Running head MARKETING PLAN 1WBC Marketing PlanStuden.docx
- 1. Running head: MARKETING PLAN 1 WBC Marketing Plan Student’s Name University Affiliation Introduction to Marketing The Waters Bottling Company (WBC) of Munsonville, NH wants to launch a new water product in the market. This product is unique as it the water is pure, crystal clear and granite filtered, which would be appealing to many potential customers who would purchase the product. The purpose of this paper is to give an in-depth analysis of the marketing strategies that could be implemented by the company in order to ensure that the product is successfully launched and marketed to the identified target market. The Marketing Mix Product As stated in the introductory paragraph, WBC is interested in launching drinking water products in the market. The name of the product should emphasize on the quality of the water being sold to the consumers in order to attract and retain loyal customers. Given the fact that Mr. Waters loves Blues music, the name of the product should be named “Blue Crystals Water.” This product name would appeal to the customers, as they would have an illusion that the water is clear and blue is a color that could be associated with purity. Promotion
- 2. The first step that could be taken by WBC is coming up with a marketing budget. This would ensure that the company is able to keep its marketing expenses below the revenue it projects to gain from selling the water to consumers. The company should consider forming partnerships with event holders in order to make an entry into the consumer market. Satisfied customers will then spread news about the product using word of mouth, which could save WBC a lot of money. While promoting its products, WBC’s message should be simple in order to attract and retain customers. The company should ensure that its potential customers are made aware of the process that is used to bottle the water. When customers know that the water is pure and of high quality, they would be willing to purchase WBC’s products. Place Given the fact that the company is located in Musonville, NH, the city is ideal to house the company’s headquarters as that’s where the source of the water is. The company should consider outsourcing its distribution services to an external company in order to cut down on its operational costs. As the firm expands to other states, the company could then set up regional offices in those states depending on the company’s needs. Price The average cost of water is currently retailing at about $1.22 per gallon. This price could vary depending on factors such as the size of the bottle and the brand selling the water. WBC could consider using a low-cost strategy to market its water by setting its prices below its competitors to attract customers. Besides that, the company could also consider using a premium- pricing strategy to generate more sales from its water products. This strategy makes sense as it is in line with the message of quality being communicated to potential customers. The Marketing Environment
- 3. WBC is making an entry into a market that is saturated by other large scale and small-scale competitors. Therefore, WBC has to be on top of its game by ensuring that it takes advantage of the technological resources that are currently available such as big data analytics and digital marketing in order to reach more consumers and understand their needs. Apart from that, the company should always be open to adapting emerging technologies, as it would give the company a competitive edge over its competitors. Marketing and its relationship with other functional areas of business Marketing should be integrated across all the other functional areas of the business. This could be achieved by making WBC customer-centric, allowing cross-departmental projects that are aimed at improving the customers’ experiences while using its water products. Therefore, WBC should refrain from using marketing silos by making the marketing department the only functional area that interacts with customers according to (Solomon, Dahl, White, Zaichkowsky & Polegato, 2014). Strategic Marketing Planning Process WBC should work to identify all the factors that could contribute towards its success or failure in the identified market. One of the tools that could be used to help the company plan is a SWOT analysis. This tool could help the company identify its strengths, weaknesses, opportunities and threats that could affect its growth (Baker, 2014). For example, WBC’s strong brand image and the quality of its water products could be considered as one of the company’s key strengths, while competition from existing companies could be considered a weakness and threat. Given the fact that the company plans to expand its market to other states, the company could see it as an opportunity to expand its market and generate more revenue from the sale of its water products.
