Individual Brand Plan for Vitaboost Soft Drink - Case Study Example

Individual Brand Plan: Vitaboost Soft Drink Executive Summary Following the launch of the Vitaboost Soft Drink brand by Last Chance Corporation, the company seeks to develop an effective brand plan that will enable it to successfully promote the brand in the United Kingdom market. This report presents a one year brand plan that the company can use to build Vitaboost’s brand equity and penetrate in this market. This report establishes that, the target market for Vitaboost Soft Drink are consumers who are conscious about their health and would thus opt to purchase Vitaboost since it is highly enriched with Vitamin C and does not have preservatives, caffeine or chemical additives. Moreover, this report proposes that, in order to effectively build Vitaboost brand equity in the market, Last Chance should continuously invent and reinvent its brand elements (logos, slogan and image) so as to appeal to consumers, implement an extensive brand awareness campaign and employ an integrated communication approach that maximizes on the use of television commercials, billboards, print media and internet platforms. Introduction Last Chance Corporation is an international corporation that has diversified its operations in the sporting apparel industry, soft-drink beverage industry and the male fragrance industry. The firm intends to introduce a new soft-drink brand into the United Kingdom market. The new soft-drink brand is debuted as Vitaboost Soft Drink. Basically, Vitaboost soft drink is a new vitamin rich soft drink manufactured and produced by Last Chance Corporation. As compared to other soft drinks in the market, Vitaboost is a unique soft drink mainly because it is enriched with high levels of vitamin C and it does not include any preservatives, caffeine or chemical additives. Some of the key ingredients contained in this energy drink include; vitamin C (ascorbic acid), concentrated apple juice, citric acid, taurine and liquid fructose. Vitaboost comes in flavours such as apple, blackcurrant, pear, orange and lemon and is packed in different quantities. Following the launch of Vitaboost in the market, Last Chance Corporation intends to market the soft drink in the United Kingdom. The key aim of this report is to present a brand plan that can be used to effectively market Vitaboost soft drink in the United Kingdom within a period of 12 months. Foremost, this report will highlight the assumptions made in this brand plan. Secondly, it will discuss the positioning strategy of the brand particularly in relation to the target market, competitor analysis and the Points of Parity (POP’s) and Point of Difference (POD’s) of the new brand. Thirdly, this report will focus on the strategies that will be used to build Vitaboost’s brand equity especially in relation to brand awareness and brand image. Furthermore, this report will examine the communication strategies that will be used to promote the brand in the identified target market. It will also highlight appropriate and realistic methods that can be used to measure Vitaboost’s brand equity in the target markets. Lastly, this report will provide recommendations that Last Chance can adopt and implement in order to realise better outcomes for Vitaboost soft drink in the United Kingdom market. Assumptions Some of the key assumptions that will be made in this brand plan include; Last Chance Corporation has adequate resources and capabilities for implementing the suggested brand marketing strategies This brand plan will be used to promote Vitaboost soft drink during its initial entry into the United Kingdom market. This brand plan will be used for a period of 12 months. Positioning Strategy According to Lamb, Fair & McDaniel (2011), positioning is a process used by marketers to create a product image or an impression of a product in the minds of consumers in various target markets. In most cases, the process of brand positioning involves; identifying and defining the target market in which a particular brand will be targeted and identifying the direct competition available in the target market. This report section will focus on discussing the positioning strategy of the brand particularly in relation to the target market, competitor analysis and the Points of Parity (POP’s) and Point of Difference (POD’s) of the new brand. Target Market Kurtz (2010) defines a target market as a market segment that marketers or businesses have decided to direct their marketing strategies and efforts in order to realise positive brand outcomes. Target markets can be divided based on geographical factors, demographic factors, behavioral factors and psychographic factors. As stated earlier, this brand plan will focus on marketing Vitaboost Soft Drink in the United Kingdom. The United Kingdom has been chosen as a suitable geographical market for marketing Vitaboost