One of the most successful industries in the world market is the energy drink industry because if the right strategy is used, the business has a great chance to become successful.
The success is not only in terms of having smooth operations throughout the company, but also in the fact that in this industry, there is a very large margin for premium pricing if the company is able to develop a strong value with its customers. While this is a completely new product, which is being introduced, every precaution has been made in order to make sure that it will be successful.
The energy drink industry is highly competitive, and consumers are aware of this fact, thus making the industry complex. Companies operating in this business should enhance their customer services to avoid losing customers.
Mission statement. The mission is to provide a quality energy drink and create value for stakeholders. The main stakeholders are the Cleary University, employees, and customers. Creating value will be done by maintaining a significant amount of margins for the university activities and have a motivational compensation packages for the employees and a product that exceeds the customers’ expectations.
Marketing Goals and objectives
The main objective of this plan will be to deliver a product to the university student, faculty or support staff. To achieve this objective, we aim to:
Increase sales by 10% in the next 2 years;
Attain a growth rate of 15% in terms of revenue per annum in the next five years;
Produce the highest possible customer satisfaction;
Launch a product that serves the university with its environs, so it will enable the product to oust other one of a more popular brand than this one;
Let the organization have more than 3% of the market share in less than 12 months;
Reduce a loss of just under $6000 as per budget during the first year. It can be achieved due to extra expenses relating to the implementation of technology, one-time startup expenses and launching related marketing expenses.
Make the product be profitable even by the third year. This is because the competition is so high that some form of price incentives would be provided in order for the customers to be lured in to taking a chance with a new product.
The main target market for the new energy drink, cougar bite, is the university students, faculty staff, alumina, and the surrounding community. The following table shows segmentation of the target market
General StrategyThe general strategy adopted would be that of a differentiation strategy. This is because it would enable the product to stand out from the competition by way of providing product that will outstand in the market. The industry is expected to make the choice based on the quality, and that is where the concentration of all the business resources would be diverted.
Sought Needs and BenefitsThe two main needs that the customer wants to be fulfilled are the need to have a quality energy drink and make sure that they receive a product that comes up to their expectations. This would be achieved by sharing information relative to all the customer needs. This information would be gained by the technological infrastructure in place at the university. Another benefit would be that the organization indulges senior managers to be regularly in touch with the clients to know them and make sure that they are provided with the best product possible.
Product PositioningOur product is the best energy drink for the community because it cares of the customers’ health, so we use advanced management system and enterprise resource planning solutions for customers. Moreover, it has the most reliable and quality conscious staff that have local knowledge of the target market.
Market Size EstimateEstimating the total market size in terms of revenue, it would be roughly a $1.5 million industry.
Demographic ProfileThe primary target audience will include the entire population of the university and surrounding environment. Gender: Male and female. Age: 5-100. Occupation: all. Education: all levels. Geographic region: In and around the university region. The potential buyer’s usage rate should be on a higher side because only then, they will see the benefits of energy drink. The potential customer is in the position to acquire more knowledge about the product.
Psychographic ProfileThe segment that would be most appropriate for targeting would be the ‘wanting energy improvement’ segment. This is because they will consider the additional information that could be made available with the application of CRM and ERP for the benefit of customers. Here rational decisions making would lead them to seek our energy drink product.