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Target Market Description - Paper Example

2021-08-25 17:13:42
4 pages
889 words
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Wesleyan University
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The target market for this business plan can be defined regarding demographic, behavioral and psychographic characteristics. Geographically, the immediate target market is the city of Huntsville, Alabama. The city has an estimated population of 194,000 people and is known for its large number of active young people especially athletes and gym goers. These two population groups are crucial to the success of any non-alcoholic beverage. However, our products will be tailored to match the needs of the entire market. This means that there will be different offers for each subgroup in the market. For example, there will be low-calorie drinks for consumers who are keen to observe their diets. Similarly, there will be drinks specially designed to appeal to children (Kotler & Keller, 2016). Besides individual customers, our company will also target business organizations such as supermarket chains, hypermarkets, gas stations, cinemas, restaurants, leisure parks and cafeterias. The company will produce different brands and varieties of non-alcoholic beverages to meet the diverse needs of these customers.

Competitor Analysis

There are hundreds of companies involved in the manufacture and distribution of nonalcoholic beverages in Huntsville. Coca-Cola is by far the largest and most dominant competitor. It has a global market share of almost 50% and has erected strong barriers to protect its niche markets. Another important competitor is PepsiCo, which controls a 20% share of the market. PepsiCo comprises of several subsidiaries and has ventured into complementary products such as snacks. Both Coca-Cola and PepsiCo brands are very popular in Huntsville. Other major competitors include Nestle and Pepper Snapple. Each of these competitors provides a wide range of non-alcoholic beverages.

The competition will also come from coffee house chains, locally owned cafes and convenient stores. In light of this immense competition, two things will make our brand to stand out. First, the company will produce products that are differentiated and unique to the needs of different consumer groups. These products will be delivered most conveniently and effectively possible, taking into account customer location (Armstrong & Cunningham, 2012). Most of the companys stores will be located in two-sided drive-through shops. This will give customers convenience in that they will not have to find parking spaces or wait in the queues. The second point of differentiation is in the establishment of a network of strategic partners, which will include suppliers, independent distributors, suppliers, and marketing agencies. These collaborations will help in bringing cost advantages to the company.

Company Messages

The companys marketing messages will be designed to communicate the real benefits that customers will be expected to gain from our products. The primary focus of the marketing messages will be on the healthy and nutritional benefits. The company takes cognizance of the fact that most non-alcoholic beverage manufacturers have always been criticized for selling products that are rich in calories and sugars thus contributing to poor health outcomes for consumers (Dess, Lumpkin & Taylor, 2015). Beverages that are overly rich in sugars contribute to the increased prevalence of various lifestyle diseases such as obesity and diabetes. Our company will focus on reducing the number of sugars used in its products. This will give the company a stronger competitive edge in the market especially at a time when most consumers are becoming aware of the adverse health effects of soft drinks. The companys messages will also focus on informing customers about the economic benefits of consuming its products. These benefits will be achieved through price reduction in the form of discounts and special offers. The company endeavors to pursue a cost leadership strategy.

Marketing Vehicles

Marketing vehicles refer to the specific tools used by companies to deliver marketing communications to the target audiences. For the determination of marketing non-alcoholic beverages in Huntsville, the company will use print and electronic media advertisements as its primary marketing vehicles. These vehicles will give the company massive opportunities to create brand awareness and attract customers in the target market. The company will also rely on advertisements via social media and the website to market its products (Elmore, 2014). Besides advertisements, the company will engage in various forms of corporate social responsibility (CSR). The specific (CSR) initiatives that the company will undertake include minimization of water and resources, conservation of the environment support for charities.

Other companies in the beverage industry have successfully used advertisement as their primary marketing vehicle. One of these companies is Coca-Cola. Each year, Coca-Cola commits millions of dollars into advertisements, which are carried in the print and electronic media all over the world. At the core of Coca Colas marketing campaigns is the focus on associating its product offerings with the behaviors and lifestyle needs of its customers (Coca-Cola Company, 2017). As to achieve this objective, Coca Colas advertisements are individualized for each customer group and also for different festivals and seasons. During Christmas season, for instance, the company develops special advertisements designed to help customers to enjoy the occasion while appreciating their favorite drinks.

References

Armstrong, G. & Cunningham, M. H. (2012). Principles of marketing. Sydney: Pearson Australia.

Barth, M. (2014). Measurement in Financial Reporting: The Need for Concepts. Accounting Horizons, 28(2), 331-352.

Coca-Cola Company (2017). About the Company. Data retrieved from http://www.cocacolacompany.com/stories/Coca-Cola-sponsorships/ .

Dess, G., Lumpkin, G. & Taylor, M. (2015). Strategic Management. McGraw-Hill Irwin Ed., New York

Elmore, B. J. (2014). Citizen Coke: The Making of Coca-Cola Capitalism. Boston: WW Norton.

Kotler, P. & Keller, K. (2016). Marketing Management. Upper Saddle River, NJ: Pearson Education, Inc.

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