Product, Pricing, and Channels Paper

1997 Words8 Pages
Product, Pricing, and Channels Paper MKT/421 Product, Pricing, and Channels Paper The following paper reviews how the Magnolia Bakery, offers its products and services to a target markets that are considering fresh bread from the oven every day delivery at the customers’ doors, early in the morning, for family breakfast. This discussion reviews include several areas such as the product features and benefits; the phases of the product’s lifecycle; the packaging of the product; the pricing strategy, and the channels of distribution. Product Features Magnolia Bakery offers four new items on its already extended list of products. These are four different kinds of bread. The choices of bread were carefully chosen to offer…show more content…
Though some of these ideas may cost more than others, the ideas to draw the consumer in, so they will consume more product the appeal is one way to increase consumer traffic. One last way to increase value of the service would be to include a survey with the delivery; this survey could help critique the performance of the delivery driver as well as the quality of product. This kind of feedback can always help to improve the business and help make it better. Pricing Strategy Magnolia Bakery will need to implement a pricing strategy when launching its new delivery service. Magnolia should consider how much consumers, specifically in its target market segments, will be willing to spend for the value this service provides. Since this new service being offered gives Magnolia the capability to reach a greater number of customers, management should focus its strategy on attracting these new customers. This means Magnolia Bakery should take a sales-oriented approach to its pricing strategy, meaning a strategy with a goal of increasing sales by getting customers “in the door.” There are a couple of different ways this can be done. Magnolia could provide incentives for customers to start using its service through a limited time introductory offer, such as free delivery for the first 30 days. Magnolia could also offer discounts to existing customers in exchange for bringing in business from a friend, providing them with an incentive. Once it
Open Document