7/29/2013

Lecturer’s name: | Student’s name:
Text Box:

Executive summary:

The marketing plan discussed below is relating a fitness drink which is launched by Juvinatar Beverages. The product is acknowledged as Gogi Boost and is acknowledged as a healthy alternative to the energy and sports drink. The main ingredient is a Gogi berry which is medically identified as a healthy product. The launch of product will be in the April of next year.

Juvinatar Beverages wants to be a market leader in the fitness drink industry through implication of differentiation strategy.

The marketing plan consists of the introduction of the firm and product along with the service element offered to provide differentiated approach. The plan also highlights the SWOT analysis of the firm and the detailed marketing strategy regarding segmentation, targeting and positing. The plan is significantly integrated through all elements of marketing to show a boosted impact of the launch

The plan also highlights the macro environment in which the industry is operating and the impacts it has on the brand and products. The customer and competitor along with industry analysis facilitate in analyzing the whole market and in last the implementation plan is explained to have final implementation of the product and brand.

Company Description

Juvinatar Beverages Ltd. is referred to as a new business venture which is based on partnership of five Canadian managers. A wide variety of fitness drinks and health beverages are being offered by this firm. The ranges of products offered consist of vitamin tea along with fresh juices blended with various natural antioxidants. The mission statement of the firm is presented below:

“Juvinatar Beverages appreciatesthe lifestyles of its customers and develop pioneering beverages, ingenious health elucidations and energetic products to convene all expectations of firstly the health-conscious Canadian of today and tomorrow and other international markets.”

Product Description and Positioning

In the year of 2013 the firm planned to launch the new line of fitness drinks in the last quarter. The energy or fitness drink will be incorporating the health benefits of the healthy and medically beneficial fruit acknowledged as Gogi Berry. This fitness drink would be branded as Goji Boost which will be rolled out in market in October 2013. The marketing campaign run by Juvinatar for the promotion and positioning of this brand is very energetic and will involve the planned statement as “the invigorating drink everyone will be talking about”. The health properties elaborated in campaign would be involving:

  • Improved vision
  • Cleaning of the liver and kidney
  • Smoother blood circulation

The above mentioned techniques would facilitate Gogi boost to make its superior positioning in the health-preoccupied Canadian market as providing a healthy alternative to an ever-popular drink one enjoys and uses to keep up with one’s fast-paced lifestyle. The differentiation positioning strategy is employed to target its market of younger, more health-conscious consumer. The key success factor of Goji Boost is its placement as a premium niche product in the health energy drinks market. This product by disseminating its health effectiveness and medical preferences would enhance its image in the market of energy drinks and will mitigate the hazards of energy drinks already offered by the industry. The positioning map is presented below:

Consumer Profile: Market Segmentation and Targeting

Juvinatar Beverages new fitness drink will be regarded as a successful and competitive product for the reason of its niche market selection. The drink is going to target the youngsters who are studying along with taking exercises in gyms and performing sport activities. The common drinker of Gogi Boost will be:

  • Young student, gym guru or an athlete
  • Who is Living a fast paced life
  • Having Split between late night studies for examinations
  • Going for Night outs
  • Busy in shopping at days and
  • Lacking sleep timings

The targeted market is already established and is using the energy and fitness drinks which will facilitate the firm not to build the grounds for the creation of product awareness. The Gogi Boost of Juvinatar Beverages will be serving the customers as a healthy alternative compared to the packed sugar drinks, and other branded energy drinks having no health benefits for the targeted customers. The targeted demographic of Gogi Boost is age between 15 and 24. After 24 years of age the behavior and psychographic of people start changing and it is bit difficult to target older people towards energy and fitness drinks. Juvinatar will be therefore focusing all its marketing efforts on teen agers and young adults in Canada. Gogi Boost will be launched primarily in universities and college campuses through all the Canadian Market. The primary launch will be boosted by the promotional campaigns run both in campuses and through event launching regarding the energy and fitness themes. The campaigns and promotions will be aggressive to boost the brand and create brand awareness in the market. The same techniques are already implemented regarding other brands and products in the market which proves its effectiveness in the market for instance in the case of Old Spice viral advertising video campaign.

