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Kinetic Sand Marketing Case Study

Essay by   •  March 18, 2016  •  Case Study  •  1,050 Words (5 Pages)  •  1,798 Views

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IV. Marketing Tactics


Currently Kinetic Sand retails a product that is tailored for current economic conditions and social trends. Following the next two business years, Kinetic Sand plans to advance by increasing market share by 75% in retail sales in 2 years by changing its distribution intensity to intensive to place its product in the maximum number of outlets.  Due to this decisive marketing goal the best option to achieve this goal is through realizing the potential of market penetration. Grimsley (2014) describes market penetration as one of four expansion strategies of the Product-Market Growth Matrix stating that “Market penetration occurs when a company penetrates a market in which current or similar products already exist.” Supporting evidence for the careful selection of market penetration is provided by DiGiacomo(2013) who exclaimed that the toy market is a highly developed area where existing markets and existing products make a fierce competition to appeal to their target customers. This means that Kinetic Sand needs a competitive advantage in order to successfully profit from this sector. Being unique it’s many of its properties such as uncompromising safety, cleavability, and active stimulation all of which can be easily converted into effective advertising points to assist with market penetration. Compared to many toy manufacturers’ who lack desirable characteristics in their product, Kinetic Sand does not. Providing an opportunity for Kinetic Sand to branch out to retailers and customers.


Due to Kinetic Sand’s internal situation such as its own capabilities, and external situations including the market environment, and customer expectations. Kinetic Sand should utilize the cost-based pricing. “Cost-based pricing is defined as determining the cost of each product and adding a percentage surcharge to determine price,” (Philips, 2007, P.23). Objectively this shows Kinetic Sand to be engaged in a profit-oriented scheme by Kinetic Sand aiming to bring a reasonably priced toy of high quality to customers.  Boundless (2015) states cost-based pricing allocates a price based on their profit margin, which must be at an acceptable level for the target customers whose majority will only pay at an affordable rate. In addition, the various retail locations of Kinetic Sand are primarily toy stores who have a large array of other products on offer. Therefore it is evident that the consumer is far more price inelastic than elastic due to the fact that they will be unwilling to pay a large premium when a more competitive and cost effective product can be purchased. Therefore the market conditions dictate that Kinetic Sand must select a price closer to the price floor than the ceiling. Raju (2015) provides supporting evidence for a cost-based scheme by exclaiming that providing a clear incentive such as offering a discount on holidays can increase the probability of purchase. Companies that use this strategy may attract consumers who are looking for value in products and services.


Distribution is currently only brought through limited channels of selected toy retailers. Kinetic Sand utilizes a traditional independent supply chain beginning with the manufacturer in China who mass-produces the product, and then proceeding to be transported to the wholesaler. The wholesaler resells the product to the retailer; who in turn directly sells to the consumer.  In addition, selective distribution has been selected for Kinetic Sand’s distribution intensity.

An alternative approach can be taken to both of these aspects. For instance, a much more reliable marketing channel is the vertical type which closely aligns each channel, either by ownership or contract, sharing common goals leading to less conflicts. This is justified by Perner (2015) who states “In an independent marketing channel each independent member attempts to satisfy its own objectives and maximize its profits, often at the expense of the other members…”

Secondly, the distribution intensity aspect can be more aggressive in its approach to ensure Kinetic Sand is available in as many outlets as possible by introducing intensive distribution. Kinetic Sand should distribute to all available markets, which can enlarge its distribution scale. This exposure means working class parents can easily purchase this product. The more exposure the product gets, the more it will sell.


One of the most effective ways to promote a product is through IMC tools such as advertising, sales promotion, direct marketing, and personal selling. For the $50,000 promotional expenditure for Kinetic Sands image should be promoted though television and magazine advertising. Advertising helps organizations obtain a wider audience base within the shortest possible timeframe. Wagner (2014) stated product placement in television can determine the products success, an example is the DeLorean car featured in the film back to the future which is still to this date widely sought after. Kinetic Sand can implement product placement into a well-known family show influencing consumer behavior by engaging the parent’s to connect to the viability Kinetic Sand as a toy. This decision can be justified as the limited knowledge of Kinetic Sand can be vastly improved by product placement in key TV advertisements increasing the frequency of exposure.  Secondly, Bauer-Media (2015) stated Magazines is the vehicle through which a specific advertisement message reaches the correct customer. Kinetic Sand could convey its products image in a business magazine for targeting working class parents. Kinetic Sand would strategically place key advertisements in magazines portraying an image of its socially responsible ethics and convenience of purchase. A slogan to be used could say “Kinetic Sand: the socially responsible and convenient toy.” In conclusion, the TV and Magazine advertisement combination provides a clear advantage in increasing its notoriety while still effectively marketing high potential clients.



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