Unique Beverage Marketing and Distribution - Essay Example

UNIQUE BEVERAGE MARKETING AND DISTRIBUTION The paper entails ways through which a beverage company or organization through the management can correctly identify opportunities and threats to their product and comprehend all the required aspects in the marketing environment that the product operate. Today the beverages market has a lot of competition with companies such as coca cola and monster leading hence one must be up to per with the trends in the field so as to survive and put into action strategies that will make them stand out from the rest of the competition. Significantly, in order for a starting beverage company to excel and develop they are required to boost their beverage sales hence calling out for a unique sales and marketing game plan that involves selling to retailers, distributors and ultimately the end consumer. Annually, there are hundreds of new beverages that are introduced into the market though only a few are successful at gaining distribution and convincing customers to finally purchase their product; unfortunately, one can have the best tasting beverage in the world and if people dont know about it and cant purchase it, then their new beverage will definitely fail. Basically, for a beverage like Unique building distribution can be extremely hard-hitting especially if the management is not aware of how to navigate the competitive beverage industry; for starters, one needs to know how to get their product to the market, how to choose the right distributors, retail channels and also how to persuade retailers to carry their product. As new beverage, it would be the biggest mistake if it was sold just to any distributor or placed in the wrong retail channels; therefore, the company plans on getting a distributor that will frequently visit their accounts and can make sure that the product is on the shelf with the correct pricing and sales promotions. Introduction Unique Beverage Company looks forward to being among the best as soon as possible and so as a foundation for this the best channel to build its brand awareness and get consumers to try out its beverage through the use of the variety and selection of C-stores in the country. Frequently, consumers visit these stores to purchase cold single beverages more than any other retail channel; moreover, this will be the first step of building a great sales story (Joseph 2005). Additionally, it is essential that the company executes successful sales promotions that will drive sales, offer valuable incentives to motivate distributor sales representatives and retailers to promote the unique beverage, and strategically gain floor, shelf and cooler space for it that will create impulse purchase boosting the overall sales. Direct Versus Indirect Distribution Channels Usually a company that employs direct marketing is directly trying to impact the consumer’s buying decisions using promotional strategies such as direct mail, telemarketing, direct response, television advertising and online selling. On the other hand, indirect marketers try to make sales through the use of blogs, videos or e-books though manufacturers use this when selling through wholesalers or other channels but not directly to consumers (Balakrishnan 2006). All the same, both distribution channels have their merits and demerits even though most of the well established companies go for both the direct and indirect marketing channel. When it comes to indirect marketing one does not have to give any pushy sale pitches hence customers do not become tired of them and as a result one gets to establish long term relationships with customers and one will eventually discover what their consumers really want and need in the company. Through knowledge of the consumers, indirect marketing distribution creates better platforms for best consumer services and inventory to meet those needs; moreover, indirect methods are often expensive since one can always set up social sites’ accounts at no cost. As for direct marketing it is easier to measure results from methods such as sales letters, one can track how well their campaign is doing since consumers will typically only contact them if they are really interested; moreover, this method is known to lead to faster sales if done in a targeted fashion and using information gathered while doing the indirect marketing (Joseph 2005). Commonly, direct marketing is faster than indirect marketing which takes quite a while to gain the trust of consumers; by and large, direct marketing is designed to give one almost immediate results hence making it fit for businesses that need immediate sales. Conventional, Vertical, Horizontal and Multi-channel Marketing Systems A conventional marketing consists of one or more independent producer, wholesaler and retailer of which each is a separate entity looking to maximize its own profits at the expense of the comprehensive system (David 2006). All channel members are on the same level hence no one has control over the other; on the other hand, when it comes to assigning roles and resolving conflicts there is no formal means that exists for doing so. A vertical marketing system consists of retailers, producers and wholesalers as a combined; however, one channel member owns the others, signs contracts with them and brandishes so much power that they have no other option than co-operating (the dominating one can either be the producer, wholesaler or even the retailer). A horizontal marketing system entails a channel management in which two or more companies at one level join together to follow a new marketing opportunity where they combine all their resources in order to accomplish what any single company could not; remarkably, companies can join forces with competitors and non-competitors (Balakrishnan 2006). A multichannel distribution system, also known as a hybrid marketing channel is a distribution system in which a single firm sets up two or more marketing channels to reach dissimilar customer segments; this way the system offers many advantages to companies facing large and complex markets expanding its sales and market coverage hence gaining opportunities to tailor its products to the specific needs of diverse customers. Target Market for Unique Beverage As a new soft drink company, it is a requirement that the target market is vast and it’s up to the management to ensure that the necessary steps are taken so as to increase the sales and hence the overall development. The first key step to take is adopting the new forms of media and promotion, utilizing the internet and social media more than ever to communicate with the consumers (Facebook, MySpace, Twitter); moreover, the company can develop a website dedicated to targeting a large audience through the provision of additional information, interactive opportunities and promotions to the consumer (Del 2007). The beverage channel of distributors can also engage diverse activities to reach out to the targeted market like promoting events for the youth or even sampling and promotional activities in some of the renowned festivals and events. Channel Members, Distribution and Channel Organization Channel members are required to be interdependent on top of making a product available for consumption and for the business buyer hence the core channel to be used here is the indirect where the manufacturer, wholesaler and retailer will be key channel members (David 2006). These channel members will be effectual in the target markets where they will help the company in areas dealing with contacts, experience, specialization and scale of operation. Intensive distribution would be the best in this particular situation as the company aims at providing saturation coverage of the market by using all available outlets with the total sales being directly linked to the number of outlets used since the product on sale here is a beverage (Del 2007). For a new company, the best channel organization would be one that has been in the market for a while, has developed and is still on the rise; obviously, using the horizontal marketing system so as to increase the resources and also opportunities (Boyle 2002). In conclusion, on top of the distribution and marketing strategies, it essential that the company also establish a strong product line for the beverages to move fast and capture major shares in the beverages market: moreover, unreserved advertising is also very essential since it plays a core role in promoting sales of the product. References Balakrishnan, V (2006) Innovation in Marketing Management: Marketing Channel Basics. Retrieved on 12th September 2014, from http://home.ku.edu.tr/~ssayman/mktg201/chapter12.pdf Del, H (2007) Customer Behavior: Tata McGraw- Hill. Retrieved on 12th September 2014, from http://www.abhinavjournal.com/images/Commerce_&_Management/Mar12/16.pdf Joseph, H (2005) Marketing Research: Contemporary Marketing. Retrieved 12th September 2014, from http://ww2.nscc.edu/gerth_d/MKT2220000/Lecture_Notes/unit13.htm David, G (2006) Channel Behavior and Organization: Principle of Marketing. Retrieved 12th September 2014, from http://www.laukamm.de/fomweb/elearning/marketing/channel/kotl_channel_behavior.htm Boyle, C (2002) Beverage World:  Surrey Leatherhead International. Retrieved on 12th September 2014, from http://www.yourarticlelibrary.com/distribution/types-of-distribution-intensive-selective-and-exclusive-distribution/5780/ Read More