Labor Relation

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Unions and corporations are forbidden to make political contributions in any elections involving the choice of __________. (Points : 2)

state officeholders        federal officeholders        municipal officeholders        private employees

 

Question 11. 11. The __________ determine(s) what group of employees would constitute an appropriate unit for a representation election and subsequent bargaining. (Points : 2)

National Labor Relations Board        Federal Mediation and Conciliation Board        Bureau of Labor Statistics        Federal Contract Compliance Programs

 

 

Question 12. 12. The __________ Act was enacted following the largest incidence and the most time lost from work due to strikes of any year in U.S. history. (Points : 2)

Landrum-Griffin        Norris-LaGuardia        Railways Labor        Taft-Hartley
Which of the following best explains interchangeability and degree of contact among employees in determining appropriateness of the petitioned unit? (Points : 2)

If employees transfer frequently across plants or offices, their community of interest may be similar, leading the board to designate a multi-plant unit.        If employees in two or more different occupations worked under common supervision, a unit including only one of the occupations would probably be inappropriate.        Employees at a particular facility may have differences in job duties, but similar levels of skills and be considered as an appropriate group for organizing.        Differences in pay rates or benefits would not necessarily lead to a unit being found to be inappropriate.

 

 

Question 26. 26. Employees who are hired after __________ need to be recruited to join and get socialized to better understand and support the union’s goals. (Points : 2)

the negotiation of the neutrality pledges        decertification elections        craft severance        unionization in the firm
30. When does the elasticity of demand for a firm’s product increase substantially? (Points : 2)

When an industry is no longer concentrated        When there is decreased consumer attention to quality        When there is non-availability of labor        When there is a lack of substitute products

 

 

Question 31. 31. When is the supply of labor elastic? (Points : 2)

When an employer is a relatively small factor in a labor market        When there are a lot of employment opportunities in the market        When several employers hire the same type of labor simultaneously        When the rate of unemployment is low in the market

 

 

Question 32. 32. According to an extensive study of union wage differentials: (Points : 2)

the private sector wage premium is higher today than it was in the 1970s.        public sector wage effects are smaller than those in the private sector.        nonunion workers are able to resist employers’ efforts to reduce wages better than unionized workers.        there remains big variation in the premium across workers.

 

 

Question 33. 33. One of the Scanlon plan’s major purposes is to: (Points : 2)

minimize employee participation.        increase labor input for a given output.        reward only employees for productivity gains.        tie pay to company performance.

 

 

Question 34. 34. According to a study across income distribution in Canada: (Points : 2)

employees whose earnings are in the top quintile lose from unionization.        employees whose earnings are in the lowest quintile lose from unionization.        average earning of the nonunion worker in the first four quintiles is higher than the nonunion worker.        employees who are most advantaged in the labor market benefit the most.

 

 

Question 35. 35. Which condition raises union spillovers? (Points : 2)

High unemployment        Increasing inflation        High standard-of-living        Economic expansion

 

 

Question 36. 36. When does the narrowing of union-nonunion wage gap occur? (Points : 2)

During periods of expansion        During periods of high unemployment        When wages have eroded        When inflation is high

 

 

Question 37. 37. Which of the following is an exogenous change? (Points : 2)

Introduction of a new technology        Innovation in products or services        Changes in competitive products and services        Changing goals and objectives of new managers

 

 

Question 38. 38. According to the administrative rules issued by the Department of Labor in 2004: (Points : 2)

all employees, regardless of wage scales, were to receive overtime.        all supervisors were reclassified as nonexempt.        any job that was paid on an hourly basis was classified as non-exempt.        jobs requiring primary manual work changed classifications.

 

 

Question 39. 39. Which of the following is an endogenous change? (Points : 2)

State of the economy        Changing goals and objectives of new managers        Changes in competitive products and services        Changes in laws and regulations

 

 

Question 40. 40. Ford established and operated a(n) __________ to monitor employee effort and to quickly identify pockets of malcontents in the workforce. (Points : 2)

internal security force        five needs theory        human relations approach        management by objectives approach

 

 

 

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Executive Summary – Market Analysis Report: Biodegradable Plastic Bags

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Running head: MARKET ANALYSIS 1

 

MARKET ANALYSIS 2

 

Market Analysis Report: Biodegradable Plastic Bags

Positioning and Differentiation

Positioning involves a strategic process used by marketers in determining the market niche upon which an offering ought to fill in a particular market or a method of organizing for a product to occupy a distinctive place relative to competing for goods as regarded by target customers. Differentiation involves the process of making a product stand out from its competitors by ensuring it provides unique value to customers. Effective positioning for commodities in the market relies on the differentiating features that make such commodities better than the competitors’ in the target customers’ minds. The ultimate aim of the two is to create a market-focused value proposition.

Brief Description of the market

The market for biodegradable plastic bags has been expanding in recent years, and that has led to tremendous growth in the industry as the governments are consistent in prohibiting the use of non-biodegradable plastics while the awareness is increasing among the public concerning the adverse effects of plastic wastes. Factors such as the ability of many governments to ban single-use plastics and call for the use of biodegradable ones and the willingness of consumers to pay more for biodegradable plastic bags offer a significant boost to the industry’s market growth (Markowicz et al., 2019). JGJ Inc. wants to enter an industry that deals in biodegradable plastic bags. The market currently has a large number of players due to the increasing demand for the products. Thus it is upon the entering or existing firms to invest heavily towards producing novel, robust, and environmentally friendly products.

