Section 1: Marketing Plan and Sales Strategy
This report will describe the marketing plan as well as sales strategy of Araya Drink Company. This assessment will put discussions on the topics, such as target market analysis, demographic trend, competitive analysis and strategy, conveying company’s marketing message, and marketing vehicles to develop the high brand value as well as creating the strong customer loyalty. Finally, the marketing plan will be developed by using the MS excel worksheet template and business plan financial guide (Dibb and Simkin, 2008).
1a) Araya Drinks is a non-alcoholic beverage brand that produces the fruit drinks of different flavors, such as Araya soft drinks, Punch, Lemonades, and Mojito to different types of customers having diverse demographic backgrounds. It targets all types of customers based on the demographic segmentation having different needs, choices, preferences, and buying behaviors. It uses the demographic segmentation to divide the target market into specific customer groups based on the demographic characteristics including different age groups, gender, family background, income levels, education, ethnic groups, and buying behaviors. The targeting strategy of Araya Drinks is aimed at defining the target markets and identifying the target customers for its soft drink brands. It targets all categories of the demographic customers who like the non-alcoholic drinks. The main target of the company is youths aged between 18-30 having the great demand for the company’s non-alcoholic soft drinks or packed juice products (Drummond, Ensor, and Ashford, 2013). For example, Lemonade is Araya branded sugar-free soft drink that is designed to meet the needs and demands of the targeted customers of different age groups and demographic backgrounds.
1b) The company collects the demographic information of the targeted customers living in different countries from the customer Surveys, American FactFinder, and industry statistical analysis. It makes consistent changes in its market planning and strategy as per the customers’ feedbacks as well as after analyzing the needs, tastes and buying preferences of the targeted customer segment (Loudon and Wrenn, 2006). Along with this, it uses the demographic information for analyzing demographic trends in order to develop the local business partners as well as opening of new stores for ensuring the availability of its branded non-alcoholic drinks to the local customers from the nearby store of the area.
2.a) Araya Drinks is a new soft drink beverage brand that was established before five years in New York city, the USA. The company faces high completion from the established international brands, Coca-Cola, Pepsi, Juice Drinks, Red Bull, and Lucozade. The competitors create a stiff competition to the branding strategy of Softcone. The competition factors, like growing globalization issues, entry of new entrants, pricing and distribution strategy, differentiation, low costs, market development, and product expansion strategies of the competitors affect the market share, positioning, and brand value of Araya company (Kotler and Keller, 2009).
2.b) Coca Cola (Coke) and Pepsi are major soft drinks brand in the international soft drink markets having the high brand presence and large market share in the global soft drink industry. The wide varieties of the soft drink brands of Coke and Pepsi threaten the brand values and market development of Araya Drinks. In order to respond to this, an effective marketing strategy in the form the product differentiation, low pricing, and accessing to smaller niche marketing will be effective to compete with the major soft drink competitors (Ferrell, 2012). For example, Araya Drink will access smaller segments with the differentiated brand, like Lemonade to access the soft drink lovers in the smaller niche markets.
1 Target markets
2.c) The development of the competitive strategies, like product differentiation, cost leadership, and niche or focused strategies will be effective to defend the marketing plan of the company against the major soft drink brands. The product differentiation strategy will be targeted at differentiating the brand in the term of product quality, taste, flavors, and packaging for delivering added value to the customers. Along with this, the cost leadership strategy will be aimed at offering the soft drink products at low costs than the competitive soft drink brands. The economic pricing will assist in attracting the customers through low pricing products in comparison to higher prices of the competitive brands (Gilligan and Wilson, 2013). Additionally, launching the products in the niche markets or smaller market segments will assist to develop markets in these areas by acquiring the customers from these areas.
Araya Drinks is a non-alcoholic soft drink beverage company that offers the wide varieties of the soft drinks in different flavors. The promotional message strategy of Araya Drinks revolves around meeting the customer’ needs, wants, and expectations. The tagline of the media message of Araya Drinks will be ‘Stay Healthy and Strong’ that will be communicated with the targeted customers. The company uses the promotional campaigns, such as social media (Facebook, Twitter, YouTube, Instagram, LinkedIn), electronic media (digital advertising sites, TV channels) and print media (newspaper, magazines, pamphlets, brochures), and public relationship in order to create the high brand awareness and loyalty in the mindsets of the targeted customers. It also communicates the promotional message of the company to the targeted audiences.
The company will use Five F’s of the effective sales strategy for conveying the promotional message to the targeted customers. Rhonda’s 5F’s will be used to motivate the targeted customers to persuade for the significant purchase of the soft drinks by placing the right message to the targeted audiences (Tesar and Khuda, 2013). This strategic concept uses 5F’s for communicating the message of the company with the targeted customers instead of traditional marketing mix components, 4P’s. The 5F’s are Functions, Finances, Future, Feelings, and Freedom that are following discussed as:-
Functions- this element emphasizes how the product or service idea will meet the customers’ needs by offering them the specific products. This component will assist to ensure whether the company is getting done the specific things in the right way as well as communicate the message of the company to the right audiences of the targeted markets (Nijssen and Frambach, 2011).
