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Dairy Queen is an organization that develops services and licenses. It’s based in Minneapolis, Minnesota. The blizzard was made available in the organization in 1985. Given its coldness, the blizzard is used during summer. Some of the challenges that the organization has encountered include lack of satisfaction in products and services, lack of matching between the price and the quality, unavailability of the products during when clients need them.
Based on this, Dairy Queen has to conduct an analysis of its distribution and pricing strategies and devise an effective marketing portfolio. This will enable it establish a competitive advantage that will, in the long-run increase the sales volume. This can be achieved through several marketing strategies. They include product differentiation, cost leadership, pricing and distribution strategy and integrated marketing communication. This paper comprehensively covers this marketing portfolio.
Product differentiation is used to achieve competitive advantage. This is done by demonstrating to the customers how product availability, design, price, promotion activities and quality are unique from others present in the market. It minimizes directness of competition by shifting competition to non-price factors.
It also makes prospective customers to see the product as being unique from the rest (Armstrong & Kotler, 2009). Given the increased competition in the fast-food market, Dairy Queen should produce blizzards that have distinctive and new flavors that will attract the customers’ attention.
This entails developing a low cost of operation so as to achieve a competitive advantage with respect to price. In doing this, products produced should standard. Dairy Queen should produce blizzards at a lower cost of production and still make their prices competitive.
Pricing and distribution strategy
Pricing strategy entails arriving at optimum price levels by regarding various factors such as competitors’ price, general objectives, product traits, macroeconomic trends and consumer demands. On the other hand, distribution strategy involves coordinating products to the required market.
It is about choice of distributors, distribution channel structures and the determiners of choice and management of distribution channels (Kaminsky, 2003).
Dairy Queen uses seasonal discount as its pricing strategy. This attracts more customers due to the satisfaction derived from the products. They also use promotional pricing, which involves discounts, vouchers, pay later and offers. Quantity discounts are also given encouraging customers to make purchases in large quantities. This result to increase in sales volume (Ferrell, 2008).
Value pricing should be used to achieve this. Setting of prices should not be done once but should be ongoing. Dairy Queen should be conversant with the problems that may arise due to inadequate pricing plans and devise measures to correct the situation.
To ensure that their prices are available at the right time, Dairy Queen should not only increase their distribution channels, but also ensure quality management of the channels.
Integrated Marketing Communication
This involves management of customer relations by communicating efficiently. It ensures integration of all promotion tools so as to enhance peaceful working relationships between stakeholders and customers. To be able to reach numerous audience and customers in the marketing of blizzard, several communication techniques ought to be employed.
Use of magazines and newspapers will ensure that many people get to know about the product in details. Also, internet advertising, especially through social networking media will reach many people.
In promoting the product (blizzards), four out of the five tools of a marketing mix should be used (Armstrong & Kotler, 2009). They include public relations, advertising, direct marketing and sales promotion. Through advertising, a good relationship can be enhanced between the products and customers.
Public relations can be achieved through sponsoring public events which will be attended by the target groups. Sales promotion can also be used during these events to help boost the product performance.
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Armstrong, G., & Kotler, P. (2009). Marketing: an introduction (9th Ed.). Upper Saddle River: Pearson Education Inc.
Ferrell, O. (2008). Marketing strategy. New York, NY: Cengage Learning.
Kaminsky, P. (2003). Designing and managing the supply chain: concepts, strategies, and case studies. New York, NY: McGraw Hill Professional.