Now that target markets have been identified in preparation of introducing IPT’s new products and the expansion of sales territories, strategic marketing efforts to reach the various segments is required. The strategies for marketing IPT’s products will include the following:
· Direct mail efforts – small, two-sided mailers with minimum text and colorful graphics. Target is retail and corporate customers in IPT’s existing database and relocated Pennsylvania residents who will respond to the reminder to buy.
§ Holiday mailings throughout the year
§ Additional databases compiled from public records which target specific demographics
§ Business lists – retrieved from Chambers of Commerce, professional associations
· Special offers, gift certificates, and coupons – consumers like to get something for nothing and this will be a reward for their patronage.
§ Special offers – to include samples of new products, free shipping
§ Gift certificates – given to existing customers to entice them to try new products
§ Coupons – Percentage discount on next order
· Loyalty rewards –coupons for discounts on future orders offered to retail and corporate customers who give a certain number of referrals
· Permission-based email messages – Website-browsing consumers will have the opportunity to include their Email address to receive promotional materials
§ Database of accumulated Email addresses for periodic promotions.
§ Customize messages based on individual information (birth date, etc.)
· Networking efforts – Sales managers will participate in trade shows, local events, etc. for the purpose of obtaining new corporate and wholesale customers.
· Niche markets: Target retail consumers
§ Residents of the Northeast familiar with Pennsylvania Dutch products
§ Various cultural groups
§ Senior citizens
· Ezine advertisements – placed on sites which target retail consumers by interests such as baking, movies, crafts, reunion sites
§ Pretzels advertised on baking sites, reunion sites, “snow bird” sites in Florida and Arizona
§ Movie-themed basket with popcorn and candy advertised on IMDB.com, Blockbuster, etc.
§ Floral arrangements advertised on craft sites
· Tag lines – elicit emotional response from all consumers
§ Senior citizens: “Remember when popcorn and pretzels were a treat?”
§ Popcorn and pretzels – the original low calorie treats!
§ Going Dutch – wooden gift box with pretzels, mustards, etc.
IPT will employ a pricing strategy for its snack products based on market research regarding current retail pricing for similar snacks already on the market. Retail pricing will not be lower than grocery store pricing for similar snack items on the theory that consumers are purchasing products both unique and made with superior ingredients. Pricing for floral arrangements can reach emulate upper tiers of similar products as well since IPT is developing unique arrangements that dovetail with its other offerings (i.e. a bouquet of tulips which can be ordered with a box of pretzels and mustards).
Retail pricing will follow the upper tiers as determined. Wholesale pricing will be discounted at a maximum of 40% of retail. Corporate pricing will have two tiers based on minimum annual sales to include a low tier of retail less 25% and an upper tier of retail less 35%.
IPT’s distribution strategy will be based on the various means by which consumers are able to purchase the products. The full line of IPT products will be available at all storefront locations, including food and floral arrangements. Products available for purchase through the company’s website, mail and phone order channels will be restricted to food products with extended shelf life and a modicum of shipping constraints dependent on geographic location. Shorter distribution channels will work best with the selling of floral arrangements while more distant channels can be employed to distribute snack food products with packaging that extends the shelf life.
Intensive distribution efforts via indirect channels will ensure that IPT’s food products are available to consumers in the most extensive of outlets. These distribution channels should be the most productive in achieving the greatest reach for retail consumers.
Intermediaries – including wholesalers and dealers – can be used to distribute the core group of IPT’s snack products while the more unique products, including those with ethnic flavorings and the Pennsylvania Dutch lines, will only be offered through IPT’s direct distribution to optimize growth and consumer product/logo/tag line recognition for products.
Darden, Katie (1998). “Five Secrets to Marketing Magic”. Retrieved February 4, 2008 from the SOHO Marketing Website: http://www.soho.org/Marketing_Articles/5_marketing_secrets.htm.
LeDuc, Bob (2000). “Target Marketing Strategy – Find Your Own Niche Market”. Retrieved February 4, 2008 from the SOHO Marketing Website: http://www.soho.org/Marketing_Articles/target_marketing_strategy.htm.
Werkenthin, Melissa. “Common Mistakes to Avoid in Marketing Your Business”. Retrieved February 4, 2008 from the SOHO Marketing Website: http://www.soho.org/Marketing_Articles/common_mistakes.htm.