According to Rhim and Cooper (2005), a business should have specific target customers to survive the impacts of competition. The customers should be further classified as low and upper economic ends to design different strategies that are specific and customer-oriented (Rhim and Cooper 163).
A new business should explore the essential marketing tools that include product features and benefits, product differentiation, pricing, distribution, and advertising. The products should be of the highest quality and yet still very affordable. Moreover, the authors opine that the penetration pricing strategy should be employed by a business in order to break into the new market. The main objective of the penetration pricing strategy is to attract and increase the market share of the product. Therefore, applying the penetration pricing strategy requires that a business reduces the prices to an absolute minimum in order to attract customers. However, this price may be increased once the management is satisfied that the objective has been attained (Rhim and Cooper 167).
Application in the case of the Hun Chinese Restaurant
Same as suggested by Rhim and Cooper (2005), the distribution channel for the Hun Chinese Restaurant will involve the use of a pickup truck to collect different ingredients in the menu and deliver any particular order placed by a customer. Besides, the business will contract private individuals to do deliveries to customers who place orders when the truck is not available.
The Hun Chinese Restaurant will use social media, local newspapers, local business magazines, and mobile advertising vans to cover the targeted market. These media channels are effective since most of the target customers have access to them. Besides, these forms of media are affordable and sustainable in terms of the long term advertisement strategy (Rhim and Cooper 169).
Works Cited
Rhim, Hosus, and Cooper Lee. “Assessing potential threats to incumbent brands: new product positioning under price competition in a multi-segmented market.” International Journal of Research in Marketing, 22.1 (2005): 159-182. Print.