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Product Development Theory

Discuss about the Development of product promotional strategy consider.

The Burleigh Brewing Company is a brewery company situated at Gold Coast, Queensland, Australia. Company was founded in 2006 and in a very short period of time, organization has developed its effective image in the domestic as well as in international brewery market. It is mainly known for producing craft beer and market of craft beer is rapidly increasing in Australia. Thus, in order to defend the acquired position in the brewery industry, organization has planned to launch a new product through which company’s market share could be enhanced along with determining the opportunities for gaining competitive advantage in the target market (Burleigh Brewing, 2018).

With the help of product development theory, organization has planned to introduce a new beer in the market. Motive of this beer is to provide refreshing and relished experience to its consumers and for the same, quantity of alcohol in this drink will be less in comparison with company’s previous product offerings. New product idea has been invented due to companies less involvement in the craft beer market and existence of large companies in craft beer market. Primary motive of this beer will be meeting with the expectations of beer lovers in Australian market as well as to provide them a unique refreshing and energising drink.

Segmentation is the technique to segregate big market into small segments so that particular niche market could be identified in relevance with organizational new product. In relevance with the refreshing beer which will be soon launched in Australian market, target audience will be segregated on the basis of age, gender and on income group basis (Steenbeke, Gevaert, Tuleasca, Engels, Van Den Berge, Poels & De Ridder, 2015). Apart from this, major target audience segment will be people aged 18 to 45. This is because people in this group require more refreshment after a long tiring day. Moto of refreshing beer is also providing refreshing and relished experience to its consumers. Potential target segments for refreshing beer will be:

  • Demographic: In terms of demographic segmentation, both female and male aged between 18 and 45 years will be targeted (Craft & Hassan, 2015).
  • Psychographic: In this type of segmentation, people are segregated on the basis of their needs, lifestyle, etc. Thus, this segment of people will be targeted as after a long tiring day, refreshing beer will help them to feel stress-free and relaxed (Yang, Liu, Teng, Liao & Xiong, 2016).
  • Geographical: In the initial time period of product launching, the market of Australia including Queensland, West Australia, New South Wales and Victoria will be the key target markets of the product.

Primary motive of refreshing beer is providing refreshed experience along with increasing energy level amongst the target audience. Thus, positioning statement for this drink will be “an energy booster” and with the help of this statement, The Burleigh Brewing Company will be able to make an effective position of their new beer in the target market. Apart from this, refreshing beer will be priced at premium pricing with the objective of making it unique from available options in the market (McQuiston & Caldwell, 2016).


Positioning Bases:

  • Attributes: The refreshment drink
  • Price and quality: Lower price with great refreshment ability
  • Benefits: Energising and refreshing
  • User: The beer lovers
  • Competitors: Carlton & United Breweries, Lion Nathan and others.
  • Specific: Effective promotional measures such as social media platforms will be used for reaching out to the target audience.
  • Measurable: The increase in the demand and the sale of the product are the measurable criterions (Melewar & Skinner, 2018).
  • Achievable: By actively promoting on the new product and the USP that this beer provides refreshment, it would be able to achieve the target market.
  • Realistic: Usage of social media will be the appropriate option in relevance with approaching to the target audience.
  • Time: Promotional and advertisement campaigns will be conducted for at least 3 months in relevance with approaching to the target audience.

Amongst the three layers of a product i.e. core, actual and augmented, refreshing beer will fall into the category of actual product as it is tangible in nature and people wold be able to purchase the product when they feel need for that.

The Burleigh Brewing Company produces its products in factory and the same process will be followed for manufacturing refreshing beer, thus, it will fall under food and beverages categories of product.

Branding strategy should be creative which should include brand’s name, logo and slogan as well. It will help the organization to develop its effective position in the market and along with this; branding strategy will also help the The Burleigh Brewing Company to make its unique position by promoting benefits and USPs of the refreshing beer amongst the target audience. Organization has made its effective image in brewery industry, thus, brand loyalty could also be utilised in order to gain positive outcomes (Eppinger & Ulrich, 2015).

