Services Marketing For Integrating Customer Focus – Report On Saffron Drink

Nature of Saffron Drink

The Marketing Plan tends to form an essential aspect of the product marketing strategy. In order to be successful in the long run, the business is required to ensure that it is successfully able to engage in the planning of the appropriate Segmentation, Targeting as well as Positioning techniques along with forming the appropriate Marketing mix elements (Armstrong et al. 2015). The primary aim of the given report is to highlight the marketing plan of the Saffron drink so that the firm is able to improve its image in the market and engage in larger sales which shall be beneficial for the firm in the long run.

One of the most sustainable offering of monster energy drinks is that it is following all the pollution decreasing rules such as reuse, reduce, and recycle with the use of their environment friendly serving cans which can be used again by the company through refilling of the drinks. Along with this the company also provides relief funds and raises funds to charity for social purposes as well. As a very renowned company Monster energy thinks that it should pay back to the community as well. For this they have implemented philanthropy according to which they fund for the health and sake of retired, active and sick or injured militants as well also they support the athletes community in terms of everything which shows its social and sustainable market offering that they provide through the marketing and profit of the product. They have also outreach many people globally providing support to the community of cancer patients or blood donation camps and providing relief funds to the people of the community as many times as they can. Also for the public safety and guidance they have established and funded many organizations such as mothers against drunk driving which supports people affected by drunk driving and also tries to prevent the incident from happening through communicating with people and driving them the message.

Nature – saffron is a spice derived from the flower of crocus sativus. It is a subcontinent of North Africa and North America and it needs about 20 to 30 degree temperature for growing up. Saffron powder has warm, bitter and paper-like flavour. However, it is used long terminal Ayurveda medicine. There is no clinical evidence required for the use of saffron for making evidence. 

Type- Saffron drink is an evergreen drink with no side effects which could be easily available in the market. It can be bought from any retailer shop or any departmental store.

Environmental Analysis

Value- Life’s value is not more important than anything. One should adapt a healthy lifestyle and eat and drink healthy. Saffron drink is way healthy than energy drinks. It should be consumed in the place of energy drinks because it has same benefits in a healthier way that an energy drink has yet in a negative way with a long term effect.

The environmental analysis of a company is of two types mostly the internal and the external which includes political, economic, social, technological, and environmental (PESTLE).These factors determine the roots of the business and maintenance of the company’s strengths and the strategy to fight its weaknesses.

Political – Monster energy started to develop it from the 1930’s from selling soda to now in which they mix up caffeine products into its drinks from which they had to face legal difficulties as well where many people wanted it to ban because of being very unhealthy. There has been no political issue in relation to Saffron.

Economic- Unlike other energy drinks monster drink was quite attractive to the customers as well through its cover designs printed on the cans even though it costs them extra they still want to look more attractive in the market. The economic factors are that they being the second most famous energy drink brand after red bull they have inflation rates, interest rates or foreign exchange rates which adversely affects the sale of the products they sells. Saffron drink rather than being fashionable has invested more money for putting healthy herbs in it which helps to make it a very healthy rated product.

Social- Monster drinks have contributed to many relief organizations for the sake of retired, injured or other militants as they respect the military and also for the prevention from accidents by providing organizations such as mothers against drunk driving for the safety of its community members. Saffron drinks has also helped many old age care people through public funding and also provides a particular shelter programme every year for the aboriginals of the country .

Technological -Technologically monster drinks are operated in many countries where they have different price policies and due to that the drinks are made trendier and for that they use specialized machineries for making new designs every time denoting some player or some sports as well. In the case of Saffron drinks it is using the latest technology which has the efficiency to produce a drink in comparison to other companies.

Environmental – It also supports the rule of controlling pollution as they apply the theory of 3R’s which is Reuse, Reduce and Recycle for which they use environmental friendly cans . Similarly Saffron drinks are available in bottles and cans as well in different quantities which are also following the anti-pollution policies and also Saffron drinks have made a policy that people if return the container of the drink then they would be offered back 50 cents which is helping a lot to get through pollution.

SWOT Analysis

Strengths: The saffron drink is health efficient as it contains herbs which is also working as an energy product on one hand and on the other it is beneficial from the health prospects. Its unique feature of containing saffron in a drink will be attracting a huge number of people who have the idea about the health benefits they get from this substance.

Weakness: Everything has a demerit so does this drink has such as if consumed in more amount than it can be dangerous if taken in more amount as more than required intake of saffron for a pregnant women can result in miscarriage due to extended uterus.

Opportunities: Being a new product in a market many people might think before consuming the product but in comparison to the price saffron drink has entered the market with various offers and a comparably cheap price when compared to the competitors which attract a lot of people.