 

 

Analysis of the Current Positioning in the Market

Current annual sales volume in dollars and/or units sold in the market

Currently, the sales volume or the value of the biodegradable plastic market is $4.7 billion. Being a better alternative to conventional plastics, biodegradable plastic packaging will likely grow in terms of sales volume as soon as forecasted. The global markets are increasingly adopting biodegradable plastic bags as most governments issue directives, and concerned bodies create awareness of its environmentally friendly nature.

Current competitors and their offerings

Key players or competitors in this competitive market include BASF, Biome Technologies, and Mondi. Biome Technologies provides a bioplastic solution to growing coffee cup waste by designing takeaway beverage cups using plant-based sources. Through a partnership with Futamura, the company also plans compostable multilayer packaging, which, compared to oil-based packaging, offers a competitive advantage. BASF used high-quality bioplastic materials consisting of polymer eco flex and polylactic acid derived from renewable components used in making coffee capsules, organic waste bags, and aroma-tight outer packaging. The compostable plastic ecovio developed by BASF offers significant aid in production, packaging, and transport as it limits food and nutrient wastage and plastic accumulation in soil (Markowicz et al., 2019). On the other hand, Mondi produces sustainable extrusion-coated and laminated packaging materials that apply biopolymers that are purely made of renewable resources rather than PE. The materials have good sealability, gas, grease, and moisture barrier, and varied usability.

BASF is an excellent firm to work for as they support education, development, and training and have some of the many companies’ best health benefits. Therefore, this makes them very competitive in the market, which means that other companies may find it challenging to cope with such competition. The company is located in Germany and has its headquarters in Ludwigshafen. The founder was Friedrich Engelhorn, who began the company in 1865. It also has subsidiaries in more than 80 countries and operates in six integrated production sites worldwide. The company’s revenue stood at 59.32 billion Euros as of 2019, which has continued to improve over time.

On the other hand, Mondi is a British packaging paper group that has employed more than 26000 people with over 100 sites of production in more than 30 countries. The headquarters are in Addlestone, the United Kingdom, and its revenue stood at 7.268 billion Euros as of 2019. The company was founded in 1967 in South Africa. Biome Technologies is based in the UK, and it operates under three sections: Bioplastics, Radiofrequency technologies, and central costs. The company’s core objective is to build a market-leading position based on current technology and serve international customers invaluable market sectors.

Current price points of competitors

The price of biodegradable plastic bags varies per the company producing them since they use different materials, technologies, and specifications whose costs are not the same. BASF has slightly higher pricing than Biome Technologies, whose price for biodegradable plastic bags is slighter higher than that of Mondi. However, their prices are more likely to be sticky. BASF, for instance, announced elevating its prices across the world by $100 per metric ton. This shows that the company’s growth is positive, and it is expected to make more profit and gain more competition in the market. For Mondi, the prices are slightly lower, as mentioned above, but it is also fighting to attain a good market share. Competitions are critical in business, and if JGJ Inc. wishes to become the best in the market, it has to have the best strategies in place as its competitors have.

Projections for the Market

The projected overall market growth rate for the next five years

Currently, the market for biodegradable plastic bags is valued at $4.7 billion. The anticipated market value for the next five years is $12.06 billion, registering a growth rate of 17.04% during the period 2020-2025. The expected positive growth in the market is attributable to the rising environmental concerns, which drives the use of biodegradable plastic packaging, and stringent regulations by different federal agencies whose aim is to minimize plastic waste and promote the usage of biodegradable plastic packaging, thus boosting its demand in the market (Ciriminna & Pagliaro, 2020). Food packaging and compostable bags are increasingly using biodegradable products to satisfy the shift in governmental regulations and consumer preference towards eco-friendly products.

Projected changes to overall pricing in the market for the next five years

Based on the market report on biodegradable plastic bags, it is projected that the overall pricing will increase by at least 35% for the next five years. The increase in the overall pricing results from the anticipated costly materials for making biodegradable polymers compared to thermoplastic materials. Certain kinds of polymers like PET are price-competitive, and due to their scarcity, they will be very costly as projected. Due to the expected expansion of the market size coupled with rising demand for biodegradable plastic bags, the price will likely increase as projected. Due to the competitive landscape, firms are also leveraging their application of eco-friendly and sophisticated technologies, which are costly, to produce plastic packaging products from readily existing natural resources.

 

Recommended Position for JGJ Inc.

Recommend position and points of differentiation for the JGJ Inc. offering

Because of the biodegradable plastic industry’s competitive nature, JGJ Inc. should consider employing different strategies that will help them position the product in the customers’ minds. Customers may need the company’s product but fail to have a clear understanding of the same. Therefore, it means that the company ought to have a good plan that will enable customers to make good decisions when buying. Different marketers use the positioning strategy in identifying the other place that they want a product or service to be held in the minds of the customers and target market segment.