Major target market segments for this beer are youth, thus, in order to attract them, organization should use attractive packaging design. Along with attractive design of the product, organization could provide small bottles and cans which will be easy to carry and will look more attractive. Design of the bottle and colour used for bottles and cans should be bright and catchy through which refreshment could be felt just by seeing the packaging (Akar & Topçu, 2011).

  • Idea generation: An energy drink with less alcohol and more energy and refreshing boosters.
  • Idea screening: Trending digital marketing strategies such as social media will be used as an effective tool.
  • Concept development & testing: Concept for refreshing beer is developed reviewing the stress and energy level amongst youth. Product testing would also be done by introducing the product amongst the youth (Montagnaro, Balsamo & Salatino, 2016).
  • Marketing strategy development: USP and positioning statement will be highlighted in order to promote the newly launched drink in the market.
  • Business analysis: Demand for beer in Australian market is high, thus, refreshing beer will be successful in the same market within a short period of time.
  • Product development: The new and innovative idea brings the scope of development.
  • Test marketing: Samples will be distributed before launching in the market in order to analyse the effectiveness of the product (Armstrong, Kotler, Harker & Brennan, 2015).
  • Commercialisation: Further commercialisation of the product will be done with the help of other promotional and marketing strategies in relevance with attainment of goals and objectives.

Distribution channel is the path for a product to reach to the consumers from producers. Business to Business and Business to Consumer are two major types of distribution channels. Under B2B type of structure, raw materials are purchased from a business organization to produce final goods. Apart from this, there is a B2C under which products are directly sold to the consumers (Ma, Wang, Xu & Ouyang, 2015).

In relation with refreshing beer, B2B channel will be used because The Burleigh Brewing Company is a manufacturing company and they will supply this beer to the local shops and other retailers. From there, consumers will be able to purchase the beer. This will fall under indirect distribution channel structure as middle men will be involved under distribution process of refreshing beer.

  • Other related products available in market
  • Per unit value of a product
  • Perishability of a product
  • Technical nature
  • Nature of the buyers
  • Demand of the product

Level of distribution is of three types and it is selected on the basis of certain factors such as demand of the product, production capacity, promotional activities, size of the market, etc. These three types are intensive distribution, selective and exclusive. In relevance with refreshing beer, intensive and selective distribution technique will be used in order to make the product available for the target audience at their nearby stores.


Refreshing drink will be available in all grocery stores, retail outlets, supermarkets, as well as in the hypermarkets. Major supermarkets in Australia are Woolworths Limited, Wal-Mart, etc. and the beer will be available in almost all these stores with the objective of increasing the demand.

Retailers offer various benefits to the suppliers as well as to the customers. The major benefit for a consumer through purchasing retail store is availability of various products under one roof. Apart from this, consumers could buy minimum of one quantity and maximum depends upon the availability of a particular product. Major benefits through retailing are:

  • Access to consumers: In relation with suppliers, major benefit is origination of various opportunities to expand market share as well as in relevance with increase the demand of the product. Organization could use retail promotion for promoting the product as well as for approaching the target audience.
  • Awareness: The Burleigh Brewing Company will be able to spread awareness amongst the target audience in relation with the new product. Board hoardings, posters, etc. mediums could be used by The Burleigh Brewing Company for spreading awareness in relation with refreshing beer.
  • Access to product: With the help of retail stores, consumers could easily approach towards the product. Thus, it is necessary for the organization to supply its new drink to the retail stores in adequate quantity so that consumers could be able to get those easily and effectively.
  • Creates competitive business environment: Retail market leads to create competitive business environment and due to this, every retail store is required to adopt advance techniques so that available products could be showcased in order to attract consumers. In competitive business environment, there is no switching cost for consumers, thus, in order to retain potential customers, retailers are required to provide offers and schemes to them (Luan & Sudhir, 2010).

Apart from these benefits, there are various other benefits linked with retailing such as it helps the organization to boost up sales as well as profitability and it also act as an effective promotional tool.

