MKT665/655 IP4

  

K Bailey

American Intercontinental University

Tech Warehouse

4/8/2021

 

Abstract

This is a single paragraph, no indentation is required. The next page will be an abstract; “a brief, comprehensive summary of the contents of the article; it allows the readers to survey the contents of an article quickly” (Publication Manual, 2010). The length of this abstract should be 35-50 words (2-3 sentences). NOTE: the abstract must be on page 2 and the body of the paper will begin on page 3.

 

Introduction

With e-commerce becoming popular with consumers with no signs of slowing down it would serve to implement a company for the consumers who specifically want tech items at the push of a button. Tech Warehouse will provide an e-commerce market with a large variety of brands whether it’s Smartphones, PC parts, Audio equipment, TV’s, Video Game consoles and much more. The company stands to separate itself from the competitors by making sure the products are provided at MSRP to counteract the price hikes in the tech e-commerce world being brought on by shortages and scalpers along with the ongoing pandemic. With the introduction of what the company serves to provide out of the way the rest of this article will breakdown what will be the catalyst to making the company successful by using analysis to explain it’s marketing plan.

Part 1: Industry/Category Analysis

            In recent years e-commerce has become a huge market and almost a necessity for most businesses as it can make up a large portion or sometimes the majority of a company’s profit margin. E-commerce has been branded the Bread and Butter of business due to the accessibility it provides for consumers to find the items they want to purchase with ease. In 2020 this became more evident as sales skyrocketed as most of the world went into lockdown due to the Covid-19 pandemic (Bridgwater, 2021). Even in its early days of infancy e-commerce had a surge thanks to tech and today is no different. With scalpers and third party sellers selling tech during the pandemic its becoming difficult for consumers to find the things they want for the prices they want (Kan, 2020). Tech Warehouse would serve as a counter as the company would provide tech products in a large variety of items and brands at MSRP so buyers could find what they need, when they need it without breaking the bank.

Part 1: Competitive Analysis (Positioning Map) 

            Tech Warehouse will serve as an alternative to its main list of competition in Amazon, eBay and Best Buy. In 2020 Amazon was second in revenue only to Walmart as the top earning retail companies in the US. Second to Amazon in the world of e-commerce is eBay and Best Buy is one of the top go to stores when it comes to tech (Author, 2020). Tech Warehouse will offer a guarantee of fair prices and reserved inventory which is something that would set it apart from the competition. The brands position will start off as an alternative with potential of becoming a market leader in time with proper decision making and consumer support. To properly position itself the company will lean into a large variety of products from multiple brands. Tech users have a large variety of items such as Smartphones, PC related parts, Video game consoles and software, audio equipment and more. Providing access to these assortments of items allows the company to reach a larger spectrum of potential buyers. Offering products at their normal price also adds to the value of the company and creates trust that buyers will get the items they need hassle free.

Part 2: Brand Strategic Plan (Vision/objectives/strategies/tactics) 

            Being a new upstart company its important to have a vision of what the company should be and properly develop a plan to accomplish it. The first step in building the brand of Tech Warehouse will consist of extensively marketing company through ads, promotion, and social media (Perricone, 2020). Getting customers attention and retaining it are two things that will be prioritized with the brand. Spreading word of the company and making potential buyers aware of the brands and items available will be key as buyers often wont even click if things aren’t transparent. While Tech Warehouse isn’t a household name the vision is to make it so by gaining customer support while also gauging their feed back on what improvements they would like to see. Understanding the consumer is the key to a successful business so early in its infancy so knowing their interest in products and in the shopping experience in itself will be highly important. With a dedicated consumer base a starting goal will be to conduct 50,000 transactions the first year. The company’s key point of emphasis is providing tech at its intended price so this goal is highly achievable with the proper marketing plan. Tech Warehouse is positioned to be an alternative but the company possesses all the upside needed to become a market contender as it provides a guarantee which the like of its competitors do not.

Part 2: Target Customer Segmentation Analysis 

            Electronics in the tech market can have a lot of value for a large variety of people and Tech Warehouse’s goal is to tap into that. In the past few decades tech has become more streamlined while also becoming more accessible to those that use it the most. Smartphones have become the normal and can be segmented for various age and income groups ranging from teens to seniors and low to upper class wage groups. Other tech like audio equipment that could vary from wireless headphones to speakers aren’t held within a specific age group either. The products that would most likely produce the most revenue in the current climate is video game hardware and PC parts. Due to the pandemic and its related shortages the newly released PS5 and XBOX consoles are in high demand. Another group of products in high demand are AMD and Nvidia GPU’s which are needed for high grade PC gaming. Video game hardware and software purchases saw a spike in 2020 as it reached a 73% as early as April due to the Covid pandemic and more people staying home (Vorhaus, 2020). Gaming has sustained its prominence due to it not having any real restrictions making it a genre of entertainment that has something for everyone. This creates another opportunity for Tech Warehouse to convert into a strength as the brand grows. 

Part 2: Customer Insight 

            Customer will be essential in building the brand as it is one of the most important aspect in establishing brand loyalty. Buyers often have their quirks about why they prefer products or brands that go deeper than just popularity or it being the best. A goal of Tech Warehouse will be to take feedback to understand these quirks which can help with business decisions related to the company’s products. By gauging buyer habits and collecting data via questionnaires the company can better understand how to position itself marketing and promotion wise as well. This also allows to company to follow and record which brands and products are more popular and which are more of a priority to those who want them the most.

