DESCRIPTION This is a very rough draft of Assignment 3 for Group 2 Team Barbara Gameni Leundeu (301326174). Dahong Chen (301346331) Kimberly Delos Santos (301334597) Muhammad Hamza (301351552) Shaunak Bardwaj (301341054) Subaha Vijayakumaran (301249796) ASSIGNMENT 3 MKTG116 Sec. 4 Challenge 1: Relevant Integration of Assignments #1 & #2 (Approximately ½ page) – 15 Marks a. Could include iii. SWOT analysis (don’t forget Marketing Model) iv. Your new product idea or how you are altering a current product or how you are repositioning a current product…, how is it different from the original product / positioning. SWOT The Best Cookies in Toronto (blogto.com) The Best Cookies in Toronto | TasteToronto This is a screenshot of Robyn’s Cookies and its competitors standing on google. We can see Robyn’s has significantly less reviews compared to the other two. Also, the link suggests that Robyn’s may not be the “best cookie” in Toronto according to the public. They may have a great cookie but it is of no use if people don’t know about it. This problem can be neutralized by effective marketing and new distribution channels. Robyn’s only has one store in Toronto. It would be beneficial to get into premium grocery stores like McEwan’s. New Question: Pricing (approximately 1 page) – 15 Marks Let’s talk about the Chocolate chip cookie. a. Explain your pricing objective (Chpt 12 Section 12-2a) and why you selected this objective (Profit Oriented vs Sales Oriented vs Status Quo). – Status Quo Above is a comparison between Craig’s and Robyn’s. Our competitor seems to be slightly more expensive than us and still is widely popular. Just matching their price can significantly affect the profit margin, especially if we are trying to get into other retail outlets. b. What is the recommended introductory price of your product? Justify why you selected this price. What did you consider, what research did you do, and what was important to understand about the market and customer in order to come up with this price? – ($20 for a 10-pack) https://www.investopedia.com/articles/personal-finance/091115/psychology-behind-why-people-buyluxury-goods.asp Based on the above article, people who buy premium goods are not rational. Here’s an excerpt. “Because some people perceive non-luxury goods as inferior simply by virtue of them being non-luxury (and not on the basis of their characteristics or qualities), they also come to the conclusion that higherpriced goods are of better quality.” We have a really good cookie and people who buy us love us. Therefore increasing our price slightly will do more good than harm. Using the Status Quo approach to seem a little more premium seems reasonable. c. Do you consider your pricing strategy Penetration Pricing, Status Quo, or a Price Skimming approach (Chpt 12). Explain what the strategy is that you selected and why you selected that approach. [Principles of Marketing] Status Quo (Details above) Question 2: Communications (approximately 1 page) – 15 Marks a. What is your promotional mix (include at least 2 tools/strategies) – consider characteristics of each outlined in Exhibit 15.4 to explain why you chose the promotional strategies that you have selected also taking into consideration what was discussed in 15-6: Factors Affecting the Promotional Mix and other considerations explained in Section 16-4 to 16-6 in the text. i.e. If you selected one Promotional Approach to be Digital advertising, you could explain why because it is more targeted, or Sales promotions because it will allow consumers to sample a new product with little risk/investment, Personal Selling because a relationship with the customer is a very important part in influencing them to buy this product, magazines because targeting a very specific demographic that we know are regular subscribers to that magazine, etc. And expand on your explanation. Digital Advertising and Publicity https://www.narcity.com/toronto/the-best-cookies-in-toronto-ranked-by-taste Here is another article to consider. No one is talking about Robyn’s cookies. Robyn needs to reach out to influencers and magazines to get them to talk about them. Here is a scenario: It’s a Sunday afternoon and your sugar craving says “We need a cookie”! You search about the best cookie in Toronto. If you don’t find Robyn’s on BlogTo, Narcity, etc.; you see only 39 reviews on Google. How likely are you to go there? Clearly, we need to work on our digital presence and SEO. Moreover, we can use digital ads to update our customers after we land distribution is other retail stores. Salespeople Robyn’s can put up offers that would give customers a 10% off in-store visits or a free cookie if they write a Google review. Salespeople can communicate such offers to customers. Also, people need to know about everywhere they can get the amazing cookies and salespeople can always promote that too.
