Assignment 5: Business Plan – Final (i only need the excel part done, section 2)

Running head: MARKETING PLAN

MARKETING PLAN

Target market

The soft drink industry has dominated the non-alcoholic beverage industry for a while now. The rise of the middle class in the United States especially in emerging markets is one of the main factors contributing to the growth of the non-alcoholic beverage industry. According to statistics, the middle class is likely to rise by approximately 20% in the next five years.

The Hispanic community is fast growing in America and hence there is the need to create products that serve that market segment. The Hispanics include Mexicans, Cubans, Puerto Ricans and other people of central and southern American descent. Statistics on the growing number of Hispanics predict that the Hispanics population and buying power in the United States will have increased.

The beverage will also target millennial. These are individuals who are born between 1981 and 1996. This population represents 24% of the US population. These generations make extensive use of social media and other technological devices and have more product awareness compared to other generations. Hence they are referred to as the most influential generation. Most beverage companies target this generation. Statistics also show that the teen population constitutes the largest market for non-alcoholic beverages in the United States (Bailey, 2014).

Assessing the competition

Assessing a company’s competition is very important through all the stages of the company’s growth through the various economic periods. It is important to understand who the competition is and whether they are direct or indirect competition. This helps the company realize growth through understanding the competitors and researching on the best way to beat them (Gillette, 2009).

The main competitors in the market are Coca-Cola Pepsi and monster energy drinks. However product is similar to that produced by Monster Company. Monster energy drink company is still a growing company and hence has not explored the market well enough compared to Coca-Cola and Pepsi. This makes them less competition and gives my company a chance to grow faster if the right strategies are applied. Coca-Cola has the largest market share followed by Pepsi and monster. This is since Coca-Cola has been in the market for a very long time and hence created a large market. Monster energy drink on the other hand is a new company which is still trying to expand its market. Coca-Cola has been the market leader for a long time. Their products are perceived to be good by most people. However through proper advertising and branding, I believe that I can change these perceptions to my company’s advantage.

Coca-Cola’s distribution system is one of the most planned compared to any other soft drinks company. The company has a very big impact on consumers to an extent that distributers and wholesales need coke’s products in order to remain successful. The company’s position in the minds of consumers makes it a must have for retailers and wholesalers. Each and every distributor in my market segment has a coke product (Lucius Lu., 2015). However, they do not limit the number of competing product they can have. Thus distribution of my product is not hard. With good advertising and branding I am positive that the products will impact the market and sales with increase rapidly.

Marketing strategy

Statistics show that exposure of people to TV advertising has led to rapid growth in the soft drink industry. The number of people, especially children and teens, has increased over the last five years. This is a good avenue of advertising the product to target the teens and children. The second largest market for soft drinks is the millennial generation which as stated earlier refers to people born between 1981 and 1996. The best way to target this generation is through social media. They are known to be very involved in activities taking place in the social media. Accessing such a market is likely to increase the sales of my company’s product and thus helping the company realize quick growth and eventually becoming a market leader. The product will also target athletes. They provide a large market for energy drinks and hence through proper advertising and providing sponsorships for their events the market is likely to expand.

Advantages of advertising as a marketing vehicle

The modern business world has become so diverse that it is hard to enter a market without proper advertising of your products. It has become indispensable because of the high competition between producers and also between traders. Due to the increased number of similar products in the market, companies cannot make any profits if consumers keep changing their brands. Through advertising, the company is able to convince its consumers why they should choose that particular brand and stick to it. Advertisements also help increase the sales volume of a product. This is since producers are able to reach the consumers quickly. If the consumers are influenced, then they end up buying the products even though they do not them. Consumers are also influenced by timely offers advertised by producers.

Advertisements allow the producers to produce in large quantities and thus increasing their benefits since large scale production reduces the cost of production. Using influential people to advertise the products helps in creating public trust. The consumers thus end up trusting the company and its products. This helps in boosting the goodwill valuation of the firm as well as its image. This is turn helps the firm in dealing with stiff competition and also helps the company retain its customers’ trust even through depression business conditions. (Chowdhury, 2011).

References

Bailey, S. (2014, November 20). The Role of Branding and Advertising in the Soft Drink Industry. Retrieved February 14, 2017, from market realist: http://marketrealist.com/2014/11/role-branding-advertising-soft-drink-industry/

Chowdhury, V. (2011, April 15). Advertisements: Advantages and Disadvantages of advertising . Retrieved February 14, 2017, from india study channel: http://www.indiastudychannel.com/resources/139778-Advertisements-advantages-and-disadvantages-of-advertising.aspx

Gillette, B. (2009, March 1). Assessing the Competition. Retrieved February 14, 2017, from Innovation: America's Journal of Technology Commercialization: http://www.innovation-america.org/assessing-competition.

Lucius Lu., S. T. (2015, May 17). The Coca-Cola Company's Distribution Strategy. Retrieved February 14, 2017, from wordpress: https://mpk732.wordpress.com/2015/05/17/the-coca-cola-companys-distribution-strategy/