Part 2: Brand Essence/Equity Elements

            As previously stated Tech Warehouse’s goal is to make sure consumers can find a large variety of tech products in a one stop shop that can be purchased at the push of a button at MSRP. This is more than just a goal as this is the driving force behind the brand and what sets it apart from its competitors. With scalpers and third part sellers raising prices its important for consumers to feel safe with online purchases and TW will provide just that. By listening to those who matter the most the company will continue to build to suit the people who put their hard earned money and trust into the brand. Tech Warehouse will build and grow by staying true to its ideas and listening to what the buyers want out of an e-commerce experience rather than simply providing and make changes based around what the company thinks they want.    

Brand Positioning 

            Brand positioning is key when it comes to any brand as it defines the company as a whole. Positioning establishes your company’s value, informs consumers on what differentiates you from the competition, and helps them understand what your products and services may offer. Tech Warehouse understands its competition and how much market control they have which is why the company is acting as a simplified alternative rather than a direct competitor. The brand will provide a service for buyers to purchase MSRP priced tech at a guarantee which is something that isn’t always guaranteed by brands like Amazon and eBay. This will be the driving point of difference between TW and the competitors and will also be the key reason for the buying decisions (N.A, 2021). In order to get the proper messaging across Tech Warehouse will develop a marketing strategy consisting of extensive research of the targeted audience based around what they want out of the brand and where they can be reached.

Brand Concept

            As previously mentioned the concept behind the brand is to use the popularity and accessibility of e-commerce to provide a large variety of tech products at the proper pricing in a guaranteed format. Competitors like Amazon often sell out of products only to have third party sellers resell them for an inflated price. Sites like eBay also operate with the focus being on third party sellers and auctions which can often lead to higher prices. Tech Warehouse will use a queue system for items that are sold out allowing customers to make a purchase and have the item shipped to them the second it comes into stock. While this isn’t a new method it will guarantee customers will receive their items without having to worry about availability or heightened prices from scalpers. The goal of the company is to make sure customer feedback is an integral part of the brand’s growth by making appropriate tweaks based on their needs and wants. Weaknesses and strengths will need to be accessed to make sure risks are properly handled to avoid unwanted issues. Over time with feedback from the consumers and proper tweak to the business model the company will begin to see substantial growth through trust and loyalty.

Strategic Brand Promotional Mix: Traditional promotions with rationale

            Promotion is the quintessential way to inform potential and existing customers of what your brand has to offer (Author, 2021). With Tech Warehouse being a new startup company with a ton to offer in the world of tech e-commerce a proper marketing plan has to be put into place to grab the attention of possible buyers. On a traditional level of promotion Tech Warehouse will use multiple tools to its advantage with one of the first being ads via newspapers, magazines and, radio. While they may be considered older methods they have proven to be effective over the years especially if the placements are in a position to reach customers with a related interest like tech magazines or tv shows. Another method of promotion for Tech Warehouse will be to get endorsements from credible and knowledgeable celebrities to help promote the company. It’s common for companies to find reputable and trusted celebrities to promote products they actually enjoy. Consumers are more likely to buy into something when its attached to something or someone that can be trusted.

Strategic Brand Promotional Mix: New Media Promotions with Rationale

            In the current day marketing and promoting a brand has found multiple avenues to reach large groups of people while remaining relatively inexpensive. Part of selling a product is understanding your target audience and promoting in places they frequent to get their attention and what’s a better place for tech products than the internet itself? Everyday the average person is going to encounter ads in various ways whether its their favorite social media platform or something as simple as ads before or during a YouTube video. Tech Warehouse will use this to its advantage and display ads via social media and even set up accounts outside of its home site to engage with customers, offer support and take in feedback. Tech products have been gaining visibility through sponsorships or sending products to social media influencers. Much like having celebrity endorsers credible tech reviewers like MKBHD often promote brands that they use and enjoy. Being able to capitalize on this could be a huge opportunity to reach new buyers as word of mouth and demonstrations explaining the services the company provide will be on full display from trusted personalities.

Conclusion

      Any startup company with stiff competition needs to have a proper marketing and promotion plan to get it off the ground and gain momentum. Tech Warehouse is a brand that provides a service many people could get behind and with a mapped out plan of the correct promotional channels the company is on pace to see substantial growth.

____________________________________________________________________________________________________________________________

V Jaramillo

American Intercontinental University

The New Product Launch

April 13, 2021

 

Abstract

The paper begins with an introduction that captures the main ideas. The introduction gives a glimpse of the company that the presentation will be centered on. The second part of this article provides an in-depth introduction to Nexus Green Tea as a brand and company. An industry analysis as well as the strategic plan has been discussed here. The subsequent part focuses on brand positioning and concept. The next part is about the brand promotion portfolio, and at the end a brief conclusion is given, summarizing the main ideas proposed.

 

The New Product Launch

Introduction

Nexus Green Tea is a very competitive brand that can provide customers with healthy products on the market. The company has become a distributor of healthy beverages and dry tea products. Its positioning map is highly articulate and has helped it to remain competitive in the market. Due to its effective promotional blending technology, customers are very familiar with the Nexus green tea brand.

