Company Background
MugesWaters is a newly established company that is privately owned by two partners with the main aim of distributing bottled vitamin water and nutrient drinks to the target market. The company will be headquartered in Glacéau though it projects to have subsidiary companies across the world. Objectively, the business intends to provide nutrient drinks and mineral water to meet the rising needs of the people across the societies. The company shall remain recognized in the nutrient drink industry through superior services to the consumers as well as maintain an economically profitable business to the partners. Based on this, the company shall adopt an effective leadership system that shall exceed consumer expectation in providing innovative new drink brands. The mission of the MugesWaters is to provide high-quality drink products to the customers in improving their health and convenience to their lives.
Macro Environment Analysis
Socio-Cultural
With the changes in the current business world, drink industry is considered as one of the fastest growing industry in the world. The industry is experiencing constant growth in the number of customers and the need for healthy drinks is on the rise. Zou and Fu (2011) explain that, in the last two decades the demand for healthy water and other nutrient drinks are on demand. The consumers prefer nutrient drinks that they feel are healthy and fills the niche between soft drinks and pure water. More importantly, they embrace the idea of consuming a little bit nitrous water for the purpose of their healthy living. Ideally, consumers are on the trend demanding for waters and drinks that contains low-surge and lesser calories than those of soft drinks such as soda (Westwood, 2013). According to Grewal and Levy (2010), it is all about providing consumers with drinks that reflect health image of the brand.
Competition
Even though, the company may be ambitious in introducing its products in this industry, there are already key players in the industry. Glacaéau-Vitaminwater takes the largest share in the provision of healthy water and other nitrous drinks to the consumers. On the other hand, Hung Fook Company also offers stiff competition in the same industry (Westwood, 2013). Besides, Pepsi and Coca-Cola are also introducing same brands that may affect the consumption of the Company’s brands in the market. All these companies compete in terms of price, differentiation of brands and in the production of healthy brands that suits consumer needs.
Economic
As the economy of world countries keep improving, the consumer income as well keeps improving. Cahill (2006) notes that, the consumer economic income has almost doubled in the last two decades. More importantly, the consumers have flexible budgets on health drinks. This presents opportunity to the new entrants in the industry
Technology
With the advancement in technology, quality of products keeps improving. Technological breakthrough makes it very possible to add natural flavors and vitamins to the vapor distilled water. The propel machines make it easy to process drinks with low calories but the inclusion of all natural flavors that makes the drinks sweet. As can be seen, this industry is responsive to technological changes, and this may affect future trends of the brands.
Government Regulations
With several research discoveries, the governments have introduced rules and regulations that emphasize in the production of healthy products to the general consumers. Both the international law and government regulation champion for the sale of naturally flavored drinks that do not affect the health of consumers (Westwood, 2013). MugesWaters shall abide by these rules in providing naturally flavored drinks that ensure the health and safety threshold are met.
Target Market
The company highly targets the outgoing youths who have become associated with the nutrient water drinks. However, the competition is so strong in the drink industry such that the company shall segment its market based on price, location, offers, and entry strategies into the industry.
Product
The offer of the company shall constitute vapor distilled water combined with crystalline fructose and natural flavors such as vitamin C and E that shall make it sweet to the trending youths. Combined with all the necessary minerals needed for a healthy body, the product shall come in a variety of quality flavors that wins consumer trust and loyalty. Ideally, this is to win customer’s bargaining power.
Price
MugesWaters targets the price sensitive consumers who love paying for the value of the product. While other competitors charge slightly higher prices for their flavored drinks, the company targets to charge slightly lower prices while maintaining the value of the drinks high. This is projected to enable the consumers see the difference that the company initiates in this industry. Keeping prices low shall deal with threats from new entrants into the industry (Lamb, Hair & McDaniel, 2012).
Promotion
Place
Positioning Strategy
Objectives and Goals to be achieved
In the first two years of entry into the drink industry, the Company projects to expand its consumer base. However, with improvement in marketing strategies, by the fifth year the company aims to be the leading company in the sale of nutrient drinks in the industry. Additionally, MugesWaters intends to remain economically profitable through the innovation of new products with the trending technological advancements.
References
Cahill, D. J. (2006). Lifestyle market segmentation. New York: Haworth Press.
Grewal, D., & Levy, M. (2010). Marketing. Boston: McGraw-Hill Irwin.
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, OH: South-Western Cengage Learning.
Westwood, J. (2013). How to write a marketing plan. London: Kogan Page.
Zou, S., & Fu, H. (2011). International Marketing: Emerging markets. Bingley: Emerald.
