Marketing Trends of Drinks R Us - Case Study Example

Contents Objective of the research 2 SWOT Analysis 2 Target market 3 Marketing 3 Packaging 4 Distribution 4 Findings on the basis of questionnaire 5 Recommendations 12 Conclusion 13 References 14 Objective of the research Identify the potential the beverage market has Identifying the preference of different age group towards different drinks like alcohol, soft drinks, tea, coffee and juices. Identifying the potential market where drinks R us can launch itself with a new variant. SWOT Analysis The SWOT analysis of Drinks R Us will help to identify the areas where the company can work and strengthen itself into a better player. Strengths Satisfies customer needs of thirst which is a basic need Large market and increasing customer base due to population growth Variety of flavours and packaging’s suiting all customer needs Weakness Limited shelf life there by making the product become unfit for consumption Brand power require to market the product pushing the cost to rise Opportunities Huge potential in the alcoholic segment as there is a upward trend and people are preferring it. Opportunity to launch variant in the soft drink market along with a health drink Opportunity to tap the coffee, tea market as it is growing. Threats High distribution cost Health issue surrounding the beverage industry Target Market Drinks R Us is aimed at “teenagers who are mostly male in the younger age group”. (Helm, 2005) With stiff competition “especially with more than hundreds local player deciding the target market was based on strategy followed by others”. (Helm, 2005) Drinks R Us is a drink which will go well with the younger generation. The drink has been made in such a way it matches their taste. We also intend to launch variations of it in the same segment. This will “offer something for every customer depending on the want”. (Helm, 2005) Marketing To market Drinks R Us drink we are looking to create brand awareness. In the beginning “we will advertise the product through in stores promotion”. (Bristow and Frankwick, 1994) We plan to do away with “television commercial in the beginning considering the high cost involved” (Helm, 2005) as the company is willing to spend $2000. This will be the second step in our marketing. In the beginning we plan to market through “advertisement through news paper, hoardings and distribution of pamphlets”. (Bristow and Frankwick, 1994) we intend to tie with super markets and advertise there. The main aim here is to make people know about Drinks R Us. In stores promos and special road shows will help to attract customer. We decided to implement this as “there is stiff competition and the huge cost involved will put extra pressure which will hamper the growth path”. (Helm, 2005) This strategy will give us a path and help to move ahead. Packaging Drinks R Us will be sold in pet bottles. We intent to sell it in bottles of 300 ml, 500 ml and 100ml. This falls in line with most of the other providers. We also plan to heave a sticker to give the brand a presence. This will help us create awareness. (Brand, 2003) The packaging will ensure that it is handy. At the same time it will ensure that the bottle doesn’t break in case of mishandling. We used this strategy as it will give us a presence and make it handy for the customers. Distribution In the beginning we intend to “create a strong distribution network in 20-30 states and ensuring that the drink is available on time”. (Heller, 2007) We intend to move forward slowly. This will ensure that we are able to create a good network. This will also result in “having good relation with the wholesaler and ensure that we don’t run out of stock”. (Heller, 2007) Findings based on questionnaire The total number of respondents filling the questionnaire on the random sampling method was: 50 Out of them the distribution of respondents on the basis of gender are as follows Male Female 28 22 This shows that the respondents were more or less equal with a few more mole respondents responding to it. A break up of the number of people responding to the questionnaire on the basis of age looks as follows Under 18 18 to 35 36 to 50 over 50 17 14 11 8 The chart appears as follows When we look at the break up of this on the basis of the region of the earth they belong it shows the following results Australia America Gulf Other 18 13 9 10 This thus shows that the respondents are properly reflected from different regions of the world showing the importance the survey generated. When we look at the number of respondents preferring alcoholic and non alcoholic drinks the results shows the following Alcoholic Non Alcoholic 29 21 The result shows a mixed response highlighting the fact that the company can proceed with drinks either being alcoholic or non alcoholic as there is a demand for both. The chart for the above also shows the following This survey highlights the fact that consumers are looking both as an alternative and thereby ensuring that there is a market for both. The findings on the number of time respondents who prefer non alcoholic drinks and their distribution show the following. Out of 21 people preferring non alcoholic drinks the distribution is as follows Once a week or less 1-3 times a week 4-6 times a week above 6 times a week 5 6 7 3 The chart for the above looks as follows This highlights that out of 21 people prefering non alcoholic drinks a majority of them i.e. 18 people prefer aroung 6 drinks per day. This shows that there is a continuous demand for soft drinks. Also the fact that drinks are being consumed regularly highlights the potentil the soft drink market poses. When we try to mix the age respondents with the people consuming non alcoholic drinks the result shows drastic effects. Out of 21 respondents preferring non alcoholic drinks the division based on the age group shows as follows Under 18 18 -35 36 - 50 above 50 8 6 4 3 The chart looks as follows It shows that there is a distribution of people in different age group consuming non alcoholic drinks. It shows that 8 people out of 21 respondents consuming