Assignment 2 Lasa 1 Product Price Using The Waters Bottling

Assignment 2 Lasa 1 Product Priceusing Thewaters Bottling Companyi

Assignment 2: LASA 1: Product & Price Using the Waters Bottling Company in Module 1 , continue to build the Marketing Plan Sections for the product you have selected/ invented/ created. Complete the following in MS Word: Be concise but complete in your analysis of each plan element. Your employer wants to know you have left nothing out in your analysis. This assignment represents Section 3 of the Marketing Plan. Use the guide to identify the sections of the Marketing Plan and the marketing elements contained therein.

This assignment will focus on Section 3– Product & Price ( Module 3 ). Section 3 – Product & Price (Module 3 LASA 1) The Product Product Levels: Core, Actual, & Augmented (Packaging) Product Life Cycle BCG Model Services Marketing Price Determination & Pricing Strategies Supply & Demand Competition Objectives and Strategies You will create a complete Marketing Plan by the end of the course. You will write the third section of the Marketing Plan for this assignment. Use the Marketing Plan guide to identify the sections of the Marketing Plan and the marketing elements contained therein. This assignment will focus on Section 3 – The Product & Pricing ( Module 3 ).

Relate all responses using the WBC scenario and the product you have selected to market in Module 1 . Create a 4- to 6-page Word document for your Marketing Plan Section. Apply a standard business writing style using the Market Planning Guide sections as your (headers/ sub heads/ bullets) to your work. Be sure to cite your work in the APA format. Use the following file-naming convention: LastnameFirstInitial_M3_A2.doc .

For example, if your name is John Smith, your document will be named SmithJ_M3_A2.doc. Submit your Word document to the M3: Assignment 2 LASA 1 Dropbox by Wednesday, May 25, 2016 .

Paper For Above instruction

Introduction

The marketing plan is a critical strategic document that guides the positioning, development, and pricing of a product within a competitive marketplace. For Waters Bottling Company (WBC), a premium bottled water producer, this plan focuses on analyzing the product's features, lifecycle, market positioning, and pricing strategies. This section of the plan comprehensively examines the core, actual, and augmented levels of WBC's bottled water product, evaluates its lifecycle stages, and delineates strategies based on the BCG matrix, services marketing principles, and market forces influencing price determination. The goal is to develop a robust framework that aligns product features with market needs, lifecycle management, competitive positioning, and strategic pricing to optimize market share and profitability.

Product Features and Benefits

The core benefit of WBC's bottled water is providing consumers with safe, clean, and refreshing hydration. The core product is the fundamental need for water intake, essential for health and well-being. The actual product includes the branded bottled water itself, packaged attractively with features such as eco-friendly bottles, convenient sizes, and appealing labels that communicate purity and quality. Augmented product elements add value through customer service offerings like easy access points, sustainability practices, loyalty programs, and brand reputation for health-conscious consumers.

These features enhance consumer perception and differentiate WBC's bottled water in a crowded market. The actual product’s packaging, such as the use of biodegradable bottles, adds an additional layer of value aligned with consumer preferences for environmentally responsible products.

Product Lifecycle Stages and Strategic Implications

The product life cycle (PLC) for WBC's bottled water is typically categorized as in the growth stage, where sales are expanding, and brand recognition is increasing. During this stage, efforts should focus on increasing market penetration through advertising, expanding distribution channels, and fostering brand loyalty. As the product matures, attention shifts to defending market share against competitors. Eventually, in the decline stage, sales may decrease due to market saturation or emerging substitutes, prompting considerations for product modifications or diversification.

In the growth phase, aggressive promotional campaigns and strategic partnerships with retail outlets drive sales. During maturity, differentiation and improved customer engagement sustain sales, while the decline phase could involve product repositioning or phased withdrawal from less profitable markets.

BCG Matrix Analysis

The Boston Consulting Group (BCG) matrix offers a strategic view of WBC’s bottled water product. Based on market share and industry growth rate, the bottled water could be classified as a 'Star' if WBC dominates a rapidly growing health-conscious market. Alternatively, if market growth stabilizes, it may transform into a 'Cash Cow,' generating substantial cash flow with a high market share in a mature market segment. Should market share decline or competitive pressures increase, it risks becoming a 'Dog,' with low market share and limited growth prospects. Strategic focus should be on maintaining or growing market share during the 'Star' phase and harvesting profits during the 'Cash Cow' phase.

Services Marketing Considerations

While basic bottled water is a tangible product, WBC employs services marketing principles to differentiate itself. These include excellent customer service, brand experience, and sustainability initiatives. Service quality, such as timely delivery, eco-friendly packaging, and responsive customer support, enhances perceived value. Service marketing also emphasizes building relationships with health-conscious consumers, engaging in community health initiatives, and utilizing social media for brand advocacy. These efforts foster brand loyalty and enhance the overall customer experience, which are vital in a service-dominant marketing environment.

Price Determination and Strategies

Pricing strategies for WBC’s bottled water involve assessing cost structure, competitor pricing, consumer perceptions, and market demand. A value-based pricing model can reflect the premium quality of WBC's product, positioning it as an upscale alternative to generic brands. Cost-plus pricing can ensure profitability, but market-oriented pricing considers competitors and customer willingness to pay. Dynamic pricing may be used during promotional periods or in response to market fluctuations. Price skimming might be applicable if WBC introduces innovative packaging or features, capturing early adopters willing to pay a premium. Conversely, penetration pricing could be effective for gaining market share in emerging markets.

Supply and Demand Dynamics

The balance of supply and demand significantly impacts pricing strategies. High demand for bottled water, driven by health trends and environmental concerns, supports premium pricing. Supply chain efficiency, bottling capacity, and distribution networks influence available supply levels. Shortages during peak seasons or supply chain disruptions can lead to price increases, whereas oversupply may necessitate discounts. Accurate forecasting and flexible supply chain management enable WBC to adapt pricing in real-time, aligning with market demand and maximizing revenue.

Competitive Pricing and Market Positioning

Competitive pricing analysis involves examining prices charged by competitors, such as Nestlé, Dasani, or local brands. WBC must evaluate how its premium positioning justifies higher prices or whether a competitive parity approach is necessary to capture market share. Price matching strategies or promotional discounts can attract cost-conscious consumers, while maintaining profit margins. Differentiation through quality, branding, and sustainability allows WBC to justify a premium price point, reinforcing its market position as a high-quality bottled water provider.

Alignment with Company Objectives and Strategies

Pricing strategies should support WBC's broader objectives of market penetration, brand expansion, and sustainability leadership. Premium pricing aligns with objectives to position as an eco-friendly, health-conscious brand appealing to affluent consumers. Price elasticity considerations ensure strategies respond to consumer sensitivities, while promotional pricing supports entry into new markets or product lines. Ultimately, WBC’s pricing must integrate with its marketing, distribution, and operational strategies to achieve sustained growth and profitability.

Conclusion

Strategically managing product features, lifecycle, and pricing is crucial for WBC's success. By understanding consumer needs, market dynamics, and competitive forces, WBC can craft a compelling value proposition. Effective use of the BCG matrix, services marketing principles, and flexible pricing strategies ensures that WBC remains competitive and profitable amidst evolving market conditions. The integration of these elements into a comprehensive marketing plan will position WBC's bottled water for sustainable success in a competitive industry.

References

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