Marketing, Strategic Focus, and in Runway Energy - Business Plan Example

Marketing Plan for Runway Energy™ Affiliation: COMPANY/PRODUCT RunWay EnergyTM is a new energy drink that is to trade under the pseudo named company, Trinity Beverages, which is privately owned. The pseudo name for the trading company is adapted as the marketing plan in this case focuses on the product rather than the trading company. However, during the development of the marketing plan, a name for the company will be designed and applied to trade Runway EnergyTM. The product is a low-calorie energy drink targeting amateur models within urban cities of North America. Runway EnergyTM is a soft drink manufactured with regards to high level research to feature natural ingredients that have no negative health impacts on the users. This product comes to the market after various government and regulations’ agencies have been wary of the type of impacts energy drinks have on the health lives of users. In this case, the blending of natural ingredients with low calories intents to target a market whose lives revolves around high water-level and low-calorie intake. For example, the use of low calorie ingredients aims to target the dietary mannerisms of the fashion industry and the modeling sector. All models, except for special cases, require low intake of sugar to keep their weights in check and to comply with policy requirements of the companies that promote their personalities and whose products they endorse. Trinity Beverages is a company whose ownership can be viewed in three distinct perceptions. Firstly, the company is in its formation stages upon which its ownership is held privately by a group of five and open for five more investors. In this case, the company is a theoretical model whose purpose and objectives is to create a number of opportunities for young entrepreneurs with ready capital. In this case, the trading of RunWay EnergyTM (RwETM) does not necessarily involve physical office although this requirement is a top priority for the company. Secondly, Trinity Beverages can be viewed as a cooperation of resource investors but limited to a number of investors not exceeding ten. This requirement is relevant in that it filters the possibilities of having a complicated venture in terms of interests’ conflicts, leadership appointing problems, and operations review procedures. Thirdly, the existence on theory delivers a number of objectives regarding the company’s relevance within the Energy Drinks’ Industry, and therefore it can be viewed as an evolutional practical idea. The processing and manufacturing of the product and packaging materials will take three phases to implement. Firstly, the company, as it exists in theory will be contract the processing and manufacturing of its initial product range to other energy drink companies. However, this activity is to be carried out very carefully to eliminate the chances of recipe duplication as well as marketing competition. While other energy-drinks’ companies target general market, RwETM will target the fashion industry only. Secondly, the company will move on to a more practical than theoretical existence to hire premises from which, manufactured and processed products can be traded from a central location and distributed to customers – the marketing concept thrives to eliminate middlemen and brokers. Thirdly, the company will move from practical experiment to an actual company whose activities are managed from a central manufacturing, processing, order processing, delivery/distribution, and sales’ point. At the final stage of the company development, three prospective drink-versions/brands will be traded, these combine to show the relevance of the ‘Trinity’ part of the company name. These beverage brands will include Diet GALPTM, HyPETM, and RunWay EnergyTM. Prospectively, the ownership of the business is determined by the consideration of the number and size of stakes that each of the current five prospective founders will be willing to contribute towards the raising of the required capital of $7,500,000 and the additional members’ input towards the realization of a $40,000,000 reinvestment quota. In this case, given that different founders have varying financial capabilities, inputs and share distributions will be calculated with regards to the number of shares owned through the contribution into the initial capital. Therefore, for an owner contributing $750,000 of the $7,500,000 will own a stake of 10% upon which the stakes can grow or thin with regards to the joining of other members. However, the company ownership is to be registered as private as it will not be involved in IPOs in its infancy. However, following the five-year marketing plan of the RwETM, financial determinants of the company strengths will be analyzed before considering rolling out of an Initial Public Offering to sell stocks. STRATEGIC FOCUS AND PLAN Mission Statement In line with the competitive landscape of the energy drinks’ industry and the growing market for the products, the mission statement, in line with the rationale of introducing RwETM in to the market, is to ‘provide the fashion model with a boost of confidence by bottling and canning glamour’. The mission statement is interpretable to mean that amateur models have a product that targets their ambitions and provides them with the necessary boost of confidence to meet their personal and professional goals. Vision Statement The fashion industry is described with glamor and spotlight perceptions upon which members within the industry deal with premium brands in terms of quality, design, and costs. In this case, the amateur model is a growing fashion adherent whose income and professional earnings do not compare with the pricing and standards of the industry. Hence fore, the vision statement for RwETM is ‘providing a foundation for bridging amateur ambitions with industry characteristics and culture’. The vision statement is in line with the stakes involved in the selection and hiring of professional models within the fashion industry. Targeting the future of fashion industry ensures that RwETM is geared to level up the confidence of amateurs with that of professionals in the fashion industry. In this case, ambition is a component affected by confidence. Therefore, it is through the sale of RwETM to the amateur models that the industry can be more competitive in terms of setting standards and excelling adherents. Goals The marketing plan of RwETM has six major goals it aims at accomplishing in its quest to make the product a competitive, yet unique work of art. In this case, the goals are divided into six categories within which each category is a host of one goal. The six categories of goals include: Educational: The number of activist groups in the USA targeting foods and beverages’ companies has been on the rise since 2000 when social and online platforms became a commonplace for mobilizing diet-sensitive people. In this case, the establishment of a low-calorie and natural-ingredient product promotes research on the best eating and drink consumption practices. In this case, the exercise involving research is educational to the research team and to the