Marketing Analysis

Marketing Analysis

Introduction

In strategic business unit perspective, the prices per unit are very essential to the quantification of the magnitude of investments that should be made in the marketing of the specific product. In essence, one product price can vary across different retail stores and main stores due to disparities in product market behaviors and the retail options that are adopted in a set up. In essence, the value chain that businesses assume also create various differences by virtue of cost aspects to products and therefore demands careful consideration of competitor’s marketing mix as well as their supply and value chain network in order to leverage individual operations as far as costs are concerned. This scenario makes it possible for the development of an ideal business portfolio in order to establish viable business enterprises within the SBU. The following analysis shows a six week journal entry for the coke product across different shopping establishments.

Week 1:

During week one, the Coke product across the retail chain experienced disparities with regard to price mechanism charged on each pack. Through the first week the 330 ml pack was priced at £0.75; the 500ml pack at £1.25. On the other hand, a package of 3 bottles of volumes 330 ml each was trading at £3.50. On the other hand, 1.25 liters can of coke Cherry was priced at £1.29. This was exceptional price that that was charged as a special consideration of economy of scale. In any instance, bulk buying is considered effective for pushing prices downwards an aspect that creates cost advantage on the buyers. During the same week, the Miranda Cane bottle, 330 ml was priced at £0.82. Finally, the Coca-Cola six pack glass bottles was being priced at £4.49. These prices were averages of the retail stores that were observed across the entire stretch of time. 

Week 2:

During the second week of the program, there were certain specific changes that occurred in the market although the price levels for majority of the packages remained relatively low. In particular, the 330ml was priced at £0.74, 3bottles pack of 330ml at £3.46. However the prices for the 500ml pack remained constant at £1.25; 1.25 liter bottles was charged at £1.29, the Miranda Cane bottle of capacity 330ml was priced at £0.82 while the Coca-Cola six pack glass bottles were priced at £4.49. These prices were spread across the retail chain but bulk purchasing was considered with a discounted price of a minimum, £0.1.

Week 3:

During week three, there were a lot of changes in the price levels which was particularly contributed by the sudden shock in the industry that resulted in a disruption in the supply chain. Subsequently, the industry experienced acute shortage of the product despite while some of the distribution nerve centers contemplated into hoarding the product leading to unprecedented price increase of at least 0.5 percent on every pack. The new price outlay for all the six pack products were as follows; the 330 ml bottle of the drink was traded at £0.77, the 3bottles pack of 330 ml bottles were traded at £3.58. The price of the 500ml bottle of the drink also rose significantly to trade at £1.76. This was a significant marginal rise that resulted in declined sales across most of the stores in the area of study. The 1.25ml bottle was traded at £1.34 while the Miranda cane bottle of capacity, 330ml had a price level of £0.91. The Coca-Cola six pack glass bottles was charged at £4.62.

During this period, the discrepancies across different retail chains were very minimal an aspect that tended to create a uniform retail network with unifying factor of price levels. However, this price level that was almost equal across the chain was considered short-lived in the sense that the retail stores that were involved used different distribution channels which implied a significant difference in the costs aspects that each incurred. The cost of operations are critical to the determination of price of product but sudden shoot in price levels may have a serious negative effect on the demand of the product if not well considered for effective rectification.

Week 4:

During week 4, various changes were eminently perceived through the entire stretch of the industry and the retail network at large. Although it was a mere one week periodic difference, it is clear that the price level for smaller dealers increased considerably to meet increased costs attributable to change in the retail network. In particular the average prices for the different packs were as follows: the 330 ml pack was traded at £0.80, 3 bottles pack each containing 330ml coke, at £3.63. On the other hand, the price of the 500ml bottle was less affected by the change perhaps due to bulk purchases that the pack had been enjoying over time. In this regard, this bottle (500ml) was priced at £1.75 down from £1.76 in the third week. The decreased margin was very essential to creating an avenue to raise the number of 500ml packs relative to the others packs whose market prices had been adversely affected by the changing network of external supply mechanisms hence influencing the relative prices to be charged per pack. The 1.25 liter bottle was traded at £1.36 while the renowned Miranda Can Bottle of capacity, 330 ml was priced at £0.90. Lastly, the week closed with the Coca-Cola six pack glass bottles being traded at £4.59 which implied higher favorability of this bottle sample.

