MARKETING PLANA group presentation for Marketing Module

Marketing a new productThe energy booster tablet

Presentation layout• Introduction• Competitive review• Features of our product and its three levels• Market description, segment & target• SWOT analysis• Market positioning• Core competencies & Objectives• Marketing mix• Marketing by numbers

Introducing new product

Product Name

Health & Energy (H&E) Tablet

Convenience product:

Our product fits into the definition of convenience products which the customers usually buy frequently, immediately and with a minimum of comparison and buying effort.

Competitor’s Product & Pricing reviewCompetitor Features Price Picture

Magnum 357 Energy Tablets

Magnum 357 Caffeine Tablet - 200mg Caffeine - 250 Count

These high powered caffeine tablets have 200mg of pure caffeine per tablet. They're sure to shoot your energy up.

$19.99

Pic Me Up Pic Me Up Caffeine Capsules - 200 mg - 100 Count

These are strong caffeine capsules that promote wakefulness and fight fatigue. A real pick me up!

$12.89

Red Chinese Super Caps

Red Chinese Super Caps - Herbal Energy Supplement - 60 Count

This ancient herbal energy supplement produces a potent and enduring energy boost without the sugar, bloating and nasty crashes.

$39.99

Features of our product

1. Tablet form which can easily dissolve in water2. Different flavours and tastes3. Portable and convenient4. Easy to open and close5. Attractive colour/ appearance of tablets6. Has medicinal value7. Instant boost of energy

Three levels of our product

I. Core customer value

The customers are not buying mere energy tablet. They buy hope to stimulate their physical and mental strength.

Three levels of our product….cont’d

II. Actual Products

Brand Name : H & E tabletQuality Level: convenience, reliability, consistency, in giving instant boost of energyDesign and packaging:

Three levels of our product….cont’d

III. Augmented Product

• Instructions • Hotline numbers for enquiry• Web page for suggestions and feed backs

Market description

People who are susceptible to the fatigue of the super-charged, over-worked lifestyle

young people who are especially vulnerable to persistent exhaustion and insufficient energy more specifically male teenagers and people in their 20s, are also most likely to believe in the veracity of the energy drinks’ claims

specialized groups, such as gamers, extreme sports enthusiasts, and the hip-hop crowd

Market segmentation

Geographic Region – EU

Demographic Age - 15 and above

Psychographic Life style - People who are keen on keeping physically fit

through engaging themselves in physical work, sports and exercises

Behavioral - Regular

Target market

Undifferentiated target Market

Product with only one offer

SWOT Analysis

• Strength – Health with energy, convenience of carrying, easy to use & Pricing

• Weakness – New to the market, consumers not aware of the brand

• Opportunities – People are health conscience, so it provides opportunity to expand, people are too dependent on external energy booster

• Threat – many established brands in the market, Existing Company copying the similar mix

Market Positioning

• It is differentiated from other energy boost tablets because it is not just energy tablet but contains health benefiting ingredients

• More for less – one small tablet is equal to one bottle of Red Bull, means it will come at cheaper price with added health feature in it.

Core competencies in marketing

Our core competencies include:

• Identifying the product characteristics and attributes to provide the desired client benefit.• Determining the price for the products offered including

discounts, how payment will be accepted.• Determining how and where the products will be offered and

by whom.• Promoting the products, communicating with the

prospective clients, and selling.

Objectives

First year – target sales volume of 1 million units2nd Year – To Achieve Break-Even by achieving

the sales volume of 1.5 million units3rd year – minimum of 1.5% profit on sales

Place – Channels of distribution

• Pharmacies – because to create greater efficiency in making goods available to target market (especially health conscience people), better information system both ways & create brand image

• Fitness shops – • Through internet –• Supermarkets and retailers –

Place – Channels of distribution…cont’d

Pricing Strategy

• Resort to market penetration pricing to enter into the market – because the product is price sensitive, it is on this assumption that lower price result in more market share

• The production and distribution cost shall fall with increase sales volume

• Low price must help to keep out the competition

Promotion

• Percentage of projected sales method• Advertisements in print media, broadcast

media, billboards, fliers, sponsor big extreme sport events and competitions, exhibitions, use medical professionals to advertise the product

People• Unique people in the organization – good

aptitude, appropriate interpersonal skills, adequate knowledge of the product, training and development

• Educating people, i.e. especially consumers, regarding the benefits of having good health and sufficient energy, this is where our product steps in.

Facts and figures

• Plant capacity of 4 million units in a year• Fixed cost USD 1000,000 per year• Aggressive promotions creating increased

annual demand• Per unit variable cost – USD 14.33• Price per unit – USD 15.00

Marketing Figures

Sales volume = 1000,000Total costs = 15,330,000Loss = 330,000

First Year

FC = 1000,000VC per unit = 14.33Selling Price = 15Break Even Volume = FC/(P-VC per unit) = 1000,000/(15-14.33)

= 1500,000 units

Second Year

Target Profit of USD 500,000Unit volume @ USD 500,000 profit target = (Fixed cost + Target Profit)/(Price –VC per unit)= (1000,000+500,000)/ (15-14.33)= 2,238,805 units

Third Year

Year 1 Year 2 Year 3

Expense Amount 6,830,000 13,995,000 15,291,000

% of net sales 45% 62% 45%

Marketing expenses

Budgeted Profit & Loss Statement for five years

Particular Percentage

Year 1 Year 2 Year 3

Unit Amount Unit Amount Unit Amount

Net sales 1,000,000.00 15,000,000.00 1,500,000.00 22,500,000.00 2,238,805.00 33,582,075.00

Cost of goods sold 50% of sales 7,500,000.00 7,500,000.00 16,791,037.50

Sales and promotion expenses 6,830,000.00 13,995,000.00 15,291,038.00

Total Variable cost 14,330,000.00 21,495,000.00 32,082,075.00

Fixed Cost 1,000,000.00 1,000,000.00 1,000,000.00

Profit

(330,000.00)

5,000.00 500,000.00

Profit % -2.2 0.022 1.49