Target Market
The product targets teenagers, young adults of the age of 18 to 35 years as a demographic group. However, there are plans to expand into non-customary markets as well. Most of the teenagers and young adults are either in college or working, thus, easier to reach them through the chosen distribution channel of direct-store-delivery. The teenagers are a vital demographic for non-alcoholic beverages. Coca-Cola proved this statement at the 2014 conference of consumer analyst group that was held in New York (Kenny & Dyson, 2016). During this conference, Coca-Cola, which is a leading brand in the soft drink industry and a competitor, reflected on the relevance of the teen population, which is to the tune of 3.5 billion consumers globally. The teen population referred to in this context is anyone who is in their early 20s as well as the teenagers.
The other primary demographic faction is the Hispanics, which is considered to be a fast-growing community within the US. Now the Hispanic community comprises of people of the Mexican, Central or Southern American, Cuban, and the Puerto Rican origin. However, people that practice Spanish cultures or descent are also collectively referred to as the Hispanics, their race notwithstanding (Kenny & Dyson, 2016). Thus, several companies are investing heavily in marketing strategies and innovating merchandise that is fast growing populaces. There is substantial market research evidence, which indicates that the Hispanics’ buying power increased significantly by almost 50% from 2010 to a staggering $1.5 trillion in 2015.
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Another influential demographic cluster is Millennial. They have been the target of numerous non-alcoholic beverage companies such as Monster Beverage Corporation, Pepsico, Inc., Coca-Cola Company, and Dr Pepper Snapple Group’s marketing campaigns. The Millennial is considered to be the generation of people that were conceived during the period of 1980 to 1995 (Kenny & Dyson, 2016). Market research indicates that this group is composed of approximately 77 million people in the US alone. The figure is an equivalent of 24% of the entire US population. Moreover, this demographic cluster is known for the extensive use of mobile devices as well as social media and possesses a remarkable awareness of the products.
Fresher Inc.’s Market Competition
The market competition for non-alcoholic beverages that Fresher Inc. targets are extremely competitive, and the competition is tough as there is a decreasing demand for carbonated drinks. Thus, most of the major players in this soft drink industry can achieve brand positioning in this unfavourable market condition through aggressive advertising campaigns and product branding. The competition in the industry consists of international companies that enjoy massive global popularity (Kenny & Dyson, 2016). Such companies comprise the likes of Coca-Cola Company that was placed third as the world’s most valuable brands. The value of the brand was approximated at $81.6 billion while its closest competitor was placed 24 th in the most valuable brand category. The brand value of PepsiCo, Inc., in the same study, paved it at $19.1 billion.
When the products are categorized based on popularity, Coca-Cola takes the leading market share followed by Diet Coke, both products from The Coca-Cola Company. Third in global popularity is the energy drink Red Bull manufactured and distributed by Red Bull GmbH and the fourth position taken by Pepsi, which is a carbonated soft drink from PepsiCo, Inc. A brand of popular coffee, Nescafe manufactured by the Nestle Company follows closely in popularity (Kenny & Dyson, 2016). The sixth most popular soft drink is a fruit-based drink manufactured by PepsiCo, Inc. under the brand name of Tropicana. Other products that seem to have an equal ratio of popularity are Nespresso a coffee machine, Fanta and Sprite soft drinks by Coca-Cola Company, and Gatorade a sports drink from PepsiCo, Inc.
PepsiCo and Coca-Cola are the giants in the soft drink industry as they possess an array of product brands that have the capability of generating billions of dollars for each of the two companies. For instance, under the Coca-Cola Company, there are over 500 brands of non-alcoholic beverages. Out of these numbers, seventeen brands have the capability of generating revenues that gross over a billion dollars each. Such brands consist of Minute Maid, Coca-Cola, Schweppes, Diet Coke, Fanta, Bonqua, Powerade, Dasani, and Aquarius (Kenny & Dyson, 2016). From the numerous product brands that Pepsico boasts of, 22 of them have a similar capacity of generating over a billion dollars of global sales each. These brands include Lipton, Pepsi, Gatorade, Aquafina, Mountain Dew, and Mirinda.
