V ENERGY DRINK
MARKETING PLAN FOR V ENERGY DRINK
Company: Frucor Beverage Limited
Product: V energy drink
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This marketing plan is designed to implement new marketing strategies to cater for the future expansion into an existing market for company frucor beverage limited and their product V. This market consists primarily of the super geek tribe and through further diversifying the product V will they be able to achieve a level of market share to achieve a monopoly status.
Current Marketing Situation
Review of Competition
Review of Distribution
Needs – A drink
Demographics – High middle-income earners
Wants – Most super geek associate their high interest with technology with games. Often when games are just purchased or played with other people they really like, comes a scenario where they want to extend their play time. This comes in the form of energy, and this drink can cater for this want.
In 2011 V has a 42% market share of energy drinks in Australia. Their products are V energy green, black, blue, double hit, graphite, isokinetic, iced coffee and pocket rocket.
Review of Competition
1. Mother, owned by Coca Cola company targets gamers.
2. Monster, owned by the Monster Beverage Company targets extreme sports such as BMX, Skateboarding and Snow boarding
3. Red Bull, owned by Red Bull GmbH targets extreme sports such as racing, break dancing, jet flying and E gaming.
4. Rock Star, owned by Rockstar Inc, targets extreme sports.
Review of Distribution
– New Zealand
– United Kingdom
– Papaua New Gunea
– South Korea
– South Africa
1. Established position in super geek market.
2. Product has been around for a long time and people knew about it, making strategies more effective.
3. Rival companies such as Red Bull, Rockstar and Monster are not threat as they target different markets such as rock music and extreme sports like racing, break dance and snowboarding.
1. Frucor Limited had limited resources in comparison to main competitor, the Coca Cola Company.
2. Inconsistent internal and external communication
3. Poor market share in countries other than Australia and New Zealand.
1. Further expansion into super geek market.
1. Rival companies such as Red Bull and mother have large market share in global energy drinks.
2. Mother which is a product of the Coca Cola Company has almost an infinite amount of resources they can use for their strategies.
3. Through other rival companies may discontinue their product due to poor profit, mother will always be a threat as Coca Cola will not be hindered by this profit loss.
Objectives and Issues
1. Gain complete market share of the super geek market.
2. Create a very high barrier of entry for competitors to maintain market share.
1. Competitors such as mother, wicked and other energy drinks that do not have a solid position on the market will try to react immediately.
2. Expansion will result in many pricing wars over certain contracts and deals.
– Product attributes
– Product support services
– Managing the Product lifecycle
– Needs to maintain light colors be more visible in the murky environment of the super geek tribe, mainly their bedroom with closed blinds.
– Design must incorporate the promoted game, console or peripheral to position V into the supergeek market for energy drinks.
– Use traditional V label, no need to change as we are trying to increase the awareness of V before differentiating it.
Managing the life Cycle
– During time of introduction, growth and maturity, expand as much as possible. When competitors react, and the business enters a decline, then use new packaging with other brands and merge and feature in popular products to gain more market sales.
– Advertisement should incorporate themselves with games trailers or a scenario including games.
Word of mouth
– Incorporate Facebook, Twitter and YouTube channels with special codes and prizing for sharing to promote word of mouth
– Have prizes associated with super geek market’s wants of games. There can be promotions with most anticipated upcoming games. It is vital to pick the right games as its success determines the V energy drink’s success. The business should also sponsor games and professional gaming teams in MMorpg, fps and mobas such as Navi from dota 2 to emphasizes the use of V for gaming.
– The usual retailers as well as the expansion into the gaming retailers such as EB games. New mini refrigerators will also be included in these retailers with the V logo.
Cost Plus Pricing
– Contingency plan
Drink’s minimum price is determined by the costs involved with production, marketing and distribution Lower production costs by recycling and using less materials to produce the cans yet still maintaining quality such as mount franklin’s 35% less plastic. This minimum price acts as a contingency plan for V in case they fail to achieve a high enough barrier for competitors to come into the super geek market.
Value based Pricing
– This is a new product entering a new market, the price must increase or stay the same as there are no competitors in this market and only substitute goods.
Current 2018 Price
Packaging Price in dollars
– Energy drink 500ml can 3.58
– Energy drink 8*250ml cans 14.98
– Energy drink 4*250ml cans 7.98
– Energy drink 4*500ml cans 13.98
– Energy drink 350ml bottle 2.98
– Energy drink 0% sugar 355ml 2.98
– Energy drink 710ml can 4.98