Individual Brand - Last Chance - Case Study Example

Individual brand plan Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Executive summary This report is aimed at drawing out a profound brand plan prior to the instigation of a new soft drink brand to the market by its producer, Last Chance. The development and marketing processes of this new product will entail a mono-segment positioning strategy (single geographic market. The primary target market of this product is the young people in Melbourne who are mostly involved in sporting activities although older members of the population are also to a limited extent included in the target market. Nonetheless, it is important to note that this new soft drink brand is confronted by extensive competition both internationally by companies like Coca-Cola and Pepsi as well as domestically by firms like Metro Beverage Company Pty limited and Tarax soft drinks. The PODs of this new product entail its calories content, its packaging and taste while the POPs entail its package quantity and its non-alcoholic nature. Close associations of this new soft drink with renowned athletes in different sporting realms and associations of this new soft drink with ethical marketing are the two main brand equity building strategies which will be used by Last Choice. In addition, color, logo, taste and scents are the key brand elements which will be put into utility by Last Choice. In regard to the media mix, social media, internet, television as well as the print media will be used in the promotion efforts of this new product. However, it is recommended that the company ought to use a holistic approach both in the development and manufacturing of this new product which will entail the inclusion of all the stakeholders in these processes. Lastly, the company ought to make extensive efforts to review these strategies over the period of 12 months in order to capture the dynamics among the target consumers. Introduction It is an apparent fact that the concept of brand has gained increased centrality in the realms of marketing in the recent decades. In a generic sense, brand can be perceived to refer to a name, symbol, design, term or any other distinctive feature which is key in identifying the goods or services from a specific seller from those of other sellers/ competitors. With the heightened cognition of the imperative niche of brands, academicians, for instance, Aaker (1996) as well as practitioners like Stobart (1994) have made extensive efforts in proposing more formidable and effective ways of sustaining a brand which ushers in the concept of brand management. In a very rudimentary sense, brand management ought to be geared towards modeling a set of perceptions and attitudes in the mind of consumers in relation to an offering which is integral in culminating to a positive purchasing behavior. Nonetheless, it is plausible to point that the instigation of a new brand in the market necessitates a robust approach in brand planning which is central in this report. Against this backdrop, this report is a profound effort to describe the brand plan of Last Chance, a mega international corporation in the soft-drink beverage industry which is planning to develop and market a new brand into a single geographic market over a period of twelve months. Different tenets in the course of developing and marketing this brand will be explored in subsequent sections. Assumptions It is important to outline some of the basic assumptions underpinning this report which will be chief in guiding its eventual development. A strong brand can only be realized through strategic and profound planning. It is assumed that a strong brand sticks in the minds of the consumers, influencing both their current as well as future buying behaviors. Strong branding makes the products from a certain producer to stand out in the market amid cut-throat competition. It is assumed that companies with strong brand reputation are bound to achieve sustainable competitive advantage in the market which is key in influencing their long-term performance and productivity. Positioning strategy In a general perspective, positioning can be viewed as niching a particular brand in the market so as it occupies a distinct place in the minds of the current and prospective consumers. Thus, the role of positioning in the course of developing a marketing strategy aimed at differentiation of the goods and services entails the ultimate selection of the distinct features or attributes which are considered as being imperative for the customers (Radoviciu&Stremţan, 2009). Boyd et. al (1998) offered seven positioning strategies which are applicable in diverse situations. Nonetheless, based on the fact that this new brand is targeted to a single geographic market, mono-segment positioning strategy will extensively be put into utility. This will ensure that exclusive focus in the marketing endeavors of this new soft-drink beverage brand will be laid on the target geographical market aimed at popularizing it among the consumers with little or no attention to other geographical areas. Target market A target market can be perceived as a group of consumers to whom the marketing efforts by a certain business are aimed at and ultimately its products. In the case of this new brand of soft drink from Last chance, the primary target market will be chiefly the