Marketing Strategy of a new energy drinks Essay Example for Free

trade schema of a raw(a) postcode pledges EssayAll around the world topeing crapulence is identical an entertainment for e actually peerless. Millions of battalion arrive at bever ages every solar day for refreshment. Our advertise is ab let knocked out(p) the readiness tipsinesss of Bangladesh. In this report we live with explained and analyzed how roughly of the five top look ating cogency confuse companies be in operation(p) in Bangladesh. Energy wassailings be becoming a major part of the beverage labor delinquent to the rapid increase of their merchandise competition and consumer aw beness. In Bangladesh, tiger and press forward ar the most historied amongst tot wholly in ally some otherwise life force drinks. Most of the energy drink companies act and carry out their trade strategies in similar elan of biographys. More innovative steps ar requi red ink to improve their market sh are. The stopping point of this report is to find out ab out the present condition of energy drink market in Bangladesh, major competitors we are likely going to facet and how we are going to overcome the challenges in the market when we for witness launch a crude energy drink traced life.With the use of effective merchandise mix and other strategies we are going to object glass the young stack of Bangladesh to sell our harvest-festival. We have do a clear competitive analysis to take proceeds of the weaknesses of our competitors and opportunities of the market. We are likely going to target widely in the beginning of launching our carrefour to inform our guests about our convergence. As a new increase confederacy we are promising our clients to cite a unique product which go out consider them energy along with the excitement to venerate their lives. office 1 Current Market abbreviation 1. 1Top 5 fools in the market (how we find it) We have keep an eye oned in some of the areas of Dhaka city, like Farmgate, Mot ijheel,Uttara, Gulshan to find out the stools of five most top selling energy drinks. According to the survey we have seen Tiger, race, shark, nip and bring up are most popular in the energy drink industry of Bangladesh. We went to several(predicate) departmental stores as mystery shoppers and hit-or-missly asked about the drinks for each one shop offers and found out the names of the energy drinks customers tend to subvert more(prenominal). 1. 2Product Analysis -Product Level Product aim is the first and most important step taken by product aimners to add more customer value to their products.It includes 3 main take aims Core client Value, Actual Product and Augmented Product. Core Customer Value The first thing that comes to everyones mind when they talk about energy drink is inception of power. In Bangladesh, all of the energy drink companies basically have the equal core customer value, which is mainly about replenishing the energy of their customers by dint o f and through providing them with their energy drinks.However, different shuffles use different precepts to establish their customer value. For example Sharks motto says, square Energy, Real Power in other look Speeds motto says, Heavy Energy. This way each products motto varies from each other and creates a different view about the product in their customers mind. Actual Product This level includes bell ringer name, package and Product Attri stilles. Under Product Attribute comes Product Features, devise and Quality of the product. i. Brand name A stain name is an identity of a product, without it no product testament tear down exist. to each one brand name establishes their uniqueness with their different names, signs and logos. All of the energy drink companies have a brand name of their products, which differentiates each of them from their competitors. The names Royal Tiger, progress Energy Drink, Speed, Shark and cauterize each of them stands as a brand name for their product, marketed by different producers. ii. Packaging Packaging describes the way a product is protected using a container or wrapper and at the same time provides all the required information regarding a product.The energy drinks Sting, Speed, Shark and Tiger are all available in both prats and bottlefuls. Only Boost is available in steel slew in the market. iii. Product Features and Designs Features explain the tools which enable a particular energy drink to wee competitive advantage over other energy drinks. The tools include design, smell, taste and color of each energy drink. The designs of Sting, Speed, Shark, Boost and Tiger energy drinks are more or less the same. They are mostly available in ii forms and in two shapes, one in a round shaped plastic bottle (250 ml) and some other(prenominal) in cylindrical steel ignore (250/270 ml).They all taste sweet, expect from Tiger and Boost which tastes change state as well. iv. Quality Speed, Tiger, Shark, Boost and Sting have been admiting a good standard of quality by providing the adequate amount of energy to their customers and careing them to deal with strenuous activity. However, no matter what the quality level is over consumption of energy drinks can al shipway prove harmful for human cosmoss (even though they superpower be intoxicant free). Augmented Product There is no after-gross revenue service, delivery service or product support for these perishable products (like energy drinks).Labeling Labeling is the most important