The Three Year Marketing for Mountain Spring Water, Inc - Business Plan Example

The Three Year Marketing Plan Executive Summary In this era, business firms in most industries face cut-throat competition in the market. So, withoutthe help of efficient marketing strategies, a firm cannot lead the existing market competition. This paper deals with the three year marketing plan of the company, Mountain Spring Water, Inc. The context of the paper analyzes the internal business situation and core competencies of the company. The researcher has provided new marketing mix (product, price, place and promotion) strategies that can be adopted by the firm in the next three years. Finally, the paper enumerates the financial and non-financial goals as well as the projected sales for the next three years. It is expected that with these strategies, the company would be able to expand the scale and scope of its business operations in future. All such initiatives would help the organization achieve a wider base of customers and a higher brand value in the market. Contents Contents 3 SWOT Analysis 4 Target Market 6 Brand Identity and Promotional Strategy 6 Distribution Strategy 8 Pricing Strategy 8 Financial Goals 9 Non-Financial Goals 10 Core Competencies 10 Product Strategy 11 Additional Competitive Factors in the Industry 12 Projected Sales 12 Time Line 12 Works Cited 14 Name of the Student Name of the Professor Course Number Date The Three Year Marketing Plan SWOT Analysis Opportunities In order to distribute and market its products to a wide base of customers, a company must use modern technologies. Social media sites are, at present, used for both commercial and non-commercial purposes. If the company decides to market and distribute its products in several markets through the use of social media, then they can easily gain access to a wide range of customers. The company should frame different marketing strategies on the basis of niche techniques. This means it should concentrate on framing efficient strategies for the most potential group of buyers. The company should expand its business in the booming markets of the world. Yet, while marketing its products in these new economies, the company must use niche marketing strategies, instead of merely adhering to mass marketing traditions. The company of Blue Mountain Spring Water has experienced double digit rising sales, even in the period of recession. In situations, where the total industry had experienced a fall in sales by 3%, the company has experienced a growth of 8%. It can use its accumulated reserves for the purpose of further research and development. This would help its customers experience better quality products. If the company can augment its quality and product demand in existing markets, then it can experience the benefits of scale economies in production. The company can improve its bottled water packaging and increase the amount of mineral context in it. Such an improvement in the quality of the product would surely help to enhance the demand for the product of the company from its existing potential customers. Through free sampling and advertisements the company enhance its brand awareness to new customers and increase its products sells. Special loyalty offers can help the company experience a wider base of customers. Such loyalty offers can be provided in the form of gifts to the customers, given during occasions like Christmas. Brand extension programme is always a business expansion opportunity for any company. Apart from selling bottled water, the company can also sell energy health drinks and juices to its customers. The company has not distributed such products in the market before (Messmer 110). Threats The bottled water industry, in which the company operates, is highly competitive in nature. Thus, in future, if any of the competitors introduce new disposable and environmentally-friendly products, then the market demand share and sales of the company would significantly fall. The current recession, prevailing in most of the nations across the world, is expected to persist in the long run. Bottled water sold by the company is much expensive, compared to normal tap water. The rising inflations in product prices are lowering the real purchasing power of individuals. So, the company can soon face loss of demand in business due to lack of affordability of customers (Benhabib, “The Tradeoff Between Inequality and Growth”). The tastes and preferences of modern consumers are significantly changing. The company may lose its brand worth and revenue in the near future due to negative changes in tastes and preferences pattern of the buyers. For instance, they might demand for water that is flavoured and contains special minerals and vitamins in it. The company must also improve its bottling capacities. If the company decides to increase its product distribution and sales across various markets, then it must try to increase its bottling capacities, otherwise this can generate product packaging problems in future. Target Market The organization follows the technique of niche marketing method, which necessitates it to focus on its target groups. This can be executed on the basis of theories of market segmentation. The company can introduce the demographic means of market segmenting strategies. It can segment its most potential customers on the basis of their demographic attributes. Income, age and literacy can be three of these