Marketing Plan

Marketing Plan

BUS599: Strategic Management

A target market is a unique group of individuals that an enterprise has determined to be part of its customer base. Usually, these projections are based on demographic considerations and market analysis done with various sample groups. While it is relatively easy to develop general advertising for the masses, devoting resources and time to identify more targeted markets will help the business maximize its marketing return on investment. To build a solid foundation for the business, we must first identify our typical customer and tailor our marketing pitch accordingly.

The company’s 25-mile radius will cover areas between zip codes 20147 (Ashburn) and 22043 (Idylwood). These regions are located in Loudoun and Fairfax Counties respectively, both of which are in the state of Virginia. Data from the US Census Bureau indicates that the radius of the area between the two regions has a total population of 78388 people, with a median household income of 13043 (2016). Besides, the average figure of the population with full-time earnings is 55%, those earning part time at 23%, while those with no earnings being 21% (US Census Bureau, 2016). In addition, 69.8% of the population is composed of people of Caucasian origin, 11 % Hispanic, 7.9% Black Americans, and the remaining being of Asian descent (US Census Bureau, 2016). Impressively, this area has an owner-occupied housing unit rate of 76.9%. Since the company will sell via other businesses such as grocery stores, it was important to find out their numbers in the region. Below are the demographics information for the company.

CONSUMER BUSINESS
Age Range: 24–50 years Industries:The non-alcoholic beverages
Income Range: $100,000 to $130,000 annually Sector: Secondary Sector
Gender: Both Male and Female Years in Business: None
Occupation: All occupations Company Revenues: None
Marital Status: All Number of Employees: 50
Family Size: An average of 3 Number of Branches:1
Ethnicity Group: Caucasian, African American, Hispanic Square Footage: 225 square feet
Level of Education: College Company Ownership: Sole proprietorship
Home Ownership:All Other: Source of Funding: Loan and personal savings
Other:Employment Status: Employed or self-employed  

The non-alcoholic beverage market is an extremely competitive industry dominated by the Coca-Cola Company and PepsiCo, Inc. Together, these organizations possess almost 70% of the United States soft drinks market. Many international markets are also controlled by Coca-Cola and PepsiCo. However, other firms including Group Danone, Cadbury Schweppes, Nestle SA, and Suntory Holdings Limited also have a significant market share. Coke has been the market leader in this industry for many years. Currently, coke commands 48.6% of the market (Statista, 2016). It is closely followed with Pepsi at 20.5% (Statista, 2016). Cadbury Schweppes comes third in the ranking with 14.7% of the market, while the rest is shared among the remaining groups. The company will compete with these beverage businesses, not only for buyer acceptance, but also for shelf space inside retail outlets and marketing focus by the distributors.

Certainly, due to the nature of competition and dominance by Coke and Pepsi, the company will seek to pursue a niche to differentiate its products. Over the past few years, the demand for non-alcoholic drinks has substantially declined, especially among the younger population, due to the growing health awareness. As a result, non-alcoholic drinks are expected to have a stable growth throughout the near future. Besides, increasing awareness regarding obesity is also one of the principal factors restraining the demand for non-alcoholic drinks. As such, the company will capitalize on this and manufacture only healthy soft drinks.

Currently, Coca-Cola and Pepsi have also ventured into this segment with their Coke Zero and Diet Pepsi brands respectively. However, they are yet to capture this market as they have failed to appeal to the consumers. Many buyers complain of bad taste, while others claim that these products are still not healthy for the customers. Nonetheless, in future, the ingredients for these commodities might be changed, thus offer stiff competition to the company.

Besides, new entrants to this industry are faced with several threats. First, the capital requirements within this market are extremely high. Production and distribution channels are broad and necessary to compete with the market leaders. Furthermore, brands do have secret formulas that make them unique, thus making entry into the market segment difficult. Besides, the mature companies have a brand identity. Thus, it takes a long time to create a brand that is recognized and has customer loyalty. A well-recognized brand will foster consumer loyalty and generate the opportunity for real market share growth and price flexibility.

