Pricing Strategy Recommend value-driven pricing for your company’s product. Estimate the BEP for your company’s product. What pricing implications do

NourishGo Strategic Marketing Brief —– Draft 3

Pricing Strategy and Distribution Strategy

Eunice A Adeniran Aluko

DeVry University

MKTG525: Strategic Marketing

Prof Kimberly Blake

06/15/2025

NourishGo Strategic Marketing Brief – Draft 3

Pricing Strategy

NourishGo uses a value-based pricing model designed with the financial limitations and health-conscious goals of college students in mind. The company offers a flexible, tiered subscription system, with weekly meal kits priced between $7.99 and $9.99 per serving. To make the service even more accessible, NourishGo provides discounts to students receiving financial aid and offers group rates for campus organizations. This approach not only makes the product affordable but also builds brand loyalty by showing that the company understands the financial challenges students face.

To understand how many meal kits need to be sold to cover expenses, the break-even point (BEP) can be calculated. Assuming annual fixed costs of $150,000—which includes staff wages, packaging, and delivery logistics—and an average variable cost of $5 per meal kit, with each meal priced at $9, the BEP formula is: BEP = Fixed Costs / (Price – Variable Cost) = $150,000 / ($9 – $5) = 37,500 meal kits annually.

This means NourishGo must sell at least 37,500 meal kits each year to break even. Because of this, the company needs to strike a careful balance between keeping prices low enough for students while maintaining a high enough margin to support growth and sustainability, especially in its early stages.

Demand for NourishGo is likely to be price elastic. College students tend to be budget-conscious and can easily turn to alternatives like dining halls or inexpensive fast food options. If prices increase too much, they may look elsewhere, which could hurt sales and lead to unsold inventory. On the other hand, pricing too low may result in high demand but unsustainable profit margins. Therefore, pricing decisions should be informed by careful demand forecasting and regular student feedback to adjust prices when needed without losing customers.

Given this dynamic, a penetration pricing strategy is ideal for NourishGo. By launching with lower introductory prices, the company can attract new customers quickly and build market share. Over time, as brand recognition grows and customer loyalty strengthens, prices can be gradually adjusted. This strategy works well when paired with incentives such as free delivery, referral credits, and meal kits exclusive to students. These added benefits encourage students to keep using the service and support long-term growth.

Distribution Strategy

NourishGo’s distribution strategy is based on a multichannel approach that combines direct-to-consumer delivery with selective retail and wholesale partnerships. The direct-to-consumer model—operated through a user-friendly mobile app and website—is ideal for students who prioritize convenience and digital access. It allows for personalized service, flexible scheduling, and location-based delivery to dorms or off-campus housing.

In addition to digital channels, NourishGo can increase reach and visibility through partnerships with retail locations such as campus bookstores, student centers, and nearby grocery stores. These outlets can offer on-the-go meal kits or set up small branded kiosks for students who prefer in-person purchases or lack access to reliable delivery services.

On the wholesale side, NourishGo can collaborate with campus dining services or companies that manage health-conscious vending machines. These partnerships expand availability while keeping the brand’s identity consistent.

To successfully implement this strategy, NourishGo should tailor its approach to each channel. In retail settings, promotions like limited-time offers, co-branded displays, and in-store sampling events can help encourage new customers to try the product. For wholesale channels, the company should prioritize standardized packaging, reliable order fulfillment, and inventory tracking systems to meet volume needs and reduce waste.

This distribution plan allows NourishGo to meet students where they are—whether they prefer ordering online or picking up food on the go. It supports broader access to healthy, affordable meals while staying aligned with the company’s mission to deliver convenience, nutrition, and value to the student population.

References

Kotler, P., & Keller, K. L. (2022). Marketing Management (16th ed.). Pearson.

Solomon, M. R. (2022). Consumer Behavior: Buying, Having, and Being (13th ed.). Pearson.

Ferrell, O. C., & Hartline, M. (2022). Marketing Strategy (8th ed.). Cengage Learning.

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NourishGo Strategic Marketing Brief —– Draft 1

Marketing Environment & Buyer Behavior

Author First M Last

DeVry University

MKTG525: Strategic Marketing

Prof Kimberly Blake

Due Date

NourishGo Strategic Marketing Brief – Draft 1

Marketing Environment

NourishGo is a healthy meal kit delivery service designed specifically for college students who seek fast, nutritious, and affordable food solutions. The marketing environment for NourishGo includes the internal and external forces that affect marketing strategy and decision-making.

The marketing mix for NourishGo reflects its customer-centric approach:

· Product: Nutritious, pre-portioned ingredients with student-friendly, quick-prep recipes curated by registered dietitians.

· Price: Competitive pricing with flexible subscription plans, including discounts for students and financial aid recipients.

· Place: Direct-to-consumer via a mobile app and website, with delivery options tailored for campus dorms and off-campus housing.

· Promotion: Digital marketing through social media, influencer endorsements, referral incentives, and student ambassador programs.

The company will adopt a market orientation blended with elements of product orientation. While product innovation is central—offering customized meal kits—it is rooted in market research and tailored to evolving student needs, values, and health behaviors (Kotler & Keller, 2022).

Within the microenvironment, the most influential actor is the customer. College students are both end-users and brand advocates. Their preferences shape product design, promotional strategy, and brand voice. Engagement via reviews and social platforms provides real-time insights and feedback loops that guide strategic adjustments (Solomon, 2022).

