Entry Strategies:
Mrs K was the sole manufacturer of dairy products when she entered the market. She had no competition and produced premium products thus her initial pricing was relatively high, her aim was to receive the maximum profits available in the market. (C.W. Lamb, J.F.Hair & HB Klopper: pg 42-43)
More Milk became Mrs K’s first competitor but charged more than Mrs K. More Milk embarked on a journey of product differentiation through extensive marketing and development. More Milk aimed at creating customer loyalty and familiarity of their products. This would in the long run decrease their costs and increase profits because customers could’ve been familiar with their products and their revenue would grow. The customers would also make
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The retailers buy the products in bulk and sell Mrs K’s Premium Diary’s products to the end-consumers.
Recommendations
The main objective of using the Marketing Mix, is to help a firm face the highly competitive market. To make the marketing mix effective, the firm should do research and development, on whom, where and how much to sell.
Product – More Milk needs to finds means to differentiate their product. The bases available are product features, services, image and personnel. For example, More Milk could establish their brand as an eco-friendly (societal marketing orientation), where they sell organic milk rather than regular milk. This will result in an increase of sales, and establish a good image for More Milk
Price – More Milk has agreed with the other firms that they will charge the same price. So, they should argue that they offer the best milk in the market. They should convince the customer that they are getting more value for less. For example, their slogan could be “Pay less, For More