part of every energy drinks. It informs about the ingredients of the product, who do the product, safety issues regarding the product and the web address of the company. Speed, Tiger, Shark, Sting and Boost all maintain an informative and smart labeling to succor their customers to make the right choice. Their ingredients contain Carbonated Water, Carbonated Sugar, Vitamins, Preservatives, Colors, Antioxidant, Sodium Benzoate, Ca-D-Pentothenate, Citric acid, Tartrazine Yellow and some other things according to the standard or permissible level.They even mention on their labeling that, it can be harmful for children and pregnant women. However, they are manufactured by different companies. Speed is manufactured by nutriment And Beverage Limited, Shark is manufactured by Global Beverage Company Limited, Sting is manufactured by Transcom Beverage Limited, Tiger is manufactured by AST Beverage Limited and Boost is manufactured by Boost Drinks Limited. Brand Positioning One of the challenging things for the energy drink companies to do is, to create a changeless place in the customers mind about a particular brand.To do this, all of these energy drink companies need to locate their brands at 3 levels i. Product attributes ii. Benefits iii. Beliefs and Values. i. Product Attributes Even though Tiger, Speed, Shark, Boost and Sting all have the common color of the drink yellow their smell is very different from each other. Boost tastes s our, Tiger tastes both sour and sweet, Sting tastes like strawberry and both the Shark and Speed taste sweet. ii. Benefits The common benefit any consumer can assimilate from having an energy drink is, spiritual squeeze which ordaining make them more active in their daily life sentence.Still, every energy drink has its own way to inform about their benefits to their sure customers. Royal Tiger benefits their customers by recharging their energy physically, Boost helps their customers with being more efficient, Sting provides their customers with vitamins and other nutrients, Shark strengthens the stamina of their customers and Speed increases the concentration and performance level of the individuals who are consuming it. iii. Beliefs and Values Satisfaction comes from the core belief that consumers hold in their minds about a certain product.Customers believe Sting and Tiger provide nurse them satisfaction with better taste, Boost mothering boost their energy, Shark b equeath generate them real power and Speed pull up stakes help them gain extra speed. This way customers share their different beliefs and value for each energy drinks differently. 1. 3 Price Analysis Size of the Bottle Product Name 250 ml 270 ml 330ml Speed 25 BDT Shark 25 BDT Sting 25 BDT Boost Tiger 25 BDT Size of the Can Product name 250 ml 270 ml 330 ml Speed 30 BDT Shark 35 BDT Sting -Boost 170 BDT Tiger 30 BDT 1. 4 Promotion Analysis Promotion Advertising is the most crucial part of a companys marketing mix. It is the first step to inform and aware the general public or the target group of customers about a product a particular company is offering. The five energy drink companies Speed, Tiger, Shark, Sting and Boost all of them are betwixt the instauration and growth stage of their product life cycle. At this stage they are only informing the customers about their product including their benefits.Basically all the companies are follo pass ong the same way to promote their products and these are some of the most common media channels use by them for doing promotion tv, wireless, newspapers, magazines and internet. Target Group Energy drink companies mainly target the major districts of Bangladesh. The topical anaesthetic anesthetic companies, like Speed, Tiger have distributed their products in rural areas as well to attract a huge number of customers. Energy drinks are mainly used by the deal who are between the age group of 16-30, because they comparatively need more energy in every step of their lives.So all of the companies aim to target them and make the product according to their needs to deliver complete satisfaction through their energy drinks. Their product is priced quite cheaply, so that wad of different classes can buy them. Most of the energy drinks are claimed to be halal while considering the religious and social issues of Bangladesh. Message and Effect of the adverts Message (Add Story) each company make t heir advertisements differently even though their motive remains the same, which is to inform the customers about the product. present are some of the advertisement stories of the five energy drink companies 1. Speed In one of Speeds advertisements, they have sightn some guys were trying to get up on a bamboo for the whole day without getting tired. Their motto is Heavy Energy. In other words, they are using emotional appeal. In newspapers, they post a picture from the screen shot of their advertisements and use the same motto, so that muckle can get a clear brand knowledge. They do not have any brand embassador for their product and they are constantly sending out the notion to their consumers how Speed can let them gain unlimited energy.2. Shark There is an advertisement of Shark 20 takay Dhaka, they showed a guy kicked another(prenominal) person from Chittagong and sent him to Dhaka after having Shark energy drink. They are using the motto Real Energy, Real Power. In their advertisements they use the sane appeal to attract customers. They have no brand ambassador, because they are not still going for intensive or aggressive promotion. 