Finances- this element will determine the financial position of the company, its profits, productivity, pricing policy that will influence the purchasing decisions and buying behaviors of the customers.
Freedom- this component will facilitate the autonomy, flexibility, and convenience to the customers in purchasing by giving liberty to the customers to purchase the non-alcoholic soft drinks items of Araya Branded. There should also be stores in the nearby location for ensuring the comfort and ease of the customers. Spending or giving more time to the customers in the store will affect the purchasing decisions of the customers.
2 Analyze the Company’s market competition
Feelings- the brand value, product quality, service level, and market positioning of the company will affect purchasing decisions of the customers. The respect to the salesman, response to the soft drinks brand of Araya, and perceptions of the customers about the company’s brand will affect the market position and brand reputation of the company (Rogers, 2011).
Future- the future planning of the company, product availability, impact of the company’s products and brand value, further strategies, increased sense of security and expansion plans are such future issues that should be considered while developing the future planning and strategy of the company.
Araya Drinks is an American soft drinks producing and supplying company that could use the effective marketing tactics to build the high brand value of the company. The marketing plan for Araya Drinks will include the effective sales tactics or promotional campaigns that the company will use to access the targeted customers of the potential market segment by creating the high brand awareness and customer loyalty in mindsets of the customers toward the branded soft drinks. The marketing plan for Araya Drinks will include the IMC tools (integrated marketing communications) that will comprise of several components, such as communication tools, integration tools, marketing tools, brand focus, consumer service quality (Evans, 2015).
The company will use the sales tactics, such as social media, electronic media advertising, print media publications, public relations. The company will use the social media networking site (Facebook, Twitter, LinkedIN, Pinterest, Google+) to place the digital advertisements of the samples on the sites as well as creating effective communication with the targeted customers of long distances. Additionally, the electronic media channels, such as digital website, TV channels, and brand ambassador could be used as effective advertising campaigns to create the high brand awareness. Along with this, the advertisement publications in the print media tools, like paper, magazines, brochures, and pamphlets will be aimed at targeting the large customer segments (CTI Reviews, 2016).
The Public relationship tools will also be important part of the IMC tools that could be used to enhance the brand identity and customer responsiveness of Araya Drinks branded non-alcoholic drinks by establishing good public relationships with the targeted customers. It can use the publicity tools, like sponsorship events, sampling at grocery stores, community activities, exbiting trade trade shops, and public affairs activities to implement the coordinated and persuasive brand communication campaigns for targeting the potential customers effectively. For example, the sampling at the grocery stores will enhance the sales volumes for its products by attracting the large number of customers from different cultural and geographical backgrounds for using the free sample offers of its soft drinks from the grocery stores (Abraham, 2003). In addition to this, the trade shows, seminars, and promotional events will be organized to invite the large number of the customers to attend these promotional programs in order to create the brand awareness among them. For example, Coca Cola is the leading international soft drink beverage brand that uses the sales tactics, like festive discount offers, free sampling offers, additional quantity schemes as well as slogans, like, ‘Open Happiness’, and ‘Taste the Feelings’ for attaining the customer awareness into its branded products.
3 Clarify the Company’s marketing message
Marketing Budget Worksheet will be prepared with the support of Business Plan Financial Guide and MS Excel template to estimate the amount incurred or expenditures costing into the marketing activities of the marketing plan for the time schedule of 6 months from 1 January 2018 to 30 June 2018. The marketing plan template will include the marketing expenditure or expenses on the creative advertising strategy and media vehicles/campaigns for achieving the set marketing objectives of the company. The marketing plan budget will include the costs on the social media sites (Facebook, Twitter, YouTube, LinkedIn, Yahoo, and Pinterest), digital advertisements through the digital posts and sampling, sponsorship programs, exhibitions of trade shows, promotional events, website promotion, seminars and publicity programs, print media sites (newspapers, hoardings, brochure, magazines, templates) and broadcasting on the TV channels and websites and public relationship programs (Hartline and Ferrell, 2012).
The marketing budget will account the estimated costs or expense of total of 5 million USD including 0.5 million USD in the social media, 1 million USD in the Print media publications, 1 million USD in TV channel advertisements and digital advertising sites, 0.5 million USD in website promotion, 1 million USD in public relationship programs, like events, seminars, and sponsorship programs, and 1 million USD in the professional assistance for the time duration of 6 months (Kapferer, 2008). The estimated budget allocation and schedules for the marketing budget is clear from the following MS Excel template-
From the above discussions, it is summarized that different marketing campaigns or advertising media sources were considered in the marketing budget by determining the estimated expenditures/costs into the marketing activities. Along with this, the target customers were identified by collecting the demographic information about them. Five F’s were used to convey or communicate the company’s promotional message to the targeted audiences. The marketing campaigns and sales tactics were used to develop the high brand value of Araya branded soft drinks. The competition level and competitive trends for Araya Drinks were identified along with the effective differentiation strategy to deal with the competitive factors effectively.
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