Marketing Conclusion Essay Example

align="justify">The value proposition of Vitality is to introduce a new product aimed at young consumers that are busy, motivated and concerned about their wellbeing. The brand intends to attract these consumers by offering a unique energy supplement that replaces unhealthy energy drinks with a higher quality and more effective boost of energy, enriched with natural vitamins and minerals.

To target and attract this segment, Vitality has developed a positioning statement: 'To the busy, motivated students and professionals that need every moment in their day, Vitality is an organic energy supplement that will allow you to go away with unhealthy energy drinks, in return for a greater energy that will provide for a better, more natural and healthier you'.

The Vitality logo is expected to be simple and straightforward (see Figure 2.). The proposed logo will not only be recognizable by name but also by the minor logo of the three leaves. These leaves symbolize energy for the body, mind, and soul - the three components that vitalize one's day.

Choosing the right color for the Vitality logo is crucial, as studies have shown that color is noticed by the brain before other elements of communication (Communications Ltd).

The company logo of the Vitality brand, which is a natural health product, was chosen to be lime green. This color was chosen because studies have shown that green has a primary association with nature, creating feelings of security and a connection with natural elements. (Albuquerque & Milne 2011, p.714). By using only one color for the logo, it can be printed in black and white, aligning with Vitality's environmentally conscious approach and cost-saving initiative. Figure 2 showcases the

Vitality Logo Marketing Mix Strategies Product where Vitality energy supplements are presented in pill form. Each package contains 20 pills and is made from recycled cardboard with graphics printed using vegetable-based inks. In addition to the product itself, Vitality will also provide augmented products such as telephone and online support for product queries. A "satisfaction guaranteed" promise will also be offered, allowing customers to obtain a refund if they are not completely satisfied with the Vitality product. This guarantee serves as a strong marketing signal of quality and gives Vitality a competitive advantage over lower quality and unhealthy products like Red Bull energy drinks (Meyer, Griller & Howsoever 2014, p.151).

Satisfaction guarantees have been shown to increase customer interest in a product by creating a perception of reduced financial risk. This helps to minimize objections to purchasing the product and thus increases the chances of a purchase (Boohoos 2003, p.42). With students being a significant part of the target demographic for the Vitality product and known for their frugality, it is important that the product is competitively priced. The price for a package of 24 Vitality energy pills will be set at $19.95. After an initial one-month half-price promotion, Vitality will employ a value-based pricing strategy to compete in this growing industry.

Customer value-based pricing relies on the buyer's perception of value rather than the seller's cost as the determining factor for the final price of a product (Tombs & Pearson 2013, p.438). Vitality will adopt this pricing strategy as it competes with two different markets: energy drinks such as Red Bull and multivitamins such as Swiss. By offering a pill that not only

provides an energy boost but also contains multivitamins, Vitality will position itself as a substitute for both of these products. It is expected that Vitality will be seen as a cost-effective choice, which is crucial for its young and tech-savvy target market.

Vitality will be manufactured in Australia and distributed directly to consumers from a warehouse located in Milton.

Vitality, as an online business, understands that customers may have doubts when purchasing their products. To address this concern, Vitality will utilize Australia Post for product distribution. It is important for online businesses to address the issue of potential damages to their reputation due to faulty delivery systems (Sister 2004, p.448). As Vitality's products are relatively small, they can benefit from promoting free postage. To ship a single package of Vitality supplements to metropolitan areas nationally, a cost of $5.0 will apply. However, any buyer who purchases one or more of Vitality's products will receive free postage throughout Australia (Australia Post, 2014). The company will dispatch products daily at pm to ensure same-day delivery whenever possible. In terms of sales promotion strategies, they can be seen as temporary incentives that urge consumers to purchase the promoted product immediately (Tombs et al. 2013). For a short-term launch promotion, Vitality will implement a penetration strategy by offering consumers half-priced products for the first month. Additionally, by 'liking' and 'sharing' Vitality's Backbone page, users will receive a special 10% discount code for the purchase of Vitality products.Penetration strategies, which are based on low prices, are most effective with younger demographics and are particularly recommended for companies aiming to stimulate demand for new products and expand their market (Sherries 2012, p.182).

If these strategies are executed correctly, the reduced prices are expected to contribute to high future demand. In the pre-purchase stage of the promotional mix, advertising holds the highest importance as a promotional tool.

