Strategic Marketing Plan for a New Energy Drink

Executive Summary

Carpe Diem Beverage Co. is a small limited liability company that has been established to manufacture and distribute healthy energy drinks in the US market.

The Mission of the company is to be a leader in the manufacturing and marketing of healthy, nutritious beverages in the USA and to satisfy consumers’ needs while at the same time enhancing the individual and society well being. The marketing objective of the company is to capture 0.015% of the US energy drink market in the first year of its operation and to create significant brand awareness in the market especially among the Generation Y population.

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The Strengths of the company include a new unique product that is healthy and taste better than its competitors products. The company’s image is favorable due to its social and environmental friendly techniques. The weaknesses of the company include limited financial resources, limited knowledge and experience and lack of a distributor network.

Opportunities of the company include strong growth opportunities in the segment, global marketing opportunities, increasing demand for healthy soft drinks and low barriers of entry. Threats include a strong reaction from established and resourced competitors and possibility of imitations and launch of similar products by competitors

After considering the SWOT of the new company, there are considerable opportunities for the new product in the market and the level of threats is low and manageable. I therefore recommend the marketing plan to be implemented.

Outline

Abstract
Strategic Marketing Planning: Mission, Vision, Objectives and Values
Situational Analysis
Industry Overview
Company position in the Industry, Positioning and Targeting
Macro Environmental Factors
SWOT Analysis for Carpe Diem Beverages Co. Ltd
Marketing Mix Strategies
Implementation, Evaluation and Control
Time Plan and Budget.
Work Cited

Introduction

The soft drink market in the USA has been declining gradually in the recent past which has been attributed to health concerns about carbonated sugary drinks (Rosman) and the effects of the global financial recession which has caused consumers to abandon non essential purchases (cnbc.com).

At the same time, healthy beverages such as ready to drink teas, bottled water, fruit juices and other non carbonated drinks have experienced steady growth (cnbc.com). This trend indicates that consumers are shifting away from fizzy sugary drink and prefer healthier and economical alternatives.

The energy drink segment specifically has experienced the fastest growth in the industry; since its introduction in the US market in 1997, the segment has grown at an average rate of 20% compounded annually (Heckman, Sherry, and De Mejia). The market was estimated to be worth $4.9 billion in 2008 and was expected to reach $12.8 billion by year 2013 (Heckman, Sherry, and De Mejia). This offers a very lucrative opportunity that is attractive to new entrants in the beverage industry.

Carpe Diem Beverage Company is a new company based in Ogden City, Utah which has developed a new energy drink product named Carpe Diem that intends to exploit the marketing opportunity that currently exists while at the same time delivering a superior healthy product to consumers. This paper outlines a strategic marketing plan for the introduction and marketing of Carpe Diem energy drink in the US market.

Strategic Marketing Plan for Carpe Diem Energy Drink

Mission Statement:

Carpe Diem Beverages Company mission statement is to be a leader in the manufacturing and marketing of healthy, nutritious beverages in the USA.

To satisfy consumers needs while at the same time enhancing the individual and society well being through the use of socially and environmentally friendly production and marketing techniques. To create and sustain mutually beneficial relationship between the company and its partners who include employees, distributors, suppliers, customers, shareowners and the community in which the company operates.

Vision:

Its vision is to achieve its mission; Carpe Diem Co. has developed a healthy, low caffeine, and low sugar, fruit based energy drink which it intends to manufacture and distribute using highly advanced, socially and environmentally friendly techniques. The company will invest in continuous innovation to improve both the product and processes.

Values:

The company values are similar to the values of the brand values; they include uniqueness, honesty, integrity, leadership, partnership, respect, productivity, sustainability and growth. These values are synonymous to the values of the people of Utah.

Situation Analysis

Energy drinks are beverages that directly boost people’s energy; they increase energy due to the high content of sugar, caffeine, taurine, herbal extracts and vitamins. Energy drinks are classified as functional beverages because they are consumed by convalescents, athletes and the youth to replenish energy, rehydrate the body, enhance physical endurance, reduce mental fatigue, increase reaction time and improve moods (Heckman et al).

Despite the increasing popularity of energy drinks, health concerns have been raised that concerns them. Due to the high level of sugar, caffeine and taurine contained in energy drinks, they are suspected of causing negative health effects if consumed in excess (Heckman et al).

Carpe Diem energy drink is a superior, healthy product because it uses real fruit as its base products rather than carbonated sugars. It also uses artificial sweeteners which have low calorific contents. The brand also utilizes natural energizers such as green tea extract, ginseng and guarana which in addition to being healthy are also antioxidants (Heckman et al). Thus, Carpe Diem delivers similar levels of stimulation while it contains less unhealthy content.

Industry Overview

Energy drinks first appeared in Asia in the 1960’s (Heckman et al). At the time their ingredients contained vitamins, taurine and ginseng and were used for many years to provide sustained energy, reduce mental and physical (Heckman et al).

From there they were introduced to Europe and later in 1997, brought into the US market; since their introduction into the US market, the segment has grown rapidly and is now a multibillion industry. Between 2004 and 2009 for instance, the industry grew by a staggering 240% in the US alone (Mintel).

In 2008, revenues from the sales of energy drinks in the US reached $4.8 billion and were projected to reach $10 billion and $12.8 billion in 2010 and 2013 respectively (Heckman et al). According to industry analysts Mintel, new energy drinks product launches, in this segment grew by 110% in 2008 (Mintel).

There are over 200 brands of energy drinks in the USA, which include brands from all the major companies such as Coca-cola, Dr Pepper and Pepsi. Most of the market share is held by a few brands led by Red Bull which holds about 42% of the whole market (Bevnet.com). Despite investing heavily in product development and marketing, major companies such as Coca cola and Pepsi have only achieved marginal success in this segment. The table below provides a breakdown of market share of various energy brands that are currently at the market.

Table 1: US Energy Drink Market Share (Source: Heckman et al)

BrandCompanyMarket share (%)
Red BullRed Bull Inc.42.0%
RockstarRockstar Inc.11.0%
MonsterMonster Beverage Co.14.0%
Full ThrottleCoca-Cola Co.6.9%
AmpPepsiCo3.6%
OthersOthers22.5%
Total100.0%

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