Marketing Ella's Kitchen Essay
Ella’s Kitchen is a business that specializes in 100% organic, healthy food products for babies and children. When Paul Lindley set up Ella’s Kitchen he wanted to provide a quality range of products aimed at promoting a healthy lifestyle for young people. His idea was to produce children’s snacks that were both good fun and good for the child. Paul targeted both children and their parents. He managed to do a deal with Nickelodeon whereby he received free advertising space for six weeks and in return Nickelodeon received a share of the profits. Plus, he insists that their propensity to tell it like it is makes them ideal focus group material. Developing a brand positioning that effortlessly sums up his mission to revolutionise …show more content…
The strategic decision in pricing is the choice between a policy of initial high prices that skim the cream of demand; and a policy of low prices from the outset serving as an active agent for market penetration. For Ella's Kitchen, they are using price skimming strategy where they introduces a product with a high price and after milking the least price sensitive segment. Price skimming works because different customers have differing social status needs, incomes and price sensitivities; and those with high income or low price sensitivity.
Positioning strategy refers to the choice of target market segment which describes the customers a business will