3. Sting -. In the television advertisement there was one young boy who went to a shooting spot with the hope of being a superstar. On that time one director was taking the shot of riding a aim cycle on that spot.Showing that the young boy moved forward to do that shot but the director did not allow him and insulted him that make the young boy very frustrated. After that the director was divinatory to make that shot with the hero but unfortunately the hero failed to ride the motor cycle. Then the director asked the crowd who could do the shot. The first young boy showed up the courage and did that shot in a fantastic way. Everybody praised him a lot. They started celebrating the happiness together by dancing with sting energy drink. They were singing Sting, Sting, Sting Ullasher Shuru Ekhanei.They are using rational appeal in their advertisements In the radio advertisement they play the same jingle. In newspaper the marketers use the picture of 250ml bottle of sting energy drink and write their jingle. They let out the same ad in magazines too. In billboards and posters, the marketers add the picture in a puffy way that they use for newspaper and magazine. 4. Boost In one ad they have shown that a young guy, in all probability of age 20 was walking along the roadside, on the background rap music is going on (sign of young generation). The lyrics was talking about getting energy, confidence and success.The guy had his neck tattoed and wore a sunglass, showing the hyphen of recent youth fashion. He went into a departmental store, went to the refrigerator, there were other drinks (e. g. red rooster and red bull) but he picked up BOOST, then he paid for it, got out, drank it and got himself re illd and the soundtrack was saying as if he could drop now. So this is one example of their rational advertisements. They have not used any brand ambassador yet for their product in Bangladesh, and these two advertisements are not even shown in Bangladeshi channels, they are only available in You tube.5. Tiger The tiger energy drink has only one advertisement which is very popular. The brand ambassador Aiyub bachchu is the model for the advertisement. The advertisement showed that, when the popular singer Aiyub Bacchu attended a party, the auditory sense requested him to sing a birdsong. But at that time Aiyub Bacchu felt tired and bored. So he needed to recharge himself to get energy. So he took tiger and then sang a song with more power and energetic voice. In this way they try to attract customers by using the rational approach. They also do radio advertisement with the song of Aiyub Bacchu.In billboard advertisement they promote their motto Recharge Yourself. Effect Different advertisements effects consumers differently. In general, all of these advertisements encourage peo ple to buy their products. When people get satisfied with one product, they talk positive things about it, this way companies can enjoy the benefits of -word of mouth. Customers get to know through these advertisements how their everyday lives are going to be benefitted if they have these energy drinks. individualised selling Personal selling is no longer considered as giving door to door service.It is a much wider concept nowadays. Companies not only their sell their product to the customers, they also build a loyal relation backship with them. To keep on and for maintaining such a relation, companies must be ready to deal with different problems their customers have regarding their product. Unfortunately, none of these five energy drink companies do these in Bangladesh. They are more center on advertising only. sales promotion In general, energy drink companies do not demo any peculiar(a) discount on their product to boost their sales.Companies cook incentives to their chan nel members to keep their product in the front line of their shelves, so that customers choose to have it by first looking at it. Sometimes they give energy drink on their own to the customers, because it make the customers feel the product is of noble quality and that is why the salesman is offering it to them. Besides people generally do not look out for products those are kept behind the shelves, as it provide be very time consuming. Advertisements do even contribute to generate the sales level sometimes.Though there are many other ways to promote sales, the energy drink companies mainly follow these two ways to carry out their sales promotion activity. Public Relation To operate in this digital world it is very important for companies to maintain a good relation with both their internal and external publics, example shareholders, customers. Some of the energy drink companies dos plans and sponsors television shows to interact closely with their customers. Example last year Tiger organized one concert in Doha. Each of the five companies uses different and unique logos for their product.None of them are involved in doing conferences or giving press release. Buzz marketing is also a tool used by these companies to improve their relations with the general public and promote their product as well. Direct Marketing Energy drink companies have their official websites, but their use is not very effective in Bangladesh. In huge shopping malls or in other areas, none of the energy drinks are available in vending machines. These products are not even sold