GCU Lees Artificial Flowers Product and Pricing Strategy Question
ANSWER
Part 1: Marketing Differentiation and Product Strategy
Introduction: Lee’s Artificial Flowers is a unique product created by Lee Jones, offering patented artificial flowers that not only look real but also emit authentic scents, mimicking the fragrance of real flowers. Lee’s company is at a pivotal point, having gained attention and a business loan of $500,000 due to media coverage. The challenge at hand is to develop a robust product and pricing strategy to take the business to the next level.
Differentiation Attributes:
- Scent Authenticity: One of the key attributes that differentiates Lee’s Artificial Flowers from competitors is its ability to replicate the authentic scents of real flowers. Lee’s flowers offer an olfactory experience that sets them apart.
- Longevity: Unlike real flowers that wither and expire quickly, Lee’s artificial flowers are designed to last indefinitely, making them a sustainable and long-lasting gift choice.
- Customizable Scents: Lee’s flowers offer the flexibility of changing scents through replaceable cartridges, allowing customers to enjoy various fragrances according to their preferences.
- Eco-Friendly: Lee’s commitment to the environment resonates with eco-conscious consumers. The idea of preserving flowers without plucking them aligns with sustainability values.
Packaging and Labeling:
The packaging of Lee’s Artificial Flowers should reflect the product’s premium quality and eco-friendliness. Consider using recyclable and biodegradable materials for packaging. The label should prominently feature the scent options, emphasizing the unique scent authenticity of the product. Imagery of vibrant, realistic-looking flowers should adorn the packaging to showcase the product’s visual appeal.
Proposed Product Portfolio Design:
- Width: Lee’s should offer a wide range of flower types to cater to different preferences (e.g., roses, tulips, lilies, daisies).
- Length: Within each flower type, offer various sizes and arrangements to accommodate different occasions and budgets (e.g., single stem, bouquets, centerpieces).
- Depth: Offer a variety of scents for each flower type, allowing customers to choose their preferred fragrance.
- Consistency: Maintain consistency in quality and scent authenticity across the entire product portfolio.
Part 2: Integrating Service and Branding
Service Integration Using Five Determinants of Service Quality:
- Reliability: Ensure that scents are consistently authentic and long-lasting. Provide clear instructions for replacing scent cartridges.
- Responsiveness: Offer prompt customer support for inquiries and issues related to product performance or replacement parts.
- Assurance: Guarantee the quality and durability of the artificial flowers with a warranty. Provide clear information on the environmental benefits of choosing Lee’s products.
- Empathy: Train customer service representatives to empathize with customers’ needs and preferences, helping them choose the right flowers and scents.
- Tangibles: Enhance the overall product experience with elegant packaging and clear labeling that conveys quality and authenticity.
Branding:
Brand Mantra: “Elevate Nature, Embrace Forever.”
Secondary Sources of Brand Referencing:
- Customer Testimonials: Showcase reviews and stories from satisfied customers on the website and marketing materials, emphasizing the emotional connection they have with Lee’s Artificial Flowers.
- Influencer Partnerships: Collaborate with eco-conscious influencers and lifestyle bloggers who can authentically promote the brand’s values and products.
- Environmental Certifications: Highlight any eco-friendly certifications or sustainability awards the company receives to reinforce its commitment to the environment.
Incentives to Market the Product:
- Subscription Service: Offer a subscription model where customers receive fresh scent cartridges regularly, incentivizing them to become repeat buyers.
- Referral Program: Encourage customers to refer friends and family by offering discounts or free products for successful referrals.
- Limited Edition Collections: Create exclusive, limited-edition flower collections with unique scents to drive excitement and urgency among customers.
Pricing Goals Using Four Common Pricing Objectives:
- Profit Maximization: Initially, Lee’s may aim to maximize profits by setting prices slightly higher than competitors, considering the unique scent feature.
- Market Share: To gain a significant market share, Lee’s could adopt a penetration pricing strategy initially, offering competitive prices to attract a larger customer base.
- Customer Value: Emphasize the value proposition of long-lasting, authentic-scented flowers to justify premium pricing.
- Competitive Parity: Monitor competitors’ pricing and adjust prices to stay competitive while maintaining profitability.
Recommended Pricing Method:
Given the unique nature of Lee’s product and the need to communicate value effectively, a value-based pricing method is recommended. This method considers the perceived value of the product to customers. Lee’s should conduct market research to understand how much customers are willing to pay for the combination of realistic appearance and authentic scents. Pricing should reflect this perceived value, allowing Lee’s to capture a fair share of the market while maintaining profitability.
In conclusion, Lee’s Artificial Flowers has a unique product that can be further differentiated through scent authenticity, sustainability, and a comprehensive product portfolio. Integrating quality service, effective branding, and strategic pricing will enable Lee’s to achieve its generic goals and take the business to the next level.
QUESTION
Description
Lee’s Artificial Flowers* – The Gift That Keeps on Giving
The company is struggling to develop a product and pricing strategy.
In 2021, Lee Jones put the final touches on a product she had worked on for years in her garage. Lee graduated with a degree in chemistry from a well-known school in Indiana. However, she has always had an entrepreneurial spirit. Initially called Lee’s Artificial Flowers, the product broke new ground by creating patented, artificial flowers that look real and smell like a flower. In other words, roses smell like roses, and tulips smell like tulips. However, Lee’s flowers will never expire. The scent typically lasts three months and can be replaced with new scented cartridges. As a lover of flowers and the environment, Lee has always felt flowers should remain on the earth.
She launched a website and opened a small store in a strip mall at the beginning of 2022. With modest sales, Lee hired several employees to assist with manufacturing, sales, and administrative duties. In the summer of 2022, a popular morning show interviewed Lee about her new product. This interview led to lots of other popular coverage on television, and in magazines, blogs, and podcasts. Because this product was starting to break on a national scale, she could secure a business loan for $500,000. Lee’s biggest concern was her lack of business knowledge, mainly in marketing.
Lee has just hired you as a marketing manager/consultant to assist her in taking the business to the next level. In your initial consultation with Lee, she suggested that many sales were purchased as gifts. Another segment of customers applied to the home furnishings category. The raw materials required for artificial flowers are paper, cotton, parchment, latex, rubber, sateen (for large, bold-colored flowers and arrangements), and dried materials, including flowers and plant parts and berries, feathers, and fruits. For more upscale silk flowers, silk, rayon, and cotton are the fibers of choice. The cartridges that provide the scents are produced in Lee’s manufacturing facility. Lee believes her company needs a better product and pricing strategy. Lee is currently using a cost-based pricing strategy.
Generic Goals:
- Sell several hundred thousand units.
- Create awareness of new product line to new, prospective clients.
- Incorporate digital marketing.
- Hire more employees.
- Target B2B clients.
- Identify the best distribution model for selling to customers.
Part 1
Checklist:
- Provide a brief introduction to your selected scenario and define the problem.
- Describe attributes of how marketers can differentiate their products from their competitors.
- Explain several attributes to your chosen scenario to differentiate your product.
- Explain the packaging and labeling for your product.
- Design a proposed product portfolio design, including width, length, depth, and consistency similar to Figure
- Part 2
- Integrate a service with your product using the five determinants of service quality. Provide specific examples for each determinant.
- Describe the concept of branding.
- Create a brand mantra for your product.
- Design secondary sources of the brand referencing similar to Figure 10-1, using specific examples for your product.
- Recommend three incentives to market your product to your customers.
- Explain the pricing goals using the four common pricing objectives.
- Recommend a pricing method
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