Target market of the company
The following paper is about determining the marketing plan and a sales strategy for the non alcoholic beverages company who have started their business very recently just six months back. It is very important to develop a proper marketing strategy so that they can compete with their local competitors in the local market. As they are the newcomers in the beverages industry they have to work within the local market before they expand in the bigger markets. They should not try to target the bigger companies as the threats to their survival but they should try to capture the local market before their expansion. They should be looking to work within the radius of at least sixty miles from where their organization is located.
The target market for the company depends on the people who will be buying their products. For that, the company must assess the local market and the people who live nearby. Many factors have to be kept in mind in order to assess the local market (Armstrong et al., 2015). The factors are the education level, income, gender, ethnic groups and many other factors. The non alcoholic beverages are mainly the buying products of middle class. This is only because the middle class people are rising in the society. A certain income rate among them has worked as the driver for the growth of the non-alcoholic beverage industry (Ni Mhurchu et al., 2013). The market is emerging so there are enough scopes to have a good run of business. A very encouraging data for the this industry is that the market intelligence Euromonitor International has said that the total number of the middle class people will rise a lot from the present time.
The education level of the people who can be the targets of the company can be at least graduates. In some cases, the people with a lower education can also be the target audience of the company. According to the society standards, the middle class families could be the main target audiences of the company as the pricing of the bottles of the beverages and the drinks is not within the buying capacity of the people with lower incomes. The age group is a crucial factor as the students will be the target people. This is because they are attracted towards these things as they come to know about it from their friends. The parents of those students can also be potential target audiences for the company (Kemp, 2013).
As per the Hispanic groups are concerned, it is a wide community in the United States and include people of different origin countries like Cuba, Mexico, Puerto Rico, South or Central America (Kaplan et al., 2014). Other people from other origins like Spanish are also considered under the Hispanic community. The statistics reveal that Hispanics will be increase and their buying power will be up to at least $ 1.5 trillion by 2015. This will be a huge rise from the amount of 2010. The people who were born between the years 1981 and 1986 are considered to be ‘millenials’ and they represent a 24% of the US population (Ng, Lyons & Schweitzer, 2012). This is an extremely encouraging fact because they are more aware about the latest technologies and the use social media. They have a better understanding of the product awareness. The teen population in the country can also be counted as one of the main demographics for the industry.
- a) It is a known and notable fact that the soft-drink industry has been dominated by Coke and Pepsi for ages now. The market competition is very high for the company as the rise and growth of this industry is fast and smooth in assessing the entire market (Cheng, Man & Yi, 2013). The need for a proper marketing can increase the number of customers in a big way. The big names in the industry like Monster Beverage Corporation and Dr. Pepper Snapple Group have focused on maintain proper marketing strategies for a long time.
Market competition
The most important branding strategies to have a firm hold on the industry needs to put much stress on the advertising and branding of the products (Baker, 2014). The competitors for this company are mainly Coca Cola and Pepsi. They have dominated the market for so long as they have many brands under their belt. Other companies that can be considered as competitors for them are Sprite, Fanta, Tropicana, Red Bull, Diet Coke, Nescafe and some others. They have to overcome the challenges posed by their competitors.
- b)The strategy that has to be used in this segment is to make a proper branding of the products and then advertising it (Parente & Strausbaugh-Hutchinson, 2014). The main qualities of the product will have to be upheld by the company. The sugar percentage, the calcium and energy nutrients’ percentage have to be shown in the packed bottles so that the customers feel the urge to buy them. Before that, the products should be advertised in the local newspapers, television channels. They can open a Face book community for advertising purposes as well. They have to create new market categories keeping in mind the needs for their target audiences and key demographics.
- c)The company must not aim to compete against the companies like Pepsi and Coca Cola because they would not be able to match with them (Kleiman, Ng & Popkin, 2012).They certainly have to depend on their own demographic audience and their niche markets. As the industry does not have such threats from the new market entrants, they must focus on capitalizing on their own strategies by branding their products and advertising them.
