This is a part of a marketing Plan for a new Apple product
Product : a car radio
Primary objective by introducing the Car radio is to deliver the user the same satisfaction from iTunes on the road, while on the move in the car. main features are standard radio, connectivity to all Apple devices, and the ability to connect wirelessly to all Apple devices and software
Discuss the following below in relation to product with references.
In developing you pricing strategy, keep in mind that it will be affected by your positioning strategy, as well as factors that may not be in your control - competition and markets could set price limits. Depending on your model, your distributors may also have a strong influence on the pricing strategy.
Pricing strategy directly impacts your revenue. But note that while increasing the price might give you more return on each unit, the number of units sold might decrease. So make sure you have considered your product's Elasticity of Demand before proposing your pricing strategy.
Distribution Strategy (Direct and Indirect):
Your distribution strategy will cover the distribution channels and points of sales. Just as the characteristics of the product have to be guided by the customer wants and needs, the distribution strategy has take into account where and how your customers want obtain your product/service. Is it online? At specialized stores? Warehouses? Some combination of the above?
Integrated Marketing Communications Strategy:
Integrated Marketing Communication Strategy (or Promotion) combines all the elements of communications from the brand to the customer. Promotion strategy informs customers about your product and its characteristics, creates positive attitudes towards the product and influences consumer buying decisions. The tactics under this strategy will include many kinds of activities, such as advertising, public relations, sales promotions, sponsorships, telemarketing, direct mail etc.
The new product introduced by Apple is a car radio. The main objective of Apply behind introducing the Car radio is to deliver the same satisfaction to the user, which they get from iTunes on the road, while on the move in the car. The main features of this product are a standard radio; it can connect with all the Apple Devices, it is a wireless product with the ability of connectivity with apple devices and all software.
With the help of the following marketing plan, I am going to discuss the various parameters that are associated with the pricing strategy, distribution strategy and integrated market communication strategy for the new product Car Radio.
Price is one of the four P's of marketing mix. Pricing is not an easy task to be determined easily. Companies determine the price of a product after the analysis of the product's value delivered and perceived by the customer. Many factors have to be considered in pricing policy. There is a six-step process in setting up the price of a product: (1) price objective selection; (2) determination of demand; (3) cost estimation; (5) competitor analysis; and (6) determining the final price (Kotler, 2002).
In this industry, both the price and product are important. Price for the new product of Apple is the mechanism to increase profitability and customer's loyalty. The concept, which states "Price produces revenue" also affects the pricing strategy. Intended value positioning of the car radio should be communicated to the market through its price. The Pricing Strategy of the product should be very reasonable so that the radio is affordable for all levels of the society. As long as price covers the variable cost and some fixed cost, the company will stay in business. In the long run, value addition to the product would provide huge benefit. Price plays a vital role in determining the demand (Kotler, 2003).
As this product is new for the market, completion is very high. The company should use the competition based pricing for this product to manage the future competition and maintain the high revenue. If the price of the product is higher, the elasticity of demand will be lower and if the price is lower, the elasticity of demand will be higher. Increase in the demand for the car radio provides huge market growth. Other ...
The expert examines a marketing plan for a new Apple product. The product, pricing and distributions are examined.