1. Week 6 Assignment 2 - Submit Here Instructors, training on how to grade is within the Instructor Center. Assignment 2: Marketing Plan Due Week 6 and worth 100 points This assignment consists of two (2) sections: a marketing plan and sales strategy, and a marketing budget. Note: You must submit both sections as separate files for the completion of this assignment. For the first six (6) months your company is in business—to give you time to perfect your product and to learn from actual customers—you will start marketing and selling in your own community, a radius of twenty-five (25) miles from where you live. For most non-alcoholic beverages, marketing (as opposed to the actual product itself) is key to success. Cola drinks, for example, are fairly undifferentiated, as are many energy drinks, juices, bottled water, and the like. Companies producing these types of beverages differentiate themselves and attract market share through marketing and brand awareness—both of which are critical to success. Section 1: Marketing Plan & Sales Strategy (MS Word or equivalent) Write the three to five (3-5) page Marketing Plan & Sales Strategy section of your business plan, in which you: 1. Define your company’s target market. • Analyze the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Support your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). • Outline the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Click here for help accessing a specific page number in your eBook. o Hints: At American FactFinder (http://census.gov), you will find demographic information on potential consumers in your area. If you are selling through other businesses (such as grocery stores), indicate the number of those businesses in your local area. You will find information about such businesses in your local area at County Business Patterns (http://www.census.gov/econ/cbp/). Check Chapter 2 of Successful Business Plan for more research sources. 2. Assess your company’s market competition. • Use the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. • Defend your strategy to successfully compete against market leaders in your segment. o Hints: For example, in the soft drink market, it is intimidating to try to compete against Coke and Pepsi. Newcomers in mature markets typically must pursue niche markets or even create new market categories, as Red Bull did with energy drinks. • Defend your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). o Hints: Every business faces competition and the non-alcoholic beverage market is an especially crowded market. 3. Clarify your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). o Hints: Before you choose your marketing vehicles, you must determine the message you want to convey through those vehicles. 4. 5. Identify the marketing vehicles you plan to use to build your company’s brand. Justify the key reasons why they will be effective. Provide examples of other non-alcoholic beverage companies that use these tactics effectively. • Hints: If you plan to use online marketing tactics, refer to the worksheet in the text (p.171 | Online Marketing Tactics) to aid your response. Remember that even if you’re selling through grocery stores you need to build your brand and social media is a major part of that in regard to beverages. Some of the marketing tactics that beverage companies use include: sampling in grocery stores, building a following on social media, sponsoring events, exhibiting at trade shows attended by retailers, and so on. You will use a combination of these tactics. For example, if you decide to give out samples in grocery stores, promote your sampling on your social media networks and those of the grocery store. • Hints: If you are planning to distribute through resellers, describe how you plan to reach them, for example, through industry trade shows or by establishing your own sales force. For information on trade shows, visit the Trade Show News Network (http://www.tsnn.com). You can exhibit or network at these shows. Format your assignment according to these formatting requirements: Cite the resources you have used to complete the exercise. Note: There is no minimum requirement for the number of resources used in the exercise. b. Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. a. c. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length. Section 2: Marketing Budget (MS Excel worksheets template) Section 2 uses the “Business Plan Financials” MS Excel template (see: Course Required Files in Week 1). Use the “Business Plan Financials Guide” (see: Course Required Files in Week 1) to support your development of the Marketing Budget. 6. Complete the Marketing Budget worksheet for your company. • • • • • • Hints: The goal of the marketing budget is to help you determine how much it will cost you to reach your market and achieve your sales goals. Hints: When filling out the “Marketing Budget” worksheet in the Excel spreadsheet: Begin in the current year and complete a marketing budget for the first year of your business. The information you enter in the marketing budget spreadsheet will flow through to your “Income Statement” in the Business Plan Financials. Leave the number at zero (0) for any marketing vehicles you do not intend to use. Remember that all marketing activities involve costs. If social media represents a significant portion of your marketing, assume you will have cost of advertising and that should be reflected on your budget. Even if a social media site charges nothing to use it, you will need to use company resources to manage the site, pay someone to execute your social media marketing campaigns, and will most likely pay for ads on that site. Do NOT leave the “Marketing Budget” blank, assuming you will not have any marketing costs. The specific course learning outcomes associated with this assignment are: • • • • Recommend effective business strategies based on an analysis of domestic and global operating environments, market dynamics, and internal capabilities. Analyze competitive positions including foreign market entry and the resulting impact on business strategy. Use technology and information resources to research issues in strategic management. Write clearly and concisely about strategic management using proper writing mechanics. Points: 100 Assignment 2: Marketing Plan Unacceptable