In relevance with the promotion of a new product, primary goal for an organization will be spreading awareness amongst the target audience so that curiosity could be builds up so that when product will be introduced in the market, appropriate demand of the product could be attained. The Burleigh Brewing Company has planned to launch refreshing beer in the Australian market and their goals linked with promotional activities are:

  • Specific: Targeting beer lovers in Australian market with the help of trending digital marketing strategies
  • Measurable: Increase in demand of the product, increase in sale through the product and increase profitability (Podolyakina & Popova, 2014).
  • Achievable: Attainment of desired goals and objective through continuous promotion and advertisement of the product
  • Relevant: Target audience for The Burleigh Brewing Company is youth in relation with new product, thus, social media platforms adopted by the organization is relevant enough to promote the new product.
  • Timetabled: Desired gals will be attained within three months from the date of launching of the product.

Refreshing beer is a brand new product which will be soon launched in the target market. In this product, refreshing elements are added along with a certain level of alcohol. Major target market segment for this product is youth. USP of this beer is its refreshing nature which will provide relished experience to its users (Kitchen & Burgmann, 2010).

With the help of retail stores, supermarkets, hypermarkets, etc., refreshing beer will be made available to the target audience across Australia including Queensland, West Australia, New South Wales and Victoria (Schlissel, 2015).

Primary tool for promoting refreshing beer in the target market will be trending digital marketing strategies. Amongst them, social media platform such as Facebook, Twitter, Instagram, etc. will be used in terms of promoting the refreshing beer amongst the target audience (Fine, 2017).

Premium pricing method will be used for setting the price of the refreshing beer. Premium pricing method is used with the motive of encouraging the favourable perceptions among the buyers and solely based over price (Li, Hou, Chen & Li, 2016).

Integrated marketing communication tool will be used for promoting the USPs of the refreshing beer amongst the target market. Major attractions of the product will be energy and refreshing and there is no existing product available in the target market with these two attributes, thus, The Burleigh Brewing Company will be able to promote its new product in the target market along with gaining positive outcomes (LIU & GU, 2016).

  • Type and usage of product
  • Purchase frequency or the quantity of the product
  • Type and size of the market
  • Stages of product life cycle
  • Complexity of product

Distribution Channel

Push strategy is used by organization to spread awareness amongst the target audience with the help of various promotional mediums. “Pushing product to the consumers” is the main moto of this strategy.

Pull strategy is used to generate demand amongst the target audience with the help of mass media promotion, CRM techniques, advertising, etc. “Generating demand of the product amongst the consumers” is the main moto for pull strategy. In relevance with the refreshing beer, pull strategy will be used as it is a unique drink with refreshing and energy boosters (Dawson & Henley, 2012).  

  • Specific: Targeting beer lovers in Australia for trying a new product they shall be paying the premium amount for the beer.
  • Measurable: Increase in sales and profitability
  • Achievable: Continuous promotion to spread awareness amongst the target audience. Apart from this, mouth to mouth promotional technique will also help the organization to attain its desired goals.
  • Relevant: The unique idea behind the product development could be liked by the beer lovers and the sales will increase
  • Timetabled: A 3 months’ duration would be helpful to attain pricing objectives.

Refreshing drink planned to launch in Australian market by The Burleigh Brewing Company could be done by showcasing and highlighting key factors which the drink will provide to the target audience such as refreshment, relished experience and energy. Apart from this, organization could also showcase the difference between existing beers in the market with the refreshing beer. It will help the organization to attract its target audience along with gaining competitive advantage in the competitive brewery industry (Weinstein, 2013).

For this beer, premium pricing technique will be used as the product contains lesser alcohol and more refreshment elements. Organization will be able to gain competitive advantage with the help of premium pricing technique.

Competitor’s product’s prices has been evaluated along with considering other attributes before setting price such as variable cost, fixed cost incurred for the production, etc. This will help the organization to create better image in the market along with gaining competitive advantage.

Premium pricing strategy has been adopted because there is no such close or direct competitors present for refreshing beer in the Australian and nearby markets. Refreshing drink has crucial attributes such as energy boosters and refreshment particles which are not yet present in any existing beer.

On the basis of average price of existing beers in Australian market, final price of the refreshing beer will be fixed. Apart from this, impact of price over stakeholders and other marketing activities’ impact will also be considered. Approximately price of the refreshing beer will be fixed between $AUD 3 to $AUD 6.


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