Part A: Your Marketing Plan
Executive summary
Business operations are dependent on effective planning. Admittedly, the most fundamental facet is marketing plan. As such, a marketing plan generates an overview of the approach that an organization will inculcate in ensuring brand growth, awareness and sales within the market of operation. Marketing plan necessitates an effective blue print that an organization incorporates towards sustaining profitability, shareholder returns and necessitating returns on the investments made. Accordingly, from the evaluation of AHA beverage company, a marketing plan forms a plausible tool towards the launching its AHA vitamin water. Thus, through the inculcation of the marketing plan, the organization will manage to incorporate a plausible approach towards capturing an extensive market and ensuring profitable outcomes. Thus, this paper will undertake a marketing plan for AHA Beverage Company as per the case questions.
- Conduct an environmental analysis that includes competitive, economic, political, legal, technological, and socio-cultural forces.
The external environment of business is faced by various forces that are not within the control of the organization. As such, the various forces are also regarded as the macro environmental forces which the organization cannot control or monitor effectively. As forces that impact on the organizational operations, it is imperative that AHA Beverage Company comprehends the diverse, competitive, economic, political, legal, technological and socio-cultural forces. Through an effective evaluation of the forces, the organization can incorporate the most plausible tactics towards handling the prevailing forces. Thus, an analysis of the aforesaid forces is as follows:
AHA Beverage Company operates within a highly cutthroat market in which various competitors prevail. Within the market, majority of the critics assert that a duopoly market structure. A duopoly market structure, in reference to Peter (2012) has two main organizations with a leadership stake in market share. Pepsi co and coca cola command a vast market dominance that AHA Beverage Company has to grapple with extensively. As the two main competitors, their market share is over 70% that possess a profound and daunting competitive environment. Hence, for the organization to sustain effective performance, AHA Beverage Company has to invest highly into extensive marketing to sustain relevance and a profitable market share within the industry. Additionally, the beverage industry is not price centered in regards to performance. As a non-price based competitive environment, AHA Beverage Company should invest highly into other approaches such as extensive branding, marketing, advertising and so forth to ensure relevancy in operations (Kotler & Armstrong).
Economic forces
The US economy has been on a gradual yet plausible rise in regards to consumer spending. Additionally, the prospect of reduced unemployment rates, as per Peter (2012) has played an imperative role towards the increasing consumer spending. The steady increase in consumer spending signifies that AHA Beverage Company can accrue high sales from its prospective customers. Thus, AHA Beverage Company should capitalize intensively on the positive economic environment in US.
Political forces
AHA Beverage Company operates within a highly politically stable political environment. Through continued political interactions between US and the EU, AHA Beverage Company can venture into the emergent markets. Furthermore, the profound political ties between US and china have posed an avenue for AHA Beverage Company to invest highly into proper ties construed towards sustaining effective performance.
Legal forces
Patent infringement coupled with trademark protection has become an imperative issue in the beverage industry. Thus, as a mandate of the imperative evaluation, AHA Beverage Company should invest highly into protecting its new product through the various legal laws within US that safeguard individual ideas and products.
Technological forces
Infrastructural growth, most fundamentally the internet has greatly revolutionized the operational facets of businesses. Majority of businesses have begun investing heavily into online business to capture the highly social media craze consumer market (Kotler & Armstrong). Through online business, individuals can access AHA beverage company website and obtain real time information on the various goods and services within the organization.
Social-cultural forces
Social-cultural forces denote the various facets of tastes, preferences, values and so forth that influence the consumer behavior. As such, from the evaluation of Peter (2012) the prospect of health conscious population within US has become a social-cultural facet of the evaluation. Admittedly, the notion of obesity has led to a majority of consumers maintaining a health conscious approach in their consumption trend. Thus, AHA Beverage Company, through its flagship vitamin water, should capitalize on the changes in tastes and preferences in US.
- Specify the primary and secondary target markets for your company. Be sure to cover the 4Ps, 5Cs and STP.
