Marketing: Bundle Pricing Strategy

a) Bell bundle - Cable TV, Internet and Home Phone

·        Price:  3-month promo price $109.95/month, regular price $161.95/month

·        Bundle consists of:

            1. Fibe TV – HD-capable receiver with basic and specialty channels;

            2. Fibe Internet – 100 Mbps download speed, 50 Mbps upload speed,

                unlimited monthly usage;

            3. Fibe Home Phone – 20¢/minute Canada and U.S. calling, up to 8 calling

                features.

b) Benefits/reasons why Bell offers the bundle:

·        Bell reduces cost by bundling

·        Bell sells more product because it comes as a package of services

·        Bell increases profit by giving customers discounts

c) Benefits/reasons why customers buy the bundle:

·        Customers can buy a package of services at a lower price than bought separately

·        Customers can experience better performance by having services from the same company due to seamless integration and proven interoperability

·        Customers can take advantage of simple purchase decision but also limits their choices of services

d)         Bell can improve their bundle pricing by adding a feature which allows the customer to customize his/her own bundle. For example, the Fibe TV channels should not be basic channels + specialty channels but instead, the customer should be allowed to pick one by one each channel. Channels with high demand should be priced more and channels that are not in-demand should be priced substantially lower and not equal or almost equal. The same goes for the internet, the customer should be allowed to pick his/her own speed and data. Once the customer has made the customization, then the bundle price should be adjusted accordingly with fairness and competitiveness in mind. The pricing of the big communications companies such as Bell, Rogers, Shaw and Telus is based on oligopoly.  These companies price themselves competitively within Canada but they should lower down their prices because other communications companies in other countries with the same comparable services have pricing that is substantially lower.

            The lower pricing strategy recommended can both benefit the company as well as the customers. The company could improve its reputation and not be viewed as greedy corporation. Customers on the other hand can save some money and have satisfactory services as well. The company could then attract more customers from their competitors because of the benefits and savings which would then cause the competitors to lower down their bundle prices and allow more freedom and customization to customers.

           

Marketing: Target Market Strategy

a) Product purchased – Sensodyne Pronamel Gentle Whitening, 110 ml

·        Description: protects teeth against sensitivity to cold, heat, acids, sweets and contact; whitens and hardens tooth enamel; prevents dental cavities

·        Price: $5.74 at Walmart

·        Advertising/Communications Strategies: engaging both consumers and dentists; advertisements through TV, print, ad boards/signs and online

·        Sold at: Retailers such as Walmart, health/pharmacy stores such as Shoppers Drug Mart, online such as Amazon

b) Target market characteristics:

·        All age groups, all genders, all income levels, all geographic locations

·        Customers who have delicate gums and sensitive teeth who also wants whitening and cavity protection

c) Top competitors:

          1. Colgate Sensitive Pro-Relief Whitening, 120 ml

·        Description: removes stains, shields and repairs sensitive teeth; helps restore natural whiteness of teeth; fights cavities and freshens breath

·        Price: $4.98 at Walmart

           2. Crest Pro-Health Sensitive and Enamel Shield, 140 mL

·        Description: protects against painful tooth sensitivity; binds to and strengthens enamel; protects against enamel loss; healthier gums by preventing gingivitis; protects 7 areas dentist check: cavities, gingivitis, sensitivity, plaque, tartar, whitening, freshens breath

·        Price $4.46 at Walmart

           3. ARM & HAMMER Pro Sensitive Whitening Toothpaste, 120 ml

·        Description: helps reduce painful sensitivity to cold, heat, acids, sweets or contact; removes plaque and surface stains with baking soda; prevents dental decay; freshens breath

·        Price: $2.97 at Walmart

d) Market penetration strategy to increase revenues:

·        Increase promotions – discounts and sales promotions can attract more customers and can influence them to buy more (e.g. reduced price when buying 3 items)

·        Increase retail outlets – this would make the product be exposed to more geographical areas, thereby reaching to more customers and more potential sales

·        Increase marketing communication channels – better and more aggressive advertising on TV, print, sign boards, website, social media and other channels can increase sales as a result of broader customer reach, increased customer influence and greater “spreading of the word”

