The target market
The major market for Grazom
Natural Drinks in the first six months will be the millions of tourists who
visit the Washington-Baltimore metropolitan area. This is within a thirty mile
radius of the company’s location in Annapolis. This is because many tourists are
people with discretionary incomes ready to explore and who fancy the outdoors. Many
others are high fliers who represent federal and international bodies and whose
companies can afford the odd fancy expensive drink.
To order quality, original work for this and or similar paper please skip this way.Tourists to Washington DC alone
are about 20 million annually, contributing about $5billion dollars to the
local economy. The company will target 5% of high spending tourists, about
500,000 tourists.
Grazom Natural Drinks will also target
residents with incomes of $100,000 and above per year in the Washington-Baltimore
area. At about 150,000 people, this population is increasing steadily because
of favourable economic policies such as health insurance and gentrification.
Hence, the total target market size
for Grazom Natural Drinks will be 650,000 people.
Grazom Natural Drinks products are
non-alcoholic juices with low sugar content and natural flavours. The drinks will
appeal to people who appreciate healthy living. Suffice to say most people now
appreciate the importance of good health regardless of age, gender, education
level or ethnicity. This is evident in the fact that many people are shunning
drinks with high sugar content and alcoholic drinks. Income levels and health
awareness will be the major considerations when defining the market.
The company will have promotional
messages that aim to capture some of the market from competing products
existing in the marketplace. Most health conscious people fancy the outdoors
and are likely to be found at sports facilities, hotels and cultural events.
Consequently, the company’s drinks will be marketed at major outdoor social events
such as Road Race America finish in Annapolis and sports events at Camden Yards
in Baltimore. Potential consumers at the National Aquarium in Baltimore, Naval Base
Museum in Annapolis, and the National Mall in Washington DC will also be
targeted.
Apart from being sold at the
marketing events, the drinks will also be marketed and sold at the 500 hotels
with over 100 employees in the Baltimore-Washington DC area with a view to
having at least a hundred of the hotels offering our high quality drinks at
their hotels.
The competition
Market leaders in the
non-alcoholic beverages market in Washington-Baltimore Metropolitan Area are
Coca Cola and Pepsi. However, these offer mostly carbonated drinks that target
different market segments from the niche market that will be targeted by Grazom
Natural Drinks. Indeed the main competitors of the company will be house
mocktails, local juice makers and energy drinks. This is because these drinks sell
in the same market that our niche drinks target. Many of them are healthy
drinks from fresh fruits and are offered at various hotels. Alcoholic beverages
as food accompaniments are also some competition, though their consumption is
on the decrease, especially among health conscious populations.
With increased awareness of
health benefits accrued from healthy drinks, some of the traditional beverage
market leaders have ventured into this sector with new products. However, their
systems are more suited to offering carbonated drinks and products with
similarly long lifespans. They are also reluctant to eat into their core market
and hence have not spent a lot of resources on healthy drinks. Moreover, they
are used to large volume sales to the mass market which may not be forthcoming
in this niche market, hence preferring to have economies of scale elsewhere.
However, Grazom Natural Drinks
will have exotic flavours gathered from different fruits from various places
around the world. It will target an income level that is looking for something
extraordinary, who are willing to pay good money for unique, high quality
products that benefit their health; meeting their nutritional needs and
preventing diseases.
Few hotels if any offer such
drinks, with most similar products being concocted by the hotel. Hotels will
hence appreciate a company that can offer them such unique quality products
that will make them attract more clientele to their establishments.
It is not easy for many companies
to venture into this business because the fruits to make the drinks will be
sourced internationally. The company will identify areas with unique fruits,
encouraging farmers to optimise on production by offering some necessary
incentives a guaranteed market at good prices. Hence many people without a keen
interest and passion will not meet the exacting standards and finances required
to enter and sustain the business.
The company will use a reputable
distribution agency that has the ability to deliver fruits from around the
world very quickly. The ability to source raw materials for the drinks from
different places in the world will ensure that the company is able to add new
unique products by sourcing for even more exotic fruits and mixing them to make
different flavours. This is unlike the mostly local juice makers and hotels which
mostly depend on local fruits.
Modern consumers are sensitive
about provenance by a company. That we will be guiding farmers to optimise the
quality of the raw materials as well as
paying them decent prices will be highlighted by Grazom Natural Drinks to get
an edge over the competition.
The company will recruit well
trained staff that will be well remunerated and motivated. This will include
nutritionists, marketers and sales personnel. Most competitors who offer their
juices and mocktails at lower prices will not be able to do this, making the
company attract and retain the best workers in the
industry.
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Company’s message
Grazom Natural Drinks will mainly
tap into functions, feelings, and future to appeal to the consumer.
The consumer will be reassured of
the functional health benefits accrued from the drink; spending to protect
themselves and their families from an uncertain future in terms of health; with
freedom from the effects of ill health associated with most existing
drinks.
The functional drinks will be
targeted to people with high incomes and hence will promote the self-image of
the consumer as a discerning consumer with extra money to spend. The customer
will be targeted as someone who can be more productive because of taking
healthy drinks.
The consumer will feel that they
are getting excellent value for their money, a healthy treat they deserve for
their money. Overall sense of well-being in the consumer will thus be enhanced.
Consumers and the retailers (hotels)
will also be assured of the continued supply of the
drinks.
Moreover, the promotional
messages will target the hotels who will offer unique drinks suitable for their
high end clientele. They will receive quality products that will save them the
time and logistics of preparing and offering healthy, fresh drinks with natural
flavours.
Credit facilities will also be
extended to the retailers to ensure that their cash flows are not negatively
affected. Good margins will also be offered to the hotels that will in turn push
the products to the consumers at the expense of drinks with lower profit
margins.
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Grazom Natural Drinks will ensure
that the drinks are delivered to the hotels. Stocks at the hotels will be
monitored to ensure just-in-time replenishments.
3.
The marketing vehicles
Many companies market their
non-alcoholic beverages at various social events and also use the social media
to reach the consumer e.g. Coca Cola and Pepsi. Grazom Natural Drinks will be
no different; employing this tried and tested approach to reach the consumers
at major social events in the Washington-Baltimore metropolis. This is because
it is where the outdoor types who fancy healthy drinks will congregate.
Moreover, activities at such events lead to a thirst for a refreshing drink,
and Grazom Natural Drinks will be there to offer a refreshingly healthy
drink.
The company will also hold
promotional events at the place where the drinks will be retailing i.e. the
hotels. The media will be invited to these events to witness the unique drinks.
Through word of mouth and the
media, the nature of the company’s drinks will spread among the residents and
tourists; with the latter spreading the word to other states and nations.
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The company will also use online
marketing because it is not expensive and reaches a wide number of people
anywhere at any time. This will be through Search Engine Optimisation (SEO) of
the company’s website to ensure the company’s visibility by highlighting the
healthy approach in its products.
Paid online adverts will also be
bought and specially targeted to the hotels and consumers through Search Engine
Marketing (SEM).
Social media messages
highlighting interesting, esoteric facts about the industry will be used. These
messages will be linked to the company’s website that will include health
blogs.
References
1.
Abrams,
R, 2015. Successful Business Plan 6th edition: Secrets and Strategies. Palo
Alto: PlanningShop.
2.
Bowman,
D, and Gatignon, H, 2010. Market Response and Marketing Mix Models. Boston: Now
Publishers.
3.
Hooley,
G J, et al., 2008. Marketing Strategy and Competitive Positioning. New York:
Prentice Hall.
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