Free Sample: Marketing Final paper example for writing essay

Marketing Final - Essay Example

One person who has begun their path in making their mark in consumers’ minds by investing in a new product is Kobo Bryant, who has recently established his own company known as Kobo Inc. Kobo Bryant took this time to improve a market which was missing what he thought to be an important aspect… A quality sports drink called [email protected], the basketball phenomenon took the world by surprise when his investment actually turned out to be lucrative and very beneficial. He made an executive decision which happened to work well for him, not to mention “Bryant categorized his investment as “substantial” and says, “l put my skin n the game. Bryant will sit on the board of directors and own more than 10% of the company, according to one source familiar with the negotiations. His investment makes him the third biggest shareholder behind co-founders Mike Repose and Lance Collins. Brand’s investment is expected to be in the $4-6 million range” (Badness’s, 2013). Having a status as an entrepreneur is one which a lot of people wish to have, but it takes a certain amount of devotion and loyalty, as well as having great allies.

Kobo has announced why [email protected] is the epitome off great product, he was recently quoted saying “[email protected] is a brand that I anted to be a part of in a big way. Today’s athletes understand how nutrition impacts performance-?and there’s nothing that compares to [email protected] which is why I chose to invest and become a partner” (Burns, 2014). Additionally, Kobo is partners with two of the most prominent sports drink developers in the industry, Mike Repose and Lance Collins previously had their own beverage success and “the pair sold previous beverage companies to The Coca-Cola Company in 2007, with Repose selling Veterinary for $4. Billion and Collins selling Fuzz Beverage and NOSE for $250 million. While BODYGUARD only totaled $10 million in total sales last ear, the young brand hopes that with Brand’s commitment, it will grab an even greater share of the market in 2014” (Burns, 2014). This is the type of collaboration needed for a product to successfully be marketed, with the experience of Repose and Collins, and the compassion Kobo holds for [email protected], establishing a firm hold in the sports drink industry, will be unproblematic for the group.

These types of relationships and associations are proof making a wise investment is critical to whether or not the venture succeeds, it’s about the type of product and if consumers are even interested in it. Needless to say, in order for this project to be considered, a SOOT analysis is very beneficial. SOOT analysis is a guideline used to ensure that all the relevant parameters are addressed and tackled in order to make certain the business is performing up to or exceeding its standards and/or company goals.

If the company is not performing as desire, then the company can use the SOOT to delve deeper into the issue that may or may not be the underlying issue. After looking at [email protected], there are a number of strengths, these strengths should be used to their advantage, meaning focusing on the highlights of their strong points and incinerate on making them greater. Kobo has a few strengths which will impact just how successful [email protected] turns out to be, and not Just in the beginning, but for the duration of the investment.

One of the strengths behind this product is the name attached to it, Kobo has a broad fan base and has already established a name in the sports industry, so when he backs up product, some consumers will automatically be compelled to Jump on board, simply because Kobo is involved, consumers feel more comfortable and have faith in a product depending on who is backing it up, and when they see an athlete or other recognized faces, they are more eager to at least test the product out. According to Bryant, he will be in “all aspects of the business, and says he wants to focus on the marketing and branding of the product”.

He was quoted saying “l really enjoy framing the story off brand which is what I have done with Nikkei for years with my product” (Badness’s, 2013). His background, combining his experience with the innovations he has implemented with Nikkei is also a strength, and in order to excel in any industry, experience, trial and error, and general involvement is vital to successfully marketing a product, Kobo s on the right path considering his other successful endorsements with Nikkei, Turkish Air, Smart Car, Leno, Hubble and Pain (Badness’s, 2013).