Category/Industry analysis 

Nexus Green Tea is a global brand that competes in the specialty catering industry. Some of the biggest competitors in the industry include McDonald's and Starbucks Coffee. Although some companies like McDonald's do not provide alternatives such as tea or coffee, they do provide beverages, cold drinks, and snacks. Nexus Green Tea has differentiated itself in the market through various techniques such as in quality and the target market. My organization is a distributor of various flavors of green tea, which has led to the appeal of a niche market focused on healthy eating. For the aging clients, the green tea enables them to manage certain health conditions that they may be battling. On the other hand, the youths embrace the company’s products because they are striving to lead a healthy lifestyle. Nexus Green Tea slogan is “healthy living, a cup at a time.” The slogan fully illustrates the brand's intention to promote a healthy life. The company is committed to promoting a healthy life by providing quality beverages that are manufactured through a carefully thought-out process that begins with the procurement of raw materials. 

Positioning map

The utilization of a positioning map is critical for all organizations in the market. Through the positioning map, a firm I in a position to evaluate the current positioning of its products in comparison to those of the rivals. What is more, the positioning map enables a company to wise decisions as to where it wishes to be in future on the placing of its products in the market. Some factors are used by firms when carrying out a competitive analysis include the pricing, industry competition, pricing, characteristics of the products, and product use. Nexus Green Tea uses some of the following positioning technologies, as described below.

Nexus Green Tea has positioned itself as a healthier beverage option. In the market, there are many brands of drinks, some of which are warm and others. Through product diversification, we can fully meet the diverse needs of customers. Nexus Green Tea has come in to meet the needs of special categories of customers who seem to have been forgotten by manufacturers. These categories include those who are health-conscious and are looking for healthy beverage brands that they can enjoy. The elderly is part of these countries because their immune systems are weak, making them vulnerable to illness. This market component needs healthy beverages to help them control their health, and Nexus Green Tea provides this. After discovering that most of the health conditions that people are fighting for are related to their eating habits, some young people have re-evaluated their eating choices. In the market, these companies only focus on satisfaction rather than health satisfaction. 

Nexus Green Tea has also positioned itself in terms of pricing. The company uses a slightly more expensive pricing technique. There are different reasons why it has chosen this path. To begin with, the quality of the company’s product is not compromised. There is ethical sourcing of the raw materials and the company has a quality assurance and management department whose core mandate is to ensure that ethical processes are followed in sourcing of the raw materials. Consequently, the end products are of a high quality. The customers have thus equated the high prices to the high quality of products. Besides, the customers are also willing to buy at a slightly high price that most substitutes offered in the market because they believe they will achieve their health goals using healthy products (Porter, 2008).

Diversification is also another technique that Nexus Green Tea has used to position itself in the market. Due to the diversification of customer needs, organizations should provide diversified products to meet their needs. Nexus Green Tea is a distributor of various flavors and can help meet the various needs of customers. There is also diversification in the term of packaging. The management adopts diversified packaging technology to distinguish the quantity to cater to the diversified purchasing power of customers. The company packs the same products in different quantities, and the prices are also different. Apart from the ready beverages that customers can enjoy in the company’s office or grab-and-go, Nexus Green Tea offered the dried products that can be purchased and stored for later use. For example, a customer can buy a pack of hibiscus green tea leaves and take it home. The different packaging techniques have attracted customers with diverse purchasing power since even those in the middle class can afford to buy the smallest packets of the products and can even enjoy the beverages served in smaller cups than the normal ones. 

The Strategy 

Brand strategic plan-vision/objectives

Each organization in the market ought to have a clear vision and mission statement that will guide the actions and decisions that it takes. Nexus Green tea is not an exception as it has come up with a vision statement and has clear objectives on what it needs to achieve in the short term and even in the long term. The vision statement is ‘To establish Nexus Green Tea is the healthiest tea and healthy tea products dealer globally while maintaining the highest ethical standards while achieving growth.’ The vision statement has multiple elements, including:

• Healthiest tea and tea products 
• Maintaining ethical standards 
• Achieving growth 

According to its vision statement, the company is committed to becoming the best distributor of green tea and providing the best quality tea products on the market. To achieve this goal, the company directly engages in the procurement of raw materials to ensure that they are not harmed. The company itself is involved in agriculture, so it can produce some raw materials. Nexus Green Tea satisfies the ‘maintaining ethical standards’ component by hiring and also through the management which is involved in every step of production. During the employment period, you should have proof of ethics and good behavior, and throughout the employment period, the human resources manager will monitor the incident to ensure that employees are not harmed. In addition, the company also implements an ethical orientation training program for each new employee to teach employees about the required ethical standards. Growth is also critical to Nexus Green Tea that it has included in its vision. To achieve growth as a brand, the brand must increase its presence both online and physically. The company makes its online presence through a platform that enables customers to order and deliver their orders at a friendly price. In addition, it is also crucial to open new markets locally and globally (Abraham, 2012).

As for the goal, the main goal of Nexus Green Tea is to provide customers with healthy tea products. In terms of providing high-quality tea products, there is a gap between the market and the industry. Therefore, Nexus Green Tea can bridge the gap. In the short term, the brand hopes to obtain the highest quality tea distributors in the market recognized locally and globally. As part of its long-term goals, the brand expects to expand and open new markets. 