young people within the age cohort of 15-35 years who are extensively engaged in sporting activities. This is founded on the need by this group of consumers whereby the body water which is lost in the course of strenuous exercises is usually replaced through the consumption of beverages (Casa, et. al, 2005). However, there will be secondary target market among the older age groups who will also form part of the target market for this new brand of soft drink though limited marketing efforts will be focused on this group. This is mostly founded on the increased awareness and acceptance of exercises as an ideal mechanism of maintaining fitness and minimizing the prevalence of lifestyle diseases like diabetes among the older members of the population. On the other hand, the target market will be from a single geographical location as mentioned in the preceding section. This geographical location is Melbourne which is the most populous city in the state of Victoria. Against this backdrop, the modes of advertisement aimed at promoting this new beverage chosen in this geographical area will be predominantly that which is popular among the youths, for instance, social sites and the internet as opposed to the print media. The favored modes of advertisement will be comprehensively explored in a subsequent section. Competitor analysis It is imperative to note that this new beverage brand from Last Chance will be confronted by competition both domestically as well as from other international producers. Thus, it is fundamental for Last chance to strategically itself in the target market which will ensure that it acquires a robust market share in this geographical market. In terms of international competitors, soft-drinks producing companies at the global level, for instance, Coca-Cola and Pepsi among others will offer direct competition to this new brand. On the other hand, it is expected that there will be a high magnitude of competition in the local market from other beverages producing companies in Melbourne, for instance, Metro Beverage Company Pty limited and Tarax soft drinks among other multiple companies in this region as well as the wider Australia. Consequently, Last chance will need to develop a strong brand salience and brand image for the new soft drink brand. This will be key in creating a purchasing behavior among the consumers which will result to both the short and long term viability of this new brand. On the other hand, the marketing mix used to roll out this new brand in the market which is characterized by price, place, promotion and product (4Ps of marketing) will be vital in ensuring that this new brand achieves the desired targets once it is launched into the market. POPs and PODs According to Keller (2009), POD stands for point of difference which infers to the benefits or attributes which the consumers strongly associate with a particular brand, positively assess and have an inherent belief that they are not in a position to find similar extent with another brand from other competing firm. The POD for this new soft drink brand by Last Chance will be based on its calories content, its packaging and taste. In terms of calories, this new brand will have optimum energy levels and at the same time low sugar level. This will make it ideal for the young consumers who are engaged in physical activities like athletics who need a lot of energy in their undertakings. In addition, the low sugar level will prompt its suitability among the older members of the population in Melbourne who are the secondary target consumers. In terms of taste, the new brand of soft drink will have different fruit flavors to suit the dynamic flavoring needs among both the primary and the secondary target consumers. These flavors will range from strawberry, apple, passion and mango among others. This will make it not only preferable among the young and older consumers but will also meet the dynamic flavoring preferences among these groups. Lastly, the packaging of this new soft drink brand will entail attractive, durable packs ranging from tetra-classic to bottles. This will make both simple to transport as well as to store. In regard to POPs, this stands for point of parity which Keller (2009) perceived as associations which do not necessarily have to be peculiar to a specific brand but may actually be shared by other brands. Therefore, the POPs for this new soft drink by Last Chance will be its packaging into different quantities endowed with different prices in order to meet the consumer needs and thus be associated with economic suitability. Moreover, the non-alcoholic nature of this new soft drink brand will make it be associated with family functions like weddings as well as functions with religious backgrounds where alcoholic drinks are not permitted and extensively forbidden. Building brand equity Brand equity which is often used synonymously with brand value refers to the value that the producer of a certain product will gain from having a strong brand name in terms of high revenue generation. This is founded on the fact that consumers are bound to purchase more of a brand which is well known based on the assumption that a well-known brand is always the better product. In regard to building the brand equity of the new soft-drink brand, Last Chance is bound to extensively use two chief strategies. Firstly, the close associations