New Product Launch Marketing Plan, Part II
Complete a market segmentation for your buyers. Only provide data of the part that I have highlighted and bolded. No more than 250 words. This assignment is a continuation from the previous paper that I have attached.
· Introduction and Conclusion -
· Detail the target market profiles, key buying behaviors, and decision motivators for your consumer and organizational target markets -
· How you will manage each stage of the PLC and include tactical plans for the Four Ps at each stage -
· Provide the product mix for your team's new offering (energy drink) including features and benefits, branding, any other products in its line -
· Provide product differentiating characteristics from competitive or substitute products, packaging and labeling, and warranties and guarantees -
· Create a new positioning statement for your product, and provide justification for your new positioning strategy -
Running head: NEW PRODUCT LAUNCH MARKETING PLAN, PART I
1
New Product Launch Marketing Plan, Part I
Mufuliat Adeseun, Sontisha Allison, Shelia Collins, Johanna Curtis-Dancy, Latrina Saunders, and Emma Yearby
MKT/571
Heather Hanchak-Moss
February 24, 2014
New Product Launch Marketing Plan, Part I
The business industry today is very demanding as well as competitive. Successful companies use different marketing strategies and techniques to operate the business and launch new products. Domestic and International marketing is a technique companies use to introduce their products or services to consumers around the world. PepsiCo is a company based in the U.S. with a worldwide reach. When developing a new product for consumers it is vital for the company to create a marketing plan using the appropriate market segments that identifies with consumers needs and wants.
Market needs for local and international markets
PepsiCo has low competition in its local market and the customers are in need of products that are sensitive to sugar levels and the energy drink will make the company succeed in this type of market. In addition to the market needs, products that are flexible and during various seasons, PepsiCo should be able to change the product offered and the getup of the bottle (Tsafarakis et al, 2011, p. 1254). The changes should be made according to special offers or during special sports occasions.
PepsiCo has to consider the differences present in various international markets and in markets having high temperatures, the market demands coolers to handle the heat experiences during summer. For the product launch to be success in the international market, PepsiCo will need to complete a thorough market research before introducing the product. Physical environment such as climate and weather variations and cultural and religious beliefs must also be put into consideration.
Market growth for local and international markets
The grow plan for PepsiCo’s energy drink begins with determination of its market a.
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
New Product Launch Marketing Plan, Part IIComplete a market segm.docx
1. New Product Launch Marketing Plan, Part II
Complete a market segmentation for your buyers. Only provide
data of the part that I have highlighted and bolded. No more
than 250 words. This assignment is a continuation from the
previous paper that I have attached.
· Introduction and Conclusion -
· Detail the target market profiles, key buying behaviors, and
decision motivators for your consumer and organizational target
markets -
· How you will manage each stage of the PLC and include
tactical plans for the Four Ps at each stage -
· Provide the product mix for your team's new offering (energy
drink) including features and benefits, branding, any other
products in its line -
· Provide product differentiating characteristics from
competitive or substitute products, packaging and labeling, and
warranties and guarantees -
· Create a new positioning statement for your product, and
provide justification for your new positioning strategy -
Running head: NEW PRODUCT LAUNCH MARKETING
PLAN, PART I
1
New Product Launch Marketing Plan, Part I
Mufuliat Adeseun, Sontisha Allison, Shelia Collins, Johanna
Curtis-Dancy, Latrina Saunders, and Emma Yearby
MKT/571
Heather Hanchak-Moss
February 24, 2014
New Product Launch Marketing Plan, Part I
The business industry today is very demanding as well as
competitive. Successful companies use different marketing
2. strategies and techniques to operate the business and launch
new products. Domestic and International marketing is a
technique companies use to introduce their products or services
to consumers around the world. PepsiCo is a company based in
the U.S. with a worldwide reach. When developing a new
product for consumers it is vital for the company to create a
marketing plan using the appropriate market segments that
identifies with consumers needs and wants.
Market needs for local and international markets
PepsiCo has low competition in its local market and the
customers are in need of products that are sensitive to sugar
levels and the energy drink will make the company succeed in
this type of market. In addition to the market needs, products
that are flexible and during various seasons, PepsiCo should be
able to change the product offered and the getup of the bottle
(Tsafarakis et al, 2011, p. 1254). The changes should be made
according to special offers or during special sports occasions.
