Marketing Strategy of a new energy drinks Essay

All around the world reveling bever time is equivalent an entertainment for e trulyone. Millions of throng halt beverages every twenty-four hours for refreshment. Our report card is or so the Energy Drinks of Bangladesh. In this report we run through explained and analyzed how some of the volt top sell capability drink companies argon operating in Bangladesh. Energy drinks ar becoming a major intermit of the beverage industry due to the fast increase of their market competition and consumer awargonness. In Bangladesh, Tiger and facilitate be the most famous amongst every last(predicate) former(a) verve drinks.Most of the cogency drink companies act and carry out their marketing strategies in similar paths. More innovative steps argon required to emend their market sh be. The goal of this report is to pass out about the act condition of qualification drink market in Bangladesh, major competitors we atomic number 18 homogeneously going to showcase and how we ar going to oercome the ch solitary(prenominal)enges in the market when we leave behinding launch a untested naught drink reachd scent.With the hire of effective marketing f uptake and different strategies we be going to tar cleave the four-year-old muckle of Bangladesh to sell our crop. We endure done a clear belligerent analysis to take advantage of the weaknesses of our competitors and opportunities of the market. We atomic number 18 likely going to invest enormously in the beginning of launching our crossroad to inform our customers about our w be. As a new product confederacy we are promising our customers to notch a unique product which leave alone hark back them postcode a colossal with the excitement to enjoy their lives. Section 1 Current Market Analysis 1. 1 conk 5 notices in the market (how we find it) We consume surveyed in some of the areas of Dhaka city, like Farmgate, Motijheel,Uttara, Gulshan to find out the name c in alling of five most top selling vim drinks. According to the survey we come seen Tiger, Speed, Shark, burn off and rise are most popular in the heartiness drink industry of Bangladesh. We went to contrasting departmental stores as mystery shoppers and randomly asked about the drinks each shop offers and found out the names of the push button drinks customers tend to buy more. 1. 2intersection Analysis -Product Level Product leveling is the start and most important step taken by product planners to add more customer abide by to their products.It includes 3 main levels Core Customer rate, Actual Product and Augmented Product. Core Customer Value The first thing that comes to everyones mind when they talk about energy drink is source of major power. In Bangladesh, all of the energy drink companies basically have the akin stub customer order, which is mainly about replenishing the energy of their customers through providing them with their energy drinks.However, polar brands use diff erent truisms to establish their customer comfort. For vitrine Sharks motto says, realistic Energy, Real Power in otherwise case Speeds motto says, Heavy Energy. This way each products motto varies from each other and creates a different view about the product in their customers mind. Actual Product This level includes taint name, advancement and Product Attri andes. Under Product Attribute comes Product Features, digit and Quality of the product. i. Brand name A brand name is an identity of a product, without it no product exit even exist.Each brand name establishes their uniqueness with their different names, signs and logos. All of the energy drink companies have a brand name of their products, which key outs each of them from their competitors. The names Royal Tiger, Boost Energy Drink, Speed, Shark and stick by each of them stands as a brand name for their product, marketed by different producers. ii. Packaging Packaging describes the way a product is protected ut ilize a container or wrapper and at the very(prenominal) succession grants all the required knowledge regarding a product.The energy drinks cauterise, Speed, Shark and Tiger are all useable in both thrones and feeding bottles. Only Boost is available in make can in the market. iii. Product Features and pictures Features explain the tools which enable a particular energy drink to turn over competitive advantage all over other energy drinks. The tools include design, smell, render and mask of each energy drink. The designs of Sting, Speed, Shark, Boost and Tiger energy drinks are more or less the akin. They are mostly available in two forms and in two shapes, one in a round shaped plastic bottle (250 ml) and another in cylindrical steel can (250/270 ml).They all taste angelical, expect from Tiger and Boost which tastes sour as wholesome. iv. Quality Speed, Tiger, Shark, Boost and Sting have been maintaining a good standard of fibre by providing the qualified amount of energy to their customers and wait oning them to upsurge with strenuous activity. However, no matter what the quality level is over consumption of energy drinks can always prove defamatory for human universes (even though they might be alcohol bountiful). Augmented Product at that place is no after-sales attend, delivery service or product nutrition for these perishable products (like energy drinks).Labeling Labeling is the most important part of every energy drinks. It informs about the ingredients of the product, who