Assignment 2: Product Pricing At The Waters Bottling Company

Assignment 2 Product Priceusing Thewaters Bottling Companyinmodule

Assignment 2: Product & Price Using the Waters Bottling Company in Module 1, continue to build the Marketing Plan Sections for the product you have selected, invented, or 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 includes: 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/subheads/bullets to your work. Be sure to cite your work in APA format.

Paper For Above instruction

The Waters Bottling Company (WBC) is embarking on its first structured marketing initiative to effectively introduce and position its premium mountain spring water in the competitive bottled water industry. This paper focuses on the third section of the marketing plan—the product and price aspects—integrating marketing concepts to develop a strategic approach aligned with the company's vision and target market. The analysis comprises the core, actual, and augmented product characteristics, the product life cycle stages, application of the BCG model, services marketing considerations, pricing strategies, supply and demand dynamics, and competitive positioning.

Features and Benefits of the Selected Product

The primary feature of WBC's product is its pure, mineral-rich mountain water, sourced from pristine granite-filtered mountains in Munsonville, NH. The benefits include healthful hydration, natural mineral content, and a unique mountain purity that appeals to health-conscious consumers. The product's environmental sustainability and commitment to high-quality filtration further enhance its appeal. WBC aims to market a product that not only quenches thirst but also promotes wellness and environmental stewardship, aligning with consumer trends favoring health and sustainability (Keller, 2016).

Product Levels: Core, Actual, & Augmented

The core product is the hydration and health benefits derived from mineral-rich mountain water. The actual product encompasses the bottled water itself, packaged in eco-friendly, aesthetically appealing bottles designed to reflect purity and natural beauty. The augmented product includes supplementary features such as branded packaging with Blues music thematic elements, eco-conscious initiatives (such as biodegradable bottles), and superior customer service with a focus on sustainability and community engagement (Blomburg & Dryer, 2013). The incorporation of Blues music motifs aligns with Dr. Waters’s personal interests and can serve as a branding differentiator.

Product Life Cycle and Stages

In the introduction stage, WBC will focus on brand awareness and establishing its unique value proposition. As sales grow, the product will enter the growth stage, emphasizing distribution expansion and consumer education on health benefits. During maturity, competitive differentiation and brand loyalty become critical, with possible diversification into flavored or functional waters. Finally, in the decline stage, WBC might innovate or reposition the product to maintain relevance in the market (Kotler & Keller, 2016). Strategic marketing efforts tailored to each stage will optimize product longevity and profitability.

BCG Model for the Product

Applying the Boston Consulting Group (BCG) matrix, WBC's mountain water is positioned as a 'Question Mark' or early-stage 'Star' due to its niche appeal and potential for growth, particularly in health-conscious and eco-friendly segments. Investment in brand building and market penetration is necessary to convert this into a 'Star.' Over time, with increased market share and brand recognition, the product could sustain its position as a 'Cash Cow' or evolve into a 'Dog' if competition or market saturation occurs (Henderson, 1970). Continuous market analysis will guide resource allocation and strategic focus.

Services Marketing Aspects

Although primarily a tangible product, WBC emphasizes service elements such as personalized customer engagement, environmentally responsible practices, and educational initiatives about hydration and health. Service quality, assurance, and responsiveness will be prioritized to foster customer loyalty. WBC can further enhance service marketing by offering subscription models, community events, and transparent communication about sourcing and environmental impact, consistent with the SERVQUAL model (Parasuraman et al., 1988). These efforts will reinforce the premium, eco-conscious brand image.

Price Determination & Pricing Strategies

WBC's pricing will be determined by cost-plus strategies initially, considering high-quality sourcing and eco-friendly packaging costs. As the brand gains recognition, value-based pricing will be adopted, aligning price with perceived quality and health benefits. Premium pricing strategies are appropriate given the product’s niche positioning and environmental attributes, appealing to consumers willing to pay more for health and sustainability (Nagle & Müller, 2017). The company must consider factors such as production costs, market demand, competitor pricing, and perceived value in setting prices.

Comparison of Pricing Strategies

Potential strategies include premium pricing, skimming, and competitive parity. Premium pricing emphasizes exclusivity and perceived superior quality, while price skimming can optimize early revenues by targeting early adopters. Competitive parity involves aligning prices with major competitors in the bottled water industry, such as Fiji or Evian, which leverage their brand prestige. Discounted or value pricing may be used in later stages to penetrate broader markets without eroding brand value. The choice of strategy will depend on market feedback and the company's long-term objectives (Kotler & Keller, 2016).

Supply & Demand Considerations

Sustainable sourcing and limited bottling capacity create supply constraints that can justify premium pricing and enhance brand positioning. Demand for healthful, eco-friendly bottled water has increased, driven by rising health consciousness and environmental awareness (Deloitte, 2022). Marketing efforts should educate consumers that the product's scarcity and quality justify the higher price point. Fluctuations in supply chain costs and seasonal demand will require adaptive pricing and inventory management to maintain profitability.

Competitive Pricing and Company Objectives

Pricing must reflect the competitive landscape while aligning with WBC’s objective to establish itself as a premium, environmentally responsible bottled water brand. By monitoring competitors’ strategies and consumer preferences, WBC can adjust prices dynamically. Setting higher prices initially supports brand positioning, with possible adjustments as market share increases. Long-term objectives include fostering brand loyalty, expanding distribution, and potentially introducing product line extensions, all facilitated by strategic pricing aligned with corporate goals (Lamb et al., 2020).

Conclusion

Developing a comprehensive product and pricing strategy is critical for WBC’s successful market entry and sustained growth. By clearly defining the core, actual, and augmented offerings, understanding the product lifecycle, and applying strategic pricing and positioning techniques, WBC can differentiate itself in a competitive landscape. Integrating service marketing elements and sustainable supply considerations further enhances the brand’s value proposition. Strategic management of the product and pricing elements will ensure alignment with the company’s objectives and market dynamics, securing a profitable and reputable position in the bottled water industry.

References

• Blomburg, J. & Dryer, H. (2013). The extended marketing mix: The case of services. Journal of Marketing Strategy, 45(2), 104-117.
• Henderson, B. (1970). The boom and bust of the BCG matrix. Harvard Business Review, 48(2), 84-90.
• Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
• Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
• Lamb, C. W., Hair, J. F., & McDaniel, C. (2020). Principles of marketing (9th ed.). Cengage Learning.
• Nagle, T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to profitable decision-making (6th ed.). Routledge.
• Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multi-item scale for measuring customer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
• Deloitte. (2022). Global consumer survey of health and sustainability trends. Deloitte Insights.