Running Head: Marketing Plan 1
Marketing Plan 6
Shaunta’ R. Armstrong
BUS599 Strategic Management
Week 4 Marketing PlanApril 29, 2015Dr. Veronica Brown-Corbin
Target market
The Body Right energy drink will target a number of individuals in the society. However, the company’s product is an energy drink that is specifically designed for athletes and other sportsmen who need a lot of energy while exercising or playing. The product targets both males and females but works best on males aged between 14-30years. Our product is also recommended for students both high school and university, who require extra energy in their course work or waking up after a night out with friends. It is especially designed for athletes and other sportsmen since it replenishes their bodies with carbohydrates and electrolytes before and after a powerful body activity (Powerbrands.us, 2015).
The Body Right energy drink is designed to operate under three stages namely Reform, Prime, and Recover. The first phase reform is meant to refuel, rehydrate, and replenish lost carbohydrates and electrolytes during a sprint or a game. It helps the body regain the energy lost therefore making the athlete able to prepare for the next day’s activity without any issues. The second phase prime, acts as a fuel for all athletes every day and is designed for use after intensive exercise to provide energy and performance fuel. The final phase of the energy drink is the recovery phase that is recommended for athletes who not actively exercising or nursing an injury (Powerbrands.us, 2015).
The Body Right company has also designed an energy drink for the rest of the population, and this will make the target demographic of this product broad and extensive due to product popularity and appeal. Reviewing the population status of the Hispanic population in California, they can build an excellent market base for the company’s product.
Hispanic population in California 2014Hispanic population ages
population
(‘000)
B
percentage of Users
D
Index
Rank within category
14-30
15489
18.6
123
1
30-54
22568
30.4
114
2
Students aged 14-35
76898
57.3
109
1
Competition
The company is set face stiff competition from well-established companies such as Red Bull and Monster. They are the two leading companies in the United States and also in the world in terms of energy drink production. The company will capitalize on the major weaknesses of our competitors to penetrate the market. Our product being a new entrant in the market will introduce its brand in a three in one design. That is, the product will be available in three phases for our key target customers. This will ensure that the product is available in all the phases of their activity (Powerbrands.us, 2015).
Our company has specified the type of energy drink the athlete is supposed to use before, during, and after a race or a game. Most competitors have specialized in only one product. For example, a competitor like Red Bul.
1. Running Head: Marketing Plan 1
Marketing Plan 6
Shaunta’ R. Armstrong
BUS599 Strategic Management
Week 4 Marketing PlanApril 29, 2015Dr. Veronica Brown-
Corbin
Target market
The Body Right energy drink will target a number of
individuals in the society. However, the company’s product is
an energy drink that is specifically designed for athletes and
other sportsmen who need a lot of energy while exercising or
playing. The product targets both males and females but works
best on males aged between 14-30years. Our product is also
2. recommended for students both high school and university, who
require extra energy in their course work or waking up after a
night out with friends. It is especially designed for athletes and
other sportsmen since it replenishes their bodies with
carbohydrates and electrolytes before and after a powerful body
activity (Powerbrands.us, 2015).
The Body Right energy drink is designed to operate under
three stages namely Reform, Prime, and Recover. The first
phase reform is meant to refuel, rehydrate, and replenish lost
carbohydrates and electrolytes during a sprint or a game. It
helps the body regain the energy lost therefore making the
athlete able to prepare for the next day’s activity without any
issues. The second phase prime, acts as a fuel for all athletes
every day and is designed for use after intensive exercise to
provide energy and performance fuel. The final phase of the
energy drink is the recovery phase that is recommended for
athletes who not actively exercising or nursing an injury
(Powerbrands.us, 2015).
The Body Right company has also designed an energy
drink for the rest of the population, and this will make the
target demographic of this product broad and extensive due to
product popularity and appeal. Reviewing the population status
of the Hispanic population in California, they can build an
excellent market base for the company’s product.
Hispanic population in California 2014Hispanic population ages
population
(‘000)
B
percentage of Users
D
Index
Rank within category
3. 14-30
15489
18.6
123
1
30-54
22568
30.4
114
2
Students aged 14-35
76898
57.3
109
1
Competition
The company is set face stiff competition from well-established
companies such as Red Bull and Monster. They are the two
leading companies in the United States and also in the world in
terms of energy drink production. The company will capitalize
on the major weaknesses of our competitors to penetrate the
market. Our product being a new entrant in the market will
introduce its brand in a three in one design. That is, the product
will be available in three phases for our key target customers.
This will ensure that the product is available in all the phases of
their activity (Powerbrands.us, 2015).
Our company has specified the type of energy drink the athlete
is supposed to use before, during, and after a race or a game.
Most competitors have specialized in only one product. For
example, a competitor like Red Bull has only one product that is
highly priced (Powerbrands.us, 2015). Our new product will
venture into the California state where most people of the lower
4. income population cannot afford to buy the highly-priced
product. Our product will sell at subsidized price lower than
most of the already established brands like monster and red
bull. The company will utilize local resellers to distribute its
brand; this will help reduce the extra commissions brought upon
by middlemen and brokers. This will ensure the targeted
customer gets the end product at a relatively lower price. The
non-alcoholic products market is highly saturated with products
of different qualities and prices, therefore a good marketing
plan will help the company stand out against its competitors
(Powerbrands.us, 2015).