On the other hand, differentiation means that companies can use different processes to make a product or a service stand out from the rest in the market, and I would recommend this for JFJ Inc. The penetrative approach will enable the company to gain quick access to market share, create brand loyalty, and generate significant demand by setting an appropriate price to get more customers. The penetrative strategy is suitable as the market has little product differentiation while the need is price-elastic. Product differentiation can be done through rigorous advertising and robust sales other mechanisms to establish the superiority of goods over competitors’ competitors. The company should convince consumers that its products will provide more advantages and superior performance. The company’s recommended place or distribution strategy includes the use of physical and online stores and the use of wholesalers and retailers to reach the customers.

Buyer profile of the target customer

The key target customers for the biodegradable plastic bags include food processing and packaging firms, hotels, groceries, other eateries, and individual shoppers. Consumers from emerging economies have rising incomes and are experiencing increased growth in agriculture, horticulture, and textile industries, thus driving the demand for biodegradable plastic bags (Ivonkovic et al., 2017). Their dependence on biodegradable plastic packaging leads to increased demand.

Product development

The development of biodegradable plastic bags by JGJ Inc. as a product development process presents different specifications, characteristics, and features that differentiate it from its competitors. To start with, product development is a complete process that aims at developing a new product or improving the existing one for customers. It is the idea of bringing new products into the market to solve individuals’ problems in society and meet their needs. Product development involves different stages that include ideation, research, planning, and prototyping, sourcing, and costing (Cooper, 2019). This proposal will discuss two aspects of the market analysis as far as JGJ Inc. is concerned, which includes the key differentiating characteristics of the offering and the study of the market demand.

Critical differentiating characteristics of the offering

Creating environmentally friendly products is the objective of every organization. In this case, biodegradable bags are preferred as they are eco-friendly and able to break down quickly to harmless materials than the other standard and traditional plastic (Dilkes-Hoffman et al., 2019). Some of the characteristics that can be offered from this product and enable JGJ company to be different from competitors include the ability of these plastics to be degraded by microorganisms present in the environment after entering the microbial food chain. The product can also have information on them that advocates preserving the environment and creating awareness among the users. This refers to having branded bags with information about product recycling and reusing. Besides, allowing your product to market itself is the best strategy to achieve a competitive advantage in the market. For JGJ, creating the right quality products that are durable and presentable to customers without putting much attention into profit maximization would be one of the best strategies to remain competitive. Additionally, having a mixture of pricing strategies like competitive pricing whereby the company chooses to reduce prices while prioritizing the product quality can be another differentiating characteristic that will help it thrive in the market. It would also be good for the company to maintain the culture of creating products that are environmentally friendly in its production as this will help in building a name and a brand that is known for green production of production hence remaining competitive in its field (Ciriminna & Pagliaro, 2020).

Some of the characteristics of microorganism degradation include the ability for biodegradable plastic bags to decay quickly and decompose, after which they will benefit trees since they will produce nutrients. Having biodegradable bags made will provide an eco-friendly environment, as mentioned, and protect nature from pollution. In branding, some of the essential factors that the companies should not include consistency, uniqueness, clarity, personality, and memorability. By consistency means the organization must ensure that branding is consistent and that there is no reluctance in the process. Being unique is one of the best ways a company can compete in the market and achieve more than others. Besides, being clear on the goals that ought to be achieved through branding will also be a critical part of the organization.

Quality is an essential aspect as it will help in attracting more customers into the business. It is essential to ensure that the production process is efficient and that quality should be prioritized over profit maximization. As far as the bag size requirement by the market is concerned, I would advise JGJ Company to produce those that range from small to medium and then large with different prices. This is important for customers since they will choose other packaging materials that will fit their needs. Having different kinds of packaging bags for various purposes is also essential. For instance, it would be vital to have packaging bags for foodstuffs, garbage, and other commodities. Introducing their products to the retail market would be a great idea rather than the industry. This will help understand where there is a need for improvement and how this can be improved. My peer’s comments about edible plastic and multi-purpose bags are also a good idea incorporated by the Company in the production process. I would agree with such a strategy since it provides a mutual benefit to both the company in protecting the environment and the consuming organisms.

Analysis of demand in the market

It is essential to understand the patterns and how the best demand can be managed to demand analysis. The market fluctuates over time, and this is an essential factor for JGJ Inc. to consider. The company can test and know how fast the product will be moving in the market and find the best ways to supply them. The quantity of these biodegradable plastic products in the market is yet to reach a point whereby customers have a wide variety of choices. Therefore, this means that the company has the task of producing more products to meet customer needs. Besides, plastic bags are widely used, and this means the demand is ever-growing. The quantity currently selling in the market is yet to meet the required customer needs bearing in mind that many countries have not embraced the concept of green production. This translates to the condition of having market research and finds out countries that can have biodegradable plastics being shipped to. This research thus will help in understanding the demand patterns and provide room for increased production. With a good strategy in place, JGJ’s can achieve market growth, which is recommendable and helps solve customer requirements.

