business plan

Section 1: Marketing Plan & Sales Strategy

Pornalin Pongpho

BUS.599

Daniel Goldsmith, DBA

Strayer University

February 13, 2018

Target Company Analysis

Strawberry Rite is a non-alcoholic wine producing Start-up Company that aims to venture into the non-alcoholic beverage industry. The company will produce red and white nonalcoholic wine brands that target individuals who do not take alcoholic wine brands due to their religious, health and personal reasons. Strawberry Rite will produce different brands with different flavors in order to cater for the diverse consumer needs. In a nutshell, the company aims to offer quality and sophisticated non-alcoholic wine brands that give the same wine experience as the alcoholic counterparts. This paper has developed the marketing plan and a marketing budget which will be used to differentiate the company through marketing and brand awareness. These are critical factors that will enhance its entry and success in the increasingly competitive nonalcoholic industry.

Strawberry Rite's wine brands will be sold in nightclubs, restaurants, and lounges where individuals who do not take alcoholic beverages meet to have good times and nice beverages other than soda and juices. The company will be located in VA Chantilly, an area with a total population of 23,029 as reported by US Census Bureau, (2010). Noteworthy, this an area that closely borders Washington DC, one of U.S's largest metropolitan areas. It is an area occupied by people who lead normal lives. These are people who have hectic, busy, and often tiresome lives as they travel to and from Washington for work. In the evenings and mostly during weekends, they meet in restaurant, hotels, nightclubs and other entertainment places to relax and have a good time in lively and decorated shades.

VA Chantilly is a prominent place in the U.S especially due to its well-known recreational places such as Fairs Lakes Virginia. The area has over 23,014 households with a total population density of 1916.6 people per square mile. According to U.S Census Bureau, (2010), the income of people in VA Chantilly is around $121,141 with a per capita income of $44,267. Another interesting fact is that this is multicultural area diversely occupied by people from different ethnic and racial backgrounds, typically African Americans, Hispanics, Asians, and Native Americans.

Competition Analysis

As a start-up and a new entrant into the beverage industry, competition will be a major challenge facing Strawberry Rite Co. There are bigger and well-established nonalcoholic beverage producers that will mount direct competition to the company. One of them includes Mustang Sally brewing, which owns repeated custom wines. However, the company is not big enough since it owns only one retail-store shop in the area. The other company is Ocelot Brewing Company which is the largest and leading nonalcoholic wine producer and supplier in VA Chantilly. The company has more than 20 stores across the city (Grand View Research, 2017). Despite this major strength, Ocelot has been facing financial crises in the recent past majorly due to debt management.

Out of all the different competitors, Mustang Sally will likely be the strongest competitor. Other than this, there are numerous other bistros and bars which will also make it difficult for Strawberry Rite Co. to garner its desired market share. However, the high population coupled with the constant flow of tourists in Chantilly will be a big booster to Strawberry Rite's growth.

Market share Distribution (Grand View Research, 2017).

Demographic Description

Consumer

Age Range- 15 years and older

Income Range- $15,000 - $199,999

Gender-Both male and female

Occupation-all types of occupation

Marital Status-Single and Married

Family Size- 3.14 persons

Ethic Group- All ethnic groups.

Level of Education-Al education levels indiscriminately.

Home Ownership- sole ownership, joint tenancy, Joint Tenancy With Rights of Survivorship (JTWROS), tenancy in common, and community property.

The Five Fs

Strawberry Rite needs to carefully tailor its message to meet the expectations of its potential customers and its business model. This will be done by following the Five Fs framework as discussed below:

i. Function- Strawberry Rite guarantees quality, tasty, nonalcoholic wine enjoyable at all times on all occasions.

ii. Finances-Strawberry Rite nonalcoholic wines are affordable price thus encouraging purchase. Strawberry Rite employs a premium pricing strategy which helps in profit generation.

iii. Freedom- to enjoy quality and sophisticated non-alcoholic wine every day and everywhere, wine that does not lose the authenticity of their regular wine experience

iv. Feelings-classy nonalcoholic wine that brings together friends for happier moments.

v. Future-Strawberry Rite nonalcoholic wines guarantee a healthy and therapeutic wine experience for a longer, happier and healthier life.

The most important message to customers is assurance of quality and affordability of the new wine brands. Strawberry Rite must inform customers that it is a premium brand company that is dedicated to satisfying its customers with quality and sophisticated nonalcoholic wine brands.

Marketing Vehicle

After clarifying its message to customers, the next step is describing how that information will be disseminated using various specific tools. One of the most effective marketing tools today is social media. The company will employ social media platforms including Twitter, Facebook, and Instangram to market its products. For example, it will use hashtags such as #NABFun, #NABHealth to inform its potential customers about its unique wine brands. High-quality advertisements will be created that will involve photos, videos, audios.

Noteworthy, Strawberry Rite will also use these social media platforms to interact and build relationships with its customers. In addition, they will be used to obtain feedback about the products, promotions, and any other relevant information that can help gain customer loyalty. Online ads will be a crucial marketing tool that will be used to make announcements, launch new brands, etc.

Next Strawberry Rite will create special message videos that will serve as marketing tools on its website. Through this website, the company will introduce new products and also encourage customers to make preorders (Abrams, 2010). On the first page of the search, video links will be displayed in order to direct any interested customer to the company wine brands. The benefits of using this tool is that it is cost effective and it is effective for marketing purposes. Search engine optimization will be used to drive both quality and quantity of traffic into the company websites. In order to improve results, SEO will use employ unpaid searches and also give its website more exposure using Search Engine Marketing (SEM).

Another important tool that will be used in is mobile billboards with graphics and build-out additions. Wine branded-trucks will be used promote the company products around the local region. While these two methods might be costly, they are very effective marking tools especially for a start-up like Strawberry Rite.

Lastly, Strawbery Rite will use direct selling in order to effectively reach its customers. The company will offer coupons to both non-rime and prime consumers in order to boots pre-orders form consumers who might need to use coupons. In recreational areas, the company's marketing personnel will strategically place tables and kiosks in order to reach potential customers such as tourists and college students. These marketing tools have been used by prominent companies such as Coca-Cola and AB Wine Inc. and they were very effective (Kotler, 2009). As such, Strawberry Rite will utilize them in order to enter and gain a market share in the market.

References

Kotler, P. (2009). Marketing management. Upper Saddle River, N.J.: Prentice Hall. Kotler, P., & Armstrong, G. (1991). Principles of marketing. Englewood Cliffs, N.J.: Prentice Hall

US Census Bureau, (2010). VA Chantilly facts. Retrieved from: https://www.census.gov/2010census/ on August 6, 2017