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Just drink it

Module Code:

Module Title: Principles of Marketing

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Course Title: BA Hons Degree in Business

Management


Table of Contents

 

  1. Market Analysis

  1. Market Potential

A 600ml bottled Sports drink from the Nike Corporation, called NSport.  It is designed to give athletes and amateurs the energy required to perform in sporting activities.

NSport has a dual marketing appeal, firstly to professional athletes.  The UK has a vast sports industry valued at over a billion GBP per annum.  Additionally there is the amateur/snack market.

The UK soft drinks market as of 2005 was worth 7.8 billion (JustDrinks.com, 2006 [online])

  1. SWOT and PEST Analysis

We have conducted a simple Swot and Pest analysis of our product.  Phillips (1993) describes a Swot analysis as a simple technique that provides a method of organising information in identifying possible strategic direction.

Needham and Dransfield (1995, p.18) in their book ‘marketing: Everybody’s business’ explain that a Pest analysis is a useful way of analysing an organisations external environment by grouping external forces neatly into four areas.

SWOT

Strengths:

  • World Wide Brand and image
  • New product
  • Sports brand
  • Ease of distribution
  • Vast Advertising opportunities with celebrity endorsement
  • High demand for branded sports drinks.

Weaknesses:

  • Reputation of company has a murky past with child labour issues.

Opportunities:

  • To expand market brand.
  • Be a market leader
  • 2008 Olympics: sponsorship opportunities (advertising)

Threats:

  • Competitors
  • Dental issues: high sugar content
  • Obesity: Sports drinks are high carbs so exercise is needed with them

PESTLEE Analysis

Political:

  • If government raises taxes then people have less disposal income to spend on our product.
  • If government release statistics saying that high carb sports drinks create obesity in young children then this will give negative publicity.

Economic:

  • If there is a recession then it leads to falls in incomes, expenditures and sales.
  • If inflation is rising, the Bank of England will raise interest rates to cut consumer spending and thus they have less to spend on luxury sports drinks.

Socio-cultural Factors:

  • Population size, a greater purchasing market.
  • Couch potato vs. the fitness freak.
  • Health conscious nation – people believe that the sports drinks give them the boost needed to get a better and longer workout.
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Technological:

  • Innovation regarding bottle design – differentiate from competitors.
  • Keeping up to date with newest machinery – produce more bottles per hour etc.

Legal:

  • Minimum wage -  Ensure that employees are getting paid the right amount per hour.
  • Future legislation – ensure employees are made aware of any new laws.

Environmental:

  • Use Recyclable Bottles.

Ethical:

  • Lack of jobs due to rise of machines – machines do the jobs quicker and of better quality than man.
  • Pushing out smaller companies.

  1. Competitors

There are three major competitors ...

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