Answer to Question #220892 in Management for Sanket sharma

Question

Health and Nutrition Start-Up, Habbit makes consumer debut with a range of innovative & delicious Products. The Habbit Super Shake is a daily nutrition drink for the entire family. A glass of Habbit Super Shake covers all your essential nutrition requirements. It consists of all essential fibers, healthy omega, vitamins and minerals with zero added sugar to give a super start to your day. Considering that they have entered in consumer market for the first time, how the brand should be positioned in the market ?

Answer 1

Market brand positioning is one of the core factors determining the quantity of a commodity that sells in a given product market. It is a market entry strategy and sustainable marketing technique that organizations can use to increase their market share among their competitors. The Health and Nutrition Start-Up, Habit has been manufacturing innovative and delicious products to their customers yet is at a growth stage characterized by market penetration and developments. Its entry into a consumer market for the first time puts it at a demand to manipulate a combination of various marketing and penetration techniques to secure an appropriate position in the market. The entry strategies determine whether the products from the company survive in the new demand in the long run or are automatically faced out by the substitutes from other companies that could have lasted in the market for a reasonable duration (Buckley, 1998). Some of the marketing strategies available for the correct positioning of the company's brand in the new market include price adjustment, aggressive and augmented promotion, product improvement, distribution channels, upsurge usage, innovative uniqueness, and the creation of entry barriers.

Price adjustment strategy is one of the widely used market penetration strategies. As the firm is introducing its products in a new market, it would be better placed to lower initial prices below the standard prices for which the substitutes existing in the market are trading. Price adjustments that increase or decrease price are effective if implemented after proper analysis of the existing products and careful limits. Therefore, the company should be informed that reducing its prices may not yield positive results as consumers associate prices with quality. Accordingly, high prices are taken to represent advanced quality, though when the prices are set too high from the average prices, potential customers would be scared, affecting the company negatively. In a nutshell, these products should be priced slightly below the prevailing market prices for similar commodities to evoke consumer interests at the entry level.

Second, aggressive localized product promotion within the target market would positively position the brand in the market. The firm should narrow down to its targeted market, performing vigorous market promotion using local languages, local newspapers, and social media groups within the new market region to create mass awaking of the potential and existing customers (Ekanem, 2017). There is likely to be a dramatic increase in the product's sales, making an excellent beginning to figure out how to maintain.

Product improvement is yet the third strategy the firm can use to create a positive attitude in the minds of the consumers regarding the products in the new market. This would call for the company to make differentiated products that represent a better brand than those provided by the competitors. This is possible through distinctive branding, coloring, and unique packaging to serve as a mark of higher quality.

Finally, the firm can employ market entry barrier creation to stop potential competitors from entering the new market. This should be done through legal and fair means such as streamlining the production cost to manage low selling prices, high level of innovativeness that competitors may not afford to implement. Hence, the company remains a sole player in the market, reducing the alternatives available to customers.

In summary, the success of the innovative and delicious products from the company in the new market largely depends on the firm's techniques to market them and create an appropriate brand positioning at the point of entry.

References

Buckley, P. J., & Casson, M. C. (1998). Analyzing foreign market entry strategies: Extending the internalization approach. Journal of international business studies, 29(3), 539-561.

Ekanem, I. U. (2017). Diaspora entrepreneurship and international market entry strategies in the emerging economies: a learning process.