Target Market
As it was mentioned earlier, the product is aimed at working women professionals who do not have enough time for a sophisticated drink. It could be said that only certain groups of consumers will be able to afford it. It could be said that consumers would be working professionals of the age 19-65-year-old. According to statistics, it could be said that women occupied 52,9 % in Mauldin and 51,4 % in South Carolina in 2010 (People Quick Facts, 2013). Furthermore, 91% of the Mauldin area’s population graduated from high school, and 35% have a bachelor’s degree or higher (People Quick Facts, 2013). It could be concluded that half of the Mauldin population are working women, who would be potentially interested in the product.
Moreover, as it is a premium class beverage, it is aimed at women who are able to afford it with an approximate income of $20,000 per year. As it was mentioned earlier, the product is aimed at women working professionals since they experience a significant lack of time. The primary occupation focus is any profession, which is time-consuming and tiring. In this case, Liquid Innovations will help them to refill their strengths. Even though the product is originally meant for women, working men could also be considered as a potential target market, as they are also occupied with work.
Speaking of marital status, in this case, its role is insignificant, as both married and single men and women might experience an equal need for energy refill and desire for satisfaction from a delicious drink. Moreover, other characteristics, such as family size and ethnicity, also do not have a strong effect on people’s choices. However, family size might mean a higher expenditure of a household. Subsequently, it might affect a family’s ability to afford a Liquid’s Innovation premium drink. The ownership of the house also has no influence on the choice, as it is widely known that it is not a suitable solution to purchase their houses for some families.
As the company uses retailers for goods distribution, the number of supermarkets present in the area has to be determined. The large retailers are chosen as primary distributors, as it would be easier to spread the products around the area. BI-LO and Walmart are selected, as they are retail companies with high revenues. There are twenty BI-LO stores located in Greenville and Mauldin (BI-LO: Store locator, 2015). Speaking of Walmart, there are also many Walmart stores in the area. This fact implies that the beverages will be distributed efficiently.
Market Competition
Various factors could be used to access the competition on the market, such as financial resources, marketing budget, technological competence, access to supplies, economies of scale, trademarks, and ability to innovate (Abrams, 2014). It is clear that competition in the market is high. However, focusing on a particular niche will help Liquid Innovations resolve this problem. As the target group is working women, the market density would be significantly lower as it is on the general soft drink market. Nonetheless, it will still be intense on the ready-to-drink tea market.
The primary competitors of the company are Nestea, Lipton, and Arizona, as all of these brands are present globally and perform economies of scale. It could be said that these enterprises have a significant advantage in terms of financial resources, marketing budget, patents, access to supplies, and opportunities for development and innovation. For example, Nestea occupies a significant share of the market, the products are focused on the number of calories, and the Coca Cola’s sub-brand offers various teas with seasonal flavors (Nestea: FAQ, 2015).
Moreover, the substitutes of Liquid Innovations’ Gravi Tea could be various soft drinks such as Sprite, Pepsi, Fanta, and others. The producers of these beverages also implement the economies of scale and could be considered as a potential threat as they have advancements in all areas mentioned above.
Other possible competitors are restaurants in the area, which offer takeaway beverages. One of them is Starbucks, as it also offers a broad range of delicious teas and coffees for a premium price (Starbucks Coffee Company, 2015). The products consist of high-quality materials, and the company also performs economies of scale and has the advancement in all the areas mentioned previously, as it has a well-developed infrastructure and brand image.
However, Gravi Tea could be competitive on the market if it focuses precisely on working women. There are no products, which concentrate specifically on this niche. As it was mentioned in the target group section, working women from age 19-65 occupy a significant share of the area’s population. In this case, providing specific products for this target market will ease Liquid Innovations’ ability to sustain itself on the market. Moreover, Gravi Tea combines a few calories and exceptional flavors to enjoy a sophisticated modern tea ceremony on the go.
Speaking of market share, it could be said that Pepsi’s Lipton has the highest revenue and occupies a substantial segment of the market (Statista, 2015). The second place is owned by Arizona Beverages (Statista, 2015). It could be concluded that both companies almost equally share the tea market. However, their primary strategy is economies of scale, as both of them have high customer loyalty. Moreover, it could be said that the products are designed for mass production. In this case, focusing on working women is the best solution for Liquid Innovations, as the competition on the market is intense. Furthermore, each bottle of Gravi Tea is special and unique, as it is manufactured with care on a lower scale.
Company’s Message
The company’s image could be clarified with the help of the Five F’s, which stand for functions, finances, freedom, feelings, and future (Abrams, 2014). As for the functions, the aim of the product is to refill the levels of energy with a delicious premium class beverage. Moreover, the quality to price ratio is reasonable, as Gravi Tea is a premium product. Speaking of freedom, as it is based on customers’ opinions, it could be said that customers’ views are taken into account. Customers have the freedom to choose their own flavors and advice their preferences to the company. As for the future, the brand will continue its enhancement of a variety of flavors while developing an encouraging relationship with its customers.
Marketing Tools
As it was mentioned earlier, a company would provide its products via retailers. However, the marking vehicles still have to be taking into account since it is essential to establish trustful connections with the clients in the beginning.
Online marketing tactics would be utilized as it is the most common marketing tool. The Internet and technology have substantial impacts on companies’ marketing instruments, as it is pivotal for a corporation to become readily accessible online (Benady, 2014). There are several online tactics, which can be applied to increase the presence of the product on the market, such as website, SEO, SEM, email newsletters, blogs, and social media (Abrams, 2014).
In the case of the Liquid Innovations, it is vital to establish a positive and constructive website to provide relevant and interesting information about the products. Additionally, it is essential to include a particular slot where the customers can leave their suggestions and opinions about the products. SEO is rather necessary for any business, as it increases the chances of finding a company on the first page of Google search.
In this case, paid search engine marking is the most suitable tool, as it guarantees the visibility of the company. Creating a page in social media will help to increase population awareness of a new product. It will contain various posts about special offers, products, and just exciting news to attract more attention. In terms of other strategies, it could be said that they would not be useful in this case, as there is not customer base.
It could be said that online marketing is widely used by other companies in this industry, such as Arizona, Lipton, and Nestea. All of these firms have their websites and Facebook communities, where they post about their new seasonal specials and other news. It could be said that applying online marketing strategy helps them inform their customers about new products and special features.
As the company is not well-known, one of the most effective marking techniques will be sampling in the retail locations. It will help Liquid Innovations increase customers’ awareness and start building a positive image on the market. The event of Facebook will be created to attract more potential clients.
Moreover, a company needs to gain the attention of the retailer to distribute its products efficiently. The most suitable tool is trade show. In this case, Liquid Innovations could reach potential retailers on Atlantic Coast Exposition – Vending Expo (Atlantic Coast Exposition, 2015).
References
Abrams, R. (2014). Successful business plan: Secrets & strategies. Palo Alto, CA: PlanningShop.
Atlantic Coast Exposition – Vending Expo. (2015). Web.
Benady, D. (2014). How technology is changing marketing. The Guardian. Web.
BI-LO: Store locator. (2015). Web.
Nestea: FAQ. (2015). Web.
Starbucks Coffee Company. (2015). Web.
Statista: Leading ready-to-drink (RTD) tea companies in the United States in 2014, based on sales (in million U.S. dollars. (2015). Web.
People Quick Facts: Mauldin and South Carolina. (2013). Web.