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Marketing Plan and SWOT

Squench is a flavored drink that gives the refreshing taste of watermelon and quenches one’s thirst. Squench is not your typical flavored drink for it is not only a thirst quencher but also at the same time an energy drink. It contains electrolytes which gives extra strength. Electrolytes are important because they are what your use to maintain voltages across their cell membranes and to carry electrical across themselves and to other cells. Kidneys work to keep the electrolyte concentrations in our blood constant despite changes in your body.

It also contains the vitamins and minerals found in watermelon which makes it also suitable for persons aging 40 up. For watermelon is a valuable source of vitamin C and lycopene , which can help prevent cancer. In fact, most melons are rich in potassium, a nutrient that may help control blood pressure, regulate heart beat, and possibly prevent strokes. Squench is really a healthy drinking water that everyone would love. Read why should festivals and fairs be banned

Strength

Squench can build on three important strengths:

1. Refreshing Product. Squench would provide the consumers ‘with the refreshing taste of watermelon. Aside from being flavored, Squench is a thirst quencher and at the same time an energy drink since it contains electrolytes which give energy.

2. Safe and healthy. Our product contains the vitamins and minerals found in a watermelon. Also the process and the ingredients used are 80%natural.

3. Pricing. Squench is affordable; its price is lower than any other flavored drinking water.

Weaknesses

As Squench enters the market of flavored drinking water, it had studied the successes and mistakes of its competitors.

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The 2 major weaknesses are:

1. Lack of brand awareness. Squench is just entering the industry and has not yet established its image and brand in the market. This weakness will be addressed by the use of extensive promotional activities.

2. Maintain the image. Though the product may establish an image in the market, it is essential for the company to maintain the promotional activities that it had started to deeply penetrate into the market.

Opportunities

Squench can take advantage of two market opportunities:

1. Increasing demand for Thirst quenchers. People today are indulge in outdoor activities especially the teenagers. With the introduction of Squench, consumers would consider its taste and its effect as an energy drink.

2. Low cost of watermelon. Since watermelon is a common fruit, it would cost lesser than any other fruit.

Threats

Squench faces two major threats:

1. Increased competition. More companies have entered the flavored drinking water market and some of these companies had already built an image .Also, small companies are entering this industry which gives the consumers various flavors to choose from. Therefore, Squench must develop the quality of its product to be at par with competitors.

2. Poor economy. The increase of inflation rate would create a discretionary on spending. This would decrease the demand of the products. To avoid this threat, Squench would make its price as flexible.

Marketing Objectives

* Increase product consciousness and popularity within the targeted market while consequently reducing marketing and advertising expenses.

* Maintain a constant enhancement of the product’s reputation in the market at the same time increase market share.

* Realize a higher return on initial capital as projected by sales after the first months of operations.

Critical Issues

The following are the critical issues for SQUENCH with their explanations:

* Current Barriers to Entry (Patronized Brands)

The present market holds a very rigorous competition among beverage companies. Since SQUENCH is just beginning to make its mark in this industry, it would be very hard to compete with established names for these companies have already been patronized by a lot of customers.

To aid this, SQUENCH is willing to make amends through allocating most of its initial capital in advertising and marketing strategies.

* Rates of Return

Because of the previously said reasons, SQUENCH may experience a very

low rate of return when it comes to contrasting sales with the initial capital. This is inevitable given that SQUENCH has to establish a name for itself yet. However, marketing strategies should be used so as to reverse these negative results after the first six months of operations.

* Steep Costs or Expenses

To compete in the market, SQUENCH has to advertize and promote the

product to boost sales in the long-term. However, its effort in advertising would at

least be double that of an already established brandname to be known by the

target market’s eye. However, despite all strategies employed the possibility of a low public acceptance is still unavoidable. Because of this possibility, it is very eminent that the firm could incur irreversible losses due to the accumulation of non-profit bearing expenses. That is why the firm has to steadily monitor sales and contrast it to the expenses incurred during the period.

Action Programs

I. LOCAL-Provinces in Visayas and Mindanao

(January to June 2008)

I. Advertising campaign

Details

Duration

Budget

a. Television

* A 30 second commercial

* A game show sponsored by the company

January to June

(6 months )

400 000

b. Radio

* A 30 second commercial

January to June

(6 months)

300 000

c. Newspapers

* A one-page section advertisement

January to June

(6 months)

250 000

d. Print Media

* Printed materials like posters, tarpaulins, streamers, etc.)

* To be put in various malls, department stores, schools/universities and also in public places like in plaza.

January to June

(6 months)

200 000

e. Sponsorship

* Sports events like university club fairs

* taking part in the provincial activities like in festivals for publicity

June to July

150 000

f. Caravans

* To be done in the central areas of the province

* Would last for 2-3 hours

* Done in a holiday or a special event being celebrated

One month

(depends on the government’s declaration of holidays)

200 000

II. Sales Promotions

a. Samples and free taste

* To be done in various

malls, stores, universities, public places, etc.