Soft Drink mainly because over the years, the soft drink industry has witnessed significant growth and success. According to the 2012 UK soft-drink report, the soft drink industry increased its value by 5.1 per cent in 2011 and realised a sale of over £14.5 billion. In reference to the findings of Zenith International, the British Soft Drinks Association also established that the consumption of soft drinks in the United Kingdom, increased by 0.7 %. This translates to an annual consumption of over 14.6 billion litres or 253.3 litres per person (BSDA, 2012; BSDA, 2012b). Based on these research studies conducted by the British Soft Drinks Association on the performance of the soft drink industry in the United Kingdom, it is plausible to conclude that the United Kingdom provides a viable market for the launch of Vitaboost Soft Drink. In order to effectively target Vitaboost Soft Drink in the United Kingdom, the UK market will further be segmented based on behavioural aspects such as benefits sought from the product and consumer tastes. In this case, Vitaboost Soft Drink will target consumers who purchase the product based on the nutritional value or the health benefits that the product offers. This target market will incorporate consumers who are conscious about their health and would thus opt to purchase Vitaboost since it is highly enriched with Vitamin C and does not have preservatives, caffeine or chemical additives. Competitors Analysis As a new soft-drink in the UK market, Vitaboost is bound to face stiff competition from well established brands such as Pepsi, Coca Cola, Britvic and Ribena among many others. In the UK, the soft drink industry is divided into five main categories namely; carbonates, fruit juices, bottled water, dilutables and fruit juices. Among these categories of soft drinks, carbonates such as Coca Cola have a wide market share, followed by dilutables such as Ribena and Robinson. As a vitamin rich soft drink, that provides consumers with nutritional value, Vitaboost faces a stiff competition from soft drinks that offers nutritional values such as Ribena and fruit juices such as Weight Watchers, Vimto and Welch’s which also offer consumers significant nutritional value (BSDA, 2012b). Point of Difference (POD) and Point of Parity (POP) One of the key factors that make Vitaboost to stand out from its competitors in the market is that, it is a non-carbonated soft drink that is highly enriched with Vitamin C and does not have preservatives, caffeine or chemical additives. Thus it can be considered as a healthy soft drink. A considerable number of studies have linked the consumption of carbonated soft drinks such as Coca Cola, Pepsi, Britvic and others to health related problems such as obesity, diabetes, cavities and eating disorders (Vartanian, Schwartz & Brownell, 2007; Coffman, 2011). Consequently, consumers are increasingly limiting their consumption of soft drinks or turning to healthier alternatives (Vision Critical, 2012). Vitaboost provides a healthier alternative to carbonated soft drinks such as Coca Cola, Pepsi and Britvic. The soft drink is highly enriched with Vitamin C therefore; drinking Vitaboost is drinking Vitamin C. Generally, Vitamin C is fortifies the body’s immune system, facilitates metabolism and contributes to the maintenance of healthy tissues, teeth and bones (Hickey & Saul, 2008). Vitaboost’s point of parity with other soft drinks in the UK market is embedded on its ability to offer consumers a wide range of flavours. Just like other soft drinks in the market, Vitaboost comes in flavours such as apple, back current, pear, orange and lemon and is packed in different quantities. Building Brand Equity The key to the success of any brand lies in building strong brand equity. According to Keller (1993), brand equity occurs when a brand is well known and has a strong unique and favourable association in the memory of a large number of consumers. Keller (2003) further observes that one of the key sources of brand equity is brand awareness. Brand awareness can be described as the extent in which a brand is known or recognised by consumers. Therefore, in order to build Vitaboost’s brand equity in its target market, Last Chance Corporation will focus on building the brand’s awareness. Moreover, a brand’s image plays a critical role in developing its equity in the market (Kotler & Pfoertsch 2006). Brand image elements such as; name, slogan, logo and brand story play a critical role in building the equity of a brand. Therefore, it will be crucial to develop a strong and appealing brand image for Vitaboost so as to develop its equity. In addition to this, an effective brand communication strategy will go a long way in ensuring that the Vitaboost soft drink brand develops strong brand equity in the UK market (Clifton, 2009). Building Brand awareness Some of the key strategies that Last Chance will