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Development and Introduction of a New Product

Table of contents:

Objective and mission statement
Target market
Competition
Product/service mission
Core strategy
Marketing mix: Communications and promotion
Pricing strategy

Objective and mission statement

The development and introduction of a new product raises a number of challenges which a company has to overcome to reach a marketing of its new product. In this respect, the introduction of a healthy snack may be particularly challenging taking into consideration the rhythm of the modern life and the popularity of fast food in the modern society. In such a situation, the company needs to define clearly its objectives and mission. The mission of the company is to develop and introduce the healthy snack to change the food culture of customers. To put it more precisely, the modern society is accustomed to the consumption of fast food and conventional snack, whereas the introduction of the healthy snack should help people to start consuming healthy food instead of unhealthy one, such as conventional snack which may lead to the development of various health problems.

The major objectives of the introduction of the healthy snack are the market expansion, competition with conventional snacks and the overall leadership in the snack market. In fact, the ultimate objective of the introduction of the healthy snack is to make it number one snack and, thus, to take the leading position in the market. In a short-run perspective, the main objective of the introduction of the healthy snack is to take its niche in the snack market to show customers advantages of the healthy snack compared to conventional snacks.

Target market

Today, the society is growing more and more concerned with health-related issues. In fact, modern people suffer from numerous diseases which have never existed or have been underdeveloped before. For instance, obesity and cardiovascular health problems are major problems of the modern society. In such a situation, the introduction of the healthy snack aims at the customer group which is concerned with the quality of food and its impact on human health. Therefore, the target customer group is all customers who are concerned with their health. At this point, it is worth mentioning the fact that the introduction and promotion of the healthy snack should mainly focus on adults and the younger generation because elderly people have food habits which are difficult to change. In addition, the elderly population leads less active lifestyle compared to the younger one. Therefore, they do not need to consume fast food, including snacks at such a rate as younger people do. Consequently, adults are conscious of the importance of maintaining their health and they are conscious of the importance of the quality of food they consume. Naturally, they would appreciate the new product. As for the younger generation, they need to develop positive, healthy food habits and the promotion of the healthy snack should be educative in its nature to reach this target customer group. The healthy snack should focus on all categories and customer groups which are inclined to the consumption of fast food, snacks and which are concerned with their health.

Competition

The competitive environment associated with the introduction of the healthy snack is quite controversial. On the one hand, the healthy snack is an innovative product and conventional snacks are not exactly direct rivals of the healthy snack. What is meant here is the fact that the healthy snack is different from conventional snacks because it focuses on the use of ingredients which are not harmful to human health and which cannot cause or provoke the development of health problems in consumers, such as obesity, cardiovascular diseases, etc. Furthermore, the healthy snack is an innovative product that puts it into an advantageous position compared to its competitors because it can take the leading position in the market as the first healthy snack.

On the other hand, conventional snacks are very popular today because people are accustomed to consume conventional snacks on the regular basis. The fast rhythm of life and food habits allows to maintain the dominant position of conventional snacks in the market (Slaughter, 2007). However, the domination of conventional snacks can end with the introduction of the healthy snack due to its advantages in regard to health of consumers. Nevertheless, the company will definitely face substantial problem while overcoming resistance of competitors and changing food habit and food culture of consumers. In this respect, the competition from the part of conventional snacks can be aggravated by the emergence of products similar to the healthy snack which are likely to appear in the future, especially if the healthy snack proves to be successful.

Product/service mission

The healthy snack is a totally new product which can revolutionize the snack market. To put it more precisely, the snack market is traditionally associated with fast food. Therefore, conventional snacks as well as fast food at large are potentially dangerous to human health because they can provoke the development of various health problems, such as obesity or cardiovascular diseases, and others. In such a context, the introduction of the healthy snack should change the quality of snacks as well as the attitude of the public to snacks as unhealthy food (Slaughter, 2007). In stark contrast to conventional snacks, the healthy snack is absolutely safe to human health and, what is more important, it can have a positive impact on human health.