made the product, arctic issues regarding the product and the web address of the comp all. Speed, Tiger, Shark, Sting and Boost all maintain an informative and trendy labeling to help their customers to take out the right choice. Their ingredients contain change Water, Carbonated Sugar, Vitamins, Preservatives, Colors, Antioxidant, Sodium Benzoate, Ca-D-Pentothenate, Citric acid, Tartrazine Yellow and many other things according to the standard or perm issible level.They even mention on their labeling that, it can be harmful for children and pregnant women. However, they are manufactured by different companies. Speed is manufactured by Food And deglutition Limited, Shark is manufactured by Global boozing Company Limited, Sting is manufactured by Transcom Beverage Limited, Tiger is manufactured by AST Beverage Limited and Boost is manufactured by Boost Drinks Limited. Brand Positioning One of the challenging things for the energy drink companies to do is, to create a permanent prescribe in the customers mind about a particular brand.To do this, all of these energy drink companies penury to locate their brands at 3 levels i. Product attributes ii. Benefits iii. Beliefs and Values. i. Product Attributes Even though Tiger, Speed, Shark, Boost and Sting all have the common color of the drink yellow their smell is very different from each other. Boost tastes sour, Tiger tastes both sour and sweet, Sting tastes like strawberry and both the Shark and Speed taste sweet. ii. Benefits The common benefit any consumer can absorb from having an energy drink is, spiritual force which exit make them more active in their daily life.Still, every energy drink has its bear way to inform about their benefits to their loyal customers. Royal Tiger benefits their customers by recharging their energy physically, Boost helps their customers with being more efficient, Sting provides their customers with vitamins and other nutrients, Shark strengthens the stamina of their customers and Speed increases the assiduousness and performance level of the individuals who are consuming it. iii. Beliefs and Values Satisfaction comes from the core belief that consumers hold in their minds about a reliable product.Customers believe Sting and Tiger allow for project them satisfaction with better taste, Boost forget push their energy, Shark provide give them real power and Speed entrust help them gain limited speed. This way cus tomers share their different beliefs and value for each energy drinks differently. 1. 3 Price Analysis size of the Bottle Product Name 250 ml 270 ml 330ml Speed 25 BDT Shark 25 BDT Sting 25 BDT Boost Tiger 25 BDT Size of the Can Product name 250 ml 270 ml 330 ml Speed 30 BDT Shark 35 BDT Sting -Boost 170 BDT Tiger 30 BDT 1. 4 Promotion Analysis Promotion Advertising is the most crucial part of a associations marketing mix. It is the first step to inform and advised the general public or the tar shrink concourse of customers about a product a particular company is offering. The five energy drink companies Speed, Tiger, Shark, Sting and Boost all of them are between the introduction and growth spirit level of their product life cycles/second. At this stage they are only informing the customers about their product including their benefits.Basically all the companies are pursuit the alike(p) way to upgrade their products and these are some of the most common media channels used by them for doing progress picture, radio, newspapers, magazines and profits. Target Group Energy drink companies mainly invest the major districts of Bangladesh. The local companies, like Speed, Tiger have distributed their products in rural areas as well to attract a vast reduce of customers. Energy drinks are mainly used by the people who are between the age conference of 16-30, because they comparatively need more energy in every step of their lives.So all of the companies plan to target them and make the product according to their needs to deliver complete satisfaction through their energy drinks. Their product is priced quite cheaply, so that people of different classes can buy them. Most of the energy drinks are claimed to be halal enchantment considering the religious and social issues of Bangladesh. Message and Effect of the ads Message (Add Story) Each company make their advertisings differently even though their motive remains the same, w hich is to inform the customers about the product.Here are some of the advertisement stories of the five energy drink companies 1. Speed In one of Speeds advertisements, they have shown some guys were trying to get up on a bamboo for the whole day without acquiring tired. Their motto is Heavy Energy. In other words, they are using emotional appeal. In newspapers, they order a picture from the screen shot of their advertisements and use the same motto, so that people can get a clear brand knowledge. They do not have any brand ambassador for their product and they are constantly sending out the notion to their consumers how Speed can let them gain unconditioned energy.2. Shark There is an advertisement of Shark 20 takay Dhaka, they showed a guy kicked another soulfulness from Chittagong and sent him to Dhaka after having Shark energy drink. They are using the motto Real Energy, Real Power. In their advertisements they use the rational appeal to attract customers. They have no br and ambassador, because they are not still going for intensive or aggressive advancement. 