general public who value information about new products. Financial: The general purpose of drafting a marketing plan is to ensure that a product has a viable stand or place within a market. The stand or place within a market means that the product should have a ready market whose dynamics is favorable to the company behind the product. In this case, the goal of this marketing plan is to present financial processing procedures for determining price indexes for different stages of existence for the product. Social: Different markets are associated with each other and therefore products made in one industry are used as inputs or raw materials in another. With millions of people around the world and North America faced with the difficulty of finding decent jobs, this marketing plan aims at introducing a product that boosts confidence to amateur models who do not do well in modeling training and development exercises. Hence fore, this plan aims to create a deliverable marketing campaign for a product that links the gap between low-total-household-income group and middle-class social group. Economic: Focusing on the number of factors that are considered social, careers and professional jobs contribute to economic growth. In this case, the marketing plan is a strategy for creating economic support for the involved parties who are determined in delivering a product well-suited to compete for the fast-growing market for energy drinks. Artistic: Design of packaging materials has been a major marketing strategy for companies such as Coca Cola using their contour bottle and Nivea roll-ons. In this case, the launch of RwETM is an operation that aims to incorporate innovation in marketing and strategic components of customer attraction. Competitive: A competitive category of goals is a set of goals whose main aim goes beyond the generation of revenues to include intellectual provocation to industry players to increase their level of quality, reduction of prices, incorporation of best practices, and ethical marketing considerations. The goals for marketing RwETM therefore include: Educational: Providing an educative platform into diets and best eating and drinking habits. Financial: Providing a link between industries to capture and motivate adherent fashion models. Social: Creating a landscape that hosts and accommodates amateur and professional models through equaled level of thriving in glamor. Economic: Creating a foundation for employment and involvement in generating revenues for the development of the industry in general and individual lives. Artistic: Promoting a culture of innovation where design and style are incorporated in marketing strategies to boost individual confidence and cultivate organizational culture. Competitive: To present the market with a new product that sets the benchmark for best marketing practice to shape the industry dynamics and challenge current players to adapt competitive policies. Core Competency and Sustainable Competitive Advantage The first page of Google-Search results following a search string such as energy drinks includes results with headers such as energy drink’s impacts on health, legislative strategies to regulate the food and beverage industry, and energy drinks contributing to increased health concerns. Such results show that energy drinks are widely considered health hazards to a sizeable market portion. Therefore, a major competitive advantage originates from the nature of products presented by other companies to the market and the market’s take on the same. Marketing of RwETM is competitively advantaged in that it involves a product whose processing and manufacturing takes into considerations all health concerns unaddressed by other products trading under the cap of energy drinks. Therefore, a low-calorie 98%-natural energy drink has a higher score in attempting to lure existing energy drinks’ customers as well as diet-sensitive publics. In addition, the steadily growing market for energy drinks is a competency that supports the entry into the energy drinks industry and market. An increasing number of customers within the energy drinks’ industry provides ready market and opportunities for sustainable growth and development of individual companies and the industry in general. SITUATION ANALYSIS SWOT Analysis Strengths The launch of RwETM involves the categorizing of internal resources and their relevance to the marketing of the product. In this case, the initial startup budget of $7,500,000 is a figure whose arrival at includes the inputs of a readily available investment team of five. Unlike the difficulty that would have been involved in raising this amount in the case of one entity, the teamwork approach limits and simplifies the amount of funds each member of the team would raise. In addition, approaching the launch as a joint venture promotes distribution of risks and therefore each member contributes to the overall budgets for offsetting risks and losses. In addition, the brand name for the product is unique and its abbreviated form gives the illusion of a designer formula – innovative approach to branding. Weaknesses The scope of the marketing plan of RwETM creates two threats to the exercise and marketability of the product. Firstly, the contracting of an external company involves risks such as shared management and possible outbreak of a series of delays in meeting deadlines. In addition, the management team for standards and operations is a subject of external planning and scheduling hence taking the power of decision-making from the investors of the company and creating vulnerabilities on management structure of the base company. Opportunities 60% annual market growth after every 5 years is an opportunity regarding the marketability of RwETM. In addition the shift of publics from taking calorie-rich products is a movement towards sustainable growth for the sale of RwETM. In addition, the number of substitutes in the same categories as RwETM is minimal and therefore, proactive marketing strategies to venture into the same business landscape puts Trinity Beverages as a leader in instituting healthy energy drinks. In addition, the corporate social responsibility doctrines currently in existence place health as a common factor of consideration for all consumer products trading on dynamic and closed markets. Hence fore, venturing into diet energy business is an opportunity as the market share for businesses in this market continues to grow with regards to the shift from sugar-rich calories-packed consumer products. Threats Government and regulations’ agency policies continue to be a major threat to many infant and thriving businesses in terms of drafting and implementing policies that contradict with the missions and visions of companies dealing with foods and beverages. The food and beverages agency’s inspections of companies within the same sector present a threat with respect to the first stage of contracted venture (processing and manufacturing by a contracted company). In this case, the base contracted company’s standards would be inspected as a unit rather than a separate set of operations and policies by the standards board. Continued from… INDUSTRY ANALYSIS Read More