Marketing Plan of Unicorn Energy Drink - Case Study Example

Written Report: Unicorn Energy Drink Executive summary This report which is presented to the manager of Heinz Australia details the marketing plan of Unicorn Energy Drink, a product which is expected to be produced by the company. The primary target market of this product will be among young people aged between 15 to 35 years, both male and female who are bound to be involved in strenuous activities like sports in Sydney. In addition, the older members of the population in Sydney will also form part of the target market albeit partially. This product will come in different flavors, colors, tastes and quantities aimed at meeting the different consumer needs. On the other hand, based on the fact that Sydney will be the primary target location, mono-segment positioning strategy will be predominantly used in the positioning of Unicorn Energy Drink. In regard to the marketing strategy, social media and the internet will be used to promote the product in the market based on the high popularity of this advertisement channel among the young people. Other media like television, magazines and newspapers will also be used. In relation to price, this product will be priced to reflect its high quality as well as ensuring the prospective consumers from different economic classes can afford it. Lastly, indirect distribution will also be used to present this product to the consumers. Contents Written Report: Unicorn Energy Drink 1 Executive summary 1 Introduction 3 Heinz Australia, an overview 4 Target Market 5 Selection and rationale of the product qualities 6 Competitor analysis 6 Positioning strategy 7 Brand image 8 Overall marketing strategy 8 Marketing mix 9 Price 9 Promotion 10 Place 10 Product 11 Conclusion and recommendations 11 References 12 Introduction It is an apparent fact that the approach of a particular company in its marketing strategy is integral in the achievement and sustainability of its competitive advantage in the market. This is more evident when there is intense competition in the market under which the firm is operating which threatens both its short and long-term operations. As a result, the utility of a profound approach in the marketing strategy is fundamental in the processes of launching a new product in the market, identification of the opportunities and threats, positioning the product and promotion among other processes. This will in turn influence the extent to which the company will be efficient in surviving the intense competition in the market, both at the present and in the future. This fact is revealed by Anderson (1982) who cited that the role of marketing in strategic planning involves the identification of the most suitable long-term positions for the firm which stresses the necessity for proper identification of the opportunities in the current and future market. All these logistics will inform the process of launching Unicorn Energy Drink, a prospective product that is to be manufactured and distributed by Heinz Australia, most predominantly in Sydney where the target market is located. Consequently, this report will inform the manager of Heinz Australia about Unicorn Energy Drink, outlining the nature of this product and how the process of marketing it will proceed. This will entail the analysis of the target market, positioning strategy, SWOT analysis of the manufacturing company, selection and rationale of the brand elements as well as building the brand image among other elements. It is imperative to have a rudimentary insight into the operations of Heinz Australia in order to gain an understanding of prospective niche of Unicorn Energy Drink in the market. Heinz Australia, an overview Established in 1869, Heinz Australia first engaged in the production and selling of horseradish. When this company was instigating its operations, there were no many government regulations on the wider food industry and the founder of the company Henry John Heinz became outstanding among the competitors based on his commitment to clean factories, spotless kitchen, the best ingredients for his products as well as clean jars which were used in the display of the Heinz products. Since that time, Heinz has come a long way to produce a wide alley of widely cognized products while taking active responsibility of its people, community, consumers and the environment (Heinz Australia Corporate Social responsibility Report, 2005). From a humble company selling homegrown horseradish, Heinz Australia has evolved into becoming a major multinational company with leading brands in over 50 countries. Today, the company employs more than 1,100 people who are spread in different manufacturing centers in Echuca, Wagga, Mill Park and Northgate. As the future unfolds, Heinz Australia remains committed and focused towards catering the tastes of their consumers based on its motto, ‘Good Food Everyday’ (Heinz Australia Website, 2010). The production of the Unicorn Energy Drink will be integral in expanding the portfolio of Heinz Australia as well as taking advantage of the opportunities in the Australian soft drink market. Target Market In a generic sense, a target market can be perceived as particular category of consumers to whom a particular product and marketing efforts are aimed at. This is founded on the fact that there is usually a wide divergence among the consumers who are bound to consume a certain product. This is in terms of aspects like demographics, socio-economic realities, attitude and location among others. The market ought to be cognizant of these elements in order to engage in effective marketing efforts. In regard to Unicorn Energy Drink, the primary market will be among the young people who regularly engage in sporting activities and who require constant replenishing of the lost energy in their strenuous activities. This category of consumers is predominantly in the age bracket of 15-35 years. This is founded on the findings by O’Brien et. al (2008) that the popularity of energy drinks among members of the younger generation is evidenced by the fact that 34% of the 18-24 years olds are regular users of the energy drinks. In terms of gender, this target market comprise of both male and female, although the percentage of the male consumers is slightly higher. In addition, older people will also form a slight section of