of this new soft drink with renowned athletes in different sporting realms. This will make it popular among the sporting people which will fortify its brand equity among young people in Melbourne aspiring to be sportsmen and women. Secondly, the associations of this new soft drink with ethical marketing will be key in molding its brand equity. This is whereby it will be associated with environmental friendly production and this association is transmitted in the marketing activities. This is mostly fundamental when most of the young consumers are getting into ‘greening’ movements and the environmental friendliness perception of this brand will make it popular among this group of consumers, strengthening its brand equity. Brand awareness Brand awareness can be viewed as the capacity of the decision makers in an organizational purchasing centers set-up to recall or recognize a certain brand. According to Davis, Golicic and Marquardt (2008), there is a high likelihood of brand awareness playing a central role in propelling the brand equity analyzed above in business markets. In order to build a strong brand awareness, Last Chance will promote this new soft drink in major media platforms which are popular among the young people who are interested in sporting activities, for instance, internet sites which are primarily dedicated to sporting activities as well as the social networks like Facebook and Google+. This will make this group of consumers to be aware of this new soft-drink. In addition, its close association with sporting figure will make it easy to recall among the purchasers which will greatly inflate both its brand awareness and eventually its brand equity in the market. Selection and justification of brand elements These entail the elements that make the brand to be noticeable, easy to identify and recall. These include color, logo, taste and scents among others. In regard to selection of the brand elements, the logo will be that of a sporting young individual which is rationalized by the close association between this brand and sporting young people in the market. In relation to color and scent, this this brand will have the color and scent of the various fruit flavors previously mentioned. For instance, the strawberry flavor will have a deep red color and an accompanying strawberry scent. This is based on the perceived close association of this flavor of this new soft drink brand with the strawberry fruit and gain popularity among the consumers who love this fruit. Lastly, the taste of different flavors of this brand will match the taste of the respective fruits, for instance, the apple flavored drink will have the taste of an apple fruit. All these brand elements among others will also have the cumulative impact of building the brand equity of this new soft drink brand. Brand image Brand image can be perceived as a set of views in regard to a particular brand which is reflected in the associations as conceived in the memory of consumers (Keller, 1993). Similarly, Aaker (1991) viewed brand image as a set of associations, usually organized in some significant manner. The brand image of this new soft-drink brand will be that association of having high energy levels which are helpful in replenishing the lost energy of young athletes after their sporting activities. Thus, the advertisement of this new product based on a fatigued sporting figure who is completely replenished after consuming this new soft-drink brand will be fundamental in making this particular brand to be associated with energy replenishment and great taste and stored in the memory of the target consumers. Brand Associations These can be viewed as the linkages which are in existence between a certain brand and the various nodes which are stored in the memory of the consumers. In terms of core associations, this new soft drink brand will be associated with high energy levels, considerate prices, low sugar and caffeine levels. In addition, it will have secondary associations with young people in the sporting realms as a result of its advertisement using successful athletes. In regard to brand mantras, this new soft drink brand will have a simple phrase of ‘Energy for an extra mile’. This will reflect its energizing capacity to the young athletes. Communication strategy A robust communication strategy has been cited as being integral in creating a strong bond in the distribution channel (Mohr & Nevin, 1990). The communication strategy of in the rolling out of this new soft drink brand will entail a clear channel of communication between Last Chance (producer) and the distributors in various outlets. It will also incorporate an upward dissemination of feedback from the individuals and collectives in these outlets back to the producer which is vital in the enhancement processes of this new brand to suit the consumers’ demands. Consequently, the message of quality, value and effectiveness of this new product will be disseminated from the producer to the consumers via the outlets and the feedback from the consumers will also be disseminated back to Last Chance through the various outlets in Melbourne. Message and Creative Strategy The message for this new soft drink brand will be compelling based on its precision, clarity and extreme focus. It will primarily disseminate an implication of energy refurbishment to the young athletes, quality and