Wednesday, September 23, 2009

Magic Dust Vodka Marketing Plan: "Because relaxation shouldn't be optional."


BUSINESS MISSION STATEMENT: “To Spice up your Relaxation.”

“The foundation of any marketing plan is the firm’s mission statement, which answers the question, “What business are we in?”(MKTG, Lamb, pg. 18)

Magic Dust Vodka is a unique brand that mixes traditional powdered cider with a shot of vodka. Our idea is to combine a relaxing hot beverage mixed with the excitement of our premium vodka. This allows our consumer to enjoy an evening at home and further enhance their need to relax. My vodka brand will satisfy a niche in the market. That niche will be composed of people with busy lives who want to relax but remain young.

“For small companies with limited resources that potentially face giant competitors, niching may be the only viable option.” (MKTG, Lamb, pg. 21)

OBJECTIVES

“…objectives should be realistic, measurable and time specific…they communicate marketing management philosophies and provide direction for lower-level marketing managers so that marketing efforts are integrated and pointed in a consistent direction.” (MKTG, Lamb, pg.18-19)

-Increase market awareness of our product within our target market by 20 percent within the first year.
-Inform target audience on the use of our product and unique features it presents. Emphasize our product's superiority over competitors leading to a 10 percent increase in sales in second year of tracked sales.
-Achieve a 15 percent dollar market share in the vodka market within 18 months of product introduction.

SITUATION OR SWOT ANALYSIS

“Environmental scanning helps identify market opportunities and threats and provides guidelines for the design of marketing strategy.” (MKTG, Lamb, pg. 19)

Strengths

Unique product that satisfies a niche market of people who wants to stay home and relax but also remain young and lively. Magic Dust Vodka is unlike any other vodka brand in the market.

Weaknesses


Since Magic Dust Vodka is a niche product, I need to be able to reach a very specific market. My target market are people who probably have children and busy lives. Reaching these consumers will be difficult due to their lack of time and hectic schedules.

Opportunities


If I can become well-known and prominent within the middle-aged family and business people, I can attempt to expand to other markets. I may be able to move to an older demographic if I'm more recognizable.

Threats


There are hundreds of vodka brands available to the consumer. Many of these brands are already established and well-known within the target audience.

MARKETING STRATEGY

Product Development

“Managers following the product development strategy can rely on their extensive knowledge of the target audience.” (MKTG, Lamb, pg. 22)

When introducing a new product, the most important aspect is to understand the target market. My target audience will include younger parents and other middle-aged business people. I will focus on these people because I believe that these people need to relax more than any others. They have hectic, busy lives and want time to come home and drift away from the worries of their day.

New-Product Strategy

“The new-product strategy specifies the roles that new products the organization wants to offer and the markets it wants to serve.” (MKTG, Lamb, pg. 147)

Magic Dust Vodka is the most important product offering because it is a revolutionary idea that will bring a new sense of excitement to the vodka market.


MARKETING MIX

Product

“We buy things not only for what they do (benefits) but also for what they mean to us (status, quality, or reputation.” (MKTG, Lamb, pg. 25)

My product will offer a premium vodka that will allow a unique experience for the consumer. Just as Starbucks offers the European coffee experience, I want to offer a certain experience for my customer. I don't want it to be solely about my product. I want people to buy Magic Dust Vodka for what the product means to them. I want to offer the experience of relaxation and an escape from the daily stresses of life.

Place/ Distribution

“Would you rather buy a kiwi fruit at the 24-hour grocery store within walking distance or fly to Australia to pick your own?” (MKTG, Lamb, pg. 25)

I want my vodka to be offered at liquor and grocery stores to allow for convenience for my consumers. I have stressed that my customer has a hectic lives. I want my product to be readily available so that obtaining it doesn't add to their daily stresses. It should be as easy to pick up as a loaf of bread or a gallon of milk.

Promotion

“Promotion's role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product.” (MKTG, Lamb, pg. 25)

I want to promote my product through both unusual and conventional methods. Since most of my consumers will have children, I want to create a children's book for adults. My consumers buy or have had to buy children's books for their kids, I want them to be able to have a book that is written for them. This book will be written as a promotional tool that will inform and excite people to my product. It will be written with adult concepts in the form of a children's book. I am hoping that this concept will also attract publicity and maybe some scandal that will act as free product publicity. Initially, I will include this book with purchase, and as my product develops and becomes popular, I may decide to create a comic book or a series of books that consumers can buy and collect. These books will then act as additional revenue for my company.

Conventionally, I will probably have television advertisements that will play during prime time to target my audience. I will also take out magazine ads in magazines that I believe target my consumer. These conventional methods will add to my total promotion capabilities.

Also, see branding strategy below to view another idea for unconventional promotion.

Price

“Price is an important competitive weapon and is very important to the organization because price multiplied by the number of units sold equals total revenue for the firm.” (MKTG, Lamb, pg. 26)

Magic Dust Vodka will be a mid to low range item. My target market, those with families, are mostly on budgets and will be looking to spend a minimal amount of money. By keeping my vodka affordable, I can beat out some of the competition. The combination of a lower priced item and the unique features will attract my target market, as well.


PORTFOLIO MATRIX

“The portfolio matrix classifies each SBU by its present or forecast growth and market share. The underlying assumption is that market share and profitability are strongly linked.” (MKTG, Lamb, pg. 23)

Ideally, I would like to strive to be a star in the marketplace by becoming a fast-growing market leader. To do so, I will need to maintain promotion throughout my product life. Without this maintained promotion, my product could become a dog and eventually leave the marketplace.

MARKET OPPORTUNITY ANALYSIS (MOA) and TARGET MARKET

“Target markets can be selected by appealing to the entire market with one marketing mix, concentrating on one segment, or appealing to multiple market segments using marketing mixes.” (MKTG, Lamb, pg. 24)

I will be concentrating on one segment in the market. I have selected a market niche and will target my marketing efforts accordingly. My target market, as stated previously, are middle-aged business people and those with families. By concentrating on this segment, I can effectively work on satisfying their needs and wants. By doing so, I can compete with larger, more established brands.

BRANDING STRATEGY

“Heineken is trying to do for its beer what Starbucks has done for its coffee—create a social “brand experience.” (MKTG, Lamb, pg. 137)

Heineken has set up bars within airports to attract customers to its product offerings. Similarly, I would like to eventually expand and create environments that my consumers can enjoy Magic Dust Vodka. I understand that many people can't relax fully at home due to children, spouses, or other distractions. By creating a place (similar to a coffee house), I can further promote by mission statement and brand slogan and attract a larger customer base. These “lounges” would allow people to have another place to relax and allow my company to branch into other product offerings such as other alcoholic drinks and snack items.

LABELING

“Informational labeling...is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.” (MKTG, Lamb, pg. 141)

“Marketing costs in the introductory stage are normally high for several reasons...Advertising expenses are high because of the need to educate consumers about the new product's benefits.” (MKTG, Lamb, pg. 155)


When labeling my product, I want to be sure to include some form of instructions so that my consumer can easily understand how to use my product. When purchasing regular cider packets, there are instructions on how to prepare the product. My product is no different. My advertisements should also include some form of instructional information for my consumers' benefit.

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