Major Segments of the Soft Drink Product - Research Paper Example

?Marketing 23rd May Task Psychographic factors which can be used to segment the market Someof the major psychographic aspects that will determine the consumption of the new product behavior include opinion and interests, level of loyalty and occasions. Brand consciousness Consumers significantly purchase their products based on their view of the level of fashion possessed by the products. This implies that as marketers we need to notice the changes on demand of our products due to the relationship of the consumers and the brands. Average consumers Another attribute that I would use to segment the market is by the level of the consumption by the consumers. Most particularly I would focus at needs of the teenagers who are key part that forms average consumers. In this regard, I will undertake an intensive advertisement especially via the social sites such as face book and twitter in order to capture the attention of the average consumers. Benefits One of the key aspects that I would consider in the product segmentation is the benefits provided by the product. TM new products will create a strong positive relationship with our consumers thus enhancing the sales and profitability of the company. Additionally, the new product will be a favorite brand for young people in colleges especially during social occasions. Usage Based on the usage of the brands, consumers of the soft drink can be classified into light, medium and heavy consumers. Task 2. Major segments of the soft drink product Based on the psychographic aspects described in task 1, this section identifies key segments that I will focus at in order to maximize the sales and the consumption of the TM new product. Fashionable brand conscious customers This is one of the major soft drink segments that include young people in colleges and universities. The consumers in this category are mostly in their twenties and their interests include dance clubs, parties and social events. They buy soft drinks that portray good image and depicts coolness. In this regard, TM new products will portray a coolness and positive image that will attract the attention of young consumers and brand conscious customers. Average consumers As discussed in the previous section, soft drink consumers can be categorized as light, medium and heavy consumers. Average consumers are mostly pressurized to buy due to advertisement and intensive promotions. The major group under this category is the teenagers. Additionally, this group of consumers looks for quality and the ingredients that make up the brands that are useful in making them strong and energetic. In this regard, I will undertake an intensive advertisement especially via the social sites such as face book and twitter in order to capture the attention of the average consumers. Benefits As mentioned earlier, consumers are attracted by products that offer them maximum benefits. By ensuring that TM new product is effectively packaged and that customers will easily carry the products, a positive product-brand relationship will improve the profitability and the sales of the company. To ensure that our consumers are aware of the benefits of the new product, an extensive advertisement and adequate training of new and existing consumers will be carried out. Usage The new product will be directed to average consumers. This is based on the fact that by ensuring the loyalty of the average consumers, the product will be highly demanded when the average consumers changes to heavy consumers. Task 3. Profile of each of the major segments Market segment Profile Fashionable brand conscious customers The new products needs to look attractive thus attracting the attention of the young consumers. Additionally, it will portray a feeling of coolness. Average consumers Consumers are teenagers who will be attracted by advertisement and promotions through social media including face book and twitter. More advertisement will be conducted before evening prime news in major TV channels. Benefits Consumers are attracted by the benefits of the products that are properly packaged. This calls for extensive promotion and training of consumers to make them aware of the benefits offered by the products. Usage It is easier to attain the loyalty of average consumers through creating a product that meets their needs. It therefore vital to undertake promotional strategies and advertisement through social sites such as face book and twitter. Task 4. Target segment Average consumers Due to the high demand for soft drinks by young people, my target market is the average consumers. It is important to note that even though customers learning and pressure by other people makes them to buy products, majority of them depends on their loyalty towards the products and the benefits they derive from the brands. One of the major aspects that make Coca-Cola to enjoy increased sales and sustainable profits is the high demand of its products by the average consumers. For example, in 2011 more that 45 gallons of Coca-Cola products were consumed in US. This indicates the market of average consumers is still not exploited especially in the developing countries. In this regard, the company will have an ample opportunity to maximize its sales and increase on its profits by targeting the average consumers. Based on the fact that most of the average consumers of soft drinks are pressurized to purchase the products due to advertisements and promotions, TM Company will need to increase it’s financial and resources to ensure extensive promotion of its new brand. Task 5.Profile of the target market A typical purchaser in the average consumer market is mostly a young person within the age bracket of 15-27 years. Based on the fact that individuals within this age bracket are involved in wide range of economic activities and various sports, they need a lot of energy to be productive. In this respect, they prefer taking soft drinks rather than water. Even though female purchasers within the average consumers market buy a significant percentage of tasty brands, male consumers purchases large amount of soft drinks brands. This is due to the high demand of energy that male consumers need based on the daily physical activities they engage in. Based on the fact that soft drinks are available in almost all stores in the world, typical purchasers are located anywhere. Effective distribution of the brand is therefore