great taste. It will thus divorce from other aspects like color and taste despite them being logical, attractive and plausible. Thus, the creative strategy of this new product will communicate that this new product is endowed with high energy components as well as extreme quality based on the ingredients used to manufacture it which will create a positive perception among the consumers. This will be communicated in various advertisement outlets like brochures which will direct the undertakings of the advertising department at Last Choice. Media mix The media mix for this new product will be primarily based on social media, internet, television and limited print media. Social media will basically be ideal for the young target consumers since recent trends has revealed increased utility of social networks like Facebook, Twitter and Google+ among others in advertisements. This is revealed by Mabry (2010) who revealed that in 2009, advertisers used a cumulative total of $2 billion in the social media advertisement and this figure is projected to grow up to $3.5 billion by 2013. Thus, the use of social media will be integral in promoting this product among the young consumers. On the other hand, the use of the internet has also elevated in the recent past with increased technological knowhow among members of the population. In addition, the use of the television will ensure the combination of the audio and pictorial advertisement. This will be integral in popularizing this new soft drink among both the primary and secondary target market. Lastly, the print promotion will entail the use of printed material like newspapers, flyers and magazines which will give the producer a chance to explain the where, why and when the consumers can purchase the new soft drink brand in Melbourne. Measuring brand equity This activity will be aimed at summarizing the perception among the consumers in regard to the new soft drink in terms of dimensions namely familiarity, uniqueness, quality, popularity and relevance. This will be done in three ways. Firstly, the feedback from the consumers immediately after the purchase the new product and when they come back from more. Secondly, the Last Chance website will have a feedback section where the consumers can post their perceptions about the new product and lastly, Last chance will conduct market surveys to weigh the consumers’ perception, most preferably 6 months and 12 months consecutively after the launch of this new product. Assumptions and recommendations It is assumed that the approach recommended in the preceding sections will translate to the new product gaining sustainable competitive advantage in the market. In addition, it is assumed that the utility of the strategies in the previous sections will make the new soft drink from Last Choice to stick in the minds of the consumers, influencing both their current as well as future buying behaviors. Nonetheless, the company ought to use a holistic approach both in the development and manufacturing of this new product which will entail the inclusion of all the stakeholders in these processes. Lastly, the company ought to make extensive efforts to review these strategies over the period of 12 months in order to capture the dynamics among the target consumers. Conclusion From the preceding section, it is evident that a strong brand is central in the efforts of a company to clinch a favorable niche in the market. Various factors like the positioning strategy, target market, brand image, media mix and level of competition ought to be considered prior to launching the new soft drink brand in the market. Moreover, a holistic approach in the development and marketing processes of this product is integral in ensuring that all the stakeholders ranging from the producer, promoters, consumers and suppliers are included to ensure the success of the product development and marketing processes. References Aaker, D. A. (1991).Managing brand equity. Capitalizing on the value of a brand name.New York: The Free Press. Aaker, D. (1996). Building Strong Brands. New York, NY: Free Press. Boyd, H. W., Walker, O. C., & Larreche, J. C. (1998). Marketing Management: AStrategic Approach with a Global Orientation (3rd ed.). New York: Irwin McGraw-Hill. Casa, D.J et. al (2005). American College of Sports MedicineRoundtable on Hydration and PhysicalActivity: Consensus Statements. Current Sports Medicine Reports, 4, 115–127. Davis, D. F., Golicic, S. L., & Marquardt, A. J. (2008). Branding a B2B service: does a brand differentiate a logistics service provider? Industrial Marketing Management, 37(2), 218- 227. Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand Equity. Journal of Marketing, 57(1), 1–22. Keller, K.L (2009). Brand Planning. Retrieved November, 13 2012 from http://www.marksherrington.com/downloads/Brand%20Planning%20eArticle.pdf. Mabry, E. F. (2010). Engaging audiences: An analysis of social media usage in advertising. Masters Thesis, Louisiana State University, Louisiana, United States of America. Mohr, J. & Nevin, J. (1990). Communication Strategies in Marketing Channels: A Theoretical Perspective. The Journal of Marketing, 54(4), 36-51. Radoviciu, R. &Stremţan, F. (2009). Companies with market positioning brands. Annales Universitatis Apulensis Series Oeconomica, 11(2), 1072-1077. Stobart, P. (1994). Brand Power. Basingstoke: Macmillan. Read More