Management of Aloha Energy Drink - Essay Example

Business Analysis ID Lecturer Table of Contents Table of Contents 2 Introduction 3 TargetMarket 3 Industrial Analysis 4 Product 5 Place 5 Promotion 6 Price 6 The Reason why our Product is Better 7 Conclusion 8 Bibliography 8 Introduction The business chosen for this paper is that of selling energy drinks and the brand specifically devised for this is known by the name of Aloha Energy Drink. This energy drink aims to hit the market in an instant fashion and become a quick sensation as it is deemed to be a very vibrant brand amongst the urban population of youth, which would include the hip and trendy youngsters - both boys and girls. Therefore it would be correct to fathom that the teenagers are indeed its primary target audience and thus all efforts have been guaranteed to ensure that Aloha Energy Drink looks after the demands and requirements of the youth and in the process gain quite a good amount of the secondary market share which is there in the form of adults and not to forget the kids who purchase the energy drink for their consumption needs and satisfaction. Target Market As for the customers who will purchase this product, they would include the teenagers who are the residents of metropolitan areas. These would comprise of the SEC A and B classes who would have parental incomes above US$5,000 on an annual scale. The company believes in delivering state of the art energy drinks to its customers which essentially suggest the goodwill that the energy drink company has believed in ever since its inception. The leadership style at the company has focused on satisfying the market and the consumers and delivering quality rather than just mere words. Quality is backed up with quantity by making sure that the product is available at all the retail outlets. The leadership style is thus surely one which will help develop and sustain the business for a long period of time. It will help build solid rapport with the partners and channel members at the different levels, which include the distributors, wholesalers, retailers and so on and so forth. Industrial Analysis The market right now is quite attractive for the energy drink market and I believe it is the right time to hit the market with our product as it offers a different taste and aroma surrounding it. Market is on the rise and I am sure with the passage of a little time, my brand would also hit the retail outlets just like all the other popular brands have already done. The survey that we did before launching the energy drink consisted of both the primary research data as well as the secondary one. Primary data included the matter related with asking questions from the people in a random order. The sample consisted of around 250 men and women combined. The secondary data was collected from A C Nielsen, the marketing research concern. The questions that were asked included the following: 1. Do you drink energy drinks' 2. What is one thing that you like about energy drinks' 3. Would you go for an expensive energy drink or one that costs less and gives more in terms of benefits like rich taste, aroma and a sense of attachment with it' 4. Would you go for Aloha Energy Drink if we give it to you for X dollars' Product The product itself is the Aloha Energy Drink which is available within the market at a reasonable rate. It is one of the most sought after energy drinks that will be there in the market and offers a niche segment of its own. Its competitors will understand that Aloha Energy Drink is a name to reckon with, in the relevant market domains and thus Aloha would come out as a winner at the end of the day. Place There are a few managers at the retail and sales level who are concerned with delivering the product to the stores and outlets. We have the sales manager as well as the advertising manager. Then we have the marketing manager who is above both of them and takes care of all the marketing related things for the brand. The total employees are close to a thousand (Odaka 1999). They either work in the factory or within the office set up. The marketing manager is the boss under me who takes care of all the tasks and he basically assigns all the responsibilities to the managers and their sub-ordinates. We have the store in charge, the cleaning guys, the shift in charge, the people responsible to run the machinery at the site, the lorry drivers, the office staff, cleaning men and women and a lot of other staff who give their best shot day in day out. Ideally suited to our needs, the factory is located very close to our office set up. So we do not have any hindrances as such in meeting demand and supply issues. Also transportation is not a problem for us as such. This gives us an advantage over competing brands in the fact that we can meet the expectations of the shortfall in the market better than others. Our stores are designed to include product branding right close to the refrigerators where the soft drinks and ice creams are placed. We have especially set up our own placement section by branding the counter and then placing small refrigerators to keep the energy drinks cold and chilly at all possible times. Promotion In terms of the store promotion, we have placed the small refrigerators over the counter as just discussed. Also we have placed buntings, mobiles as well as a poster right where the store's main entrance is. Floor branding is also something that we are looking towards. We have also pasted a sticker on the counter machine. The strategy is to hit the customer or intended customer with our advertising message as soon as he enters the store. Our prices are way below as compared to our competitors. We have maintained our prices in special seasons including the summers and would not reduce them if a competitor does the same for reasons best known to them. Discounts are something that we plan to work upon but right now we are not in a position to give any. Credit cards and all other forms of VISA cards are acceptable at the stores. For maintaining a log of customers on credit policy, we have maintained a bar code mechanism as well as a manual register entry is placed at the counter. For collecting bad debts, we will go for the bar code mechanism and manual register. We will try our best to ensure that there are no bad debts in the first place. Price The fixed costs as per the company include the hardware costs plus the salaries of the employees. Also the legal documents and related material has to be paid for in the courts. More than anything else, we have to pay the slotting allowances to the retailers as well as other fees and charges to the different channel members, who carry out the wholesaling and distribution activities. The monthly costs would include for the rental charges of the office as well as the factory where the product would be made ready for shipment to retail outlets. Break even analysis reveals that we have to sell at least 1 million units of the product before we can start earning profits. We have targeted the same to happen within a span of three to four months after we have launched it in the market with huge pomp and fanfare. The Reason why our Product is Better The reason why this product is better than the others in the market is because it delivers on the promise tangent of the needs and requirements of the target market in a better manner than other competing energy drinks that are already present in retail outlets and stores. We have a proactive approach rather than a reactive one in this regard and we believe it is the best way to keep these risks away. The city services will include proper and timely delivery of product to the outlets as well as ensuring that the brand is always there on the shelves and meets the expectation of the customers at all possible times. We are looking at a complete customer service offering. We have decided to take back any broken, old and out of date stock of energy drinks. Also we do not mind whether the seal has been opened of the can and we just take it back without any hesitation or discussion. Conclusion In the end, it would be sound to state that Aloha Energy Drink will exceed the expectations of the customers and would come out as a winner. It will be the best possible energy drink in the market and the 4 Ps will signify the essence of the energy drink in essence. The elements of product, place, promotion and price would easily put Aloha Energy Drink as the very best amongst its competitors and thus represent its image and identity in a very hard-hitting manner towards the end customers. What is needed is a vision to excel beyond the ordinary. Bibliography ODAKA, Konosuke. (1999). Small Firms, Large Concerns: The Development of Small Business in Comparative Perspective. Oxford University Press Word Count: 1,510 Read More