the target market, albeit minimal. This is founded on the increased awareness towards physical exercises as a means of attaining physical fitness and reducing the vulnerability to various age related diseases like diabetes, high blood pressure and obesity among others.Thus, this product will have minimal sugar levels in order to suit the health requirements of this secondary consumer group. In regard to location, both of these target consumers are predominantly metropolitan and live in the target area of this product to be produced by Heinz Australia. Selection and rationale of the product qualities In a basic sense, this entails the elements which will make the product to be produced by Heinz Australia to be noticeable by the target consumers, easy to identify and recall. These include the tastes, color, flavor and logo among other elements. In regard to the color and the flavor, Unicorn Energy Drink will have different colors matching the diverse flavors. For instance, the strawberry flavor will have a deep red color and to match the color of the strawberry fruit. In terms of the logo, Unicorn Energy Drink will be portray a Unicorn (a legendary strong animal from the European folklore which resembled a horse with huge, spiraling and pointed horns and sometimes cloven hooves and goat’s beard) towards the finishing line of an athletics track. This will be key in bringing a close association between the Unicorn Energy Drink and the young athletes in terms of the energy levels and winning power. In relation to tastes, this energy drink will have several flavors as mentioned above which will match the taste of the respective fruits. This is epitomized whereby the apple flavor will have the taste of an apple fruit. Competitor analysis It is important to cognize the fact that Unicorn Energy Drink will be confronted by competition both at the international and the local levels. Therefore, it is increasingly important for Heinz Australia to identify a strategic niche in both of these markets in order to ensure that it gains a strong market share both in Sydney which is the target location as well as at the international spectrum. At the international level, multinational companies like Coca Cola, Schweppes and Pepsi among others. In addition, competition from the local soft drinks producing companies in Australia and mostly in Sydney will also be eminent, for instance, companies like Cottees and Clearmind Pty Ltd among others. Nonetheless, this high level competition ought not dissuade Heinz Australia from launching its new product based on the fact that the energy drinks industry is still in the development phase and there are massive opportunities there. This fact is supported by Heckman et. al (2010) who determined that the energy drinks production is still a developing industry in which a wide range of highly innovative products are bound to come up in the coming years, with novel innovations being aimed more towards the increasing number of people who are health-conscious. Positioning strategy According to Boyd et. al (1998) there are basically seven positioning strategies which are used by different companies around the globe. However, mono-segment positioning strategy will be predominantly used in the positioning of Unicorn Energy Drink. This is founded on the background that this is a new brand in the market targeting a specific geographical location (Sydney). Thus, the marketing efforts will be aimed at popularizing this product in the target location with little attention being given to other locations in Australia. Therefore, this positioning strategy will be geared towards positioning the Unicorn Energy Drink in the market to the extent that it will occupy a unique place in the minds of the target consumers both at the present and in the future. This will help them to differentiate it from other energy drinks in the market with the rationale that they will select Unicorn Energy Drink based on the fact that it meets their distinct energy requirement needs. This is connected to the brand image explored in the following section. Brand image According to Keller (1993), this can be viewed as a set of views regarding a certain brand which is often reflected in the association as perceived in the consumers’ memory. This fact is supported by Aaker (1991) who perceived brand image as a set of associations in the minds of the consumers which are often organized in a significant manner. In regard to the brand image of Unicorn Energy Drink, it will be founded on that robust association of the drink with replenishing the lost energy among people who engage in extensively strenuous activities for physical fitness or other purposes. In addition, the logo of the drink previously analyzed will associate the high levels of energy in Unicorn Energy Drink as being integral in supplying the required energy to athletes in their efforts to win and be successful in their sporting undertakings. Overall marketing strategy In a generic sense, the marketing efforts by Heinz Australia will be primarily projected towards a single geographical location-Sydney. On the other hand, young members of this population (15-35 years) will be the primary target of the promotional undertakings. This will influence high utility of mediums like the social network and the internet which are popular among this group in the promotion process. However, other media like television, magazines and newspapers will also be used in order to reach the wider target market which also comprise of older members of the population. All these aspects are analyzed in the subsequent section which is founded on the 4Ps of marketing. Marketing mix Kotler P. , Armstrong, Wong, & Saunders (cited in Riaz & Tanveer, 2012), determined that marketing mix can be viewed as a set of marketing tools which are controllable in nature that a particular firm uses aimed at generating a desired response among members of the targeted market. These set of variables are generally referred to as the 4Ps of marketing and they constitute product, promotion, place and price. Price In terms of the pricing strategy, Heinz Australia will basically price Unicorn Energy Drink towards making it affordable among the target market which as previously mentioned comprises of the young members of the Sydney population who are engaged in sporting activities. The price of this product