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Branding, Pricing And Distribution Essay

1289 words - 6 pages

Branding, Pricing and Distribution

The current century has performed a deep interest towards the innovation in the quality and overall performance in food processing industry. Innovation has acquired a stimulating function in positive changes due to new technologies and implementation of innovative manufacturing sites. Technological innovation in food industry requires the use of natural “green” raw and optimal package for both long-term and safe storage. Frito-Lay`s Inc. is ready to launch a new product within its dip line – a vegetable dip. The most vivid issues of the company’s dip line presentation include a tight focus on the original taste, since this segment of the ...view middle of the document...

Our target market includes people with an average income and different food flavors, thus, the brand strategy includes development of the range of tastes, oriented on different cuisines, including American, Italian, Mexican and African elements – in other words, ethnical differentiation will be applied in accordance with the distribution region. Besides, it includes the researched in dietary food for people, suffering from digestive tract diseases, widening our potential buying audience, as the statistics shows the increase of sick people worldwide.
Pricing strategy development is also based on regional differentiation. The company has already conquered its domestic niche market and settled appropriate prices. Vegetable dip will be launched as an innovative “green” product, thus, the price will be 10% higher than the other products of the dip range, but at least 2-5% cheaper than the same products of its competitors, according to an ”average cost principle” – the buyer always picks medium price while making a choice between three identical alternatives. Besides, this strategy is likely to have success due to no need in research for potential buyers – the foods market is fed up, thus, it would be more appropriate and beneficial to apply psychological techniques for efficient pricing strategy establishment for the company. When it comes to global pricing strategy, penetration price should be applied. Taking into account the relatively low bargain power of potential buyers in Egypt, the price should be fixed for at least a year in order to remain competitive in the conditions of aggressive price competition in the field of food industry. The major goal is to make the price reasonable due to the high quality of the product, and attraction of an audience due to an attractive design and optimal terms of storage. Such pricing policy meets the main issues of the branding strategy, which aims to conquer the potential domestic and global target markets on a long-term basis, meeting the demands of different ethnic and financially collateralized groups of buyers.
Distribution strategy of vegetable dip includes the following activities: negotiations with the largest US hypermarkets, like Wal-Mart, Target, and Save Mart. Besides, the sales department decided to pay attention to the newly joined members of retail supermarket chain – Demoulas Market Basket and Ingles Market, whose rankings in the list of supermarkets in 2011 249 and 237 respectively. In Egypt, the cooperation with Egypt’s largest supermarket chain, metro operating under Mansour Holding Company for Financial Investment’s subsidiary company Metro Markets for Trading and Distribution, The Kheir Zaman discount grocery store chain, Carrefour supermarket should be established. Online distribution strategy includes distribution via, official website,, Twitter, etc. Retail stores distribution activity undertakes cooperating with household stores, culinary stores and...

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