Clearly his strengths are good enough to get the ball rolling and compete in this industry, but with anything there will be weaknesses as well, knowing what those weaknesses are will prepare for what needs to be improved and how to go about doing it, in this case, one of the weaknesses is even though Kobo is very popular and notorious, and has a lot of strengths, there will always be skeptical consumers who will be hesitant on purchasing this product due to his company’s reputation, Kobo Inc. A very new company who has not had the chance to fully dominant the industry, and these things take time, in order to do this “companies need to give creative thought to finding partners that might complement their strengths and offset their weaknesses” (Kettle & Keller, 2012, p. 53). The next thing which needs addressing is the company’s opportunities, which are clearly available in this campaign. First, the need and want for a sports drink with the components of all natural, healthy, and tasty is prevalent, not only in the sports world, but the general population as well, and these are aspects where products such as Storage and

Powered don’t provide. “[email protected] Superseding, an all-natural multifunctional beverage that tackles hydration, protection and recovery, boasts four exotic fruit flavors and two teas. Each [email protected] flavor is packed with four nutrient-rich proprietary [email protected] containing: antioxidants, Vitamins A, C, B complex, electrolytes and amino acids in a shelf stable 16-ounce package. Coconut water fortified with additional electrolytes provides hydrating properties to all flavors of the [email protected] platform.

Recently awarded “Best Functional Beverage of 2011 ” by Bennett. Com, [email protected] is well positioned be the leader in the average industry with its award-winning packaging, great taste and all-natural formulation delivering unparalleled nutritional value” (Chemicals & Chemistry Business, 2012). This speaks volumes on how Kobo Inc. And partners took full advantage of investing in the distribution a product not available, but accepted by a lot of buyers.

The shareholders also understand the importance and significance of this product and partnership, one of them was quoted stating: “To have Mike’s brand-building expertise on my side to grow the [email protected] brand is an incredible opportunity’ (Chemicals & Chemistry Business, 2012). Another opportunity s how the drink is developed, [email protected] offers a variety of flavors which takes away from the mundane and unexciting flavors their competitors offer. Eccentric flavors such as “fruit punch, tropical punch, strawberry banana, mixed berry, orange mango, and grape” are sure to captivate a wide audience ([email protected], 2014).

Mr.. Bryant was also quoted saying “This product can be very disruptive, the current sports drink market dominated by Storage and Powered has become “bland with no innovation” (Badness’s, 2013). All these elements will peak consumers interests quickly, not to mention the flawless, user friendly, and innovative website he company developed. Per the website consumers can take a look at the various flavors, see detailed nutrition information, find stores which carry the product, see personal interviews of top players using this product, and learn about the investors ([email protected], 2014).

These things make consumers feel involved and illustrates the developers are interested in providing them with the most updated information, and are focused on ensuring consumers have access to not only what they will be purchasing, but why they should and who is involved. Obviously, they are heading in he right direction, Lance Collins the CEO of the product exclaimed: “We get calls every day from different distributors around the country that want to carry our brand” (Headdresses, 2013).

Another opportunity they are taking advantage of is connecting with their customers, while marketing at the same time, Collins explained how “the brand also makes use of in-store marketing opportunities at retailers to meet the consumer while they’re shopping to encourage trial and purchase, he further noted how the package also changed based on consumer needs, he says: “Consumers did not like the material overdraw that covered the cap because it was official to remove, and they did not know what to do with the extra material.

Based on this feedback, the brand has removed this overdraw and now features only a twist-off top for easier access” (Headdresses, 2013). By allowing the customers to have a say in the product, this demonstrates great marketing strategies which acknowledges the consumer-business relations to be created, by allowing customers involvement, and shows the business takes customer concerns seriously and displays customers’ needs and ideas are not only welcomed, but accepted and implemented.

No matter how well they seem to be doing, being consistent in ensuring their racketing strategies are unique and incomparable is central to beating the competition and one way to improve their current marketing strategy is to do some extensive research on their competitors and the sports drink industry as a whole, examining market trends, and financial variations.

Considering Kobo is a new investor, and is not experienced in this field, it is imperative to absorb as much information possible, in order to tutorial top competitors, adding this to their current marketing strategies will be very useful. Another way to improve their strategy is to focus more on their brand. The name [email protected]… Hat does it mean? What makes it stand out from the rest? And how is it significant? When one thinks of body armor, they think of protection, or a type of shielding from harm, and a brand is more than Just a name, it is the execution of value and exemplifies substance.

Therefore, [email protected] needs to use this to their advantage and substantiate how their product will protect and shield customers, by providing a high-quality drink while delivering dynamic components in a nutritious, health conscious, and enjoyable drink. A company wouldn’t be complete without threats and no matter how good they are, threats are a realistic matter. A threat could be internal or external and need to be addressed expeditiously in order to avoid a bigger problem.