Statistics Canada reported that at the end of 2010, 13.5% of the country’s population was aged between 15 and 24. Additionally, among the same demographic range, 31% of 12- to 17-year-olds and 34% of 18- to 24-year-olds report regular consumption of energy drinks. This represents a rough market of 1.494 million potential consumers for our market across Canada. The Juvinatar Beverages is confident that the stable expansion of energy drinks utilization of juvenile teenagers, as measured by Marin Institute, is an important focus of this marketing campaign. This growth consists of an increase in consumption of energy drinks from 18% in 2001 to a consumption of 31% in 2006 in the 12-17 age group, which will definitely be a factor encouraging this age group as a secondary target market, since direct advertising to children of such a product is restricted in Canada. As for the company’s primary target market segment, it is relevant to note that full and part-time university students in Canada for 2008/2009 consisted of 1,112,370 individuals. This represents a substantial target market if we rule out adult students and suburban university students outside the company’s distribution range.

The charts regarding the market analysis in Canadian Market with respect to energy and fitness drinks are presented below:

Market Profile: SWOT Analysis

The SWOT analysis of Gogi Boost is presented in this section. It involves the categorization of internal as well as external factors and relative strengths, weaknesses, opportunities and threats. Regarding the Juvinatar Beverages the internal factors like innovation, and the strength of already established consumption of energy drinks, well planned and effective marketing strategy, along with finalized prototype of primary launch provide successful and strengthened environment. The opportunities regarding the external environment and factors present relates to the extensive demand of the energy and fitness drinks, youth strength and market demographics, unexploited niche target market regarding fitness drinks in the market of Canada along with lacking regulative measures in energy and fitness beverage industry.

On the other side of picture the negative environment internal and external also pose some pressures on Juvinatar Beverages to be handled for effective marketing campaigns and primary launch. The most challenging external factors include the well established competitors’ environment, sponsorships programs by competitors for young students to participate in events which will reduce the chances of Gogi Boost to make its awareness much speedily in initial launch. In relation to the economies of scale, prices by competition may pose difficultyincounter partingespecially in the first few years following its launch as Goji Boost will need to offer competitive prices in order to attract potential customers. In addition, possible prospectinglegal regulation regarding industry of energy and fitness drinks sales and consumption by the government of Canada might influence Juvinatar Gogi Boost sales. SWOT analysis for the launch of GojiBoost is presented below:

Internal FactorsStrengthsWeaknesses
OfferingSuperior quality product with multiple health benefitsUncommon product that has a bitter taste before mixing
MarketingA structured marketing plan which focuses on brand awareness and promotional activitiesMay be very costly to effectively increase brand awareness
FinanceHealthy financial start as of 2014May encounter losses for the first months of the launch, may be difficult to break even if the product does not sell well
ManufacturingContract signed with berry producers in South AmericaHigh cost of transport to import the berry to Canada
Product DevelopmentFinal prototype of the product was up to the standards and ready to be marketedMay need some fine tuning to adjust to the customer tastes due to the berry’s unusual flavor
External FactorsOpportunitiesThreats
ConsumersYoung Canadians are well used to consumer energy drinks and there is an increased demand for energy drinks fortified with vitaminsThey may not switch to GojiBoost for various reasons such as taste, loyalty to another brand or cost
SocialThe fast paced North American way of life greatly values the benefits of energy drinksMay be issues if the marketing campaign indirectly targets underage teenagers.
CompetitiveGojiBoost is the first to target the niche market of health energy drinks in CanadaThere are a lot of well established competitors’ such as Red bull, Pepsi and Coca-Cola who will not give away their market shares easily
TechnologicalBreakthrough health benefits in this marketMass production and economies of scale of competitors may harm GojiBoost’s initial launch
EconomicCanadian consumers are spending adequately, there will not be an economic barrier to consumptionEnergy drinks may not fit as a product deemed essential by many customers
LegalThe sales of energy drinks are unregulated in CanadaMay be issues with future regulations of energy drinks due to their high level of caffeine and potential threat due to overuse

Foreign Entry Potential: Expansion to Japan

At time when the primary objectives of the initial launch of Gogi Boost will be achieved than the Juvinatar will plan to expand and launch the fitness drinks in international market of high potential like Japan.  A prospecting country that is planned to be reached after Canada is Japan. The country is selected based on the substantial market segment for the Gogi Boost of Juvinatar. The major geographic motivation for selection of Japan is regarding the suppliers of Gogi berry which is imported from China therefore will provide and edge for supplies of raw material for production of Gogi Boost.  The closeness to Juvinatar manufacturing plants would trim down the costs relating transportation, permitting the company to whichever decrease its prices or to obtain a superior profit margin.