As a result, the healthy snack can contribute to the change of the food culture of many consumers that is particularly important in regard to the development of positive, healthy food habits and food culture of the younger generation. Taking into consideration the fact that the healthy snack targets at adults and the younger generation, it can become a symbol of a new, healthy lifestyle, which can gradually eliminate negative and potentially dangerous food habits, such as the consumption of fast food and conventional snacks (Rodrick, 2002). Hence, the healthy snack should contribute to the development of healthy food habits and healthy lifestyle.

Core strategy

The core strategy of the introduction of the healthy snack should focus on the market expansion and taking the leading position as the alternative to conventional snacks. In fact, the product is positioned as the new snack which is safe to health of customers and it can even have a positive impact on health. In such a situation, the development of the marketing expansion strategy is quite logical because it facilitates the penetration of the new product in the market and attracts customers to the healthy snack. The company should stress the innovative nature of the healthy snack as well as its difference from conventional snacks.

Furthermore, the marketing strategy should be aggressive to make the introduction of the new product effective and undermine the position of conventional snacks. In fact, the product should revolutionize the market or, at least, to raise a stir in the market and attract a possibly larger amount of customers. In this respect, it is important to use customer-centered approach to persuade customers that the healthy snack is really useful to their health. At the same time, this approach can be used at the first stage of the introduction of the product, whereas in a long-run perspective, the company should focus on the mass production and consumption of the product. In actuality, the marketing strategy should focus on taking the leading position in the market and the healthy snack should become the leading product in the new fast food market, which should evolve from unhealthy to healthy ones.

Marketing mix: Communications and promotion

The communication of the company with customers is crucial for the overall success of the introduction of the healthy snack. In fact, the major goal of the communication of the company with customers is to inform customers about the quality and characteristics of the healthy snack. In actuality, customers are unprepared to the introduction of a new sort of snacks, healthy snacks. Therefore, they associate snacks with unhealthy fast food. In such a situation, the introduction of the new snack without communicating the idea of the safety and usefulness of the snack to health of customers is of the utmost importance. Otherwise, customers will not perceive the new product and they will prefer to consume conventional snacks.

At this point, the promotional campaign is particularly important because it is the most effective way to communicate the message of the safety and positive impact of the healthy snack on human health to potential customers. To persuade the public that the healthy snack is really healthy, it is possible to involve a famous sportsman or sportswoman who can promote the product and show that the consumption of the healthy snack can be useful to health. In addition, the promotion should reveal the contrast between the healthy snack and conventional snack to make customers persuaded that the healthy snack is the best choice, if they are concerned with the quality of food and its safety in terms of customers’ health.

Pricing strategy

The pricing strategy is of the utmost importance in regard to the successful introduction of the healthy snack. In actuality, the pricing strategy should focus on the effective introduction of the healthy snack that means that the price of the product should meet the buying power of customers and, what is more, the price should be affordable and attracting to customers (Case & Fair, 1999). In this respect, it is important to lay emphasis on the fact that the price of the healthy snack should mirror the actual costs of the production with minimal revenues for the producer. The profitability of the healthy snack should not exceed 2% because the high costs of production and the pursuit of high revenues can raise the price of the healthy snack to the exorbitant level. Therefore, the product can fail if its price is unaffordable for customers.

Alternatively, it is possible to try using discounts to attract customers to the new, healthy snack. However, the use of discounts is quite controversial. On the one hand, discounts can attract new customers en masse but, on the other hand, the company producing the healthy snack will suffer from financial losses. In such a way, seeming benefits of discounts can disappear, especially in a long-run perspective. Consequently, the use objective pricing, which covers costs and focuses on minimal profits to attract customers, is the most effective pricing strategy that can be applied to the healthy snack.

References:

Case, K. E. & Fair, R. C. (1999). Principles of Economics. New York: Random House.
Rodrick, D. (2002). Alternatives to Globalization. New York: New Publishers.
Slaughter, M. (2007). “Globalization and Declining Unionization in the United States.” Industrial Relations, 46(2), p. 329-347.