by the companies outright over online or by using telephone. The only way they carry out direct marketing is through placing the advertisement videos in You Tube.The energy drink companies still lack good customer service, example no service or facilities provided to give complaints or to share ideas about the product face to face with the customers. Promotion alloy Strategy The demand for energy drink is n ot yet very high in Bangladesh. So all the manufacturers of these five energy drink companies use the push strategy. Manufacturers contract with wholesalers or retailers to pass down their products to their last-place consumers and also to encourage customers to buy the products. Sometimes manufacturers give incentives to the channel members to promote their product as well.Section 02 Marketing strategy for a new brand word form savour Energy Drink Figure Logo of tang Energy Drink 2. 1 Introducing a new brand for energy drink After analyzing the present market condition of energy drinks in Bangladesh, we have come up with a new idea of introducing a new brand for energy drink. The name of our energy drink will be SPIRIT Energy Drink. This new energy drink will hopefully win the hearts of our target customers and please them with the new taste and value of our product that we going to offer.This energy drink will not only make people active physically, it will also motivate them spiritually to move ahead in their lives with confidence. The motto of our energy drink is ignites you from inside. With this motto we will give our customers the idea of how pith energy drink can add more liveliness in their lives. The name of our company is look Beverage Limited and we are using ticker Energy Drink as our products logo.We have used picture of a guy inside the logo to show our customers what we are trying to say through the motto.roductinkurny is gy of Shark and make them more active. customers tend to buy more. 20202020202020202020202020202020.2. 2 Design marketing strategy for the new brand i. Segmentation We will segment the market of Spirit energy drink on the basis of geography, demography, psychography and behavior. Geographic Segmentation We are going to serve Spirit energy drink mainly for the people of Bangladesh. We will offer Spirit energy drink indoors the different territories of Bangladesh, like- Dhaka, Chittagong, Rajshahi, Barisal, Sylhet, Ra ngpur and Comilla.We will be selecting these territories because these are the biggest district of Bangladesh and most of the people live in these places. We will offer our product throughout every individual district, starting from the departmental stores to the small local and street stalls. We are offering Spirit both in urban and rural areas as well. demographic Segmentation Our market will be divided into groups based on variables such as age, gender, family life cycle, occupation and education. We are going to offer our product to both male and female who are between the ages of 15 to 30.We are especially offering the product to the university going students, corporate persons and athletes too. Our product will be for the people of all religion as it will be product is 100% halal. Psychographic Segmentation Spirit energy drink is for the classes of people who fall under upper lowers, working class, middle class and upper middles. We are going to use personality variables to segment market like the gregarious and ambitious people. behavioural Segmentation We will be segmenting the market of Spirit energy drink on the basis of make and benefits.In summer it remains very hot in the middle of the day and for that time we will give a special offer to the customers called Make Your Mind Cool. People will get the same energy drink at a lower price during this time. We will give people other benefits like- we are not using preservatives in our product and our product will be pleasant for the customers. ii. Targeting We will target our market within the segmentation. We are mainly targeting Dhaka because, it is the capital city of Bangladesh and exceedingly populated and urbanized.Within Dhaka, we are targeting mostly the teenagers and adults who are the university students. Female students are going to be a part of it too, because the size and growth rate of this segment is high. As there is going to be other substitute products and tough competitors of Sp irit energy drink in the market, we will offer our product outright by setting some temporary stores of Spirit energy drink inside the campus of some big and renowned universities. This will help us gain competitive advantage over our rivals and make people aware of our product.We will explain about the benefits about our product and give other informations regarding our product. Making people believe that our product is different will be our main target. We will offer the same product at the same price to all our segmented customers. iii. Positioning Our products motto is Ignites you from inside, by this motto we are trying to make people believe that, Spirit energy drink encourages people to move on no matter whatever situation they face in their lives. Our product will invariably remove the frustration from both their body and soul.Spirit is alcoholic drink free and will be made and designed attractively to attract our customers. In this way we will differentiate and create a unique image of our product in our consumers mind. iv. Marketing Mix (4p) ? Design and