In considering demographics; Japan’s economically active population of age 15-24 of 5.6 million individuals represent 8.36% of the total population as of 2010.  These demographic indicators represent a very attractive and wide enough market for the introduction of Goji Boost.According to GMID, “Spending by this group is categorized by lifestyle brands, fashion, high proportional spending on electronic goods, and especially portable varieties of these goods, such as mobiles, laptops and video game machines”. Moreover, energy drinks consumption in Japan was 201 million liters, 5 times more than Canada’s consumption. Furthermore, people in Japan are especially concerned with staying fit and healthy, and have the financial means to pay a premium for products such as Goji Boost that would healthfully energize their bodies, assisting them in reaching those goals. The wide popularity of social media and technology amongst students allows Juvinatar Beverages to take advantage of websites such as Google Japan, Yahoo!, Face book and YouTube for promotion.

Productalong with Service Element:

Juvinatar Beverages Ltdis planning to launch its new product as already discussed as Gogi Boost. Goji Boost is acknowledged as a pioneering energy and fitness drink compared to its kindsas it combines both the health and energizing benefits of a super fruit known as Gogi Berry. Gogi Boost is manufactured in a way to combine the energy boosting elements along with health benefits.  The main ingredient i.e. Goji berries used in the drink have variety of exceptional health benefits comprising of:

  • Rich in polysaccharides which facilitate in building up the immune system,
  • Having amino acids of 18 kinds,
  • Endow with a rich supply of potassium.
  • Rich in Vitamin C,
  • Having much more beta carotene compared to carrots and which facilitate in making defense against heart diseases and also prevent skin damage from sun
  • More iron than steak, these antioxidants facilitate in fighting against cancer

(TLC, 2010)

The ingredient and nutrition elements of Gogi Boost are presented below:

Nutrition
Antioxidants in Goji BerriesBody Functions Supported
Vitamin CHeart health
Beta-caroteneImmunity
CystineImmunity, healthy stomach lining
B2 (riboflavin)Conversion of carbohydrates into fuel
ManganeseHealthy skin, bone, cartilage
ZincWound healing, fertility, vision, immunity
CopperEnergy, hormonal function, healthy skin
SeleniumHealthy liver, thyroid, immunity, cancer protection

Sources: Wolfberry: Nature’s Bounty of Nutrition & Health and http://www.supplementinfo.org.

The packing of Gogi Boost will be in an aluminum cans which would be recyclable to add up the green environment concept. The quantity that is hold up in can is 355 ml. the container will display the name of the brand along with the funny story attached to create differences. The container will also display the nutrition facts and ingredient list as legally demanded. The sample of Gogi Boost label is presented below:

Additionally, Juvinatar Beverages will offer customer service through its helpline, website FAQ, and ‘contact us’ pages. This element will enhance the customer’s loyalty and attract customers to know more about the brand. The service will also provide the health and related exercise advices through health gurus to maintain an active audience and page. This element will facilitate the firm to actively create brand awareness along with the loyalty of its customers. The main point of differentiation lies in this service element along with the combination of its health benefits through Gogi berries and energizing characteristics.  The Juvinatar will be also focusing to create and follow moral and ethical values. In order to give emphasis to eco-consciousness it employs recyclable cans and certified-organic Goji berries provided by fair-trade farmers from China. To build the brand equity of Gogi Boost Juvinatar is planning to sell its quality energy and fitness drink with health benefits to its customers.

As it is clear through the label design and nutrition list the Gogi Boost is trying to create a strong brand image especially among the competitors in the energy drink industry. It will focusing on creation of fresh, simple, fruity and healthy fitness drink for the target market of youngsters between age group 14 to 25. The Gogi Boost as planned by the Juvinatar Beverages will be positioned as a convenience good. The product will be acknowledged as a healthy as well as tasty fitness drink which promises to deliver the energizing characteristics along with stimulating the mind and body. Besides being ethically conscientious and student-friendly, the Goji Boost brand intended to be a proud supporter of active, healthy lifestyles for Canadian youth.

Product Line: Breadth and Depth

Juvinatar Beveragesis following the inventive strategies to launch every possible healthy fitness drink in the industry in primary market as well as expanded internationally in future. After making Gogi Boost a success the Juvinatar will expand its product line by offering other energy and fitness drinks which will combine different health benefits along with the energizing characteristics. The product line will be dealing in variety of super fruits and flavors in the near future. Some of the planned product line extensions of fitness drink are discussed below:

Juvinatar Classic Drinks:

This drink will provide an extra dose of energy especially for those who need no after taste as in other energy drinks. It will be composed of caffeine, taurine and B-group vitaminswhich will facilitate to be compatible at time of high energy need.

Juvinatar Cranberry:

Those people who won’t go with classic fitness drink can have a special Cranberry edition which will facilitate and satisfy consumer with a unique fruity power, as energetic as its natural deep-red color.