vital to ensure customer can easily access the products. As mentioned earlier, average consumers are attracted by advertisement and promotion undertaken by soft drinks companies. A typical buyer will therefore have a positive attitude towards TM Company new brand if an extensive advertisement is undertaken via the television on though billboards. In the same way, most of the young consumers engage in social events that include disco parties, sports and birthdays. It is during such events that the company should undertake promotional and advertisement strategies. Task 6. Positioning the product The positioning statement of IceCool the new TM brand will be “has no equal makes us equal”. This implies that the product is not equal to any other brand but makes our consumers to be equal. In order to distinguish the new product from those of the competitors, I will emulate intensive advertisement that will ensure customers have strong products awareness that will lead to repeated purchases. Similarly, I will establish a strong marketing mix that will ensure the products are easily recognized by the consumers. For example, the company will package its products in recyclable plastic cans. With such a simple brand name, most of the consumers will easily identify the product in addition to easily memorizing the brand name without much assistance from the sales executives. Likewise, the company will keep on undertaking market research to identify the implications of its brands on the consumer market (Spiro et al, 2008). In this way, the company will effectively penetrate the existing soft drink market that is characterized by large number of brands and stiff competition. In order to enhance the demand of IceCool, the company will emulate effective distribution strategies that will bring the products near to the consumers. Additionally, the company will place its brands in all the big stores such as Wal-Mart, Tesco among others. In this way, the company will effectively compete with other brands that have placed their products on the shelves of the big supermarkets. The diagram below indicates the positioning map showing the position that the brand if focused at attaining. High quality Low volume High volume Low quality From the positioning map above it is clear that IceCool (IC) is aimed at attracting new customers who are loyal by its quality in order to increase its sales volume during its introduction into the market. It is important to note that soft drink customers especially in the average consumers market are not influenced by the prices by the quality and the benefits that they derive from the brands. Task 7.Positioning strategy that I recommend for the IceCool product, advantages and disadvantages of the product as well as the plan to differentiate the product. In the soft drink industry, companies have adopted various strategies with an aim of acquiring large market segment and achieve increased sales and profits. In addition, various firms emulate different strategy as counteracts of the actions taken by the competitors (Allen, 1982). With a major goal of expanding its market segment and providing quality brand to average consumers, I recommend IceCool product to adopt real or perceived benefits positioning strategy. Real benefits stands for tangible factors that will make consumers prefer the new products as compared to other brands. In this regard, IceCool will ensure real benefits by providing simple and easy to carry packets to its consumers. On the other hand, perceived benefits are intangible factors that enhance customer awareness, brand loyalty and trust (Kotler and Kevin, 2006). On its part, IceCool is focused at providing quality brands that is rich in energy and vitamins that are highly demanded by average consumers especially the one interested in sports and other social activities. Additionally, IceCool provides a cooling effect once it is taken by the consumers thus making it the best soft drink brand for young footballers and athletes since it reduces their body temperatures and enhances their performance during national and international competitions. One of the key advantages of IceCool is that even though it targets average consumers, it can be consumed by all other customers regardless of their age, sex, cultural background or financial position (Gupta and Donald, 2005). This is based on its reduced fat contents and cooling effect that makes it more useful especially during hot weather conditions. In addition, since the brand is new consumers who are eager to try new brands to compare them with others, will highly demand IceCool making the company to generate high sales during its initial marketing. Even though the new brand will benefit from high demand and strong customer loyalty, IceCool will face stiff competition from the established competitors such as Coca-Cola and Pepsi. It is essential to note that due to the extensive research and development that the competitors have put in place, the rate at which they introduce new brands is high. As a result, IceCool brands will need an extensive and expensive promotional strategy to face off their competitors. Another disadvantage of the new brand is that it is not well known by soft drink consumers thus the company will need to use a lot of financial and human resources to enhance its awareness an aspect that would negatively affect the company profits. Conclusion Based on the above discussion, it is clear that for a new product to thrive in a competitive market, it is imperative for marketers to undertake an intensive research to identify a gap in the market. In this way, they will provide a quality product that meets the needs of their consumers. The major technique of identifying a gap in the market is by use of positioning map. Just like the differentiation strategy that IceCool adopts to put at bay its competitors, it is essential for companies to research on the best differentiation strategy that will put their products at a competitive position. References Allen E. 1982. Marx and justice: the radical critique of liberalism. New York: Taylor & Francis. Gupta, L and Donald R. 2005. Managing Customers as Investments: The Strategic Value of Customers in the Long Run. Upper Saddle River, NJ: Pearson Education/Wharton School Publishing. Kotler, P and Kevin K 2006. Marketing Management. New York: Prentice Hall. Spiro, L., Rich, G. & Stanton, J. 2008. Management of a sales force. Boston: McGraw: Hill.Irwin. Read More