Concerning [email protected], one aspect which could harm them in the future, is their competitors also coming up with various flavors or making general changes to the product, once competitors are made aware of what designs and concepts the company is implementing, they are inclined to upgrade their own products, as no one wants to lag behind. Another threat for [email protected] is the bad publicity they recently underwent, another company with a similar name, Under Armor, who is a clothing manufacturer “alleged trademark infringement” (Businesslike, 2012).

Which they vehemently deny, and responded stating: “We’re fortunate at [email protected] to have the financial resources and expertise to fight this ridiculous claim and not back down. Hopefully, this will set a strong example to discourage similar wasteful lawsuits against start-ups posing no threat to larger corporate entities. Under Armor is wasting their time, energy, and financial capital launching a merciless lawsuit against a beverage company, meanwhile taking focus away from their actual apparel competitors.

If I were a shareholder of Under Armor, I would eave plenty of questions and concerns” (Businesslike, 2012). However, this could be detrimental for the new company because consumers explicitly don’t like companies who operate fraudulently, even if the claims are not true, once the bad press surfaces, sometimes it’s too late for a company to redeem itself, not to mention, future shareholders may be apprehensive on investing in them, especially considering the lawsuit has Just begun and is still ongoing.

Overall, it appears this is a good product and good investment, [email protected] launched in 2011 and generated $10 million in revenue over the past 12 months. Sales more than doubled each of the past two years” (Badness’s, 2013). These initial numbers demonstrate a great reception thus far, and if the numbers continue on this path, they will be definitely reach the pivotal point they desire, currently, [email protected] is available in 20 states now at convenience stores and colleges.

Repose says he expects it to be in all 50 states within two years (Badness’s, 2013). These reports express the product is doing remarkably well and if they continue on this trend, they will continue to excel. Investments are something which shouldn’t be oaken lightly and it seems as though [email protected] has very good insight with an expert team put in place to handle all aspects of the business. These are Just a few of the fundamentals needed when assessing any company, investments, and product stability. The product itself is the key… Rumoring it and ensuring customer satisfaction outweighs everything, and makes the product speak for itself, as stated earlier there are some brilliant and dedicated individuals behind [email protected] and this is a good strategy, having prominent names standing behind this product can be an opening door, and [email protected] is “wasting no time in its SSH to dominate the sports drink market” (Madden, 2012). BODYWORK’[email protected] presence has certainly caught the attention of some major players and more recently “the Superheat has added baseball player Mike Trout and football players Lessen McCoy, Jason Pierre-Paul and Ray Rice.

Each athlete is an investor and has an equity stake in the company’ (Madden, 2012). Establishing a name for a company is difficult to do, it involves convincing a market a need to purchase the product, and this is done by encompassing a passionate and powerful team behind it. The partnership has exhibited what good investing and marketing entails “through this partnership, he athletes will engage in events, promotions, product testing and campaigns both regionally and nationally. Additionally, there will be opportunities to support their own charities, such as The Ray Rice Charitable Fund, which helps aid youths in the Baltimore, Md. ND New Rockwell, N. Y. Areas” (Madden, 2014). This is very good publicity, because consumers like to know companies are charitable and give back to the community, it shows an upright, contributing, and generous company. A distinct product is one which stands out from the rest, it has exceptional characteristics unlike their competitors and has meaning not only to the company, but consumers as well. A chief part of any product is its design, “design offers functional and aesthetic benefits and appeals to both our rational and emotional sides” (Kettle & Keller, 2012, p. 332).

Luckily [email protected] is aware of this and realize grasping the consumer’s attention in a store with similar products is very essential, the CEO of the company was quoted saying: “the new packaging visuals will help the brand gain shelf prominence to attract consumers to the superior benefits inside the bottle” (DB staff writer, 2013). In order to ensure the product remains in good standing, there are other techniques and methods needed to become relevant in such as a commanding industry; exceptional marketing strategies, company-consumer relations, and a meticulous pricing system are all requirements [email protected] needs to stand by.

Pricing is one of the most important elements in successfully selling a product, if the price is too high, consumers will not purchase it, unless they feel the price and product mesh, in other words, it has to be worth what the company is asking in the customers eyes. Of course, the company may feel as though it is worth more, but is it legalistic? When considering factors such as buyers, target markets, the economy, and past purchasing trends of similar products, what the business may want to charge, takes a back seat.