- 4. Strategy Organizational Levels The Water Bottle Company should ensure that it treats all its departments as Strategic Business Units as it would help the company scale its operations and meet its objectives. In order for each department to operate like an SBU, they need to ensure that they align their operations to the company’s strategic objectives. This would ensure that all the departments operate within their allocated budgetary allocations and maintain high levels of productivity at the same time. Goals and Objectives WBC’s main goal should be to ensure that its water is refreshing and high quality. The water bottle should also be designed in such a manner that it appeals to customers as they tend to get attracted to well-designed products and often- associate great design with quality. Therefore, the company should ensure that it conducts sufficient research before launching its product in the market in order to ensure that the product design aligns with the company’s objectives. Planning Gap In order for WBC to effectively plan its marketing and growth strategy, the firm has to ensure that it constantly meets its customers’ needs by either coming up with new products or adapting current products to meet customer needs. The company could focus on growth by making an entry into new markets. Strategies such as horizontal and vertical integration could be used to ensure that WBC scales its operations while reducing the amount of competition it faces from its competitors. Ethics in Marketing WBC should ensure that it adheres to the rules and regulations that have been implemented to govern business processes (Babin & Zikmund, 2015). Besides that, the company should ensure that all the employees are made aware of the code of
- 5. ethics that seeks to protect consumers from fraudulent behavior and breach of privacy. Therefore, the company should implement its marketing strategies in such a manner that the company does not break any laws and regulations set by the state and the federal government. References Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning. Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson. Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher Education. Book Description Publication Date: June 3, 2012 | ISBN-10: 0133033112 | ISBN- 13: 978-0133033113 | Edition: 1 0133033112 / 9780133033113 Marketing: An Introduction plus NEW MyMarketingLab with Pearson eText -- Access Card Package consists of: 0132744171 / 9780132744171 Marketing: An Introduction, Student Value Edition 0132749556 / 9780132749558 NEW MyMarketingLab with Pearson eText -- Access Card -- for Marketing: An Introduction Here is the newest version of the text I could find; http://www.amazon.com/Marketing-Introduction-Student- Edition-
- 6. MyMarketingLab/dp/0133033112/ref=sr_1_1?ie=UTF8&qid=13 87565408&sr=8- 1&keywords=Marketing%3A+an+introduction+and+MyMarketi ngLab+package. Product Details · Loose Leaf: 672 pages · Publisher: Prentice Hall; 1 edition (June 3, 2012) · Language: English · ISBN-10: 0133033112 · ISBN-13: 978-0133033113 · Product Dimensions: 0.9 x 8.3 x 10.6 inches ISBN: 9780133033106 / 0133033104 Preface: You are a marketing consultant to The Waters Bottling Company (WBC) of Munsonville, NH. They have never done any marketing for their water before so they will need to be educated as to the role of marketing in their company’s success. They started their company last year and want to “do it right” according to their president and founder, Dr. M. Waters. (The M stands for Muddy so he prudently only uses the initial. He also is rather fond of Blues music, which he would like to incorporate into the marketing plan in some way.) They want to sell their crystal clear granite filtered mountain water to the “right” market. It is your job to identify that target market. At this point, they don’t even know how the product should be packaged or a name to identify it. They will be relying on you for all of the details to make this product successful. They are well funded and ready to bring this product to market. Use the attached Marketing Planning Guide to build your marketing plan for their naturally mineral rich pure mountain water. Be sure to relate the marketing concepts/ theories to this product/ company as you build the marketing plan over the length of the course.