Juvinatar Fitness Lemon&Lime:

This drink will be composed of lemon and lime which will bring freshnessand will delight the consumer with summer energy all the way through the year.

Juvinatar Fitness Pomegranate:

This drink will create high energy in consumers through its deep, sweet-tart flavor and ruby-color and one-of-a-kind fruity taste.

Juvinatar Isotonic red and blue:

Juvinatar Isotonic sports and fitness drink will be enriched with 6 minerals, 10 vitamins, taurine and easy to digest carbohydrates.

Juvinatar Energy Drink Zero:

Juvinatar Zero is a new, low-calorie alternative to the most popular, well-liked classic Juvinatar taste. With no sugar added, Juvinatar Zero is a perfect solution for diabetics and everyone who wants to stay fit and healthy.

Juvinatar Energy Drink + Amino Acids

This drink will be specific for the athletes and physically active people who desire to get topmost effects from the training and between the sports sessions.

Juvinatar Energy Drink Light + Amino Acids:

A feminine, sugar-free version of Juvinatar Amino Energy Drink is perfect for active women that want their silhouette to stay perfect. It provides a supplement to diet devoid of any addition of single calorie.

Juvinatar Mental Energy:

Physical power is not only enough for the times when more intellectual energy is required. Therefore there is a need of a completely new energy-boosting formula. For that reason the Juvinatar Mental Energy will be launched.

Industry Analysis

Beside the reason that energy and fitness drinks are new horizon in the beverage industry, they have approved as enormous potential in the coming years. The energy drinks are although existed from two decades but still only account for 4% of the total soft drink market in
Canada. “Energy drinks are projected to lead the beverage sector in growth in per capita purchases, volume consumption and total value through 2011.” The customer base are also revolutionizing because of the lifestyle changes and trends. The more consumers are being adding up especially from the market of young males because of the aggressive marketing campaigns to attract the diversified variety of customers. The trend is also moving towards those energy and fitness drinkshaving less sugar, less caffeine and with more natural or organic ingredients which would encourage the demand for more healthy energy beverages.

According to GMID, the soft drink marketof Canada was having worth of $7,386.4 millionas retrieved from the year of 2010.The sale percentage of energy drinkwas depicted as 4.31% of the market with sale figures of $318 million. Given that from 2001, the growth rate of sales in energy beverages is depicted to be 217.5% from 2003 to 2004. The growth rate regarding sales is now steady something like 5.1 % from 2009 to 2010. Another encouraging fact is that the adjusted (restricted to population aged 15-64) per-capita expenditure on energy drinks in Canada in 2010 was valued at 13.46$ per person, a 4% increase from 2009. It is argued that there is a strong potential for growth in the energy drink market as its continuous expansion has proven to be a key indicator or the category’s success. On the other hand, the volume of sales relating fitness and energy drinks has declining growth rate as of peak of 2003 and 2004. This can pose a potential threat to Juvinatar future operations and unquestionably requires to be supervised closely.

Pricing Strategy:

Juvinatar Beverages pricing decision represents a challenging task as it is influenced by many internal and external factors and therefore must be thoroughly analyzed. Externally, the company does not intend to match the prices of the big energy drinks producers such as Pepsi Co. or Red Bull Gmbh, instead the focus will be on the unique characteristics of the products making it a premium good. Therefore, targeting a niche market of health concerned consumers will allow Juvinatar to be competitive while still pricing its product higher than its major counterparts. Another external factor to consider will be the consumer’s sensitivity to price. Even if students typically have an elastic price sensitivity (meaning that the quantity demanded by them will greatly decrease if the prices go up), our product will target a niche market where health conscious students are willing to pay a higher but reasonable price because of the products superior attributes. Internally, the company faces several challenges due to the specific nature of the product. Since Juvinatar offers an organic and fair trade product, Goji Boost consumers will understand that these aspects have to be reflected in the price of the drink. This also allows blending in the costs of growing the berry, manufacturing and transporting the final product from China, as the fruit is not widely cultivated. Furthermore, by manufacturing the product in China, close to the where the berry grows; the company is able to be competitive by lowering greatly its labor costs. Therefore, the combination of these attributes lead to Juvinatar’s pricing decision that capitalizes on the quality and features of its product and thus justifies a premium price. The company’s objective is first to penetrate the market and capture the profit potential of its niche market. Also, since the consumers of Goji Boost are not very price sensitive, the company decided not to include any price adjustment strategies in its initial launch in order to increase the profitability of GojiBerry. Numerically, Juvinatar’s pricing strategy translates to a retail price of 3.49$. This leaves Juvinatar with a before tax gross profit representing 31% of its revenues. The price is slightly above the company’s competitor prices (around 3$) but is still competitive because of the more inelastic demand of the firm’s product. Furthermore, the company’s contribution margin being 31% meaning that the company can use 31 cents for each dollar of sales to repay its fixed costs.

