The Canadian government banned the rigid plastic bottles in 2008 due to BPA. Walter on shopping wanted to buy BPA free bottle for gifts, but she did not find any such bottle. She thought about the stainless steel bottle and hence started the business of stainless steel bottle for infant feeding. The change in customer preference led the company's popularity to the height. Many buyers including Costco, specialty stores and mass merchandiser plunged into the booth of Walter at juvenile show to purchase the stainless steel bottles. The company had first mover advantage in the industry. Costco offer the OrganicKidz to sell the bottles of the company, but Walter without doing paperwork and profit forecasting refused the offer and went to specialty stores and mass merchandisers for marketing her very new stainless steel bottles which were BPA & PVA free. Company faced the dilemma to accept or reject Costco proposal or produce a new design especially for sale to Costco. The creation of a new design bottle for Costco overweight other two options and hence been recommended.
Executive summary2
Background4
Problem statement4
Situation analysis4
Marketing mix5
SWOT Analysis6
PEST Analysis7
Analysis of alternatives8
The Costco proposal8
Recommendation9
Implementation9
OrganicKidz: Marketing Strategy
Background
OrganicKidz is basically belongs to baby care supplies industry. The company has first mover advantage from plastic bottles of feeding infants to the stainless steel feeding bottles. The polycarbonate bottles were banned by Canadian government in April, 2008 as they were leaching Bisphenol-A (BPA) on heating. BPA in large amount is really harmful for humans because this chemical is also known as endocrine disrupter. OrganicKidz founder Walter introduced the stainless steel bottles for the very first time in 2008. The company is now operating in more than 12 countries in Europe, Asia and North America. The company got overwhelming response on the launch, Walter was in frenzy how to decide where to sold and what to do?
Problem Statement
Walter being the founder of OrganicKidz was facing problems about the future market plan, distribution channels, and retail channels at juvenile products show in 2009. The company had to make some key decisions regarding to the product promotion. Costco was interested in taking distribution and retailing of the bottles and the founder of OrganicKidz was in wonder that how should she respond.
Situation Analysis
The new introduced product of stainless steel got overwhelming response and became popular fast. The demand of the product in market and popularity attracted Costco to make a deal with the founder of OrganicKidz to sell its product. The company had many options between retailers, specialty stores and large warehouse club chain. The company was succeeded in capturing about 95% market share of infant feeding bottles. We will evaluate the company's early success by analyzing its market mix, SWOT and PEST.
Marketing Mix
Marketing mix is the combination of product, price, place and promotion which are generally known as 4P's. we will evaluate the marketing mix of OrganicKidz below:
Product
OrganicKidz was the first company to introduce stainless steel bottles in the market which were BPA ...