cards to enjoy the discount activities.

Cultural marketing means that the combinations of product, such as family packages, couples packages, student packages, according to different taste and nutrition. Such promotions can be publicity and promotion on network television channels or by distributing the brochure.

Pricing Strategy

Pricing is affected by internal and external factors, the internal factors including the cost of material, workers’ salaries and so on; and the external factors including Supply-demand relationship and competition. As the products has no competitor, and the usually breakfast is from $1.00 to $3.00; meanwhile, there are other consumptions, such as Office & Administrative Expenses and Marketing Director’s Salary, the retailing price should consider those costs. The new product at a unit cost of $ 0.80 delivered. Therefore, the retailing prices can $ 1.7 at a unit for retails as the company should provide sufficient profits for retails and the retailing price should no more than $2.5 to consumers for most of the consumers can afford.