Operations, Technology, and Management Plan and Business Financials

The local area, where the drink will be launched and aims to make significant success before a decision to move out is a home of several sports teams. The areas have two basketball teams, a football team, and multiple schools who engage in sports regularly include leagues which run on every weekend. It also has multiple gym facilities for people interested in fitness. All these facilities are perfect hubs to market and sell the beverage, and the firm will be critically analyzing these market segments. The drink is being launched in a metropolitan area, where levels of education are extremely high. In this area, close to three-thirds of all people are degree holders, with others holding higher qualifications. Even those without degrees still have a high school or college education. The level of education is instrumental in ensuring people understand the value of this drink. Unlike in populations dominated by low education standards, it is hard to mislead people in this area about anything including the contents of this drink.

The gender in this area is balanced out. However, when it comes to those in active sports like basketball, soccer, among other sports, men tend to be more. It is therefore worth assuming that men are likely to form a higher percentage of those who will consume the drink. The population also has some of the best income rates in the US, with an average individual making $70,000 in the region. On average this is an attractive salary and means the local populations possibly have excess to send on things like drinks, sports and such initiatives which will drive the sales of the drink.

Market Competition

Rivalry

The drink will enter a market dominated by other energy drinks like Monster, Coca-Cola Balk, Lucozade, Red Bull, Power Horse among several others (Thursby, & Berbari, 2016). These are global multinationals which have been on the market for a considerably long time. Setting up to compete with these drinks will be suicidal for BOOST. However, it can create a niche market to kick-start the sales. The drink will sell within a radius of 25 miles. This is a considerably small region, and the firm can customize the drink based on the needs of the local market. In essence, the firm will not compete with established energy beverage lines but aims to create a different unique market for its drink. It cannot survive with the apparent rivalry if it decides to take up market leaders.

Suppliers

The firm aims to produce its drinks 100 percent in its local plant. However, it will contract other suppliers to supply other products like packaging materials. Despite that, the firm will get hold of the supplier’s forces and can dictate the number of drinks reaching the market at the predetermined time.

Customers

Customers will definitely hold a very powerful position, and the success of the beverage will be based on their reception to the drink. Satisfaction is what the firm will closely guard given there are so many substitutes available to customers.

Threat of New Entrants

Better Drinks is itself a new market entrant, which shows that other firms can easily enter the market. Manufacture of beverages is a low capital enterprise with very favorable regulation. That means there is a constant threat of new entrants, and creation of new market niches will not guarantee that other entrants will not come and join the market segment.

Threats of Substitution

There are so many soft and functional beverages which can substitute Montip. The threat of substitute is therefore real, and the firm must ensure it produces the best drink, which meets customer, needs to ensure they do not abandon it for other beverages.

Strategy

The marketing strategy will be based on understanding the market needs in terms of packaging, content, flavor and other customizations. Established drinks like Red Bull and Monster come with a similar taste, which may not be favorable with every place. Montip will try to offer a product which reminisces the tastes of the local needs in terms of taste and flavor. It will give it the flavor of some of the commonly consumed fruits, just to ensure it tastes like a local product. That is one strategy to localize the product.

The company’s core message will be producing and marketing a local product. It will also market the product as high energy, locally customized to meet the needs of the specified population. This method will certainly make most people if not all in the local area is aware of the drink and increase their visibility.

Marketing Vehicles

Billboards - This is one of the most effective vehicles of raising brand awareness for products within a specified locality (Law, Tavitiyaman, & Zhang, 2015). They often display witty and distinctive visuals to passers along busy streets, highways, malls or any other part frequented by masses.

Another important vehicle will be building an online presence. This starts with establishing a website, opening Facebook age, Twitter and many other online platforms. Other than raising visibility and brand awareness in today’s highly digitized consumer, those platforms will also be instrumental in communication, public relations, events organization among others.

The firm should also consider sponsoring events, particularly school and sports ones where users are likely to require and consume energy drinks. Other than increasing sales, sponsorship has an effect of increasing the brand awareness and visibility (Meenaghan, 2013). Lastly, sampling the products in events and local stores will also enable the salespeople to meet customers, introduce them to the drink and even make sales.

References

Guelinckx, I., Ferreira-Pêgo, C., Moreno, L. A., Kavouras, S. A., Gandy, J., Martinez, H., ... & Ma, G. (2015). Intake of water and different beverages in adults across 13 countries. European journal of nutrition, 54(2), 45-55

Law, V. T., Tavitiyaman, P., & Zhang, H. Q. (2015). An analysis of industry forces, strategic implementation, and performance: Evidence from state-owned hotels in China. Journal of China Tourism Research, 11(3), 315-336.

Meenaghan, T. (2013). The role of sponsorship in the marketing communications mix. International journal of advertising, 10(1), 35-47.

Thursby, M. C., & Berbari, M. (2016). Identifying and Evaluating Market Opportunities. In Technological Innovation: Generating Economic Results (pp. 33-58). Emerald Group Publishing Limited.

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