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Executive Summary
The marketing plan comprises the marketing strategies for EXTRA energy drink Company Limited, located in Texas-USA. The companys mission and vision statement have been analyzed in the introduction sectionan overview of the external and internal environment of the company by analyzing the PESTEL and SWOT. Furthermore, a review of the marketing 4Ps of the marketing plan has been illustrated to show how the new company will be pricing, positioning, and promoting the drinks. The marketing plan and the financial forecasts indicate the flow of funds in the new energy drink company.
Background
EXTRA energy drink company limited is a new company which will be located in Texas-USA. The company will focus on the processing, packaging, and distribution of energy drink products to customers within the USA and the global world. The vision objective of EXTRA energy drink company limited is to be the leading company in the provision of superior services to customers in a highly efficient and profitable manner. The companys mission is to be committed to providing high-standard energy drinks to attain a large market share in the industry.
Marketing Objectives
Marketing strategies are established to be the leading company in the industry of operation. Firms adopt marketing strategies that align with their operations vision, mission, and objectives (Wood et al. 17). In this case, the main focus of EXTRA energy drink company is limited to being the leading and outstanding company that offers the best services that are profitable. Therefore, three major marketing goals necessitate the drafting of the marketing plan, that is, to establish the company as an expert in the manufacturing of the drink, to become an international firm, and development of a strong brand name. The management of the EXTRA energy drink company is focused on the manufacturing of Unique energy drinks products that satisfies the customers with respect to their energy desires. Manufacturing quality products and providing fantastic services to customers will propel EXTRA to navigate the global market, hence delivering energy drinks to other countries to attain a large market share. Furthermore, the major focus of marketing strategies is to attain a unique/ outstanding brand name for the company that will enhance competitiveness. The development of a unique brand image will enable the company to get a large number of potential customers from both the local and international markets.
Marketing Plan: Business Review
PESTEL Analysis
PESTEL factors are used to define the external environment of the company. The prosperity of an organization is affected by comprehensive forces which are based on the political, economic, legal, social, legal, technological, and environmental (Abdullah et al. 12). EXTRA energy drink company limited is not an exception to the external factors that affect the production, and distribution of the energy drink products in the market. The political environment of the industry is made up of strict government laws that restrict the distribution of products. As a result of the historical impact of energy drinks on human health, strict rules have been established to regulate the sector.
The economic issues affecting the energy drink industry show a rising and ever-increasing market. The sector exhibits a highly competitive environment based on the trends and customer needs (Abdullah et al. 14). As a result of a strong competitive environment, there is a high probability of customers opting to use substitutes when marketing strategies are not enticing. Another environmental factor that will affect the companys marketing plan is social factors. Customers consuming energy drinks have doubts concerning their health with respect to the energy drinks that they are using. An increase in the negative health publicity about the consumption of energy drinks becomes a challenge to the industries producing and manufacturing such products.
SWOT Analysis
Market Segmentation
Market segmentation involves the aspect of identifying common features among the customers in the market ad dividing them into groups based on the different needs possessed by the customers. When marketing the products, it is advisable to focus on the specific market segment with characteristics that meet the companys products (Dolnicar 5). Therefore, the profitability of EXTRA energy drink companies will increase when marketing is concentrated on specific submarkets. The targeted market segments are based on variables such as the potential customers age and geographic and demographic segmentation. Therefore, the various market segments for EXTRA energy drink companies comprise sportsmen and women, young adults and college-age students, and the elderly.
Sportsmen and Women Market Segment
Based on the market research conducted by the companys marketing team, it is predicted that the sports industry is increasing. The potential growth in the sports sector results to change in the lifestyle in the society, such as having an increased income and good health. From the market research findings, it is clear that the sports segment is in high demand for energy drinks for efficiency and productivity (Brown et al. 10). People participating in sporting activities need instant energy rejuvenation to improve their performance. Therefore, targeting this market segment will generate more profits for the company.
Young adults and College-age Students
The marketing team for EXTRA energy drink company limited identified young adults and college-age students as one of the market segments for energy drink products. Young people need a lot of energy to do physical and mental activities. Energy drinks act as supplements for reenergizing young adults. College students participate in activities such as dancing crews which require energy. EXTRA energy drink company will avail products that satisfy the energy demand of such students.
The Elderly
Another target market for energy drinks is elderly consumers in society. The market research shows that elderly individuals lack certain nutrients and minerals in their bodies which energy drinks can supplement. This market segment requires a high rate of metabolism in their bodies which relies on energy. Therefore, availing energy drinks to the elders will satisfy the energy requirements in their bodies.