3. Sting -. In the television advertisement there was one younker boy who went to a shooting spot with the hope of being a superstar. On that time one handler was taking the shot of riding a motor cycle on that spot.Showing that the young boy questiond forward to do that shot but the figureor did not allow him and insulted him that made the young boy very frustrated. subsequently that the director was supposed to make that shot with the hero but unfortunately the hero failed to ride the motor cycle. Then the director asked the assembly who could do the shot. The first young boy showed up the courage and did that shot in a violent way. Everybody praised him a lot. They started celebrating the happiness together by dancing with sting energy drink. They were singing Sting, Sting, Sting Ullasher Shuru Ekhanei.They are using rational appeal in their advertisements In the radio advertisement they play the same jingle. In newspaper the marketers use the picture of 250ml bottle of sting energy drink and write their jingle. They give the same ad in magazines too. In billboards and posters, the marketers add the picture in a big way that they use for newspaper and magazine. 4. Boost In one ad they have shown that a young guy, probably of age 20 was walking along the roadside, on the background rap music is going on (sign of young generation). The lyrics was talking about getting energy, confidence and success.The guy had his neck tattoed and wore a sunglass, showing the style of late(a) youth fashion. He went into a departmental store, went to the refrigerator, there were other drinks (e. g. red rooster and red bull) but he picked up BOOST, then he paid for it, got out, drank it and got himself recharged and the soundtrack was saying as if he could fly now. So this is one example of their rational advertisements. They have not used any brand ambassador even for their prod uct in Bangladesh, and these two advertisements are not even shown in Bangladeshi channels, they are only available in You tube.5. Tiger The tiger energy drink has only one advertisement which is very popular. The brand ambassador Aiyub bachchu is the model for the advertisement. The advertisement showed that, when the popular singer Aiyub Bacchu attended a party, the audience pass him to sing a song. But at that time Aiyub Bacchu felt tired and bored. So he essential to recharge himself to get energy. So he took tiger and then sang a song with more power and energetic voice. In this way they try to attract customers by using the rational approach. They in like manner do radio advertisement with the song of Aiyub Bacchu.In billboard advertisement they promote their motto charge Yourself. Effect Different advertisements effects consumers differently. In general, all of these advertisements throw out people to buy their products. When people get satisfied with one product, they talk positive things about it, this way companies can enjoy the benefits of -word of mouth. Customers get to know through these advertisements how their everyday lives are going to be benefitted if they have these energy drinks. Personal selling Personal selling is no longer considered as giving door to door service.It is a lots wider concept nowadays. Companies not only their sell their product to the customers, they in like manner build a loyal kind with them. To keep on and for maintaining such a relation, companies mustiness be ready to deal with different problems their customers have regarding their product. Unfortunately, none of these five energy drink companies do these in Bangladesh. They are more focused on advertising only. Sales promotion In general, energy drink companies do not give any special discount on their product to boost their sales.Companies give incentives to their channel members to keep their product in the earlier line of their shelves, so that custom ers choose to have it by first looking at it. sometimes they give energy drink on their own to the customers, because it make the customers feel the product is of high quality and that is why the salesman is offering it to them. Besides people generally do not look out for products those are kept behind the shelves, as it leave alone be very time consuming. Advertisements do even run to generate the sales level sometimes.Though there are many other ways to promote sales, the energy drink companies mainly follow these two ways to carry out their sales promotion activity. Public Relation To operate in this digital world it is very important for companies to maintain a good relation with both their internal and external publics, example shareholders, customers. Some of the energy drink companies arranges concerts and sponsors television shows to interact closely with their customers. Example last year Tiger organized one concert in Doha. Each of the five companies uses different an d unique logos for their product. no(prenominal) of them are involved in doing conferences or giving press release. Buzz marketing is too a tool used by these companies to improve their relations with the general public and promote their product as well. organise merchandising Energy drink companies have their official websites, but their use is not very effective in Bangladesh. In gigantic shopping malls or in other areas, none of the energy drinks are available in vendition machines. These products are not even sold by the companies directly over online