The Most Effective Communication Plan for the Company: the Marketing Strategy - Research Paper Example

 “A SWOT analysis is a useful instrument for helping managers to identify internal strengths and weaknesses of a business and external opportunities and threats facing it,” (Strydom J. p 31). Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors are regarded as either opportunities (O) or threats (T). This analysis is very important to marketing managers as it allows them to focus on key strategic issues based on the notion that an effective strategy fully utilises the strengths and opportunities of a business and strives to minimise the weaknesses and threats. This study therefore, is primarily concerned with developing a SWOT analysis for Smart Brain Drinks Company. A close analysis of the Smart Brain Drinks Company shows that the Company is still in its infancy and still has potential in establishing itself as a force to reckon with in the market. For instance, some of the strengths it can harness include creating a strong brand name that is unique and outstanding as a way of enticing potential customers since it is still at the grassroots level. A strong brand name would hit the market with a bang which would take rival competitors off guard and this can be done through giving impetus on its unique proposition: Drink yourself clever! Another major area of strength would be having global patent, that is exclusive rights to their brand name and product that is different from the products already existing. This can be done by making use of high grade ingredients used in its products that can make it absolutely unique from other products already on the market as a way of substantiating its claim that it is different from the rest of the other products. Having good reputation among its customers is another probable strength for Smart Brain Drinks Company. This can be achieved through establishing a good rapport among its customers which in turn would yield mutual understanding between the two. Also by establishing well defined distribution channels, the company would stand better chances of positive growth. However, there are bound to be weaknesses in achieving this feat of establishing itself as a force to reckon with in the market. One major weakness that is evident in its endeavour to establish itself as a unique brand name is potential lack of global patents. It would need strong conviction from global partners in sustaining its claim in which people would certainly be sceptical from the start if this claim of being more unique than the deeply rooted brands in the market such as Coca cola can be sustainable. Another weakness likely to be faced by The Smart Brain Drinks Company is poor reputation owing to lack of high class resources. Already, the five brands that come under the Smart Brain brand namely; Tomato, Apple, Orange, Pineapple and Pear flavours appear to be common brands already existing in the market hence its product may not be very unique from the original brands. High cost structure coupled with lack of well defined distribution channels is another area likely to hamper its efforts of penetrating the international market. It currently makes use of small distribution channels centred near London alone. More costs would be incurred in undertaking marketing research hence this would be a major draw back. On the other hand, its opportunities lie in its ability to penetrate international markets which may have a different appeal than the local markets. By virtue of reaching global markets, Smart Brain Drinks Company stands better chances of breaking through, which can be profitable in the long run in its business operations that may draw international clients. Venturing into global markets is advantageous in that different people have different tastes hence this can go a long way in attracting potential buyers from across the globe. Reaching global markets in particular requires concerted efforts such as making use of modern communication technology such as the internet which is accessible to a wide range of people especially during the contemporary period. Use of the internet can be used as an effective communication strategy that would be aimed at targeting particular groups of people likely to be potential customers. This endeavour calls for precision on market segmentation which is defined as the process of grouping people into segments on the basis of their interests, level of income, age and even geographical location, Kotler. (1999). There is need to identify the targeted audiences which can make marketing relatively easier as the company would know its specific target group hence easy to reach them. Threats include price wars with old, rival competitors who are well established. The issue of pricing of the product such that it can be profitable is a bit contentious issue given that very high prices would deter the customers from buying the product while at the same time very low prices would result in losses. One major identifiable threat in this case is that other competitors in the industry of manufacturing drinks already have superior distribution channels compared to its skewed channels that are only confined to a limited geographical area around London. This means that less would be sold hence little revenue. Another sensitive area is scepticism by competitors and government scientists about the product claims. An element of doubt about a product especially the one still in its growth stage is counter productive as it is likely to scare away customers. Task 2 Inorder to maximise the opportunities of the company, I would take specific measures such as venturing into international markets, harnessing the new information communication technology (ICT) in the marketing strategy as well as venturing into product diversification. In this regard, when launching a new product in the market, it ought to be readily accessible in all corners of the globe should the company decide to go global. In essence, I would strongly