Marketing Innovation Strategy And Marketing Performance - Case Study Example

Marketing Report Course Code Student Name Date of Submission Table of Contents Executive Summary 3 1.0.Introduction 4 1.1.Company Introduction 4 1.2.New Product Introduction and Description 4 2.0.Marketing Goals/Objectives 4 3.0.Situation Analysis 5 3.1.Competition Analysis 5 3.2.Distribution Situation 5 3.3. Competitor Analysis 6 4.0. Differentiation Strategy 6 5.0. Market Segmentation and Target Market 6 6.0. The Marketing Mix 7 6.1. Product 7 6.2. Promotion 8 6.3. Place 8 6.4. Pricing Strategy 8 7.0. Distribution strategy 8 8.0. Communication Plan 9 9.0. Conclusion 9 References 10 Appendix A 11 Appendix B 13 Appendix C 14 Executive Summary Blackmore is a leading healthy and nutritious drinks producer that consistently introduces varieties of healthy beverages. This report is a marketing plan of the new product, Aloe and White grape which will be a healthy beverage targeting the family-oriented market segment. This plan includes details of the company and the new product. It discusses the competitors as well as the strategies that will be formulated for the success of the new product. The plan also includes the pricing strategy that Blackmore will use about the competitors. The marketing plan concludes with a summary of what have been discussed. 1.0. Introduction 1.1. Company Introduction Blackmores is a leading natural health company in Australia. The firm offers a variety of selections of pure natural beverages that range from fresh juice to energy drinks. The company is driven by the vision of the founder, Maurice Blackmore of being passionate about natural health. The vision of the company is to inspire people to take charge of their wellbeing and invest in a healthy lifestyle. The company is fully aware of the customer needs and lifestyle and provides products and services that deliver a natural approach to their health. The company’s sufficient expertise in vitamins, herbs, and nutrients makes the development of health solutions meet the customer’s expectation. 1.2. New Product Introduction and Description Aloe and White's grade is another product for Blackmore's soda pop for the Australian families who need a crisp, characterized with healthy juice with the vitamin. Aloe & White Grape drinks that would be suitable in meeting the health-related benefits that consumer need. The drink is not like other soda pop brands which are centered on sustenance and Vitamin. Aloe and White Grape contains mash and vitamin H, no added sugar or additives. The drink will have various healthy characteristics desired by consumers. The new lid-bran new-lid structure will protect customers; vitamin C will promote amino acid which has tryptophan’s metabolism, less sugar, and Low calcium among other benefits. The drink has inspirational health benefits for its users. Aloe & White Grape drink will be packaged in recyclable bottles that hold 300 ml, display the brand’s name, fun related facts, and the nutrition benefits of the drink. 2.0. Marketing Goals/Objectives Blackmores implements the SMART goals strategy in formulating the marketing objectives for Aloe & White grapes drinks • Have the product testing done and prepared for 1/1/2016 • Offer approximately 15, 000 units in a year • Accomplish 30% market share in the beverage industry within a year • Jointly work with real stores such as Coles and Woolworths for item dispatch by Dec 2016 • To accomplish a 90% product mindfulness in the business sector within 8Months • Have 75% of the objective achieved within 12 months. 3.0. Situation Analysis Food and drinks make part of the life of Australians. With a diverse population, different segment demands different products. Drinks are important components of meals within Australia. Without the drinks, the meals are incomplete. When it comes to a proper and nutritious meal, there is intense competition among the Beverage Company and drinks. There is a need for Blackmore make changes to the product portfolio to compete effectively in the intense market. Most of the households in Australia have parents who work. These people are forced to eat put in cafés and restaurant on a regular basis. In some cases, they might carry packed food from home. Most people have faced health issues as a result of eating out due to unhygienic and unhealthy meals. Individual are now taking up healthy eating and avoiding junks. 3.1. Competition Analysis Coca-Cola launched non-alcoholic drinks that are often fizzy drinks. However, this product will experience a lower competition level from other soft drinks. Although the drink is not a product that is not imitable, individuals would often choose products they feel are unique and difficult to imitate. 3.2. Distribution Situation Coca-Cola uses the customer marketing distribution channel. This type of distribution is geared by the demand for the soft drink. It implies that when a demand arises, the information is sent to the wholesalers who communicate with the dealers who contact the company to produce a particular product. The distribution system is not only efficient but also integrative. With Coca-Cola achieving its efficiency by setting buffer levels, Blackmores will be distributing the Aloe and White grape product in sports centers, restaurants, and leading supermarkets. 