Strategic Management 2

Assignment 2

Marketing Plan and Sales Strategy

Name

BUS 599 – Strategic Management

University

Professor

Date

Target Market

The Frank Beverage Group will segment its market using several factors. These factors will help to maintain focus in developing the product.

Age and gender: There are many competitors in the market currently selling the mango juice. The data from 2017 census shows that on average the age of all people living within Washington, D.C. is 34 years (Factfinder, 2017). The Frank Beverage Group product will target young people within 25 miles from the location in Washington, D.C.

Education: Research into the education levels of people of Washington, D.C. shows that more than 90% are high school graduates and above (Factfinder, 2017). Selling the product to people from all levels of education will have an expanded market.

Income: The existence of many companies in the industry makes the market competitive. In Washington, D.C. locality, studies show most people are medium-income earners (Factfinder, 2017). The product will be low priced to reach people at all levels of income. The fairly priced product will be sold in different sizes to enable this.

Social status: The Frank Beverage Group targets to reach all consumers and requires customization of the product to satisfy the segmented market. Also, high competition requires that the company maximizes on its product branding and marketing.

Marital status: The Frank Beverage Group targets young people living within Washington, D.C. area. However, the company will not discriminate customers based on marital status. Classification of consumers based on any factors limits the market size and growth potential of the business.

Business: The lemonade-mango juice is a new product for the Frank Beverage Group. New entry into the industry requires unique strategies to position itself on the market.

Industries: The NAB industry is large throughout the world. According to energy drinks Research, it indicates that the trend of NAB consumption has grown steadily from 2003 - 2016 (Vercammen, Koma, & Bleich, 2019). This makes the business lucrative and attractive to most business entrepreneurs and thus high competition.

Years of business: The Frank Beverage Group has no previous years of experience, so it is a challenge to the company. However, the Frank Beverage Group plans to gain brand name through high-quality product affordable to all classes and levels of people in the society.

Company revenue: The Frank Beverage Group projects to reach a break-even point by the end of the second quarter. 10% profit in the third quarter and a 20% profit by the end of the first trading period.

Number of branches: The product will be sold through supermarkets and stores within 25 miles from Washington D.C. However, no branches will be available in the first two years to reduce operating costs, which may shoot the production costs high.

Market Competition

Competitor	Total revenue ($Billion)	Trend
Coca cola	44.3	Fall
PepsiCo	63.1	Fall
Dr. Pepper snapper	6.3	Rise
Monster beverage	2.7	Rise

From the table above, Coca-cola and PepsiCo have been the market leaders for a long time. However, the data indicates that Dr. Pepper Snapper and Monster Beverage have highly profitable companies with a steady increase in sales and revenue in fiscal 2015 (Bailey, 2015). The Frank Beverage Group uses accessibility, price and quality in competing with other NAB companies in the industry. This has placed the business on the map among the other big companies like Coca-cola. Besides, the company will position itself on the market by producing high-quality products at low prices which enable the product to gain a market share.

Company’s Message

Function: The major purpose of the Frank Beverage Group will be the provision of quality the lemonade-mango juice. The focus of the company will be to satisfy the needs of the consumers by providing affordable quality products on the market.

Finances: The Frank Beverage Group will finance fully the product development through shares, equity, and long-term loans.

Freedom: The customers can reach the product either visiting to the stores or going thru online shopping. Also, there are 2 different sizes for the customer’s choice.

Feelings: Though the product is of high quality and low price, the Frank Beverage Group will expect mixed reactions from the public on launching the product.

Future: The product envisions to becoming an international with the best health and low-priced products to meet the needs of all consumers of all levels of revenue and education in society.

Business name: The company name is The Frank Beverage Group, and the drink name will be Frank.

Slogan: Drink frank, drink healthy.

Keywords in marketing: The keywords in the slogan are drink frank, drink healthy. The words will persuade the customers that if they want to have a healthy drink then they should buy Frank products.

Product design: The product is made from freshly ripe mangoes, lemon juice, and mint leaves. Additionally, the product has no added sugars.

Logo: The product logo shows a yellow ripe mango with a lemon. The background of the logo includes the snowflake which means that the product will be firstly launched in the Christmas period.

Website design: The product will hire external services in designing the product website.

Blog language and design: The language used on the blog will be colloquial English to enable an easy understanding of all consumers visiting the blog.

Choice of social sites and media: The Frank Beverage Group will choose Facebook, Instagram, and Television for use.

Packaging: The packaging of the product is in a can with the logo. There are 2 different sizes which are in size 5.5 oz. and 11.5 oz.

Marketing Vehicles

The Frank Beverage Group will use TV advertisements and social media for the primary marketing. Word of mouth will also be taken advantage of during the early days of product sales. The Frank Beverage Group will open Facebook and Instagram pages to collect complains, advertise the product, and also update the customers on any improvements on the products. Building a social media site’s presence targeted to a specific customer can get better results than being on the most popular social media sites (Abrams, 2014). The products will be located in supermarkets and retail stores with a 25mile radius in Washington D.C. area. This method of selling is preferred due to the numerous challenges associated with chain distribution and other methods of merchandising.

References

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

Planning Shop.

Bailey, S. (2015). Insight: Major nonalcoholic beverage companies’ 2015 performance.

Retrieved from https://marketrealist.com/2016/03/insight-major-nonalcoholic-beverage-companies-2015- performance/

Factfinder (2017), Retrieved from https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF

Vercammen, K. A., Koma, J. W., & Bleich, S. N. (2019). Trends in energy drink consumption among US adolescents and adults, 2003–2016. American journal of preventive medicine. 56 (6). Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0749379719300273