Non-Price Competition

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Non-Price Competition – competing with the competition using other strategies apart from price (i.e. packaging, “sex sells” and sales promotion). For my business I am going to be using Cost-plus pricing. I have chosen this one because I feel that it is realistically possible for my business. I hope to achieve an approximate profit margin of 100 for the first 3 months. I also hope to use Non-Price Competition as well, as I feel that in my business I am going to be able to achieve this from the beginning. I can package my products differently, and I hope to offer excellent customer service by employing friendly staff.

Place In this task I am going to be discussing where I am going to locate and my business and why I am going to do this. An explanation of the main channels of distribution and the methods of transport will also be included. I will also include a map of where my business is going to be in relation to my competition. The main channels of distribution are: Directly to the Consumer Products sold directly to the consumer. For example, mail order catalogues and door-to-door sales (Avon and Betterware). Directly to Retailers Products taken from the manufacturers to the firms, selling them to the customers. Supermarkets store their products and then distribute them to individual stores.

Through Wholesalers Used by smaller shops, as they do not often order enough stock to get products directly from the manufacturer. The wholesalers will sell smaller quantities to the retailer and then they will sell them onto the consumer. Omitting Retailers Wholesalers receive goods from the manufacturer and they sell them directly to the customer. These types of business are often located in densely populated areas. I am going to use “through wholesalers” method of distribution because I feel that this will be the easiest for my business and will make me the most money. I am going to get my products delivered to me by “road” (lorry, most probably) as this is probably the only way that the products I am going to be selling are delivered to businesses in towns.

I am going to locate my business in the centre of Seaford, down the main street as I feel I am going to attract most business here and also I am going to get ‘passers by’ trade as well as people who will come into the shop looking for specific things. My competition is located close to my business, and I feel that this is an effective way to compete with them. If they were located far away, then perhaps consumers would be less likely to look around for the best price/product/promotional offers.I am going to be discussing the key issues of my marketing campaign and what decisions I have made regarding them.

My main marketing objectives for my business are going to be to analyse the market by doing market research and therefore being able to supply what the customers want. I will be publishing a questionnaire to discover public demand. I have drawn up a research plan, which shows the other sources I am going to be looking into. In terms of pricing strategy, I have chosen to use cost-plus pricing, with non-price competition. I feel that a combination of the two will not only be effective but will also give me the opportunity to show that my business really can be a success without having to provide rock bottom prices.

My business will be located in Seaford, as I know the area well, and due to this, I will be able to use my knowledge of the area to promote my business and its products effectively. Through sales promotion and advertising, I feel that those who are likely to become customers will see my businesses adverts. In terms of product range, I have decided to select ranges that are not tested on animals, that can be sold cheaper than the recommended retail price (RRP) and most products will be branded. For promotion, I felt that sales promotion and advertising through the local press would be the best ideas. These are simple, effective ways of promotion and are used by many other companies in their own promotions.

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