Fair Proficient Exemplary Criteria 1a. Analyze the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Support your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Weight: 5% 1b. Outline the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Weight: 5% 2a. Use the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Weight: 5% 2b. Defend your strategy to successfully compete against market leaders in your segment. Weight: 5% 2c. Defend your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Weight: 5% 3. Clarify your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). Weight: 20% 4. Identify the marketing vehicles you plan to use to build your company’s brand. Justify the key reasons why they will be effective. Provide examples of other non-alcoholic beverage companies that use these tactics effectively. Below 70% F 70-79% C 80-89% B 90-100% A Did not submit or incompletely analyzed the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Did not submit or incompletely supported your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Did not submit or incompletely outlined the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Did not submit or incompletely used the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Did not submit or incompletely defended your strategy to successfully compete against market leaders in your segment. Did not submit or incompletely defended your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Did not submit or incompletely clarified your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). Did not submit or incompletely identified the marketing vehicles you plan to use to build your company’s brand. Did not submit or incompletely justified the key reasons why they will be effective. Did not Partially analyzed the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Partially supported your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Satisfactorily analyzed the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Satisfactorily supported your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Thoroughly analyzed the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Thoroughly supported your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Partially outlined the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Satisfactorily outlined the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Thoroughly outlined the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Partially used the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Satisfactorily used the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Thoroughly used the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Partially defended your strategy to successfully compete against market leaders in your segment. Satisfactorily defended your strategy to successfully compete against market leaders in your segment. Thoroughly defended your strategy to successfully compete against market leaders in your segment. Partially defended your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Satisfactorily defended your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Thoroughly defended your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Partially clarified your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). Satisfactorily clarified your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). Thoroughly clarified your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). Partially identified the marketing vehicles you plan to use to build your company’s brand. Partially justified the key reasons why they will be effective. Partially provided examples of other non-alcoholic Satisfactorily identified the marketing vehicles you plan to use to build your company’s brand. Satisfactorily justified the key reasons why they will be effective. Satisfactorily provided examples of other non-alcoholic Thoroughly identified the marketing vehicles you plan to use to build your company’s brand. Thoroughly justified the key reasons why they will be effective. Thoroughly provided examples of other non-alcoholic Weight: 20% 5. Clarity, writing mechanics, and formatting requirements Weight: 15% 6. Complete the Marketing Budget worksheet for your company. Weight: 20% submit or incompletely provided examples of other non-alcoholic beverage companies that use these tactics effectively. More than 6 errors present beverage companies that use these tactics effectively. beverage companies that use these tactics effectively. beverage companies that use these tactics effectively. 5-6 errors present 3-4 errors present 0-2 errors present Did not submit or incompletely completed the Marketing Budget worksheet for your company. Partially completed the Marketing Budget worksheet for your company. Satisfactorily completed the Marketing Budget worksheet for your company. Thoroughly completed the Marketing Budget worksheet for your company. Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric. Tropi-Boost Juices Description and SWOT Analysis Tropi-Boost Juices Description and SWOT Analysis. Guerlen M. Goenaga April 23, 2017 Dr. Henry Kerich BUS599 - Strategic Management Strayer University 1 Tropi-Boost Juices Description and SWOT Analysis NAB Company Name and Significance. Tropi-Boost Juices is a NAB company operating out of Tampa in the state of Florida. Tropi-Boost Juices offers high end quality products that distinguish itself for the freshness, tropical taste, nutritional value and energy booster properties that each juice bottle provides. The company name indicates a taste that will make you feel like you are in a tropical beach giving consumers a pleasurable break in their busy lives, and that the product has the energy boost consumers need to accomplish their daily activities. The drink has the perfect mixture of vegetables and fruits to provide the daily required vitamins and minerals. In the 5 year plan the company has planned different flavors as a result of different mixture of tropical fruits and vegetables. The current beverage is called Exotic Tropic (energy booster natural juice). When coming from Cuba took me several years to drink juice, even orange juice since I was used to drinking natural juices without preservatives, artificial sugars and/or flavoring. The idea of creating this product came from wanting to provide this healthy experience to people that have not been able to drink natural energy booster drinks at any time they desire. The company will be located in Tampa, FL because is my home town and it has a very positive aspect that it is rich in diverse culture. This was a crucial factor in making the decision to start up the business because a natural and healthy juice is appealing to many different cultures (Race and Hispanic origin, 2015). Being Tampa a diverse culture town opens up the market for the product even more. The marketing and selling operations will start in Tampa which is 170 square miles. Tampa also has adjacent towns that are in a growing sprout. Young people are aiming for better and healthier drink and food choices. A high number of the population are Hispanics and/or descendants that miss their country, the freshness and taste of the tropical fruits. 