Strayer University BUS599 (Caps Stone), Assignment 3

Running head: ASSIGNMENT 2 1

ASSIGNMENT 2 5

Assignment 2: Marketing Plan

Daniel Hernandez

BUS 599 - Strategic Management

Strayer University

Dr. Theresa Poussaint

October 31, 2019

Target Market

Healthy Alkaline Water 4U retail location is in a strip mall in Lorton, Virginia. This is a residential area with several restaurants, grocery stores, education centers, veterinary services, hair salon, and several other variety stores. Lorton is located in Fairfax County, Virginia and include surrounding areas of Alexandria, Springfield, and Mount Vernon. According to the United States Census Bureau (2017), the estimated population of Lorton as of 2017 is about 20,000 with median age 34.7 for male and female. The American Community Survey (2017), noted in 2013 to 2017, the amount of people per household averages at 3.07. The medium income in Lorton stands at $100,356, with an estimated annual growth rate of 0.471%, which is $14,000 less than the state of Virginia (Census Bureau, 2017). The poverty rate in Lorton, Virginia is estimated at 6.2% (Census Bureau, 2017). According to Census Bureau (2017), demographics of Lorton includes 39.37% white, 32.75% black, Asian, 17.46%. Other race accounts for 4.62%, and Native Americans 0.13%. Persons with Bachelor’s degree or higher amounts for above 45% and high school graduate is estimated above 93%.

The Lorton area has a high volume of military personnel that appreciates the need for healthful hydration. Healthy Alkaline Water 4U is targeted to meet the need of people who has an active lifestyle and want to maintain or improve their health. The product is packaged for individual sale in 16 ounce bottles and 5 gallon containers for home delivery. It is conveniently priced to be affordable to the target audience and meets the taste and freshness for hydration. The ideal customers include professional men and women, high school and college students. This population frequently visits the shopping mall where the store is located, or they can purchase the product from nearby grocery stores, or the company’s website for home delivery.

Market Competition

Healthy Alkaline Water 4U’s largest competitor is Essentia Ionized Alkaline Water which has a Perfect Hydration of 9.5 and claim similar hydration benefits. According to Business Insider (2019), Essentia is a NAB industry product founded in 1998. Amazon, wholesale clubs, vending machines and businesses worldwide currently distribute Essentia. Last year, Essentia reportedly sold almost $2M in retail sales alone that represents a growth of 59% from retail sales in 2017 (Business Insider, 2019). Essentia have received several awards over the years and have over 90,000 retailer’s worldwide (Essentia Water, 2019). As a small business venture Healthy Alkaline Water 4U retail store presents a more personalized approach to customer service, offer taste tests for in store patrons and money back guarantee for web-based purchases.

In order to remain competitive, Healthy Alkaline Water 4U must ensure the purity and taste of its product meet the needs of the customers. According to Billand, Bravard, Chakrabarti, and Sanangi (2016), companies need to gather intelligence information to stay ahead of the competition and find gaps in production or markets to use an advantage. Essentia has established itself as a premier water source and is easily available in retail stores and online (Essentia Water, 2019). The price of a 16 ounces bottle of Essentia water is $0.30 more than Healthy Alkaline Water 4U, which gives the company a competitive advantage in pricing. Most consumers will choose the lower price for products with similar taste and benefits. Healthy Alkaline Water 4U receives support from the military community and is located just five miles from a large military base. One distinguishing factor for this company is the in store customer service reputation, adaptation, price and product quality guarantee.

Company’s Message

Abrams (2014), stated the reasons customers’ purchase products are based on five factors, functions, finances, freedom, feelings and future.

Functions: Healthy Alkaline Water 4U promotes healthful living, improved cognition and boost energy for customers.

Finances: The product is affordable based on the customers’ demographics and earnings.

Freedom: The product is conveniently located in local grocery stores and health club facilities with tasting stations.

Feelings: Healthy Alkaline Water 4U offers a crisp clean taste that brings association to health and longevity. Since a military veteran owns this company customer, feel a sense of loyalty in supporting the organization. Customers have a sense of comradery when they visit the retail location and feel the need to be supportive as part of the proceeds supports combat veterans. The retail location also offers free Wi-Fi and jazz music with surround sound.

Future: Consumer will stay loyal to a product that stands up to the name and provide proven results. Having the energy to be productive from the hydration source generate positive customers review that will in turn drive sales and invite new customers .

Refresh, Renew, Revitalize: The feeling of satisfaction with the refreshing taste of Healthy Alkaline Water 4U is the response the company is aiming to obtain from customers. Customers on the refreshing taste of the product. The water immediately quenches the thirst and leaves no after taste. The sales team understands that each person who enters the store is a potential customer and must receive the best experience and is completely satisfied to become an instant customer. ‘Refresh, Renew, and Revitalize ‘assures customers of the company’s goals in making their hydration experience special. These three words are on the bottles, the company’s website, brochures, and banner for events. Customer feedback is used to improve the marketing and delivery strategies in order to keep customers satisfied and remain competitive. Healthy Alkaline Water 4U is a small company and is able to offer a more personalize approach to vendors. The sales team visit the grocery stores and gyms that sells the product to ensure the sale space and display are adequate. This rapport with the managers and staff of suppliers can be beneficial to the sales of the product.

Marketing Vehicles

Healthy Alkaline Water 4U brochures will use the company’s website, hosting events in store, health spas, and gyms as marketing vehicles. These marketing vehicles will give the opportunity to remain interactive, visible and have low cost, which suits smaller companies that want to improve its position in the business. The company hires temporary staff that are and paid hourly to disseminate brochures. These individuals will receive a two-hour training before going out on the road to target locations. The website access to numerous viewers who are able to get answers to their questions and read reviews from other customers who have used the product. Hosting an event at health spas and other venues are another way to increase sales. In-house events will get people in the door and make them more likely to become customers.

References

Abrams, R. (2014). Successful business plan: Secrets & Strategies (6th ed.) Palo Alto, CA: Planning Shop.

American Community Survey (2017a). Retrieved from

https://www.transparencymarketresearch.com/non-alcoholic-drinks-market.html

American Community Survey (2017b). Retrieved from

https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF

Billand, P., Bravard, C., Chakrabarti, S., & Sanangi, S. (2016). Business intelligence and

multimarket competition. Journal of Public Economic Theory, 18(2), 248-267.

https://doi/10.111/jpet.12180

Business Insider (2019). Retrieved from https://www.businessinsider.com/essentia-electrolyte-

water-review-ionized-alkaline-ph-balanced

Census Bureau (2017). Retrieved from http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk

Essentia Water (2019). Retrieved from https://essentiawater.com/?gclid=EAIaIQobChMI1c_c-

M7E5QIV5B-tBh2rZgnREAAYASAAEgKUnfD_BwE&gclsrc=aw.ds