Marketing strategy on the sale of packaged ice
Ice is generally water that has been cooled to its freezing point to attain a solid-state. Considering the aspect of retailing ice, there is a market for this commodity on both large scales where it involves sales to cooperate companies and small scale where it involves local consumers. In large cooperate organizations involved in industrial production; ice can be used as a cooling component to cool machinery or maintaining a longer life cycle of perishable materials. Considering the small scale consumption, ice has a large variety of uses ranging from beauty where it is used for rejuvenation of skin cells, in sports where it is used to relieve or even in the entertainment and recreational facilities where it can be used to prepare cold beverages just to mention a few. The availability of only a few companies that supply ice to small scale consumers has created a market niche that requires an increased supply of ice to market to curb the increasing demand for the product. This has motivated the company to acquire an ice manufacturing company that solely sells in bulk to enable its venture in the business of retailing packaged ice to small scale consumers. Henceforth, the organization needed to come up with a marketing penetration strategy, market development strategy, and the value proposition to properly venture into the business.
Firstly, an appropriate marketing strategy known as a marketing penetration strategy is required as it is practical. This would enable the business to identify the most opportunistic method to access consumers through analyzing the market size, trends in the market, and potential growth of the business (Morgan et al, 2019). The marketing strategy would also enable the company to identify the competitors’ mode of supply, marketing strategies, and prices hence assist in evaluation on how to reach the target market. The initial strategy being considered is the use of vending machines that would be located on various access points and on every open store to enable the reach to many consumers as possible. The other strategy is to use social media platforms for advertisements and promotions to provide more information about the product to potential consumers. The internet would provide additional ways to spread the availability and accessibility of the product though blogs and updates on the company’s website. Additional promotional activities would also include the organization of social events to create more product awareness by offering business cards, brochures, and publicity through local magazines. The brand name will also play a major role in the marketing strategy as it would allow the partnership with the acquired company to use a known product name to be associated with the product that would encourage consumers to purchase the products.
Secondly, the introduction of a new product to the market requires a market development strategy that would allow the product to compete with similar merchandise in the market. The company, therefore, has come up with strategies to beat the competition in the market. Competitors solely sell ice chucks hence the company will gain the marketing edge by supplying blocked ice, cubed ice, and dry ice. The major competitors are also majorly based in the United State hence a stiff competition for the small consumer market the company seeks to venture to the South American and European market to access a wider potential market. The company would seek to develop additional manufacturing companies and establish an organized transport system that would facilitate the smooth distribution and delivery of the products to the new markets and regions. Vending stores would also be opened to act as distribution points and stores for the packaged ice products, and common stops such as petrol stations and retail stores such as supermarkets would be equipped with vending machines to ensure total accessibility of the products by potential consumers.
Lastly, the value proposition is to entice potential consumers to buy the company product by offering quality products at affordable prices (Sigurdardottir et al, 2019). This can be achieved through the use of catchy advertising slogans posted on billboards and televised commercials that would attract and constantly remind consumers about the product. This is just to differentiate the company’s products from that of the competitors hence setting a clear value proposition of the product.
In conclusion, the company marketing strategies like penetration marketing strategy, market development strategy, and value proposition are ways that provide the company with the appropriate measures on how to maintain a sustainable business in the packaged ice retail market as discussed.
Refences
Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), 4-29.
Sigurdardottir, M. S., & Candi, M. (2019). Growth strategies in creative industries. Creativity and Innovation Management.