BERVET: Introduction, Market Segmentation, and Product Positioning - Term Paper Example

? Company Introduction, Market Segmentation and Positioning Company History Our company’s is BERVET. It is a beer company with a famous logo that makes distinct in Africa. The history of BERVET can be traced back in 2000, when a fellow scientist helped to invent the company. The first beer was sold at a lodge located near the company back in 7th May, 2000. The sales during the first year amounted to a total 40 dollars as about 4 servings of beer were sold every single day. About 60 dollars were used in the expansion process meaning that the company operated for losses during the first year. By the year 2006, the company has become amongst the most popular beer company in the African region (Smit, 2009). This was as a result of aggressive marketing of the beer by the company. This implied that advertising was exceedingly an essential factor for the success of the product. In fact, by the end of 2008, the beer was sold across the whole continent. Up to around 2010, most of the big cities and small town dwellers loved the beer at the bars and lodges. Frequently, joined by competitive alcoholic drinks, the beer has decreased in popularity. Currently, the company’s products are consumed at one billion beers rate per each single day. The company headquarter is located in Lusaka, in Zambia. It is a large firm and has many facilities and structures in different regions across the world. In addition, our company operates in seven nations, specifically in the northwest. The BERVET Company owns three manufacturing facilities with more than twenty five sales locations. The firm is the largest beer company in the northwest region of Africa. The company offers a wide range of beer brands and services that makes it attractive to its customers. Some of the known brands include kegi, chura, and kiboko among many others. The company has several foundations and programs to assist in various services. For instance, the company has partnered with an LGC company which is an NGO to offer health services. We also support various corporate initiatives that empower girls and women around the region through economic support. We are also focused on providing services on sanitation and water to people who cannot access them. Vision The company is committed to continual renewal so that individuals, organizational structure, facilities, products, systems and our partnership remain dynamic. Mission statement BERVET produces high quality; alcoholic products with a vision of becoming the leading company in Africa by 2015. We are focusing on maintaining our customers as an asset in expansion mission of the company. We are, therefore, committed to winning our customers loyalty to BERVET products forever. Market target BERVET targets the European market. The market segment for our company includes retailers, wholesalers, the private sector, the government and the individual customers. The company target customers by having specific lines in Europe. We expect our sales to be exceedingly high bearing in mind the variety and quality of our beer that we offer. This is because BERVET plans on reducing prices and opening more outlets for the drink in the region. We are targeting the big restraunts, bars, and lodges. However, there are some essential economic factors that will affect our products that include taxes, economic trends, and the rising energy prices. The legal factors include legislation and regulations on the operations of the business and government initiatives. Also, control from the government might affect the operations of the business. Environmental factors might also affect the market, but some are uncontrollable like natural disasters and calamities such as fire, earthquakes, and floods. Having identified the market and the factors that might affect these will help in proper planning for strategies like price, promotion and distribution. We must come up with pricing strategies that will aid in profit maximization, current revenue maximization, and maximization of quantity, quality, and profit margin, quality leadership, status quo, partial cost recovery, and survival(Smit, 2009). Offering discounts to our customers will encourage them to buy our products more. We must also ensure that the BERVET logo is one of the most recognizable symbols within the market. Through advertising and personal selling we will be able to meet our promotion strategy. Extensive adverts on televisions, internet, and magazines will help us reach more customers in the region. Young and knowledgeable sales representatives trained both in customer services and product information will perform the task of promoting the company’s product in the European market. BERVET contract with a shipping company will aid distributing the product to Europe. However, there is the need to have independent and destination stores located within the major cities of the continent. This will help to distribute the beer to the targeted customers. Market Segmentation The company has a strategic market segmentation that is meant at meeting the need of its distinct customers across the world. The company has developed more than 200 product lines. BERVET performs market segmentation with an aim of satisfying the needs of the customers based on distinct age groups, sexes, ethnic groups, and lifestyles. Geographic segmentation is carried out to meet the needs of the customers located at different areas and during certain seasons. Demographic segmentation targets the gender, age, and income earners and psychographics segmentation at the persons who are brand conscious. Target market Segment strategy This focuses on markets need. BERVET aims at meeting the fundamental needs of its customers through the provision of goods and services that are of high quality. A person wants beer not to quench their thirst, but to enjoy the benefit associated with it. This is the major focus for the company on providing quality products in the market. Market Trends The market trend keeps on changing, and BERVET adapts it. In order to maintain position in the business, a company has to keep up with the markets trends. They include political problems, demand and supply, economic and social factors and others like expectations. As a result, the company applies the existing technology in the industry and updates it whenever a need arises to ensure smooth running of operations (Smit, 2009). Market Growth The company has achieved significant growth and expansion in the market and industry since its development. The company has expanded to several nations within the region. It has gained customers loyalty benefiting the company’s performance and profits. The company earnings encourages developments aimed at achieving the company’s vision 2015 goals and objectives SWOT Analysis. Strengths Easy access to raw materials minimising operation costs. Technologically advanced product distribution systems. The Superior quality of the company’s products has made it easy to market them anywhere in the continent. High Consumer satisfaction has made the company retain its customers and attract new ones. Wide customer base across the African region that has boosted the company’s sales. Reliable management staffs have provided all the necessary skills and expertise making the company an enviable one. Weaknesses Limited marketing expertise in the company has proved to be a challenge when it comes to marketing of the product. Low advertising visibility which has resulted in low sales over the years High price of the beer in comparison to the other available drinks in the market. Opportunities Sharp increase in demand for beer in the region offering a potential market base. Increasing market awareness for branded beer that could mean higher sales. Threats The emergence of new players may attract stiff competition in the market. The market may become price sensitive. Scarcity of water bearing in mind the huge amounts required during the production process Changes in tastes and preferences of consumers Increase in dollar Competition from other big companies within the region. Decreasing margins of the net profit and gross profit Legal and regulatory requirements to reveal negative information concerning product labels. High cost of production in case the new technology is embraced. Changes in customer brands taste may reduce the sales volumes. Marketing strategy The local marketing strategy of the firm is to listen to all voices of customers across all tastes and occasions. The company believes that the different taste and preferences of customers defines who they are, where they work, relax, and how they live (Smit, 2007). The company also aims at helping the society across the region in terms of education, health, and their wellness. This will help to improve their lives through different operations. Market positioning The company offers a range of alcoholic drinks including beers, wines, non sugar beers, and low content alcohol beer. Additionally, it offers the drinks at different bottle sizes. They include disposable bottles, litter returnable bottle, tins, and plastic bottles. The products are also available in different packaging. Conclusion and Recommendations The company’s marketing plan aims at providing the best to its customers in terms of quantity, quality, and pricing. With a good execution of the laid down plan, adopting it will benefit not only the society but also the company. The company’s operation intends to run for future. References Smit, P. J. (2009). Strategic planning: Readings. Kenwyn, South Africa: Juta Smit, P. J. (2007). Management principles: A contemporary edition for Africa. Cape Town, South Africa: Juta Read More