Assignment task:
Hi I am working on the below scenario and need some help with explaining the questions about Target market price sensitivity-
Product- Your product choice is: "healthy" carob (chocolate substitute) bars
Persona is high-end people wanting to eat healthy on the go.
Project Scenario:
Chocolate Bliss started as a small family-owned store in Seattle, Washington, in 1976. While once a boutique chocolatier selling handmade "secret family recipe" chocolate bonbons, the company today has a wider variety of product offerings, including boxed chocolate candies, chocolate baking products, and carob (chocolate alternative) candies and health bars. Chocolate Bliss products are sold online and in their stores to consumers and other businesses, specifically grocery stores, throughout the Northwest.
The company has maintained its "secret family recipe" brand, even as it has expanded its product offerings, and today enjoys strong brand awareness in the states where it is sold.
The company's primary competitors are:
Ghirardelli Chocolate Company: Chocolate Bliss's higher-price-range baking products, sold to grocery stores, compete directly with Ghirardelli. Chocolate Bliss also competes with Ghirardelli for its boxed chocolate candies sold in their stores and online to consumers, and sold to grocery stores.
Nestle´: Chocolate Bliss's mid-price-range baking products, sold to grocery stores, compete directly with Nestle´.
Rise Bar: Chocolate Bliss competes with Rise Bar for its carob (chocolate alternative) products sold in their stores and online to consumers, and sold to grocery stores.
Chocolate Bliss is financially healthy and has plans to expand into the Midwestern United States. This expansion will include the launch of a new product.
You have been with the company for a few years and have been selected to be on the team that will develop a marketing plan for the new product launch. The executives at Chocolate Bliss will use the marketing plan to make decisions about how to best use the marketing budget to ensure a successful product launch, so you need to have sound research and reasoning to support your work that will contribute to developing a marketing plan. You also realize that the marketing plan is not just about a successful product launch; it is about building the Chocolate Bliss brand and positioning the company strongly against its competitors, especially when it comes to price point.
Target-market price sensitivity: Target markets can vary widely both in 1) their available budgets for your offering and 2) their desire to get a deal or buy a more prestigious product. A target market's perceptions about low prices and high prices should be taken into consideration when setting pricing.
Explain the pricing factor of target-market price sensitivity. What is this factor? You should consider consumers' perceptions about low prices and high prices. How your pricing factor is used to determine your approach to pricing. This explanation will support the team in selecting a price for Chocolate Bliss's new product.