Marketing a New Product via Woolworths Limited (Essay Sample)

Marketing a New Product via Woolworths Limited
Name
Instructor
Course
Institution
Location
Date

Executive Summary
A new product, tea and honey mix is to be distributed via Woolworths Limited because of its position in the Australian grocery market share. The product has several health benefits, which would entice consumers to buy to avoid large intake of added sugar. The marketing strategy would give the health benefits and use a value-based pricing strategy to grow market share in the country. Further, the marketers would have a team of real people to manage the social media sites to improve interpersonal interactions with clients. The team would respond to all consumer concerns in real time to enhance clients’ satisfaction.

Contents
 TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc430952784"
Introduction  PAGEREF _Toc430952784 \h
4
 HYPERLINK \l "_Toc430952785"
Company Summary  PAGEREF _Toc430952785 \h
4
 HYPERLINK \l "_Toc430952786"
New Product Rationale  PAGEREF _Toc430952786 \h
5
 HYPERLINK \l "_Toc430952787"
Target Customer Description  PAGEREF _Toc430952787 \h
6
 HYPERLINK \l "_Toc430952788"
Marketing Mix Strategy  PAGEREF _Toc430952788 \h
6
 HYPERLINK \l "_Toc430952789"
Conclusion  PAGEREF _Toc430952789 \h
7
 HYPERLINK \l "_Toc430952790"
List of References  PAGEREF _Toc430952790 \h
8

Marketing a New Product via Woolworths Limited
Introduction
The introduction of a new product in the market requires aggressive marketing to create product awareness in the target market. One of the best ways to market a new product is to collaborate with established retailers in the country because they have access to a high number of prospective clients. The new product honey and tea mix would be sold through Woolworths’ Limited because the retailer serves many clients on a daily basis. As a result, placing the product on the retailer’s shelves would increase accessibility to clients since the retailer has stores in many different parts of Australia.
Company Summary
Woolworths Limited is the largest retailer in Australia and New Zealand in terms of sales and market capitalisation. In Australia, it is the largest retailer of food products. The business was established on 5 Dec. 1924 when it opened its initial store in the old Imperial Arcade Pitt Street, Sydney. The founding members of the retailer are Ernest Williams, George Creed, Cecil Scott Waine, Stanley Chatterton and Percy Christmas. The store adopted technology from the initial stages as it used a cash register that printed receipts to shoppers. Initially, the firm recorded slow growth given that by the end of the 1920s it had opened one additional store. However, it recorded tremendous growth in the 1930s despite the depressions that affected the world at that time (Woolworthslimited.com.au 2015). Woolworths Limited became the largest retailer of food materials in Australia in 1985 after it acquired one hundred and twenty-six Safeway stores. According to Ma (2014), Woolworths controls about thirty-nine percent of Australian market share in the grocery sector, which is ahead of Coles with thirty-three percent. Therefore, the two retailers control seventy percent of the eighty-two billion U.S. dollar grocery sector. Besides the grocery sector, Woolworths Limited has interests in the liquor and petrol business. Notably, it signed an agreement with Caltex in 2003 where it offers petrol at discounted prices. Additionally, the retailer operates more than one thousand and three hundred liquor stores in the country. As a result, the retailer’s access to clients is enormous because it is an established brand in Australia.
New Product Rationale
The new product, honey and tea mix, is a healthy product given that it uses natural ingredients of honey sourced directly from the producers. The product discourages the use sugar as the latter has numerous health complications on consumers despite the fact that it does not have any essential nutrients. Added sugars such as fructose and sucrose are harmful to users’ teeth. At the same time, added sugar affects metabolism given that the liver can only metabolise it in significant amounts. Overloading the liver with sugar leads to Non-Alcoholic Fatty Liver Disease, which is growing health concern in many developed countries. Additionally, excessive use of sugar could lead to insulin resistance, which causes type II diabetes. Therefore, the introduction of a product that reduces sugar intake has massive health benefits to the consumers (Bray 2012). On the contrary, honey has several health benefits that include memory boosts, alleviation of allergies, aids sleeping, suppresses coughs and provides essential nutrients to the body such as carbohydrates (Eteraf-Oskouei and Najafi 2013). Therefore, the products would improve the lives of the users as the consumers enjoy their tea.
Target Customer Description
The primary target market for the product is people from all age groups who are sensitive about their health. The product would be marketed as a healthy product; thus, persons who love tea, but are worried about their sugar intake would have an alternative product. Nevertheless, it would have an emphasis on people at risk of developing type II diabetic given that the condition affects many people in Australia. Moreover, the high number of elderly citizens with chronic sicknesses provides an ideal market for the product because of the health benefits it brings to the consumers (Morgan, Parish, & Deitz 2015).
Marketing Mix Strategy
The product would adopt a value-based pricing strategy because it offers solutions to problems with concerns about their daily sugar intake. However, the pricing would not be exploitative because, as a new product, it is imperative to convince people to try the product to grow market share (Morgan, Parish, & Deitz 2015). Promotion would be via social media given that the majority of Australians have access to Internet-enabled devices such as mobile phones and PCs. Furthermore, social media offers an affordable marketing strategy. For example, it can be used by product manufacturers without huge financial resources to support traditional marketing techniques such as television, radio, and print media (Sacks et al. 2014, p. 317). However, the marketing team would conduct marketing promotions at the point of sale to give prospective clients a chance to sample the product.
Woolworths Limited has more than eighty hundred stores in Australia; therefore, the collaboration with the retailers would relieve distribution of the product. Shoppers at the retailer’s stores would have access to the product to grow the market share. At the...