The company has no plans to compete against the soft drink giants as they have the financial muscle and the largest market share. Thus, Fresher, Inc. plans to compete strategically by targeting niche markets. Since the company's Gatorade is made of all-natural fruits that give it a memorable and great taste, Fresher, Inc. will focus on selling stories to the niche market. Selling stories has been proven as the best marketing strategy to get the products out and flying. Hence, the company will invest in advertisements that portray different sportspeople. The story being sold is health consciousness, and the niche market targeted is the athletic and sports niche. Thus the company will use social media, media, and outdoor advertising to spread its story. This is because some of the stores and distributorship that the company will be using are also expected to deal with products from the competitors (Cohen et al., 2018). Hence, in locations where the product is unknown such in large retail stores, the company will use its sales force to offer samples to customers.
Marketing Campaign
Focus – The campaign is not focused on getting the product out by increasing the traffic volume but rather to build the brand of the product. At Fresher, Inc., the team believes, "The strength in you lies in your confidence." This is the message that the company wants to send across to its consumers, that every time they come across the product, they visualize on their inner strength.
Follow Through – The Company will be aggressive in ensuring that all proposed course of actions is followed through to the end. This will be achieved best through the development of an implementation strategy that will involve all stakeholders to avoid a scenario where all decisions are dependent on a single office (Taran, Boer & Lindgren, 2015). The strategy is to ensure that there is communication throughout the product development cycle as well as innovativeness to get the product into the market.
Feedback – Since the company is focused on promoting a healthy drink, a lot of media campaign will revolve around the theme of personalized strength. But, it is also evident that for a successful marketing campaign, there is a need for meaningful feedback (Taran, Boer & Lindgren, 2015). Thus, the marketing department will embark on a mission to collect not only positive but also negative feedback from its clients, shareholders, distributors, retailers, wholesalers, suppliers, employees, and competitors with the view of improving the product and marketing strategy.
Flexibility – The marketing campaign is expected to be strong to gain the right kind of attraction and conversions. The campaign will be the primary tool for lead generation; therefore, there is a high degree of flexibility that will be placed to allow for changes in case they are called for (Taran, Boer & Lindgren, 2015). To ensure that the marketing campaign accommodates changes, the marketing department will conduct a series of studies to create a plan B for each marketing effort for in case of any in eventuality. Thus, a high degree of foresight will be used.
Fun – Because the product carries the message of healthy living and strength, the advertisement will include aspects of fun. The fun will start with the marketing and sales departments as all healthy people are expected to be happy, then spread to the other departments and as they say enthusiasm is contagious, find its way to the clients.
Marketing Strategy
Fresher, Inc. has the intentions of using Social media, Outdoor advertising, print, audio, and television as marketing vehicles. Social media sites like Facebook which commands a subscription of near one billion active users, Twitter and LinkedIn both commanding over 300 million active user bases each will be effective for the marketing campaign (Felix, Rauschnabel & Hinsch, 2017). Additionally, outdoor advertisement through brochures, billboards, merchandising display, and the sampling premiums will be used while for print; adverts will be placed in ESPN sports magazine. Television will be effective in reaching the large masses with audio-visuals while audio will use radio commercials and podcasts to engage with the customers.
Marketing Budget
The budget set aside for the marketing plan of the product is $190,980, which is as demonstrated in the market budget chart. Among the professional assistance the company has enlisted for the marketing, the drive is the special media specialist at a rate of $6000, SEO specialist at $6000, and Graphics and Web designer at the same rate. The company also plans to spend $120 on brochures, leaflets and fliers while billboards will cost Fresher, Inc. $120,000 and merchandising display together with sampling premiums $6,300. Media advertising is expected to cost $15,360 and the website costs at $13,200. Public relations has a budget of $6,000 while networking and informal marketing $12,000. All the costs discussed are computed on an annual basis.
References
Cohen, D. A., Bogart, L., Castro, G., Rossi, A. D., Williamson, S., & Han, B. (2018). Beverage marketing in retail outlets and The Balance Calories Initiative. Preventive medicine, 115, 1-7.
Felix, R., Rauschnabel, P. A., & Hinsch, C. (2017). Elements of strategic social media marketing: A holistic framework. Journal of Business Research, 70, 118-126.
Kenny, B., & Dyson, K. (2016). Marketing in small businesses. London: Routledge.
Taran, Y., Boer, H., & Lindgren, P. (2015). A business model innovation typology. Decision Sciences, 46(2), 301-331.