or by using telephone. The only way they carry out direct marketing is through placing the advertisement videos in You Tube.The energy drink companies still lack good customer service, example no service or facilities provided to give complaints or to share persuasions about the product face to face with the customers. Promotion Mix Strategy The expect for energy drink is not yet very high in Bangladesh. So all the manufactu rers of these five energy drink companies use the push strategy. Manufacturers contract with wholesalers or retailers to pass down their products to their final consumers and also to shape up customers to buy the products. Sometimes manufacturers give incentives to the channel members to promote their product as well.Section 02 Marketing strategy for a new brand Figure Spirit Energy Drink Figure logo of Spirit Energy Drink 2. 1 Introducing a new brand for energy drink After analyzing the present market condition of energy drinks in Bangladesh, we have come up with a new belief of introducing a new brand for energy drink. The name of our energy drink leave behind be SPIRIT Energy Drink. This new energy drink will hopefully win the patrol wagon of our target customers and please them with the new taste and value of our product that we going to offer.This energy drink will not only make people active physically, it will also motivate them spiritually to lam ahead in their lives w ith confidence. The motto of our energy drink is ignites you from inside. With this motto we will give our customers the conceit of how Spirit energy drink can add more intent in their lives. The name of our company is Spirit Beverage Limited and we are using Spirit Energy Drink as our products logo.We have used picture of a guy inside the logo to show our customers what we are trying to say through the motto.roductinkurny is gy of Shark and make them more active. customers tend to buy more. 20202020202020202020202020202020.2. 2 Design marketing strategy for the new brand i. variance We will segment the market of Spirit energy drink on the basis of geography, demography, psychography and behavior. Geographic partition We are going to serve Spirit energy drink mainly for the people of Bangladesh. We will offer Spirit energy drink within the different territories of Bangladesh, like- Dhaka, Chittagong, Rajshahi, Barisal, Sylhet, Rangpur and Comilla.We will be selecting these ter ritories because these are the biggest district of Bangladesh and most of the people live in these places. We will offer our product throughout every individual district, starting from the departmental stores to the small local and highway stalls. We are offering Spirit both in urban and rural areas as well. Demographic Segmentation Our market will be divided into groups based on variables such as age, gender, family life cycle, demarcation and education. We are going to offer our product to both male and female who are between the ages of 15 to 30.We are especially offering the product to the university going students, corporate persons and athletes too. Our product will be for the people of all religion as it will be product is 100% halal. Psychographic Segmentation Spirit energy drink is for the classes of people who fall under upper lowers, working class, middle class and upper middles. We are going to use personality variables to segment market like the gregarious and ambit ious people. Behavioral Segmentation We will be segmenting the market of Spirit energy drink on the basis of cause and benefits.In summer it remains very hot in the middle of the day and for that time we will give a special offer to the customers called Make Your Mind Cool. People will get the same energy drink at a lower price during this time. We will give people other benefits like- we are not using preservatives in our product and our product will be convenient for the customers. ii. Targeting We will target our market within the segmentation. We are mainly targeting Dhaka because, it is the capital city of Bangladesh and highly populate and urbanized. at bottom Dhaka, we are targeting mostly the teenagers and adults who are the university students. Female students are going to be a part of it too, because the size and growth rate of this segment is high. As there is going to be other shade products and tough competitors of Spirit energy drink in the market, we will offer our product directly by setting some temporary stores of Spirit energy drink inside the campus of some big and storied universities. This will help us gain competitive advantage over our rivals and make people aware of our product.We will explain about the benefits about our product and give other informations regarding our product. do people believe that our product is different will be our main target. We will offer the same product at the same price to all our segmented customers. iii. Positioning Our products motto is Ignites you from inside, by this motto we are trying to make people believe that, Spirit energy drink encourages people to move on no matter whatever situation they face in their lives. Our product will always remove the frustration from both their body and soul.Spirit is alcohol exculpate and will be made and designed attractively to attract our customers. In this way we will differentiate and create a unique image of our product in our consumers mind. iv. Marketi ng Mix (4p) ? Design and description of the product Customer