Threat: As a new and innovative product, people would must also have some doubts in mind before consuming it as many people have their unique interests when it comes to a product so it would take some time for Saffron drinks to establish a strong goodwill in the market and for becoming the interest of others the consumers would have to change their taste and preferences which again is a difficult part. 

When customers search extensively for a particular item and are very reluctant to accept substitutes, that item is a specialty product” (Lamb, Hair & McDaniel 2015). The main market monster energy focuses on is its energy drink beverages even though it has many other products as well but its main source of revenue is generated from the market of energy drinks manufacturers. The target customers are more likely to be from a teenage to an office going mid manage ranging from 14- 40 which shows that it is most of the active populations as what people think is that there must be some energy in their body for various tasks they intend to do. And as an excuse they consume these beverages. If a customer wants to buy something or some product they want something to satisfy their needs and as an energy drink provides a person to perform the task with boosted up mind and body power. This drink is widespread across the globe just able to achieve extra profits from the target market and target customers. Even after knowing the health consequences people have made up a mind to consume these energy drinks.

Market and Customer Analysis

The target customers cannot be everyone as it is unsafe for children less than 14 to consume it, or pregnant women or breastfeeding women and also the high amount of caffeine even after the statutory warnings some of them still ignore the statutory warning also for cardiovascular patients it is not indented to be sold. Now, in case of Saffron drinks it is advised that it can be consumed by any age group rather than less than 5 years as naturally for them doctors consult to only provide mothers milk only and also for pregnant mothers as being a sexual stimulant when consumed during pregnancy it can extend the walls of the uterus and which can lead to miscarriage. Otherwise being a healthy product it has various positive benefits due to which large number of age grouped people can consume it in comparison to Monster energy drink. Which clearly states that being a safe product Saffron drink has large number of consumers in the present context.

Objectives assist the organization by providing them with specific goals which thereby go a long way in assisting the organization to achieve the desired results (Nasra & Rana 2011, p. 14). The following section will thereby lay down certain objectives for the brand Monster Drink which will then enable them to ensure that they are successful in the long run with respect to Saffron.

The financial objectives are as follows:

• To achieve a sales of $1 million in the first year
• To engage in a ROI of around 20 % in the first year.

The marketing objectives are as follows:

• To increase the market share of Monster Saffron Drinks by 20% in the chosen 1 year time frame.
• To ensure that maximum popularity of the brand is achieved in 1 year.

The stakeholder objectives of the firm are as follows:

• To take part in at least 5 sustainable programs in the first year
• To ensure that the waste is reduced considerably and is 2% of the total production.

The target market for the Saffron Monster Drinks are as follows:

The office professionals- The office professionals will be the secondary audience of the monster saffron drink as they have busy schedules and generally prefer to have energy drinks which keep them active throughout the day but are health conscious as well (Boyle 2012,p. 14).

Demographic: These professionals are general aged 25-40 and have an annual income of above $20000.

Psychographic: As the schedules of these professionals is very busy, they like to have products which will then provide them with health benefits and provide additional energy. They can be users of other brands.

School students- As the Saffron drink has various benefits, the school students can make extensive use of them

Demographics: These students may be aged 5-14.

Psychographics: As they undergo a busy life style these children can improve their health by using the given saffron drink.

The section based on marketing strategies highlights the tactics and the strategies which can be used in order to achieve the marketing objectives which have been laid down by the firm. The marketing strategy will be defied through marketing mix elements and the positioning strategy.

The Saffron drink is a go to drink at any time of the day. It provides instant energy and is healthy as well as affordable.

The positioning of any product can be rightfully defined as the image which the product aims to reflect in the minds of the consumers (Kotler 2015). It is an exercise which is carried out from the company`s side and aims to change its brand identity as well.

The Saffron drink is an effort from the side of the Monster Drink and has been provided as a sustainable offer with respect to the usual unhealthy drinks which the company offers. Hence, it is the aim of the organization is to position itself as a healthy drink which has absolutely no side effects and is fit for consumption for all individuals aged above 5. The brand wants to highlight that with the benefits of saffron, the drink is a sustainable option which can has no harmful impacts on the consumer (Titus 2000, p. 230). It is made from natural ingredients and thus, this is its key points against the competitors.

The product which is being offered to the target audience is the Saffron drink which is a sustainable offering being made by the Monster Drink Company. The drink is safe for consumption for all the age groups and thereby has no side effects. Profile of the sustainable offerings:

• Nature– The drink is made of saffron and widely available in North America as well as in North Africa. The drink will be provided in a liquid format and is considered to be very healthy (Lamb, Hair & McDaniel 2015).
• Type- The saffron drink is a consumer good which can be either be categorised as a convenience good or a speciality product.
• Value-The value of the drink is that it provides a healthy lifestyle to the individual and is much healthier than the other energy products which are widely available in the market.
• USP-the Unique Selling proposition of Saffron Drinks is that it is offered by the major brand Monster drinks which has a huge presence and is chemical free (McDaniel & Gates 2013).
• The packaging of the product will also be environmental friendly in nature which will be done using the safe Tetra pack covers, which can be recycled and are thereby eco-friendly. Moreover, the packaging will be orange in colour.

