Yummy O's: Promotion And Pricing Strategies

Promotion and Pricing Strategies – Part 3 The cereal brand Yummy O’s is a few steps closer to becoming a product of its own in the cereal market. Much of the strategies regarding target market, packaging, branding, and placement has been discussed and configured accordingly. The strategies that are left to define are the promotion and pricing strategies. There are many factors to take into consideration before a pricing strategy can be determined. This will include competition, costs, company objectives, customers, and channel members. Then the promotional strategies can be determined by the pricing strategies have been implemented. Looking at the Five C’s of the pricing, the company’s objective for producing Yummy O’s will most likely be

The reason being is that since Yummy O’s is a new cereal product entering the market, there are already other existing competitors such as Kellogg’s. Those competitors are more established cereal products than Yummy O’s is. Knowing this, the pricing penetration can be used as the tactic for pricing the Yummy O’s cereal. According to Grewal & Levy (2018), the concept of price penetration is to set prices low to introduce the product and generate sales of the product immediately. Observing the demand curve, a low price of a cereal product can emit a high quantity of demand for the cereal product. Also, with the entry of Yummy O’s, it can act as a substitute for many consumers, mainly adults and kids, as it is a healthy cereal with a low price. The average prices of cereal are around $2.50 to $2.90 or more depending on the size of the cereal and the

The steps involve identifying the target market, identifying advertisement goal, determining the budget, conveying the message to consumers, choose media, create an advertisement, and evaluate the results. The primary target market is going to be mainly children between the ages of three to six while the adults are the secondary target market. The goal of the advertisement is to generate sales of Yummy O’s in the retail stores and have retail stores increase their purchases of Yummy O’s if demand increases in the market. Social media can be very helpful as it aids with brand awareness (Bowden, 2016). With the growing use of social media, social media can be the medium used to advertise and promote Yummy O’s. According to research, about 68 percent of adults in America are Facebook users (Smith & Anderson, 2018). Creating a Facebook page can help promote Yummy O’s. With Facebook, we can help the consumer base be kept up-to-date with the cereal product and any questions or information needed will be provided there as well. Facebook ads can also be implemented through Facebook’s advertising services. The budget for advertising on Facebook can be set at around $400 as a lifetime budget for about three months. The advertisement will be a photo of a family sitting around a table with the cereal product on the table. The family of two parents and three kids will be eating the cereal happily. There