Customer target segmentation analysis

Nexus Green Tea target market has diverse characteristics. In terms of age, the brand is designed for people of all ages. This means that children, young people and even adults are suitable for the target market. The reason for this statement is that tea is a basic beverage in all families, and the ages of family members vary. Therefore, the manufacture of products should meet the needs of all age groups. The youths are part of the brand’s target customers. This includes working youth with purchasing power. These products are packaged in different quantities, so there is always one product available for individuals to purchase according to their abilities. Since the company focuses on healthy tea products, there are those youths who have made a realization that most illnesses people are battling today are because of they have decided to adopt healthy lifestyles to wade the diseases (Weinstein, 2014).

What is more, Nexus Green Tea is aimed at the older generation. These are people whose immune systems have been weakened due to age and are looking for healthy substitutes for beverages. The goal of natural products is to help this generation manage the health conditions they are fighting against. These elderly people rely on pension plans after retirement, which enables them to purchase products. 

Customer insight 

The concept of customer insight means that a brand has a thorough understanding of the needs, preferences, and the behaviors of the customers. Companies can use a variety of techniques to deepen their understanding of customer needs. One of them is to observe their buying behavior. There is a trend that can be predicted from the frequency of the customer and the products that are frequently purchased. Second, the marketing team can use online platforms and one-on-one interaction to get feedback from the customers. In this way, the team will understand the customer's preferences and adjust accordingly. Understanding the preferences of the customers is critical in determining what products to focus on. 

Brand equity

Brand equity refers to the value an organization derives from a product that is easily identifiable and well-known. Organizations create equity for their products by packaging them in a way that customers can recognize with ease, dealing with quality products and being reliable. The customers must derive this value from the way a company’s presents the products it deals with. Nexus green tea is a well-known brand in the industry, so customers associate their experience in the market with quality products. The company has also been dealing with high-quality products that customers can trust. The production and supply of these products are so consistent that the target market regards Nexus Green Tea as reliable. Reliability, quality, and easily recognizable packaging are some of the elements of the company’s brand equity (Burger, 2012).

Brand Positioning 

The concept of brand positioning needs to create an image in the minds of existing customers and potential customers. Different organizations adopt different strategies to effectively position their brands in the market. Through these strategies, organizations can convince customers why they should buy their products, rather than those of close competitors. Nexus Green Tea is not an exception in making attempts to create an image in its customers. It utilizes strategies such as pricing, unique and outstanding customer experience, quality and even through innovation. 

Innovation is a unique technology that the company has adopted over the years to differentiate it from its competitors and enable it to meet the diverse needs of its customers. Nexus Green Tea has from time to time added new products to its brand in order to achieve diversity. Although some of these increases are permanent, some of them are temporary. In addition to the different flavors of beverages that customers enjoy in stores, the company also offers dry products that customers can buy and use at home (Sengupta, 2005).

Pricing and quality 

Quality and pricing are two characteristics that marketers can use interchangeably. The reason for this incident is that many marketers believe that companies that provide high prices also provide high-quality products. Although this is not true for most companies, it is true for Nexus Green Tea, because the quality of its products is commensurate with the price. Customers are ready to buy products at high prices because they associate products with high quality. At Nexus Green Tea, the premium pricing is comparable to the quality of the products. 

Unique and outstanding customer experience 

In the past few years, Nexus Green Tea has entered the industry. It has learned the art of selling an experience rather than a product to its customers. The company’s ethical sourcing of raw materials is enough proof to its customers that the company fights for them. Consequently, they have the sense of belonging to the company rather than being simply customers. The sense of belonging is crucial for Nexus Green Tea marketers because they do not persuade the potential customers to buy as they already feel the need to associate with the brand. 

Brand Concept

Brand concept entails all that runs through the mind of a customer the moment a certain brand is mentioned. It is the brands mentioned above that make customers feel that the brand concept can be said to be the basis of effective marketing strategies and effective brand building. 

Nexus Green Tea has built its brand concept through authenticity. The brand’s marketing point is its authenticity and originality. While many organizations are looking making effort to come up with complicated beverages and products that will outsmart their competitors in the market, Nexus Green Tea is out bridge the need gap with products that supply the healthy needs of the consumers. Lifestyle diseases have risen with an alarming rate and the customers are left at the mercy of firms that are out to sell low nutritious products simply for profits. The authenticity of Nexus Green Tea has seen it focus on conducting its business in ethical ways hence providing their clients with original and authentic products that do not cause harm to their bodies. This means when customers hear the name Nexus Green Tea, which they think is healthy (Keller, 2013).

All aspects of the brand concept are the slogan and vision statement. The vision statement should speak for the company as well as its products. Nexus Green Tea vision statement is ‘‘to establish Nexus Green Tea is the healthiest tea and healthy tea products dealer globally while maintaining the highest ethical standards while achieving growth.’ The components of the statement represent the brand, and customers can easily identify it. Moreover, its tagline ‘healthy living, a cup at a time’ is also giving Nexus Green Tea an identity in the minds of the consumers.

In addition to the slogan and vision statement, the brand concept also involves a visual design that consumers can connect with and easily recognize each time they encounter it.

The company uses the visual effects to promote its products. The visual design is both rich and attractive. The green and yellow colors are eye-catching not to mention the earth-toned surface on which the cup is placed. 