PepsiCo has to consider the differences present in various
international markets and in markets having high temperatures,
the market demands coolers to handle the heat experiences
during summer. For the product launch to be success in the
international market, PepsiCo will need to complete a thorough
market research before introducing the product. Physical
environment such as climate and weather variations and cultural
and religious beliefs must also be put into consideration.
Market growth for local and international markets
The grow plan for PepsiCo’s energy drink begins with
determination of its market area, this involves knowing the size
of the local market and the key factors determining the ability
of people buying the energy drink is the availability of other
competitors. The next step involves creation of a profile for the
energy drink for the ideal customers who are young individuals,
people participating in various sports activities, and people with
3. weight problems (Liu, 2012, p. 628).
For the PepsiCo market to grow internationally, the plan must
identify countries that are potential business markets, these
countries provide an opportunity for PepsiCo to grow globally.
An in-depth screening will point out countries that make it as
viable markets for PepsiCo’s energy drink; this screening will
have all vital information including micro and macro-economic
factors (Cui et al, 2011, p 532).
SWOT Analysis
The following SWOT analysis will help PepsiCo discover what
it does well, could improve on, whether they are making the
most of the opportunities around them, and whether there are
any changes in the market that may require changes in the
business (Nickels, McHugh & McHugh, 2010).
Strengths
PepsiCo currently operates in more than 200 countries which
provide a diverse income sources. The company has a diverse
product portfolio that includes foods, snacks, and beverages
with annual revenue of over $66 billion which gives PepsiCo an
advantage over its competition that have limited product line
(“The Power” 2011).
Weaknesses
With the diverse portfolio of PepsiCo, branding is not obvious
and not easily recognized which is hurting the image of the
company. Also, PepsiCo is highly influenced by the business
strategies of Wal-Mart because approximately 18% of PepsiCo’s
North American net revenue is from sales to Wal-Mart (“The
Power,” 2011).
Opportunities
4. PepsiCo is expanding its operation in emerging foreign markets
like China and Russia. With the company’s purchase of Wimm-
Bill-Dann, PepsiCo is expected to increase annual revenue by
$5 billion (“Pepsi Absorbs,” 2011). The partnership with Theo
Muller, a dairy company will also increase revenue within the
next four years (Steinberg, 2012).
Threats
The seven years steady decline in carbonated drink sales will
have a negative impact on PepsiCo’s total revenue (Tomlinson,
2012). Also, domestic and International laws could have an
impact on how PepsiCo manufactures, distributes, and markets
its products (“The Power,” 2011).
Competition
PepsiCo faces a strong competition from The Coca-Cola
Company, its primary competitor in the beverage category.
These two companies have had a long history of rivalry since
the 1800s with Coca-Cola has a leader for most of the period
(Theodore, 2012).
Product Offering and Product Definition
To support the growing needs of our valuable customers
worldwide, Pepsi Co have decided to progress in our product
diversification. We are proud to announce our new product
“EDEN ENERGY”. The product is suitably prepared in
compliance with best standards for consumer health and energy.
It is enriched with all the essential organic ingredients of
energy products and is 100 % natural. The product is launched
worldwide in most of our currently operating markets in a
consumer suitable packing of 0.5, 1 and 1.5 Liters to be sold at
grocery stores and vending machines. Eden Energy is also
available in large bottles of 17 liters for use in household and
office dispensers and would be deliverable to consumers and
5. grocery stores.
Product Identification
PepsiCo’s new energy drink will have less sugar and more
vitamins that are essential for increased energy and weight loss.
PepsiCo is trying to offer a product that will create a positive
effect or at least help consumers get a jump start to a better
lifestyle both nationally and internationally.
Justification of Product
It is known that Vitamin B is essential to energy production and
synthesis in the human body. "Vitamin B1, or thiamine, breaks
down carbohydrates and proteins into energy." (Livestrong.com,
2013). For a consumer that does not get the proper nutrients,
this energy drink will help to create more energy and motivation
for more physical activity.
