MKT 421 Week 4 (250 words)

We will perform price skimming once we initially sell the product. As we scale, the price will get lower. We believe the target market is unique in that this opportunity is available. Given our target market’s socio-economic status, they are willing to pay a premium to support our cause as long we market our product accordingly.

Stage of Maturity Life Cycle

Discussion

Introduction

We will price skim due to the high costs of initial marketing, advertising, and distribution. Promotion is our main focus at this stage. We will try to enter smaller natural food stores in wealthier areas. Profit will be minimal.

Growth

Once we hit the growth cycle we can decrease costs and scale the lemonade. By this stage we hope to be in higher end and health conscious large grocery stores (such as Whole Foods).

Maturity

At this stage, we will venture into non-specialized grocery stores. We’ll have more competition due to our product becing established in the main stream consumer market. We will be able to lower prices even more due to lower costs. This will help us stay in the maturity stage for longer. Additionally, we will begin offering promotional ads (e.g. 2 for 1).

Decline

As sales decline and profits dwindle, we will offer even better promotional ads to sell off the remainder of our product. We will focus more on efficiency of production and distribution (opposed to increasing sales).