Strategic Brand Promotional Mix: Traditional promotions with rationale

A brand promotional mix refers to the various strategies of marketing that are used by an organization to increase awareness of its products among the target market audience. The main purpose of the strategic brand promotion portfolio is to inform and persuade potential buyers about the benefits of the product or service provided. Therefore, the promotion mix will affect the buying behavior of the target market. Some components of the promotion portfolio include advertising, personal sales, public relations, promotions, and direct marketing. Any organization or business owner who has launched a new product or service in the market must use promotional strategies to garner the required exposure in the target market. Companies can choose to use traditional promotional methods or digital promotional methods. Digital marketing has been embraced by many firms in the recent past because of its ease of getting the message across to the target audience. The importance of the promotion mix cannot be underestimated. Therefore, companies eager to thrive must adopt traditional media and new media to raise awareness of their products and services (Wolfe, & Twedt, 1970).

The traditional promotional mix consists of techniques is comprised of techniques that do not give the marketers a direct interaction with the target audience. Some traditional promotion techniques include television marketing, radio, telemarketing, the use of billboards and flyers, and print media advertising, such as the use of magazines and newspapers. When using the traditional promotion mix, the company should integrate the other parts of the marketing mix. These include location, price and even products. 

Nexus Green Tea has been using traditional marketing techniques. One of the techniques that the company uses to create awareness of its products is through sales promotions. The company uses sales promotion from time to time. The technique has helped in retaining the current customers and even attracting new customers.  Nexus Green Tea uses promotional methods because it is a short-term promotional strategy that can greatly promote sales. For organizations, this is a suitable technology because it helps convey useful information to customers, and because it is short-term, it does not incur huge costs. 

The other traditional technique used by Nexus Green Tea is television and radio advertisements. Mainstream advertising has many benefits because it allows marketers to reach large audiences at once. This means that promotion goals can be achieved in a very short period. In addition, the target audience of Nexus Green Tea may spend more time watching TV and listening to the radio, especially those who are older. People in this age group are not easily attracted to social media platforms. Therefore, television and radio are the best media to reach them. Nexus green tea is aimed at the aging generation because the immunity of this category is weak and can be damaged by age. Therefore, they need healthy products to stay healthy and help them resist opportunistic diseases that attack them due to a weak immune system. Besides, television advertising is also affordable as the organization can run the adverts at prime times for some time and choose to have them run at other times of the day since the target audience is loyal television viewers and radio listeners (Wolfe, & Twedt, 1970).

Nexus Green Tea also relies on publicity as a combination of brand promotions. Maintaining a healthy and good relationship with the society is a great and effective marketing tool. A good public relation begins with treating the employees well. When the employees are meant to feel a part of an organization, they go out of their way to adopt behavior that promotes its affairs among the society it operates in. The organization has also been taking part in community activities such as environmental conservation activities such as tree planting, offering scholarships to the needy in the society and supporting activities aimed at increasing the awareness of general community issues. Through this kind of interaction, the society supports the company by purchasing its products. 

Strategic Brand Promotional Mix: New Media Promotions with Rationale

New media promotions play an important role in the current position of Nexus Green Tea in the industry. New media promotion means that digital marketing relies on the Internet to reach target customers. Due to advancement in technology, it is pertinent for all organizations that wish to achieve their goals to utilize the digital space and platforms. Nexus Green Tea is no exception. The company’s brand the promotional mix consists of the use of new media such as Facebook, Twitter, LinkedIn, Instagram, and Reddit. The use of these social media sites has greatly changed the way Nexus Green Tea conducts business. Since most young people use these social media sites, the company has invested a lot of money in new promotions like traditional promotions. There is also a lot of peer influence, which in turn drive the company’s sales. For example, when a Nexus Green Tea customer posts a video narrating his or her experience with the company’s products, the video gets likes, and many viewers want to associate with the company and place orders to have a similar experience (Quesenberry, 2020).

The new media promotions attract a lot of customers since many of the company’s target audience are in the age groups that enjoy socialization. For example, a recent study showed that Facebook (which is the main promotional medium for Nexus Green Tea) has approximately 2.45 billion monthly active users, while Twitter has approximately 330 million users.  Many of these users like the Facebook page of Nexus Green Tea, and users on Twitter are also following. The implication is that they can get real time updates from the company’s marketing team. The company uses videos to promote new products and continues to educate customers about the different products it offers. New media promotions are very beneficial to Nexus Green Tea because they are cheaper compared to traditional advertising media. 

Conclusion

Nexus Green Tea Company is an organization facing fierce competition in the market. Therefore, it should adopt effective positioning technology and promotion methods to gain a competitive advantage in the industry. The use of a combination of traditional and new media techniques in marketing is useful in attaining the desired objectives. Nexus Green Tea Company should do its best to ensure its visibility in the market and enhance its brand concept.

____________________________________________________________________________________________________________________________ 

C Mobley

UNIT 4 - GROUP PROJECT

Sun 4/18/2021 8:22 PMLikeUnit 4 - Group Project Like PostFlagUnit 4 - Group Project Flag Post

Abstract

Allure is a global brand that manufactures luxury automobiles. The luxury automobile market is valued at over 400 billion. In 2020 and is expected to reach over 500 billion by the year 2026. The world of luxury continues to increase globally. Allure's vision is simple; to provide premium automobiles to prestigious people. Allure focuses on encouraging customer loyalty.