10-Question Survey
1. What is your daily consumption of energy drink?
(A) 3-4 Glasses
(C) 8-9 Glasses
(B) 5-7 Glasses
(D) More than 9 Glasses
2. How do you distribute your daily liquid intake? (Gisngeo,
2009).
%
Water
6. Energy Drinks
Beer/Wine/Spirits
Juice/Milk/Tea/Soda
3. How do you satisfy your energy intake?
(A) Over the Counter Supplements
(C) Vitamins
(B) Energy Drink
(D) Undecided/ No Answer
4. How would you describe the energy drink provided in your
workplace, school, and household?
(A) Healthy
(B) Not Healthy
(C) Injurious to health
(D) You never noticed
5. Do you regularly consume energy drink?
(A) Yes
(B) No
6. Of which size do you buy most of your energy drink (In
Liters)?
(A) 0.5
(C) 1.5
7. (B) 1
(D) Others
7. What do you look for in when purchasing one brand of
energy drink over another?
Yes
No
Undecided/No Answer
Price
Taste
Brand
Bottle's Capacity
Bottle's Shape
8. Where do you purchase most of your energy drinks?
(A) Vending Machines
(C) Others
(B) Grocery Stores
8. (D) Do not buy any
9. How much do you normally pay for energy drinks?
(A) $1.00-$5.00 (C) More
than $10.00
(B) $5.01-$10.00 (D) No
answer
10. Do you drink flavored energy drinks?
(A) Yes
(B) No
Conclusion
The benefits of the new energy drink have been demonstrated to
meet the needs of athletes and consumers wishing to lose
weight. This drink will help improve quality of life by
providing consumers with more energy. The market and
research team has determined that the pros will outweigh the
cons. The SWOT analysis identified PepsiCo’s current
strengths and weaknesses and also provided the marketing team
a clear view of obstacles and opportunities that may be
presented by competitors such as Coca-Cola that has been
PepsiCo’s long time competitor. PepsiCo has the capability of
successfully launching an energy drink based on consumer
needs and behaviors.
References
Cui, A. S., Zhao, M., & Ravichandran, T. (2011). Market
uncertainty and dynamic new product launch strategies: A
system dynamics model. IEEE Transactions on Engineering
Management, 58(3), 530-550.
Gisngeo, . (2009). Water Survey. Retrieved from
http://www.gisngeo.com/water/en.php
9. Liu, T., & Schiraldi, P. (2012). New product launch: Herd
seeking or herd preventing? Economic Theory, 51(3), 627-648.
Livestrong.com. 2013. Vitamins for Energy & Weight Loss |
LIVESTRONG.COM. Retrieved from
http://www.livestrong.com/article/280571-vitamins-for-energy-
weight-loss/
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2010).
Understanding Business (9th
ed.). New York, NY: McGraw-Hill/Irwin.
Pepsi Absorbs Wimm-Bill-Dann. (2011) Retrieved from
http://rt.com/business/news/pepsi-absorbs-wimm-bill-dann-333/
Steinberg, J. (2012, July 11). PepsiCo Expanding Its American
Portfolio With Dairy Products.
Retrieved from
http://seekingalpha.com/article/714491-pepsico-expanding-its-
american-portfolio-with-dairy-products
The Power of PepsiCo – 2011 Annual Report. (2011) Retrieved
from
http://www.pepsico.com/annual11/downloads/pep_ar11_2011_a
nnual_report.pdf
Theodore, S. (2012, August 13). Diet Coke Enters A New
Decade: The Carbonated Soft Drink
10. Brand Has Come A Long Way. Retrieved from
http://www.mintel.com/blog/diet-coke-enters-new-decade-
carbonated-soft-drink-brand-has-come-long-way
Tomlinson, S. (2012, March 3). Soda Sales Fall Faster As
Americans Turn To Healthier
Options. Retrieved from
http://www.dailymail.co.uk/news/article-2118291/Soda-sales-
fall-faster-Americans-turn-healthier-options.html
Tsafarakis, S., Grigoroudis, E., & Matsatsinis, N. (2011).
Consumer choice behavior and new product development: An
integrated market simulation approach. The Journal of the
Operational Research Society, 62(7), 1253-1267.