Price Chains
Juvinatar’s Price                                  $2.28
Juvinatar’s VC                                    $1.57
Juvinatar’s Profit Margin                    $0.71
Juvinatar’s % Margin                          31%
Distributor’s Price                               $2.65
Distributor’s COGS                            $2.28
Distributor’s Profit Margin                 $0.37
Distributor’s % Margin                       14%
Retail Price                                          $3.49
Retail COGS                                       $2.65
Retail Profit Margin                            $0.84
Retail % Margin                                  24%
Contribution Margin (CM)                 31%

Target Retail Margin 24%

Target Retail Price: 3.49$

Retail Profit Margin: 0.24 * $ 3.49 = $ 0.84

Retail GOGS: $ 3.49 – $ 0.84 = $ 2.65

Distributor’s Price: $ 2.65 (from Retail COGS)

Target Distributor Margin = 14%

Distributor Profit Margin = $ 2.65 * 0.14 = $ 0.37

Distributor COGS = $ 2.65 – $ 0.37 = $ 2.28

Juvinatar’s Price = $ 2.28 (from Distributor COGS)

Target Juvinatar’s Margin = 31%

Juvinatar’s Profit Margin = $ 2.28 * 0.31 = $ 0.71

Juvinatar’s Variable Cost = $ 2.28 – $ 0.71 = $ 1.57

Distribution Strategy:

Juvinatar will use indirect channels of distribution, as the company manufactures the product in China. Goji Boost will sell its product to distributors who will then distribute to individual retailers throughout Canada to deliver the finished product to consumers nationwide. In order to achieve target market coverage in the primary launch of Goji Boost, Juvinatar will utilize intensive distribution and intermediaries in order to successfully position itself as a convenience good. Goji Boost will be displayed on the shelves of convenience and grocery stores, and Juvinatar will target retail locations in Canada’s most populous areas and in close proximity to large universities, such as Montreal, Toronto, Ottowa, Vancouver, and Halifax. Additionally, the product will available in 24 hour stores, such as Macs, in order to increase availability. Retailers will include Loblaws, Sobey’s, Metro, Safeway, and Jean Coutu as the latter is recognized as one of the “World’s Top 50 Fastest Growing Retailers”. Once the Canadian market is saturated, Goji Boost will consider expanding to other countries, making Goji Boost an international name.

The distribution strategy for Goji Boost will be very similar to that of other energy drinks following a low cost structure with few intermediaries. Also, there is no need to differentiate distribution methods in order to attract customers; the goal is to have Goji Boost widespread in order to maximize frequent purchases. In its introductory stage, Goji Boost will be in the refrigerated drinks section of grocery and convenience stores, right next to the competitors.

This distribution strategy does not indicate any obvious horizontal or vertical channel conflicts, as all of the potential distribution outlets we have chosen are in direct competition with each other. However, it should be noted that an organized supply chain management team is crucial for Juvinatar, due to the distance between the point of product manufacture and the ultimate point of sale.

Branding Strategy:

Goji Boost is a unique product in the introduction stage of the product life cycle, which seeks to gain awareness, differentiate itself from competitors, and communicate brand personality. The promotional program outlines tactics that will be used in order to support Juvinatar’s objective to increase awareness among the target audience. The promotional budget for the initial year is $63,000 and will focus on online advertising, sales promotion, and public relations in order to create a relationship with the loyal customer while keeping costs low.

Advertising media will include radio, internet, and transit. To begin Goji Boost’s course of advertising, Radio advertisements will run from April to June in order to stimulate and ease recognition of the product in subsequent promotions. Radio advertisement will recommence in July in Vancouver, during the Celebration of Light, which attracts 400,000 spectators on each of the four evenings. Radio reaches 92% of the population aged 12 and over in an average week and has low costs, thus it can be effectively used to target specific local audiences. Over the course of 8 weeks, 3 different ads will be run, using humor, emphasizing benefits, and comparative advantage. Additionally, relatively low-cost transit advertisements displaying the slogan “Your New Go-To” and other catch-phrases will be presented in urban cities with high student population: Montreal, Toronto, London, and Vancouver. The transit advertisements will show how consuming Goji Boost will improve the target audience’s life, by showing physically attractive individuals. To capture the attention of the busy student, internet advertisements will be used as it is the fastest growing medium in Canada. Advertisement spots will be purchased on popular websites such as Face book and Yahoo.

