Marketing Plan and Strategy
Fresh Beverages is a non-alcoholic beverage company located in California that produces sugarless energy drinks in the United States. The company sells its product through a brand name Ener-Drink which it hopes to push to the top of the market in the next few years. Currently, the energy drink market in the United States is controlled by a few multinational companies that have a huge share in the market. However, the market still has room for new entrants like Fresh Beverages considering the market is still growing. Besides, the company is focusing on the new segment of the market that is still not yet populated by the multinational producers. Fresh hopes to launch its product in the next four months and project tremendous success.
Even though the drink is suitable for all ages, the company targets people between the ages of twenty and fifty years. This age group consists of the most active people as they are involved in sporting activities, physical exercises, and job-related tasks that drains their energy. Ener-Drink is designed to boost their energy and keep them active as they undergo around their duty. Additionally, the drink targets consumers with medical conditions like diabetes since it is sugar-free. Moreover, consumers that are conscious about their sugar daily consumption also have an opportunity to use Ener-Drink to energize themselves.
The target market for the drink is divided into two categories based on their unique characteristics. The first group is the sportsmen and women in the city and beyond. Ener-Drink is made from natural ingredients thus does not contain any banned substance by the anti-doping agencies. Athletes are one of the ready markets for the product as they require to energize to push them through their performance. However, these energizers should not contain chemicals that give them undue over other athletes.
The second group targeted by the product is the ordinary people in the city from the ages of twenty to fifty. These are individuals that undertake various tasks thus requires energy drink to boost their strength throughout the day. Currently, the California city has a population of 13495 with 1051 reflecting 7.8 percent (American FactFinder, 2019). The target population of people from twenty to fifty years stands at 5242 (American FactFinder, 2019). It is notable that the company does not segregate the market using any other demographic other than age and profession- in this case, athletes.
The energy drink industry in California City already has global brands like Red Bull, Monster, and Rockstar among other leading drinks. These brands are already holding a significant share of the market and Fresh Beverages must differentiate its product to break through the competitive market. Despite the presence of these drinks, the market still has room for new entries, especially when they can directly link with the product. As a result, Fresh Beverages hopes to have considerable market share in the next two years by offering a unique product that meets the locals’ needs. The marketing strategy of Ener-Drink will revolve around emotional appeal from the locals by creating a strong sense of ownership since it is produced in their locality by people they know.
California City beverage industry is a free perfect competition market with several sellers dealing with various products from companies. Perfect competition is characterized lack of single brand or seller dominating the market share to control the prices (Azevedo & Gottlieb., 2017).of the drinks in the market. Besides, the City’s authority does not have any regulation that limits the entry or exit from the beverage market. Fresh Beverages thus approaches the market from fairground as it has a fair chance of succeeding just like other brands. It is notable that the multinational brands like Red Bull and Monster currently available in the market do not have any specified approach in marketing their products in California City saved for the adverts on national televisions.
The California City beverage market is currently no saturated as it relies on external producers to supply the town with its energy drinks. Besides Fresh Beverages, the town does not have any company producing non-alcoholic beverages or energy drinks. The market is not highly concentrated as it currently controlled by future suppliers and retailers of established brands. These suppliers only benefit from massive commercials promoted by the manufacturers for their products. Besides, they sell products with greater brand positioning thus giving them a competitive advantage Fresh Beverages. Ener-Drink is a new product thus does not enjoy loyalty associated with brands that have been the market for a long time. Additionally, the existence of many sellers in the market with non-enjoying controlling market share makes the industry highly competitive. However, Fresh Beverages will adopt a different approach to the market by having zero sugar energy drink considering they are still not popular currently.
Besides, the market growth rate for beverages in California City is relatively fast thus lowering the competition. Currently, the town has an estimated population of 13495 up from 8385 in 2000 (U.S. Census Bureau, 2001). The targeted adult population has risen almost doubled from 5502 in 2000 to 10340 in 2017 (U.S. Census Bureau, 2001; American FactFinder, 2019). Additionally, the mean earning in the city is currently standing at 45179 dollars per household which is an impressive amount. The average household earnings indicate a vibrant market due to the relatively high purchasing power. Moreover, the city has almost zero unemployment rate thus creating a robust market for our product. In essence, the relatively high market growth rate reduces the level of competition in the market. Consequently, Fresh Beverages stands an opportunity to increase its market share with the growing market.
Non-alcoholic beverage producers create similar but differentiated products. The ability to penetrate the market depends on the level of differentiation and its subsequent appeal to the customers. Current energy drinks like Monster, Red Bull, and Rockstar offer almost the same experience to the customers. The only differences in these products are packaging, pricing and overall branding in the market. These multinational companies present their products as a source of power to the consumers. It is notable that these multinationals have the huge financial muscle to spend on marketing hence the popularity of their products. The success of Fresh Beverages through its flagship brand Ener-Drink lies on differentiating its product to avoid direct competition. In this case, the company focuses on the health aspect of the beverage by producing a sugar-free drink. The sugar-free drinks are currently not very popular in the market thus provides the company with a cutting edge over the existing stiff competition from the multi-billion companies.
The company has adopted a powerful tag line “Powering your healthy living” that reflects its objective. The word healthy is intentionally introduced in the line to depict its product as fit for human consumption with no side effects. Fresh Beverages hopes to exploit the increasing awareness of healthy living by reducing sugar consumption by providing its clients with an alternative. People involved in physically draining jobs but want minimal sugar consumption to have Ener-Drink as an option. “Powering your healthy living” is a slogan that contains the critical components of the drink; energizing in a healthy manner.
Fresh Beverages is a small start-up company that does not have a lot of funds to carry out extensive media campaigns to popularize the product. However, the company plans to use social media platforms and its official website to promote its products to potential consumers. Social media platforms like Facebook, Twitter, and YouTube are powerful tools in product promotion yet they do not require huge capital. The company will have a professional online content producer to push the brand. Also, the company will launch an online platform to sell its products to clients within the city. Customers with purchase above a hundred dollars will get free delivery.
Fresh Beverages further plans to use open trucks to promote its product to the town’s residents by offering free samples during the trips. In the future, it will engage in corporate social responsibility like sponsoring sports events to win the hearts of the residents. Sports events are particularly essential as the product targets athletes as part of their core customer base. It is notable that the company might not experience huge sales in the first few months but hoping to experience an increase in revenue with time.
American FactFinder . (2019). Retrieved from American FactFinder : https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF
Azevedo, E., & Gottlieb., D. (2017). Perfect competition in markets with adverse selection. Econometrica, 85(1), 67-105.
U.S. Census Bureau. (2001). Profile of General Demographic Characteristics: 2000 more information. Retrieved from American FactFinder : https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF