Marketing Plan Project Journal of Marketing Theory

Question: Describe about the Marketing Plan Project for Journal of Marketing Theory? Answer: Mission and Objectives of the Organisation In order to produce a new product in the market place an organisation is in need of strategizing the new policies and identifying the issues. In order to place the product, proper marketing manifestation is essential which helps in developing the marketing prospect. Here, in this assignment the researcher is going to strategize the marketing policies while launching a new product Red Energy. Purpose of Market Plan: In order to market the product properly and to analyze the necessities of the customers of the market is needed to be the main motive for an organisation to develop a strategic market planning. Red Bull is going to market Red Energy targeting the youths of America who prefers mostly in body building and athletes. At the same time, the product is also an energy drink which helps the common people to be relieved from their tiredness. The drink as supposed by the organisation helps the common people maintaining its fitness and health. It can better be stated as an energy drink (Desai et al. 2012). As there are only a few organisations available in USA supplying energy drink in the market, proper promotion of the product both in the social and digital media seem to be literally necessary. The marketing plan strategizes to be important in this aspect. Among the existing users of Red Bull craze of having strong energy drink is on a high note which can be expected to grow extensively once the Red Energy is marketed. Mission Statement: By marketing of Red Energy, the organisation intends to increase its sales among the customers aged between 18 to 35. At the same time, the company wants to revise its revenue growth as well which helps in determining more profit. Nowadays, as soft drink and energy drinks have become one of the alternatives of tea or coffee, Red Bull expects that by marketing of Red Energy the organisation will attain the market penetration. At the same time, achieving the marketing goals is another significant issue that the organisation wants to achieve (Dyer and Chu,2011). Competitive Advantages: In Red Energy, the organisation has decided, to attain advantages of the competitive market place, reduce the general quantity of calories (110 grams) and increase the normal quantity of caffeine from 80mg to 86mg. With hike in the quantity of caffeine reaction speed will also increase and let the concentration of the common people leads to be increased. With more caffeine burning of fat will also be engaged which enables the person to get relieved from the extensive fatigue that may conquer upon it. These features are quite intuitive which helps Red Bull to claim market success for Red Energy. A report of Eastman and Liu (2012) states that Red Bull in 2014 had attained $2883 million where Monster could only attain $2476 and Rockstar $647 million. The report also states that Red Bull is having 43% USA market acquisition where 39% is for Monster and 10% share for Rockstar. This approach is literally effective for the organisational development and marketing growth. As Red Bull is already in a height of growth in USA market, it is expected that it will also prove to be helpful for acquiring the market for Red Energy as well. As no of the organisations has marketed any energy drink aiming at slashing off the fatigue of the common people, it helps in organisational development (Eastman et al. 2010). Situation Analysis Strengths v Red Bull has decided that Red Energy will be launched in three flavors which will enable the customers to choose among them. Taste of these three flavors is also going to be different that is another significant attraction. v Brand equity of Red Bull is literally sophisticated which helps in developing the strengths of the organisation (Eng and Bogaert, 2010). At the same time, creative approach of Red Energy is another essential issue that helps in attaining potentiality for the product. v Although it is said that Red Energy is going to increase the caffeine quantity, however, it is laboratory tasted and proved that there is no harm and side effects. v It may conquer the market in alternative of soft drinks. Weaknesses v Stereotype confusion of the market place in the past few years with economic slowdown has resulted US economy not to be stable. This may result the market of Red Energy not to be properly attained. v For Red Energy, the limited age group has been covered from 18 to 35, resulting in a serious loosening of a huge number of customers. v As Red Energy is a complete new innovation, never have tasted in the market ever, a threat of getting rejected by the customers of the market is always there. v Competition is also a significant issue that has become a real threat for the USA soft drink market. Opportunities v As people are getting more conscious about their health these days, Red Energy may seem to be the only option open to them that easily decreases the total fat level. Having been manufactured with protein and fiber it helps to attract more people of the market. v Red Bull has decided to keep the price of the product low which helps in attaining better market advantages. v No potential competitor of the market place may help in developing the problem for the product. Threats v Threats from the other organisations and competitors are a significant threat that may create hindrances in its way. v More innovation is a real risk which may create problems after the product is launched. v Supply of the raw materials is another significant problem that may affect the organisational problems. Table 1: SWOT Analysis Identifying the opportunities of this energy drink by using STP analysis: STP refers to the segmentation, targeting and positionining of the new product. Here, the marketer needs to analyze the market opportunities of the product within the industry of energy drink. STP analysis can be very helpful for identifying the potential group of the customers within the particular market of the industry (Wood et al. 2013). Segmentation: This process of segmentation is included within demographic, psychographic as well as geographic and socio economic sector of the market. For the product Red Energies the segmentation can be of following types; Demographic segmentation: The market can be divided within the groups of age, income, gender and occupation of the people within the society. Here, for this energy drink, the age of the customer can be considered as between 16 to 35. Generally, male is the targeted customer of this energy drink. Income group of the customer group can remain in medium or high income. The tendency is towards high income people among the group of the customers who belong from student, service as well as business occupation within the society (Barnes et al. 2010). Psychographic segmentation: Customers who lead high lifestyle, ambitious for any type of situation can be considered as the targeted customers of Red Energies. Geographic: People from city and city-based areas have been considered as the potential as well as loyal customers of this energy drink. The marketers of this energy drink can also consider the people who come from semi urban area of United States. Socio economic segmentation: The marketers of Red Energies can attract the people who belongs to high profile job among cities of United States. The purchasing power of the people should remain within high and medium high limit. Targeting: In the demographic segment, this energy drink mainly can target the teenagers as well as young generation of the market. This energy drink also targets young adults of 22 to 36 years of the market. In the psychological segment, the company can attract the students, working professionals of enthusiastic people who are loyal as well as medium loyal to the company through this newly launched product. In the geographic segmentation, this energy drink can attract the city-based people who belong to a high and medium socio economic zone of the society (Cai et al. 2013). Positioning: However, the price will be medium high for selling the new energy drink to the customers. In the positioning purpose of this energy drink, extensive levels of media campaign is very essential as well as necessary for the effective positioning of Red Energy. As this product targets young generation of the society, digital marketing technique will be considered as one of the important positioning strategies of this energy drink. The marker can promote this energy drink through extensive social media marketing using popular tools like face book, twitter, instagram and blogging. Apart from this, the company can use outdoor media like hoarding, digital sign within the places of movie hall, office premises and college area of various cities of United States (Choi et al. 2012). Implementation of the Marketing Mix Attributes Description Product As it has so far discussed that Red Energy is a sophisticated and prestigious product which helps in attaining the US market as a whole. In comparison with the other products available in the market place, Red Energy is a significant one that targets the common athletes and body builders generally. As it cuts the calories short and helps common people feel energetic by removing their fatigue, it is expected that more people will be fascinated by this product. Price Red Bull to attain the market advantages has decided to keep the price of Red Energy low that any other available energy products in the market place. Having a low piece, it is expected that more people will get fascinated by the product. The price of the product is also a significant issue that helps in attaining better cohesion in the market place (Fang et al. 2012). Place In order to market the products, place also appears to be an intrinsic issue for the development of the market place. Place is also a significant approach that determines to be developed intrinsically. Place is also a significant issue for the marketing development. Place also helps in managing the organisational statistics in the market place. Places to promote Red Energy are also an essential from of development. Places for development of this approach are helping in strategizing the significant issues. Place determines to be significant approach which constitutes in the strategical development of Red Energy. Promotion Red Bull has decided to promote the products through social and digital media. Facebook, You Tube and other social media has been decided to be used for the promotional approaches. At the same time, it is also decided that the organisation will also promote Red Energy through newspapers, magazines and other advertisement areas as well which helps to reach to the maximum number of people in the market place (Gallagher et al. 2010). Promotion through the own website of Red Bull is also getting in order. Promotion helps in developing in maintaining better cohesion in the market place. Promotion also appears to be quite intrinsic issue which attempts to be the unique approach in the organisational development. Satisfaction of goals and objectives of Red Energies: Red Energies is a newly launched company in the market of United States. The company has made the next five years marketing plan of Red Energies. To find out the satisfaction level of the company, the following points are discussed to measure the performance of the product in the market and the demand of the market in the United States market (Gauzente and Roy, 2012). a) Key Performance: If the management of the company tries to measure the goals and objectives, then the management of the company should measure the performance of the company in the market. The management of Red Energies should measure the cost of the product and the sales volume of the product. This will help the management of the company to find out the profit percentage of the company. If the company earns more profit margins by selling the product, this shows that the demand of the product is high in the market (Goldsmith et al. 2010). b) Customers Feedback: The management of the company should take feedbacks from their customers to know about the quality of their product. If the customers are satisfied with the quality of the product, then the demand of the product will be high in the market. c) Employees Feedback: The management should take a feedback from their employees to understand the demand of the product by their customers in the market. If the customers are satisfied with the quality of the product, then the demand of the product will be high in the market. Determination of Success or Failure: Depending on the demand of the product in the market, the management of the company will understand the success of the product in the market or failure of the product in the market. If the product margins of the company gradually increase, it means that the demand of the product is high in the market. If the profit margins gradually decrease in the market, it seems to be that the demand of the product is low in the market. Performance: Key People Responsibilities Finance Manager The Finance Manager of Red Energies took the responsibilities of calculating the financial conditions of the company. Operation Manager The operation manager of the Red Energies took the responsibilities to improve the operational performance of the company. Promotion Manager The main role of the promotion manager of the Red Energies is to promote their product in the market. Market Analyst The main role of the market analyst is to analyze the demand of the product in market. Sales Manager The main role of the sales manager of the Red Energies is to improve the sales volume of their product in the market. Financial Performance Metrics: Sales versus profit: The sales are calculated for the company for the next five years. The selling price of the product is in linear progress. The initial year sales of the company are USD 100,000. The price is increased by 3 % in every year. In addition, the cost of the product includes operating cost, production cost and administrative cost of the company (Gurau,2012). The cost of their product varies in every year due to change in inflation rate. If the inflation rate varies in every year then the cost price of their product varies. This will lead to change in the profit margins of the company (Hu et al. 2009). Market Growth: The management should take a feedback from their employees to understand the demand of the product by their customers in the market. If the customers are satisfied with the quality of the product, then the demand of the product will be high in the market. The management of the company should take feedbacks from their customers to know about the quality of their product. If the customers are satisfied with the quality of the product, then the demand of the product will be high in the market (Ha et al. 2011). Customer Relationships: The management should take a feedback from their employees to understand the demand of the product by their customers in the market. If the customers are satisfied with the quality of the product, then the demand of the product will be high in the market (Hartmann et al. 2009). Social Responsibility: If the management of the company tries to measure the goals and objectives, then the management of the company should measure the performance of the company in the market. The management of Red Energies should measure the cost of the product and the sales volume of the product. This will help the management of the company to find out the profit percentage of the company. 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