Introduction

Allure is a global brand that manufactures luxury automobiles. The company's product mix includes cars, SUVs, sedans, and crossovers. The luxury car industry is known to provide the highest quality of comfort, safety, and performance. The luxury car industry is expected to continue to rise in sales throughout 2026. Allure’s brand is known globally as a symbol of prestigious status, class, and wealth.  Allure products are considered to have a sleek, luxurious design, along with top-of-the-line technology.  Allure also offers a variety of services to its customers. In their fully staffed sales center, they also have service centers where they provide various repairs from services and maintenance, tires, and parts. Because Allure is manufactured with only high-grade material and sheer precision on the details, it is highly recommended that customers use the services, parts, and tires offered exclusively by Allure dealerships. Allure ensures a consistent quality of care, service, and parts to ensure their automobiles' life span. 

Part 1: Industry/Category Analysis

           Allure automobiles are a part of the luxurious automobile segments. The luxury automobile market is valued at over 400 billion. In 2020 and is expected to reach over 500 billion by the year 2026. The world of luxury continues to increase globally. According to Statista, the luxury car industry accounted for .7% of the 2019 global market revenue (Statisic, 2021). Luxury attracts wealthy clients globally. Owners of luxury vehicles see them as a symbol of social and financial status. A brand is considered luxury based on its perception (Kapferer, & Bastien, 2012).. The high-end market segment consists of passenger cars, SUVs, etc. 

The industry leaders consist of Mercedes, BMW, Cadillac, Lincoln, Bentley, Porsche, and Rolls- Royce. Allure will follow the industry trends of creating high-end automobiles with dynamic design, industry-leading technology, high performance, and luxurious comfort. Like its competitors, Allure will produce premium automobiles held to a high standard. Their target audience consists of wealthy, upper-class society, including professionals and executives. Their modern vehicles are equipped with the latest technology and top-of-the-line features.  Allure appeals to the customers' wants and their desires to ha e top-of-line automobiles.  . Allure only focuses on the features and benefits of its automobiles. The CAGR forecasted to see a 5% increase from 2021-2026. 

Part 1: Competitive Analysis (Positioning Map) 

           The luxury car industry provides the highest quality of comfort, safety, and performance. In a recent survey, participants were asked what brand came to mind when they thought of a luxury car. Three out of five first response was Mercedes. Mercedes has built a worldwide presence as the top-of-the-line premium automobiles. Like Mercedes, the Allure brand plans to position its self in high quality and high prices. Allure will match and exceed its competitor's high-quality standards. Allure intends to build a strong presence of quality over quantity. Focusing on a distinguished group of high society, corporate executives, doctors, lawyers, and influencers, understanding that the goal is to gain customer trust and brand recognition, such as its top competitors Mercedes, BMW, and Audi. While BMW can cost more to maintain than Mercedes, Allure automobiles will offer free oil changes and tire rotation for loyal customers, but other services will be top-aligned with BMW prices. Allure will offer sedans, coupes, SUVs, and crossovers, just as all three competitors. The attraction will feature top-of-the-line luxury comfort, innovative technology, the highest comfort level, and high-quality performance. Allure we become a global name. Recognized by its symbol and drove by the wealthiest people around the county. 

Part 2: Brand Strategic Plan (Vision/objectives/strategies/tactics) 

           Allure's vision is simple; to provide premium automobiles to prestigious people. Allure focuses on encouraging brand loyalty. Focusing on a high level of quality, unique design, the best safety features, and the latest technology.  Allure offers only the best craftsmanship expected from a luxury vehicle.  Allure’s luxury cars will offer a number of technology options include antilock brakes, review cameras, headrest TV screens, Bluetooth connectivity, music interface, remote starters, electronic parking aids, rain-sensing windshield wipers, and so on, these cars make driving safe, smooth, and hassle-free (Nair, 2019). An Allure automobile is more than a car; it is an experience. Driving a luxury car is an experience in itself, especially if it is an Allure automobile. The brand stands for providing premier-driving pleasure, along with an interior that is nothing short of fantastic, creating a true luxury feeling in a personal space.  Allure's objective is to produce premium products, provide premium services, and prepare prestigious people for a luxurious experience. Luxury has never been about the price. It is about the brand and its authenticity. It is about appealing to the right level of heritage and pedigree—understanding how this prestigious group of customers desire a feeling from their purchase. Allure will provide that feeling that experience, that elite status of buying from start to finish; from the moment a customer walks in or visits its website; they will receive superb customer service from only the best salespeople. That will ensure that this will be an authentic luxury shopping experience.

            Allure uses celebrity endowments and social media influencers to help promote the features of the luxury automobile.  As well as paid Facebook, Instagram, etc., social media ad and Bing ads to help capture the attention of its target audience. According to Bing, one-third of their audience has an annual income of 100,000 or more Allure will target ads based on the user’s income level.  Allure targets its high-end market by using paid searches and paid word association.  Therefore, when certain words are searched Allure will be at the top of the search engine optimizers list. . Allure excludes using words like cheap, inexpensive, free, in their search engine optimizer but will adapt words like luxury, wealthy, prestige, pedigree, and powerful as words associated with the Allure brand. 

Part 2: Target Customer Segmentation Analysis 

    Luxury cars provide a high level of comfort and safety features, creating opportunities for the market. Allure's target audience consists of millennials and the upcoming Generation Z. The Allure design is  for customers in the high-end income bracket. The premier car line of products ranges in price from $30,000 to over $100,000. Allure is marketing to an upscale target audience, primarily individuals with an annual income of over $100,000. Their goal, however, was to expand on their already strong brand. Allure focuses on building brand consistency, unique benefits, and appealing to its wealthy customers' emotions. Allure is not trying to be the typical luxury brand; they are trying to be the ultimate luxury brand. Allure brand success depends on the success of the new generation. Allure will host annual events that bring out the consumers to preview the latest releases, test drive, educate, and build a brand community. The luxury car market ships car worldwide and caters to the high-end target audience. Their marketing mix pricing is at premium product prices, premium service prices to match their premium product line. 

