Semester “Spring 2010” “Principles of Marketing (MGT301)” Assignment No. 2 – Product Plan Introduction: The higher management of XYZ Limited while assigning the task of new soft drink to the marketing manager, elaborated company’s broader strategy in line with company’s vision. The vision/mission statement of the company reveals that primarily target market of new beverage would be rural population of Pakistan. Company wants to provide a healthy soft drink to rural population at their convenience and affordability.
Therefore, the contents of below plan are in line with XYZ vision/mission statement and its higher management guidelines. |Characteristics |Comments |Reasoning | |Brand Name |’Desi Kola’ name would be given to new beverage of |Since primary target market is rural population therefore, | | |XYZ Limited using new brand strategy. this brand name would solve dual purpose, word ‘Desi’ is | | |This brand name would be complimented with rural |close to rural population heart, this word give a sense of | | |flavored packaging and labeling. So that the new |purity & healthiness and word ‘Kola’ gives advantage of | | |beverage becomes a comprehensive & self-explanatory |familiarity that the product is a soft drink beverage. | |product attracting rural population. |This name is easy to pronounce, which will help in | | |The name is uniquely distinctive. |adaptability for rural population. | | |It is easy to translate in other languages. |This name will give a feeling to consumer that he/she is | | | |going to buy soft drink but a pure and healthy. | | |In this brand name there is a built-in ownership & | | | |relatedness for rural population which will help winning | | | |their loyalty faster towards the new product. | |Target Market |Rural Population of Pakistan: would be the target |Marketing research showed that there is huge demand of a | | |market. quality soft drink in villages. | | |This segment of market was targeted after the |Competitors’ original products are not easily available at | | |analysis of data collected through marketing |affordable prices in rural areas. | | |research. The marketing research data was analyzed to|In rural areas duplicate and/or unhealthy products are being | | |know: |sold with label of the market leaders original products. | |The size of rural market, |Market leaders don’t have focus on this segment of the | | |Potential growth rate |market. | | |Profitability |Potential of growth is high, as buying power of rural | | |Target market size & its fit with company objective |population is increasing. | | |and resources. XYZ’ resources are not enough to cater urban areas by | | |It was concluded that market size of rural population|competing market leader products. | | |of Pakistan best fit in the XYZ’s resources and is in|The bargaining power of rural population is less than urban | | |line with its mission statement & long run |because of limited choices of quality beverages. | | |objectives. | |Positioning Strategy |Healthy/Pure & Inexpensive: |Since the competitors are foreign franchisers therefore ‘Desi| | |is the positioning intended for ‘Desi Kola’ to hold |Kola’ being a homeland beverage using healthy local | | |in the target market. |ingredients in the soft drink could easily be used as | | |Whenever target market consumer think of buying a |positioning advantage. | |soft drink, ‘Desi Kola’ must comes to his/her mind |There are three differentiating factors which XYZ would | | |because it is a healthy, inexpensive and easily |promote to position its product: | | |available drink. |Local Company- stimuli patriotism. | | | |Local and pure ingredient use – stimuli healthiness | | | |Affordability – stimuli cost effectiveness. | | |These differentiating factors are distinctive, easy to | | | |communicate, and can’t be copied easily by competitors since | | | |they are foreign companies. | | |These positioning factors are concrete and will deliver the | | | |position to end users because they are backed-up by XYZ | | | |mission and market mix strategy. |Price Strategy |Marketing Penetration Pricing Strategy: |Marketing penetration price strategy would help the company | | |Pricing is the only element of market mix which |to capture big market share faster. | | |generates revenue; and this is the main factor too in|Low price will help sale growth that would then help lowering| | |terms of competition, therefore selection of price |production and distribution costs which will trigger bringing| | |strategy has to be very careful. profit for the company. | | |Also, because one of the main elements of this |With marketing penetration price strategy after maximizing | | |product market positioning is inexpensiveness, |the sale, it would be easier to cut the prices bit more to be| | |therefore keeping the price at lowest possible level |in a further better competitive position. | | |is a must to maintain positioning. The rural population of Pakistan is a price sensitive market,| | | |hence low pricing would be most suitable to enhance market | | | |share and to keep the competitor away. | |Distribution Strategy |Hybrid Marketing Systems |The strategic objective of XYZ is to capture maximum market | | |Since rural population market range is huge, |share in minimum time frame.
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Therefore, hybrid marketing | | |therefore more than one distribution channels need to|systems because of its multichannel ability best suits the | | |be used to reach out to maximum consumers. |need. | | |Hybrid marketing systems through more than one |Through these systems, XYZ would activate all cost affective | | |channel offer the ability to cover big & complex |channels to make its soft drink available at consumer | | |consumer markets |convenience.
Following three would be the main channels of | | | |distribution: | | | |Direct to consumer | | | |Through etailer to consumer | | | |Through dealer to retailer to consumer | | | |Each of the above channels would be contributing to ‘Desi | | | |Kola’ market expansion. | ***********************************