PUG Marketing Lees Artificial Flowers Product & Pricing Strategy Essay
ANSWER
Part 1: Differentiation, Packaging, and Product Portfolio
Introduction: Lee’s Artificial Flowers is a company founded by Lee Jones, offering patented artificial flowers that look and smell like real flowers, with scents that can be replaced. Lee is seeking assistance in developing a product and pricing strategy to take her business to the next level.
Problem: The primary problem is to develop a product and pricing strategy that differentiates Lee’s Artificial Flowers in the market, creates awareness, incorporates digital marketing, targets B2B clients, and identifies the best distribution model.
Attributes for Product Differentiation:
- Realistic Appearance: Lee’s Artificial Flowers differentiate themselves by closely mimicking the appearance of real flowers, including accurate colors, textures, and lifelike details.
- Scent Technology: The patented scent technology that makes the artificial flowers smell like real flowers sets Lee’s product apart from competitors.
- Longevity: Lee’s flowers never expire, providing long-lasting beauty and value to customers.
- Sustainability: Emphasize the environmentally friendly aspect, promoting the idea that real flowers should remain on the earth.
- Customization: Offer a wide range of flower types and scents, allowing customers to personalize their choices.
Packaging and Labeling: The packaging should reflect the premium nature of the product, with features such as:
- Elegant and eco-friendly packaging materials.
- Clear windows to showcase the product.
- Detailed information on scent replacement options.
- A label indicating the patented scent technology.
- Prominent branding with a focus on quality and sustainability.
Proposed Product Portfolio Design:
- Width: Offer a wide variety of flower types, including roses, tulips, lilies, and seasonal arrangements.
- Length: Each flower type should have multiple variants in terms of size, color, and scent options.
- Depth: Expand the product depth by offering complementary items like vases, decorative pots, and scented candles that enhance the flower experience.
- Consistency: Maintain a consistent quality standard across all products to build trust and brand loyalty.
Part 2: Integration of Service, Branding, and Pricing
Integration of Service with the Product: Using the five determinants of service quality (Tangibles, Reliability, Responsiveness, Assurance, and Empathy), Lee’s Artificial Flowers can provide exceptional service by:
- Tangibles: Ensuring attractive and informative packaging.
- Reliability: Offering consistent product quality and scent replacement options.
- Responsiveness: Providing responsive customer support for inquiries and issues.
- Assurance: Demonstrating the product’s patented technology and sustainability efforts.
- Empathy: Understanding customer preferences and offering personalized recommendations.
Branding: Brand Mantra: “Bringing Nature’s Beauty Home, Forever.” This mantra emphasizes the company’s mission to provide realistic and long-lasting floral beauty while preserving the environment.
Secondary Sources of Branding:
- Social Media: Share customer testimonials and user-generated content showcasing the flowers’ beauty and longevity.
- Blog: Create informative content about the artistry behind artificial flower production and the environmental benefits.
- Partnerships: Collaborate with eco-conscious organizations and influencers to promote sustainability.
Incentives to Market the Product:
- Subscription Service: Offer a subscription model with discounts for regular scent cartridge replacements.
- Referral Program: Reward customers for referring friends and family.
- Limited-Edition Collections: Create exclusive, seasonal flower collections to generate excitement and urgency.
Pricing Goals and Method:
- Pricing Goals: Lee’s Artificial Flowers should focus on achieving both market penetration and profit maximization. Initially, aim to penetrate the market with competitive prices to gain a significant customer base. As the brand and product reputation grow, gradually increase prices while maintaining perceived value.
- Pricing Method: Implement a value-based pricing strategy, where prices are determined based on the perceived value of the product to the customer. Consider factors like the premium quality, patented scent technology, and sustainability to justify pricing. Periodically analyze competitors’ pricing to remain competitive while differentiating on value.
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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