Introducing new products is essential to a business’s growth and success. To stay competitive and successful, companies must be aware of consumer demand and willingness to pay for their products (Kahn, 2018). This is especially true for seasonal items like the new special fall drink. After collecting data from potential consumers, it is clear that a tiny group of consumers are willing to pay for this new special fall drink. This paper analyzes the reasons behind this lack of willingness to pay and proposes solutions for the company to increase consumer demand for this product.
One of the main reasons behind the lack of willingness to pay for the new special fall drink is the lack of knowledge about the product. Consumers are not aware of the product and its benefits (Hair et al., 2021). To increase demand, the company should focus on marketing the product by implementing a comprehensive marketing plan that involves using social media platforms, advertising on television, and involving written channels such as magazines. As a result, this can help to increase awareness among potential consumers and create a desire for the product.
The research findings also show that many customers cannot afford the product. The company should focus on creating a positive customer experience to counter this. This can be done by providing excellent customer service and creating a pleasant shopping experience (Fisher & Kordupleski, 2019). Additionally, the company should focus on building relationships with its customers and providing incentives for them to purchase the product. This can help to create loyalty and increase demand.
In conclusion, the company should focus on understanding the reasons behind the lack of willingness to pay for their new special fall drink by understanding the consumers and creating a product that they can afford. Additionally, Starbucks should implement a comprehensive marketing strategy to increase the demand for its product. The strategy should incorporate product promotion strategies such as print media and advertisement on the television.
References
Fisher, N. I., & Kordupleski, R. E. (2019). Good and bad market research: A critical review of Net Promoter Score. Applied Stochastic Models in Business and Industry, 35(1), 138-151. Web.
Hair, J. F., Ortinau, D., & Harrison, D. E. (2021). Essentials of Marketing Research (5th ed). McGraw-Hill.
Kahn, K. B. (2018). Understanding innovation. Business Horizons, 61(3), 453-460. Web.