week 4 project

August 11, 2019

1. Market Environment

The market environment is basically a combination of those internal and external factors which challenges the company’s environment in order to make a relationship with customers effectively and efficiently. Every business in this world needs an effective market environment in order to launch its new products efficiently. For this purpose, they must analyze all internal and external factors in detail so that the product would be able to perform in the market successfully. As far as this market plan is concerned, we are going to launch energy drink in the market for which we will analyze the market share, environment, competitors, etc. because there are a number of brands producing energy drinks i.e. Red Bull, Monster, etc. To launch this V Fusion Energy Drink, the market examination must be perfect, effective marketing campaigns, etc. because it’s a new product and it has to take place in the market among all its competitors.

a. Internal Factors

There are certain internal factors contribute a lot in analyzing the market environment of this new V Fusion Energy Drink. The internal factors are as follows:

· Workforce

· Capital

· Physical Assets

· Materials

· Market

Above-mentioned are basic factors through which we can analyze that this V Fusion energy drink would be able to perform well or not because internal factors need to be strengthened to attain maximum outcomes. For instance, we take the workforce which is basic and most important factor for the launch for this new product. We hire diverse and effective, efficient workforce for every department i.e. production, marketing, HR, finance, supply chain, etc. in order to make the whole process more strong and successful. Secondly, handsome capital is required to run advertising campaigns, brand awareness, etc. to educate people about this V Fusion Energy Drink because there are many others and progressing successfully in the market.

b. External Factors

In external factors, we examine both micro and macro-economic factors to analyze what’s going on in the market specifically about this product. Micro-economic factors include:

· Suppliers

· Market Intermediaries

· Business Partners

· Customers

· Competitors

· Public

Above-mentioned are micro-economic factors, some of them will be discussed and analyzed in detail. For instance, we take Competitors and Customers whose high importance would be given. To make this product different, we would satisfy our customers by using natural ingredients in this V Fusion Energy Drink. This is the way that we can differentiate our product from others and make no side effects and major diseases due to these like Diabetes. This differentiation would also help the company to create competitive advantage in the market so that the product would achieve a specific margin in the market and people would come to know about this product. Likewise, other micro-economic factors would also give the same or maybe high importance.

c. Macro-Economic Factors

There are certain macro-economic factors need to be examined in order to make this new product reachable customers around the world. We want to take macro-economic factors in order to supervise the product effectively managing the arising risks after analyzing the macro-economic factors and apply risk mitigation strategies to make this product reliable and a model of satisfaction for consumers around the world. Macro-economic factors are as follows:

· Political Environment

· Economic Environment

· Social Environment

· Technological Factors

· Legal Factors

· Environmental Factors

Above-mentioned are basic macro-economic factors which will be analysed in detail.

· Political Factors

As we have selected the United States as a home country for this product where we would launch this product effectively and efficiently. As far as U.S. political factors are concerned which may have great impact on the launch of V Fusion Energy Drink. Nowadays, the political environment is favourable for all new products, entrepreneurs, etc. but they all must follow the U.S. standards according to which the product would be launched effectively and efficiently. The government welcomes the new businesses to the U.S. to establish themselves on certain relaxation on taxes as well.

· Economic Factors

Economic factors are basically affecting the businesses and products a lot that’s why they need to be favourable especially for any new product. For the launch of V Fusion Energy Drink across U.S. we have analyzed the American economy in detail, GDP, growth, etc. Currently, the U.S. has 2.1% GDP growth which is as highest among several developed countries.

As far as the size of the economy is concerned, it is consistently growing over the last 50 years means the U.S. is progressing day by day and per-capita income is also high. By analyzing all these economic elements, V Fusion Energy Drink will be welcomed by the U.S. because there will be no struggle at all in waiting for the U.S. economy to become favourable for the launch of the product. We can launch it as we have already planned according to the statistics.

· Social Factors

Social factors are necessary to understand and implement certain strategies in order to satisfy customers. Because more than 60% of people think that energy drinks are not good for health due to which we must provide them confidence in products, natural ingredients, etc.

· Technological Factors

As we live in the 21st century, we need modern and advanced technology in order to run this business effectively. We use natural ingredients, for pure, hygienic processing of these resources, we need advanced technology which becomes a need for us.

· Legal Factors

Although our new product V Fusion energy drink does not contain any confusing ingredients we have to follow legal objectives of U.S. Law in order to run our business according to the U.S. standards.

· Environmental Factors

These are also important, for processing resources, production units, smoke, etc. we have induced modern technological units which do not extract smoke and other harmful gases which pollute the air. All these factors are being analyzed, examined thoroughly and as a result, we would focus on external factors and most of the internal factors i.e. diverse workforce, customers, competitors, etc. which will be contributing in product success.