Part 2: Customer Insight 

Better customer experiences mean happier customers, and customers that are more pleased represent a better brand investment. To how do leading brands find that sweet spot with local marketing? As it comes to allure, it sets its sights on returning customers with high-quality credentials. Luxury has been associated with the likes of art, because both aim to be perceived as imperial and timeless and share a love for creativity, craftsmanship, rare materials, and exclusivity (Julie-Sofie, 2018).  Allure is one of the best examples of a brand doing luxurious customer satisfaction right. As one of the most well-known brands in the automotive industry today, Allure is synonymous with car buyers with both polished sophistication and performance. We are featuring a diverse line of luxury sedans, crossovers, and SUVs as the new luxury brand, Allure, makes its debut. Allure offers the very finest in automotive engineering with our latest innovative brand of Allure motor vehicles. Allure is implementing the world's leading technology creating a memorable ad for this new Allure trademark. Our customer goal is for our customers to think of one or two of our "Luxurious Driving" ads just by hearing about it. We wanted to create relevant content in helpful and entertaining ways to advertise Allure based on data-driven insights. That way, the business hopes to reach both existing customers and those that might be considering Allure but do not yet own one. Allure is always thinking of its customer, consumer-first, which means for us mobile-first with speed—combining two technologies, accelerated mobile pages, and progressive web apps to bring both ends together on one site (Arica, 2020). It also shows when creativity and engineering are a priority. 

Part 2: Brand Essence/Equity Elements

         Like BMW, Allure represents in a variety of ways: awareness, reputation, differentiation, energy, relevance, loyalty, and flexibility (Kelley, 2019). The Allure brand will differ in the type of leisure cars provided. In addition, it is different because of the high level of comfort and safety features, creating opportunities for the market as we target millennials. Allures brand's relevance is innovating our new premium vehicle features, including a dynamic design that features the latest technology. New industry-developed Forward Collision-Avoidance Assist systems (a system that forward sensors to detect obstacles ahead, give warning to the driver, and engage breaks if needed) will be the Allure top-selling feature (Shukla,2020). Allure's essence and equity elements are similar to the BMW brand, and consist of a set of assets or liabilities in the form of brand visibility, brand associations, and customer loyalty that add or subtract from the value of a current or potential product or service driven by the BMW brand (Prophet,2021). Allure will adapt management guru Tom Peter’s famous quote: "In an increasingly crowded marketplace, fools will compete on price. Winners will find a way to create lasting value in the customer's mind."  In order for a brand to be considered a luxury, it has to be deemed luxurious by it customers.   The Allure brand will offer the essence of luxury, creating an emotional attachment with its customers.  The brand's dynamic design and elite social status will surely create lasting value in the mind of the customer. The beauty in the Allure brand, the value, the high endurance, the performance, the high-quality performance, will surpass the expectation of the customers. Allure's unique elements are such as comfort, premium upholstery, plush carpeting, polished wood trim, sleek styling, safety features, entertainment options, and even the distinct scent are signs of the brand's dynamic features. Another component of the Allure brand is that it is an automobile manufacturer known worldwide as a luxury symbol. The Allure extracts corporation value around excellence. Allure projects high performance and power. In addition, this brand exhibits elements such as precision, discipline, and efficiency.  By using social status, celebrities, and influencers to build brand awareness, and inform the target audience of the dynamic features and benefits. Allure will build brand awareness, public relations, and a divine force that will separate it from its competitors.  Allure customers desire the rarity of Allure automobiles, this makes them feel unique, powerful, elite, and one of a kind. Some elements that make this brand so successful are the brand component is an automobile manufacturer known worldwide as a luxury symbol. The Allure brand extracts corporation value around excellence. Allure projects high performance and power. This also brand exhibits elements such as precision, discipline, and efficiency.

Brand Positioning 

            Brand positioning refers to how the brand resides in the mind of the customer or desired customers. Allure luxury car collection will be the most sought out luxury automobile on the market.  The high-end leather seats, luxury features, and environmentally friendly automobiles will draw customers to the brand.  Customers who enjoy and look for the same values will be drawing these aesthetics and the safety features of the Allure automobiles to its target audience. Luxury vehicles come with better safety features such as traction control, side front airbags, curtain airbags, and anti-lock braking systems, as well as, better crash-test results (Nair, 2019).  The Allure commitment is to instill values that give it a distinct position in the luxury automobile industry. The Allure brand message will be consistent and precise, focusing on luxurious design, high performance, high quality, trustworthy automobiles.  With Allure automobile, its customers understand that this is a luxurious journey, not a destination.  Allure will earn the trust of their customers; make its way into their hearts, creating widespread of admiration for the brand.  Making it a brand icon among the wealthy, prestigious, and powerful. 