·        Make price lower than the competition – lower prices means savings, an excellent way to convince a customer to purchase the product especially those with tight budgets

·        Create raffles, draws, contests, etc. – these methods engage the customers’ active participation and provide chances of winning rewards through continuous purchase and loyalty

e) Market development strategy:

        1. Identify new target market.

                My recommendation: Non-Buyers Group

·        All people who are not currently buying the product in all age groups, all income levels, and all geographic locations who have common motivations namely:

            a. protection of gums and teeth against sensitivity to cold, heat,

                acids, sweets and contact;

            b. teeth whitening;

            c. enamel hardening;

            d. prevention of dental cavities;

            e. pricing based on value of the product having proven success and

                professional recommendations

        2. Create customer demand by answering the reasons for customers to purchase the product. (Example: Sensodyne Pronamel Gentle Whitening is designed for customers who have sensitive gums/teeth who also want whiter teeth, cavity protection and fresher breath).

        3. Pricing strategy. Price is a bit higher than the competition since product has been clinically tested, has a proven success record, and recommended by most dentists.

        4. Positioning strategy. Make product's image more appealing and more convincing than the competition.

        5. Advertising strategy. More aggressive advertising than competition through TV, print, sign boards, website, social media and other proven successful channels.

         The new strategy can be successful because of the following reasons:

·        customers' needs will be satisfied by delivering what the product is intended to provide

·        customers' feedback of personal success experience in using the product

·        recommendations from dental professionals establish a high level of customer trust

·        customers paid a price that corresponds to the product's benefits and effectiveness

·        various advertising channels will provide wider customer reach and exposure

Market Penetration, Market Development

The purpose of this Individual Reflection is to provide a summary that will address the following:

a)  What did you learn from developing your two new strategies (market penetration and market development) and from reading the posts of your classmates regarding new strategies to increase sales of a product?

b)  Analyze one new strategy you read, posted by a classmate. Explain why, or why not, you think it would be successful. Provide specific details regarding the strategy, the product, the target market and the product’s competition.

a) Market penetration, market development and strategies to increase sales of a product.

            In developing my market penetration strategy, I learned that there are many ways to increase sales of an existing product in an existing market. This can be done through:

            1. Better and more aggressive advertising. Better advertising can enhance customer influence and motivation to purchase the existing product. More aggressive advertising through various methods can help broaden customer reach and make the product known to more people.

            2. Lower price. Making the price lower than the competition can provide customer savings while helping those with tight budgets.

            3. Increase in the number of retail outlets. This can increase product availability in more geographical areas. It can also provide more opportunity for customers to access the product.

            4. Increase in promotions. Discounts and sales promotions can attract more customers and can motivate them to buy more quantities of the product than they normally would.

            5. Increase in rewards. Increase in rewards through contests, raffles, draws or other similar methods can promote customer participation, engagement and loyalty.

            In my market development strategy, I learned how to identify a new target market for an existing product. This involved some criteria such as age group, income level, geographic location, and common customer motivations or demands. What I learned about pricing strategy is that lower prices have the potential to increase the sales volume while higher prices than the competition have to be justified by some intrinsic value of the product that is superior compared to its competitors. I learned about positioning strategy which is all about placing a brand in the customer’s mind in relation to its competitors. I learned about many methods of advertising, traditional and modern. I also learned some insights about how to make a market development strategy successful. These are:

1) satisfying customer needs by designing and delivering a product with performance and quality;

2) using customer experience feedback as an influence tool;

3) using recommendations  and/or endorsements from professionals;

4) pricing the product reasonably and with clear justifications; and

5) using effective means of advertising for wider customer reach and exposure.

From reading the posts of my classmates regarding their strategies to increase sales of a product, I learned that reducing the product’s price was mentioned by majority of my classmates. They reasoned that lower prices would generate more sales through the increased number of units purchased. Others said that sales can be increased through additional professional endorsements, advertising about the performance and quality of the product, by convincing people what their investment is worth, and by mass marketing which would appeal to a broad range of customers.

            b) Analysis of Tarte’s Tarteist Pro Glow Palette posted by Female Reviewer.