Pricing Strategy-The pricing strategy which will be set for the product will be based on the penetrating pricing strategy whereby the price of the product shall be set low initially and this will then be followed by an increase in the pricing regularly (McDonagh & Prothero 2014, p. 1190).

Pricing goals- The pricing will be sales oriented because at the initial stage, Monster Drinks wants its Saffron drink to be increasingly popular.

Forecast demand, costs and profits- The company has set an objective to achieve $1 million as sales and hence, as the cost of each drink is 3$, it can be easily estimated that the forecast will be around 250000 units. Moreover, on each drink the profit is $1, hence, the objective shall be achieved.

The placement strategy of an organization largely determines the manner in which the offering will be made to the consumer. Hence, the following options can be designated:

Channel structure: The channel structure used shall be direct as well as indirect. Monster drinks already has a wide channel which can be taken advantage of by the firm (Peacock et al. 2014, p. 65).

The distribution intensity will be intensive in nature and it will be distributed throughout all markets (Osterwalder et al. 2014).

The product shall be available in physical stores as well as to be sold in the online e-commerce websites for wider acceptance.

The target audience which has been selected for the given Saffron drink are all individuals aged above 5 and want to gain the experience of a healthy drink which is safe and consists of no such side effects (Wilson et al. 2016). These individuals can either be either belonging to a particular organization or can be in school or a college.

• The primary communication goal of the given marketing strategy is to persuade the customers in order to purchase the particular Saffron drink.
• Message design: The message design shall be customer focused in nature and will aim to highlight the benefits of the product to the different customers (Martelo Landroguez, Barroso Castro & Cepeda-Carrión 2013, p. 238).
• The promotion mix: The different mediums which shall be used for the organization are mediums like advertisement on television and social media channels, advertisement on newspapers, sales promotion in the different supermarkets, direct as well as digital marketing along with other mediums.

In order to ensure that the marketing plan is successful in the long run, Monster drinks would be required to ensure that it keeps a close evaluation and control on the chosen plan so that they are able to track whether their activities are going according to the designated action plans. Hence, the key performance indicators laid down with respect to the evaluation and the control of the plans are as follows:

Financial controls:

• Sales incurred
• Profitability
• Return on Investment

Marketing controls:

• Market share of the company with respect to the competitors
• The consumer behaviour with respect to the number of consumers acquired, loyalty leads generated and the consumers converted.
• The attitude of the consumer towards the organization will be measured with respect to the awareness of the brand or the perceived quality of the drink.

Environmental indicators:

• The environmental indicators are the carbon emissions, operational waste and consumer waste.

References

Armstrong, G., Kotler, P., Harker, M. & Brennan, R., 2015, marketing: an introduction. Pearson

Boyle, L 2012, ‘US girl,14, died from heart attack after just two cans of monster in fifth death linked energy drink’, Daily mail Australia, 23 October 2012, p. 14.

Kotler, P., 2015, Framework for marketing management. Pearson Education India.

Lamb, C, Hair, J & McDaniel, C 2015, Principles of marketing, Pearson Education, United States.

Martelo Landroguez, S., Barroso Castro, C. & Cepeda-Carrión, G., 2013, Developing an integrated vision of customer value. Journal of Services Marketing, 27(3), pp.234-244.

McDaniel, C. & Gates, R., 2013, Marketing research. Singapore.

McDonagh, P. & Prothero, A., 2014, Sustainability marketing research: Past, present and future. Journal of Marketing Management, 30(11-12), pp.1186-1219.

Nasra, A & Rana, E 2011, ‘Impact of an energy drink on the structure of stomach and pancreas of albino rat: can omega-3 provide a protection?’, PLoS ONE, vol. 11, no. 2, p. 14, viewed on 27 August 2018, doi: 10.1371/journal.pone.0149191

Osterwalder, A., Pigneur, Y., Bernarda, G. & Smith, A., 2014, Value proposition design: How to create products and services customers want. John Wiley & Sons.

Peacock, A, Bruno, R, Martin, F, & Carr, A., 2014, ‘Self-reported physiological and psychological side-effects of an acute alcohol and energy drink dose’, Appetite, vol. 76, pp. 60-65.

Titus, P 2000, ‘Marketing and the creative problem solving process’, Journal of marketing education, vol. 22, no. 3 pp. 225-335.

Wilson, A., Zeithaml, V., Bitner, M.J. & Gremler, D., 2016, Services marketing: Integrating customer focus across the firm. McGraw Hill.

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