Marketing Plan & Sales Strategy and Marketing Budget

1. Define your company’s target market.

a. Analyze the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Support your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Arcadian is a unique business and offers differentiated products to the consumers. It is offering Pina colada in almost 5 flavors, which increase its specialty and make it different from normal manufacturing companies. It is not possible to find so many flavors of Pina colada from one café or company. In addition to this, the company promises to provide Pina colada within a minute in disposable cups, which can be consumed on the go. The company is opened at VA, Chantilly which has a population of 23039 according to the 2010 population survey. This place lies in close proximity to Washington which is a metropolitan area. Hence, many people from Chantilly go to Washington on daily basis for work and this makes the lives of its people very hectic and busy. What people of this locality need is a tea shop which provides them delicious tea within minutes which can be consumed on the go. This is what Arcadian is providing. Its amazing 5 flavors enable consumers to choose from a wide variety of products and make their own Pina colada, which is not an option available in the market currently. This place is central to a number of recreational places such as Fair Lakes Virginia which means that more people head to this place for fishing and recreation. There are 6955 households in the region with a population density of 1916.6 people per square mile. Income of people living in this area per annum is roughly $121,141 with a per capita income of $44,267. In addition to this, this locality has up to high schools available in the region which means that the teenage population is in excess here. This area has people belonging to all ethnicities such as Native Americans, Asians, Hispanic and Africans.

b. Outline the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). On the basis of the information provided above, it becomes clear that the population of the area has the ability to purchase Pina colada on regular basis. This can be assumed from the fact that the average household income is stable and good enough to be spent on a Pina colada cup, which costs less than $2. Secondly, Pina colada is a drink, which is loved by people regardless of their level of education. However, the younger population may not find themselves inclined towards regular Pina colada. For them, the option of choosing from almost 5 flavors is captivating. Furthermore, people of all ethnicities, which mean that the company can target the entire area for its sales, love Pina colada across the globe. The product offered by the company will captivate people from varied tastes and cultures due to its ability to offer to them worldwide flavors in just a minute.

2. Assess your company’s market competition.

a. Use the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Currently, the competitors of the company in the Pina colada category include the processed Pina colada companies offering majorly Cream Pina colada while only few are offering additional flavors such as lime Pina colada and peach Pina colada. These companies are not having their Pineapple form as sit in places but are only selling through retailers in packages. Secondly, the Pineapple offered by these companies need to be made at home by using additional things like sugar, cold water, cream, coconut and milk if needed which further increases the cost of the Pina colada. In addition to that, these are not sold on credit by the companies themselves as they have no direct contact with their consumers. It depends on the retail outlet’s policy to sell the Pina colada on credit or not. Hence, this type of Pina colada cannot be consumed on the go, it has indirect costs associated with it, the price per package is also high and flavors are not good. Due to the bland imagery of these products, youth does not like to associate with it. Hence, it appeals to elderly people only and puts off younger generation.

b. Defend your strategy to successfully compete against market leaders in your segment. It must be noted that the competition for the company is majorly in the pineapple market, which is the main offering of other companies. It will be difficult to penetrate in the market as a Pina colada seller solely and to sell the products through retailers (Kotler & Armstrong, 1991). What distinguishes this company from competitors is its ease of access and use. Customers can grab their cup of Pina colada on the way to their office in disposable cups, enjoy as many flavors as they want, mix and match their own flavors to come up with new customized ones and can also enjoy drinking Pina colada in the café. Youth these days give more weightage to the experience they have through a product or service and if a product has a cool imagery, they like to associate with it. In the case of Arcadian, youth would like to explore varied flavors along with the cool imagery which will make them loyal to this brand name. Also, this product can be bought on credit as well by the customers. This will give an edge to the company as people these days want to carry fewer cash and make more credit purchases.

c. Defend your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). In non-alcoholic beverages market, the leading company is Starbucks which offers coffees primarily. Though it is no offering Pina colada, it is capturing the non-alcoholic market from many decades across the USA. To differentiate Arcadian against Starbucks, this company will promote its Pina colada flavors through excessive marketing campaigns. It will make use of the local radio channels to get its message across. The competition in the market has increased over the past few years primarily due to the inclination of people towards the non-alcoholic beverages. However, Pina colada tend to be heavy and it takes a lot of time to make them. This is a differentiating factor for this company and the Starbucks. For people who want something light and refreshing, Pina colada is a better option and if Pina colada is being offered in a minute, it is even better.

3. Clarify your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). For the target market of Arcadian, the two things, which define it the most, are feelings and functions. Pina colada has a number of positive functions, which include the refreshing feeling it gives to the consumer (Kotler, 2000). It is available in different flavors which can induce sleep, enlighten your day, make you feel relaxed and perform similar other functions. Pina colada helps in reducing weight for weight conscious people by offering them lime Pina colada. It gives refreshing feeling through the peach flavored Pina colada. Also, Pina colada is associated with feelings and emotions. Starting your day with a cup of Pina colada leaves you feeling good for the day. Pina colada’s flavor depends on your mood and on the basis of that, choosing from a wide variety of Pineapple products will further add to the feelings. The message this product will bear is of “Giving a refreshing start, a healthy day and a carefree end to your day” which refers to the flavors it offers and the effects they can have on your personality.

4. Identify the marketing vehicles you plan to use to build your company’s brand. Justify the key reasons why they will be effective. Provide examples of other non-alcoholic beverage companies that use these tactics effectively. To market this company and its products, the first step will be to use social media marketing which does not require any payment (Berkowitz & Berkowitz, 1992). It will attract youth and will pave the way to creating excitement in the target audience prior to its launch. Through various viral videos, the brand can get its message across and can create hype about its launch. Secondly, since the packaged form of flavors is also available, they can be sold through retail outlets which will promote the brand even further.

References

Berkowitz, E., & Berkowitz, E. (1992). Marketing. Homewood, IL: Irwin.

Kotler, P. (2000). Marketing management. Upper Saddle River, N.J.: Prentice Hall.

Kotler, P., & Armstrong, G. (1991). Principles of marketing. Englewood Cliffs, N.J.: Prentice Hall.