Internal and External Marketing Environments

Analysis of Key External Factors in the Market

Porter’s five forces model

Porter’s five forces involve a model that determines and analyzes five various competitive points that align every firm and assess its strengths and weaknesses. The model is used in determining the level of profitability of a market. Porter’s five forces model is used to analyze the nature of the biodegradable plastic bag industry using fives forces or factors such as competitive rivalry, threats of new entrants, the threat of substitution, supplier power, and buyer power as follows:

Competitive Rivalry

First, there is a limited number of firms in this industry, with the major players being BASF, Biome Technologies, and Mondi. The firms in this industry have limited product differentiation except for Biome Technologies and BASF, which are offering bioplastic solutions to growing coffee cup waste. Market growth is relatively high in this industry, thus making firms not strive or fight for market share. The phenomenon is taking place due to the state of the economy and the governments and state agencies’ restrictive rules that support industrial growth (Ciriminna & Pagliaro, 2020). There are low fixed costs and high switching costs, thus easing rivalry. Given these factors, it is evident that the industry is not highly competitive.

Threats of new entry

In the biodegradable plastic industry, there are severe challenges to market entry. Factors limiting this include the choice of products to be used in manufacturing the bags poses a great challenge, countries’ bureaucratic nature to put up the firms, the industry is highly innovative, and economies of scale must enter the market (Dobbs, 2014).

Threat of substitution

Usually, the price elasticity of a product is influenced by substitute products. Due to a limited number of close substitutes in this industry since the governments warn and refined the plastic producing firms, there is a minor threat of substitution (Ivonkovic et al., 2017). In the packaging industry, it is either one uses plastic or biodegradable plastic bags for shopping. Currently, there is no cost of changing to other substitutes since they are unavailable.

Supplier power

Since the raw materials to make unique products in this industry are limited, the number of suppliers is small. However small is the number, they strive to offer exceptional products, and the changing cost of suppliers is high in this case.

Buyer Power

In this industry, the number of customers is significant. The customers are independent; thus, the firm can quickly charge different prices based on production or other factors to increase profitability. The differences based on market segments are not so substantial.

Other macroenvironmental external factors

Other macroenvironmental external factors that may potentially affect JGJ Inc. include:

Political factors include different tax levels in various nations, various laws, pressure groups, and government agencies that may influence or restrict the firm from carrying out its operations. Most countries have laws covering issues like product safety regulations, environmental conservation, and competitive pricing (Markowicz et al., 2019).

Economic factors: The firm should be aware of economic factors such as market boom, different inflation rates, varying foreign exchange rates, and high unemployment rates in various areas.

Social factors: The demographics of nations vary in terms of their economic status and other factors. The firm should consider using media trends, culture, and other creative means to attract and familiarize people.

Technology: The firm should consider using creative technologies to prosper in this competitive industry and reach out to customers through media outlets like social media platforms, smartphones, tablets, and other emerging technologies.

Environmental: The firm should be aware of ecological conservation and protection regulations against natural disasters in the area.

Legal: The firm should be conversant with and adhere to existing international laws, labor laws, and national laws to survive in foreign markets.

 

Required Internal Resources and Competencies to Compete in the Market

The internal resources and competencies for competition in this market include an effective technological network that will enable the firm to be innovative. An excellent infrastructure to ease transportation and distribution of products to consumers, effective sales, operations, and logistics personnel who will steer sales, ensure efficiency and inventory management, and a stable financial environment to ensure smooth production, distribution, and clearance of other bills. The firm also needs a good reputation to attract and maintain customers and reliable and consistent production and distribution of products.

Required Licenses, Patents, and Rulings or Legal Requirements to Compete in the Market

The primary business operation license from the city of operation will be required, and it will illustrate the type of business operation and the products the firm will offer. The business must be issued with a federal employer identification number before engaging in the industry (Egbunike & Okerekeoti, 2018). Other requirements include a fictitious business name permit; health department permit as the firm will be producing food packaging materials, sales tax license, fire department permits as the firm will be attracting a large number of consumers.

Pricing, Promotion, And Distribution

Pricing, promotion, and distribution are essential factors of marketing that different organizations use to help in running their activities. Pricing, promotion, and distribution strategies are necessary since they have contributed to the company’s growth and development and have made the organization compete in the market. Therefore, this proposal analyzes the current models of pricing, promotional models, and distribution channels models in the market will also provide recommendations on the strategy to be used as far as pricing, promotion, and distribution are concerned to JGJ.

Analysis of the Current Pricing Model in the Environment

A Pricing model refers to a method used to determine the prices of a particular product or service. A good pricing model helps the producer achieve the best price that is affordable for potential customers. In this case, JGJ should look into several factors before coming up with a pricing model. Such factors include the size of the market, competitive landscape, and market demand. Various models available in the market for the company include fixed model, cost-plus, and competitive-based. A fixed Pricing model available in the market entails having a set price for all customers. This means that if goods are made available to the retailers, the retailer fixes one price for the item, and customers purchase it without bargaining. On the other hand, the cost-Plus Pricing Model analyses the total cost of producing a product compared to the value placed on the product for purchase. The price of a product should be higher than the cost of production to cover the expenses but not so high that the customers cannot afford it. For example, if the price of producing one biodegradable plastic bag was $3.00, then the cost for purchase should be slightly higher than the $3.00. A competitive-based model involves coming up with a price for a particular product after comparing the cost with other market prices. If your competitors charge $5.00 for a specific price, your price should be slightly below to gain a competitive advantage over other companies in the same industry. This forms some of the strategies that JGJ can implement to help market its products to the customers. Different companies use various pricing strategies that have enabled them to achieve a competitive advantage in the market. The company can therefore consider using some of the listed models above.