Value and Brand Name The first thing that we are considering about our product before we place it in the market is, its core benefit or core values. Customers always seek out for the benefit and the reason behind buying a product. They always value the experience they get after using it.In order to enter the market and establishing our brand successfully, we are going to provide the most refreshing and unique energy drink which will spread liveliness and create more excitement in our customers life. They will not only buy one Spirit energy drink, they will buy one reason to hold on to being strong and face everything with more spirit in their lives. The brand name of our product isSpirit Energy Drink. We have named our product Spirit because it is easy to remember and meaningful at the same time. It will help the customers to severalise and compare our product from others.Product Features and Design Our energy bottle wi ll be made in the shape of a space shuttle, with a combination of red and black color to give the igniting image. We will design our can just like other energy drink cans, which is made up of steel body with a cylindrical shape. In the middle of both the can and bottle, the name of our product will be written horizontally. The whole bottle and can will be black in color and the name written in pearl white. The shining stars above the name will give it a glowing and sparkling image.The guy standing in the middle of the name will exhibit the idea that Spirit energy drink has the ability to bring back everyone from darkness and add new value to their lives. Like all other energy drink, Spirits taste will be sweet and sour and the color of the drink will be red wine color. Packaging and Labeling We plan to do very careful and colorful packaging to attract our target customers. The products are going to be well packaged and covered so that it stays protected in every condition. All the n ecessary informations will be written on the body of bottle and can. Packaging will be done in two ways 1.Plastic bottle 300ml (Normal Packaging) 2. Steel Can 270ml (Prestigious Packaging). Necessary warnings will be provided, like it might be harmful for pregnant women and children. Manufacturing and Expiring dates will be written on the covers to warn the consumers about the products validity. Most importantly, the ingredients we are going to use are Carbonated water, Refined sugar, Sodium Citrate, Sodium Benzoate, Vitamin B3, Vitamin B6, Touraine, Citric Acid, Preservatives, Antioxidant, Ca-D-Pentothenate, Tartrazine, Mixed Fruit Flavor, Food Grade Flavor, Food Colors.There will be a Nutrition Fact chart too, describing the nutritious contents. Energy80 cal. Proteino gm Saturated fato gm Total fat o gm Sodium 20mg Sugar20 gm Carbohydrate 20. 5 gm Cholesterol0 gm Dietary Fibero gm Product Quality Providing our customers with the best quality of energy drink is our prime purpose . We have made sure that our energy drink does not contain any harmful substances. It is alcohol free and free from every possible harmful effects. With the amazing taste and other attributes, we assure that our customers will be satisfied and buy Spirit more frequently. Design of pricing policy.Spirit is at the introduction stage of its product life cycle and we know the competition of energy drink companies is rising day by day in Bangladesh. We will use cost-plus pricing for Spirit energy drink, considering the present market and demand for energy drink. Though the demand of energy drink in our country is increase with time, our product is still under pure competition, as there are already some other energy drinks in our local market. We will also consider competitors strategies and prices, how they set their prices and how much they charge from the intermediaries and consumers.We will focus on our target customers willingness and ability to pay for an energy drink. After consi dering the above issues we are charging 35tk for 270ml can and 30tk for 300ml bottle from our customers. For the 270ml can, our production is 30tk and after setting a standard markup to the cost we will be charging 32tk from our wholesalers, wholesalers will charge 33. 5tk to the retailers and finally the retailers are sell the drink at 35tk o the customers. For 300ml bottle, our production cost per bottle is 25tk and after setting a standard markup to the cost the wholesalers will buy each bottle at 27tk from the us.Wholesalers will charge 28. 5tk to the retailers and finally the retailers will sell it at 30tk each bottle to the customers. In short, we are charging the price for our product moderately to attract huge number of customers to buy it. It will help us to maintain a minimum level of profits for operating and keep running our business. Design of promotional activities Advertising For creating awareness and informing the consumers about our product we are going to advert ise in more than one media. Our target is to do mass promotion to cover the maximum number of people in Bangladesh.Some of the major media channels through which we will be advertising are television, radio, newspapers, online media and billboards. Television and internet are the most fastest and effective media channels to promote product, as most of the people decease their time on these. Newspapers though have high believability, do not last for a long period of time. Starting from the poor uneducated people of our society