Strategic marketing assignment Essay
Strategic marketing assignment
This marketing plan is mainly developed in relation to a new product Buzz Money Energy Drink in Indian markets. Buzz Monkey is mainly a type of energy drink that is produced by an Australian company such as Buzz Monkey Energy and the core feature of this product is that it is mainly a type of energy drink. The product is manufactured through a new unique idea that involves the application of wild plum in producing such energy drink. The main aim of this marketing plan is to launch this product in Indian markets by targeting two important market segments (Anderson & Vincze, 2006).
As a result, this marketing plan is focused towards different important aspects related to the marketing of Buzz Monkey Energy Drink in Indian markets. The important areas of analysis that will be covered as a part of analysis in this marketing plan include an evaluation of the current marketing situation, opportunity and threat analysis for the product in Indian markets through applying SWOT analysis, setting up of marketing objectives, marketing strategy for the product in the form of applying 4Ps analysis, and an analysis of integrated marketing communication strategy will be performed for the purpose of achieving effectiveness with respect to the given new product.
Current Marketing Situation
As the product chosen for marketing is Buzz Monkey Energy Drink, this section of analysis is focused towards performing a critical analysis of the current market situation for the product. This includes an analysis of the background data on the market, product, competition and distribution. The analysis of these important aspects is performed as follows: Product Background: Buzz Monkey energy drink as the name suggests is a type of energy drink that promises higher level of energy to its consumers. It is an energy drink offered by Buzz Monkey Energy in the market of Australia and the product is aimed at marketed across the Indian markets. It is a highly innovative product as promised by the company and the main part of innovativeness within it is that it includes special wild native plum in its manufacturing process.
The important ingredients that are included in producing this energy drink include leaf and fruit, and they are aimed at generating energy within its consumers. The logo of the brand indicates a green monkey placed on each and every can and it is regarded as the brand ambassador of the company (Hoffman & Bateson, 2010). Background Data on Market: With respect to the background data for the market for energy drink is concerned, energy drink products are taken in a positive manner across societies and their relevance in respect to Indian markets is significantly higher. This is mainly because the Indian market comprises of alcoholic and other soft drinks which leaves little scope to young and old age health oriented people. Although there are companies that have started offering real fruit juices and claims those to be healthy, yet there are not too many companies focused towards healthy aspects of the consumers.
As a result, the Indian market is considered as highly effective from the point of view of marketing Buzz Monkey Energy Drink because it claims to offer energy to its consumers. The Indian markets have higher potential for growth for this product mainly because of higher level of consciousness within Indian people with regard to healthy products. The demographic profile is also supporting across Indian markets because the percentage of young and old age group people is significantly higher, and this is likely to positively benefit the organisation. As such, the two different market segments that have been considered in marketing Buzz Monkey Energy Drink is young age people in the age group of 8 to 18 years, and old age group people in the age group of 50-65 years (Lamb, Hair & McDaniel, 2008).
In terms of competition is concerned, Buzz Monkey Energy Drink is likely to face significant level of competition from operating across Indian markets. The Indian market is highly competitive because of large number of global players including local players that have dominated the drink market. As for instance, Coca Cola and Pepsi already have their market in India, and there are specific energy drinks that are available in Indian markets. This includes Red Bull, Real fruit juices and many more, and they are likely to pose significant threat to Buzz Monkey Energy Drink (Hart & Johnson, 2007).
In terms of distribution strategy is concerned, the Buzz Monkey Energy Drink would initially be started across few metropolitan cities in India such as Mumbai, Bangalore, Kolkatta and Delhi. The company will set up its plant across these markets, and the products would be distributed through supermarkets and departmental stores, through small retail shops and there will be a few company owned distribution shops that would be considered as point of sale for this energy drink.
Opportunity and Threat Analysis through SWOT
This section of analysis is now focused towards performing an opportunity and threat analysis through the application of SWOT analysis. This has been an important strategic analytical tool that allows for analysing the internal and external environmental facing a product and in respect to Buzz Monkey Energy Drink, such analysis is performed as follows: Strengths: In terms of strength of Buzz Monkey Energy Drink, the core strength point is mainly the energy factor associated with it, and at the same time, it intends to offer high quality taste of wild plum. These features of Buzz Monkey Energy Drink allow for health benefits to the consumers (Andreassen and Olsen, 2008).