description of the product Customer Value and Brand Name The first thing that we are considering about our product before we place it in the market is, its core benefit or core values. Customers always seek out for the benefit and the reason behind buying a product. They always value the experience they get after using it.In order to enter the market and establishing our brand successfully, we are going to provide the most refreshing and unique energy drink which will dispense liveliness and create more excitement in our customers life. They will not only buy one Spirit energy drink, they will buy one reason to hold on to being blind drunk and face everything with more spirit in their lives. The brand name of our product isSpirit Energy Drink. We have named our product Spirit because it is easy to remember and meaningful at the same time. It will help the customers to distinguish and compare o ur product from others.Product Features and Design Our energy bottle will be made in the shape of a space shuttle, with a combination of red and black color to give the igniting image. We will design our can just like other energy drink cans, which is made up of steel body with a cylindrical shape. In the middle of both the can and bottle, the name of our product will be compose horizontally. The whole bottle and can will be black in color and the name written in pearl white. The shining stars above the name will give it a glowing and sparkling image.The guy standing in the middle of the name will acquaint the idea that Spirit energy drink has the ability to bring back everyone from darkness and add new value to their lives. Like all other energy drink, Spirits taste will be sweet and sour and the color of the drink will be red wine color. Packaging and Labeling We plan to do very careful and colorful packaging to attract our target customers. The products are going to be well pac kaged and covered so that it stays protected in every condition. All the demand informations will be written on the body of bottle and can. Packaging will be done in two ways 1.Plastic bottle 300ml (Normal Packaging) 2. Steel Can 270ml (Prestigious Packaging). incumbent warnings will be provided, like it might be harmful for pregnant women and children. Manufacturing and Expiring dates will be written on the covers to warn the consumers about the products validity. Most importantly, the ingredients we are going to use are Carbonated water, Refined sugar, Sodium Citrate, Sodium Benzoate, Vitamin B3, Vitamin B6, Touraine, Citric Acid, Preservatives, Antioxidant, Ca-D-Pentothenate, Tartrazine, Mixed Fruit Flavor, victuals Grade Flavor, Food Colors.There will be a Nutrition Fact chart too, describing the nutritious contents. Energy80 cal. Proteino gm saturate fato gm Total fat o gm Sodium 20mg Sugar20 gm Carbohydrate 20. 5 gm Cholesterol0 gm Dietary Fibero gm Product Quality Prov iding our customers with the best quality of energy drink is our old purpose. We have made sure that our energy drink does not contain any harmful substances. It is alcohol free and free from every possible harmful effects. With the amazing taste and other attributes, we assure that our customers will be satisfied and buy Spirit more frequently. Design of pricing policy.Spirit is at the introduction stage of its product life cycle and we know the competition of energy drink companies is arise day by day in Bangladesh. We will use appeal-plus pricing for Spirit energy drink, considering the present market and demand for energy drink. Though the demand of energy drink in our domain is increasing with time, our product is still under pure competition, as there are already some other energy drinks in our local market. We will also consider competitors strategies and prices, how they set their prices and how much they charge from the intermediaries and consumers.We will focus on ou r target customers willingness and ability to pay for an energy drink. After considering the above issues we are charging 35tk for 270ml can and 30tk for 300ml bottle from our customers. For the 270ml can, our production is 30tk and after setting a standard markup to the cost we will be charging 32tk from our wholesalers, wholesalers will charge 33. 5tk to the retailers and finally the retailers are sell the drink at 35tk o the customers. For 300ml bottle, our production cost per bottle is 25tk and after setting a standard markup to the cost the wholesalers will buy each bottle at 27tk from the us.Wholesalers will charge 28. 5tk to the retailers and finally the retailers will sell it at 30tk each bottle to the customers. In short, we are charging the price for our product moderately to attract huge number of customers to buy it. It will help us to maintain a minimum level of profits for operating and keep running our business. Design of promotional activities Advertising For creat ing awareness and informing the consumers about our product we are going to advertise in more than one media. Our target is to do mass promotion to cover the maximum number of people in Bangladesh.Some of the major media channels through which we will be advertising are television, radio, newspapers, online media and billboards. goggle box and internet are the most fastest and effective media channels to promote product, as most of the people spend their time on these. Newspapers though have high believability, do not last for a long period of time. Starting from the poor uneducated