FINAL MARKETING PLAN 8
Tigerenergy drink faces the hard task of having to compete against otherbrands that have been around for quite a long time. These otherbrands are known to the target market and most of them have theirshare of loyal customers. This does not mean that this new productcannot achieve its desired goals and objectives in this industry.There are branding, pricing and distribution, among other strategies,that are meant to help the company to get to that desired level.However, the ultimate tool that is essential for this to happen is acomprehensive and effective marketing plan. The following istherefore a marketing plan that is aimed at ensuring the product notonly breaks through but also becomes a leader in the market.
Branding,Pricing and Distribution Strategy
Ithad already been predetermined that eighty five percent of new usersof Tiger Energy drink became loyal customers of the brand. The newobjective therefore that came from this was to make the drinkattractive so that it may attract more people and thus there will bemore first time users. The branding strategy that will be used inthis marketing plan will be to market the product as an energy drinkof high quality that can be used by sportsmen all around the world.The key factor will be to make customers associate high quality withthe brand. Therefore, the branding strategy is to make it the energydrink on the market with the highest quality. Given that the producttargets people who are mostly physically active, another brandingstrategy will be to make the product more appealing to young peoplebetween the ages of twenty and thirty five. These are the people whocarry out the most physical activity hence they are most likely tobuy the drink.
Thepricing strategy will involve two main methods Penetration andcompetitive pricing. Given that the product has not yet achieved themarket share that it desires, these two pricing strategies will makeit more popular with the people. Penetration pricing will mean thatthe prices of the energy drink will be cheaper than the prices ofother similar drinks so that customers may opt for it. The priceswill however be close to competitors’ prices so that the companydoes not undergo losses or quality of the product is not in question(Cheverton, 2004).
Thereis also distribution strategy that the product will employ in orderfor the set goals and objectives to be achieved. The company willemploy use of middlemen such as agents, wholesalers, franchisers,resellers and retailers to ensure that the product is spread as fastas possible to a large number of people. The company intends that theproduct reaches customers in the most convenient means and this ismostly by making use of retailers. Apart from this, the distributionstrategy is also meant to ensure that the customers will always haveaccess to the energy drink despite their location.
Anenvironmental analysis of the company’s external environmentfocused mainly on the competitors of the energy drink. The majorcompetitors were Red bull, which had a fifty percent market share,Hansen followed with an eighteen percent market share and finallyCoca cola with a seventeen percent market share (Dubrin, 2012). Allthese were inter brand competitors. The company did not have anyintra brand competitors because the number of distributors andfranchises was still small and the popularity of the drink was notenough to warrant an intra brand kind of competition. The closestcompetitor is Coca cola which has a seventeen percent market share.To gain a competitive advantage over them, the strategy to be usedwould be to have better quality energy drinks than Coca cola. Theproduct should be made more appealing to customers as compared toCoca cola. There will also be price differentiation. Tiger EnergyDrink will be sold at a lower price. However, this cannot be dependedupon entirely because the coca cola company is stronger financiallyand thus has the ability to sell their products for lower prices overa long period of time.
Ithas been made clear from the start of this plan that the company’sintention is to be a leader in the industry. However, there are othercompanies that existed before it that have the advantage of capital,experience and reputation. The only advantage that this company hasis the guarantee of offering high quality energy drinks at affordableprices. This is one factor that has led to an eighty five percentcustomer loyalty rate for all new users. If the company manages toget more and more people to use the product, then after the five yearperiod, it will have a considerable market share in the industry.These are the baby steps that will make it a leader in the industry.
Apartfrom the competitors, there are also other factors within theexternal environment that affect the company’s marketing strategy.These are economic and social factors. Economic factors come as alimiting factor on the purpose of the marketing strategy (Mathur,2008). This is mostly affects the pricing strategy that plans onselling the drinks at low prices in order to attract more customers.The recent economic trends such as depression and inflation cause thecost of manufacturing to be high. This in turn makes it difficult forthe company to sell products cheaply unless they are willing tooperate at losses. Social factors in the environment are those peoplefactors. These pose a challenge for the marketing strategy mostlybecause they are unpredictable. Despite the strategy that is put inplace, the attitudes of the people involved play a vital role in thesuccess of the product.
