Saint mba565 final exam 2016

Question 1.1.Fresh Dog Treats is a newly developed company that is
focusing on catering to the premium pet market. Specifically, the company
is creating gourmet/organic grain-free fresh dog treats. While these
treats are similar to some treats offered on the market currently by such companies
as FreshPet, one of the biggest differences is the packaging approach.
One of the limitations to FreshPet products is the product must be refrigerated
in the store, which limits the number and types of retailers that will adopt
the product. Most stores do not want to put a refrigeration unit in the
middle of their pet food aisle.
Fresh Dog uses aseptic packaging that
only requires the product to be refrigerated after opening. This will
allow the product to be displayed in the normal pet aisle without the requirement
of the refrigeration unit. As the company progresses forward with this
product, there are several marketing issues that have not been resolved.
Your task is to assist them in this
decision-making process. Please respond to the following decision points
for the company:
a: Identify for this product a specific
target market group they should focus on. In your description of the
target market, you also need to address where you believe this group of
individuals would most likely purchase this type of dog treats.
b: After calculating the cost of goods sold, the
company has determined that the cost per 8 ounce bag of treats is approximately
$2.97. The company desires a 40 percent contribution margin on each
package sold. They also know that most wholesalers in this industry use a
32% mark-up and many retailers maintain a 25% mark-up as well. Following
this channel and based solely on the calculations, what will be the price that
the normal retailer will charge for the product? Reflecting on the
psychological aspects of pricing and specific pricing tactics theories, what
would your final price recommendation be? Support your answer. How
would the price vary based on a price elasticity of 0.3?
c: Design for the
company an appropriate promotional campaign for this product based upon your
described target market. Be specific in your discussion. Be sure to
address the influence of the brand will have on this component of the marketing
strategy.
d: Discuss how the
aspects of differentiation and positioning will impact the acceptance of this
product by the desired target market. What must the company consider in
terms of its products and the competitor products when entering the market?

e: Create a slogan for the business, less than 20 words, which captures the
essence of the brand. Explain your rationale for the slogan. Then show how it
should be incorporated within the brand image and integrated marketing
communication plan.