advocate the penetration of international markets as a way of trying to capitalise on the opportunities likely to crop up such as it being a preferred brand over the other products that are already existing in the market. However, to penetrate especially global markets requires the use of modern information and communication technology such as the internet which can be easily accessed by everyone. Specially designed websites carrying product information should be fully utilised as a way of captivating the attention of as many people as possible. Berry (2001) refers this as pull communication strategy which attempts to create interest among potential buyers. I would also initiate the use of social websites such as Facebook to post advertisements that would be targeting especially the youths. Indeed, it is common knowledge that from Smart Brain Drinks Company’s proposition, its major target audience is the youths. In this particular scenario, identifying communication channels that are popular with the youngsters is another way of maximising the opportunity created by the use of the internet. In this scenario, diversifying the products can be one of the viable options for the company of ensuring that it is not always facing stiff competition from otherwise established business entities. The products should be appealing to a wide range of customers in the market hence I would look for more alternative ways of attempting to satisfy the needs of different categories of people. Instead of relying on a certain particular product in the form of drinks, the company can also maximise its opportunity by launching another product which can substitute a cool drink such as an ice cream brand. This means that if another product performs badly, then the other substitute would certainly cover up the gap. On the other hand, I would try to offer various promotional incentives as a way of trying to minimise the threats that may exist to the company. Since this company is still in its infancy, promotion through lowering prices on specific occasions is likely to attract more customers. In the process, product awareness would be promoted which would spruce up its chances of drawing the attention of many clients. When this strategy works in favour of the company, it can be used as the center stage of establishing the product legally onto the market in the event that it has not been properly registered. The company would have the support of the people to substantiate its claim that the product is really popular. Task 3 “Social responsibility is the concept that maintains that businesses are part of the larger society in which they exist and are accountable to the society for their performance,” (Strydom 2004 p. 11). In other words, there is need for marketers to strike a fine balance between the needs and interests of customers, needs of the environment and the need for business to realise their profitable financial goals. This goes hand in hand with the concept of ethics, which is loosely defined as an attempt to differentiate between something good and bad. In this particular case, my advice to the company with regards to corporate social responsibility and ethical marketing would include the following areas discussed below. First and foremost, it is every company’s obligation to know that it is operating within a certain social set up with its own norms and values that play a vital role in maintaining the fabric of that society. My big advice would be on the need to establish goodwill with the values and norms of any given society it would be operating in as a way of promoting mutual understanding. The success of any given company would be determined by its willingness to observe the social norms of the areas it would be operating in. This can be done through incorporating some of their values in the company’s day to day operations as a way of creating trust and mutual respect. The success of any product would therefore depend on the amount of respect that exists between the two. In this case it seems as if the Smart Brain Drinks Company is more concerned with financial success. In most cases, contravention of the norms of the society often leads to resistance to a product by customers and loss of goodwill which is counter productive to the company. Randall (1994 p.101) concurs that: “the better the relationship, the more trust that has been built up, the easier it will be to solve the difficult issues which may arise.” Therefore, observing the norms of the society is the foundation of establishing mutual understanding which may lead to the success of whatever product. I would also advice the company to embark on projects that would in turn cultivate part of the benefits to the society. Social responsibility also entails doing good things to the society in which it would be operating. For instance, the Company may take a leading role in promoting activities that promote a clean environment. This can be done through the use of renewable packaging for their drinks which can be exchanged for a certain token of money after the consumption of the contents. This would benefit the members of the society financially and also help build a clean environment. Ethical marketing is concerned with upholding the principles of honesty and truthfulness in the company’s endeavour to satisfy the needs of the customers. In this particular case, the question that would beg an answer from the directors of the Smart Brain Drinks Company would be; ‘Is it ethical to lie?’ One of the basic tenets of ethical marketing is honesty and truthfulness hence I would advice these two gentlemen who are directors of the company to strive to speak the truth as much as possible for the betterment of their company. Marketing strategies premised on lies are bound to fail as they would be doubtful in the eyes of the potential customers. Task 4 Morden communication technology has made dramatic changes in the contemporary marketing communication landscape. Consumers now have the ability to make evaluations on their choice of goods owing to the improvements in communication technology. Marketers on the other hand are cogniscent of these sweeping impacts caused by new technology which has led to significant changes in the way they carry out their business. An integrated marketing communication plan is more ideal during the current period. Given sufficient financial resources, this strategy can positively work for the Smart Brain Drinks Company. In attempting to outline a communication plan that can be adopted by the above mentioned company, it is imperative to explain the whole concept of integrated marketing communication. According to Cant M. (2000 p.285), an integrated marketing communication can be defined as, “a concept of marketing communication planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines such as advertising, personal selling, sales promotion, direct marketing, public relations, sponsorship.” These often are combined to provide consistency, clarity and effective communication. Mass techniques like advertising, sponsorship and publicity for instance can be effectively used as communication strategies which often start at corporate level. The objectives of marketing communication are mainly dependent on what the company wants to achieve and integration of various communication disciplines in the communication plan is likely to produce desired results from the investment made on communication. Basically, the Smart Brain Drinks Company can successfully employ the technique of using separately or integrating some of the communication disciplines mentioned above. The decision that would be made by the marketing manager would then depend on how each communication tool would be used. The communication plan for the above mentioned company should include the effective use of advertising whose major goal is to develop as well as comprehend the sales of the product through increasing awareness just like the goal of publicity or sponsorship. On the other hand, the goal of personal selling is building primary demand for the product hence the communication plan must be tailored in such a way that it appeals to the customers at primary level. The product in question is still in its infancy hence this can be very effective in communicating the desired information. Public relations is another effective communication plan that can be used by the above mentioned company whose ultimate objective is to attempt to make loyal customers through the provision of relevant information and knowledge to the customers. In actual fact, all communication efforts are meant to create brand awareness through providing relevant information to the clients. The combined effects of advertising, sales promotion, publicity and personal selling can be effectively used as viable tools in communication. A successful communication plan is also determined by the ability to identify the targeted audience and their interests. This is commonly known as market segmentation. Smith (1991) summarises market segmentation as the process of identifying and grouping customers in who share common characteristics and interests that make them different from others into a similar category. The target audience for the Smart Brain Drinks Company is mainly the youths hence all communication efforts should be aimed at giving the relevant information that is likely to impact positively on them. Careful selection of product positioning will also enable the company to implement an effective communication strategy as they will have all the necessary product information at hand. However, it must be borne in mind that during the contemporary era, new information and communication technology has revolutionised the ways of communication and doing business. The advent of the internet has brought about new features that make communication relatively easy and can reach a wide range of people located in diverse geographical areas. Electronic communication via the use of the internet is very fast and effective. In terms of Marketing, Kotler (1998) calls this online marketing. Various companies have set up their online channels where marketing information about their products can be readily available from time to time. Thus, the internet is a medium that uses broadcasting and publishing with the aid of connectivity of computers that are online. Unlike other traditional forms of media, the use of the internet can facilitate a two way communication between the participants involved. Compared to other forms of communication media, online marketing through internet use offers a variety of benefits to both the marketer and the customer. It is convenient, lots of information can easily be accessible without much hassles. It does not limit especially advertising space and can reach multitudes of people at the same time. It allows marketers to communicate with both new and existing markets in an integrated way that is beneficial to both the customers and the marketers. The internet can play a cost effective role in the communication mix where direct selling can be made possible through engaging dialogue between the marketers and customers. Advertising is also aided where awareness of product can be easily done through interactive involvement. In view of the argument outlined above, the most effective communication plan for the company in question involves the identification of the target markets. This is then followed by the selection of communication channel that can be used to convey the message to the customers. The message is then tailored in such a way that will make a distinction between the company and old rival competitors already in the market in line with the company’s vision of becoming a unique brand name. It can be concluded that the success of the marketing strategy employed by the company is determined by the effective use of modern communication technology such as the internet. 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Strydom J. (2004), Marketing, 3rd Edition, Juta & Co Ltd, SA. Read More