Goji Boost will run a “Boost Yourself Contest”. In order to increase consumer purchases, the highly interactive style of the “Boost Yourself” contest will be used to increase brand identity and encourage customer involvement with the product. Consumers will send in their best “Boost Yourself” voice-recorded advertisement through the official website and the winner will receive a “boosted” themed party for them and 30 guests paid by Juvinatar as well as an opportunity to record a Goji Boost commercial to be played on the radio. The budget allocated for the party and radio advertisement is $6,000.

Finally, Goji Boost will sponsor “frosh” events at major Canadian Universities including McGill, University of British Columbia and University of Toronto. As university students are a substantial part of the target audience, sponsorship of frosh events during August 2011 will focus to promote the product and create a relationship with the target audience. In addition, 10,000 stickers will be distributed during frosh events and campus visits. Furthermore, sampling will be used at McGill, UBC, UWO, and U of T campuses in order to acquaint the consumer with the product, Goji Boost will be distributed on campus at a specified time which will be announced through their Twitter Page.

Advertising Strategy:

Some of the advertising objectives and strategy developed by Juvinatar Beverages for the Gogi Boost are discussed below:

Demonstrating a Product

The product Gogi Boost will be presented as a healthy product for the reason it has added medical and health benefits. The highlighting of medical assurance and healthy ingredients will present and demonstrate the product as healthy choice and an alternative to energy drinks.

Building Image

The Juvinatar Beverages will create a positive image of the brand by introducing a fitness and health drink. The brand will be highlighted among youth through events and sponsors launched especially in schools and colleges to directly reach and target the market selected. The price will be highlighted at low pace to show quality and health as an important and foremost priority of the company.

Changing Perceptions

This strategy relates the changing perception of the target audience. As in the case of Gogi Boost it is in the category of energy drink and energy drinks are often perceived as not healthy and dangerous to health. Juvinatar will launch product to show a positive and healthy side of the fitness drink.

Special Promotions Strategy

Juvinatar is also focusing on an advertising strategy to employ special promotions. By developing an email database, the firm can send customers coupons or invite them to special sale events regarding Gogi boost. Another technique employed would be attach coupons to receipts that allow for savings on future purchases.

Internet Strategy

Juvinatar will employ the social media especially blogs to enter the wide marketplace to interact with audience. Blogs on healthy drinks will be encouraged through the internet under Gogi Boost.

Integration with Marketing Goals:

Advertising strategies discussed above are aligning with the marketing overall strategies. Advertising strategies like demonstration of product as a healthy brand is aligned with the marketing goal of expansion of product and targeting especially to the ten agers and early adulthood. The internet will also facilitate the Gogi boost to make its market and facilitate in penetration of product in the market. The changing perception is also in line with the overall strategy as goal is to make a niche in the market to capture and reap benefits to the full potential. The element of healthy alternative to already available drinks will facilitate the Juvinatar to capture market for Gogi Boost. Integrated marketing is employed in the recent years by almost every firm to enhance the potential and appeal of its strategies to accomplish marketing goals and objectives.

Measuring AdvertisingEffectiveness:

The simple framework that would be applied for measuring advertising effectiveness is discussed below:

Reach – The first job of any advertising campaign is to reach the right audience. This technique will facilitate the Juvinatar to measure their advertising effectiveness not only in physical but also digital marketplace.

Resonance – Having reached the right audience, the next job of advertising is to get noticed. Breaking thru is the prior responsibility of any advertising campaign, for the reason that all will be vain if not noticed by the right audience. Juvinatar will conduct survey to know about their efforts regarding change perception and brand image creation.

Reaction – Advertising is employed to change behavior of the audience. Straightforwardly it is applied to enhance sales, but it can also mean getting consumers to search for your brand, go to your Face book fan page, talk positively about your brand, etc. this technique will facilitatethe firm to identify its optimistic ROI.

Promotional Strategies:

Advertising media will include radio, internet, and transit. To begin Goji Boost’s course of advertising, Radio advertisements will run from April to June in order to stimulate and ease recognition of the product in subsequent promotions. Radio advertisement will recommence in July in Vancouver, during the Celebration of Light, which attracts 400,000 spectators on each of the four evenings. Radio reaches 92% of the population aged 12 and over in an average week and has low costs, thus it can be effectively used to target specific local audiences. Over the course of 8 weeks, 3 different ads will be run, using humor, emphasizing benefits, and comparative advantage. Additionally, relatively low-cost transit advertisements displaying the slogan “Your New Go-To” and other catch-phrases will be presented in urban cities with high student population: Montreal, Toronto, London, and Vancouver. The transit advertisements will show how consuming Goji Boost will improve the target audience’s life, by showing physically attractive individuals. To capture the attention of the busy student, internet advertisements will be used as it is the fastest growing medium in Canada. Advertisement spots will be purchased on popular websites such as Face book and Yahoo.