attributes. However, it is noted that in the recent years, the product is experiencing higher demand from customers of 65 years old and above. At the same time, the parents, with children below 18 years, have augmented their demand for the company’s bottled water. Thus, the company must have two new target groups; these are the elderly individuals of 65 years and above as well as the parents with children below 18 years. Nonetheless, it should be considered that within these two age groups, the company must only target the literate as well as middle or high income customers. As the value of spring, purified water will be perceived by educated individuals; only the middle and rich customers would be able to create a demand for expensive bottled water, even at the time of recession. Brand Identity and Promotional Strategy The company can significantly increase its sales in the exiting as well as new markets with the help of effective promotional strategies. The slogan, “Blue Mountain is Nature’s Fountain!”, introduced by the company to market its product, has received a substantial response from a wide base of customers. The popularity of the slogan has increased the brand value and sales of the company. The company can conduct special campaigns, where it can further promote this slogan and make customers aware of the unreliability of commonplace drinking water. In such campaigns, the company can focus on the trust of customers on its brand. It should, thus, position its brand in such campaigns. It should advocate that the bottled water is healthy, pure and resalable, as far as the quality is concerned (Sabharwal and Wali 109). The programs for advertisement of the company should be very strategic. It can be analyzed that, in the current era, the tastes and preferences of young customers highly influence the demand pattern created by individuals of all other age groups in the society. So, the opinion leaders in commercials of the company’s product must be young individuals. However, the company’s advertisements should always focus on the purity and healthiness of its product. The company can introduce free sampling in front of several schools and universities. This would augment the brand awareness of students regarding the company. The company can advertise its product through several mobile vans. Such vans would travel across the busy locations of the potential and new markets of the company and hence, augment the brand awareness of customers. The company can sponsor special sports and charity events and also, fund several environment conservation events like, planting of trees or cleaning of roads. Such activities, executed under the brand of the company, would make customers conscious about the social responsibility of the company and hence would improve its reputation (Spangler 188). Soccer and Rugby are the most popular games played both at local and national level in Western nations. Large numbers of individuals participate as spectators or players in such events. If the company sponsors some of such sports matches it can significantly enhance its brand value in the market. It should promote its brand as well as product through all the means of communication like television, newspapers, internet media and radio (Kushal and Ahuja 124). Successful visual merchandizing across different markets can also help to increase the sales and popularity of the company in the same. Distribution Strategy The special distribution strategies of the company must aid a rise in sales in the industry. The company should try to increase its business in the budding economies of the world like, Russia, China and Brazil. However, while operating its business in new economies, the company should also build warehouses in these locations (OECD 134). The company should improve and widen the scope of its final product distribution channel. It should appoint several distributing agents and franchisees in both its new and existing markets (Messmer 155). In order to efficiently run its business in some of the new as well as competitive markets, the company can merge its business branch with an existing soft drink producing company in that market. Nonetheless, it should be noted that the company can only circulate its product in an adequate manner, if it can render the outbound logistics department in all business branches efficient. This will ensure that products of the company reach all the selling locations on time. In order to successfully launch and sale the products of the company in the new marketplaces, the company needs to introduce strategic market entry options in business. It can appoint efficient distributers from well known Export Management Companies in these nations. Since the company would trade its product on a competitive basis in the new markets, Piggyback operations would not be a successful method of sales (Messmer 62). Pricing Strategy It has been already mentioned that prices of the bottled drinking water of the company is extremely reasonable and hence, affordable. Some of the potential competitors of the company are companies like Evian Natural Spring Water and Fiji Artesian Water. Blue Mountain Spring Water simply set up competitive prices for their products. A pack of six half litre bottles (each) Evian Natural Spring Water costs $ 12.49. However, a single bottle of Fiji Artesian Water costs $ 31.99. The price of a pack of six half litre bottles of Blue Mountain Spring Water