Answer to Question #270956 in Management for Cheena

Question

Parle Agro makes its entry into the dairy segment with a premium and high-quality range of flavored milk products, 'SMOODH'. With disruption inborn in the brand's philosophy, SMOODH becomes the only flavored milk beverage in the global market to be available in 85 ml Tetra Paks and priced at only ₹10. Suggest a suitable promotion mix for the new launch.

Answer 1

Although SMOODH is the only flavored milk product globally, Parle Agro can only achieve intended sales by communicating the product to potential buyers. As such, the company needs to develop an appropriate promotional mix for the product. This serves to capture the attention of consumers, educate them about the product and influence them into buying the brand. The key elements that can be adopted in the mix include advertising, sales promotions, public relations and direct marketing. Based on these approaches the product acceptance in the market will succeed if the message about the product is compelling and captures the beneficial aspects of the product. For instance, the company should focus on pricing of the product if the target market cares more about saving money. Moreover, the company should choose an appropriate mode of communication to effectively reach potential consumers. Apart from advertisements, sales promotions ensure the product gains acceptance through displays, in store demonstrations and incentives on prices such as discounts on first purchase. Similarly, public relation approaches foster a positive image of the product with the intention of increasing sales. This approach may entail the company sponsoring special campaigns and charitable events. Finally, direct marketing which entails the company approaching target customers directly helps would help increase sales. This model may entail the milk product being taken to schools and children events as a mode of promotion.