- 7. Marketing Planning Guide Section 1 – The Environment (Module 1) · Introduction to Marketing · The Marketing Mix · The Marketing Environment · Marketing and its relationship with other functional areas of business · Strategic Marketing · Planning Process · Strategy · Organizational Levels · Goals and Objectives · Planning Gap · Ethics in Marketing Section 2 – Market Research & Targeting (Module 2) · Market Research · Research Methods & Data Mining · Market Research Process · Consumer Behavior · B2C vs. B2B · Consumer Decision Making Process · Factors Affecting B2C and B2B consumer behavior · Market Segmentation · Market Segmentation Concepts · Segmentation Process · Segmentation Strategies · Target Marketing Section 3 – Product & Price (Module 3 LASA 1) · The Product · Product Levels: Core, Actual, & Augmented (Packaging) · Product Life Cycle · BCG Model · Services Marketing · Price Determination & Pricing Strategies · Supply & Demand
- 8. · Competition · Objectives and Strategies Section 4 – Place & Promotion (Module 4) · Distribution Channels · Length & Width · Direct & Indirect · Vertical & Horizontal Channel Conflict · Promotion · Communication Process & Tools · Product Life Cycle · Push vs. Pull Section 5 – Personal Selling & Global Markets (Module 5 LASA 2) · Promotion Mix · Advertising · Personal Selling · Sales Promotion · Direct Marketing · Public Relations · Brand Management · Branding Strategies · Emotional Branding · Brand Extension · Global Markets · Opportunities & Challenges Executive Summary · Marketing Implementation & Evaluation Preface: You are the new marketing manager to The Waters Bottling Company (WBC) of Munsonville, NH. They have never done any marketing for their water before so they will need to be educated as to the role of marketing in their company’s success. They started their company last year and want to “do it right” according to their president and founder, Dr. M. Waters. (The M
- 9. stands for Muddy so he prudently only uses the initial. He also is rather fond of Blues music, which he would like to incorporate into the marketing plan in some way.) They want to sell their crystal clear, granite filtered mountain water to the “right” market. It is your job to identify that target market. At this point, they don’t even know how the product should be packaged or have a name to identify it. You will get to make that determination and carry that product through the entire Marketing Plan. Imagination and creativity combined with solid marketing concepts will be the basic framework for your report. They will be relying on you for all of the details to make this product successful. They are well funded and ready to bring this product to market, with your help and guidance. Use the attached Marketing Planning Guide to build your marketing plan for their naturally mineral rich pure mountain water. Be sure to relate the marketing concepts/ theories to this product/ company as you build the marketing plan over the length of the course. The completed sections of the marketing plan will be submitted in the Dropbox for each module. Use each of the outline items as headers/ subheads for your analysis. Be concise and apply each of the appropriate concepts to the WBC scenario. Running head: MARKETING PLAN: PRODUCT AND PRICING 1Marketing Plan: Product and Pricing
- 10. 7Marketing Plan: Product and Pricing January 9, 2019Marketing Plan: Product and Pricing The Product Consumers normally view a product a physical item which they need to meet a particular need. However, it is imperative to recognize that the nature of a product can be explored further by looking its three different levels which can be considered as three different products which include the core, actual and augmented products, (Aghazadeh, 2015). This is what is referred to as the three levels of a product. The Core product is not an actual physical and tangible thing. It can not be touched or felt because it represents the benefit of the product which generates its value to the final consumers. In the case of the water, the benefit to the final users is quenching their thirst as well as improving their health by providing additional mineral with nutritional value to the final consumers of the bottled water. A. Product Levels: Core, Actual and Augmented Second, actual product refers to the tangible product. It is the final product that will be purchased and used by the targeted customers. The customers are able to get value out of the product. For instance, customers can look at the packing and the content information to determine whether or not the content of the water is good for their health. Also, consumers may look at the product, touch the packaging and feel it. This makes the customers have a better understanding of the product in terms of what it looks and feels like. Lastly, the Augmented product refers to the non-physical part of the product which is made up of the value added to the product for which they may or may not opt to pay for the premium prices. When customers buy the bottled water, part of the augmented product is determining whether the packaging
