Free Sample: Principles of Marketing paper example for writing essay

Principles of Marketing - Essay Example

New product development marketing mix / Launch plan 5 Strengths 3 Product 5 price 5 Distribution Promotion 6 8. Conclusion 8 5 9. Recommendations 8 National Account Management 8 Marketing mix recommendation for further development Reference 11 1. Introduction 9 This report will focus on the analysis of a new product development process, with the example of Impulse energy drink which is owned by Lipton, Milliner. This report begins with a brief analysis of the United Kingdom energy drink market and an overview of category management by Lipton and the decision to enter energy drink market.

Next, the report will contribute to the product innovation affecting the Impulse positioning, and details of new product’s strengths, weaknesses, opportunities and threats. Following, this report will discuss the short-term and long term development objectives and communication marketing mix. Finally, the report will come to conclusion and offer recommendations for Lipton regarding the launch of new Impulse. 2. Energy drink market in the United Kingdom (I-J) The consumption of energy drink industry has increased significantly since the launch of Red Bull in 1997 (Mammalian’s et. L. , 2007). The total convenience store beverage market demonstrates the total convenience store beverage market account or 20%. In this booming industry, the main brands, Red Bull and V, comprise more than 97% (Ganja & Brown, 2012). Milliner, one of the world’s largest distributors of grocery goods with access to supermarket shelf space nationwide, decides to launch an energy drink under the Lipton Brand, which is a very strong brand with a world market share of 10% (Nostrums, 2012). 3.

Overview of category management by Lipton “Category management is widely heralded process designed to help the retailer achieve overall category performance objectives by coordinating buying, merchandising and pricing decisions for products in the category’ (Bassoon et. L. , 2001, pap). Rational for replacing existing brands: Lipton is a strong tea brand. As a natural ingredient, herbal mate is used in teas and some energy drinks (Smith, 2010). Leveraging the brand equity and profitable energy drink market, Lipton can extend its product range to energy drink for higher consumer sales and enhanced profitability (Kettle, 2010). . Product innovation Name: Impulse Size: some Flavor: comparable to other energy drinks Target group: young adult consumers, especially 18-45 males Target market: the United Kingdom Packaging: leverage off brand strength of natural ingredients and labeling to ammunition with consumers Product differentiation: natural drink Energy drinks such as Red Bull, Rock Star and Monster are designed to offer the consumer an extra burst of energy by the combination of stimulants, including caffeine, terrine and acculturation (Horn & Renee, 2000).

However, “the toxicity from caffeine overdose is being reported to hospitals and poisons centre” (Ganja & Brown, 2012, pap). The healthy issue is concerned by the consumers. Accordingly, adopting herbal mate and no caffeine, Impulse would be advertised as a healthy drink, which is a point of difference (POD). . SOOT analysis for Impulse Energy Drink in I-J drinks market SST The development of new products requires expertise in all areas, marketing and business strategy (Trout, 2008).

Being a brand undo tech can leverage off the advantages from this multi-national company understanding of the market, proven to be essential for profit grog resources which reduce the relative cost and risk of new product Established brand names can be used to grant legitimacy to new markets” Jackson et. Al. , 2000, IPPP) Strong market association to Weaknesses Impulse is a new entrant into energy drink

Limited product portfolio for flavors and packaging No sugar free option to address health concerns of the market (If Opportunities The major energy drinkers are the youth who are willing to try en are easily reached by marketing strategies Drinking energy drink for modern youth culture Leverage off the existing brand persona natural ingredients, which can be used to differentiate Impulse a in energy drink category (Liana & Lee, 2010). Threats New entrants into Fast Moving Consumer Goods (FMC) sector w competition: Leading brands such as Red Bull, Monster and Rock Start-up businesses like Cocaine and Hemp.

They have financial s multinational companies which are hoping to access the growing market (The Communications Council, 2009) Indirect competitors non-energy beverage companies such as Pepsi and Struck coif may consider them as alternate. Potential political intervention t on energy drink market 6. New product development objectives Short term Set up Impulse and link to product category, ensuring the brand with the energy drink category Use a marketing mix that common segments which purposively different from other competitors. The heavily on extreme high octane sports, but centered on its natural

Gain brand awareness within the key target market Launch exciting brand repositioning campaign for driving desire of the Impulse Leverage off the Lipton brand and promote the trap Long term Turn Impulse into a serious energy player for Lipton, competing a players (The Communications Council, 2009) Become part of the evoked set when consumers consider the purchase of an energy drink Win a sustainable market share in the energy drink category, with 10% volume market share in year 1, increasing that to 20% volume market share in year 2 7.

