Customer analysis- The target customer market comprises over 2 million potential buyers. This is a large market that promises high revenues if successful.
Competitor analysis- Currently there is one dominant market leader. This calls for concentrating on a niche market.
Collaborators- This will include sellers of complementary products.
SWOT Analysis- The strengths include massive financial backing, a dedicated workforce and goal oriented management. Threats include bigger rivals with more time and experience in the industry.
Selected Market Strategy
The strategy selected is to focus on premium products. Though this is a high price low volume strategy, there is a niche market. This market has over 2 million potential customers. Below are the 4 Ps of marketing mix decisions adopted
Product position- positioning is the establishment of a product within a particular market segment. The main aim of a positioning strategy is to place a brand and its associated products in a certain position. This position is relative to the competition it faces. A good pricing position must be properly aligned. Tropical drinks Limited aims to be a premier soft drinks brand.
Pricing- Pricing is the process of determining the appropriate price of a good or a service. For a premium product, the pricing will be a notch higher than the market price. This is because too low a price will discourage customers from buying. It will be associated with low quality.
Place- This refers to the distribution mechanisms to be adopted for the product. Distribution will be done using a fleet of company owned trucks. Third party distributors will also be sub-contracted.
Promotions strategy- Promotion strategies are the methodologies used in carrying out promotions. Both monetary and nonmonetary promotions give consumers opportunities for entertainment, exploration and value expression. Marketing materials to be used are the company website, business cards, print brochures and catalogs. Promotions will be carried out through trade shows and expos, television ads and press releases. Online marketing will also be employed. This will include keyword strategy, search engine optimization strategy, paid online advert strategy and social media strategy. Offers are incentives given to buyers in order to either boost or stimulate sales. They will include free trials, combination of different products and services, discounts and money-back guarantees. This will result in a rapid growth for the business.
Conversion strategy- This refers to the techniques a business employs to turn the prospective customers into actual buyers of a product. The company website will be optimized to make it easier for potential customers to access. Another tactic will be to seek third party references from major authorities within the industry. This will go a long way in gaining customer trust. Customer reviews and testimonials will be included in the website. It has been proven that such feedback gives visitors more confidence in a companys products. The budget for promotions will be set at $100,000 a month.
Retention strategy- A retention strategy is a method of keeping consumers hooked to a particular product or service. Once customers have been gained, it is important to retain them. They need to be stimulated to buy more often. A monthly newsletter and a loyalty program will fulfill this task. Customers will be awarded bonuses after a certain number of purchases.
These are the estimated figures that predict future outcomes and situations. Though they are usually not 100% accurate, they are important in identifying the promotional expenses and other strategies that will yield the highest returns on investment. Promotional expenses are expected to amount to $ 100,000 per month. However, sales are likely to amount to $ 250, 000. This leaves a gross profit margin of $ 150,000. Customer growth is expected to rise by 20% each year. These projections have been arrived at through the analysis of the strategies adopted. Furthermore, the main goal is to increase annual sales by 30% each year.
The above plan promises to establish the company brand amidst an overcrowded market. There is a large untapped market that promises big returns. Furthermore, the adopted strategies promise to deliver the companys visions and dreams.
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Marketing Strategy. (2021, Mar 06). Retrieved from https://proessays.net/essays/marketing-strategy
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