Thursday, November 18
Topic
- Just (B) Case Discussion
Objective
- To engage in the process of developing a positioning statement and an elevator pitch for a marketing-mix variable of a new-to-the-world product
Discussion Questions
- Aspirational positioning statements capture companies’ intentions for products by expressing what companies hope consumers will think of them. Using the following sentence structure, write a positioning statement for the chicken nuggets described in Yemen, Boichuk, and Cian (2018b). Further, justify the decisions you made for the elements in square brackets.
For [target customers], JUST [product name] will be the [meaningful point(s) of difference] choice compared to [relevant competitive set] because [supporting facts].
- How should JUST bring the chicken nuggets described in Yemen, Boichuk, and Cian (2018b) to market? Choose a single element of the marketing mix and create a 60-second elevator pitch for JUST Co-Founder and CEO Josh Tetrick, who will be video conferencing into class for this session.
Prepare an answer to this question as you would if you were working on a consulting project for Tetrick in “the real world,” with the goal of persuading him to set the marketing mix variable you focus on in the way you recommend doing so. Ask for the highest realistic level of commitment you can (e.g., agreement with the decision you land on) and try your best to receive his approval during class time.
The questions posed in the following paragraphs should help you develop a seemless and concrete recommendation for one element of bringing the chicken nuggets described in Yemen, Boichuk, and Cian (2018b) to market. You are neither expected to answer all of them, nor are you limited to them (much more has been written on the topic of making trade promotion more productive in the archives of HBR). But the questions stem from advice given in Quelch (1983) that has stood the test of time and (more than 35 years later) this advice continues to help food and beverage companies develop action plans for new products. Thus, addressing one or a couple of them, reading Quelch (1983), and referencing additional sources should help you develop an exemplary elevator pitch for Tetrick.
Product: Taking market factors into account, define a realistic set of specifications and/or thresholds for nutritional and sensory attributes that JUST’s chicken nuggets need to have. What should JUST name its chicken nuggets? What package size(s) and flavors should JUST offer? How many stockkeeping units should the full portfolio of chicken nuggets have in it? What principles should guide JUST’s package-design decisions for its chicken nuggets? Consider applying these principles to determine how JUST should design its packaging. What should the packaging look like, and what materials should be used to make it? Are there certain labels or claims that JUST should make sure to include on the packaging?
Pricing: Which pricing strategy should JUST adopt for its chicken nuggets: everyday low price (EDLP) pricing, high-low pricing, or a hybrid of the two? For each stockkeeping unit of chicken nuggets that you believe JUST should bring to market, what should its manufacturer suggested retail price be? What temporary price reductions should JUST offer to “encourage retailers and wholesalers to increase purchase commitments and build inventories” (Quelch 1983, p. 130)? For what package sizes should they offer these discounts? What pass-through rate should JUST start negotiations at and strive to attain from retailers for the temporary price reductions they offer? When, how often, and for how long should JUST offer temporary price reductions?
Promotion: What advertising and social media activity should JUST invest in to promote its chicken nuggets? What merchandising support (e.g., features in retailers’ weekly circulars, in-store displays) should JUST aim to attain from retailers? In particular, consider setting targets for the size, location, and timing of features and/or in-store displays. What slogan or message should JUST use to promote its chicken nuggets?
Placement: What retailers and regions of the United States should JUST target for the launch of its chicken nuggets? Should JUST plan to distribute its chicken nuggets intensively or selectively when they first hit the market? How much of JUST’s focus should be on increasing market share in the retail and food-service sectors, respectively? Where in retail locations should JUST aim to gain initial display space for its chicken nuggets? How many facings should JUST aim to secure in a given grocery store? What restaurant types should JUST target in the food-service sector: fast-food or full-service restaurants?
Assignments Due
- Answers to today’s discussion questions
- After signing into Blackboard, submit your answers to this folder
Assignments Made
- Answers to the discussion questions for our next session of marketing