Canada is a country with a diverse demographic and as such, has a huge market potential for new products and product niches (Crane & Matten, 2010). The purpose of the report is to elaborate on the market analysis of this new product, looking at the consumer trends in this market, statistics on consumption, value chain and the barriers to adoption. The segment, target market and positioning of the new product, components of the marketing mix and a marketing plan will also be provided. A few recommendations will be made at the end of this report.
Market analysis summary
Politically, the intensity of the Canadian government involvement in the economy, lower levels of trade protections, increased number of foreign trade agreements, and policies explicit to the food industry are some of the factors that have an impact on the new product that is to be introduced to Canada.
Economically, the leveling of augmentation rates in developed markets together with increased augmentation rates and elevated levels of disposable earnings in developing markets could affect the new entry of the product (Christopher, Payne & Ballantyne, 2008).
Socially, the consumer trends particularly the healthies, foodies, and the greenies are currently leading to a differentiation advance to product improvement and are establishing a unique inclination towards premiumization (Brennan, Baines, Garneau, & Vos, 2008).
Technologically and Environmentally, Canada tends to boast of firm agronomy and food science infrastructure in their technology centers, in food companies, and also universities.
The product is in the growth stage hence seeking to build brand preference and increase market share of the energy bar. There is at least a 32% market share of the energy bar consumption in Canada, meaning that a large market can be persuaded to go for Snickrers. As a result, revenue of at least CAD368, 420 annually is recorded (Crane & Matten, 2010). Snickers is a convenience type of product since people rarely have time to eat a well prepared meal, they would rather opt for an energy bar which offers them similar calories and energy as if they were taking an actual meal.
There is a huge chance to replace some of the imported snacks with locally made products which could pose a challenge for Snickers in the Canadian market. The younger generation of consumers is considered to be the innovators and early adopters of Snickers and can be found in various learning institutions. The barriers to adoption of Snickers could be lack of interest from potential consumers (Brennan, et al., 2008). With regards to the value chain, the consumers and competitors have power over the new product.
Summary of Proposal
The market segment that has been chosen is that of working individuals and the younger generation aged between 15 years to 35 years. With regards to product positioning, it is critical that we ensure that all actions and advertising are commensurate with the positioning strategy mainly because this is the type of image we desire to portray to the public. In our case, we will utilize value positioning as a positioning strategy, whereby the price of Snickers will be below industry averages because we will appeal to potential consumers who are sensitive to price changes. As for the marketing plan of the new product, we intend to vigorously advertise and sensitize the Canadian public of the benefits associated with consuming Snickers.
Place. Snickers will have a great advantage over companies such as Honey Bar and Ruth’s Hemp mainly because they are heavily organic. This makes the sourcing of their products quite expensive as compared to our Snickers energy bar. This means that snickers has a competitive advantage over Puresource, Honey Bar and Ruth’s Hemp.
Price. Snickers are pocket-friendly as it comes in different sizes. Pricing is also quite economical compared to Puresource, Honey Bar and Ruth’s Hemp prices which are on the higher side.
Promotion. The energy bar promotes itself as an athlete’s source of energy and rejuvenation which appeals to the younger demographic as opposed to Ruth’s Hemp and Puresource. It is popular making its position in the market higher.
Basis for recommendation
I believe that my idea will be a winner because I have endeavored to point out the potential strengths and weaknesses of our entry strategy into the Canadian market and the importance of employing a market positioning which is friendly to the general public.
Abela, A. (2006). “Marketing and consumerism.” European Journal of Marketing, 40(2). Pp. 5 – 16.
Brennan, R., Baines, P., Garneau, P., & Vos, L. (2008). Contemporary strategic marketing. 2nd Edition. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
Christopher, M., Payne, A., & Ballantyne, D. (2008). Relationship marketing. Oxford, UK: Butterworth-Heinemann.
Crane, A., & Matten, D., (2010). Business ethics. Oxford: Oxford University Press.