week 7
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bus599_week_6_1502716848.docx8
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Write Marketing Plan & Sales Strategy section of your business plan
I am designing a marketing plan of Steel Nutri-drink Non-Alcoholic Beverage Company and in this plan I am doing its market segmentation, assess the target market on the basis of segmentation and then I would assess intensity of competition in its market. Moreover I would be planning for the marketing vehicles to be used.
Define y*our company’s target market.
Steel Nutri-drink Non-Alcoholic Beverage Company would target all the demographics with an emphasis on the age group between 15 to 40 years. I would be targeting college graduates, university students, athletics and professionals who need nonalcoholic drinks to revitalize their energy. The outlets of brand will be located nearby colleges, universities as well as shopping malls to capture more market share. Moreover I am planning to cooperate or do some agreement with some renowned universities who would be offering this drink. Moreover I would cooperate with renowned Irish brands like Spar or Centra that would help in capturing more customers as most of customers are loyal to these brands and thus when they come there we can attract those customers to use our brand too. This is an effective marketing strategy to make use of some renowned brand name of malls for raising our customer base. In order to market our brand we would be segmenting market on the basis of demographics as well as psychographics for positioning brand effectively.
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). Outline the demographic information for your company specified on the worksheet.
Appropriate market segmentation is very integral for correct positioning of a product (Weinstein, 1987). Initially our firm is targeting Ireland but in future we would expand geographically by targeting states that are having warm weather as consumption of drinks is higher there for quenching the thirst.
Education
Steel nutria drink will refine its marketing efforts on basis of educational status as we are targeting students of under graduate, graduate as well as post graduate level. One of the major reason of choosing students as target market is that their consumption of nonalcoholic soft drinks is higher as in groups they socialize more and thus thy consume drinks higher. Moreover they need more nutrients in order to have balance diet. They don’t consume correct level of vitamins and nutrients and in order to combat that issue we are offering a daily recommended amount of fruits in form of drinks that will be helpful for them to have healthy life style without hassle of purchasing fruits and cutting them for consumption. Currently they are consuming more alcohol so we had the opportunity to offer them healthy solution.
Age and other demographics
Drink is a commodity that is being consumed by the people belonging to any age so we are targeting people of age 15 to 40 as in this age people need more energy due to their hard work. People of this age are students or professionals and in their busy routine they don’t find time for themselves and thus don’t have balanced diet. Our brand is targeting all that group.
Our target market include people belonging to middle class as well as upper class. Moreover we are targeting densely populated areas like in downtown Dublin.
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Assess your company’s market competition. Use the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition
Some of the main competitors in Ireland of our nutria drink include the following:
· Miwadi
· Bulmers Cider
· TK Red Lemonade
· Baileys Irish cream
Defend your strategy to successfully compete against market leaders in your segment.
New brand can only survive if it has some solid competitive edge over existing brands (Diamond & Pintel, 1991). Our competitive edge over the above brands is that we will offer the fresh beverage while most of the above competitors are offering juices in cans that are not freshly made. Moreover once ordered we would strive to fulfill the customer order in three minutes which will be our competitive edge and its essential in order to capture market share as customer don’t like to wait more. We would strive to fasten our customer service and offer the fresh juice to customers as nutrients of fruit get dissolved and disappeared in few minutes so our brand competitive edge is that we are offering healthier, fresher beverage in three minutes. We are also offering larger variety of flavors in order to give customers the choice to select the flavor of his/her own choice. These strategies will be helpful to increase our market share as most of customers of existing brands can come to us once they come to know about fresh beverage that is being prepared so quickly. All the above brands are stablished due to which they can charge higher prices but our brand will initially charge lower price in order to capture more customers.
Defend your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution).
Steel Nutri-drink Non-Alcoholic Beverage will differentiate itself from all the above competitors by effectively fulfilling customer’s satisfaction. Our brand would strive to offer the highest quality products at reasonable or comparatively lower prices. Moreover our staff would offer friendly as well as speedy customer service. We would be having keen interest in customer’s satisfaction and in doing so our staff would be spending more time in perfection of recipes. Another differentiating feature is that we are offering different flavors so that customers can have choice of selection of flavor that they need. Another competitive edge of Steel Nutri-drink Non-Alcoholic Beverage is that we would be offering high quality beverage within three minutes of order delivery as customers don’t want to wait for five minutes or more than that. Only fresher juices and beverages have nutrients in them as nutrients leave the fruits in few minutes so we would ensure provision of fresh juices in three minutes to keep our product healthy.
Clarify your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s).
Currently Steel Nutri-drink Non-Alcoholic Beverage will be having competition from different brands that are dealing in beverages and creation of our brand will lead to retaliation from competitors. Our company would also be having competition from alcoholic beverages as well as coffee shops. In our starter advertisements we would be giving more emphasis on healthier as well as fresher aspect of our beverage. We would be having informative advertisement that would depict how Steel Nutri-drink Non-Alcoholic Beverage will ensure to be healthy over other soft drinks, coffee as well as other drinks that are packed in cans. Our brand will make use of life style as its message execution strategy whereby a family or group of students are on a trip and they feel thirsty and tired so having Steel Nutri-drink Non-Alcoholic Beverage will energize them due to its nutrients. We would also be making sue of renowned athletes who would market our product as these renowned athletes are opinion leader and many people follow them so this will be helpful to capture customers.
.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.
In order to promote our product I would be making use of advertisement as well as sales promotion as my marketing tools or vehicles. We would start advertising our product before its launch in order to create awareness among the customers regarding its benefits. We are also using sales promotion as our toll according to which company will be using discounts in starting months that would be helpful in attracting more customers. We would be offering campaigns like buying one and getting second one at half price in starting year so that customers can taste and maximum people can give positive word of mouth (Horchover, 2002). We would also be having partnership with some renowned universities as well as malls to attract more customers.
In order to set prices of our product we would be conducting an in-depth investigation of prices and then we would use market penetration a sour strategy whereby we would set our products prices lower than that of our competitive brands in order to attract larger customer base.We would be using blue color as a theme to promote as well as package our products as this color is symbol of pureness as well as freshness like water. This selection of accurate themes is also very important component for marketing of any beverage (Espejo, 2010). We would also use online marketing campaigns and we would use social media too to advertise our products.
References
Espejo, R. (2010). Advertising. Detroit: Greenhaven Press.
Diamond, J., & Pintel, G. (1991). Principles of marketing. Englewood Cliffs, N.J.: Prentice Hall.
Horchover, D. (2002). Sales promotion. Oxford (UK): Capstone.
Weinstein, A. (1987). Market segmentation. Chicago, Ill.: Probus Pub. Co.
