New Product Portfolio

Introduction

Product portfolio refers to a set of products that a company produces. It can be in the form of product lines, families. A number of companies usually have a portfolio of the products that they produce. The product portfolio consists of distinct product groups. This paper explores the portfolio of a new product, 4-U (a fictional product) manufactured by Always Fresh Company which is also a fictional company. 4-U is a highly fragrant perfume that is yet to be launched into the United Arab Emirates market. Its target market is young ladies and women in the United Arab Emirates.

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The Product (4-U)

Luxury companies in the United Arab Emirates are realizing tremendous growth in the sales of perfumes in each year. Perfumes enjoy duty free sales in the United Arab Emirates thus presents a more lucrative opportunity for growth and development in the business of health and beauty. The United Arab Emirates has a booming economy with high standards of living which indicates potential growth in the market of perfumes. It has high Gross Domestic Product which provide leverage for high sales because most people are willing to buy luxury. The most important factor that influenced the choice of 4-U as the brand to launch in the market basically rely on the culture of the people that would form the major target market of the product.

Most of the manufacturers supplying perfumes in the United Arab Emirates are western companies. Only a few manufacturers hail from the country. As a company based in the country, the product is likely to be cheaper than the existing imported and home made perfumes while at the same time providing the consumer with a felling of a run for their money.

The population United Arab Emirates is highly Islamic. Perfumes are known to be highly valued in the cultures of Arabs. Therefore, with increasing population and evolution of the consumer preference where most customers prefer products of high quality, 4-U as a new product is certainly anticipated to take the health and beauty industry by storm. 4-U perfume is a new fragrance that is manufactured to suit consumer needs. It is specifically meant for women with intentions of extending the brand to cover men’s colon in future.

A good brand name should be unique, appropriate, simple, appealing, long-lasting, legal, and flexible and should fit within the company’s portfolio (Sahaf 2008). The brand name, 4-U proves to be the most appealing brand name because it easily identifies with the customers and is easy to memorize. It creates a sense of belonging in the consumers because it makes the consumers feel like the product was specifically made for him. It brings out the picture of tailoring the needs of the consumers in the product. The simplicity of the brand name and its uniqueness provide a suitable ground for positioning of the product. The choice of the brand name of the perfume was specific to the product to create room for diversity in the future lines of operation of the company. Different companies have different reasons for using individual brand name strategies (Vashisht 2005). In product planning and management, there are three basic levels of a product namely: the Core product, actual and augmented product (Nwankwo & Gbadamosi 2011).

Core 4-U the most effective and convenient perfume of all times. It makes you feel fresh, mild on with skin and has a cooling effect. The product is approved by health professionals and is friendly to the skin thus is the most convenient. Only a single spray of 4-U perfume lasts the whole day making it the most economical perfume of all seasons.

Augmented- 4-U is a cheap perfume that takes variable needs of the consumer into consideration. It is packed in bottles of varying volumes to suit the needs of the consumers with soft sprays that respond immediately when pressed. The product has a medical cover scheme for customers who might develop skin reaction when they use the product within the first one week of purchase. For wholesale and retail customers, the company will give trade and cash discounts depending on the quantity bought of the product and how prompt the customer pays his bill. After sale services ensure satisfaction of the consumers and creates brand loyalty (Hunter & Tan 2004).

Promotion

Product promotion is an important function in the creation of the product awareness. It plays a vital role in the life cycle of a product (Picard 2005). Always Fresh Cosmetics Company is located in an area rich in the most valuable perfume ingredient. 4-U perfume contains Oudh obtained from Aquilaria trees. Argarwood is a very pleasant fragrance held high by most perfume consumers. Besides, 4-U is also made of natural fluids from various sweet smelling flowers. The pictures in the mood board illustrate the various packages of the product, some of the components of the perfume like floral parts used in its manufacture and other fashion and wedding garments that would not be complete without a scent of 4-U to compliment everything. The choice of the items is likely to appeal most to the target market.

Promotional Campaign for 4-U

The media is very crucial part of launching a new product. It is the means through which the consumer gets to know about the existence of a product in the market. Media has a very strong influence on product positioning. When choosing an advertisement media, the marketer should go for one that is likely to reach a greater proportion of the target market (Kelley & Jugenheimer 2008).

The company will use televisions, news papers, new letters and various social networking sites such as facebook, you tube, my space.com, twitter, friendster, linkedIn and many other sites. The current global market environment has changed with much of advertising done on social networking sites. Social networks bring people with same interests together. Most of the consumers intensively use the internet thus making it an ideal place to advertise products.

Social media can allow for access to the product at all times and orders can be executed by the customers at their will even when they are at home or workplace without necessarily having to find the product outlets. It also offers an interactive session with the customers who can leave their comments and suggestions about the product. This is a potential advantage in improving the product to suit more to the customer demands. The customer is able to read and learn more about the product and event seek for demonstration on how it is used through youtube videos of 4-U.