However, if the price is too low, then the company will be losing out on revenue, when bearing in mind the cost of production, wages, and overall overhead, the price for the product has to be conducive to what customers can afford while allowing the company to see a profit, there are a variety of things which need to be considered when setting a price, and one of those aspects is “determining demand” (Kettle & Keller, 2012, p. 389). If there is a high demand for a product, it is indicative consumers have a desire, and will pay for what they want, even if it’s not a need.

This is a tricky situation, and causes for an experienced exhibits critical thinking and is well versed with financial statements and trends, research has shown “some consumers take the higher price to signify a better product. However, if the price is too high, demand may fall” (Kettle & Keller, 2012, p. 391). [email protected] is not available to purchase in every city as of now, considering they are a very new company, and are still in the process of testing markets and expanding, however, if he product is not available in an area, but is desired, the consumer has the option to purchase the product via the internet.

Going to their website, anyone can type in their zip code or city and state and the search will conclude whether or not it’s available in a specific area, and the consumer can contact [email protected] and request it comes to their city. Nonetheless, [email protected] can be purchased via the internet, and their website will direct the consumer to Amazon to complete the purchase, and they have been very reasonable in their pricing, they are charging $29. 12 for a 12 pack 16 Oz each, and offer free shipping for orders over $35. 0.

In addition, they also have special deals for those who order offline, with the promise the customer will “save 5% when you subscribe to regular deliveries of this item. Save on your entire delivery when you subscribe to 5 or more items that arrive in the same month. No commitments, no obligations, and shipping is FREE” (Amazon [email protected], n. D. ). The price and product seem to winning over customers, there are several reviews which indicate it is a satisfying and adequate drink delivering what is says, this is good for the company because word of mouth has always been a retreat way to sell a product as well.

All of the aforementioned things would be in vain if the product wasn’t distributed, and distribution is one of the keys to ensuring the right people come in contact with the product. In order to do this effectively, there are some questions which need to be addressed and answered; “which geographic areas (neighborhoods or zip codes) contain our most valuable customers? How deeply have we already penetrated these segments? Which distribution channels and promotional media work best in reaching our target clusters in each area? Clustering captures the increasing diversity of the U.

S. Population” (Kettle & Keller, 2012, p. 216). Currently, the drink is being distributed in specific areas, and is doing well, of course, once it reaches its plateau, further distribution will occur, but as of now, “Beverly Hills, Calf. Based [email protected] Nutrition LLC and DRP. Pepper Snapped Group (DIPS), Plano, Texas, have reached a deal to distribute [email protected] in select U. S. Markets. The distribution partnership will focus on expanding Bodywork’[email protected] existing footprint in northern California and New Jersey’ (Business Insight Global, 2013).

Even though it s being distribute in certain areas, purchasing online, the product can be shipped in the “48 contiguous states, and as of now, it is not available in APP/FOP, Hawaii, Alaska, or Puerco Rice” (Amazon [email protected], n. D. ). This is not the only partnership [email protected] has taken on, “[email protected] SUPERSEDING launches its partnership with Big Geyser, one of New Work’s largest independent non-alcoholic beverage distributors to exclusively serve the five boroughs of New York City, including Manhattan, Brooklyn, Queens, The Bronx, Staten Island, as well as Westchester, Long Island, Nassau and Suffolk Counties” (India Pharmacy News, 2012).

This demonstrates the power of distribution and shows Kobo Inc. Is positioning itself to rule the sports drink industry and are heading in the right direction. His company has decided to invest in something which is steadily moving up, all things considered, the product, pricing, and distribution is right where it needs to be at this point, because it will take some time before [email protected] will overthrow their competitors, however, they are surely doing a great Job currently, and this is not only due to the names involved, and their marketing strategy, but their promotions approach as well.

Promoting something takes a lot of time and effort and needs people who are diligent and focused on the cause, it was pretty easy to get athletes to accept this product because Kobo is a familiar face within the sports industry. They have been promoting the product by testing it in certain areas, showing customers how helpful it is by having personal videos from well-known athletes displaying the benefits the drink has, and not only is this drink good for athletes, but for the general population too.