Based on the strategy she stated, I would argue that it would be successful. Her chosen target market was the nonusers. The first strategy, offering a sample of the product, is a good one. Nonusers tend to be attracted to free samples and by virtue of being free and the philosophy that they have “nothing to lose” by trying, they, out of curiosity would try it out and would give the product a chance to prove itself whether it is comparable to the product that they are currently using or would exceed their expectations. Once the free sample had a positive feedback, then the prospective customer would more likely to buy the product. The second strategy was to adjust the price to the competition. Both competitors, the Anastasia Beverly Hills Glow Kit and the Too Faced Sweet Peach Glow Kit are priced at $52. Lowering the price would entice nonusers to purchase the product because they would be getting a good value for their money compared to its competitors. Lower prices also would allow buyers to have savings while getting a reputable quality product. The third strategy was to ask customers to write reviews. Product reviews can have significant impact to the success of the product. If more and more customers are writing about their positive and excellent personal experience on using the product, nonusers can be influenced to buy and try it for themselves. The fourth strategy was to post photos of customers who used the product to nonusers. As the saying goes, “a picture paints a thousand words”, appealing pictures are eye-catchers for would-be buyers.

            The combination of the four strategies she mentioned can potentially lead to success due to the variety of attractive benefits from free samples, lower prices, positive product reviews and appealing photos. In my opinion, adding a better and more aggressive advertising would allow even much stronger chance of success.  

Marketing: Individual Reflection

Individual Reflection 1

The purpose of this Individual Reflection is to provide a summary that will address the following:

a)  What did you learn from reading the posts of your classmates regarding factors that are important to them when eating a light meal in a restaurant, and the description of their lunches? Did you find many similarities, or very diverse preferences?

b)  Did you view similarities in the survey questions? What questions would result in better information?

c)  Provide a very brief recommendation to the BC Ferries Food Services Manager regarding what information you believe should be the goal of a survey of passengers.

a) Food Factors and Lunch.

            Everyone’s first and most important food factor was different. My first food factor was health. Others were taste, ingredients, price, appetite, and value. This difference in food factor priority can be influenced by one’s personality, lifestyle, health-consciousness, personal budget, and sensation of flavor just to name a few. Also, everyone’s second, third, fourth and fifth factors were very diverse. However, I did find some similarities. I found that health-conscious individuals were very similar in their choice of main food groups which were primarily vegetables and fruits. Another similarity I found was on price, size, and value. These three factors, in my opinion are interrelated in that everyone likes a decent size of valuable meal at a reasonable price.

            Individual lunches were from medium to heavy in size and with great deal of variety in composition. Some had meat, fish, sandwich, and burrito as their main dish. Most had fruits in their dessert. I noticed also some people make food choices for lunch based on the planned activities for the day or the events that took place the night before.

b) Survey Questions.

            I found many similarities in the survey questions. There were three questions that appeared the most. These were:

            1) What is the most important food factor that influences your choice of a light meal?

            2) What price do you consider affordable for a light meal?

            3) Question on the availability and pricing of healthy meals.

            I believe that the three questions mentioned above would result in better information because they bring about people’s innermost emotion or intellect that is responsible for influencing decisions in choosing meals. Furthermore, the questions provide an effective way to listen to customers and gather relevant information. The restaurants in turn can use the information to serve the needs of customers while gaining profit in the process of fulfilling those needs.

c) Recommendations to the BC Ferries Food Services Manager.

            I recommend three things which I believe should be the top goals of a BC Ferries food survey: influence, health, and price.

            To determine what influences a customer to make a decision on choice of food is what I believe to be the first goal of a food survey. For example, if the taste of the food is what matters most to the customers, then the management can focus on improving food preparation, ingredients, way of cooking, and other contributing factors that would create a flavorful and delicious taste that would appeal to customers.

            Health is wealth, as the wise saying goes. Eating healthy means preventing diseases, thereby saving money that would be spent on treating those diseases. If BC Ferries really care for their passengers’ health, then great emphasis should be on the availability of healthier food choices in their restaurants.