Week 5:

In the short-run, there were minor changes only in the market. In particular, most of the products remained relatively constant by virtue of their retail price levels. This implied that the week three prices remained unchanged for majority of the packs. For instance, other than 500ml bottle whose price changed across the network to trade at £1.73. This was however a major indication of the stabilizing price mechanism for the coke brand and the 500ml pack in particular which had been observed to retreat to back to its initially low price of £1.25. However, the rest of the packs remained at the week 3 price levels; 3 pack of 330ml each (£3.63), 330ml bottle (£0.80), 1.25l bottle (£1.36) and the Miranda Cane Bottle of capacity, 330 ml was priced at £0.90 while the Coca-Cola six pack glass bottle was traded at £4.59 showing a steady retreat to stable prices perhaps regulated by the change in the distribution channel change.

Week 6:

During the sixth week, the market forces had acted squarely to the insurgence of different market mix that were also leveraged by changes in the entire distribution and retail network involving the different packs of Coke product. In this regard, the prices for the six packs of Coke remained uniform with the week 5 price levels across the entire network. In particular, the price levels appeared as follows: 3 pack of 330ml each (£3.63), 330ml bottle (£0.80), 1.25l bottle (£1.36) and the Miranda Cane Bottle of capacity, 330 ml was priced at £0.90 while the Coca-Cola six pack glass bottle was traded at £4.59. This status was an indication of steadily stabilizing market forces that exclusively shaped the costs attributable to disparity in the distribution network and other cost implications involved during the supply chain network adopted by each entity.

Conclusion

Finally, the disparity in price charged for a product is an important element of making business decisions. Setting up prices may appear at the individual business level but highly leveraged by the sector prices as well as price of competitors regarding the same product. In this regard, the price charged on a given product of service forms a major element in decision making process in an organization. It defines decisions such as setting up prices either too high or too low which in effect either promote or limit business growth (Monroe & Jagdish 34). When such decisions are poorly done, they may result to serious implications on both organizational sales and cash flows.

Part 2: Packaging Product

The product for packaging here is the Gnome Bread. This product is very sweet with attractive packaging trait. Many clients are currently becoming more interested with achieving high health goals. Basically, the starting point to realize the achievement of this goal is nutritional focus. This aspect is highly entrenched in the Gnome Bread. Its packaging also plays a pivotal role through attractiveness in appearance and designs itself. The whole grain bread is essential for improving families and individual nutrition. This bread provides a wholesome contribution to the whole family health. Its main location is Minnesota and through GnomeMade Markets in particular. Cross-proximity to a product is very essential to the enhancement of market performance of a product (Media 21).

Gnome bread is packaged in an adorable face and was first developed by Barcelona based studio called the Lo Siento Studio. The packaging takes the shape of a kid and has inscription of a portrait of a kid which is very important in attracting you generation and children in particular. The packaging appears as shown below:

The shape taken by this packaging design is very essential to the development of a unique personality and close association of the product with a family unit or a social perspective hence an important marketing tool for the brand. Personally, I like this packaging as it makes one feel like opening the product all at first glance. The upper section superimposes the bottom part of the packaged bread which is essentially attractive for every generation.

Part 3: Promotion

In order to make sales in an organizational set up, it is important to stage mechanism of promoting organizational product performance through promotion. Promotion involves creating information sharing platform on a given product. This implies making inferences on a product through postage of its features on social media sites and other online platforms. For instance, when people post new videos online and subsequently share the videos, they eventually reach out to many people participating in online conversations which later appeals to a number of people at varying proportion. Similarly, company’s also post their strategic business portfolios online which creates different appeals and attracts different individuals who may be prospective clients or investors. These measures are defined as promotion processes essential for propagating product image to the society and the world population of consumers hence increasing chances of global market reach (Belz & Ken Peattie 31).

A more appealing brand easily passes product market chain through creation of high appeals to individuals. For instance, as the article posits, the Berger is presented in different packaging and appeals which creates varying appeals to prospective clients (Adubato 11).  The choice of words is very important in marketing as different words create different appeals to individuals and corporate entities. Online contents must focus on specific guidelines such as headlines, italics and other appearances that create different appeals to readers. These insights enhance the capacity of blog posts and websites in general (Rao 38). The context in which product promotion is done defines the specifics of a product and its appealing nature to individuals and corporate entities hence, enhanced marketing potentials.