The following marketing plan forms the basis for the introduction of an innovative new product by Juice Co.. The analysis allows us to outline the best strategies to follow for the achievement of the company's strategic goals. "Juice" will be marketed as a unique type of gum while striving to reinforce the company's status as the leader in innovation and successful product launches. The marketing strategies will enable to reach a market size of an estimated 8,688,300 people (targeted) with a forecasted sales growth prospect of 7.3% over the next 4 years ($243,029.47 profits), while satisfying the needs of the still-unserved market for caffeine gum. Success will be reflected by a sizeable capture of market shares within this market, while strategically carrying the company up to the top spot as the market leader in the chewing gum segment of the market. Export potential will be considered in China.
description of the company
Juice Co.'s core undertaking is to benefit and refresh everyone it reaches. Founded in 1976, we are the world's leading manufacturer, marketer, and distributor of Chewing gum related products, which are used to produce nearly 400 gum brands that make up for our wide portfolio. Our corporate headquarters are established in Bangkok, and we are holding local operations in over 200 countries around the world. Our activities cover all sectors of the gum industry.
Brief description of the new product, & strategic role in the future position of the company
"Juice" will be a brand of Chewing gum and will be positioned as the only caffeine gum product available on the market. The gum will have a caffeine base with enhanced fruit flavors (passion fruit, strawberry and lime). It will bring an entirely unique chewing experience to its consumers. It will present itself as a funky and unusual alternative to traditional gum while providing the great taste of authentic fruit juice in an attractive and convenient packaging. The strategic role of Juice for Juice Co. is centered on three objectives:
To stay at the forefront as the market leader in innovative product introductions and successful product launches;
To strengthen and satisfy the needs of the more adventurous Generation Y consumers with a new eye-catching and FUN product;
To become the market leader in the caffeine gum segment with increased market shares.
The objectives of the marketing plan are strategically centered around 3 criteria: to create a strong consumer awareness towards a completely new chewing gum product from Juice Co., to establish a wide brand recognition through the capture of market shares in the caffeine chewing gum segment, and to become the top market leader in that particular segment within the forecasted sales figures.
The actual product
Packaging and labeling: Tight packaging similar to coffee
Branding: colorful, aspect of play, rectangular shaped, prominent Juice logo written in easily recognisable font, catchphrases such as "Me love Juice".
Trade name: Juiceâ„¢, a Juice Co. product
Brand personality: energy, funky, cool, original, funny, etc.
Brand equity: Juice Co. provides a quality, consistent, innovative and accessible chewing gum reputation.
Product life cycle: Juice is a low-learning product. With a strong marketing campaign, sales will most likely begin immediately and the benefits of the purchase are readily understood" (. Since Juice is prone to product imitation, Juice Co.'s strategy is to broaden distribution quickly, which is currently feasible thanks to the company's high manufacturing capacity.
Product class: [Confectionery] ïƒ Chewing Gum ïƒ Caffeine gum
Juice follows the practice of product modification Juice Co. is introducing an existing product (chewing gum) but redefines the gum with a new ingredient, i.e Caffeine. Juice will now become a widely available chewing gum phenomenon in multiple retailing (distribution) channels.
The price strategy that will be undertaken should consider the following aspects:
The product lifecycle
Customer demand is a crucial factor which is driven by tastes, income and availability of others similar products at a different price. For a lot of consumers, value and price are highly related: ''the higher the price, the higher the value''. Consequently, Juice Co.'s intention to position Juice as a unique, innovative and attractive product gives it a certain control over Juice price. To be able to implement higher pricing though, the minimization of the non-monetary costs to customers should also be included along with awareness of the product (notably by advertising) and value (benefits).
The product lifecycle
The company should take advantage also to the fact that the newer the product and the earlier in its lifecycle the higher the price can usually be. It ensures a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly and it also brings a certain prestige to the product.
Wtihin the context of the BCG Matrix, it will start off as a question mark (?). This is when the product is unknown by the public and not yet introduced, thus its success is yet unknown to the firm.