Given that customer loyalty is initially non-existent, the key focus of promotional material will be to create awareness and knowledge about the new product. This can be achieved by integrating a rational appeal message into various forms of media, including distributing free samples. One possible approach is to offer free samples to university students in order to gain awareness in the student market. Students, who usually have lower incomes, are less likely to take risks with unfamiliar products. Offering free samples allows them to try the product and gain reassurance before making a purchase decision.

The promotional activity should be timed strategically: four times a year at different locations. This will maximize the reach while adhering to budget limitations, despite the labor-intensive nature of the task.The promotion for this product will primarily target university students, who are located in a densely populated area. This will increase the chances of gaining awareness and obtaining samples. Billboards are an effective advertising medium, as 4 out of 5 people notice them. By placing billboards in locations where they are likely to be seen by corporate workers, the reach of the advertisement will be significant. The objective is to increase awareness of the product by designing an advertisement that prominently displays the name "Vitality" and provides a brief description. The goal is to avoid overwhelming consumers with too much information. For the first and second quarters, there will be one billboard advertisement each, placed in

different locations to determine which is more successful. Additionally, utilizing social media platforms like Backbone, which has a large global user base, will also contribute to raising awareness.According to Backbone (2014), there are currently 31 billion active monthly users on their platform. This platform will be used by Vitality to promote general product updates, newly released products, sales, and discount codes for their online shop. To increase awareness of their social media pages, Vitality plans to link them with billboard and newspaper ads. These ads will encourage consumers to "Like us on Backbone" in order to learn more about Vitality by accessing their Backbone page (Renault and Renault, 2014). Backbone also serves as a platform for customer interaction, allowing representatives from the company to address any queries or concerns in an informal manner. This approach aligns with Vitality's philosophy of being a local Australian business that values strong customer relations. Additionally, Instating (2014) is mentioned as another platform with 200 million active monthly users, primarily used for photo sharing. When posting images on Vitality's page, they do not necessarily have to be of the products themselves. Rather, they can focus on the overall lifestyle associated with the Vitality brand, such as inspiration and motivation. This approach is similar to Red Bull's profile where they rarely post images of their drinks but instead share photos depicting extreme sports and an active lifestyle (Teleprompter Ltd, 2014).The purpose of this medium is to attract people to the Instating page with its photo content, while also promoting the Vitality energy supplements. The Instating profile will feature photos of the business activities at the Brisbane premises and showcase the surrounding

region of Queensland. This aims to convey that the business is locally owned and transparent about its operations. Additionally, by advertising to the Brisbane region, Vitality believes it has a competitive advantage in gaining support from local consumers compared to overseas companies. To further increase brand awareness, Vitality will hold a contest called "Show us where you're being Vitality's" where consumers can showcase their use of Vitality products for a chance to win a year's supply of 500 pills. By uploading their photos and tagging Vitality, contestants' Instating followers will see the content, enhancing brand exposure. From the company's perspective, this contest allows Vitality to gather valuable information about product usage, preferences, and locations, which can inform future product development to meet consumer demands.The Courier Mail and its accompanying Sunday Mail, which are among the top-selling newspapers in Australia, will be used to advertise in Vitality's home state of Queensland. In 2012, The Courier Mail had 503,000 readers from Monday to Friday, with 180,000 readers aged 25-49 and 273,000 readers aged 49+. This indicates that while social media will be used to target the younger market, placing the advertisement in The Courier Mail will reach a larger older population. To attract potential customers interested in the health benefits of Vitality products, the ad will be placed in specialized pages such as health and lifestyle. Additionally, placing an ad in the finance section will target commercial employees who focus on that section of the newspaper. To maximize the reach of the ad, it is important to place it in a relevant section of the newspaper. The ad will appear weekly throughout the first year to increase

consumer attention and engagement.Easy access is provided for consumers through a free and user-friendly platform. This platform offers news updates about the company, including new products, along with discount codes for the online store. The PR manager responsible for maintaining this platform is paid $25 per hour, which amounts to $4563 in labor per year.

Upload pictures representing the company's ethos are encouraged, focusing on healthy living, motivation, and insights into the company's operations. Additionally, contests are held where participants can upload pictures showcasing their use of Vitality products in various settings (office desk, outdoors, etc.) for a chance to win a one-year supply of Vitality products.

There is a constant profile that is updated regularly, and contests are held twice a year following a similar structure to a Backbone page. The cost for this constant profile and the contests is $4563 per year. The prize awarded for each contest is a one-year supply of 500 pills. Assuming each pill costs ICC wholesale, the cost for the prize is $250 per contest or $500 per year.

