The new Kraft Mango Marinade will have a pricing strategy consistent with that of the other Kraft A-1 marinades in its line. Underpricing it could make it appear to be deficient in some way, and overpricing it could eliminate customers that would have otherwise been willing to try it as a result of enjoying other A-1 marinades.
As with the introduction of other new products, Kraft should underlay its pricing strategy with concomitant promotional strategies that complement and reinforce the pricing. One of these would be full-page announcement-type magazine ads that introduce the Mango Marinade and provide a recipe it can be used in. The ad would also mention in smaller print the other A-1 marinades in the line, as a way of placing the product. Another promotional strategy is the introductory coupon designed to be used on the new product only. The coupon can be included with the ad or issued by itself in a regular Sunday coupon section of the newspaper. The idea behind the coupon is to offer the customers a monetary incentive in the form of a bargain, to get them to try the new product. The final option is to offer a coupon for the new product that is also good on any A-1 marinade in the line. The strategy here is to entice the customer to buy the new marinade but to settle for any marinade purchase if the customer is not interested in the Mango Marinade. In either case, the strategy is successful because it promotes awareness of the product.
The product will move through the product life cycle in a somewhat different manner from the other A-1 marinades because it is not a traditional steak marinade. The pace that it moves through the cycle is difficult to predict with any accuracy, but it can be expected to move rapidly through the introduction phase, gain increasing numbers of customers as it continues to be tried out and promoted, and then begin to slow down somewhat as the market stabilizes and the product becomes ...