Analysis of Current Promotional Models in the Market

Product promotion is essential for any given organization as it increases demand for that specific service or product. For JGJ Inc., there are various promotional models available in the market that it can use to help reach a considerable number of customers. Some of these models include advertising, direct marketing, personal selling, public relations activities, and sales promotions. Advertising can involve the use of various channels that will ensure that more customers are reached. Such channels will include online platforms, use of mass media, and even the use of word mouth Advertising on Facebook, Instagram, and other platforms can be ideal places to help find more customers as well as advising them on the need to use biodegradable plastic bags with the main reason of protecting the environment. The public relations model can also promote a product or service through PR events, news releases, and media introductions. The personal selling model involves using salespeople, showrooms, tradeshows, and exhibitions to promote a particular product or service. The direct marketing model consists of using the internet, sales on display, company websites, emails, and blogging.

Analysis of the Current Distribution Models in the Market

When it comes to the distribution process, the company can use several models to help the product reach the final customer. For instance, distribution channels refer to how products flow from the producer to the consumer. (Karash & Khomenko, 2019). Various distribution models, such as the direct/exclusive distribution model, involve delivering products and services directly to the consumers by using your salespersons. JGJ can choose to provide their products to the consumers without selling them to retailers and wholesalers such as Wal-Mart. The use of an interactive distribution model, which involves the three intermediaries: the producer, wholesaler, and retailer, is also essential in the whole process of distribution. Goods can flow to the wholesalers from the company who buy them in large quantities and finally to the retailers who buy them in small potions then finally to the consumers.

Additionally, using a selective distribution model can also be effective for the company. This involves using few levels like selling your products to the retailer who sells them to the customers. This method is essential as it helps reduce extra costs that the wholesalers would have added.

 

Recommended Pricing Strategy for JGJ Inc.

I would recommend a competitive based pricing model to be used by JGJ Inc. to gain a competitive advantage over its competitors such as Albertsons Company, Kroger Company, and Lift Hero Company. When you come up with a price according to prices in the market, it enables you to attract numerous customers if your prices are affordable. Customers compare prices available in the market and settle on the price that is more affordable to them.

Recommended Promotional Strategy for JGJ Inc.

I would recommend using websites as a method of promoting a particular product or service in JGJ. The use of the internet has grown, and so many people browse through the internet daily, making it easier to access a particular company website. It is not costly to set up a website hence saving on costs. It is also readily available since one can access the internet at any time. Facebook is one of the platforms that businesses can use to reach a broader market through running promotions. Also, having YouTube channels that explain more about the company can help as far as promotions are concerned. The use of Instagram is also essential in building a broader customer base that will improve sales and help the company achieve a competitive advantage.

Recommended Distribution Strategy for JGJ Inc.

I would recommend a direct distribution method to be used by JGJ to facilitate products from the producer to the consumers. This model saves time used in delivering goods to the consumers since goods are delivered directly to those in need of them. It also cuts extra costs that will be added by either the retailer or the wholesaler. JGJ needs to assess different international shipping companies and find out which one suits them best and how its products will reach the market within a short period. It thus needs to understand the market environment in different parts of the world.

In conclusion, the success of the marketing of any given company depends on the pricing, promotion, and distribution strategy adopted. In this case, JGJ needs to analyze and weigh between several factors that will help develop the best plan to be implemented. The company also needs to do a market assessment to help it keep up with the changes in the market.

 

 

 

Reference

Ciriminna, R., & Pagliaro, M. (2020). Biodegradable and compostable plastics: A critical

perspective on the dawn of their global adoption. ChemistryOpen, 9(1), 8-13.

Ivonkovic, A., Zeljko, K., Talic, S., & Lasic, M. (2017). Biodegradable packaging in the food

industry. Journal of Food Safety and Food Quality, 68, 26-38.

Markowicz, F., Król, G., & Szymańska-Pulikowska, A. (2019). Biodegradable package

innovative purpose or source of the problem. Journal of Ecological Engineering, 20(1).

Cooper, R. G. (2019). The drivers of success in new-product development. Industrial Marketing Management, 76, 36-47.

https://www.sciencedirect.com/science/article/abs/pii/S0019850118300476

Dilkes-Hoffman, L. S., Pratt, S., Lant, P. A., & Laycock, B. (2019). The role of biodegradable plastic in solving substantial plastic waste accumulation. In Plastics to energy (pp. 469-505). William Andrew Publishing.

https://www.sciencedirect.com/science/article/pii/B9780128131404000194

Ciriminna, R., & Pagliaro, M. (2020). Biodegradable and compostable plastics: A critical perspective on the dawn of their global adoption. ChemistryOpen, 9(1), 8-13.

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6946947/

Ciriminna, R., & Pagliaro, M. (2020). Biodegradable and compostable plastics: A critical perspective on the dawn of their global adoption. ChemistryOpen, 9(1), 8-13.

Dobbs, M. E. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review.

Egbunike, C. F., & Okerekeoti, C. U. (2018). Macroeconomic factors, firm characteristics and financial performance. Asian Journal of Accounting Research.

Ivonkovic, A., Zeljko, K., Talic, S., & Lasic, M. (2017). Biodegradable packaging in the food industry. Journal of Food Safety and Food Quality, 68, 26-38.