employ in order to boost Vitaboost’s brand awareness include; Sports events sponsorship, extensive distribution and social media marketing. Sports Events Sponsorship In order to enhance consumer awareness of Vitaboost’s sport drink, Last Chance Corporation should embark on Sports Event Sponsorships. Andreff & Szymanski (2006) observe that, sport sponsorship is a useful marketing tool that can help to increase brand awareness, communicate to potential customers and modify consumer’s attitudes and perceptions towards a brand. The use of this strategy will require the company to pay sponsorship fee to either a team, sports events or a league in show for support. In return, the company will get exclusive rights to promote its brand or associate the brand with the alleged team, sports events or league. Due to the wide audience that most sporting events receive or the attention that prominent sports figures get, the brand is bound to be exposed thus developing consumer awareness. Hence, the Corporation should focus on sponsoring major sporting events or tonourments so as to build Vitaboost’s brand awareness. Extensive Distribution Extensive distribution of Vitaboost soft drink in different locations in the United Kingdom can significantly aid in building brand awareness. Extensive distribution of the soft drink will ensure that consumers can easily and conveniently access the product thus leading to brand recognition. In order for the Corporation to realise this goal, it should first focus on developing effective relationships with suppliers and distributors across different channels (Blythe & Zimmerman, 2005). Social media marketing Due to the increasing popularity of social media networks such as Facebook, Twitter, Instagram, YouTube, LinkedIn, Yelp and Foursquare among others, social media can act as a very effective tool for building brand awareness especially for new brands such as Vitaboost soft drink. Most social media platforms have features and applications for sharing images, content and video with an unlimited number of people. Therefore, Last Chance should capitalise on the use of different social media platforms to build awareness on its recently launched soft drink, Vitaboost (Zarrella, 2010). Brand Image As earlier established, brand image plays a significant role in building brand equity. Elements of a brand such as name, logo, slogan and the brand story significantly contribute to building a brand’s equity. For instance, in the case of Vitaboost, its brand name is derived from two words “Vitamin” and “boost”. These words have been combined to form the word “Vitaboost”. When most consumers come into contact with this brand name, they are bound to get the impression that the soft drink has a been enriched with a certain level of Vitamins. Consumers who are health cautious are bound to identify themselves with the brand due to its nutritional value. The brand name “Vitaboost” effectively captures the core function of the soft drink which is to boost or provide enriching Vitamin C. Vitaboost’s logo will incorporate a fruit basket comprising of Vitamin enriching fruits such as oranges, apples, strawberries and pears. This logo will be used so as provide consumers with the impression that natural fruits with high levels of Vitamin C have been used to make the soft drink. Moreover, the use of this logo will affirm the brand’s status as a healthy soft drink. “Healthy drink, healthy life” is the slogan that will be used to promote Vitaboost. This brand slogan attests to the fact that, the consumption of Vitaboost provides health benefits that eventually contribute to an individual’s physical wellbeing. When it comes to brand association, it is expected that, consumers will associate the Vitaboost brand with healthy living. The promotion of the brand will accentuate on highlighting the fact that, unlike other soft drinks Vitaboost is a non-carbonated soft drink that is highly enriched with Vitamin C and does not have preservatives, caffeine or chemical additives. Therefore, consumers will associate the brand as a healthy soft drink. The brand labels of the product will help consumers to associate Vitaboost with healthy living by providing clear information regarding the ingredients used to make the product. Moreover, the advertisements promoting this soft drink will incorporate compelling messages highlighting the benefits of Vitamin C and the level of Vitamin C contained in different packs of Vitaboost. Brand Communication Strategy Effectively promoting Vitaboost soft drink in the market will require the use different communication strategies and avenue. In essence, an integrated brand communication strategy will be used to communicate the key benefits of consuming Vitaboost to health conscious consumers (Kurtz 2010). The integrated brand communication strategy will include activities such as advertising and public relations. The main