Product Description
Product/Service and Industry Sector
Foot orienteering is a new sporting product that the young, the middle-aged, and the old individuals can undertake. Ferguson and Turbyhill (2013) describes foot orienteering as a sport that involves navigation of terrains on foot, which are unfamiliar to the participants. Since the firm offers foot orienteering (the sport) and Rockstar (the drink), it falls under the industry sector of sports in the United Kingdom. The participants need an energy drink to energize and rejuvenate their bodies. The United Kingdom has elaborate legal structures that define and guide the sport industry and thus support foot orienteering.
Legal Structure and Business Unit
Legal structures in the United Kingdom recognize foot orienteering as a sport, which has existed for several years and is currently under the management and control of the British Orienteering Federation (Hawkins 2010). The study selected the United Kingdom, which has a target market that comprise of the youth, the middle-aged adults, and the old adults. Moreover, Rockstar is a safe energy drink because it meets international standards of consumer safety, and thus, the participants of the sport should take it during and after engaging in foot orienteering. Thus, the service of foot orienteering and the sale of Rockstar as energy drink should occur in the same place.
Market Analysis
PESTEL Analysis and the Target Market
The political system of the United Kingdom is stable and well structured. Stable Political structures promote tranquility and economic growth of a country (Bowman & Gatignon 2010). United Kingdom has a capitalistic form of economy that encourages entrepreneurship and innovation and enhances the purchasing power of potential consumers.
Moreover, liberal socio-cultural setting in the country encourages participation in sports. The citizens of the country are enlightened, and thus, participate in sports, and consume of Rockstar. Remarkably, the United Kingdom has an advanced technology, especially in sector like ICT. Technological advancements facilitate easy marketing and sale of foot orienteering and Rockstar.
The country has created a good marketing environment for entrepreneurs to sell their products by instituting policies like well-structured legal frameworks. The country has organized legal frameworks that govern sports and business industries. The legal provisions also promote the provision of safe and high quality products.
Porters Five Forces
The first force in the Porter’s five forces is the bargaining power of suppliers and is very important for its effective application makes suppliers deliver the products on time in the right quantity and qualities, as well as fair prices. Bargaining power of customers is the second force, which enhances the volume of sales if a firm controls it effectively (Faarup 2010).
The third force is the threat of new entrants that eventually reduces the profitability of the firm and the competitors. Threat of new entrants is a challenge to the existing firms as well as new firms. The threat of substitute products is the fourth force in the model and is important as it affects the marketing environment and reduces the profit levels of the firms (Boone & Kurtz 2008). The fifth force is the magnitude of rivalry in the market that comprises of competition, advertising, and the number of competitors in the market. The forces in the model are very important since they determine success or failure of the firm.
Competitors in the Market and Barriers to Entry in the Market
Some of the competitors in the market include clubs like Lake Orienteering Club (LOC), Devon Orienteering, and Harlequins Orienteering. The strengths that the clubs enjoy include high market share and good reputation in service delivery. Some of the weaknesses that the firm can use include effective pricing and improvement of product quality to achieve successful entry into the market (Kemmer & Boden 2012). Some of the barriers that the firm can encounter in its attempt to enter the market include competition, customer loyalty, and economies of scale.
Unique Selling Point of the Products
The unique selling points for the firm centers on its ability to provide a diversity of products like foot orienteering and Rockstar to consumers during and after their participation in the activity. Subsequently, the firm’s plan to sell its products at discounted prices is another unique selling point. According to Cheverton (2005), diversity in product delivery facilitates success and growth of a firm. Furthermore, the sale of products at discounted price persuades several consumers in the target market to consume the products from the firm and acts as a unique selling point.
Marketing Plan
Marketing Mix
In the first year of operation, the firm expects to employ elements of the marketing mix to improve its market share and increase consumer base. Some of the marketing mix elements include place, price, promotion and product (Smith & Taylor 2004). The firm will place its products in areas, which are close to where the target consumers reside and prime orienteering destinations exist.
Furthermore, the firm will price its products in a range that falls within the purchasing power of its clients and gain competitive advantage. According to Strydom (2005), media such as radio, television, and the Internet will be useful in product promotion and marketing. Firm’s products, which include foot orienteering and Rockstar have to meet expectations of consumers.
Distribution Strategy, Pricing Strategy, and Promotional Strategies
After ascertaining product viability, the firm will place or distribute its products in strategic points that are accessible to potential consumers. Placements of Rockstar will be strategic in locations where potential customers are found, while foot orienteering will be undertaken in destinations like Darnaway and Leith Hill. Henry (2011) asserts that effective pricing strategy needs to consider the purchasing power of the target clients and the prices of competitors.
Additionally, the firm will price its products in a manner that does not strain the operational budget of the firm, while earning a profit. Media of communication such as televisions, radios, newspapers, and magazines are very instrumental in marketing the firm’s products and persuading potential customers to purchase the products (Richter 2012). The employment of these promotion media is appropriate because they are effective conveying the intended message to the right segment of consumers in a fast manner.
Conclusion
Foot orienteering and Rockstar are some of the products that complement each other since individuals always need an energy drink during and after foot orienteering.
The United Kingdom is a country that has a good political and economic stability, and thus, it reflects a high customer purchasing power. From the study, it is evident that the majority of the people enjoy leisure activities such as orienteering, an implication that the demand for the product is high. Competition is high and cutthroat as clubs and organizations that offer these services fight for the dynamic market characterized by the young, the middle-aged, and the old individuals.
Recommendations
Some of the short-term recommendations that the firm needs to employ include effective pricing, extensive marketing, provision of discounts, and avail free samples.
Effective application of these recommendations increases client awareness and willingness to purchase the products from the firm. Furthermore, customer awareness, loyalty, and trust will increase through implementation of these recommendations. Although the firm expects to enjoy word of mouth marketing from past clients, some of its long-term recommendations include the focus on product quality and good pricing strategy so that it sustains its growth and success in the competitive market.
References
Boone, L, & Kurtz, D 2008, Contemporary Marketing 2009 Update, Cengage Learning, London.
Bowman, D, & Gatignon, H 2010, Market Response and Marketing Mix Models: Trends and Research Opportunities, Now Publishers Inc, London.
Cheverton, P 2005, Key Marketing Skills: Strategies, Tools, and Techniques for Marketing Success, Kogan Page Publishers, London.
Faarup, P 2010, The Marketing Framework, Academica, London.
Ferguson, C, &Turbyfill, R 2013, Discovering Orienteering: Skills, Techniques, and Activities, Human Kinetics, Illinois.
Hawkins, P 2010, Map and Compass: The Art of Navigation, Cicerone Press Limited, London.
Henry, A 2011, Understanding Strategic Management, Oxford University Press, London.
Kemmer, K, & Boden, A 2012, ‘Price’ as one Parameter in the Marketing Mix, GRIN Verlag, Berlin.
Richter, T 2012, International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from World-markets, Logos Verlag Berlin GmbH, Berlin.
Smith, P, & Taylor, J 2004, Marketing Communications: An Integrated Approach, Kogan Page Publishers, London.
Strydom, J 2005, Introduction to Marketing, Juta and Company Ltd, Claremont.