The marketing strategy for TBSL will enable the organization to connect with their consumers. Cravens and Piercy (2006) explain that marketing mix helps a business to define their business strategy as well as the equivalent activities to hasten the implementation of the market plan. In the TLS case, the target customers will be engaged in the evolving marketing mix for the business. The success of the business in giving one kid candy to needy children for each unit sold is a reflecting for the success of the marketing mix. This benefit is used by the business to illustrate the need for an individual to purchase their product as it will benefit a need/malnourished child.
Previously, TBLS was commonly known for the production of bars, where they produced kid bars for health-conscious individuals. Each bar purchased led to a giveaway of one bar to the needy children. The company produces the ‘tastiest’ snack which leads the company to donate a life-saving food packet that contains powerful peanut paste with a wide range of nutrients and vitamins that are particularly designed for the treatment of malnutrition. However, over time, through its collaborative partnership and innovative business model, the company has developed new product lines including gift cards, necklaces, bracelets, and T-shirts.
The new product line has increased its significant impact to malnourished populations. Although not related to the food industry, it is concerning its core mission which is saving lives. The product strategy in recent years has been transformed through partnerships with Patel, Grinnell, founders Devlin, and Ananse Village. Peltier (2017) explains that their granola bars are delicious, ethically sourced, sourced with 100 percent non-GMO ingredients, gluten-free, and other nutritional benefits.
The business targets healthy conscious consumers who are social responsible about the needy populations in the world. This is well placed I the packaging which is indicated that this bar saves lives. Consumers expect to find bars in retailers nearby which will be distributed from the manufactures to the retailers. However, to increase the convenience, the bar will be sold online through online sales. This will reduce the probability of overcharges from retailers who may charge 30% more than our unit price to attain their profits.
Currently, TBSL after producing their products distributes to retailers and delivery points through the air. At the delivery point, consumers can buy directly or order online for deliveries. It is also possible to order the products online from TBSL. From the production point, products are taken to TBSL partner, Edesia who distributes to the giving partners like Timmy Global Health (new partner in America) who in turn distributes to Guatemala (tentative). Another giving partner is Save The Children who distribute for any emergency response. Through Save the Children, the product is distributed to Africa, Haiti, and India through the local health clinics. In America, TBSL distributes their healthy snacks to 510 locations as illustrated below.
Figure1: Distribution of This Bar Saves Lives
These channels will also be used with the new bar but we are planning on increasing our online presence to potential consumers. In addition, majority of overseas individuals do not have access to our products which can be attained through more sales with Amazon, Targeter and other online platforms. Due to the known brand of TBSL, the new product will follow similar delicious, ethically sourced, sourced with 100 percent non-GMO ingredients, and gluten-free. The effectiveness of our place strategy is based on combining both direct and indirect distribution to ensure our product reach our consumers. This is unlike previous channel that was applying indirect distribution. This will first be tested through selective distribution where we will choose a number of retail outlets
TBSL applies a premium pricing strategy. It sets a high price for its products in comparison to alternatives in the market. They complement this form of pricing through two strategies. The first strategy is that they produce high-quality standards that guarantee the consumers that the products are worthy of purchasing. Secondly, they apply this pricing strategy to ensure that they complement products donated to needy children and families, both locally and internationally. It maintains this by following their generic strategy which helps it o stand out against competitors.
The two major competitors are the Kind Fruit and Nut at $12.00 and the Nature Valley Fruit and Nut at $4.98. Comparatively, This Bar Saves Lives and Nut costs way too high at $26.65 than the earlier bars. The three bars are of the same size nut with a high differing price.
Due to the high cost for TBLS, it is essential to continuously market the TBSL bars to ensure that the business maintains its competitive advantage. This will be by promoting the social advantage that purchasing the bar have on the needy children and families. Introducing another bar requires to consider the cost but not foregoing the core mission for the business which is to save lives. Due to this, I would follow a promotional strategy of social wellness and awareness of the community to encourage people, to purchase more. Adding more ingredients will be more expensive while reducing ingredient will negatively affect the quality of the products.