Markowicz, F., Król, G., & Szymańska-Pulikowska, A. (2019). Biodegradable package–innovative purpose or source of the problem. Journal of Ecological

Engineering, 20(1).

Maguire, A. (6). Different pricing strategies: Which is right for your business? Retrieved July 9, 2017.

Bolton, R. N., & Shankar, V. (2003). An empirically derived taxonomy of retailer pricing and promotion strategies. Journal of Retailing, 79(4), 213-224.

Huang, J. C., Shetty, A. S., & Wang, M. S. (1990). Biodegradable plastics: a review. Advances in Polymer Technology, 10(1), 23-30.

Kardash, A., & Khomenko, S. (2019). Marketing distribution techniques in the digital medium.

 
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Price and Channel Strategy

Price and Channel Strategy

Nike continues preparing a marketing plan for its new sportswear apparel products with price and place strategies. Nike strategizes its product pricing addressing dynamic and static pricing strategies along with daily, promotion, and list pricing techniques. Nike also completes place strategizing through channel distribution, mass, selective, exclusive, and positioning tactics.

Price and Place/Distribution

Dynamic/Static Pricing Strategies

Nike uses dynamic or discriminatory sportswear product pricing as its primary pricing strategy to support its short-term and long-run objectives. Dynamic pricing is where the product price is established but not set in stone for the life of the product, and the price fluctuates within the stages of the product life-cycle and other mitigating circumstances such as geographical locations economies. Nike’s customers historically support its dynamic pricing strategy and enjoy its products brand value.

Static pricing is when a product price is created and sustained for the product over lengthy time periods. Nike does not use the static pricing strategy because it is not practical to set standard prices for sportswear that has many versions for different product lines. Although, Nike does establish prices that are consistent with new and existing products assuring consumers that there is an average price point to expect.

Daily, Promotion, and List Pricing

Nike sets its sportswear products daily prices at the high, medium and low price points. Nike has a pricing department that is dedicated to establishing product prices. Sportswear prices are elastic and will endure change. Daily pricing supports the company penetrating the market, determining its standing, earning profit and market share, creating competitive advantage, and adjusting prices as necessary to sustain growth.

Nike uses promotion pricing versus the EDLP as other competitors. Promotions allow the company flexibility to maximize its profits and exemplify its high revenue sportswear apparel products. Promotions may be factory direct or retail endorsed for reasoning or seasoning sales. “Three prominent retail pricing strategies are frequency discounting, where retailers offer frequent but small discounts; depth discounting, where retailers offer infrequent large discounts; and everyday low pricing (EDLP), where retailers offer products at a constant low regular price” (Danziger, Hadar & Morwitz, 2014, p. 761).

List price is a skimming technique where Nike sets its newly introduced sportswear products at higher prices and then lowers them over time. Nike has to maximize its revenue from its innovative products before competitors match their technology and flood the market. List pricing along with daily is especially important for its global market pricing aspect.

Distribution Strategies

Nike will use marketing channels of not only the consumer but also the industry to distribute its sportswear apparel. “A marketing channel refers to “a set of interdependent organizations involved in the process of making a product or service available for use or consumption” (Watson, Worm, Palmatier & Ganesan, 2015, p. 547). Nike has a robust marketing channel system in place to distribute at all four levels from the manufacturer directly to the consumer and the manufacturer through various partnerships to customers, (see below fig. 17.3). Nike also uses both the vertical and horizontal marketing systems by embracing different levels of partnerships to maximize its product placement. These partnerships are especially crucial within the global market because Nike does not have the same control abroad as within the domestic market.

Channels, Mass, Selective, and Exclusive

Nike uses exclusive distribution when channeling from manufacturer directly to the consumer. Nike has mastered this channel using digital online to its technological limits. Reducing the middle-man enhances company revenue immensely and provides customer value with limited interruptions.

Selective distribution is used by Nike in full force. Nike has many factory outlet stores and retail stores that are close and trusted partners that sell their sportswear within their terms. Nike supports the aspect of maintaining a manageable number of intermediates for the proper placement and distribution of its product and limiting conflict.

Nike also uses the intensive distribution strategy and places its sportswear apparel products with wholesalers and retailers for sale to consumers. Nike not only uses this intensive placement domestically but also globally. The intensive global distribution is crucial in Nike expanding the global market, gaining market share and expanding its global footprint.

Positioning Within Channels

Nike has different product distribution channels to ensure customers are reached, satisfied and loyal. “By monitoring their environment and harnessing technological advances, retailers can (1) remain more in touch with consumer preferences, (2) take advantage of opportunities created by new consumer preferences, and (3) enhance the value they offer to consumers” (Grewal, Roggeveen, Compeau & Levy, 2012, p. 1). Proper positioning ensures products are where they need to be when they are needed. Nike also positions itself to stay one step ahead of competitors and create competitive advantage. Nike ensures that competent and trusted intermediaries are part of their market channel system and value network.

Conclusion

Nike has planned for its sportswear apparel products pricing and distribution strategies. Nike has a dedicated pricing department that uses dynamic pricing within daily, promotion, and list pricing to accomplish company sales objectives. Nike also has robust distribution strategies using exclusive, selective, and intensive channeling with crucial positioning to meet company strategic plans.