Goji Boost will run a “Boost Yourself Contest”. In order to increase consumer purchases, the highly interactive style of the “Boost Yourself” contest will be used to increase brand identity and encourage customer involvement with the product. Consumers will send in their best “Boost Yourself” voice-recorded advertisement through the official website and the winner will receive a “boosted” themed party for them and 30 guests paid by Juvinatar as well as an opportunity to record a Goji Boost commercial to be played on the radio. The budget allocated for the party and radio advertisement is $6,000.

Finally, Goji Boost will sponsor “frosh” events at major Canadian Universities including McGill, University of British Columbia and University of Toronto. As university students are a substantial part of the target audience, sponsorship of frosh events during August 2011 will focus to promote the product and create a relationship with the target audience. In addition, 10,000 stickers will be distributed during frosh events and campus visits. Furthermore, sampling will be used at McGill, UBC, UWO, and U of T campuses in order to acquaint the consumer with the product, Goji Boost will be distributed on campus at a specified time which will be announced through their Twitter Page.

Measuring Customer Satisfaction:

It is dreadfully complex to determine Customer satisfaction for numerous reasons. Requirements for satisfaction vary according to every individual and on other hand the requirements are also difficult to quantify. Some of the significant steps that would be applied by Juvinatar Beverages are outlined below:

  • Survey Customers; the most important and significant way to get feedback is to conduct surveys.
  • Understand Expectations; without understanding the expectations of customers it is impossible to satisfy them. Expectations should be measured with respect to product as well as service element.
  • Find out where you’re failing; if you’re not meeting customer requirements, you need to find out where the failure is occurring.
  • Pinpoint Specifics; whether a customer is satisfied or not, the data you collect will need to accurately assess what is working and what isn’t. So inquiries into level of satisfaction should include more than just the overall experience.
  • Assess the Competition; accessing why customers prefer other brands also gives insight to measure the bottom-line of customer satisfaction.

Recommendation to Meet Satisfaction and Expectations:

The different ways that should be adopted to meet and enhance customer satisfaction are discussed below:

  • Communicate with the customer
  • Be Confident about the offerings and promise made
  • Be Professional and accept if you are wrong
  • Build Customer Confidence through post purchase assistance
  • Build Value through service element
  • Follow up the customer
  • Be the Solution of the customer’s problem and promote brand as solution not the product
  • Thanks the customer for its loyalty and offer membership and promotional service

Competitor Analysis

Juvinatar Beverages will face competition from numerous companies selling energy drinks. The most direct competitor is Red Bull GmbH, manufacturer of the well know Red Bull energy drink. As of 2010, Red Bull GmbH held 34% of the shares in the Canadian Energy Drink market and is a major sponsor of extreme sports and university events worldwide which directly competes with Goji Boost’s target market segment. The second major competitor to the company is Full Throttle by The Coca-Cola Co, with 11% shares of the market. Being the world’s #1 soft drink company, The Coca-Cola Co, represents a potential threat to Juvinatar Beveragesfor the reason of its well known brand and its well established production lines that can produce goods at a much lower cost through economies of scale. The third and final major competitor of Goji Boost is the energy drink SoBe by PepsiCo Inc with 9% market share. PepsiCo Inc. is the world #2 biggest selling soft drink companies’closes behind its archrival Coca-Cola Co. These 3 competitors have achieved economies of scale and are mass targeting a broad range of customers. However, Goji Boost will target a specific consumer niche market of health-conscious customers, thus providing them with a product tailored to their needs. There is also another fact to consider; the turnover for energy drinks is quite large as around 200 new energy drinks hit store shelves in 2006, according to the market research firm ACNielsen. Thus Juvinatar will target the specific market segment of health-conscious, young Canadian students; a premium niche market where the brand will establish itself as a leader in healthy alternatives to the popular energy drinks already on the market.

Differentiation Strategy:

The porter’s generic strategies are discussed below:

The Juvinatar is adopting a differentiated focus strategy as it is focusing a niche market having limited number of target market and providing unique benefits to them. The firm also wants to be a market leader because it is moving towards offering the most unique and differentiated elements especially in terms of healthy ingredients to compete the energy and fitness drink market and provide Gogi Boost as a healthy alternative to the target market.

