You are a Product Manager for Xtreme Sports, a company that produces and sells products for athletes. Xtreme Sports has just made an important breakthrough in developing a workout enhancer. Muscle Max is an organic, all-natural workout enhancer cream that reduces sports injuries, improves circulation, and enhances energy. The cream has been proven to reduce injuries to professional athletes who depend on their physical health for their livelihoods. There are some similar products by other health-oriented companies, but they are not as effective as Muscle Max. The cream is relatively inexpensive to produce with an expected production cost of 20 cents per ounce. However, the firm is concerned that if it is sold at too low a price, customers might conclude that it is just another bogus claim. The cream should, therefore, be priced at a competitive level similar to other highly advertised products on the market today.

If the introduction of the product is handled correctly, the return on investment should be between 40 percent and 70 percent after taxes. It could be the most profitable product in your company, but the firm is not sure what marketing strategy would work the best.

The CEO and Board of Directors want to know how you plan to bring this product to the athletes who need it. You must make all of the important marketing decisions.

Assignment Instructions:

Megan Jordan, the CEO of Xtreme Sports, has asked you to submit your marketing plan for Muscle Max. In your plan, be sure to explain and justify your approach and answer these important questions:

• How do you plan to differentiate Muscle Max from other similar products already on the market? For example, will the packaging be an important part of your plan? How so?
• Discuss the key elements of your promotional mix. What will be your primary advertising media? Which would likely participate in the media campaign? Would you use celebrities to promote the product? If so, which ones and why?
• Discuss your pricing strategy. The cream is relatively inexpensive to produce with an expected production cost of 20 cents per ounce. However, upper management believes that the price should reflect the quality of the product and be competitive with current highly advertised skin treatments.
• Discuss the marketing distribution approach you will use (wholesalers, retailers, etc.). Be specific.
• How do you plan on using e-commerce and social media outlets? For example, will you offer discounts to Amazon or eBay? What about using blogs?