References

Danziger, S., Hadar, L., & Morwitz, V. G. (2014). Retailer pricing strategy and consumer choice under price uncertainty. Journal of Consumer Research, 41(3), 761-774. doi:10.1086/677313. Retrieved from The University of Phoenix MKT571 website.

Grewal, D., Roggeveen, A. L., Compeau, L. D., & Levy, M. (2012). Retail value-based pricing strategies: New times, new technologies, new consumers. Journal of Retailing, 88(1), 1-6. doi:10.1016/j.jretai.2011.12.001. Retrieved from The University of Phoenix MKT571 website.

Kotler, P. & Keller, K. L. (2016). Marketing Management (15th ed.). Retrieved from The University of Phoenix eBook Collection database.

Watson, G. F., Worm, S., Palmatier, R. W., & Ganesan, S. (2015). The evolution of marketing channels: Trends and research directions. Journal of Retailing, 91(4), 546-568. doi:10.1016/j.jretai.2015.04.002. Retrieved from The University of Phoenix MKT571 website.

 
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Introduction of Ayala, a New Dog Pet Food by Petco

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Your written product overview will include a detailed product overview and marketing strategy. It should be a complete, polished artifact containing all of the critical elements of Part I of the final project, including content created in Milestones One and Two. It should reflect the incorporation of feedback gained throughout the course. The Part I Exemplar – Tip Top Bakery Market Overview uses a bakery promoting a new product to provide you with an example of a complete written product overview, such as the one you will be writing for your pet supply company. Use the Final Project Part I Final Submission Template for your written product overview.

I have Attach Bakery Market Overview and the Final  submission Template. I  also  include Milestones One and Two  that should refiect the  incorporation of feedback.

 

 

MKT 113: Final Project Part I Milestone Two

 

Introduction of Ayala, a New Dog Pet Food by Petco

 

LeRoy Cooper

 

Southern New Hampshire University

 

 

 

 

Introduction of Ayala, a New Dog Pet Food by Petco          

 

Ayala is a new dog pet food that is produced and distributed by Petco Inc., a pet food supply company. The firm, which is located in San Diego, California, United States, deals in foods for all types of pets. The newly launched pet food is intended to be first introduced at the headquarters and then be rolled out to other branches worldwide. Before introducing the pet food, the company had to scrutinize the target market by looking at their demographic, psychographic and geographic breakdown as suggested by Armstrong, G., & Kotler (2015).

 

The target market for this new product is pet owners, specifically dog pets. In 2015, it was estimated that there are more than 80 million dog pets in the United States alone (Shah, 2015). This figure is expected to grow with growing human population, hence the need to produce more dog pet food. Dog pet owners can come from across all ages (young and old), married and unmarried, educated and uneducated and from varied income brackets. The market for this new pet product consists of people who see dog pets as part of their family members, thus want the best for the pets. According to the American Pet Products Manufacturers Association, pet owners are spread across most parts of the country, with urban residents having more affinity for pets than their rural counterparts (Fine, 2015).

 

Apart from premium pet food, the pet market also needs classic pet beds and medicines. Other products that are mostly bought by dog pet lovers include gifts, natural and hygienic products. Research by Petco Inc. indicates that dog pet food tops the list of the products purchased by dog pet owners. Further, the market needs a combination of dog pet food that contains a collection of nutrients from various foods. Thus, the newly introduced food (Ayala) is to meet this need, since it consists of various foodstuffs. Dog pet owners need to do a single purchase and meet all nutritional requirements for their dogs.

 

Ayala is the dog pet food that is being introduced in the pet supplies industry by Petco Inc. This highly nutritious food product targets all dog pet owners anywhere in the world. The food combines nutritional values from many dog pet foods. Thus, it will meet the demand of consumers while at the same time enabling them use a single feed to meet all their pet food needs.

 

 

 

 

 

 

 

 

 

 

References

 

Armstrong, G., & Kotler, P. (2015). Marketing: An introduction (12th ed.). Upper Saddle River, NJ: Pearson Education, Inc.

 

Fine, A. H. (2015). Handbook on Animal-Assisted Therapy: Foundations and Guidelines for Animal-Assisted Interventions. Academic Press.

 

Shah. (2015). Advertising N Promotion. Tata McGraw-Hill Education.

Running head: TIP TOP BAKERY PRODUCT OVERVIEW 1

 

 

TIP TOP BAKERY OVERVIEW 6

 

 

 

 

 

 

 

MKT 113: Final Project Part I Final Submission

Tip Top Bakery Product Overview

Anastasia Bo

Southern New Hampshire University

 

 

 

Tip Top Bakery has been in business for over 20 years and has five locations in New Hampshire. It has a successful breakfast and lunch business making custom orders. To accommodate its growing lunch business and respond to increased competition, the owner has decided to start selling pre-packaged “to go” sandwiches. One of the primary target markets of the bakery is businesspeople, so Tip Top hopes that the new offering will appeal to individuals without time to have a sit-down lunch but who are still looking for a high-quality lunch product.

To help the Tip Top Bakery decide how to best market its new offering, a SWOT analysis on the product is recommended. The bakery can use this to identify how it can leverage its strengths to best take advantage of the opportunities in the market.

