EOC: Week 10: What are the benefit vs the features

Benefits:

· New snack food that brings enjoyment to consumers

· Provides a new snack food that is outside the norm

· Not an everyday product

· The consumer will have choices and not be boxed into one size fits all

· Product can be purchased in Bulk at Big Box Stores

· Product can be purchased at specialty stores in smaller individual quantities

· Stays fresh longer due to unique packaging

Features:

· Crisp spicy chip

· Various flavors & variety

· Lower sodium offerings

· Individual Snack size

· Size Large family size bags

Creative Content

A man and his pet Cobra were sitting inside a bar in Egypt. The man would be talking with friends about an adventure he had just went on. The scene would turn from a friendly surrounding to two men into an all-out bar brawl. The fight would have started because one of the men call Phelia's a liar. There's know way he could have killed all the snakes at the Tomb shouted one man, another sitting in the rear of the bar just looked on, but he was listening intensely while munching on a bag of chips, snake skin chips to be exact. As the argument heated up several others surrounded Phelia and said it’s because of your kind and your comments that tourists are afraid of visiting the Valley of Kings, and this is how we make our money off of tourists. You need to stop telling that story and stop now. Phelia stood up, pushed his chair back from where he and his friends were earlier having a conversation about his latest adventure and said “if I don’t stop telling the story who will stop me?” as he stood the circle of men who had just been fighting tightened up around Phelia. All of a sudden one of the men lifted a large stick above his head as if he were going to the strike Phelia to substantiate his point about Phelia keeping his mouth shut, when from the back of the room the stranger who was looking on shouted, “he’s right” that’s exactly what happened because my half-brother an Egyptian Nubian was the one who came to Phelia’s rescue while surrounded by the den of cobra’s in the tomb which was located in the Valley of Kings and my brother is the one who took Phelia back to the village where he discovered that the snake skins were used to make chips, so you see Phelia is not a liar and his story is legendary. So tourists have no need to worry the site has now been marked properly and visitors can no longer go into that chamber which has now been resealed. Now let Phelia and his companions enjoy their libations and you over there go about your business. Phelia and his friends gave toast to the stranger who sat in the corner in the dark and as a glimmer of light shown in his direction

Price

 In pricing Phileas’ Snake Skin Chips the pricing will take into account where the Chips will be sold. If the Chips are sold individual wrapped snack size then the pricing will be slightly higher than if the product is bought in one of the Big Box Stores, i.e. Costco, Sam’s Club where the product will be sold in bulk. “Today’s squeezed consumers are seeking greater value—just the right combination of good quality and service at a fair price. The distribution of income also is shifting. The rich have grown richer, the middle class has shrunk, and the poor have remained poor, leading to a two-tiered market”. (Pg. 95) Pricing of the snack food will take into account how the display of the product will occur and where the product will be sold.  World Market selling Phileas’ Snake Skin Chips will sell the chips at a higher price point that those who go to the big box stores and buy in bulk.  “Although costs are an important consideration in setting prices, cost-based pricing is often product driven. The company designs what it considers to be a good product, adds up the costs of making the product, and sets a price that covers costs plus a target profit. Marketing must then convince buyers that the product’s value at that price justifies its purchase. If the price turns out to be too high, the company must settle for lower markups or lower sales, both resulting in disappointing profits. Value-based pricing reverses this process. The company first assesses customer needs and value perceptions. It then sets its target price based on customer perceptions of value.” (Pg. 276) Buying in bulk generates a lower price point that buying items in individual snack size portions, so the advantage will go to the shopper who is price contentious and who may even be buying for a local coop where families who pull their purchasing power together are more apt to buy based products based on emotion and where they believe there is cost savings.  Phileas’ Snake Skin Chips found at the World Market, or Whole Foods will priced higher than those the Snake Chips found in the Big Box Stores.

Promotion

Promoting Phileas’ Snake Skin Chips begins with comparing the quality, taste, and packaging with other competitors in the market place.  Phileas’ Snake Skin Chips will go head to head where the competition resides, going where they are least expected to show up.   “Why do producers give some of the selling job to channel partners? After all, doing so means giving up some control over how and to whom they sell their products. Producers use intermediaries because they create greater efficiency in making goods available to target markets. Through their contacts, experience, specialization, and scale of operation, intermediaries usually offer the firm more than it can achieve on its own.” (Pg. 312)  Promoting Phileas’ will also include a multi prong approach, from Guerilla promoting tactics (sandwich board sidewalk hawking) to tactics where the chips are offered as a “taste test” in the Big Box Stores on Saturday afternoon.  Phileas” will promote the chips during an awards banquet and offering a sample of the chips in gift bags that are given out at the show to attendees, coupons will be added to the bags driving the consumer to purchase more, purchase can then be tracked back with the coupon code to actually see who like the chips enough to buy more.  Then you go for the big gusto and you adopt a new way of promoting by using the newest onramp for direct marketing, using a mail piece that has an irresistible offer that is coupled with radio, newspaper ads and billboard promotions, thus using media choices that have a range using different market demographics.  “Vertical Marketing Systems For the channel as a whole to perform well, each channel member’s role must be specified and channel conflict must be managed.” (Pg. 315)  Using an agency that can support these various promotion plans will be the way Phileas’ Snake Skin Chips will be able to saturate the marketplace.