2 Tropi-Boost Juices Description and SWOT Analysis The price of Exotic Tropic will range from $2.79 to 2.99 for 8oz bottle depending on the sale location. Mission Statement We are committed to offer a fresh and revitalizing product that replenishes your body from inside out. A healthy drink with the daily requirements of vitamins and minerals that will energize you in a natural way. The company strives for a high quality product to provide a healthier and enhanced drink option. To Tropi-Boost Juices the consumers’ well-being is imperative and that’s why we make sure we use high quality ingredients. We want to inspire people to make better and healthier dietary choices and to enjoy their days to the fullest. Our aim is to provide a wonderful experience in a bottle. The flavor of the exotic fruits of the tropical regions will transport consumers to the Caribbean. The company’s niche is: “To nurture you from inside, one flavorful drink will do wonders.” Trends in the Non-alcoholic Beverage Industry The trend for convenience keeps growing without at end goal in mind. Years ago it was Millennials who wanted the convenience of buying online, eating out, ordering food, buying microwavable meals, etc. When looking at convenience trends today, it can be said that is not about the Millennial generation anymore. Technology has made the need for convenience even higher making different generations have more choices at their fingertips. This trend can be experienced in any market or field. Technology has provided resources to make people aware of what they eat/drink and motivate them to make healthier choices by providing information at any time. For instance, organic ingredients, less sugar in the drinks, reduced calories drinks, etc . It is because of the fast pace life we are experiencing that making bad food and/or drink choices can be common. 3 Tropi-Boost Juices Description and SWOT Analysis The market is changing and an example of that is Coca-Cola. The Coca-Cola Company released the first quarter results on April 25, 2017 announcing net revenue declined 11 percent to $9.1 billion. The company changed its focus from driving volume growth to driving revenue growth and that’s why they gained value share in dairy, sparkling soft drinks, plant-based beverages and juice. The beverage industry have been shifting its focus as the trend for healthier drink choices increases (Coca-Cola releases first quarter results, April 25, 2017). In 2016 Evergreen Packaging worked with EcoFocus Worldwide to conduct an independent survey to examine the trends impacting the food and beverage industry with a study base of 4,000 U.S. consumers from 18 to 65 years old. The survey concluded that the consumers demand for beverages that offer benefits and are multifunctional will increase. In addition, industry leaders should expect an increase in the demand for beverages that offer immunity and energy booster, manage blood sugar, sleep aid, satiate the need for refreshment, etc. (Four Key Beverage Industry Trends for 2017 are Changing What Consumers Buy, January, 2 2017). Consumers lately are in the search for drinks that are multifunctional. For instance drinks that fueled their body with nutrients, energy and with meal replacement capabilities. BevNet informs that carbonated soft drinks category is expected to have a continuous decline in the next five years while the natural and organics drinks demand will increase. Consumers keep purchasing healthier drinks options and its accounting for 40% of the NAB beverage industry. More than 50% of the consumers that go grocery shopping looking for a healthier beverage are seeking for a good source of calcium, fiber, antioxidants, Omega-3, proteins and contain low sugar levels (Evergreen Survey, 2017), Other aspects that are changing the NAB beverage industry is the artificial sweeteners concerns that have been rising and that energy drinks are becoming more popular. 4 Tropi-Boost Juices Description and SWOT Analysis This type of non-alcoholic beverage was chosen because it is a healthier drink choice and the number of consumers looking for healthier drink choices keep climbing. Also, because provides the vitamins and minerals needed on a daily basis and fuels the body with what needs to provide a natural energy boost. The market for energy drinks keeps growing even though is not the healthiest option. Last but not least, this non-alcoholic beverage is good when is ice old or room temperature which makes it a convenient option to substitute a meal and/or snack because it fits the demanding life style that is trending. Nowadays, making healthier and better drink and food choices is a lot more complex than we think. It is challenging to achieve a balanced diet throughout the day with the rush and different schedules in a household. Strategic Position Tropi-Boost Juices goal is to become a leading natural and healthy beverage company in Tampa. The company strategic position will emphasize the competitive advantage/differentiation strategy it has because of the quality, convenience and price that offers. The convenience for the strategic position was decided after looking at the target market and the beverage industry trends (Abrahams, 2014). The target market are the Hispanic consumers in the area that miss the taste of a good natural tropical flavor drink, the consumers that live a high paced lifestyle and are always missing meals or snacks because they don’t have access to healthy options and the