soft drinks falls under 18 years of age. 6 people fall in 18-35 age group and 4 people fall in 36 to 50 age group. This thus signifies that that people in the younger age group also prefer soft drinks showing the market the soft drinks can cater to. When we look at the different variety of soft drinks people drinking non alcoholic beverages prefer the results shows as follows Pepsi Coca Coal Sprite Fanta Orange 8 5 4 4 The chart for the same appears as follows The findings shows that 8 people prefer pepsi where as 5 coca cola, 4 sprite and 4 fanta orange. It shows a mixed reaction from people prefering soft drinks. This highlights that every variant has customers who mant to consume those. This helps to show that companies who are able to promote and keep terms with the taste and quality will be prefered and will achieve a good market. The amount consumer spend on soft drinks per week highlights the following findings Under 3 dollar 3-5 dollar 5 - 10 dollar above 10 dollar 4 6 8 3 The chart for the same appears as follows It shows that people consume soft drinks frequently and are willing to spend money to continue with their demand for soft drinks. It shows that 6 consumers are spending 3-5 dollars per week and 8 customers spend 5-10 dollar per week. This shows that people are willing to shed extra money at the same time preferring to have soft drinks. The finding on people consuming alcoholic beverages shows the following results Up to once a week 1-3 times a week 4-6 times a week above 6 times a week 11 9 6 3 The chart for the above looks as follows It shows that out of 29 consumers preferring non alcoholic drinks out of the surveyed 50 there seems to a lot many people who are frequent users. It shows that 11 consumer have alcohol once a week, 9 crespondents have it 1-3 times a week, 6 respondents 4-6 times a week and 3 respindents more than 6. This highlights that people have a preference for alcoholic drinks and there seems to be qiute a many people who are frequent consumer of this drinks. When we look the same on the basis of different age groups the results shows as follows under 18 18 - 35 36 -50 above 50 9 8 7 5 The chart looks as follows It shows that people in the younger age group prefer alcohol. It is seen that 9 respondents fell in the age group under 18, 8 respondents fell in the age group 18-35, 7 resondents fell in the age group 36-50 and 5 in the age group above 50. This highlights that people of every age group prefer alcoholic drinks and proper marketing will ensure that the company is able to sell it in huge numbers. When we look at the amount spend by alcoholic respondents on alcohol the results looks as follows under 3 dollars 3-5 dollars 6-10 dollars above 10 dollars 4 7 11 7 The chart for the above looks as follows The above findings shows that respondents prefer to spend huge sum of money on alcoholic drinks as it is seen that 7 respondents are willing to spend 3-5 dollars, 11 respondents are willing to spend 6-10 dollars and 7 respondents are willing to spend above 10 dollars. This highlights an important fact which shows that there is a room for companies to come up with more alcoholic drinks. Thus, on the basis of the respondents and their reply to the questionnaire we see that there is a huge market both in the soft drinks and alcohol market. Drinks R Us can launch soft drinks and along with it come with a health drinks as it is preferred by all ages and groups. This will help Drinks R Us to capture a new market and launching different variants will ensure a steady sales. (Frambach, Prabhu and Verhallen, 2003) The sales forecasting and emerging trends also highlights the fact that the company can continue with the operation in the soft drink market as there is a huge potential and based on it the company can ensure steady sale. There also lies a relationship between soft drink consumption and age and gender so it will be advantageous if Drinks R Us comes and launches a soft drink with a potential to act as a health drink. Recommendations Based on the findings of the questionnaire and the opportunities the beverage market has Drinks R Us can do the following Drinks R Us should launch a soft drink beverage which acts as a soft drink and also as a health drink thereby targeting a huge and niche market. Drinks R Us should ensure that they are able to market the benefits of such a drink and make people aware of the health benefits Drinks R Us should look to eye teenager and younger generation as they are the ones who prefer this and with rapid rise of the younger generation provides an opportunity to grow. Conclusion Drinks R Us needs to ensure that it is able to launch a soft drink which acts as a health drink thereby providing ample opportunity to market it. Drinks R Us should realize the potential this sector provides and launching a drink will prove beneficial in the long run. It will provide the company with an opportunity to work in the niche market and establish itself as a leader if it is able to deliver on the promises. References Bristow D and Frankwick G, (1994), “Product manager influences tactics in marketing strategy development and implementation”, Journal of Strategic Marketing, Volume 2, Issue 3 Brand M, (2003), “Market Intelligence: Making Market Research Work”, Accion’s Insight Series, 7, retrieved on May 18, 2010 from http://www.ssrn.com Frambach R, Prabhu J and Verhallen T, (2003), “The influence of business strategy on new product development: the role of market orientation”, International Journal of Research in Marketing, Volume 20, Issue 4 Heller L, (2007), “Energy drink outperform all other drinks”, Financial & Industry, retrieved on May 18, 2010, from http://www.foodnavigator-usa.com/Financial-Industry/Energy-drinks-outperform-all-other-beverages-report > Helm B, (2005), “Energy drinks build their buzz”, Business Week, retrieved on May 18, 2010, from http://www.businessweek.com/smallbiz/content/jan2005/sb2005015_8196_sb017.htm > SWOT, (2010), “SWOT Analysis”, retrieved on May 18, 2010 from http://www.slideshare.net/sethaphat/soft-drink-industry-presentation Read More