Promoting exactly what this product does is the key, it is infused with multiple tourists and electrolytes which reiterates and replenishes anyone who drinks it. And not only do they promote the product, but the [email protected] also has promotions for potential consumers which is a good way to get people involved and brings attention to the company and product. They have several promotions where people can win the products as well as trips simply by signing up via their website, consumers are always eager to be a part of something and especially when they have the opportunity to win something! [email protected] promotions, n. D. ) Collins and Kobo Inc. Deciding to work together, seems to be a virtuous partnership and is hanging the way the sports drink industry is viewed, by offering an unique and special sports drink, Collins stated, “being armed with the right information and the most innovative tools and strategies allow entrepreneurs to bring engaging products to consumers. When you offer the consumer something new, exciting, and deliver on what you’ve promised on the label, you are miles ahead of the rest” (PR Newswire, 2011).

As with any business, there will be costs and having investors who are willing and able to be a part of the business and its progression is always a good thing. This is why it is imperative to be cautious and smart when deciding to invest in a product, at the end of the day, the benefits need to outdo the risks involved, and even though nothing is 100% error proof, it can be estimated and calculated concerning the projections and future earnings the business will incur.

The super team stated they “are willing to spend approximately $50 million over a 4-5 year period to market and build their year-old brand of “superseding”, not to mention they had an excellent year in 2012, the new sports drink “had sales between $5 million and $10 million” (Galilean, 2013). This is not only welcoming news for the company, but the sports drink/nonalcoholic industry as well, this is a promising field to invest in, and has primarily kept steady numbers, even though there are fluctuations, overall, over the years they have remained high. See Appendix A for an industry comparisons). [email protected] is living up to its name and is prepared to arm itself with the financial weaponry it needs to begin, compete, and stay afloat. With such a large budget, prominent investors, and business partnerships such as Kobo Inc. Getting the exposure they need should not be a difficult task, however, they are prepared to Penn $50 million, over 4-5 years this gives them some leeway, if the maximum is used this will cost them approximately $10 million a year.

As stated above, the first year they were in launched, they sold $5-$10 million, using these numbers, as it stands now, they would break even, if they continued on this trend. Not only will there break even, but possibly exceed their expectations, [email protected] has already been accepted by the community and is gaining their reputation, since they are a private company, their financial information is limited to the public, however, based n their most recent numbers compared with what the sports drink industry is forecasted to earn, shows they are certainly on point.

Compared to other healthy and sports related components in the industry, such as sports foods and supplements, sports drinks seem to prevail. Research demonstrates “the global market for sports nutrition products increased from $27. 8 billion in 2007 to an estimated $31. 2 billion in 2008. It should reach $91. 8 billion by 2013, a compound annual growth rate (CARR) of 24. 1% Sports beverages have the largest share of the market and were worth $24. 9 billion in 2007. This is expected to increase to $27. Billion in 2008 and $87. 0 billion in 2013, for a CARR of 25. 6%! (BCC Research, n. D. ). (See Appendix B for a detailed graph for projections from 2007-2013 of sports drinks). This is good news for Kobo Inc. , the numbers are steadily increasing and it shows how important staying fit and health conscious is to consumers, they have the buying power, so it is imperative companies, especially newer ones, cater to them and their wants. In conclusion, the key to maintaining a vast customer base is the amount of time and focus put into the marketing strategy, the emphasis on customer satisfaction, ND the company’s mission and vision.

Kobo Inc. Is a very new company who still has a lot to learn when it comes to investing, however, this initial investment has not been a lost cause, and he has backed up a product with several influential and mighty people. A company will never be so great improvements will never be an option, so this is an on-going process, even though the business may be content with sales and revenue, there will come a time where something will need to be enhanced. An investment is not about merely financing and being involved in a business venture, it also is about making a statement… Boning to individuals, like competitors, other shareholders, and the company itself whom is worthy of being introduced to society, and an investment is about the customer, its more than a financial move to gain money, if the customer isn’t one of the essential aspects, the product won’t do well. To reach the goals they have set, it will take an unlimited amount of dedication, drive, and consumer attention, these are the most important things needed when marketing a product and investing in one.