Themarketing research tools that were used in coming up with thismarketing plan mainly consisted of surveys and information from blogsand social networks. The surveys were carried out in the form ofcustomer response where customers were asked to answer some questionsabout the product. Blogs about the product were also monitored andpages for the product opened on social sites like Facebook.
Theimplementation strategy is a four step process. The first step in theprocess is to develop the brand, the next step is popularizing thebrand, and this is followed increasing the number of sales and marketshare and finally expanding to new markets. The first step will takeplace in the first year of the marketing plan. Given that the brandis to be one that is associated with quality, it will be the duty ofthe manufacturing side of the company to come up with a drink whichhas been promised to customers. The next step of popularizing thebrand will occur in the first and second years of the marketing plan.It will require extensive advertizing and other product promotionmethods by the company. The last two steps are gradual andcontinuous. They will take place throughout the five year period. Thepeople who are in control of these are managers of the organization.Their key role will be to provide resources required to fulfill thesesteps.
Ifeverything goes according to plan, then it is expected that the levelof profits will double over the next five years and the company willstart be at the stage where it experiences rapid growth. It is alsoexpected that if the current rate of customer loyalty remainsconstant, then the market share of the company will grow to about tenpercent over the next ten years.
Inorder for this to be possible, the company will have to make the useof social media and main stream media. Two parts of this that will bemost effective are Facebook and Television. Facebook has millions ofusers in the United States alone and it offers an interactiveplatform where different people can get information and give feedbackon the information they get. They can also give opinions on what theyfeel about different issues and products. Therefore, this will notonly enable the company to advertise the product, but it will alsoenable it to get feedback about their product. Television will alsoserve a similar purpose without the benefit of direct feedback.
Thereare also performance standards, monitory methods and financialcontrols that need to be put in place to ensure that the companystays profitable (Niven, 2006). The monitoring methods to be usedinclude making comparisons and having a feedback mechanism. Comparingwill help to see if the company is moving towards the desireddestination and feedback is supposed to ensure that it does not takeany steps backwards. The performance standards will be an extensionof the goals and objectives. Targets of sales and geographicaldistribution of the product will be the major standards used. Thesetwo are suitable because they will help the organization to know ifit is working towards becoming a leader in the industry. Finally,there will be financial controls that will ensure that the companydoes not end up undergoing losses while pursuing other endeavors. Themajor financial controls will be through use budgets and audits.
Theexpected performance of the company can be assessed after consideringthis marketing plan. We have seen that the growth and profitabilityof the company are expected to rise at a fairly fast rate. Thegeographical distribution of the drink will also have increased. Ifwe judge performance of the company using these factors, then it iscan be said that the company’s performance will improve if themarketing plan is implemented.
Thefinal factors to consider are the integrated marketing communicationsthat will best suit this marketing plan. This is the application ofthe brand message on different marketing channels (Poonia, 2010). Itemploys the use of different promotional methods in order to achievethis objective. The most relevant IMC for this plan is onlineinternet marketing. This essentially requires that the company’smessage effectively reaches a large number of people in the shortesttime possible and the best way to this is through online marketing.Advertising strategies that go hand in hand with this include emailmarketing, social media marketing and mobile marketing.
Cheverton,P. (2004). Key Marketing Skills 2: Strategies, Tools and Techniquesfor Marketing Success. London: Kogan Page.
DuBrin,A. J. (2012). Essentials of management. Mason, Ohio:South-Western/Thomson Learning.
Mathur,U. C. (2008). Rural marketing: Text and cases. New Delhi: ExcelBooks.
Niven,P. R. (2006). Balanced scorecard step-by-step: Maximizing performanceand maintaining results. Hoboken, N.J: Wiley.
Poonia,V. (2010). Advertising management. New Delhi: Gennext Publication.