To reach out to the commercial market and increase product awareness, website advertising is utilized. Banners on websites like Yahoo Finance, among others, contain links to Vitality's website. This marketing strategy is managed by a marketing manager and costs $299 per month for one page on three different websites, totaling $7176 per year.

Newspapers such as the Courier Mail or Sudsy Mail have a wide readership and are accessed by diverse individuals.While younger consumers primarily use social media, older individuals tend to rely on newspapers. To target the older demographic, we should place ads in specific sections of the newspaper such as the

Health and Wellbeing or Finance pages. For a weekly column ad, the cost is $60.62 on weekdays, resulting in a total of $3,152.24 per year. Another option is billboard advertisements strategically placed in locations visible to commuters entering the city for work. This creates awareness of our product during their brief encounter with the ad. Studies have shown that 4 out of 5 people notice billboards, ensuring a wide reach. For the first quarter, we can choose one billboard, and for the second quarter, we can select another billboard in a different location. The cost for each quarter is $3,250, totaling $6,500 per year. Another effective strategy is distributing free samples of our Validated product line. These samples will be given out at universities to access a large portion of the dent market. To execute this plan, we will hire three staff members for five hours each at a rate of $25 per hour, four times a year. This amounts to $1,500 in labor costs annually. Assuming we distribute 1,000 pills each time and considering wholesale prices at $2 per pill, our inventory cost for samples will be $2,000 annually. Therefore, the total promotional expenditure is estimated to be $35,666. We have allotted $40,000 for this purpose but set aside the remaining budget reserved for any inaccuracies or estimations regarding labor costs.

Controls and Contingencies: The measurement of sales turnover directly resulting from specific advertisements varies depending on the media used. Discount codes provide a measurable indicator, while billboards lack accurate information. A simple survey at the online store checkout can be implemented to determine how customers discovered Vitality. The survey will include a dropdown

list of promotional media options, along with other influences like colleagues or friends and family. Completing the survey will be optional to not discourage purchases, but it should be user-friendly enough for customers to participate. By analyzing the survey responses, we can determine which promotional media are successful in capturing consumer attention and driving product purchases. A key statistic will be the percentage of sales generated by different media relative to the marketing budget allocated to those media. While the total sales figure is influenced by external factors such as the economic climate, comparing the sales-to-advertising cost ratio allows for a comparison of multiple advertising approaches.

If billboards are consuming a large portion of marketing budget but only generating a small percentage of sales, it may be necessary to analyze the content and placement of the billboards. Alternatively, it may be wise to stop using billboards altogether and allocate those funds towards more profitable forms of advertising such as newspaper or social media contests. To track the success of promotional media, discount codes will be utilized. These codes can be issued through different mediums, including Backbone, Instating, and newspapers. Each code will have the same value, for example a 10% discount at the online store. By monitoring the number of discount codes redeemed for each respective advertising medium, we can gauge the popularity and success of different elements of the promotion strategy. Vitality's social media profiles, such as Backbone and Instating, will continue unless they lose popularity and are replaced by a new platform. The popularity of Vitality's social media presence can be determined through metrics such as Likes or Followers.

The PR Manager occasionally seeks

feedback from users of social media platforms to determine their content preferences, including lifestyle photos, information on Vitality products, and company updates. The Vitality brand encounters numerous marketing challenges in striving for dominance in the energy supplement market. These challenges highlighted in the report include intense competition, uncertainty surrounding the adoption of a new and unique product, potential concerns about an E-business model, caution among a portion of the target demographic, and difficulties in building a loyal customer base for a new business. This marketing plan presents effective solutions to address these challenges. The brand will achieve competitiveness in the target market by emphasizing a natural and organic energy supplement through the Vitality logo and slogan.To address potential uncertainty surrounding the adoption of a new and unique product, a solution is presented in the form of a "satisfaction guaranteed" promise offered to consumers. Another source of uncertainty, related to the use of an E-business model, can be resolved through the establishment of an excellent brand reputation achieved by efficiently and effectively distributing the product.

The Vitality product is competitively priced, making it accessible to lower-income demographics such as students. To ensure its success, marketing strategies are recommended to cultivate a loyal customer base. These strategies include enticing consumers through sales promotions like free samples and an initial half-price promotion. Various advertising campaigns and adept management of consumer relations, including engagement on social media platforms, will be employed to attract customers and foster loyalty.