Due to the retailing industry that may put a higher margin than our selling price, their pricing should be different. For example, rather than selling a bar at $22, the retailers can be given a discount at $19 for buying in bulk. This will accompany a pricing procedure that no bar will be more than $25 as the traditional retailers will assist in reaching more clients. To calculate the Contribution margin, we will subtract variable costs from revenue. For example, the price for the bar is $22 and the unit variable price is $4 which results to the contribution margin of 22-4 which is $18.
I will communicate with my target market that purchasing a bar will not only satiate their hunger, but will also save a life. In the package, the company engraves the words, “This bar saves lives’ enhancing the appeal of the product to the consumers. It also applies a solid and rich color offset by bold font and sprightly African designs that applies colorful patterns and shapes that enhance the products or the ingredients I the package. Through this, a potential customer from a glance can make out what ingredients the product has and its health impact the product has. Through the packaging, a consumer can make out that the product uses natural ingredients.
The promotional mix for the organization comprises of the following main activities: sales promotions, public relations, and advertising. The business applies a buy one, give one model which although differentiates the business from others, and it poses the business at risk of economic development. This is because TBSL poses its success to the lives that it saves which in turn increases their collaboration and partnership with other organizations desiring to raise funds to assist the needy.
I will use the television as a channel to communicate with the children and the older population. For children, I will illustrate the health benefit that a child gets from consuming a bar. This will be coupled s significance to other children in impoverished region who cannot afford a bar but requires the peanut paste to increase their nutrients. On the aspect of the older population, our bar will be of benefit as majority of this population are fighting to live and eat healthy. Through demonstrating the benefits of the ingredients to their health, we will catch this customer base. For the teens, and the middle class persons, social media is the best channels where this group meets. This will be attainable by sharing persons consuming the products, corporate sustainability and other educational videos which will be liked and followed by this group.
Every time a consumer purchases a bar from TBSL’s organization partner Edesia, the partner produces a packet with full nutrient for donations. This is followed by TBSL’s Giving partners: Ananse Village, Meds & Food For Kids, Second Mile Haiti, the Foundation for International Medical Relief of Children, Save the Children, Action Against Hunger, and Edesia. Zandvliet (2014) explains that TBSL has partnered with Feeding America to feed Americans where they state that one in eight Americans is affected by hunger. For example, during Labor Day, each bar sold out was used to provide a meal to a local food bank. This form of strategy applied by the organization helps the majority of Americans to stretch their hands to the poor. Thus eating a bar is not only the taste in it but the feeling of assisting needy individual crowns.
The target population is healthy conscious individuals. This group is likely to search day and night for healthy products. Some of the social channels to apply include LinkedIn, Facebook, Twitter, Instagram and other social Medias channels. Many bloggers are training their followers the significance of health eating. We are planning on starting a blog that will train healthy conscious individuals and persons with special diets, or those trying to lose weight through healthy eating on some of the foods and snacks that are benefit for their health. Consumer engagement will effectively measure the effectiveness of our promotional strategy.
Implementation budget and timeline
The budget for the product is as follows:
Break-Even Point (Units) = Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)
Break-Even Point (Units) = Fixed Costs ÷ (22-4)
Break-Even Point (Units) = Fixed Costs ÷ 18
Break-Even Point (Units) = 895 /18
Break-Even Point (Units) = 49.7
Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 6). New York: McGraw-Hill.
Peltier, C. (2017). A Snack Bar Has Saved Over 17,000 Lives, And Troian Bellisario Is Here To Tell Us How. A PLus. [online] Available at: https://articles.aplus.com/a/troian-bellisario-interview-this-bar-saves-lives?no_monetization=true [Accessed 24 Jun. 2019].Zandvliet, B. (2014). This Bar Saves Lives. Dieline. [online] Available at: https://thedieline.com/blog/2014/8/15/this-bar-saves-lives [Accessed 24 Jun. 2019].
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