It will quickly become a star (ï‚¶), which is when it will start to be successful. Its awareness and market share will continue to grow quickly. During this stage, the firm will have to spend a huge amount of advertising in order to support the product's current status and prevent it from falling back to a question mark.
After a long period of time, the product will finally become a cash cow. This is because it will have matured. Market share and awareness will be high, thus the growth rate would more or less have died down. It will thus be a very successful product and the amount of work in advertising the product may be reduced. The product will be very successful and profitable for the firm.
It is assumed that the product will continue to be a cash cow. This is based on the experience of other chewing gums, such as Wrigley's, which have continued to be successful to this very day.
To initiate strong awareness about the launch of Juice throughout Generation Y consumers as well as their parents.
To win market shares over our top chewing gum competitor, Gumma Gum.
The promotional outputs will convey the clear message that "Juice is an energetic gum for sporty and young people who simply enjoy life."
Before choosing the appropriate media, it is important to note that Generation Y consumers only give partial attention to media. However, they can be reached through integrated programs. They are typically using more than one communication media at a time; a behaviour that is often called "multitasking". This group of consumers doesn't give its full attention to one single message, but rather uses continuous partial attention to scan the media. Marketers can still communicate with Generation Y by using a variety of targeted promotional tools. Another important tactic to reach our target market is through "Snow ball" marketing, which Juice Co. will heavily use in this campaign
MTV, MuchMusic, Cartoon Network, HBO, Cinemax, Star Movies
MIX96, CKOI 96.9, 94.7 FM, Universities
For girls: Cosmo, Elle
For boys: Sports Illustrated (or Kids edition)
Both Genders: Chart Attack, Rolling Stones
Banners on select websites (gaming, sports, etc.)
Official promotional website: www.[companyname].com/juice
Billboards and prints in select areas including:
Transportation (bus, metro, stations)
Tourist areas in high seasonal periods
Outskirts of key cities in geographical reach
Direct contact with retailers, sales kit strategies to be explained later in the text.
Stands or special displays and events in schools, malls, sports events , sponsorship activities
Conferences, press releases (print and online), snowball marketing
Contests: "Win another Juice flavour", "Uncover a secret code underneath the wrapper and win sporting goods and electronics by logging on the website". (Arguments: It will increase consumer purchases and encourage consumer involvement with the product).
Samples: distributed in supermarkets, school/universities. Samples are a way to avoid product resistance since people are not used to find caffeine in their gum. (Arguments: It will encourage new product purchases and it represents low risk for consumers since they get it for free. They have nothing to loose by trying it.)
Point-of-purchase: in supermarkets (to reach the parents of generation Y). (Arguments: It is also a mean to increase product trial and provides a good product visibility.)
Others: In subsequent years, engage in product placement in TV shows or movies.
Allowances and discounts: case allowance (Arguments: The "free goods" approach will be used so it can encourage retailers to buy more of the product to get a certain amount for free).
Cooperative advertising: to encourage retailers to buy our product and to maintain our high level of advertisement that consumers expect from Juice Co..
Scheduling of the advertising: Pulse scheduling (promotional presence year-round, but emphasized and intensified before and during summer).
IMC (integrated marketing communication)
Intermediary: personal selling will be more often used
Ultimate consumer: Juice Co. will use more of mass media because the amount of potential buyers is large.
PLACE (DISTRIBUTION CHANNELS)
Juice will be distributed through various channels. These channels: supermarkets, convenience stores, independent food stores, discount stores, multiple grocers, campuses, direct sales.
Many new people will be employed in order to manufacture the gum, and also to start distributing our actual product.
The product will be transported to convenient stores and supermarkets, making it easy for customers to purchase and consume the product.
During the development stage, we will be randomly travelling across the country in order to test our product. We will ask random people to test the product and evaluate it. The feedback we collect will then be used to give us an idea of where our product is now and what can be done in order to improve it.
The packaging will have a simple yet attractive design in order to encourage customers to purchase it. Possible themes will be energetic, funky, cool and original, in order to fit the taste and preferences of Generation Y. We intend to keep it appropriate even for the older generations.