communication strategy that will be used to build Vitaboost’s brand equity is advertising. Vitaboost will be advertised through several avenues such as Television commercials, billboards, in the print media (magazines and newspapers) and over the internet through websites and social media networks (Facebook, Twitter, MySpace). Different advertising campaigns will be generated to advertise Vitaboost such as 15 second TV commercials, magazine pages and social media pages such as on Facebook and Twitter which will run various promotional campaigns designed for the target market. Vitaboost will also use celebrity endorsements to develop consumer awareness of the Vitaboost brand. Vitaboost will use celebrities who represent the Vitaboost brand image to increase the popularity and brand equity of the product through endorsements (Lamb, Fair and Daniel 2012). According to Taleja (2010) commercials which involve celebrities receive high viewing and response rates and therefore celebrity endorsements are likely to build brand loyalty for Vitaboost. Vitaboost will also use sponsorship as a communication strategy where events and sports teams consistent with the brand will be branded to increase market penetration and enhance brand loyalty. Evaluating Brand Equity Brand equity has been defined as the differential effect of brand knowledge on consumers’ response to the marketing of the brand (Aiker 1996). It is the value a customer will attribute to a product that is translated into consumer goodwill to buy a product or the latent value in the mind of customers exhibited through its impact on behavior. The measurement or evaluation of brand equity should therefore reflect both attitudinal and behavioral components (Aiker 1996; Keller 1993). Since Vitaboost is a new entrant into the soft drink market, the main measures that will be used to evaluate the brand equity of Vitaboost in the first 12 months, is customer satisfaction and after the 12 months Vitaboost’s market share. To evaluate customer satisfaction, regular consumer surveys will be used to enquire from customers whether they were satisfied with consuming Vitaboost, whether they would still prefer Vitaboost as compared to other products and whether they would recommend Vitaboost to other consumers (Aiker 1996). The results of the consumer surveys will indicate the loyalty for the product. Brand equity can also be measured financially by examining the market share of the brand. A brand’s performance measured by its market share or sales volumes is a valid and sensitive reflection of the brand’s standing with its customers (Aiker 1996). If customers of Vitaboost view that the drink has a relative advantage as compared to its main competitors, the market share of Vitaboost will be expected to increase. Conversely, when Vitaboost’s competitors improve their brand equity, it should reflect in positive changes in their market share. Vitaboost’s market share will be computed from its sales figures as compared to its competitors in the industry (Aiker 1996). . Recommendations Effectively promoting the Vitaboost soft drink brand in the UK market will require Last Chance Corporation to implement the following brand management strategies; 1. Continuous invention and reinvention of brand elements such as brand logo, slogan and image. It is important for the corporation to regularly evaluate the effectiveness of these brand elements in promoting brand equity. Subsequently, it should adjust these elements based on the current trends in the market 2. Focus on extensive brand awareness campaigns. Given that Vitaboost is new in the market, it is important to develop consumer awareness and knowledge of the brand. Some of the strategies that the Corporation can employ include; social media marketing, sports sponsorship and developing extensive distribution channels for the program. 3. Employ an integrated communication approach that maximizes on the use of television commercials, billboards, print media (magazines and newspapers) and internet platforms such as websites and social media networks (Facebook, Twitter, MySpace). Conclusion Based on the findings of this report, it is evident that the key strategies that Last Chance Corporation can use to effectively promote the Vitaboost soft drink brand in the UK market include; developing a strong and appealing brand image and focusing on brand awareness through sport sponsorships, social media marketing and the development of extensive distribution channels. In addition to this, implementing an integrated communication approach will enable the corporation to effectively target consumers in different market segments. References Aiker, D. (1996). “Measuring Brand Equity Across Products and Markets.” California Management Review 38(3): 102-120. Andreff, W. & Szymanski, S. (2006). Handbook of Economics of Sport. 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