July

(One month)

50 000

b. Raffles

* Connected with that of the Radio and television commercials

One month

100 000

c. House to House operations

* Employ people to go house to house to offer the new product. Also to include incentives like selling product bundles and low prices but quality product.

Three months

50 000

d. Quantity discounts

* 10% discount in the total amount for a minimum purchase of 1000 large size bottle of squench, 5000 medium size bottle and 10000 small sizes.

Whole year operation

50 000

II. National- Provinces in Visayas and Mindanao as well as the regions in Luzon

(July to December 2008)

I. Advertising campaign

Details

Duration

Budget

a. Television

* A 1 minute commercial

* A reality show(amazing race) sponsored by the company participated by people from different places in the country

July to December

(6 months )

700 000

b. Radio

* A 1 minute commercial accompanied with the company’s theme song

July to December

(6 months )

700 000

c. Newspapers/ magazines

* A one-page section advertisement

July to December

(6 months )

250 000

d. Print Media

* Printed materials like posters, tarpaulins, streamers, etc.)

* To be put in various malls, department stores, schools/universities and also in public places like in

plaza.

* Billboards are to be built in the populated and central areas in Luzon.

July to December

(6 months )

200 000

e. Sponsorship

* Creating series of Sport s activities that would involve the young individuals.

* Taking part in the national sports activities like the Palarong Pambansa and PhilOlympics.

* should involve in charity works and asks for the help of famous people

One month

150 000

f. Caravans

* To be done in the central areas

* Would last for 2-3 hours

* Done in a holiday or a special event being celebrated

* Popular personalities are to be invited.

One month

200 000

II. Sales Promotions

a. Samples and free taste

* To be done in various

malls, stores, universities, public places, etc.

July

(One month)

50 000

b. Raffles

* Connected with that of the Radio and television commercials

October

(One month)

50 000

III. Web Development

* Establishing a website for the further information

* for the benefit of the customers

* The site would also serve as a tool for the company to do online transactions

December until the following years

100 000

In the first six months of operations (January to June), the company would focus on the LOCAL portals of the business by managing the product programs (advertising campaign, web development and sales promotion) and sales strategy in the different provinces of Visayas and Mindanao. With this, local advertising tools are to be used like in the newspapers, Negros Daily Bulletin and Visayan Daily star. The caravans in the local region that would last for a month would depend in the local government’s declaration of holidays.

For the next 6 months (July to December), the company’s scope would go national and thus it would require a lot of budget to perform the stated product marketing programs. Upon entering the national level, the company will be now using strategic tools that would be helpful to capture the attention of the national consumers. This would be possible by using national advertising tools. Like in television, having commercial with powerful stations like ABS-CBN and GMA would be helpful for the product to be known. To support this action, press conferences are needed. For the programs with no specific month, it is still to be filled up but the month will depend on the declaration of the government for example in sponsorship and caravans. Read why should festivals and fairs be banned

Budget

This section will offer a financial overview of SQUENCH as it related to the marketing activities. This will address Break-even analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy.

Sales Forecast

The following is the forecasted sales for (company name).

Sales 4 000 000

End Users 2 000 000

Distributors 5 000 000

Total Sales 11000 000

Expense Forecast

The expense forecast will be used as a tool to keep the organization on target.

Advertisements 4 000 000

Direct Labor 1 200 000

Factory Overhead 2 000 000

Raw Materials 2 300 000

Others 500 000

Total 10 000 000

Break-even analysis

The break-even analysis indicates that the company needs (amount) in a semi-annual revenue to match total expenses.

Break-even (Total Sales Forecast – Total Expenses) 5 000 000

Control System

The company’s way of making sure that everything is going as planned is first evaluating the effectiveness and efficiency of the management. Making sure that every important information is disseminated and implemented. In managing a company, monitoring system is also essential. In this way we can see that everybody is doing their part. Not only do we monitor the management but the production as well. We must see to it that the quantity and quality is maintained for consumer satisfaction and of course to live up to the company’s name/image. Lastly, Feed backing system is also important because through feedbacks from customers, we can improve the quality of our products and all that needs improvements including the management.

DISTRIBUTION REVIEW

WHOLESALERS

RETAILERS

Advantages

* sales on bigger bulks give more profit on shorter time

* more products are sold to the market

* lesser damage and delivery liability

* needs lesser quantity control

disadvantages

* bigger liabilities when goods get lost or damaged on transit

* needs constant quantity control

* lesser products are sold to the market

* profit takes a lot more time to be boosted because of smaller bulks

Cite this page

Marketing Plan and SWOT. (2020, Jun 02). Retrieved from http://studymoose.com/marketing-plan-new-essay

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