3.3. Competitor Analysis Blackmores will face a rivalry from various firms dealing with energy drinks. However, the major and biggest challenge is the Coca-Cola company which is the world’s number one soft drink producer. The Coca-Cola Company present risks for Blackmore production lines. This is because Coca-Cola Company can produce products at a lower cost with high economies of scale. PepsiCo, the second largest soft drink producing company, is the company’s competitor. However, despite the intense competition, Blackmore targets a market niche of health conscious consumers. By targeting families, Blackmore’s minimizes the challenges through economies of scale and targeting a wider customer range. Consequently, Blackmore’s will target families who are conscious about their health. 4.0. Differentiation Strategy An innovative line of energy drinks will be launched by the company to fit the health-related benefits that the clients seek. The inspirational benefits of Aloe & White grape drinks are the major promotion tool. Moreover, the product is differentiated from other drinks. The unique features of the new product are; no added sugar, no artificial color, and preservatives, contains Biotin, Low-Calorie level, no fat and a convenient lid. This feature makes the drinks stand out from the popular energy drinks in the market as it presents the health conscious customers to have healthy options. Differentiation strategy of product positioning will assist the company to efficient target the customers (Bacanu, 2015). By offering a ration alternative to the customers, the new product will also bridge the gap of uncertainty the customers have regarding health exposures and risks of energy drinks (Jocumsen, 2002). 5.0. Market Segmentation and Target Market A marketing plan is a continuous procedure that involves gathering and examining information about goods and services (Sueldo, 2016). It also involves studying the abilities and various business methods within a market used to meet the demand of the customers (Kimpel & Friedrich, 2015). Because Blackmores is creating and presenting a new product, it is mandatory to collect sufficient information and conduct involving discussions. The information assists in marketing strategies development. Therefore, market segmentation has a significant role in the formulation of marketing strategy. Aloe and White grape is a fruit beverage. The drink is introduced into the fruit beverage market that comprises of existing products within the market. The drink provides more nutrition, tastes good and is of high purity as compared to other beverages. The major target market of Blackmores is individuals at three demographic bases. The first segment comprises of individuals of ages 19-26 at higher education levels and employees. These individuals have little income and may be married with no children. This group at targeted because they have better financing, high level of consumption with high purchase rate. The second groups are individuals of ages 26-35 who have families. This group of individuals has a high income, save less, and is married with children. This segment contains individuals with better financing, are interested in new products, prefer advertised products and often make a purchase for their children. The third segment is individuals aged 36-65, who are middle-aged, married and with children. The company uses the concentrated strategy to target Australian family market. The strategy is useful because families tend to look for healthy products with family value. Most of the products are sold in sets of 4-6 bins in a package in supermarkets. 6.0. The Marketing Mix 6.1. Product To satisfy the nutritional need of the consumers, Blackmore has taken considered the development of the drink. The product is designed in such a way that it can be consumed during exercise. It is also targeted to replenish lost nutrients, to maintain movement and improve athletic ability of the consumers. With glucose and Aloe Vera as the raw materials, the product is designed to eliminate the role of fatigue in acceleration. As a nutritious drink, Aloe & White Grape is designed to provide kids with necessary vitamins. The drink is convenient as consumers do not have to add water and other drinks to consume. The drink is healthy and possesses sophisticated look that differentiates it from other drinks. 6.2. Promotion Blackmore will apply its strong understanding of the needs of the consumers to come up with the knowledgeable promotion of the new product. This will be dome through advertising, promotions, public relations, direct marketing, and packaging, covered by the news media. Because the product is also designed for the kids, campaigns featuring kids will also be exercised to attract the intended market. 6.3. Place With a strong network of distribution, the products will make the product accessible to the consumers at their convenience. This will be done by setting a new individual website to introduce the product. The company will corporate with major supermarkets such as Coles and Woolworth to make the product available on the shelves. The company will also establish an official vending machine to sell the products in sports centers. 