Extracts from this document...

Introduction

=============*****============= PRINCIPLE OF MARKETING - MARKETING PLAN - ======================= Marks: Teacher's comment: TABLE OF CONTENTS Page 1.0 EXECUTIVE SUMMARY 1 2.0 SITUALTION ANALYSIS 3 2.1 Customer analysis 3 2.2 Marketing analysis 4 2.3 Competitor analysis 5 2.4 Target market 7 3.0 SWOT ANALYSIS 9 3.1 Strengths 10 3.2 Weakness 12 3.3 Opportunities 13 3.4 Threats 14 4.0 MARKETING OBJECTIVES 15 5.0 MARKETING STRATEGY 17 5.1 Target marketing 17 5.2 Marketing mix 17 5.2.1 18 5.2.2 Price strategy 21 5.2.3 Distribution strategy 24 5.2.4 Promotion strategy 24 6.0 FINANCIALS 28 7.0 CONTROL 29 7.1 Implementation Milestone 29 7.2 Contingency planning 30 Appendix A 31 Appendix B 32 1.0 EXECUTIVE SUMMARY Giant soft drink Tan Hiep Phat Beverage Group Company ( THP Group Co.) has been facing an increase by 30% in non-gas product consumption demand per year and more than 50% consumers intend to switch to natural products, fewer-sweet products instead of gas products while these ones have been becoming saturated at that time. Consequently, it is working out the Professional Marketing Plan to help the business achieve its objectives more efficiently and effectively, and inevitably regain their iron first reign on the soft drink industry as Number 1 had performed well as before. "Khong Do Green Tea" will be marketed as a unique ready-to-drink product while striving to reinforce the company's status as the leader in innovation and successful product launches. The marketing strategies will enable to reach a market size of an estimated 8,688,300 people (targeted) with a forecasted sales growth prospect of 7.3% over the next 4 years (711,333,530,900VND profits), while satisfying the needs of the still-unserved market for ready-to-drink Khong Do Green Tea. Success will be reflected by a sizeable capture of market shares within this market, while strategically carrying the company up to the top spot as the market leader in the ready-to-drink products segment of soft drinks. The Company will increase its market share through targeted advertising to increase the number customers who want convenience and are looking to have a drink of unique nature which will give them taste, energy and the nutritional benefits of tea. ...read more.

Middle

Brand is attractive to global partners Because of the company's size (including value, brand name and operating revenues) and wide portfolio base, THP Group Company enjoys a strong purchasing power over its suppliers, and also attracts large partnerships with various levels of consumer reach (e.g. movie studio promotions, sponsorship agreements, etc.). Existing brand awareness also provides an international playing field for powerful marketing strategies. Focus on most important customer trend - "Convenience" The Company should focus on this feature of the product to win the market share in this industry while the society is developing quickly and actively as present. 3.4 THREATS Strong competition: Khong Do Green Tea is competing in a competitive market that is characterized by an oligopoly between several (but few in numbers) competitors, especially C2 and Lipton Pure Green. The fight for market shares and sales in crowded markets become a complex and thorny one. Potential health issues: The current trend of consumer and consumers groups' awareness towards goods and services is both beneficial and threatening for companies in the food and beverages industry. Over the last few years, concerns over health issues have risen in the media through an expanded and ever-growing network of "knowledge outputs" (journals, TV channels, internet, forum and so on). The move of the younger generation towards a healthier lifestyle calls for careful planning and decision-making in new product developments. Large companies can also easily become the target of consumers' apprehension. Free trade: In an era of globalization, large international competitors can come out with comparative advantages (the constant fight to remain the first mover and market leader in a long-term spectrum). Issues arise when dealing with price competition and economic growth. Trade organizations are also faced with public pressure which can disrupt operations in one or more areas of the company. Unstable Economy: Like other company, THP Group Co. has been also facing a lot of difficulties in remaining and reinforcing its image as well as saving its life in this stage. ...read more.

Conclusion

- Expenses: monthly and annual. - Repeat business. - Customer satisfaction. 7.1 Implementation Milestones The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget. Milestone Marketing Plan completion Advertising campaign 1 Advertising campaign 2 Development distribution Table: Milestones Milestone Plan Milestone Start date End date Manager Marketing Plan completion 1/1/2009 30/1/2009 Mrs. Tran Uyen Phuong. Advertising campaign 1 1/2/2009 30/6/2009 Mr. Tran Dinh Nhan. Advertising campaign 2 1/7/2009 30/12/2009 Mr. Tran Dinh Nhan. Development distribution 1/1/2009 30/12/2009 Mrs. Nguyen Thi Thao. 7.2 Contingency Planning - Price competition: When the competitors focus on green tea industry, price competition increased because now Khong Do green tea's price is slight higher than other green tea. - Local competition: Now, THP Group Co. is main competitor in soft drink industry. Other company in this industry will try to compete with THP Group Co. to take market share from them. - Difficulties and Risks + Problems generating visibility. + Already established competitor that chooses to compete on quality and flexibility. + Low consume at Northern area. APPENDIX A CALCULATIONS Based on THP Group Co.'s previous financial statements, we will see the average COGS/Revenues for year 2006 and 2007 is 36%. Similarly, Operating Costs / Revenues = 57%. Moreover, since our target market are 220,000,000 cans annually assuming Khong Do Green Tea maintains its market share in soft drink 57%, we predict our sales as 385,000,000 * 57% = 220,000,000 bottles. Expected Revenues: Supermarket Independent Stores Others Total Price (VND) 7,000 8,000 6,500 - Sales (%) 30.8% 10.2% 59% 100% Sales (VND) 76,900,922.21 22,283,789.96 158,641,762.6 328,000 Revenues (VND) 538,306,455,500 178,270,319,700 1,031,171,457,000 1,747,748,232,000 Note: "Independent stores" include convenience stores, independent food stores, and discount stores. "Others" include multiple grocers, vending machines, & direct sales. Expected Costs: COGS: 1,747,748,232,000 VND * 36% = 629,189,363,500 (VND) O/H: 1,747,748,232,000 VND * 57% = 996,216,492,200 (VND) APPENDIX B Source:(ACNielsen) 1 Generation Y: who born after 1980s. 2 5,100 VND *(1-20.7%)*385,000,000 = 1,557,055,500,000 VND ?? ?? ?? ?? Principle Of Marketing Marketing Plan Group 8 - Class: BaBa3 Page 1 ...read more.

This student written piece of work is one of many that can be found in our University Degree Marketing section.