Weakness: In terms of weakness of Buzz Monkey Energy Drink is concerned, the major weakness is mainly in terms of lower overall recognition of this brand across international markets. Secondly, the brand is completely new in Indian markets and there are range of initiatives required in the form of huge marketing and promotion of such energy drink. However, the main concern is mainly with respect to the acceptability of such products across Indian consumers (Homburg, Hoyer & Fassnacht, 2002). Opportunities: With respect to the opportunities are concerned, the main opportunity as available to Buzz Monkey Energy Drink from serving in Indian markets is mainly from the absence of a major energy drink provider across the country. The major giants such as Coca Cola and Pepsi Co accounts for providing soft drinks that are not health conscious. Although few such energy drinks are available, yet Buzz Monkey Energy Drink has a significant level of potential within such markets.
Apart from this, the growing population with demographics of younger age and older age people also provides significant level of opportunities for growth to Buzz Monkey energy drink. These are some of the opportunities available to the product in Indian markets. Threats: In addition to opportunities, there are threats that also have to be faced to Buzz Monkey energy drink from entering into Indian markets. The major threat is mainly in creating reputation in the Indian industry amidst strong products such as Red Bull, Real fruit juices etc. Further, for a new product to create market, it is a highly challenging and difficult task (Pride & Ferrell, 2010). These are the opportunities and threats that are to be faced by Buzz Monkey Energy Drink from expanding into Indian markets.
As this is a marketing plan in marketing Buzz Monkey Energy Drink across Indian markets, there are certain major marketing objectives that are considered essential. These marketing objectives in relation to sales volume, market share and profit are indicated as follows: To achieve the sales volume of an approximate of $ 1 000 000 in the first year of its operations and thereafter seeking a growth of more than 50% in next 2-3 years. To look for achieving a market share of 1% in the first year of operation and this should increase to 5-10% in the next 3 years of operations. To attain the market share at the bottom in the first year and thereafter to 3rd to 5th position in the five years of its operations (Deshpande, Farely & Webster, 2007). These are the marketing objectives that are aimed at accomplishment by marketing Buzz Monkey Energy Drink in the market of India.
Marketing Strategy Considering 4P
This section of marketing strategy is concerned with analysing the marketing mix analysis for Buzz Monkey Energy Drink so that appropriate marketing strategy can be devised. In appropriately devising marketing mix strategy, it is essential to consider four Ps which include product, price, place and promotion and these aspects are analysed in relation to the given Buzz Money Energy Drink as follows: Product Strategy: The strategy in relation to product is highly essential and in relation to the given product on Buzz Monkey Energy Drink, the product strategy is crucial. As for instance, the product strategy in relation to the given Buzz Monkey Energy Drink is mainly to offer healthy drink to customers that provide great taste of wild plum.
The product is mainly known as a innovative product and the main strategy is therefore to provide something new to the customers (Sengupta, 2005). As a result, the focus has been towards providing great taste along with the flavour of healthy aspect. This strategy in relation to product is identified as highly effective in the sense that it offers two important advantages to its consumers such as a healthy aspect and the great taste factor. This core strategy is likely to ensure higher level of success to the firm in terms of satisfying large number of customers in a positive manner (Davidow adn Uttal, 2005).
Pricing Strategy: This is another important strategy that is required to be considered in ensuring the efficient marketing of products and services. The
decision in relation to pricing of the product and services is crucial and in respect to the given Buzz Monkey Energy Drink, the pricing strategy is mainly focused towards keeping the prices at reasonable rates initially and this would be increased further when the products get popular within customers. As a result, the pricing strategy to price Buzz Monkey Energy Drink is lower which is considered appropriate at $2.5 per can initially and this will be increased to $3 depending on its initial performance across India (Hooley & Graham, 2008).
Place Strategy: The place strategy is also crucial and it mainly suggests about the locations whereby the products and services of the company are being offered to the customers. The strategy in relation to place is also important because it determines the effectiveness in achieving success with respect to the products and services offerings. In respect to the given product on Buzz Monkey Energy Drink, the place strategy is mainly to offer the product across four major metropolitan cities such as Mumbai, Kokatta, Bangalore and Delhi. The initial success of the energy drink across these markets would result into their further expansion into other major cities across Indian markets. This place strategy is likely to ensure higher level of success to the firm (Pride and Ferrell, 2010).
Promotion Strategy: This is the final major strategy in respect to the marketing mix and it is concerned with promoting the products and services as offered by an organisation. The promotion of products and services can be performed by businesses by way of considering different tools and techniques, and in respect to the given case of promoting Buzz Monkey Energy Drink, the promotional strategy that would be highly effective is to consider large number of tools. As for instance, there should be campaigns that should be run across different parts of the four major cities that have been considered initially in marketing the products and services. Apart from this, there should be celebrity endorsement strategy that should be considered in order to create faster level of impact on target audience. Apart from this, promotion via newspaper ads, magazines, TV advertising and promotion through banners and hoardings is crucial. This particular promotional strategy is likely to ensure success to the firm in creating an impact over the target customers in India (Davidow & Uttal, 2005).
