Mochalicious: Branding, Pricing, and Distribution

Mochalicious: Branding, Pricing, And Distribution Marketing Plan

The objective of this study is to create the domestic and global product branding strategy for Mochalicious coffee and to determine and detail the optimum pricing strategy. This study will examine how pricing strategy supports branding strategy and prepare a distribution channel analysis that identifies the wholesaler, distributors and retailer relationships including any e-Commerce. This study will also discuss a push or pull strategy and justify the rationale. Finally, this study will discuss how the distribution strategy fits the product / service, target market, and overall marketing strategy for the company.

Domestic and Global Product Branding Strategy

The work of Cooper (2010) reports that there is an emergence of a new generation of global brands. It is reported that a rigid corporate structure in the past was a primary element of the global brand and that local markets were in charge of developing their own brands." Stated as an important element in making sure of a brand culture that is consistent. Marketing initiative should be borderless because "digital doesn't respect borders, particularly now with social media." (Cooper, 2010) it is reported that brands that fail to adopt a borderless approach "risk becoming marginalized." (Cooper, 2010) Brands such as Coca-Cola, Adidas, Nike, and McDonalds' are reported to be everywhere and to have "local strength and identity, but also consistency across markets." (Cooper, 2010) the marketing focus for global brands has shifted from "division to cohesion." (Cooper, 2010) Global branding benefits can be realized through economies of scales, lower market costs, and laying the foundation for global extension in the future. (Cooper, 2010, paraphrased) Additionally integration of innovations will serve to create a strong local and global brand. (Cooper, 2010, paraphrased) Increasing international media reach using the Internet, as an enabler as well as increases of international media reach will serve to strengthen the brand. It is reported that the company has a better likelihood of leveraging a single brand globally is that company is already operating globally and the brand is 'an extension of the owner and his personality; and the brand's relationship to its country of origin creates positive associations. (Cooper, 2010) Constraints on global brands include: (1) the corporate brand; (2) the brand identity system; and (3) the brand essence. (Cooper, 2010) Global brand variables include: (1) the corporate slogan; (2) the products and services; and (3) names of the products. (Cooper, 2010)

II. Pricing Strategy in Support of Branding Strategy

Pricing strategy should be such that supports branding strategy. The following equation can be utilized in calculating the image for the pricing strategy:

(1) Cost and profit objectives: begin with overhead costs and goals for profits and work back from there;

(2) Demand: What is the market price and what values and benefits are perceived by customers in the product and how willing are customer to pay for the product?

(3) Competition: How many similar products and competitors are in the market and what is their price structure?

Pricing through use of hourly increments is such that punishes efficiency. (VanAucken, 2013)

Pricing needs to be reflective of the value provided vs. that provided by competitors and should match what the market will actually pay. Pricing needs to support the brand and enable the company to realize their revenue and market share goals as well as maximize their profits. (VanAucken, 2013)

III. Distribution Channel Analysis Identifying Wholesalers, Distributors, Retailers, and e-Commerce

Single or multiple channels of distribution can be utilized including the direct channel of the Internet using the company's e-Commerce website as well as the direct channel of sales teams. Multiple teams that specialize in different products of customer segments may also be utilized. Direct channels include catalogue sales and retail sales as well as the use of a wholesaler or distributor, which is described as a company "that buys products in bulk from many manufacturers and then resells in smaller volumes to retailers. The Value-Added reseller will work with end-users to make provision of custom solutions that including "multiple products and services from different manufacturers." (VanAucken, 2013) a consultant can be used to develop relationshi8ps with companies and make provision of various services types. A dealer may purchase inventory from a manufacturer or distributor and then resell is to an end-user. Finally, the sales agent or manufacturer's representative can outsource the sales function to a company selling various products of the manufacturer to a group of customer is a specific territory. (VanAucken, 2013)

IV. Push or Pull Strategy and Rationale

This study has chosen the push strategy, which involves targeting the product to the customer. Stated as examples of push tactics are the following;

( 1) Trade show promotions to encourage retailer demand

( 2) Direct selling to customers in showrooms or face-to-face

( 3) Negotiation with retailers to stock your product

( 4) Efficient supply chain allowing retailers an efficient supply

( 5) Packaging design to encourage purchase

( 6) Point of sale displays. (Marketing Made Simple, 2013)

The term 'push strategy' is reported to describe the work "…a manufacturer of a product needs to perform to get the product to the customer. This may involve setting up distribution channels and persuading intermediaries and retailers to stock the product. The push technique can work particularly well for lower value items such as fast moving consumer goods (FMCGs), when customers are standing at the shelf ready to drop an item into their baskets and are ready to make their decision on the spot. This term now broadly encompasses most direct promotional techniques such as encouraging retailers to stock your product, designing point of sale materials or even selling face-to-face. New businesses often adopt a push strategy for their products in order to generate exposure and a retail channel." (VanAucken, 2013) Following establishment of the brand, this can be integrated with a pull strategy. (VanAucken, 2013, paraphrased)