Scenario and task: The Nestle company has decided to commission you to develop a coherent marketing mix for their brand new breakfast cereal product aimed at children under the age of 16 in the UK to compete with cereal products from Kellogg’s and Quaker. Product - organic granola bars
Competitors Quaker Oats Chewy Granola Bars and Nature Valley Crunchy Quaker Oats Chewy Granola Bars
Quaker Oats has presently a selection of granola bars that have 8g of whole grains that contain no high fructose corn syrup. The granola bars is available in boxes of 8 with 18 bars. The average pricing for the granola bars are £3.63. On observation it can be seen that there is a clear gap between the quality and pricing as compared with branded granola bars and supermarket own brands more specifically organic granola bars.
Nature Valley Sweet & Nutty
This product contains crunchy nuts and toasted oats for a delightful sweet and nutty flavour which comes in three variations and they are the following; peanut, almond, and chocolate. They are further dipped into nutty flavour coating. The bars are available in boxes of three with 5 bars entailed. The average pricing for the granola bars are £2.39.
The average weight of a granola bar is 55g, this information will aid the product development. The product is granola bars is made from organic barley, whole grains and oats. Price is very significant aspect of the marketing mix as this affects whether consumer will purchase your product or not. Our pricing strategy
I have selected to utilize the skimming pricing strategy for our new product, this is done to maximize the profits as we have entered the market with a product before the competitors enter the market, if however the competitors enter the market with a product similarly or same then our product will be unsuccessful at making a profit which is the core value. The pricing I have elected for the organic granola bars is £8.79 for 18 bars of 2 bar packs Therefore...
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