This necessitates creating the snore reduction tooth paste product position as being one of a low-cost substitute for more expensive snore reduction medicines and treatments.
Media and Market Planning Recommendations
The following table provides the media planning for the launch and continued support of the snore reduction tooth paste. As can be seen from the media and marketing strategy the reliance on online spending is where 37% of the total budget is allocated. This is in response to the growing importance of social networking and the groundswell effect (Bernoff, Li, 2008) on branding and messaging strategies globally. For the snore reduction toothpaste to be effective it will need to generate high levels of awareness and trial entirely online.
Media and Marketing Strategy
Frequency/month
Cost/month
Total Cost
Online - Google AdWords Program
£150.00
£15,000.00
Online - Yahoo Overture
20
£35.00
£700.00
Online - Sponsorship of social networking sites
1
£1,000.00
£1,000.00
Online - Microsite
1
£5,000.00
£5,000.00
Online - E-mail Marketing & Mgmt
1
£3,000.00
£3,000.00
Online - CRM System
1
£3,000.00
£3,000.00
Subtotal:
£27,700.00
Offline - Product Brochures
4
£200.00
£800.00
Offline - Sponsored Events
2
£10,000.00
£20,000.00
Offline - Medical Trade Shows
3
£7,000.00
£21,000.00
Offline - In-store displays and detailing
15
£400.00
£6,000.00
Subtotal:
£47,800.00
Totals:
£75,500.00
Marketing Mix
With the two main Integrated Marketing Communications Strategies defined as first positioning the snore reduction tooth paste as a preventative healthcare strategy to alleviate bacteria, and second as a cost-effective alterative to over-the-counter and prescription medications, the marketing mix must seek to maximize these messages through coordinated execution strategies. The coordination and synchronization of each aspect of the marketing mix must be intertwined to create an effective umbrella strategy (Erdem, 1998). This strategy of coordinating all aspects of the marketing mix, in the case of consumer goods including consumables, has shown to have a supportive effect on pricing overall in terms of stabilizing it (Erdem, Keane, Sun, 2008).
Product considerations for the snoring reduction toothpaste must first begin with the approach of how credibility is shown, earned and trust generated for the toothpastes' ability to also resolve bacterial issues as well. This tooth paste will only be successful from a sales standpoint to the extent it can be shown to alleviate bacteria. Aligning with a clean taste and quality is critical as well. The name of the product will also be critically important in either leading to greater trust and credibility or making the product appear to be "clean washed" into the market (Fox, 2002). Clearly the challenges of the product composition and the need for creating a very strong integration between the development teams and the marketing team, as Crest does (Martin, 1989) will also be essential for the products' success in this aspect of the marketing mix. The product will also need to concentrate on its substitute value aspects relative to more expensive solutions for snoring. The potential of showing there is no significant side-effects of using the snore reduction tooth paste will also be invaluable, as more potent and more expensive treatments for snoring often do.
In terms of pricing, the following table, pricing analysis of the 100g and 250g tubes are presented. The following table shows an assessment of the pricing scenarios for the 100g tube, 250g tube and the 250g tube with the pump. The assumptions regarding cost components are provided based on analysis of comparable tooth pastes (Chu, Chintagunta, Cebollada, 2008). The following table also assumes that distribution channel partners will be provided with 20% gross margin to stock the product and resell it. This is considered to be industry-average for distribution of retail products (Steenkamp, Gielens, 2003). This costing structure also assumes that the company continually seeks to create cost efficiencies in raw material sourcing and look to external packaging as part of its branding. The net contribution margin per unit of £.30 for the 100g tube, of £.71 of the 250g tube and £.78 of the 250g tube with pump which provides funding for future supply chain optimization, sourcing, quality management and marketing.
100g tube
250g tube
250g tube, pump
Pricing
£1.10
£2.20
£2.42
Cost Components:
Raw Materials
£0.12
£0.24
£0.26
Tube Packaging
£0.34
£0.44
£0.48
External Packaging
£0.12
£0.15
£0.17
Total Costs:
£0.58
£0.83
£0.91
Net Profit Per Unit
£0.52
£1.37
£1.51
Margin to Distribution Channel (.2)
£0.22
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