Figure 1: SWOT analysis for Tip Top Bakery

The Tip Top Bakery has several strengths to highlight in its marketing activities. The bakery has a good reputation for serving healthy and delicious sandwiches, its lunch items are priced in line with competing bakeries, and it is known for using fresh, local ingredients. These strengths correlate well with the opportunities identified in the SWOT. The first opportunity is the trend to eat healthy, local foods. Tip Top already has a reputation for serving this type of food and should be able to transfer that to the new product. The second opportunity is the trend for shorter lunch breaks. Tip Top has already noticed an increase in the number of people who ask for custom-made sandwiches “to go.” It can take advantage of this with its new product.

The primary target market for the new “to go” sandwiches is business professionals. This makes sense given that the bakery already has locations in the business districts of Manchester, Portsmouth, and Concord. For the new product, it is recommended that Tip Top begin by rolling it out only in its locations in Manchester. If successful, it can expand to its other locations. Manchester has over 11,000 businesses located within the city (Manta, 2015), and the bakery’s two locations are easily accessible by many of these businesses. Additionally, research shows that more than two thirds of Americans buy their lunch every day (Wolters Kluwer Law & Business, 2015), which also demonstrates a need for this new product. Further demographic research reveals that according to the PRIZM segmentation, three of the five primary segments in the Manchester area have professional jobs, a high level of homeownership, and high household incomes (The Nielsen Company, 2015). Thus they can spend a little extra on lunch. This data indicates that working professionals will be a great market segment target for Tip Top.

The working professionals market is an important one for Tip Top. This group primarily own their own home and have a professional white-collar job and an above-average household income. In addition, two of the top segments in this area are over 55 years of age (The Nielsen Company, 2015). This age group seeks convenience, as they tend to feel very rushed during the business day. Those in the over-55 set also feel a need to be healthy in their food choices, so they may be more discerning in their choices. In addition, this target market demonstrates two key wants in the bakery’s favor. The first is the want to support local businesses over large chains, and the second is their want to eat out for lunch for social reasons. The social aspect of going out to eat, even just going with a coworker to get takeout, is one of the most commonly mentioned reasons for buying lunch (Berman, 2014). The bakery’s new product fulfills all of these wants and needs.

Tip Top Bakery should focus on two primary marketing strategies to promote its new product: social media and in-store promotion. There are many ways the bakery can use social media to promote the new product; however, it is specifically recommended to develop a Facebook page that includes coupon offers or discounts for people who “like” its page. To encourage current followers to try the new product, Tip Top should promote it through pictures and information on daily specials. The bakery should also create an Instagram page where it can cross-post the photos from Facebook. As the algorithms for who sees posts on Facebook pages become more restrictive, using Instagram can help Tip Top reach a broader audience. The second online approach recommended is to use coupon sites such as Groupon and review sites such as Yelp. These channels could help to bring in people who are in the bakery’s target market but who do not yet visit the bakery. The second recommended marketing strategy is in-store promotion. The bakery already has a large clientele for breakfast and sit-down lunch; it can inform its current customers about the new product through signs on the doors and table tents at the register and on the tables. In addition, it could offer a percentage discount for a “to go” lunch if customers brought in their receipt from a previous purchase from that day. This would encourage folks who came in for coffee or breakfast to return for lunch. Both suggested strategies rely heavily on the price element of the 4 P’s by offering coupons or discounts off of the new product.

The Tip Top Bakery should avoid a television marketing strategy. Although local television potentially could reach the target market, the high cost and the limited ability to track the response to the ad limits its usefulness to the bakery. If this marketing strategy was to be used, it should focus on the product itself, presenting the benefits of the new “to go” lunch options. It could include a price discount; however, since this marketing channel is passive, it would need to be a sale or a day of discounts rather than something specific to the person. Use of television does not make sense for the bakery regardless of the type of messaging used.

The Tip Top Bakery has a great opportunity with its new “to go” lunch product to reach new customers and create an enhanced loyalty among its current customers. By focusing the initial strategy on the target market of working professionals around its Manchester locations, Tip Top will be able to gauge the new product’s success before rolling it out to all of the locations. The new product fills a need and will be able to capitalize on the reputation of the bakery, two factors that will increase the likelihood of its success.

 

 

 

 

 

References

Berman, J. (2014, March). Buying your lunch is a terrible idea. The end. No more debates. The Huffington Post. Retrieved from http://www.huffingtonpost.com/jillian-berman/why-buying-your-lunch-at-_b_5020896.html

Manta. (2015). Companies in Manchester. Retrieved from http://www.manta.com/mb_51_ALL_CQE/manchester_nh?ftoggle-frontend-prod-on=abTests.revenue.responsive_12162014_control&utm_expid=82789632-30.8Ue3RXoXRoWAwC0cgSs_wg.1&utm_referrer=https://www.google.com/

The Nielsen Company (2015). ZIP code look-up. MyBestSegments. Retrieved from http://www.claritas.com/MyBestSegments/Default.jsp?ID=20&pageName=ZIP+Code+Lookup&menuOption=ziplookup#

Wolters Kluwer Law & Business (2015). Survey finds American workers spend an average of $3000 a year on coffee and lunch at work. Employmentlawdaily.com. Retrieved from http://www.employmentlawdaily.com/index.php/news/survey-finds-american-workers-spend-an-average-of-3000-a-year-on-coffee-and-lunch-at-work/

 
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