will assure the consumers that they will be getting value for their money in terms of the high energy benefit they will get from the product as well as reflecting the high quality of Unicorn Energy Drink. The relationship between the affordable prices of different quantities of the new Unicorn Energy Drink in the market with the high quality of the product will ensure that this product will be competitively niched in the market and maintain this competitiveness amid the competition in the market. Promotion Promotion can be perceived as the mechanisms of passing the information to the consumers in regard to what a particular product does and what it can do (Sharma & Bhardwaj, 2009).Heinz Australia will use a robust media mix in its promotion undertakings, mostly the media modes which are often consumed by members of the younger generation. Firstly, social media and the internet will be the primary method of advertising this product. In this case, social networks like Facebook, Twitter and Google+ among others will be used in the promotion process based on the fact that the young people who constitute the target market have been revealed to be primary users of these networks. In addition, other media like the television will be used. The rationale of using the television in the promotion efforts by Heinz Australia is founded on the fact that this medium combines both the pictorial and audio elements in advertisement. This is unlike other media like radio which only rely on audio output in their advertisements. Moreover, print media like magazines and the newspapers will be used to promote this product among members of the target market, both the young and the old. Lastly, Unicorn Energy Drink will be promoted during sporting activities in Sydney, based on the close association of its brand image with young people engaging in sporting activities. Place This is closely linked to the distribution aspect of marketing. In this regard, Heinz Australia will primarily use indirect distribution methods like franchising, licensing and dealerships among others. This method of distribution has several merits. Firstly, it will minimize the cost of direct investment by Heinz Australia in the establishment of outlets. Secondly, there will be efficient flow of Unicorn Energy Drink to the consumers and the feedback from these intermediaries will be integral in the enhancement of the product to meet the diverse needs of the consumers. Lastly, these intermediaries in the distribution chain will be fundamental in the promoting the product to the consumers in place of Heinz Australia thus lowering the promotional cost. Product The product which is being analyzed in this report is Unicorn Energy Drink which is projected to be produced and distributed by Heinz Australia. This product is primarily aimed at satisfying the energy requirements of the people who are engaged in strenuous sporting activities. In addition, the low sugar levels will ensure that it is ideal for the older members in the target market who are conscious about their levels of sugar intake, for instance, the diabetic and those with high blood pressure. As previously mentioned, this product will also come in different flavors in order to meet the different tastes among the consumers. Lastly, it will also be packed in different quantities with different prices in order to make it more affordable among people from different economic classes in the target market. Conclusion and recommendations It is recommended that Heinz Australia ought to regularly review the aforementioned strategies in the span of roughly six months in order to be in a position to meet the extensive dynamics among the target consumers as well as the market trends. In addition, it is recommended that profound efforts ought to be made aimed at enhancing this product aimed at meeting the changing consumer needs as well as other dynamics in the market. In conclusion, the preceding analysis has revealed that the approach of a particular company in its marketing strategy is integral in the achievement and sustainability of its competitive advantage in the market. Unicorn Energy Drink is a product which is to be released by Heinz Australia among members of the target market in Sydney. This target market comprise of the young people (15-35 years), both male and female as well as older members of the population in Sydney. Unicorn Energy Drink will be a product will minimal sugar level, having different flavors and colors as well as tastes. In addition, it is imperative to note that there is international as well as domestic competition to this product in the target market in Sydney. In regard to marketing, profound utility of the 4Ps of marketing namely price, promotion, place and product will implemented in order to gain a favorable niche in the market amid the competition. References Aaker, D. A. (1991). Managing brand equity. Capitalizing on the value of a brand name.New York: The Free Press. Anderson, P.F., (1982). Marketing, strategic planning and the theory of the firm. Journal of Marketing, 46 (1): 15–26. Boyd, H. W., Walker, O. C., & Larreche, J. C. (1998). Marketing Management: A Strategic Approach with a Global Orientation (3rd ed.). New York: Irwin McGraw-Hill. Heinz Australia Website (2010). Retrieved January 14th, 2013 from http://www.hjheinz.com.au/About-Us/Our-Company Heinz Australia Corporate Social responsibility Report (2005). 2005 Corporate Social Responsibility Report. Retrieved January 14th, 2013 from http://www.heinz.com/data/pdf_files/Heinz_CSR_WEB.pdf Heckman, M.A., et. al (2010). Energy Drinks: An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality, and Regulations in the United States. Comprehensive Reviews in Food Science and Food Safety, 9: 303-317. Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand Equity. Journal of Marketing, 57(1), 1–22. O’Brien, M. C, et. al. (2008). Caffeinated cocktails: energy drink consumption, high-risk drinking, and alcohol-related consequences among college students. Academic Emergency Medicine, 15:453–60. Riaz, W. & Tanveer, A., (2012). Marketing Mix, Not Branding. Asian Journal of Business and Management Sciences, 1(11): 43-52. Sharma AK. & Bhardwaj, S. (2009). Marketing and Promotion of Library Services. Retrieved January 14th, 2012 from http://crl.du.ac.in/ical09/papers/index_files/ical- 79_73_172_2_RV.pdf Read More