Marketing
The Company will apply various marketing vehicles to market
its products. The first strategy it will apply is the product or
service. The company will have its products branded with the
images of world major athletes like Usain Bolt and this will
bring in more athletes to purchase our product. Plans have been
already been developed and contacted Mr. Bolt for his
compensation for using his image on our product. The second
vehicle the company will use to market its product is the price
of our product. Our product will be priced at a lower rate
compared to our competitors (Quinn, 2014).
This will ensure that the target population can afford to buy the
product and this enable it to penetrate the non-alcoholic drinks
market effectively. The company will use retail stores to
distribute its products. There are plans underway to have an
online shop for our products to meet the global demand for the
product. Physical stores such as supermarkets in California will
be a good distribution point for our products. Most people will
be able to access the products easily and from a place that is
central while buying other products for use in their homes
(Quinn, 2014).
Promotion will be also applied to attract more customers and
more athletes to buy our product. The company is planning to
do road show promotions and activations with one of the star
athletes in the world especially Usain Bolt. The company will
5. also introduce the customization of our products; that is,
offering clients products with their names on it this will bring a
lot of sales for the company. Most customers will enjoy
products that are branded with their names or names of their
loved ones. The company has created a website where it will get
reviews from our customers. The company will also do social
media promotions using Facebook and twitter. These will create
a platform where our customers will share their views (Quinn,
2014).
References
Quinn, S. (2014). 10 Tactics You Must Use in Your Content
Marketing Strategy - Jeffbullas's Blog. Jeffbullas's Blog.
Retrieved 28 April 2015, from
<http://www.jeffbullas.com/2014/04/08/10-tactics-you-must-
use-in-your-content-marketing-strategy/>
Powerbrands.us,. (2015). Energy Drink Industry Information |
Beverage Experts. Retrieved 28 April 2015, from
<http://www.powerbrands.us/beverage-industry/energy-drink-
industry.html>
6. Running head: MARKETING BUDGET 1
MARKETING BUDGET 7
Shaunta’ R. ArmstrongBUS599 Strategic ManagementWeek 4
Marketing BudgetApril 29, 2015
Dr. Veronica Brown-Corbin
Marketing Budget
The following table outlines the marketing budget for the
company for the financial year 2014 and 2015. The company
will set a better part of its budget for advertising its products.
Being a new company, it will mean that the company will need
to spend more cash in the initial years of operation. Printing of
marketing flyers and catalogs also require a significant amount
of money at the beginning to create awareness of our product
among the target population (Luther, 2011).
Today being a world of technology will mean that the company
7. will also need an online marketing platform that will include a
company website and social media platforms. The future of
marketing is on social media. A business Facebook and twitter
account will create a platform where the company will get
feedback from our customers. The social media will also help
the company in advertising its new products (Luther, 2011).
Marketing Expense Budget
Jan
Feb
Oct
Dec
2015
2016
Advertising
$15,000
$15,000
$20,000
$10,000
$150,000
$250,000
Websites
$2,000
$3,000
$2,000
$2,000
$25,000
$28,000
Catalogs
$3,000
$11,800
$8,000
$5,000
$113,300
$125,000
Promotions
$0
10. $72,035
$913,563
$1,108,926
Contribution Margin/Sales
31.07%
26.33%
10.54%
11.63%
15.30%
16.92%
To operate successfully, the company needs to be strategically
sound. This calls for the company managers to think
strategically. The decisions made by top managers have a
strategic impact on the operation of the company and can
contribute to strategic reforms. Strategic management is vital to
the company’s success (The Huffington Post, 2015). Strategic
success will demand clear understanding the trends of the
market and the overall satisfaction of targeted population and
clients more than our competitors.
A real competitive advantage is a proof that the company has
been to satisfy its customers efficiently. It will be achieved
when real value is added to our customers. Start up and medium
sized companies that understand that customer satisfaction can
increase their competitive advantage, therefore benefiting from
the low prices and loyalty of their clients. Greater capacity
utilization will help in reducing overhead cost for the company.
The following are recommended effective business strategies
that will be used to run the company ensuring that it operates
within its budget (The Huffington Post, 2015). They include the
following:
Satisfying a compelling client need. The product the company is
offering is not new in the market. There have been other
companies offering the same products. This means that
customer satisfaction is the key to the success of the company.
A satisfied customer will come back with more of his friends
11. therefore increasing the customer base. Proper customer service,
offering quality products, and competitive pricing are a method
the company will use to satisfy its customers (Businesses,
2015).
Maintaining a low overhead cost: Maintaining a low overhead
cost of the company will ensure that the company operates at a
profit even in times of extreme market environments. The
company is using the forecasting budgeting method to ensure
that every aspect that should be covered by the budget is
outlined. The business strategy will be used maintain the
company’s competitive advantage. It will deal with the long-
term prosperity of the company. It will mainly be concerned
with the long-term asset development not short term profits.