Distribution

Phileas’ Snake Skin Chips will use a logistics company that can hold, pick and ship their product for a negotiated price.  Having another company such as UPS provide a bundled freight package and take on the cost of moving the product will be easy onboarding getting the Snake Skin Chips to market quickly.

“Thus, UPS does more than just ship packages for its business customers. It develops entire solutions to customers’ transportation and logistics problems. For example, UPS bundles a complete system of services that support Nikon’s consumer products supply chain—including logistics, transportation, freight, and customs brokerage services—into one smooth-running system.” (Pg. 162) Using UPS or a similar vendor will take the work out of trying to piece together a delivery network from scratch; it will eliminate the need for putting together a team for the various functions which UPS already has in place. “Companies often pay too little attention to their distribution channels, sometimes with damaging results. In contrast, many companies have used imaginative distribution systems to gain a competitive advantage.” (Pg. 312)  Phileas’ will even have UPS pick the product from the manufacture and then place the product into the shipping stream while also doing the delivery.  As Phileas’ Snake Skin Chips grows in popularity then the contract with UPS can be modified and UPS can then affect the delivery for the Chip maker instead of working the entire Distribution Channel.

 

Product

Phileas’ Snake Skin chips will offer a product that stands out amongst the rest, the value of the product is precious because it has been created from a remote part of the world where few have been known to travel.  The mere chance of purchasing the chips will make you one of the precious few in the world to experience the delectable treat. “Product is a key element in the overall market offering. Marketing-mix planning begins with building an offering that brings value to target customers. This offering becomes the basis upon which the company builds profitable customer relationships.”  (Pg.209).  This spicy, tangy, sweet experience will leave you wanting more, just like Chipsy Egypt (Lay’s) I’ll bet you can’t eat just one. Phileas’ chips will jolt you back to the days of travel the taste will bite into your sole and have you reminiscing of Phileas’ thoughts when he was trapped in the tomb with the cobra’s nipping at the site of him.  Exciting, adventurous, the taste and the WOW factor don’t get any better.  Serving this delectably unique chip to your guests will have you the King or Queen of party snack favorites. “Today, as products and services become more commoditized, many companies are moving to a new level in creating value for their customers. To differentiate their offers, beyond simply making products and delivering services, they are creating and managing customer experiences with their brands or company.”  (Pg.209) Phelia’s Snack Skin chips will take you on a magic ride that puts you right in the action, whether it’s defending your position or exploring new things with family and friends, don’t miss out on this exciting new snack. Worried about your waist line, don’t, just cover yourself like an Egyptian King in a shroud that is sure to feel comfortable after eating a bag full of Phileas’ Snake Skin Chips.

Target Market Strategy

Phileas’ Snake Skin Chips concerns for their market are no different than the next provider of “fun treats” dietary trends have been leaning toward healthier eating.  “Top marketers all share a common goal: putting the consumer at the heart of marketing. Today’s marketing is all about creating customer value and building profitable customer relationships.” (Preface xxii)  Customers who are adventurous are the segment of the population that Phileas’ chips will be marketed to.    With a bent on creating a healthful adventuresome snack Phileas’ Chips will work toward reducing the fat content.  In reducing the fat content but maintaining the flavor we can still attract all those who enjoy adventure, an option that is fun to share with friends and seems exotic enough that even the toughest of guys and gals can enjoy these chips.  Some of the latest trend has been to market towards men, Phileas’ Snake Skin Chips will market to the entire consumer base and then Phileas’ will let the “Chips” fall where they may. “It starts with understanding consumer needs and wants, deciding which target markets the organization can serve best, and developing a compelling value proposition by which the organization can attract, keep, and grow targeted consumers.” (Preface xxii) Phileas’ will bring in consumers from a local community, carefully choosing a group of consumers from and around a nearby College, this will provide a cross section of the community, jocks, sports enthusiasts, well-traveled intellects, men, women, children and foreign exchange students, the focus group will help Phileas’ to narrow their focus on how well the chips were received by the various groups within the marketplace.  Once this is complete then a promotion can be developed with the targeted group in mind.