            Price affordability is important because customers are looking for a fair value for their money and ensuring that what they are paying for will fit reasonably in their budget. Healthier organic food is more expensive but if BC Ferries can make it more affordable, then it will be an excellent way of expressing gratitude to their passengers and helping out in the campaign for environmentally friendly means of growing food.

Food factors that influence choice of light meal in restaurant

FOOD FACTORS

I have 5 food factors that influence my choice of light meal when eating in a restaurant. These are:

1. Health.  Health is my first priority. I prefer a mixture of meat and vegetables with meat consisting about 20% and vegetables as the main majority of the ingredients. Fruits for dessert are my top pick.

2. Taste. The way that the food is cooked has direct effect on the taste. Vegetables that are overcooked will become very soft and they loose their flavor. I like simple seasoning with salt, spice and sauce.

3. Size. For a light meal, small to medium size is preferable. Since I am health-conscious, I control the size so it would not make me fall sleep after eating and would not add unnecessary extra fat to my body.

4. Culture. I am Asian and my culture plays an important role in my choice of Asian food and cuisine.

5. Price. Although healthy food choices for a meal are priced a bit more expensive, I think it is worthwhile since I would not put anything harmful to my body. Unhealthy food choices are the leading cause of diseases in our society today.

LUNCH YESTERDAY

            My lunch yesterday was a bit more in size than the normal. I went to bed late on Friday night and woke up around 11 am and so I skipped breakfast. As a result, I ate a heavy lunch. I had cheese omelette with peas and squash as my vegetables. I had sliced mixed fruits for dessert – pineapple, orange, cantaloupe, grapes and watermelon. Drinks were orange juice, water and green tea. Although it is a little pricier, well, I already skipped breakfast so it is as if I paid for my breakfast. In order to compensate for the extra food, I had to be more physically active in my exercise and burn those extra calories.

Marketing: Survey Questions - fixed response

SURVEY QUESTIONS - Factors to consider in selecting food for light meal:

1. Which one is the most important factor you consider when selecting food for a light meal?

a. health

b. price

c. taste

d. size

e. culture

2. Healthy food choices are typically more expensive. Do you like to have healthier meals that are less expensive?

a. yes

b. no

c. unsure

3. Do you agree that fruits and vegetables can help to protect you against cancer, diabetes, heart disease, and many other illnesses?

a. yes

b. no

c. unsure

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Is Hubpages a legit company?

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95 Minna Street (3rd Floor), San Francisco, CA 94105, USA.


JOINING HUBPAGES

How do I join Hubpages?

Click here to Register Your Free Account.



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Over 221,000 (as of April 2012).


How many published articles are there in Hubpages?

As of April 2012, there are over 1,258,000 published articles.


How many visitors does Hubpages have every month?

Over 29 million monthly visitors and readers from all over the world. Squidoo.com traffic is twice. Hubpages receives an average of 97 million page views a month. According to Quantcast, HubPages has become one of the 50 most visited US sites on the internet. Hubpages belongs to the top 300 most popular and most visited websites in the world, according to Alexa.com


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When visitors click on ads displayed on your articles (hubs). You can earn from Google Adsense, Ebay, Amazon or Hubpages Earnings Program.


When do I get paid?

When you accumulate $50 on the Hubpages Earnings Program and Ebay or $100 on Google Adsense or $100 on Amazon. The length of time for the first payment varies from author to author. Some writers achieve the minimum payout and get paid faster than other writers. Some authors receive their first payment after 9 months but they get paid hundreds of dollars every month after that. Content-rich articles increase in visitors and page views over time, so you earn more in the long run. DON'T GIVE UP. Keep writing. Keep publishing. This is the best advice. Just keep on writing and publishing quality hubs and you will notice after some time, you get paid month after month after month. Let those who succeeded over the years tell you the story...I am one of them.


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Direct bank deposit, Cheque or Paypal.


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How is the profit shared?

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MY PERSONAL EXPERIENCE

Hubpages content moderators are sensitive to the promotional links, products, category, duplicate content, language, etc. included in your hubs. Be careful, to follow their policies and guidelines to avoid your account being banned. Be warned, the site is very strict. Hubpages is considered to be the close competitor of Squidoo. Overall, I like Squidoo better than Hubpages!

~$~