- 11. material is recyclable or biodegradable as it is the case for plastic bottling materials. The consumers might not have a problem paying premium prices when they know that they are doing so to protect and conserve their environment as well as argued by Akbar et al. (2017). B. Product Life CycleThe product life cycle refers to the period when a product is developed, introduced into the market and when it is finally removed from the market. It is divided into four stages which include the introduction, Introduction if the first stage and this the point where the idea is implemented through research and development. The product is produced if the idea is determined to be feasible and potentially profitable. C. BCG Model The BCG Matrix is a model developed by the Boston Consulting Group and it focuses on helping businesses to develop profitable products and services for the current time as well as the future. It provides an effective framework that the business can utilize to analyze the growth and market share of the business. The model utilizes a chart with four quadrants. The vertical line shows the market share while the horizontal line shows the growth rate. The four divisions include the stars which include the products with the best markets share and thus generate the most cash for the company. Cash cows represent leaders in the market place that generate more cash than that which is consumed. Dogs refer to the unit of production with low growth rate and low market share. Finally, question markets refer to the products or services that consume a lot of money but have minimum returns. Services Marketing Services marketing is a type of marketing that focuses on selling things that are intangible such as medical care services and hospitality services. In this case, the processes will not focus on selling the actual product to the customers but focusing on the services appeal to the customers. The business
- 12. will strive to communicate with the targeted customers that it is committed to offering unparalleled quality services when they are seeking to buy the products offered by the company. This helps the company to make the customers see that settling for the products and services offered by the company gives them more value for their money. For instance, through the making activities, the company can inform its customers that it offers quality after-sale services and discounts to the customers who return their water bottles for refills. Price Determination and Pricing Strategy Even though the management of the company may have the desired price of the product in mind, it is imperative to point out that the price of the product will be determined by internal and external factors. The goals associated with pricing make up the internal policy for the business and these should be aligned with several factors such as costs, demand, competition, sales channels, life cycle, and the government. Demand and competition are external factors while the others are internal. When any of these factors are affected either negatively or positively, then there will be a corresponding effect on the price of the product. The effect can be either negative or positive depending on its nature. A. Supply and Demand Specifically, the supply and demand will affect the pricing of the product based on the law of demand and supply. In order to realize the long short- and long-term objectives, the company will ensure that an increase in demand does not result to a corresponding increase in the prices of the products as it is the case for perfect competition. The move is aimed at ensuring the company maintains a high inventory turn over which increases the revenues for the business. Moreover, the move will also go a long way in attracting customers and maintaining their loyalty to the company or the brand. According to Feng et al. (2016), having stable prices will also give the company a competitive advantage over its major competitors in the market. This helps
- 13. the business the sustainability required to realize its long-term goals and objectives. B. Competition Competition is an external factor and the company does not have control over it. What this means is that the business has to take all the necessary measures to ensure that it is in a better position to compete effectively in the market. The water market is composed of major industry players such as Coca-Cola with the Dasani brand among many other global as well as local companies. For this reason, it is imperative for the company to ensure that it sets a price that is not too low or too high compared to the competition. The strategy will see to it that that company is able to appeal to the customers to pay for a more quality product at the market price which gives the company advantage over the major competitors as argued by (Aldrich et al., 2017). However, it is also important to point out that the market forces will also influence competition and the price of the product. For instance, government regulations may increase the cost of production forcing most of the competitors to increase their prices in order to minimize realizing the negative effect on the profit margin. C. Objectives and Strategies The objectives and strategies focusing on the pricing for the final product are aimed at making the product more appealing to the customers. In order to achieve this, it is important for the business to communicate a clear and concise message to the final consumers. The consumers should be able to get the major benefits of using the products which makes it stand out from the variety of competitors offering the same product. To achieve this, the marketing team will put more emphasis on the value, quality, and benefits of the product to the final consumers. For instance, the marketing message will let the consumers know that buying and consuming the product does not only quench their thirst but also offer them various health benefits to their bodies. References
- 14. Aghazadeh, H. (2015). Strategic marketing management: Achieving superior business performance through intelligent marketing strategy. Procedia-Social and Behavioral Sciences, 207, 125-134. Akbar, F., Omar, A., & Wadood, F. (2017). The Niche Marketing Strategy Constructs (Elements) and its Characteristics-A Review of the Relevant Literature. Aldrich, B. R., Alkhaledi, F., Pelland, G., & Toomey, J. T. (2017). Developing a Sustainable Pricing Strategy for the Worcester Regional Food Hub. Feng, D., Sun, T., Fang, C., Shi, Y., & Xu, S. (2016). Optimal demand contracting strategy under uncertainty and its implication for advanced pricing. IEEE Transactions on Smart Grid, 7(4), 1876-1885.