AHA beverage company’s main customers are the health conscious niche within the US market. As the primary market, the organization plans to invest highly into extensive labeling. Through labeling, the organization will brand the product as highly health conscious thus wooing its target market. Moreover, the organization also plans to target the youth segment. Through branding the product as hip and trendy, the organization will invest highly into branding and online marketing to sustain market yield.
4PS
Product
The main product is AHA vitamin water. The vitamin water is produced through patented ingredients that are focusing on nutritional coupled with health benefits to the prospective customers. As such, the product is within three main bottle content, 300ml, 500ml and 1 liter.
Price
Competitive pricing is the mandate of operation in regards to the product. The vitamin water will be priced at a plausible level to meet the various mass markets. Through competitive pricing, mass consumption thus profitability will prevail.
Place
Intensive distribution strategy will be a tactical approach within the operational function. As such, the intensive distribution approach will be directed towards ensuring majority of the top stores have the product.
Promotion
Above the line, promotion approach is highly plausible. Above the line, promotion will encompass online marketing, advertising, television and radio advertising. The inculcation of above the line promotion will ensure widespread market reach of the product.
5Cs
5Cs denote the macro and micro environmental facets that play a significant role within the organization. Thus, from the evaluation of AHA Beverage Company, the 5Cs include (MacDonald & Hugh 2013);
Company
AHA Beverage Company operates within the fruits and drinks industry. As a novel organization, AHA Beverage Company plans to sustain market reach and awareness through health oriented products that are innovative and unrivaled. Hence, with its main goal being sustaining profitability through health conscious products, the organization will invest on unique policies to ensure performance.
Collaborators
The main collaborators for AHA Beverage Company entail the two main stakeholders, suppliers and distributors. Incorporating a formidable relationship with the suppliers, the organization can obtain cost effective supply of the various raw materials. Cheaper raw materials will denote higher profit margins.
Customers
The US market is highly vibrant. With over 200 million prospective customers, AHA Beverage Company should acknowledge the various economic and social-cultural aspects that influence consumption choice. Comprehension of the two facets will necessitate effective policy formation.
Competitors
The main competitors are coca cola’s Gatorade water coupled with Pepsi’s vitamin water. Thus, the organization should examine extensively the two market leaders. The two market leaders as aforesaid command a high market slice that the organization should incorporate diverse ways to mitigate the market share.
Climate
The climatic facets entail the macro environmental aspects that impact on AHA Beverage Company. As such, from the evaluation of the company, the aforementioned competitive, technological, economic, political, legal and social-cultural aspects require in-depth evaluation by the organization.
STP
Segmentation
Behavioral segmentation is the tactical approach of operation. As such, the behavioral segmentation approach emphasizes on the prevailing tastes and preferences of consumers. Through market research, the organization will manage to target the health-conscious segment. Additionally, a demographic segmentation tactic will focus on the regions in which the youth population is highly. The organization will distribute effective its products whereby the youth populous is dense.
Targeting
Differentiated targeting approach is the mandate of operation. The differentiated targeting approach will focus on the youth and health conscious market segment (MacDonald & Hugh 2013). Through the differentiated strategy, the organization will generate a marketing strategy that focuses on the two segments.
Positioning
The organization plans to position its products as ‘quality and affordable’ (MacDonald & Hugh 2013). Through the two positioning approaches, the organization will manage to capture the mass market. A mass market capture is effective for increased revenue yield.
- Conduct a performance analysis with set benchmarks of 50% to 75% per annualized plan. Your analysis should include at least four (4) of the following metrics: tracking downloads of Website content, Website visitors, increases in market share, customer value, new product adoption rates, retention, rate of growth compared to competition and the market, margin, and customer engagement. Develop four (4) quantitative and (4) qualitative marketing objectives from your chosen metrics.
Increases in market share
The organization focuses on increasing its market share within a 3% monthly incremental rate. As a market dominated by Pepsi and coca cola, it recognizes the daunting environment. Thus, within a year the organization should have accomplished a 36% stake within the vitamin water sector.
Customer value
The customer value should increase within a weekly mandate. The 10% rate is plausible for the organization.