The company will also use television and radio to reach the target market. Television will offer an explanation of what the product is and demonstrate its effectiveness in a manner more appealing to the customers. Radio will be used too to back up coverage of the entire target market. The product will also be printed in magazines and news letters of health and beauty.

Pricing and Distribution

Pricing is basically setting a suitable price for a product that covers all the costs incurred in its manufacturing process. Pricing as a positioning strategy can be useful for the success of the product and at the same time be deadly. Setting to a price level that existing suppliers of the same product will respond to in a negative way such as lowering their prices is unhealthy especially for a new product because the price war will certainly eat away its undeveloped market share (Baker, Marn & Zawada 2010).

The pricing of 4-U will be based on a cost-plus basis where a desirable percentage markup will be added to the total costs incurred. The pricing is expected to be slightly below the competitors’ prices so as not to attract price wars with established competitors in the market. The lower pricing strategy is to enable the product penetrate the market without much problems (Bowhill 2008). The company will use penetrative pricing strategy because the United Arab Emirate perfume industry is a highly competitive industry and thus the company must use an appropriate strategy to gain a considerable market share on the product (4-U) launch.

Distribution n as an element of marketing mix is a very crucial activity in launching a new product. Distribution strategy is concerned with delivering the product of the company to the intended market. Strategic distribution decisions entail marketing activities that ensures the correct product is delivered to the target customers at the right time and correct place. Distribution of any specific product is composed of channels that the product follows from the producer until it reaches the customers. Distribution channels are the paths that the product takes to get to its intended destination. To gain a large market share, a manufacturer must have good distribution network (Porter 2004).

There are many players in the perfume industry in the United Arab Emirates. The industry has many distributors with numerous suppliers of products. The marketing strategy for 4-U will include the use of sales representatives in all the emirates, distribute to wholesalers and small and large retail outlets like malls. The company will also run its own showroom for 4-U in major markets such as Dubai and Abu Dhabi. To make a difference, the product can also be purchased directly from the company website where a customer can place orders and wait for the delivery of the product as directed. Longer channels of distribution result into high cost of the product to the consumer.

 

Diagrammatic Presentation

Manufacturer                Consumers

Manufacturer                     Company retail outlets                  Consumers   Manufacturer          Sales representatives          Wholesalers           Retailers             Consumers

Manufacturer         Distributors            Suppliers        Wholesalers       Retailers     Consumers

Manufacturer         Distributors        Retailers            Consumers

 

The company will use rail and road transport for the local markets. The choice of these modes of ferrying the production to the market is to be cost effective. The method of transport used to deliver products to the market also reflects of the final consumer price. The company will thus use the cheapest and most convenient mode to deliver the perfume to the market (Rushton, Croucher & Baker 2010).

The distribution of the product will first take the approach of selective distribution on its launch and then later, with increases in production capacity, the company will use several distribution agencies and sale representatives to ensure that the product is available in the entire target markets at all times (Lamb, Hair &  McDaniel 2011).

 

 

Bibliography

Baker, WL, Marn, MV & Zawada, CC 2010, “The Price Advantage,” John Wiley & Sons inc., Hoboken, N.J.

Bowhill, B 2008, “Business Planning and Control: Integrating Accounting, Strategy, and People,” John Wiley & Sons, Hoboken, NJ.

Hunter, MG & Tan, FB 2004, “Advanced topics in global information management, Volume 3,” Idea Group Publishing, Hershey PA.

Kelley, LD & Jugenheimer, DW 2008, “Advertising media planning: a brand management approach,” M.E. Sharpe, Armonk, N.Y.

Lamb, CW, Hair, JF & McDaniel, C 2011, “Essentials of Marketing,” South-Western Cengage Learning, Mason, Ohio.

Nwankwo, S & Gbadamosi, T 2011, “Entrepreneurship Marketing: Principles and Practice of SME Marketing,” Routledge, Park Square, Oxon, OX.

Picard, RG 2005, “Media product portfolios: issues in management of multiple products and services,” Lawrence Erlbaum Associates, Inc., New Jersey.

Porter, ME 2004, “Competitive Strategy: Techniques for Analyzing Industries and Competitors,” The Free Press, New York.

Rushton, A, Croucher, P & Baker, P 2010, “The handbook of logistics & distribution management,” Kogan Page, London.

Sahaf, MA 2008, “Strategic Marketing: Making Decisions for Strategic Advantage,” Prentice-Hall, New Delhi.

Vashisht, K 2005, “A Practical Approach to Marketing Management,” Atlantic Publishers and Distributors, Vishal Enclave: New Delhi.

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