New product development marketing mix / Launch plan Product: (see 4. Product innovation) Price Product pricing strategy: penetration pricing Aiming to stimulate market growth and capture share, the price of Impulse would be 5% lower than Red Bull, which is the leading brand in energy drink market. Distribution is a central concern to Lipton seeking to make the energy drink conveniently accessible to buyers (Kettle & Levy, 1969).

Improve overall sales channels to provide access to the direct target market Establish new distribution channels that take advantage of the natural ingredients of Impulse. For example, these would include more niche markets where energy and health is combined, such s sporting venues, more alternative health and living market sectors Introduce Impulse to dispensing machines and fast food outlets Promotion Averting The new Impulse advertising should focus on engaging with the target audience. Advertising is usually geared towards developing market awareness and it is used t work over the long term” (Fill, 2013, IPPP). Utilizing the natural ingredient as POD, Unique Selling Proposition (USPS) messages could promote quick sales and Emotional Selling Proposition (ESP.) messages could create brand loyalty within the target audience and strengthen the link with peers to promote consistent repurchasing (Fill, 013). Sponsorship As an energy drink, sponsorship of high octane sporting events will build a customer base and create demand in energy drink market.

Further, supporting a local concert or cooperating with a music venue, these activities can offer free Impulse energy drink, attract people’s attention and achieve first trial (Marketing Notes, 2012). Digital marketing Critical digital marketing allows the new Impulse to provide rational and product- based information such as the natural ingredients. To integrate with other communication strategies, digital marketing can share information to the target audiences.

For example, digital marketing could integrate with traditional TV advertising by delivering the same advertising through interactive TV website, mobile internet devices (MID), social marketing website and the broader internet. The relevant information regarding the new Impulse will be delivered to the target audiences. This information is personalized through the consumer interaction with the digital media, multiple channels and can be extremely cost-effective (Fill, 2013).

Digital marketing could stream the TV on targeted websites including sports, gaming and entertainment websites Cinema spots could be used to reinforce the ewe brand message during male-targeted films Brand experiences A communication mix includes brand experiences which will reduce the expenditure and break through to the target audiences with greater effect compared to some forms of advertising. Alternative strategies can be: Supplying and marketing to the target audiences, Impulse could attend social functions such as sporting clubs, schools, hosting and sponsoring parties and other venues where consumers are likely to sample new products.

This method will generate actual sampling and gauge consumer reaction. In addition, this strategy can rate a broader market base and generate new consumers The new Impulse will be active at events and nightclubs promoting the great natural flavor as a main mixer with alcohol (Ingram, 2004). Sales promotion The new Impulse must attract the consumer at the point of purchase. Point of Sale (POS) could create interest and persuade the consumer to purchase, switch from another brand, or maintain the original intent to purchase new Impulse (Fill, 2013).

Further, POS will be intent on maximizing shelf space and even gain shelf space from other competitors such as Red Bull or V. The new Impulse needs to communicate wrought the key point to the consumers: the POD which Impulse is holding with natural ingredient The key point need to have impact and interact with the target audiences. For example, Impulse should offer aggressive punching bag images Impulse should target the point of purchase, encourage consumers to switch brands and feel the difference of natural ingredients.

Price could be marked on decals to drive trial purchases and appraisal at point of purchase. 8. Conclusion Taking Impulse as an example, this report has analyses the new product development process in the first stage. The successful launch of new product will be mounded on a dialogue to the target audiences. Meanwhile, the success of the new product will be also driven through competing with other dominant market leaders with the use of the recommended communication mix, defining the sustainable short term and long term strategies relating to product, price, distribution and promotion. . Recommendations National Account Management As an important account, Lipton could use National Account Management (NAME) method to manage Impulse. For example, having an executive team to take responsibility for all aspects of Impulse’s business, including directly and co- . Arm-, of Sing. Ordination activities (Shapiro, 1989). NAME approach could be a business equipment and service customers (Yip & Madsen, 199 With the launch of the new product, Impulse would recognize disadvantages in the first development process.