Cool Can, Marketing Plan Example

A well written marketing plan effectively addresses the problem as to how a marketer plans to attract and retain customers (Bellis). A marketing plan looks at both the strengths and the weaknesses of the companies as well as the opportunities and threats present in the external environment. The 4Ps (product, price, promotion, place) of marketing is a good start to formulate an effective strategy to market the product to the targeted customer segments. The 4Ps is a conceptual framework for thinking how a product or service can be successfully translated from an idea into a profitable product in the hands of the customer (Volker).

The product in question is a sports drink in a container that keeps the content cool for up to six hours. The multi-billion sport drink industry was single-handedly founded by Dr. Robert Cade and his team in the summer of 1965 and since then it has seen no signs of slowing down (Mayo & Kravitz). Even though the industry is still led by the original sports drink Gatorade, there is no market player who offers a sports drink in a container that keeps the content cool. This means we are entering the market with a novel idea which has the potential to fulfill a long unmet need and earn significant profits in the process. Our sports drink will come in a container made of aluminium. The aluminium container will have our patented cool-temp indicator which will tell the customers the remaining time they can expect the content to remain cool.

Our sports drink will be priced on the average 25% higher than the competitors’ offerings. The rationale for higher price includes more expensive container, higher utility for the customers, and expected low price elasticity of demand for our product. The customer segments we will be primarily targeting are college and professional sports teams, customers with active fitness and sports lifestyles, and recreational lifestyles such as outdoor activities, concerts, live sports events, picnics, and beach enthusiasts. In our surveys and market research, we discovered several complaints most often made by sports drinks’ consumers. The top one was the inability of sports drinks to remain cool for long enough time periods. Many consumers told us that this is the main reason they don’t mind paying almost the double price to get their sports drinks from the vending machines after they are done with their fitness regimes or sports activities. Similarly, those who often go to the beach or love outdoor activities, take ice in coolers with them to enjoy their sports drinks chilled. Alternatively, they have no choice but to pay higher prices to the vendors who sell at locations often visited by lovers of nature. All this information has given us an opportunity to emphasize the higher value of our product as compared with the competitors’ products despite initial higher price premium.

We will emphasize the fact in our marketing promotions that despite paying a little higher price, our customers will actually be saving the money while getting convenience at the same time. The ability of our container to keep the contents cool for up to six hours mean that most of our customers will not have to buy their drink from the vending machines or the street vendors. In addition, they will also be able to enjoy our drinks in places where they may be no retail presence of vendors. Our customers will also be saving on the costs of ice that they have to get for certain outdoor activities such as picnics and beach visits. We will try to cover all of these facts in our ads, on both electronic and print media.

Customer samples and trials will be an important aspect of our overall marketing strategy because nothing is as effective as practical demonstration. We will send representatives to concerts, stadiums hosting college and professional league games, popular tourist areas, beaches, and popular picnic spots. We will also form exclusive partnerships with certain retail chains to hold live demonstrations in their stores. We will also be sending free samples to college and professional sports teams so that they are able to witness the convenience of our products during intensive workouts. We will offer them special rates in order to convert them into customers. We believe that discounted rates will also pay off in the form of free promotion that such teams will generate for us.

We believe that celebrity promotion can be a powerful marketing tool. This is why we are looking at prospective sports personalities that will be a good fit with our product. In addition, social media will also be an important part of our overall marketing strategy. We already have set up Facebook and Twitter accounts for our products and will be launching promotional competitions soon. Social media offers us a cheap yet highly effective way of generating word of mouth promotion. 2010 Social Media Marketing Industry Report by Michael A. Stelzner reported that 85% of the marketers claimed social media had increased exposure for their businesses (Wee, 2010)

We will distribute our products through retail chains and sports outlets only. This is because we want to send a uniform message that our customers should stock up on our products and take them where ever they go without worrying about the contents becoming warm. Our products mean that customers do not have to pay double prices in the vending machines or to the independent vendors because our products remain cold long enough for the customers to enjoy them.

References

Bellis, M. (n.d.). Marketing Plan for the Independent Inventor. Retrieved September 9, 2011, from http://inventors.about.com/od/licensingmarketing/a/advantages_mark.htm

Mayo, J. J., & Kravitz, L. (n.d.). Sports & Energy Drinks: Answers for Fitness Professionals. Retrieved September 9, 2011, from http://www.unm.edu/~lkravitz/Article%20folder/sportsdrinksUNM.html

Volker, M. (n.d.). Business Basics for Engineers. Retrieved September 9, 2011, from http://www.sfu.ca/~mvolker/biz/mktintro.htm

Wee, W. (2010, May 1). 7 Social Media Marketing Benefits Revealed. Retrieved September 9, 2011, from http://www.penn-olson.com/2010/05/01/7-benefits-of-social-media-marketing-revealed/