is $ 13.45 (“Amazon”). Hence the company charges moderate prices for its products and its products are not over priced as Fiji Artesian Water Bottles. However, certain special pricing strategies can help the organization increase its profit and sales in the market. The company can declare that price of its product is set on the basis of cost plus pricing method. While launching its product in new markets, the company can adopt the policy of penetrating pricing. Under this policy, the organization can sell its products at a relatively lower price in new markets as compared to its competitors. Even so, after achieving a relatively wider base of customers, the company can increase the price of its product. It can offer special pricing discounts to customers on an occasion of bulk purchase (William Shepherd and Joanna Shepherd 222). Financial Goals The company must increase its financial base in business, so that it can produce and sell its product to a large number of customers. It should also expand its products distribution and introduce two new product lines in the market. It should attempt to enhance its annual revenue by at least 3 % in future. In order to make customers aware of its inclination towards social responsibilities, the company must donate a sum of £ 35000 in social programs. In the next five years, the company can aim to increase its revenue by 5%. It can also aim to reduce its cost in defective production by at least 1%, in the next three years. Non-Financial Goals As stated in the above context, the company can intend to introduce two new product lines in future. The company can expand its business in new markets like, that in China, India, Brazil and Russia. These are the booming world economies, where the per person disposable spending of individuals are significantly improving. The company can introduce new forms of tetra-packaging system for its products, instead of using plastic. This can facilitate reduction of the level of carbon footprints in its product packages. It can aim to augment the overall skill and effectiveness of employees in its organization (Wuttke 194). Core Competencies The company uses the special microfiltration technology to extract water from spring; this technology is not available to its competitors. The company uses ultraviolet light for processing its bottles; this helps to keep the bottled water clean, enriched with mineral and contain no artificial taste or residue. The ergonomically shaped bottle of the company uses 30% less plastic than any natural plastic bottle. In future, it can introduce further new technologies in order to lower production defects and improve its water extraction quality. Product Strategy The company can introduce a new 1.5 litre bottle in the market, which can be sold both in bulk pack and individually. It is likely that such a product size would appeal more to the travellers. Special custom-made bottles may also be introduced by the company, which would help to increase customers’ utilities as well as demand for the product. A special new “easy to hold” bottle shape may also be introduced by the company (“What is FM?”). Additional Competitive Factors in the Industry The business firms, in the industry of bottled water, experience low threat of substitutes for its product. The product satisfies multiple demands of the consumers. For example, the cooks in restaurants may demand for bottled water to prepare food and hard or soft drinks. The overall bargaining powers of the suppliers are low. Increased individual awareness regarding health consciousness is raising the demand for bottled water. Rising degree of normal water pollution in the environment is also increasing the overall demand for bottled water. Projected Sales The projected sales of the company for 2010, 2011 and 2012 are: 2010 $ 4.10 million 2011 $ 4.45 million 2012 $ 5,1 billion Time Line Year 1 Launch of the “Junior” (8 oz. bottle) in retail packs. Launch the existing as well as new products in new emerging markets. Introduce certain special campaigns to popularize the new product. Year 2 Launch the new, “easy to hold” bottle in the markets. Introduce certain marketing strategies for the two new target clients. Invest money in the invention of new water extraction technology. Year 3 Introduce special pricing discounts in business for bulk sales. Increase the product distribution network in the abovementioned forms. Donate desired amount in social programs. Works Cited “Amazon.” Amazon, 2014. Web.20 March. 2014. Benhabib, Jess. “The Tradeoff Between Inequality and Growth.” Department of Economics, New York University, 2003. PDF file. Web. 23 December 2013. Kushal, Sri Jin and Sunitti Ahuja. Business Communication. New Delhi: FK Publications, 2010. Print. Messmer, Max. Motivating Employees For Dummies. New Jersey: John Wiley & Sons, 2011. Print. OECD. OECD Regions at a Glance 2009. Paris: OECD Publishing, 2009. Print. Sabharwal, Navin and Prashant Wali. Cloud Capacity Management. New York City: Apress, 2013. Print. Shepherd, William and Joanna Shepherd. The economics of industrial organization: Fifth edition. Canada: Waveland Press, 2003. Print. Spangler, Rachel. Learning Curve. New York: Bold Strokes Books Inc, 2008. Print. “What is FM?” IFMA. International Facility Management Association. 2013. Web. 6 Sep. 2013. Wuttke, Florian. E-Recruitment vs. Traditional Recruitment: A Descriptive Analysis. Munich: GRIN Verlag, 2009. Print. Read More