While the energy drinks sector constitutes a small share of the overall non-alcoholic beverage market, the sector has risen by 60% between from 2012-2015, and had total U.S. sales of more than $17.5 billion in 2015 (Packaged Facts, 2013). Analysis indicates health-and-wellness beverage commodities are witnessing increased consumer penetration. On the contrary, classic drinks, notably colas, are seeing consumer attrition. According to the “Energy Drinks and Shots: Market Trends in the U.S.” report, sales of energy drinks will rise to a value of $21.5 billion by 2017, driven by expansion in retail distribution, continued economic recovery, and strong potential in new product development (Packaged Facts, 2013).

The product will meet the client’s needs by presenting them with a refreshment drink to quench their thirst. Although the customers will spend some money to purchase the product, by consuming healthy products, they will ultimately save the medical costs they would have incurred if they got sick from consuming unhealthy drinks. Besides, the healthy products will make them more productive, thus become more financially stable. In addition, the clients will gain physiological freedom from knowing that they are consuming healthy drinks. Furthermore, consuming the healthy brands will make the clients proud of themselves and boost their self-image. Due to the growing number of health-conscious people, the product will continue gaining a bigger market share with time. Besides, after enjoying the health benefits of the products, customers will keep buying the drinks for many years.

The business name, Fresh Lemonade, will give the customers an idea of what the company sells. The slogan, “Stay refreshed, live longer” will send a message to the customers implying that the business sells refreshing and healthy drinks. Moreover, this message will also be stressed using keywords such as nutritious and revitalizing. The logo of the company will comprise of a lemon to symbolize healthy living and water drops that will create a refreshing effect. The logo and the website theme will be green, a color that used to represent nature and good health. Twitter and Facebook will be the chosen social media sites. Usually, these platforms are used by educated young populations, who are the target market for the product.

According to the Pew Internet and American Life Project, at the end of 2015, 79 percent of Americans used the Internet on a frequent basis (Perrin & Duggan, 2015). Among these internet users, 78 percent report seeking for information online regarding a product or service that they were considering to purchase. In addition, 66 percent stated that had bought a product online (Perrin & Duggan, 2015). As such, one primary objective of the company website will be to advertise its products and brand building. Secondly, through the website’s e-commerce portal, the business will be in a position to sell the drinks online. In addition, the site will seek to give more information about the firm’s products and services, provide customer support and service, and improve customer relations. To get a high-ranking placement in the search results page, the firm will hire an in-house search engine optimization expert. This is because, SEO is not a one-time affair. Rather, it is a continuous process that ensures a website always stays on top.

To keep customers in touch with the company’s developments and to build good relationships with them, periodic e-newsletters will be sent. After a client creates an account on the website, signs up for newsletters through the site, or leaves their email after filing the company’s forms, their details will be added to the email marketing database. However, this emails will only be sent when there is an urgent information that needs to be dispatched or during festive seasons such end of the year to wish customers happy holidays.

In addition, a special team will be designated to write blogs mostly concerning the benefits of consuming healthy products. Besides, this is also a great way to drive traffic to thewebsite and boost the website’s visibility on search engines. Customers will be given platforms to participate and give their opinion using the blog spot.

References

Packaged Facts. (2013). Energy drinks and shots: U.S. market trends. Retrieved from http://www.packagedfacts.com/Energy-Drinks-Shots-7124908/

Perrin, A., &Duggan, M. (2015). Americans’ internet access: 2000-2015. Pew Research Center. Retrieved from http://www.pewinternet.org/2015/06/26/americans-internet-access-2000-2015/

Statista. (2016). Market share of carbonated beverages worldwide as of 2015, by company. Retrieved from https://www.statista.com/statistics/387318/market-share-of-leading-carbonated-beverage-companies-worldwide/

US Census Bureau. (2016). Loudoun and Fairfax counties, Virginia. Retrieved from https://www.census.gov/quickfacts/table/PST045215/51059

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