PEST Analysis:

The PEST analysis is employed to analyze the macro environment of the industry to make several changes in the marketing plan. The PEST analysis relating fitness drinks is discussed below:

Political: Impact is Low

There are few numbers of political entities that control the alternate beverages industry.

Economic: Impact isModerate

The pricing relating premium changes make the alternative beverage industry sensitive regarding economic condition. It impact is moderate because it directly or somewhat impact the purchasing power of customers if their disposable income will increase or decrease.

Social: Impact isHigh

Reason behind the purchase of energy or fitness drink is very complex. Individuals consume these alternative drinks not only for the reason to mitigate thrust but to show image, benefit, and lifestyle and health concern of the product. Therefore innovativeness and image can make a firm to progress in the industry.

Technological: Impact is Low

Though researches it is depicted that technology have not had any critical impacts on the beverage industry from many past years. (Deru Indika, 2012)

Implementation Plan:

Goji Boost will be launched in April 2013. Three months prior the launch date, a viral marketing campaign will be launched on YouTube and Twitter. Through May, Juvinatar will launch a radio advertising campaign as well as its ‘Boost Yourself’ contest. Later in the summer, the company will sponsor the Celebration of Light festival in Vancouver. After this, a new transit advertisement campaign will be implemented in Montreal, Vancouver and Toronto. The company will also have an ongoing internet advertising campaign on websites such as Face book throughout the summer and sponsor university Frosh events. Detailed plan is discussed below:

References:

Agency, U. G. (2011). “Vietnam”. Retrieved from World Factbook:

https://www.cia.gov/library/publications/the-world-factbook/geos/vm.html&gt

Blog, T. 3. (2009). “Demographic Snapshot: Vietnam”. Retrieved from Age Curve Report:

http://www.theagecurvereport.com/3-beacon-blog/demographic-snapshot-vietnam.

html&gt

Canada, H. (2008). “Market Brief : The Canadian Energy Drink Market”. Retrieved from:

Agriculture and Agri-Food Canada: http://www.ats.agr.gc.ca/can/4469-eng.htm&gt

Canada. Learning Resources- Students. (2011). Retrieved from:

StatsCan: http://www.statcan.gc.ca/edu/edu02_0000-eng.htm&gt

Chris Joseph, (2013), “Examples of AdvertisingObjectives and Strategies”. Retrieved from:

http://smallbusiness.chron.com/examples-advertising-objectives-strategies-3271.html

Derek Halpern, (2013), “Customer Satisfaction: How to Increase Customer Satisfaction in 3

Steps”. Retrieved from: http://socialtriggers.com/increase-customer-satisfaction/

Derrick Daye, (2012), “Measuring Advertising effectiveness”. Retrieved from:

http://www.brandingstrategyinsider.com/2012/05/measuring-advertising-effectiveness

.html#.UfNp1Oz-XY8

Deru Indika, (2012), “Competition in energy Drinks, Sports Drink and Vitamin Enhanced

Beverages”. Retrieved from:

Easter energy Drink, visited on 15th July,2013. Retrieved from:

GMID, G. M. (n.d.). “Statistics on Energy Drinks and Soft Drinks Market Shares”. Retrieved

from: http://www.portal.euromonitor.com/Portal/Statistics.aspx&gt

Kyle Simpson, (2010), “5 Ways to Measure Customer Satisfaction”. Retrieved from:

http://www.returncustomer.com/2010/08/25/5-ways-to-measure-customer-satisfaction/

Report, C. F., (2011), “Canada Drink Industry SWOT”. Retrieved from:

http://web.ebscohost.com/ehost/detail?hid=111&sid=1e8a3f01-af01-4fef-8864-8fa87b0 a174f%40sessionmgr115&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=57622319>

M2 Communications, (2010),“Research and Markets: Emerging Trends & Growth Opportunities in Energy Drinks: Shots, Flavour Trends & Forecasts to 2015”.

Soft Drinks in Canada to 2011. (2007). Retrieved from Datamonitor report: Reference Code: DBCM2102

“Technology, Communications and Media: Vietnam. Sports and Energy Drinks”. Retrieved

from: http://www.portal.euromonitor.com/Portal/accessPDF.ashx?c=18\PDF\&f=S-174745-19647618.pdf&code=F856OLgLVxFXMYAr8sUJZxQ1NnQ%3d

US Government agency, (2011), “The World Fact Book”. Retrieved from:

https://www.cia.gov/library/publications/the-world-factbook/geos/vm.html>