The business strategy will help in ensuring that the resources
allocated for each activity. It is concerned with how to ensure
that an individual business survives completion and other
challenges and be profitable in years to come (Businesses,
2015).
Strategic management will be useful when the allocated
resources match the stakeholder expectations and needs and
change to ensure a fit and a turbulent business environment. The
external environment includes customer, suppliers,
merchandisers, as well as competitors. New entrants will
increase the competition for the same customer targets. The
entry of foreign companies will mean that the company will
invest some more cash in promotion and advertisement. The
marketing budget has allocated enough finances that will cater
for future fluctuations and changes in market environments
(Businesses, 2015).
The company must deal with the uncertain and dynamic
environments. To be successful, the company will understand
the changes in the competitive environment are unfolding. The
organization will also look to exploit its strategic abilities so
that it can adapt and improve every area of business. The
company manager will have the responsibility of adding value
to the customers of the company. This will be achieved by
12. organizing, planning, and coordinating the work of the company
staff by motivating and controlling them for better results
(Businesses, 2015).
References
The Huffington Post,. (2015). 7 Effective Business Strategies
from a Successful Panhandler. Retrieved 28 April, 2015, from
<http://www.huffingtonpost.com/2014/03/26/business-
strat_n_5030343.html>
Businesses, T. (2015). The Most Effective Marketing Strategies
for Small Businesses. MarketingProfs. Retrieved 28 April,
2015, from
<http://www.marketingprofs.com/charts/2015/26859/the-most-
effective-marketing-strategies-for-small-businesses>
Luther, W. (2011). The marketing plan. New York: AMACOM.
Lavinsky, D. (2013). Three Steps to a Solid Marketing Budget.
Forbes. Retrieved 28 April, 2015, from
<http://www.forbes.com/sites/davelavinsky/2013/06/07/three-
steps-to-a-solid-marketing-budget/>
14. Sales6.24%9.36%6.77%3.75%7.48%8.82%Contribution
Margin$114,310$123,238$80,161$72,035$913,563$1,108,926C
ontribution
Margin/Sales31.07%26.33%10.54%11.63%15.30%16.92%
Sheet2
Sheet3
· Project Deliverable 4: Business Plan – Draft
Due Week 8 and worth 120 points
This assignment consists of two (2) sections: a draft of your
business plan and an income statement containing your business
plan financials. Note: You must submit both sections as
separate files for the completion of this assignment.
You must intend to raise money for your startup company. You
can start with money from friends and family but at some point
you will need funds from outside investors, either angels or
venture capitalists, depending on how much money you project
you will need to raise. Another possible angle is to develop
money through crowdfunding, assuming your product meets the
demand of such audiences.
Before you can raise money, you must develop a business plan
that convinces an investor that your company will succeed.
Section 1: Business Plan (MS Word or equivalent)
Read Chapters 18 and 19 of the course text: Successful Business
Plan. Use the Plan Preparation Forms at the end of each chapter
of Successful Business Plan as a rough guide.
Write a fifteen to twenty (15-20) page draft of your business
plan in which you:
1. Revise the components of the following previously submitted
sections based on the feedback you have received.
a. Company Description (Mini Project Deliverable 1)
b. Industry Analysis and Trends (Project Deliverable 1)
c. Strategic Position & Risk Assessment (Project Deliverable 1)
d. Target Market (Project Deliverable 2)
e. Competition (Project Deliverable 2)
f. Marketing Plan & Sales Strategy (Project Deliverable 2)
15. g. Operations Plan (Mini Project Deliverable 2)
h. Technology Plan (Mini Project Deliverable 2)
i. Management & Organization (Mini Project Deliverable 2)
j. Ethics & Social Responsibility (Project Deliverable 3)
1. Format your assignment according to these formatting
requirements:
2. Cite the resources you have used to complete the exercise.
Note: There is no minimum requirement for the number of
resources used in the exercise.
2. Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins on all sides; references must follow
APA or school-specific format. Check with your professor for
any additional instructions.
2. Include a cover page containing the title of the assignment,
the student’s name, the professor’s name, the course title, and
the date. The cover page and the reference page are not included
in the required page length.
Section 2: Business Plan Financials (MS Excel worksheets
template)
1. For year one, revise and submit the Income Statement, Cash
Flow Projections, and Balance Sheet sections from the
“Business Plan Financials” MS Excel template (see: Course
Required Files in Week 1).
The specific course learning outcomes associated with this
assignment are:
· Describe strategic planning techniques used to formulate
alternative strategies designed to achieve stated business goals.
· Create a plan to implement a firm’s strategy and manage the
change from current operations.
· Analyze strategies for exerting the internal leadership needed
to drive the implementation of strategic initiatives and improve
operating excellence.
· Use technology and information resources to research issues in
strategic management.
· Write clearly and concisely about strategic management using
proper writing mechanics.