6.4. Pricing Strategy Pricing is the total amount allocated to a product or service (Garge, Sign & De, 2016). However, sellers view product price in a way different to the customer. The objective of pricing strategy implemented by the company is to provide affordable prices for consumers. The company will use the guaranteed pricing strategy that would assist in the development of the product prices. The guaranteed price strategy will assist in maintaining the baseline. Also, the company applies the competitive pricing strategy. However, a bottle of Aloe & White grape drinks has a trade price of $4. The price of the drink is two-thirds the price of the ordinary beverage. 7.0. Distribution strategy Chuwiruch, Jhundra-Indra & Boonlua (2015) defines distribution channel as the method used for the product to move from the producer to the end user. Blackmore will use the indirect distribution channels. First, selling to selective distributors such as Coles and Woolworth who deal with the customer directly. To gain a wider coverage, the company will employ the intensive distribution method where the product marketing will be in gymnasiums. The major products will be showed in the gym. Selective distribution whereby the products are exhibited in supermarket shelves alongside other products would be employed to make it easier for the customers(Jain & Haley, 2009). The exclusive distribution will involve the same level of products distributed by one dealer in a specific area. Retailers will be used to provide necessary goods and services incidental to the final consumer-oriented industries (Skarmeas, Zeriti & Baltas, 2016). This distribution would benefit the company because they are better sales channels, effective sales promotion, strong ability to facilitate convenient and attractive stream. The distribution channels are large scale hence improving the efficiency of the management. The selected distribution channels are parallel to other energy drinks. The main aim of using the distribution channels is to maximize the frequency that the customers get into contact with the product to increase its sales. 8.0. Communication Plan As identifies, the product targets three demographic market segments which are family oriented. The family oriented market segment has a positive outlook on life. The company will integrate its marketing communication on the one hand to all communication activities such as advertising, promotions, public relations, direct marketing, and packaging, covered by the news media. The activities will be within the scope of marketing activities. Moreover, they will enable enterprises to unify the dissemination of information to relay to the consumers. 9.0. Conclusion The new Blackmores product, Aloe and White Grape will be sold locally in Australia. By using various distribution and promotional channels, Blackmore will ensure that consumers have enough knowledge and can conveniently access the product. The marketing mix of the product assists the company in determining the potential progress and success of the product. It also helps the company to remain responsible to the consumers by meeting their product claimsThe company will promote the product through concentrated strategy by targeting Australia families. With the convenient lid, consumers can open and close the bottle easily. References Băcanu, B. (2015). Marketing strategy: the right place and the big problem. Bulletin Of The Transilvania University Of Brasov. Series V: Economic Sciences, 8(2), 11-18 Chuwiruch, N., Jhundra-Indra, P., & Boonlua, S. (2015). Marketing Innovation Strategy And Marketing Performance: A Conceptual Framework. Allied Academies International Conference: Proceedings Of The Academy Of Marketing Studies (AMS), 20(2), 82-93 Dent, J. (2008). Distribution Channels : Understanding and Managing Channels to Market. London: Kogan Page Garg, S. A., Singh, H., & De, K. K. (2016). Direct And Indirect Effects Of Marketing Mix Elements On Satisfaction. Academy Of Marketing Studies Journal, 20(1), 53-65. Jain, S. & Haley, G. (2009). Marketing planning and strategy. Mason, Ohio: Cengage Learning. Jocumsen, G. (2002). Marketing Strategies for Competitive Advantage20022Dennis Adcock. Marketing Strategies for Competitive Advantage . Chichester: Wiley 2000. viii + 406pp., ISBN: 04719 81699. European Journal Of Marketing, 36(1/2), 273-275. http://dx.doi.org/10.1108/ejm.2002.36.1_2.273.2 Kimpel, M., & Friedrich, C. (2015). The right pricing strategy for offline retailers when expanding into the online sales channel. Journal Of Business & Retail Management Research, 9(2), 54-67. Price List. (2016). Pepsi Products. Retrieved 8 September 2016, from http://pepsiproducts.weebly.com/price-list.html Pricing Strategy Of Coca Cola - The Final Projects. (2016). Sites.google.com. Retrieved 8 September 2016, from https://sites.google.com/site/thefinalprojects/home/project-on-beverage-industry/coca-cola/pricing-strategy-of-coca-cola Skarmeas, D., Zeriti, A., & Baltas, G. (2016). Relationship Value: Drivers and Outcomes in International Marketing Channels. Journal Of International Marketing, 24(1), 22-40. doi:10.1509/jim.15. Sueldo, M. (2016). The impact of integrated organizational communication on organizational sustainability. Management Of Organizations: Systematic Research, (75), 121-140. doi:10.7220/MOSR.2335.8750.2016.75.9 Appendix A Aloe and White grape Packaging Appendix B Appendix C Coca-Cola Products Pricing Pricing Strategy Of Coca Cola - The Final Projects. (2016). PepsiCo Product Pricing Price List. (2016). Pepsi Products. Read More