This competitive proposal is designed to give detailed characteristics of the various segments that were outlined in the initials proposal. The inception of the revolutionary cereals I very critical in the market and hence it is important to define some of the pertinent issues that affect its creation into market. In this set, we would explain the various consumption patterns for the company with the pointed intent of making sure that we understand how best we can penetrate the market and the target market as well. Additionally, we will discuss the market segment with a keen intention of understanding positioning for which the product should be placed to sell.
In the discussion of the consumer acceptance, we will discuss the target taste and preference of the various consumers that would consume this product with keen attention on the dissimilar connotations of the competitors (Kato, & Elias, 2015). Furthermore, we would discuss the pricing strategy that is available for choosing that the company can use. In this analysis of pricing, we would give much attention to the description of diverse pricing strategies that have been used and ensure that we give both the advantage and disadvantages of each. The main issue that would be discussed on the market segment is the different type of market segment and the ways in which they vary concerning important and the ability to penetrate. The principal of this competitive proposal is to understand the exact meaning of the identified segments in the initial proposal to help us gathering the relevant data for the whole project analysis.
Consumption patterns of cereals are one of the most pertinent section that needs to be addressed since it helps us define the type of target market that needs to use in this advent. As it stands, almost every member of a household takes the cereals in one way or the other. The grain can be processed in different ways which are preferred by various consumers.
To most consumers, the foods are usually used as a form of necessity because of it affordability. They are consumed along with additional consumable. The demographics of the customers show that this product is consumed by persons of age 7years to 55 years in majority stance (Consumer behavior. 2000). Cereals contain starch which is very critical in the release of energy for the individuals that work hard. Hence, the middle age individuals have a higher position of making sure that they consume a lot of this product. Additionally, it has been proven that the demand for the cereals in the urban areas is quite high than in the countryside. The consumers in the cities prefer that their product is refined and made more sumptuous than those in the countryside hence this differentiation is important (Deaton, & Muellbauer, 2013).
Various market segments have been postulated to capture the sales of a variety of goods and services. While segmenting the market for cereals, there is a need to give much attention to the needs of the consumers at every point in time. For example, for some users, the seeds would be used as the staple food which must be eaten almost on a daily basis. For this market, it is important to give the attention to the reliable supply of the product. In this prospect, the company needs to perceive the consumer offering as a convenience offering where it must strive to ensure that it provides the product at the convenience of the customer. On the other account, a consumer whose staple food is not cereals needs a diversification of product for which the cereal is a content that will help in ensuring that this product is sold to them (Kato, & Elias, 2015).
The behavioral patterns of the various consumers that they would want the quality of the product they buy. The little and part of the middle-class consumers are quite price sensitive while the while those in the high class are always quality sensitive. In this line of thought, the company should give much attention to the attainment of the best pricing strategy for the two sets of consumer market segments. We are geared towards makings sure that the cereal product gets to the best customer segment that will ensure the sustainability and high level of profits for the company. The sections outlined above are quite substantial in coming up with the best strategy so far (Deaton, & Muellbauer, 2013).
On the account of the pricing strategy, there are varieties of these plans that the company would want to explore. For the research, the strategies that we are focusing on are the cost-based pricing strategy, the professional pricing, and the price differentiation techniques. The cost-based pricing entails the use calculation of the cost of producing the producing the product. A percentage of profit will then be placed on the value calculated to arrive at the price of the product. It has been viewed that this technique is crucial especially in the mitigation of risks of loss and prediction of the profit to be realized (Deaton, & Muellbauer, 2013). The main problem with this strategy is that it makes the prices of these goods to be standardized.
Professional based pricing strategy is where the company would employ professionals who will be charged with the mandate of doing the market analysis and coming up with a substantial price for the company by inculcating both the dynamism of the market and the profitability of the market. Price differentiation makes use of the market segmentation in making the pricing decisions (Kato, & Elias, 2015). For example, the company would opt to charge highly for the high-end customer and charge small for the low-end customers for the same product. Again the company might want to charge highly at certain periods when the demand becomes while charging little when the market become depressed. Price differentiation technique helps the company to get the optimal gain from the sale of the cereals. In the recent past, various cereals processing company have used the price differentiation technique to help in making sure that most of the sales are streamlined. Nonpricing competition is very healthy for different products while price competition at time eats into the profits of the company (Deaton, & Muellbauer, 2013).
In a nutshell, the consumer patterns of this product are mostly dictated by the perception the consumer have product. Some consumers might view it as a staple food while others it is not. The substitutability of this product is also seen to influence the consumer pattern for this product. On the account of the marketing segment, the geographical segmentation would help us understand the high-end and the low-end customers and seen the best pricing strategy to use. Additionally, the segmentation regarding the age groups is critical in helping us understand the demand dynamics of the product (Deaton, & Muellbauer, 2013). On the account of pricing strategy, we would research on the cost-based pricing, the professional pricing, and the price differentiation techniques. In the discussion of the pricing strategy, we would also give much attention to whether the company should engage in price or nonprice competition.
Consumer behavior. (2000). United States: PEARSON EDUC (HIGHER ED GRP)(BOX 70632) (NJ.
Deaton, A., & Muellbauer, J. (2013). Economics and consumer behavior. Cambridge [u.a.: Cambridge Univ. Pr.
Kato, S. L., & Elias, J. G. (2015). Foundations of family and consumer sciences: Careers serving individuals, families, and communities.