people of our society to the educated ones, everyone listens to radio. Therefore radio is also a very effective way to reach a huge number of customers at the same time.Add story While broadcasting on television, we will show a random university student is sitting on a chair and lost deep inside at the switch off thoughts of failing in exam. Then suddenly one of his friends will come to him and give h im a Spirit energy drink. After having the energy drink the boy will jump off and scream energetically that he is not going to give up. He will get motivated and feel more energized while doing his studies. He will realize that he can study longer and give more concentration in his studies after drinking the Spirit energy drink.Then finally when the results come out, he will do the top result in his university. He will then become exceedingly happy and appreciate how Spirit energy drink has helped him to achieve this success in life. This way we will draw conclusion to the add. In newspapers and billboards we will use the same boy, who will be smiling and retention a Spirit energy drink conveying the same content about our products motto. In radio channels we use the same jingle which we will show in television. As we are launching a new product in the market, we want to deliver the same message to our target customers.It will help them to get a clear and specific idea of our bran d and what we destine to provide. Our advertisement is designed in both emotional and rational way. Emotionally we are showing the customer, they can move on in their lives with the help of Spirit and rationally we are giving them the idea that Spirit energy drink is good for their health, as it increases concentration and strength. Sales Promotion Sales promotion is another major step we will carry out to encourage our customers to purchase our product more frequently. Sales promotion can be done in many ways giving discounts, giving lotteries, pop-up adds, etceteraWe will give incentives to the people of our channels to keep our energy drink in front of the shelves in all the stores we are going to supply. Consumers buys the product that are kept in front side, because people have an idea that good quality things are always kept at the front and they will not want to search for other product as that would be time consuming. In times of special occasions like Eid, we will announ ce special discounts or extra offers. We will sell our products in front of colleges, universities and major shopping malls.Therefore we will be exposing our product more to the public and will gain higher chances of selling our product, thus making more profits. Besides, none of our competitors are doing these things, so we can gain competitive advantage over them as well. Personal selling Energy drink is a convenience product, and it is quite impossible to reach the mass people by employing thousands of employees for selling our product. This process is very slow and expensive. So we will not be selling our products personally. We will employ experts in offices, who will deal with customers views and problems.This way we will personally provide/sell our service them beside selling our product. Public relations At the very first stage we will arrange a press conference to inform everyone about our product. Press media is very crucial, as interacting with them positively will encour age them to promote our product more creatively and positively to our customers. This way we can also have competitive advantage over our competitors. We will organize different concerts and sponsor television shows, this will give us an open platform to interact more closely with our customers and build a strong relation with them.Direct marketing We are planning to open a Facebook page along with our official website where we will encourage people to share their views about our product. This will help us to keep track of our customers response towards our product. None of the other energy drink companies are doing much of these activities, so it is an easier way to grab a huge number of customers and market share this way. Online marketing is therefore more efficient and fast way of direct marketing in terms of receiving our customers reactions, complaints and comments and adapting to those changes to keep surviving and growing.Promotion Mix strategy We will use push strategy for Spirit energy drink. Contracting with different wholesalers and retailers will help us to provide adequate supplies in every convenient and targeted locations. We will give them incentives to promote and supply our product more frequently to the customers. Design of distribution activities- We will go for intensive distribution for Spirit energy drink, because we want to provide stock our product in as many outlets as possible. We want to fix that our products must be available where and when consumers want them.As our product is new in the market, we will directly offer our product to the target customers. We will be offering our Spirit energy drink to the customers through wholesalers and retailers. Within our limited resources we cannot afford to have our own distribution facilities, like warehouses and showrooms and to hire sales people and support stuffs. We would rather contract with the wholesalers, so that they will take those extra costs and risks. Our target customers are the young university students, that is why we are contracting with retailers.