Brand Concept

            Allure’s brand concept distinguishes premium automobiles.   Allure vehicles are exceptional, not accessible.  Luxury product characteristics include their price, quality, aesthetic, and scarce availability.  According to Forbes, if it is exquisite, expensive, and exclusive, then it is luxury (DeAcetis, 2020). This is the reason customers are will to pay the price for the rarity or the exclusiveness.  Allure has built a worldwide presence as the top of the line, premium automobiles. Their leisure automobiles are globally manufactured and distributed. The brand has built a long last brand of superior style, innovative, high-performance vehicles for a particular social group. The comfortable and premium upholstery, plush carpeting, polished wood trim, sleek styling, and entertainment options differentiate them from its competitors. Allure, best known for its incredible power, outstanding artistry, quality safety feature, and unique craftsmanship. The Allure brand embodies value and empowers individual expression.  The goal is to develop a trusting customer-centric relation with the consumers. The Allure luxury automobiles must also line with Forbes, the definition of a luxury brand, and be very agile and innovative in order to gain the preference of the new luxury customers. Allure products are made with high-quality material, the latest safety feature, high-level performance feature, and authentic craftsmanship, which appeals to the old and the young.  The Allure automobiles offer safety features that appeal to families, and individuals.  Customers desire the Allure automobile and with its A logo it is immediately recognizable. This is what sets Allure luxury automobiles apart from its competitors.    Allure is brand-centric, focusing on maintaining a solid, trustworthy, high quality, prestigious perception to its customers. Ensuring that customers can identify with the brand concept, its excellent design, sophisticated aesthetics, and unique stature. 

Strategic Brand Promotional Mix: Traditional promotions with rationale

            Luxury is easily identifiable. Allure use all media channels for promotion, including social media, commercials, video ads, print, and billboards. The traditional promotions of Allure automobiles include traditional print advertisements.  These advertisements can found in high-end magazines, exclusive restaurants, luxury retail stores, and any other high-end publication.    As well as, television commercials that focus on the Allure car.  Implementing elements of design in both such as images, colors, sound, and emotional connections, such moods, and feelings. Allure will utilize direct and personal selling. Allure will work with and host sponsored events.  Lance Helgeson, said auto sponsorships and events, however, because both aim to connect with consumers outside showrooms (Halliday, 1999). Not only that an event allows Allure representative to reach the consumer directly attracting more customer participation.  The Allure brand advertisements target a specific target audience.   The Allure brand will create visually appealing ads and commercials that are immediately recognizable. Allure advertisements will offer precision, unique design, extraordinary features, innovative technology, and pure excellence that its automobiles offer.  Allure will maintain the perception that their automobiles are scarce and is a brand only available to the elite. The persona is a distinctive brand that identifies with its audience through brand communication in the advertisement.  Allure is capturing the personality, values, and emotions of their consumers through a variety of traditional advertising including print ad, commercials, events, and celebrity endorsements. 

Strategic Brand Promotional Mix: New Media Promotions with Rationale

Allure has a strong social media presence. Although Allure can be found on all social media platforms, the brand posts more on its Instagram page.  The Allure brand feels that it is important to be involved on all social media platforms, but it is more important to excel on one platform and then expand its horizon. Allure does stream digital ads and videos on all social platforms. Over time Allure, data team has found Instagram followers to be a more engaged, and effective platform to utilize. Allure’s goal is to focus on the quality of its automobiles.  Allure will be sure to post reels that focus on the features and benefits of the Allure cars, as well as pictures that display its unique beauty.  Allure will work with social media influencers to be brand ambassadors. Influencers help the brand connect to a broader audience who are interested in the same luxury lifestyle. Influencers can assist in building brand awareness, and attract a younger target audience Allure is looking for. The brand will feature blogs and feature customer testimonies that evolve around the excellence of the brand.   Allure is dedicated to increasing visibility on all social media platforms to add more value to this growing brand. Allure utilizes Instagram stories, chat, and hyperlinks that take the consumer directly to the product or a personal sales representative depending on the needs of the shopper. Sixty-two percent of Instagram users say they have become more interested in a brand after seeing it in a IG story (Allure is the preferred luxury brand.  Allure is a customer-centric brand, which ensures a personal representative is always available. This offers the consumer personal attention to take their time to shop and gather as much information as need.   Allure’s goal is to inform, assist, persuade, and remind its followers of the greatness in the Allure brand. 

Conclusion

          Allure's vision is simple; to provide premium automobiles to prestigious people. Allure focuses on encouraging customer loyalty. Focusing on the high-quality product to make their cars, a dynamic design that features the latest technology and high performance ensures customers invest in the best luxury automobile. The luxury car industry is expected to continue to rise in sales throughout 2026. Allures brand is known globally as a symbol of prestigious status, class, and wealth. Allure uses all media channels for promotion, including social media, commercials, video ads, print, and billboards. Allure focuses on the features and benefits of its automobiles. Allure is committed to continuing to build brand awareness and increase its brand value. As BMW and Mercedes-Benz compete in the same premium cars market, they have the same ambitious reference frame.  Luxury cars have state-of-the-art systems, and Allure is no different. With advanced technology, features that help prevent head-on collisions, and adding an extra layer of security for the people in the car (Sukla, 2020). Allure is one of the best examples of a brand doing customer satisfaction right worldwide. As one of the most well-known brands in the automotive industry today, Allure is synonymous with car buyers with both polished sophistication and excellent performance. Allure focuses on building a prestigious global brand that encourages customer loyalty and the ultimate customer driving experience.   Allure the luxurious driving experience.