Integrated Marketing Communication
An appropriate strategy in relation to integrated marketing communication is essential in targeting customers within its target audience. The strategy in relation to integrated marketing communication requires the consideration of three important aspects to marketing communication such as segmentation, targeting and positioning. These strategies in relation to Buzz Monkey Energy Drink are discussed as follows: Segmentation: Segmentation is concerned with dividing the entire market into smaller segments so that they can be appropriately targeted and better overall growth in the business can be accomplished. In respect to the Buzz Monkey Energy Drink, the market segment that has been considered is mainly the younger and old age group people. These two segments are considered appropriate because the need for energy and healthy drink is significantly higher within these categories of people.
As a result, the segment in targeting Buzz Monkey Energy Drink is mainly the young age group people and old age group people (Grönroos, 2010). Targeting: An appropriate targeting strategy is also essential and they would be targeted by offering coupons and discounts to them so that they can be encouraged to buy the product. The healthy aspect would be highly focused in particular since because this has been the core feature that is promised to offer by the Buzz Monkey Energy Drink (Berry, 2008). Positioning: Positioning is concerned with winning the minds of people and as such, this product of Buzz Monkey Energy Drink would be positioned as a healthy product that makes people feel energetic and vibrant. Apart from this, the health aspect would also be promoted in relation to Buzz Monkey Energy Drink so that the customers can be encouraged to purchase the offerings as made to them (Heskett, Sasser & Schlesinger,1997). This integrated marketing communication strategy is essential and important for the purpose of achieving efficiency with respect to Buzz Monkey Energy Drink.
This marketing plan is mainly concerned with marketing of Buzz Monkey Energy Drink with a view to market it efficiently in the market of India. There are various important aspects related to it that have been discussed. The analysis indicated about the current marketing situation which revealed that the product is mainly an energy drink and also tasty product at the same time. The competition level is significant tough across the healthy drink players in India. The analysis of opportunities and threats to Buzz Monkey Energy Drink revealed significant level of findings with regard to the existence of opportunities and threats within such market, and the marketing objectives as set for the product implies that the company looks for achieving higher level of growth in its operations in the next three to four years.
The marketing strategy with respect to the 4Ps have been devised which indicates that the product is mainly aimed at providing healthy feature to its customers, whereas the pricing level initially as charged to customers would be lower prices which would be followed with increasing prices for the product. The place strategy is mainly to offer product across few major cities initially whereas the promotion would be done through different important strategies. The segmentation as done implies that two major market segments that would be targeted are younger age people and older age people. The positioning strategy indicates that the product would be positioned as healthy and tasty drink.
Andreassen, TW. & Olsen, LL., ,(2008), The impact of customers’ perception of varying degrees of customer service on commitment and perceived relative attractiveness, Managing Service Quality, vol. 18, no. 4 Anderson & Vincze, (2006). Strategic Marketing (2Nd Ed.), Dreamtech Press. Berry, LL., (2008), Guiding and inspiring performance through a service strategy, Customer Service Management Magazine, no. 12 Davidow, WH. & Uttal, B., (2005), Total Customer Service: The Ultimate Weapon, Harper and Row Publishers, New York. Deshpande, R., Farely, JU. & Webster J., (2007), Corporate culture, customer orientation, and innovativeness in Japanese firms: A quadrad analysis, Journal of Marketing, vol. 57 Grönroos, C., (2010), Service Management and Marketing: A Customer Relationship Management Approach, John Wiley & Sons, Manchester. Hart, CW. & Johnson, MD. (2007), Growing the trust relationship, Marketing Management, Spring, pp. 9–19. Heskett, JL., Sasser, WE., & Schlesinger, LA., (1997), The Service Profit Chain, The Free Press, New York. Homburg, C., Hoyer, WD., & Fassnacht, M., (2002), Service orientation of a retailer’s business strategy: Dimensions, antecedents, and performance outcomes, Journal of Marketing, vol. 66 Hoffman, K. D. &
Bateson, J. E.G. (2010). Services Marketing: Concepts, Strategies, & Cases. 4th ed. Cengage Learning. Hooley & Graham, H. (2008). Marketing Strategy and Competitive Positioning. Pearson Education. Lamb,C. W., Hair, J. F. & McDaniel, C. (2008). Essentials of Marketing. 6th ed. Cengage Learning. Pride, W.M. & Ferrell, O.C. (2010). Foundations of Marketing, 4th ed., engage Learning. Sengupta, S. (2005). Brand positioning: strategies for competitive advantage. 2nd ed. McGraw-Hill Education.