Marketing Strategy/Market Mix
The establishment of the marketing strategy is essential for a company that is in operation. The going concern of an organization relies on the marketing techniques used to execute the products to the customers. The 4 Ps of the marketing mix, product, price, positioning/place, and promotion, play a vital role when drafting the selling strategy. Effective analysis and execution of the 4 Ps of marketing will help the company attain a competitive advantage in the market (Rajath and Santhoshkumar 5). The marketing strategy for EXTRA energy company limited can is analyzed to help budget and execute the market plan.
Product
Product analysis is an essential marketing strategy that needs to be taken keen by the company. An organizations primary objective is to provide quality products to customers, which facilitates the running of the business (Wang 7). The marketing team needs to concentrate on producing quality and unique products, outstanding packaging, and fluent labeling. The energy drinks produced by EXTRA energy drink company limited are of good quality as the company has considered the aspect of value addition in the final product. Involving experts in the production process will help the company avail products that satisfy customers needs hence gaining a competitive advantage.
Price
Pricing strategy is important when marketing as it will determine the number of customers purchasing the product. When pricing, it is essential for the marketing team to analyze competitors prices (Rajath and Santhoshkumar 8). Therefore, the prices of other rivals, such as Red Bull, must be considered for the company to gain a large market share. Since the company is starting, the prices will be set lower than the competitors to attract more customers and gain business momentum. Pricing will also be affected by the cost of producing the drinks. Since most of the raw materials are found locally, there will be no need for overpricing.
Positioning/Place/Distribution Channel
Position as one of the marketing strategies comprises the place where the product will be available for the market and the distribution channel. Product position plays a crucial role in gaining a competitive advantage (Wang 16). An effective product position acts as a competitive shield in the market by attracting many customers. EXTRA energy drink products at the main stores in Texas and real shops in different states of the USA. The company has also incorporated with global distribution companies such as Amazon to help in distributing the energy drinks in different parts of the world hence serving the global market.
Promotion
Product promotion involves strategies that help the company to publicize its operations. When marketing, investing in this strategy helps make the product known to a large segment of customers, leading to an increase in sales. EXTRA energy drink company will incorporate advertisements and sales promotion as major product promotion tools. Advertisements shall involve banners, signboards, internet/ social networking, brochures, and business cards. Sales promotions entail customer open day by giving gifts to the first ten customers and providing discounts to customers.
Competition Analysis: Strengths and Weaknesses
There are several competitors in the industry producing energy drink products. Rivals that offer similar products like EXTRA energy drink company limited comprise red bull, monster beverage corp., and rockstar Inc. The competitors offer products that customers can use as substitutes or alternatives. Therefore, it is fundamental to analyze and evaluate the strengths and weaknesses of competitors when formulating a marketing plan. The rivals weaknesses should be used as an opportunity to provide better products and services.
Competitors Strengths and Weaknesses
Financial Forecast/ Budgeting
The marketing budget s forecasted and drafted to facilitate communication within the company. The financial forecasts will focus on expenditures incurred on advertising and promoting energy drink products. The expenses will be classified into fixed such as billboards and variable; brochures, business cards, fliers, teardrops, and salaries to the marketing team. The marketing budget for the first financial year is presented in figure 1 below.
Works Cited
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Brown, Natalie, et al. Elite Female Athletes Experiences and Perceptions of the Menstrual Cycle on Training and Sport Performance. Scandinavian Journal of Medicine & Science in Sports, vol. 31, no. 1, 2020, pp. 5269.
Dolnicar, Sara. Management for Professionals Market Segmentation Analysis Understanding It, Doing It, and Making It Useful. 2018, Web.
Rajath, K., and N. Santhoshkumar. Effectiveness of Marketing Strategy of Neera Health Drink with Reference to the 4ps Of Marketing. International Journal of 360 Management Review, vol. 07, 2020, pp. 23207132, Web.
Wang, Haoyang. Understanding the Marketing Strategies: 4 Ps Marketing Mix or Other Strategies Used by Tencent Games in the Video Game Market. Www.atlantis-Press.com, Atlantis Press, 2022, pp. 99104.
Wood, Benjamin, et al. Market Strategies Used by Processed Food Manufacturers to Increase and Consolidate Their Power: A Systematic Review and Document Analysis. Globalization and Health, vol. 17, no. 1, 2021, Web.
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