consumers in general that are looking for healthy drink options. Most vending machines are full of sodas and snacks full of sugars. There are several competitors in the area but are a lot more expensive because they are individually own stores. Prices range from $4.95 to $7.00 for one bottle/glass of 10oz but with a regular and well established clientele. Since there is already competition it is expected that they will exert pressure and the business will have a slow 5 Tropi-Boost Juices Description and SWOT Analysis beginning. The company will have to work hard to gain and maintain customer loyalty. This is done by providing value and quality to the consumers. Distribution Channels At the beginning we will go directly to the main supermarkets chains in the area since they reach a larger market. Next steps is to build a website where consumers can order the product and depending on the amount ordered we would offer discounted shipping options for the local distribution. The website will be closely managed and at the beginning it will be managed by the founders or executives. Since one of our goals is to make the product available at any time the following stage is to take our products to drugstores like Walgreens and CVS, gas stations and privately owned supermarkets, college campuses, gyms, etc. At the beginning to reduce cost, the company will take care of the distribution. Starting with one cargo van and a box truck. As the business grow the company market and distribution strategies will grow as well. The five year plan will be implemented as the business grow. New ventures can grow faster or slower than projected. Risk Management There are risks in any business and that’s why risk management is such an important function to make the businesses successful. Most of the time changes in a company come accompanied and/or are the result of a project. In order for the company to be successful these projects need to be successfully executed by effectively managing the many risks that could emerge. The most important part in managing risks is not only to determine all risks but to be able to differentiate the impact of each risk to create strategies in order to prevent them from arising and to battle them in case they surface. The top four risks identified were competition, 6 Tropi-Boost Juices Description and SWOT Analysis unknown product/afraid to try it, regulations and target market. The table below stated the actions to take to prevent these risks from arising. Risk Management Matrix No. 1 Risk Competition Risk Level High Actions Products need to be have a competitive pricing and have them in convenient locations. 2 Unknown product / Provide samples at stores and at the city’s High afraid to try it. 3 Regulations markets and events. High Safeguard that all licenses, clearances and approvals are received in a timely manner. For instance, ingredients and nutrition label approved by the FDA. Ensure ingredients are continuously inspected. 4 Target Market Moderate Provide samples at stores and at the city’s markets and events. Visit sales locations to offer samples and educate consumers on the product. SWOT Analysis Strengths • Management staff offers great Weaknesses • leadership skills. • Natural energy boost drink • Employees are properly trained. Not having a strong and specific marketing strategy • Local and national competitors may limit the entrance in the market and Internal getting shelf space in some retailers. 7 Tropi-Boost Juices Description and SWOT Analysis • • Received very good feedback from • Similar products in the market. the people that have tried the drink • No brand recognition recipe. • Consumers lack knowledge of the Tropi-Boost Juices is in charge of the product distribution. • • • Price advantage over the competition in the area. • product and everything it offers. Scheduling challenges for demos to promote the product. • Tropi-Boost Juices doss not have a Strong and adaptive business different distributor that can carry on strategy the deliveries in case of unexpected Low overhead. events. • The company needs a temperature controlled warehouse to storage drinks in case the production is slowed down. Opportunities • Potential for new markets. • Market segment is posed for rapid growth. External • • • Improved similar products emerging the market. • Political and economic changes that Develop website page. affect the consumers buying power Get the product in all planned decreasing the demand of the product. locations. • Threats • Major companies in the beverage industry investing on similar products Maintain quality and cost balance and becoming part of the competition. even when supplies costs increase. 8 Tropi-Boost Juices Description and SWOT Analysis • Invest money in advertising and • Having only one place where the social networking ads. production is done. If for any reason • Emerging markets. the production has to be stopped it has • New products to be back up as soon as possible or • Consumers’ healthy trends. there will be no product to distribute. • Not having a marketing and Public relations team to establish a high end customer relations. • City and government regulations. • Changes in the consumers trends. 9 Tropi-Boost Juices Description and SWOT Analysis References Abrahams, R. (2014). Successful business plan: Secrets & strategies. Palo Alto, CA, USA: PlanningShop.Retrieved on April 25, 2017 from https://strayer.vitalsource.com/#/books/9781933895475/cfi/6/2!/4/2/4/2@0:0 Race and Hispanic origin (2015). Retrieved on April 22, 2017 from https://www.census.gov/quickfacts/table/RHI125215/1271000 Coca-Cola releases first quarter results (2017, April 25). Rutgers University libraries, online industry news Retrieved On April 26, 2017 from http://www.bevindustry.com/articles/90173-coca-cola-releases-first-quarter-results Four key beverage industry trends for 2017 are changing what consumers buy (2017, January 2). PR Newswire. Retrieved on April 24, 2017 from http://www.prnewswire.com/newsreleases/four-key-beverage-industry-trends-for-2017Evergreen survey (2017, January 2). Retrieved on April 24, 2017 from http://evergreenpackaging.com/fresh-news/four-key-beverage-industry-trends-for-2017are-changing-what-consumers-buy).e-changing-what-consumers-buy-300384417.html 10
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