In the macroenvironment, the most influential force is the sociocultural environment. Gen Z consumers are highly values-driven, with strong preferences for sustainability, health, convenience, and ethical business practices. To remain relevant, NourishGo must align with these cultural values through eco-conscious packaging, inclusive branding, and transparency in sourcing (Ferrell & Hartline, 2022).

Buyer Behavior

NourishGo operates within the B2C space, serving individual student consumers. The buyer decision process includes the following steps:

1. Need Recognition: Students experience time constraints, budget limitations, and desire for healthy meals.

2. Information Search: Online research, social media, and peer recommendations are key sources.

3. Evaluation of Alternatives: Students compare options based on price, preparation time, taste, and health value.

4. Purchase Decision: Influenced by trial offers, subscription flexibility, and student testimonials.

5. Post-Purchase Behavior: Continued use depends on satisfaction with product quality, ease of preparation, and overall experience.

The most critical stages are need recognition and evaluation of alternatives. Students are bombarded with options but value personalized, hassle-free solutions. Messaging that targets their daily pain points, like skipping meals or poor nutrition, will resonate strategically.

Key buying influences include:

· Psychological: The desire for independence, wellness, and productivity.

· Social: Peer behavior, social media trends, and campus culture.

· Situational: Academic schedules, limited access to kitchens, and transportation barriers.

By leveraging these influences, NourishGo can personalize promotions, optimize delivery timing, and use user-generated content to build trust and social proof—turning students into loyal brand advocates.

NourishGo currently occupies the early adopter phase on the diffusion of innovation curve. These consumers are tech-forward and trend-sensitive. To move toward the early majority, NourishGo must provide robust customer support, establish credibility, and refine referral incentives. Targeted communication and strategic partnerships with student organizations can accelerate adoption and build brand equity (Rogers, 2003).

References

Ferrell, O. C., & Hartline, M. (2022). Marketing strategy (8th ed.). Cengage Learning. Kotler, P., & Keller, K. L. (2022). Marketing management (16th ed.). Pearson. Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press. Solomon, M. R. (2022). Consumer behavior: Buying, having, and being (13th ed.). Pearson.

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NourishGo Strategic Marketing Brief —– Draft 2

Insights & Segmentation | Product Strategy

Eunice Adeniran Aluko

DeVry University

MKTG525: Strategic Marketing

Prof Kimberly Blake

06/01/2025

NourishGo Strategic Marketing Brief – Draft 2

Insights and Segmentation

NourishGo is built for college students who are always on the go and often don’t have the time, space, or resources to cook healthy meals. To better understand and connect with this group, it’s important to do some primary research. The three best methods would be online surveys, focus groups, and product testing on campus.

Online surveys are a great way to reach a large group of students quickly and affordably. They can help us learn what types of meals students prefer, how much they’re willing to spend, and what features (like delivery time or mobile app convenience) matter most to them. We just have to make sure that survey responses are kept anonymous and that students know their answers will only be used to improve the service.

Focus groups are also very useful because they allow students to talk openly about their habits and preferences. In a small, relaxed setting, students might share things we didn’t think to ask in a survey—like how they feel about cooking, or what kind of support they need to eat healthier. It’s important to create a respectful environment where everyone’s opinion is valued, and where participants are told how the discussion will be used.

Lastly, campus product testing gives us a chance to offer free meals in exchange for honest feedback. This helps us see how students react to the actual food—do they like the taste, portion size, or prep time? We’ll need to clearly label any allergens and be transparent about what’s in each kit.

The target customers for NourishGo are college students between 18 and 25. They care about convenience, affordability, and eating better without spending too much time in the kitchen. Many of them live in dorms or shared apartments, and they often rely on fast food because it’s quick and cheap.

NourishGo’s value is in solving a real problem: giving students easy access to healthy meals that don’t take forever to cook. Our promise is simple — nutritious, budget-friendly meal kits that are designed specifically for student life and delivered straight to campus or off-campus housing.

Product Strategy

NourishGo is more than just a meal kit — it’s a brand that students can connect with. We’re creating something that fits into their busy lives and supports their health goals. What makes our brand stand out is how well we understand the student experience and respond to it.

Our brand is strong because it’s relatable, affordable, and helpful. Most meal kit companies are geared toward working adults or families, but NourishGo focuses entirely on students. That’s our advantage. We speak their language, use platforms they’re on, and design products around their needs.

Compared to other brands like HelloFresh or Blue Apron, NourishGo has a personal and cultural connection to students. It’s not just about food — it’s about independence, feeling healthier, and doing it all on a student budget. Our social media presence, student ambassadors, and referral programs all help build that connection and loyalty.

When it comes to how we develop the product, we’re committed to doing it the right way. That means sourcing ingredients from ethical suppliers, using recyclable or compostable packaging, and being transparent about what goes into each kit. We also make sure meals are easy to prepare with minimal waste.

These practices not only feel right but also give us a competitive edge. Students are very aware of social and environmental issues, and they prefer to support brands that reflect their values. By being ethical from start to finish — from how we source food to how the packaging is disposed of — we build trust and stand out in the market.

Positioning Statement: For college students who want affordable, healthy meals without the hassle of shopping or cooking complicated recipes, NourishGo is a student-focused meal kit service that delivers quick, dietitian-approved meals directly to campus or home. Unlike generic meal kit companies, NourishGo understands student life and offers meals, pricing, and delivery tailored to their needs.

References

Ferrell, O. C., & Hartline, M. (2022). Marketing strategy (8th ed.). Cengage Learning.

Kotler, P., & Keller, K. L. (2022). Marketing management (16th ed.). Pearson.

Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.

Solomon, M. R. (2022). Consumer behavior: Buying, having, and being (13th ed.). Pearson.

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