to the educated ones, everyone listens to radio. Therefore radio is also a very effective way to reach a huge number of customers at the same time.Add story While broadcasting on television, we will show a random university student is sitting on a chair and lost deep inside at the sheer thoughts of helplessness in exam. Then suddenly one of his friends will come to him and give him a Spirit energy drink. After having the energy drink the boy will jump off an d scream energetically that he is not going to give up. He will get motivated and feel more energized while doing his studies. He will realize that he can study longer and give more concentration in his studies after drinking the Spirit energy drink.Then finally when the results come out, he will do the top result in his university. He will then become extremely quick and appreciate how Spirit energy drink has helped him to achieve this success in life. This way we will good deal conclusion to the add. In newspapers and billboards we will use the same boy, who will be smiling and holding a Spirit energy drink conveying the same message about our products motto. In radio channels we use the same jingle which we will show in television. As we are launching a new product in the market, we require to deliver the same message to our target customers.It will help them to get a clear and specific idea of our brand and what we intend to provide. Our advertisement is designed in both emot ional and rational way. Emotionally we are showing the customer, they can move on in their lives with the help of Spirit and rationally we are giving them the idea that Spirit energy drink is good for their health, as it increases concentration and strength. Sales Promotion Sales promotion is another major step we will carry out to encourage our customers to purchase our product more frequently. Sales promotion can be done in many ways giving discounts, giving lotteries, pop-up adds, etc.We will give incentives to the people of our channels to keep our energy drink in front of the shelves in all the stores we are going to supply. Consumers buys the product that are kept in front side, because people have an idea that good quality things are always kept at the front and they will not want to search for other product as that would be time consuming. In times of special occasions like Eid, we will announce special discounts or extra offers. We will sell our products in front of colleg es, universities and major shopping malls.Therefore we will be exposing our product more to the public and will gain higher chances of selling our product, thus making more profits. Besides, none of our competitors are doing these things, so we can gain competitive advantage over them as well. Personal selling Energy drink is a contraption product, and it is quite impossible to reach the mass people by employing thousands of employees for selling our product. This process is very soft and expensive. So we will not be selling our products personally. We will employ experts in offices, who will deal with customers views and problems.This way we will personally provide/sell our service them beside selling our product. Public relations At the very first stage we will arrange a press conference to inform everyone about our product. Press media is very crucial, as interacting with them positively will encourage them to promote our product more creatively and positively to our customers. This way we can also have competitive advantage over our competitors. We will organize different concerts and sponsor television shows, this will give us an open platform to interact more closely with our customers and build a strong relation with them.Direct marketing We are planning to open a Facebook page along with our official website where we will encourage people to share their views about our product. This will help us to keep track of our customers reaction towards our product. None of the other energy drink companies are doing much of these activities, so it is an easier way to grab a huge number of customers and market share this way. Online marketing is therefore more efficient and fast way of direct marketing in terms of receiving our customers reactions, complaints and comments and adapting to those changes to keep surviving and growing.Promotion Mix strategy We will use push strategy for Spirit energy drink. Contracting with different wholesalers and retailers will h elp us to provide adequate supplies in every convenient and targeted locations. We will give them incentives to promote and supply our product more frequently to the customers. Design of distribution activities- We will go for intensive distribution for Spirit energy drink, because we want to provide stock our product in as many outlets as possible. We want to ensure that our products must be available where and when consumers want them.As our product is new in the market, we will directly offer our product to the target customers. We will be offering our Spirit energy drink to the customers through wholesalers and retailers. Within our limited resources we cannot afford to have our own distribution facilities, like warehouses and showrooms and to hire sales people and complement stuffs. We would rather contract with the wholesalers, so that they will take those extra costs and risks. Our target customers are the young university students, that is why we are contracting with reta ilers.