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Assignment 2: Marketing Plan

Marquise Daniels

Dr. Vernotto McMillan

Bus599 Strategic Management

August 14th, 2017

Marketing Plan & Sales Strategy

The beverage industry is very wide with few players and with minority large-muscled players i.e. The Coca Cola Company and Pepsi Company. The other players could be considered as minor players in the market. The industry can be categorised into two where we have alcoholic beverage manufacturers and the non-alcoholic beverage manufacturers. Classic Drinks limited is registered under the non-alcoholic beverage manufacturers sector. It therefore has to compete with the two major market players stated above. Historically, these two companies have been able to control the market for years now. For smaller companies like Classic Drinks limited, entering such a market would be a drop in the ocean. But all is not lost because economically, markets are flexible. Consumer satisfaction depends with time and trending conditions in the various aspects of life such as technological innovations, health changes, social interactions etc. (Bierman, H., 2011). These aspects could have an effect on a person’s consumption trend. So approach made in entering this market is what matters for Classic Drinks limited. We have to develop a unique, effective and efficient market plan and sales strategies that would cater for the gaps in this market and be able to create, develop and grow new markets niches within this existing market. The Company will be banking on what these existing companies have not done for our success.

People use non-alcoholic beverages for different purposes such as to quench thirst, for flavour etc. However, flavoured drinks do not majorly quench thirst. What if we could have a flavoured drink that is used for flavour purposes and for quenching thirst? That’s the market gap that Classic Drinks limited will majorly apply. The company will be sourcing for supplies from manufacturers which they will use to make naturally flavoured waters. The naturally flavoured waters will be used by for quenching thirst and for flavour. This aspect will be like killing two birds with one stone. When a customer does not need to fully consume a flavoured drink and at the same time, he or she does not want to consume water which is completely unflavoured, he or she will opt to consume our naturally flavoured water. This is one of our target markets. Will also be producing the other flavoured drinks, water and teas which will fight for the market share with the other companies.

Classic Drinks limited is also targeting to embrace the mobile product provision or the deliver on bulk order sales strategy. Through this, the company will be targeting markets such as in house parties, weddings, ceremonies and parties, sporting events and institutional events. Most of these deliveries will be made on order i.e. by both triggered orders whereby our sales personnel will be on the lookout for such events before they take place- through the event organisers- and request for deliveries and mobile services. Secondly, will also be expecting customers to make direct orders or request to be availed with such services. We want to bring the product to the consumer’s door step and save the consumers the hard hustle of travelling to distribution points, shops or supermarkets to purchase these products. The company will also have its own distribution networks through depots, market suppliers, supermarkets and shops. We expect the distribution network to have a minimal intermediary section i.e. middlemen, to reduce the inefficiencies that could occur due to this aspect e.g. limit of contact between the company and its customers and influences on prices and distribution of the products (Ferrell, O. C., 2016).

Classic Drinks limited is registered in Washington D.C. and is expected to serve the market within the state of Washington Dc area and its environs (Hewings, 2017). The target market/ customer segments within this location will include the following: the general consumers who take soft drinks, wedding parties, sports events, institutional events, ceremonies and in house parties. The company will majorly serve the internal market and is not expected to serve at the international level currently. Within the location above, the company is expected to have its market positions majorly dictated by the customer segments. Since its mobile product provision will be delivering the products to the customers’ residence or location, this segment’s market position will be determined by where the customer is situated. The other market positions will be the distribution depots, shops, supermarkets and market suppliers stationed within Washington D.C. and its environs.

The target market is approximated to be made up of 681,170 plus people living within Washington D.C. and its environs (2016 Population Estimates). It’s evenly distributed in terms of sex where 47.2% of the population are male and 52.8% are female. The age distribution of the target market is also as stated below,

(https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF)

The median and the mean 2015 income estimates for the target market in Washington D.C. and its environs were as follows:

(https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF)

These composition aspects of the market therefore, shows a better opportunity to make goods sales on the company’s products. The age of majority i.e. 16 years and over caters for the largest population category and this are the consumers who are majorly targeted. The income levels also indicate that the population is better placed to afford our products.

The marketing mix that will be applied by Classic Drinks limited will encompass the product, pricing aspect, the promotional aspect, the place or the distribution aspect (Kotler, P., 2000). The products that are produced and sold by the company are beverage products which are non-alcoholic e.g. flavoured drinks, water, naturally flavoured waters and teas. Supplies for the products are majorly sourced from major manufacturers and other suppliers within the country. The pricing of the product will be based on quantities in which they are packaged. The smallest quantity will be the 300ml bottled water, naturally flavoured water and flavoured drinks that will go for $3.85 per bottle; 500ml of the same will go for $5.85 per bottle while the 1 litre and two litres quantities will go for $9.00 and $16.50 respectively. The canned naturally flavoured water and flavoured drinks will go for $4.00 per can while teas will be packed in 400ml cylindrical tins which will be sold for $ $5.00 per tin. The pricing would however will be flexible to the changing market conditions and competitor pricing options.

The promotional strategy that will be undertaken by Classic Drinks limited will include the following, advertising where the company will reach its target market through radio and TV adverts, print media adverts e.g. newspapers, magazines, fliers, use of billboards and branding. Personal selling through the sales personnel will also be used. It will involve direct contact promotion of the company’s products to the consumers through sales visits, phone calls, SMS, sales mails, brochures etc. Sales promotional techniques will be applied in boosting the company’s sales e.g. by offering cash discounts and sales discounts to the target markets. Online marketing will be applied by the company through the company’s website and the social media platforms. The last promotional strategy that the company will apply is the involvement of Corporate Social Responsibility activities such as sponsorship programs to create goodwill with its target market. The distribution channels of the company will include distribution depots, shops, supermarkets and market suppliers stationed within Washington D.C. and its environs.

The marketing budget will be made up of the estimated expenses that will be incurred in setting a base in the market i.e. through earning a market share and making targeted sales. The budget will be based on the current installations in the market and first years expected marketing expenses. This marketing cost will then be transferred to the income statements of their respective financial years.

References

Bierman, H. (2011). Improving the competitiveness of the industry. Singapore: World Scientific.

Ferrell, O. C. (2016). Marketing strategy. S.l.: Cengage Learning

Hewings, G. D. (2017). Regional Industrial Analysis and Development. Routledge

Kotler, P. (2000). Marketing Management. (Millennium Edition), Custom Edition for University of Pheonix, Prentice Hall

Sources

2016 Population Estimates

https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF

https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF

U.S. Census Bureau, 2011-2015 American Community Survey 5-Year Estimates