Levto Company is a recently established company with the aim of producing and supplying a non-alcoholic energy drink by the name booster to the growing population. The company intends to advertise its new product its product around Alabama-Huntsville since the core found to come from this region and they want to use their local influence to attract customers.
Levto is a recently established company owned by Levis and Tony who both reside live in Huntsville region. The company is cantered on providing excellent made Booster energy drink which houses a greater part of various nutrients and vitamins that are essential for general human health. The primary importance of the company is to provide non-alcoholic beverage drinks for everybody that helps in improving the overall health. Booster energy drink was due to the increased demand for energy drinks of energy drinks in the region since individuals get involved in jobs that require a lot of energy on a daily basis and need to boost their energy.
The company is new in the market hence the first marketing will be done in Alabama where it is located and specifically in Alabama-Huntsville where Levis and Tony stays. This marketing, however, will outline how Levto Company plans to introduce its new products, enter new markets as well as expand its distribution.
The mission of Levto Company:
To offer the best alcohol-free and delicious flavours of natural beverage that vitalizes the brain and body.
The Slogan of Booster
The drink aims at boosting an individual's energy every time glucose level goes down during mental and physical activity. So the slogan of booster could be: Energy on the Go, Just for You.'
Booster energy is a new product. Therefore, the two entrepreneurs will first focus on the local market, a radius twenty-five miles from where they live. This will give them a chance to learn on how their product is perceived by the actual consumers. They will focus on Alabama-Huntsville region as the region have some of their friend who will also be customers and will help them to spread the news regarding the newly introduced energy drink.
The majority of individuals in this region are aged 18-45 years, and this will be the primary target. This person is at the peak of engaging their bodies and minds in mental and physical activities and usually need energy supplements to keep their organs work efficiently and in harmony. Everybody in this region is our target customers. However, individuals who are involved in various activities on a daily basis are youth hence they require more energy while carrying out their task.
Income, and Occupation
The average income per person in the region stands and $30,979 while household income stands at $48,775. This shows that individuals in this area can afford product due to the higher level of earnings and good professional background.
Race and Ethnicity
This factor might not come into play in the marketing strategy. The region comprises of Asians, black Americans Native Hawaiian and whites. The company will target everyone rather than any particular group in this area.
Level of Education
The product is suitable for everyone to be it you are literate or illiterate, and there is no restriction. However, the region already comprises of intelligent individuals with 92% having graduated from high school while 25% hold the bachelor degree. This means that consumers will able to read and understand more regarding the product and quickly understand the advertising message.
No business exist in a vacuum environment, there is always competition, and this is what make the business environment enjoyable. The market that the company has targeted is already dominated with entry drinks from popular global manufactures such as Red Bull, PepsiCo, and Coca-Cola. These companies have attracted a large pool of customers not only in the region but globally (Kapferer, 2012).
To deal with such competition, the company can use pricing strategy whereby it targets price, sensitive consumers. The product will retail and a lower price as compared to others. The company can also focus on an individual market niche where it dedicates all its attention and all resources available. Once established in that niche, the company will have more audience and credibility to expand. Notably, these bigger brands have a more-cut-dry approach to customer service as their interaction is not personal. This company will exploit this weakness and make it an opportunity for interaction with consumers (Ries, 2008).
Barriers to Entry
One of the challenges that Levto will face is barriers to entry. Various competitors such as Pepsi have already established themselves and laid infrastructures such as distribution channels. They also have a cost advantage due to the economy of scale and their bargaining powers of suppliers and buyers is high. It was not easy to offer a single strategy to overcoming the barriers to market entry. Nonetheless, barriers should be identified even before product development to enable the company project the period and time by which the dominating firms might breach this barrier.
Market Share Distribution
Non-alcoholic beverage corporations and restaurants have turned to creative campaigns to boost the consumption of these beverages. Companies such as cola-cola and Pepsi have historically dominated the market owning up 70% of the local market share. Coca-Cola has substantially increased their market share in the last three years, and the overall competition in non-alcoholic drinks is becoming more intense.
The non-alcoholic industry is competitive and remains competitive. However, Levto still has the upper hand in handling the increasing challenges such as competition. The company is committed itself to offering consumers with an opportunity to explore the current non-alcoholic beverage trends. Due to small regional coverage, the company has focused on customer care and product quality since it the ingredients used in manufacturing has been well monitored and has been tested for any possible danger if consumed. Booster energy is retailing at affordable prices and the production plant has been maintained to the highest hygienic standards
Marketing Message and Vehicles
The companys marketing message will be: Energy on the Go, Just for You.' The message which is also the slogan will be aired on the local television. The marketing vehicle that the company will use local supermarket to sell its product. The supermarket attract a lot of consumers and with the promotion strategy that accompanies the product; buy one get one free, more customers will be attracted to by the drink (Bhasin,2012). Even though companies such as Pepsi continues to dominate the non-alcoholic beverage market. Levto still has a capability of luring more customer through advertisement of its product on social media, companys website which stands to attract more customers. The company will also involve itself in sponsoring some of the events in the region to expand its recognition.
Bhasin, K. (2012). The Marketing Strategy This Energy Drink Used To Take On Red Bull And Become A Billion Dollar Brand. Available: http://www.businessinsider.com/the-marketing-strategy-this-energy-drink-used-to-take-on-red-bull-and-become-a-billion-dollar-brand-2012-2. Last accessed 11th Feb 2016.
Kapferer, J. N. (2012). The New Strategic Brand Management: Advanced insights and strategic thinking. Kogan page publishers.
Ries, A., Trout, J. (2008). Positioning: The Battle for Your Mind. New Dehli: Tata McGraw Hill. p2-10.
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