Assignment 2: Marketing Plan

Assignment 1: Company Description and SWOT Analysis

Crystal Perkins

Dr. Tony Muscia

Strategic Management

July 20, 2015

The name of My NAB Company is Wine De Asti. The significance of the beverage is for wine lovers who enjoy the taste of different wines but no longer indulge in alcoholic beverages. The company would provide white and red wines and provide the different flavors as regular wines do as well. We would target clubs and lounges for those nights on the town, where adults whom no longer indulge in alcoholic beverages would like to enjoy a nice beverage other than water, soda, or juice, while others enjoy a nice glass a wine.

Our Mission is to offer an inviting and sophisticated beverage that does not lose the authenticity of your regular wine experience. We are committed to finding high quality products, which enhance its enjoyment, to maintaining the highest level of expertise and professionalism in order to market and sell these beverages.

The nonalcoholic beverages usage is on the increase in the country. This is because of the increasing concerns of the population to their health. The majority of Americans are becoming very sensitive of their health needs and are aware of the effect of alcohol to their health. There has been a very rigorous campaign in the globe against alcohol use that has led to the increment of the non-alcoholic drinks use (Harfmann, 2015). This drink is therefore going to be helpful to the drinkers as it will not bring any hangovers and will be useful to the customers as they will drink and drive.

A differentiation strategy is the most appropriate strategy for the product. This will allow the products to be distinct from the other products in the market; Differentiation can be achieved by having a unique packaging and the pricing. The product should not be lowly priced as it would create a cheap impression and low quality in the eyes of the customers.

The channels of distribution for the beverages will be a combination of several channels. The first outlets will be in the local retail store such as the supermarkets. This will enable the shoppers in these huge stores to access the drinks with a lot of ease. The drinks will also be availed to local food joints such as fast food restaurants and hotels. This will help the company reach out to the patrons eating in these hotels. In most cases, these are the people who do not like to take alcoholic drinks. The drinks will also be available in the entertainment joints throughout the major towns. This will be targeting the customers in the entertainment joints who may not be using the alcoholic drinks.

There are financial risks associated with these drinks. This includes the risks that the drinks may not be able to bring profitable returns to the company due to the low sales volumes. Financial risks also include the risks of running out of finances to produce the products or bring the products to the market. This is mitigated by having an elaborate financial plan and insuring the process (Olson & Wu, 2008).

There are Operational risks faced by the company. These risks relates to the daily operations and management of the products distribution. At times, there may lack coordination and control necessary to ensure smooth distribution of the products. There are also security risks for the products while on transit as they may be vandalized or damaged. (Meyer, 2009) The mitigation include accurate coordination and insuring the products while on transit

There are risks associated with the dwindling of the target customers in their purchasing power. The soft drinks sector is majorly affected by the level of income of the customers that may dwindle any time (Olson & Wu, 2008). Customers’ preferences may also change rapidly making the company invest in the expansion in vain.

The strengths for the products are the health and diverse flavor provided by the drink. This creates an edge over the other drinks. The weakness is the lack of much differentiation from the readily available drinks on the market. The products act as perfect substitutes for each other and may not bring an addiction. The opportunity of the products is the increasing heath awareness of the population to the need of taking nonalcoholic and healthy drinks. This makes the drinks have a huge market potential.

The major threat for the company is the huge competition from the industry well established firms such as Coca Cola and Pepsi. The ongoing campaign may make the customers confuse the product as being alcoholic.

References

Harfmann, B. (2015). 2015 State of the Beverage Industry: Imported, craft brews dominate growth. Retrieved from http://www.bevindustry.com/

Meyer, M. W. (2009). ethinking performance measurement: Beyond the balanced scorecard. Cambridge, UK: Cambridge University Press.

Olson, D. L., & Wu, D. D. (2008). Enterprise Risk Management. World Scientific.