bus599 business plan

Marketing Plan and Sales Strategy

Company Overview

Arabicana is a NAB company dealing specifically in non-alcoholic beverages including espresso, gourmet coffee, and ice cream. The main product offering is espresso, given the huge demand in the market. Arabicana’s mission to provide consumers with a healthy product that meets their needs such as good health and convenience. Again, the company views the community as its partner and is thus committed to its improvement. In this regard, the company strives to use only healthy ingredients in its products and approved production methods.

Target Market

In its marketing endeavour, Arabicana Coffee Company will exclusively aim at reaching White college female consumers between ages 18-35 in the healthcare and fitness sector who are energetic and lively, and are earning $30,000 - $50,000. The choice of this target audience is informed by the recent statistics from the USA census which showed that women constitute about 64,000 of the entire Nashville, TN population, which, in this case, represents 10% of the population. Additionally, according to the American Fact Finder, Whites constituted about 77.9% of the entire population as of 2017 (DADS, 2019). Therefore, the population of women represent a substantial market share worth capturing.

Marketing Objectives

Arabicana aims to:

• Reach newer market segments

• Increase its sales margin

• Position itself as a healthy product company in the market

Market Analysis

1. SWOT Analysis

Strengths

• Great experience among top-level management

• Products with great taste

• High productivity

• Low cost Weaknesses

• Limited finances

• Small variety of products

• Exclusively targets female consumers

Opportunities

• Expand product portfolio Threats

• High level of competition

2. Competitors

The main competitors for Arabicana Coffee include Enerbee, Root9, Monster and Redbull. Judging from the competitive environment, these non-alcoholic beverage companies offer stiff competition due to their strong finance, variety products, customer loyalty and popularity in the market. Aside from that, unlike Arabicana Coffee Company, Enerbee, Root9, Monster and Redbull target all genders with their energy drinks.

3. Competitive Strategy

According to the assertions of Dean et al. (2007), health sensitivity and consciousness is greater in females in comparison to their male counterparts. In light of this, women often seek energy drinks with natural ingredients and great taste so as to reinforce their performance at home or work. Hence, Arabicana Coffee Company will seek to gain competitive advantage by way of producing energy drinks that integrates healthy ingredients with good taste so as to achieve a productivity that ensures consumer satisfaction by matching the consumer preferences.

Marketing Message

In all its marketing tools, Arabicana’s marketing message is oriented towards informing the consumers about the benefits of the company’s products. In this regard, the message centers on five key areas. First, expressing the nutritious benefits of the active ingredients in its non-alcoholic beverages. For instance, ginseng reinforce patient recovery after an illness, l-carnitine boosts energy, taurine facilitates healthy exercising by preventing oxidative stress, caffeine ensures the flow of thought is clearer and faster while increasing alertness, inositol maintains cholesterol levels in the blood, while vitamin B minimizes risk of stroke and promotes healthy metabolism and nerve cells. Second, presenting Arabicana beverages as low-cost products which enable consumers to control their budget. Thirdly, informing the targeted audience of the accessibility of Arabicana products in pharmacy stores and local groceries. Fourth, assuring consumers of the health lifestyle full of happiness and performance associated with embracing Arabicana products. Lastly, informing its target audience of the company’s vitality so as to present Arabicana as a trustworthy and dependable beverage company.

Hence, the marketing message is: “Giving a nutritious drink that suits your budget and easily accessible for enhanced happiness and performance all day long.”

Marketing Slogan

The development of the marketing slogan follows the 5 Fs. Hence, Arabicana’s slogan is “Embracing Life with Happiness and Performance.”

 

Marketing Mix

As cited by Cravens (2006), the marketing mix defines the elements that ensure the marketing strategy satisfies the targeted consumer segment including product, promotion, pricing and distribution. In this regard, the success of the marketing strategy depends on the unique combination of these elements.

1. Product Strategy

Brander and Spencer (2015) explain that product differentiation, for example, through words, size or colour of a product or its packaging achieves a strong image in the market. In this regard, the words on the Arabicana’s packaging design, that is, ‘Revive,’ illustrates to live again. Further, Arabicana coffee has selected black, white and red as its brand colour. Further, the company attaches different meanings to these colours: for instance, red marks Arabicana’s passion in providing natural, healthy beverages for youthful females; white represents the purity and cleanliness of the company product ingredients; and black is a representation of the complexity women face in discovering a balance with soul, body and mind.

The integration of the wording and colours is seen in the company logo as shown below:

 

2. Pricing Strategy

Arabicana aims at reaching its target audience through cost leadership through maintaining low cost of products. Additionally, the company will use psychological pricing in labelling the prices of its beverages. For instance, instead of $10, the company will state $9.99 as the price.

3. Promotional Strategy

The company will mainly use an integrated marketing strategy which combines direct marketing, traditional marketing and digital marketing for the promotion of its products in the market including social networking sites such as Twitter and Facebook, among others.

4. Distribution Strategy

Arabicana will form distribution partnerships with Dr.Pepper for the delivery of its products. The bottling company will ensure Arabicana products are timely delivered to local academic institutions, hospitals, pharmacies and local grocery stores.

Marketing Vehicles

Arabicana will use the following marketing channels for its promotional strategy:

• Websites

• Direct marketing

• Online marketing

• Mainstream media

• Events

A marketing research will be conducted in order to ensure the effectiveness of these marketing vehicles as well as understand Arabicana’s target audience. Here, the marketing research tool will be questionnaires which will submitted to a group of targeted consumers as Google forms or physical copies based on the respondent’s preferences. 

References

Brander, J. A., & Spencer, B. J. (2015). Intra-industry trade with Bertrand and Cournot oligopoly: The role of endogenous horizontal product differentiation. Research in Economics, 69(2), 157-165.

Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 6). New York: McGraw-Hill.

(DADS), D. (2019). American FactFinder - Results. Factfinder.census.gov. Retrieved from: https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF

Dean, M., Shepherd, R., Arvola, A., Vassallo, M., Winkelmann, M., Claupein, E., ... & Saba, A. (2007). Consumer perceptions of healthy cereal products and production methods. Journal of Cereal Science, 46(3), 188-196.