Strengths
- They have a good range of availability of clients.
- Their distribution channel is quite stable (Grant, 2016).
- Their products are superior in quality than niche market competitors.
Weaknesses
- Their financial strength is not so much depending on the country’s total economy.
- The authority or the management is not enough experienced (Bossert, 2013).
- The equipments they use are not top class at all.
Opportunities
- They can aim to produce health drinks among all the target audience people. This will help them to circulate their products in a wider circle.
- After a good run of business in the local market, they can enter the global market as well.
Threats
- The market competition is very high.
- They are not using the latest technology for their production yet.
The company wants to give the message to the potential target markets of theirs is to provide the customers and other stakeholders a proper healthy drink that they can take in after or before exercise. This product is made with a low sugar quantity and ensures the good health of the customers. They are ready to offer suitable business environment to its stakeholders and customers (Craig & Campbell, 2012).
There are many options for choosing proper marketing vehicles for the company. One of the most important vehicles that can be very effective for the company is the online marketing mode (Erdo?mu? & Cicek, 2012). They can advertise their products through various social media platforms and online marketing apps. They can also sell their products in grocery stores after a good branding of the product. The sales of the product should be done in such a way that the products should get a good promotion. The sellers and resellers need to provide real and authentic product information to the customers in real time. In these ways, the health drink provided by NAB Company will get more sales percentage and overcome the challenges (Ingram et al., 2012).
Conclusion
The paper can be concluded by saying that NAB Company has to assess the real time local market to grow a good reputation. This will improve their sales and give them a better position in the market. The need to focus on the demographics of the region they will be doing their business is immense. It is indeed useful to think about the useful market strategies after understanding the market competition in the industry. They can use marketing vehicles so that they get the competitive advantage over their rivals. They have to strengthen their weaknesses and utilize their opportunities for a sustainable future.
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.
Bossert, S. T. (2013). 8. Instructional management. World Yearbook of Education 1986: The Management of Schools, 112.
Cheng, P., Man, P., & Yi, C. H. (2013). The impact of product market competition on earnings quality. Accounting & Finance, 53(1), 137-162.
Craig, T., & Campbell, D. (2012). Organisations and the business environment. Routledge.
Erdo?mu?, ?. E., & Cicek, M. (2012). The impact of social media marketing on brand loyalty. Procedia-Social and Behavioral Sciences, 58, 1353-1360.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker Jr, C. H., & Williams, M. R. (2012). Sales management: Analysis and decision making. ME Sharpe.
Kaplan, R. C., Bangdiwala, S. I., Barnhart, J. M., Castañeda, S. F., Gellman, M. D., Lee, D. J., … & Giachello, A. L. (2014). Smoking among US Hispanic/Latino adults: the Hispanic community health study/study of Latinos. American journal of preventive medicine, 46(5), 496-506.
Kemp, S. E. (2013). Consumers as part of food and beverage industry innovation. Open innovation in the food and beverage industry, 109-138.
Kleiman, S., Ng, S. W., & Popkin, B. (2012). Drinking to our health: can beverage companies cut calories while maintaining profits?. Obesity Reviews, 13(3), 258-274.
Ng, E., Lyons, S. T., & Schweitzer, L. (Eds.). (2012). Managing the new workforce: International perspectives on the millennial generation. Edward Elgar Publishing.
Ni Mhurchu, C., Vandevijvere, S., Waterlander, W., Thornton, L. E., Kelly, B., Cameron, A. J., … & Swinburn, B. (2013). Monitoring the availability of healthy and unhealthy foods and non?alcoholic beverages in community and consumer retail food environments globally. obesity reviews, 14(S1), 108-119.
Parente, D., & Strausbaugh-Hutchinson, K. (2014). Advertising campaign strategy: A guide to marketing communication plans. Cengage Learning.
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