Retention
The retention rates should be within a 60% mandate. As such, 6 in 10 customers should make a re-purchase from annual sales evaluation
Rate of growth
The organization plans to maintain a 40% annual growth. Annual growth should be construed towards sustaining a plausible and profitability mandate.
Qualitative marketing objectives
- Acquisition of novel customer segments within the vitamin water segment before its competitors capitalize on the niche
- Convert and gain novel customers
- Retain customers through a customer’s appreciation program
- Enhance loyalty coupled with increase awareness through increased marketing
Quantitative marketing objectives
- Sustain 50% sales within the first week of product launch
- Ensure a more than 40% profit gain from the sales made
- Meet a 40% sales standard in regards to the youth segment
- Generate a 60% resale of products to the prospective customers
- Conduct both a SWOT analysis and needs analysis for your product. Each analysis should examine four (4) strengths, weaknesses, opportunities, and threats for your company.
Need analysis
Needs of target market: health conscious market is emergent that needs low calorie and beneficial products
Potential partners and obstacles: the main partners are suppliers and distributors whereas main obstacles are financial hurdles coupled with the various competitors.
Competencies: the main competency within the organization is innovation. The organization operates on the increased investment into research and development to meet the target clients
SWOT analysis of the product
Strengths
- The organization has a patented ingredient in its vitamin water that is unrivaled and unique within the beverage industry
- AHA beverage company has highly skilled human resource evident from its innovative product
- The organization operates in a new niche thus bound to maintain a plausible market reach before concentration
- The organization invests highly into targeting the youth market hence bound to accrue profits from the ever growing populous
Weaknesses
- AHA Beverage Company, as a new organization does not enjoy economies of scale as compared to its competitors. Thus, the reduced economies of scale are bound to reduce the profit margins
- AHA Beverage Company has not set up a proper website. Thus, its customer acquisition process will require high capitalization
- AHA beverage company has not yet cemented its position in regards to brand awareness that may pose a daunting task for an organization to sustain performance
- AHA beverage company does not have the financial capability to compete effectively with the dominant organizations such as Pepsi and coca cola
Opportunities
- AHA Beverage Company can invest highly on the ever growing online market. Through setting up a plausible internet site, the organization will set up a plausible online business
- Health conscious market is growing extensively in US. Thus, it poses a plausible environment for profitability for the organization
- AHA beverage company is still a new company thus can invest highly into building a plausible brand image within the health conscious sector
- AHA beverage company, as a start up with a novel product, it has a widened avenue for financial availability mostly from venture capitalists
Threats
- There prevails extensive competition from coca cola and Pepsi who have ventured into the vitamin water segment
- Bureaucracies and regulations within the beverage and drinks industry are bound to impede on operations at AHA beverage company
- The organization may succumb to acquisition from larger companies such as Pepsi and coca cola. Thus, it should invest highly into organic growth
- Sustaining market dominance is surmount evident from the two giants within the beverage industry
Conclusion
Marketing planning is a plausible tool towards sustaining effective operations among businesses. Thus, from the evaluation of AHA Beverage Company, it is imperative that the organization implements its marketing plan effectively to sustain plausible outcomes. Through the inculcation of the marketing plan, profitability and revenue yield is bound to prevail.
References
Cone, S. (2011). Steal These Ideas! Marketing Secrets That Will Make You a Star. New York: John Wiley & Sons.
Kotler, P., & Armstrong, G. (2013). Principles of Marketing. New York: Pearson Education.
Kotler, P., & Keller, K. L. (2012). Marketing management. Harlow: Pearson Education.
MacDonald, M., and Hugh, W. (2013). Marketing plans: How to prepare them, how to use them. New York: John Wiley & sons.
Peter Doyle, S. B. (2012). Innovation in Marketing. London: Routledge.
Sandhusen, R. L. (2010). Marketing. London: Barron's Educational Series.
Zimmerman, A., & Blythe, J. (2013). Business to Business Marketing Management: A Global Perspective. London: Routledge.
