Wednesday 11 March 2015

SIMULATION TITLE: Marketing Mix-Study One-Topic 3

SIMULATION TITLE: Marketing Mix

Evie Karle manufactures Klaritas skin cream. The product has not been doing well and sales have been declining. To fix this problem, the Director of Marketing has developed a new overall marketing strategy including the target market and positioning of the product, and has requested that you now revise the marketing mix plan. You have been asked to develop a relaunch plan to increase the demand for the product over the next year, covering marketing mix variables: product, price, place, and promotion.


You earned 100 percent.

DECISION SUMMARY

You selected "product" as the first factor to consider in the marketing mix. This was the best choice. Price and promotion decisions were best made once the product attributes were established.
You selected "design, product name, and packaging." This was the correct choice. These three elements are all part of the "product" category.
You selected Formula 2. This was the best choice, as it best addressed the number one need the focus group identified—beautifying skin.
You chose to package Klaritas in a hot pink box and print the slogan "Bring out your outer beauty." across the top in black letters. This packaging was the best choice, as it would have set Klaritas apart from creams for older women and from acne creams.
Penetration pricing would have encouraged consumers to develop a habit of buying. It also would have fit well with the limited budget of the target market, teenage girls. This was the best choice. Since you chose Formula 2, you would have been able to make a profit even at the lower price.
Selecting electronic media for advertising was a good choice for this Formula 2 product. Your focus group showed that teenage girls spend a lot of time online. Additionally, electronic media is less expensive than television advertising. Since you chose the affordable Formula 2, this advertising choice would have given Klaritas even more profit.
Your boss agrees with you that an effective marketing program blends all of the marketing mix elements into an integrated marketing program. This was the best choice.

DETAILED ASSESSMENT


Background


Evie Karle's product, Klaritas skin cream, is facing declining sales. To fix this problem, the Director of Marketing has developed a new overall marketing strategy, including the target market and positioning of the product. As Marketing Manager, you have been asked to revise the marketing mix plan in support of the re-launch of Klaritas.

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