2. Competitive Analysis

For a successful launch of the product, we must have extensive market knowledge i.e. competitor’s strategical moves, strengths, and tactics, etc. in order to analyze and launch according to gain competitive advantage effectively and efficiently. Market competition is basically influenced by certain factors which are as follows:

· Product Properties/features

· Number of Sellers

· Entry Barriers

· Locality

· Product Information

Above-mentioned are basic market competition factors need to be implemented in an effective and efficient way and competition starts when there is differentiation among the products. We have a competition among other energy drinks producing and selling companies based on product differentiation because this V Fusion Energy Drink has a significant distinction which other companies don’t have. As far as the company’s competitors are concerned, there are some significant competitors producing energy drinks in the U.S. are as follows:

· Red Bull

· Monster Energy

· Shark Energy Drink

· Pussy

· Energy Shot

· 5-Hour Energy

Above-mentioned are certain competitors of the company. From all mentioned above, we take two as an example and study them for the effective launch of V Fusion energy drink. As far as Red bull is considered, the greatest positioning strategy of Red Bull is their different brand image and product differentiation. They sponsor different racing and other extreme sports events in order to build their image associated with mental and physical performance.

Likewise, the marketing strategy of Red Bull is more interesting because they use attractive tag-lines, slogans, sponsoring extreme sports, events, competitions, etc. in order to show the product’s efficiency. They cover topics written on Red Bull marketing content because they provide importance to the enjoyment of the reader while reading, selling comes next.

Secondly, Monster Energy also has a unique market strategy based on experiences. They first examine competitor’s strategical moves, abilities in capturing the market. They sponsor races, college events, action sports, music, Music, gaming, etc. Due to sponsoring these events, they build their brand image as monster energy to come in. The public limited company works on the move/strategy in order to have an edgy and aggressive image to boot.

3. Demographic Element

Demographic element is basically a core component of every market plan. We target population specifically towards which the V Fusion Energy drink would be launched. For this purpose, we target population of all age-groups. Although people think that energy drinks are not good for health but we use natural ingredients i.e. fruits, vegetables which are mentioned on every V Fusion Energy Drink Can or Bottle. This actually differentiates from others and would be able to create competitive advantage because it is useful for all age-group people. Everyone can use this energy drink to boost their energy instantly along with no side effects at all.

Likewise, behavioural activities contribute a lot to the launch of the product. As we have mentioned above that, we sponsor racing, extreme sports events, etc. which changes people behaviours towards it and will start-use it successfully. Their minds would not think that whether it is harmful or not because natural ingredients always provide energy. There are basic market segmentation processes would be considered for this market, including these two mentioned above are as follows:

· Demographic Factors

· Psychographic Factors

· Behavioural Activities

· Technical Knowledge Requirement

· Benefits of the Product

Above-mentioned are processes through which we will process market segmentation along with other two which have been explained i.e. Demographic and Behavioural Activities.

Positioning Strategy

As far as positioning strategy is concerned, we will take it simple marketing campaign. As we are taking our products confidential unless they become final in order to sell in the market (Eruemegbe, 2015). We will distribute the product in schools, colleges, universities, hospitals, NGO’s, labours, etc. in order to taste and give feedback (Sihag, 2015). Due to the use of natural ingredients, we need feedback for effective market competition. We sponsor different sports events, school functions, athletics, etc. to make the audience think about the product and energy induced in it.

Pricing Strategy

Pricing strategy is most effective tool to implement in order to calculate a product’s price. For this purpose, we will use a pricing strategy which would be able to cover cost, packaging, backward integration, distribution, advertisements, etc. initially. Although we have our own resources from which transfer resources fruits, vegetables, etc. to factories in order to process it safely. Secondly, we would take a similar product from the market for price calculation and then adjust V Fusion Energy Drink’s price cheaper than it because it gives a pure message to users that we pure fresh fruits, vegetables, olive oil, etc. all these products are fresh and competitive as well.

To complete this market plan, we have used secondary research in which we considered scholarly articles, research articles, forums, website, etc. in order to complete the research extensively, effectively and efficiently.

References

Eruemegbe, G. O. (2015). Impact of business environment on organization performance in Nigeria- A Study of Union Bank of Nigeria. European Scientific Journal. Jan W., R., & Raffaella, S. (2017). The Different approaches that a firm used to set strategy. Harvard Business Review. Sarah. (2015). Everything you need to know about Unilever approach to media. M&M Global. Sihag, N. (2015). Environmental Factors impact on the Water supply system. Science Direct. Wang, H. (2014). The success of consumer-based apple watch tied to health care stakeholders. health data management.

Jan W., R., & Raffaella, S. (2017). The Different approaches that a firm used to set strategy. Harvard Business Review. Sarah. (2015). Everything you need to know about Unilever approach to media. M&M Global. Sihag, N. (2015). Environmental Factors impact on the Water supply system. Science Direct. Wang, H. (2014). The success of consumer-based apple watch tied to health care stakeholders. health data management.