Background Information on Yeti The Yeti Rambler has taken off where it’s more expensive and luxurious brethren, the Yeti cooler, has left off. The explosion of demand for this particular cup is due to its highly engineered design, which features 18/8 stainless steel material and a double walled vacuum insulation, which keeps a drink hot or cold twice as long as plastic cups (“Frequently asked questions”, n.d.). The cutting edge cup also features a gasket lid that locks beverages inside of the cup, allowing one to move freely without fear of spilling (“Frequently asked questions”, n.d.). Saporito (2016) narrates the Yeti Coolers story as it was started in 2005 by Ryan Seiders and his brother Roy Seiders as a way to provide premium coolers …show more content…
Kotler and Keller (2014) develop on what product represents in the marketing mix, as the idea centers around its design, quality and packaging. Continuing with the Four P model, price should be considered when marketing a product. The price component asks one to determine the list price, discounts, allowances, and payment period of a product (Kotler & Keller, 2014). Finally, Kotler and Keller (2014) list promotion and place as the final two variables associated with the older Four Ps. Promotion deals with how a product is advertised and what type of sales force will be utilized, while place is associated with the channels and locations for which your product will be featured (Kotler & Keller, …show more content…
While many manufacturers are focused on driving the price of their product down, Yeti is focused on issues such as extending the ice life inside of a customer’s cup and making sure that their lids are 100% leak proof (“Frequently asked questions”, n.d.). According to Saporito (2016), price is a large factor in the Yeti appeal, this is demonstrated when he states. “Yeti is the Range Rover of cold. Its overbuilt Sherpa coolers hit the market in 2006 priced between $250 and $300 a pop, an astounding premium--"10X," as Roy likes to label it--over the average Igloo or Coleman” (para. 4). The pricing appeal of the Yeti is consistent with most luxury items sold, the consumer associates a higher price with a greater quality product. Promotion of the Yeti brand is done through various avenues, but their most successful marketing has come from customer testimonials and YouTube videos that demonstrate their products strengths (Cooper, 2013). Hence, a more authentic feel is demonstrated from the customer reviews. Finally, the placement of the Yeti brand is found in locations where those who spend a lot of time outdoors frequent (Saporito, 2016). The marketing angle was first toward the rural feed stores but then quickly transitioned to large outdoors chains to gather the outdoor sports market (Saporito, 2016). Marketing is an ever evolving field, just as the four P’s have changed, so must Yeti’s
Our marketing plan is directed to a niche market which is beneficial for our company and our product line. There is a specific target market that we are confident we can provide for and initiate new product lines that can handle weathering from the elements. YETI can be viewed as a necessity, meaning that the more disposable income an individual has, the more YETI product purchases. Consumers that normally would never spend as much as $400 on a cooler are now also purchasing YETI coolers due to constant exposure to YETI products and the perceived benefits of owning our products. YETI also has the ability and opportunity to reach untapped markets overseas, as our products can be used by anyone that has a need to keep perishables cold for an extended period of time.
The 4 Ps of the marketing mix are: Product, Promotion, Price, and Place. The marketing mix puts the right products, at the right price point, in the right place, at the right time. The following examines how Claire’s Chocolates optimizes its marketing mix (Yoo, Donthu, & Lee, 2000, 195-196).
In terms of social factors, the company branding plays a large role in the perception of the business. This can sway a consumer’s preference in flavored iced tea drinks.
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
An interview held on April 10, 2013 with a customer who is not a fan of energy drinks described the logo as being clever in design and the overall appearance as colourful. Interviewee also stated that the oval appearance of the can design with graphics is very creative, appealing to the m...
In marketing there is a mix which consists of types and amounts of controllable variable that a company will use over time. (Wensveen, 2011) The four variables are known as the “Four P’s”, these variables are:
When creating a marketing mix for a product, the company needs to look at the 4Ps: product, place, price and promotion (Eugene McCarthy, 1960). “When considering the 4 P’s of the GoPro, it is clear that the company’s success has been due in large to such great marketing.” (Suki Chan, 2013)[1].
Kotler, P. & Keller, K.L., (2009), A Framework for Marketing Management. 4th edition, Pearson Prentice Hall: USA
Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Essentials of marketing (6th ed.). Cincinnati, Ohio: South-Western College Pub..
“In 1960, McCarthy expanded what Neil Borden had previously coined the Marketing Mix [1] (now often associated with the "4 Ps") as 4 controllable variables the company puts together to satisfy a target market: product, price, place and promotion.[2]”
The marketing mix helps a company define the marketing elements for successfully positioning a market offer. The four P’s model, one of the best-known models, helps a company define its product marketing options in terms, place, price and promotion (MindTools.com, 2010). To enhance their impact with their target market, companies often use this model when you are planning a new venture, or evaluating an existing offer. As companies start out in an industry, many marketers learn about putting the right product in the right place, at the right price, at the right t...
A marketing mix is what businesses use to detail the main functions of business marketing and do into further explanation as of how those functions influence the success or failure of a business. There are several different marketing mix tools, the four P’s is a very useful tool explaining the main functions of a marketing mix. A basic way of describing the marketing mix is the four P’s: Product,Place, Price, Promotion. A very important part of understanding how to use this tool is asking yourself questions that will help you understand each individual part of the marketing mix. Many people use this process to check their existing business to see if there are improvements to be made. The four P’s marketing mix system could also be used before starting a new business or offering a new product to give yourself guidelines on how to run your new business.
The four Ps of marketing are product, price, place, and promotion. Product is the physical product or service that the company is selling. Price is what the company is charging its customers for the product. Place is where the company makes the product available to consumers. Promotion is what the company is doing to promote its product to persuade customers to buy it.