Meaning a significant change in price has little impact on quantity demanded. Therefore, a small change in prices does not affect such products (Coinstar, 2014).
Queency juice can be priced the same as those of competitors. it can be priced at a reduces price as compared to other market competitors or can be priced at a higher price. Coinstar may also consider cost-based pricing in order to regain costs that have been incurred in coming up with new product. Three approaches may be used:
Coinstar will introduce a new product, Queency juice, in the market by setting the prices to be high reason being the company offers a mystique and unique product that will be highly valued by customers. The product mainly targets affluent members of the society and is prestigious. The strategy is appropriate because it considers customers who are only willing to pay high prices hence potential customers will not be forced to buy the product (Smith, 2012).
The culture of Coinstar in promoting a new product involves participating in charity events, that are not only unreliable but also expensive and time consuming as it involve distributing Queency juice for free despite the higher cost of producing it.
During special events such as sports, the direct marketing executives will be involved in creating awareness about Queency drinks. The marketers will give free samples to the audience and the players so that the can have a test of the product. Customers will be taught about the new product free of charge. The Company will also create a new website where awareness of the new product can be created.
Advertisement is a very vital tool that can be utilized in product promotion. It should be catchy in order to stimulate demand. Coinstar will also participate in special events such as sports as a way of promoting its new product where free samples of the new product will be given to the participants.