What positioning should the new owners of Crescent Pure pursue?
A new product called Crescent Pure faces a positioning challenge as it has several properties that fit different marketing parameters. Some product characteristics can spread with the help of advertising tonic effect, and others with the help of organic ingredients. A company should stick to positioning a product for athletes because, in this case, both properties can be combined. Moreover, the tonic effect and organicity are equally well suited for advertising as a sports product.
Why have you recommended this positioning and what are the drawbacks?
This approach was chosen to position the new product, as it can combine both valuable characteristics. The new drink has properties that align with the latest health food trends, such as organicity and hydration. These parameters are well suited for creating a product promotion campaign for people who lead healthy lifestyles and play sports. However, the second property does not contradict the first because it is tonic. Thus, the most competent decision for the company would be to create a promotion as a sports product, but without ignoring the product’s second valuable and effective action.
Thus, combining the two factors allows for reaching a wider audience of potential buyers. Positioning through sports people can also attract new interested customers to buy a drink. This strategy differs because it does not have weaknesses, such as not mentioning one of the product qualities. The entire disclosure of functional organic, moisturizing, and tonic properties will allow creating of a more creative campaign that will combine all available methods of influencing the audience. This position differs from the other two in that it allows specifically advertising the product for a specific category of buyers. A potential disadvantage of this promotion strategy may be too much dispersion of the audience’s attention. It will take a good advertising plan to direct people to a holistic product with all its valuable properties.
How will you implement your chosen positioning and what are the drawbacks?
The chosen positioning requires properly researching the product components and competitors’ approaches. The first P should mean advertising the product and presenting its main advantages over competitors. As stated above, athlete targeting will be the only way to advertise the drink. In this regard, it will be correct to talk about its beneficial properties and how it can help with sports. The second P means the price; in this case, the product’s cost should be calculated considering that it must concern the purchase goal. Distributors can usually mark up their markup based on how well the product sells. With the size of this difference, the price can be reduced for wholesale buyers so that the absolute difference with competitors is not significant. Given the failed experiments with previously launched premium products and limited manufacturing capability, the price should be quoted at $1.40 per can for bulk purchases.
The third P means where the drink is sold, which should become a distribution network. Opening points of sale, as well as organizing a website, will require additional investments. The fourth P means promotion that will take place through advertising the product as a drink for athletes. This strategy has been discussed above and has the advantage that almost all products in the sports drink market are inferior to Crescent in other respects.