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Consumer Marketing Plan.

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CONSUMER MARKETING PLAN AK/ADMS 4220 Consumer Behaviour Professor D. Strong Due Date: March 25, 2002 Avi Regmi 204953329 Burke Rutherford 202678167 Doaa El-Emam 205736418 Erik Strong 202914265 Lisa Scholze 204157483 Neil Ruskay 203022084 TABLE OF CONTENTS TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 1 SITUATIONAL ANALYSIS 3 Consumers 3 Market Place 3 DEMAND 4 COMPETITION 6 Product 6 Price 7 Distribution 7 Promotion 7 ENVIRONMENTAL CLIMATE 9 Social and Cultural 9 Economic 9 Technological 11 Political and Legal 11 PART TWO: RECOMMENDATIONS 12 Mission Statement 12 The Rational Behind our Mission Statement 12 MARKET RESEARCH - CUSTOMER 13 PRODUCT 15 PRICE 16 DISTRIBUTION 17 Channel Description Model 17 Overview of Distribution 17 Distribution Channel 1 18 Distribution Channel 2 18 Distribution Channel 3 19 BIBLIOGRAPHY 20 CITATIONS 21 EXECUTIVE SUMMARY This marketing plan seeks to create and market a product to consumers. In order to be successful we've focused on understanding our consumer so that our product can be positioned in such a way that it creates strong appeal in our target market. The product we've developed is a water based drink that is fortified with vitamins and minerals. It is a clear drink with no taste and has the consistency of water. It has been position as a refreshing water replacement with health advantages. It is not been positioned to compete with Coke or Pepsi in the soft drink market. First, this marketing plan will look at the current market situation, including: potential consumers and the marketplace. Next, current levels of demand will be discussed. Obviously, if there isn't sufficient demand for our product, then the entire project should be cancelled. Next, we will analyze our competition, looking for size, strategy, market share and many other important factors. This will allow us to properly place our product to maximize market penetration, while minimizing competitor retaliatory moves. Competition will be broken down into four categories, product, price, distribution and promotion. ...read more.


As well, the target market would display health conscious attitudes and behaviours. Socially, health awareness has rapidly increased over the last ten years. Increasingly, consumers monitor their nutritional requirements and actually intake; they actually 'care' what they put into their bodies. They seek products that add benefits to their personal health. In addition, these consumers live a fast-paced lifestyle (always on the go), busy with jobs, social events, and families. They will pay to save time. Furthermore, they will not have to worry about buying water and vitamins separately. As well, the water bottles can be taken on the run and drank at the consumer's convenience. As well, the 'fortified water' may fulfill the consumer's need for image and prestige by the fact that they are 'drinking' the latest health drink. It is apparent that there are many attributes that our product encompasses that consumers falling into certainly social and cultural segments would want. Mainly our segmentation involves income. Families with higher than average discretionary income are looking for products with health benefits for all family members, as well as products that maximize time with family and convenience. Economic We are looking at selling our "Fortified Water" products at approximately two times the price of the cost of regular spring water. Thus, the disposable income of our target market is a key factor in our success. Our target market is people in the medium to high-income level, who have high discretionary income. Discretionary income is "the disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter."4 An important economic factor that influences a consumer's purchase decision is their willingness to spend. Willingness to spend is "an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy, and numerous psychological and social forces."5 As well, purchasing "Fortified Water" saves the consumer the cost of purchasing and storing vitamins. ...read more.


Because the order size from these customers is much smaller, and the number of stores is much larger, H3O is forced to sell our water to a wholesaler of our choice, who then sells our product to these resellers. This is much more economical for H3O than trying to distribute our product directly to all of these resellers, and still allows H3O to maintain some control over the distribution channel. With this distribution method the most important part of the channel is wholesaler/reseller relations, and because H3O chooses the wholesaler, we have the option of replacing that wholesaler if these relations come into conflict. This method proves to be the most economically and logistically feasible when dealing with these medium to small volume resellers. Distribution Channel 3 The third and final distribution channel that H3O uses, as shown in Figure 1, is a direct delivery method, whereby H3O, through one of our Distribution Centers, delivers our water product directly to large resellers such as the major grocery store chains, like Loblaws. The advantage to this is that H3O has total control over the distribution channel, and therefore can establish relations with the resellers, monitor delivery of our products from beginning to end, and monitor and control costs of delivery. This is the preferred method of distribution, and H3O uses this wherever it is available to us, and feasible to use. To accomplish this H3O has 2 main distribution centers in Canada. The first is our primary distribution center, and is located in Toronto, Ontario. This distribution center services all of the locations in Central and Eastern Canada where our product is sold. Our second distribution center is located in Alberta, and services all of the locations in Western Canada where our product is sold. By having two separate distribution centers we can reduce delivery times, delivery costs, and establish closer relations with our resellers by having a distribution center within closer proximity to them. ...read more.

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