Business Idea
With the increasing levels of globalization, the level competition has increased due to entry of multinational companies in the market. These companies have a strong financial base an aspect that poses a great threat to small and medium enterprises thereby a need to look for ways of expanding their market and financial base. In order to reduce these risks, our company will conduct a research on how to diversify its market through the introduction of soft drinks which will mainly target the youth. The reason behind the idea will be to increase the profit margin of the company as well as spreading the risks posed by the competitors.
Research Problems and Objectives
In order to understand the market behavior the research will unveil the existing market trends and changes that affect the level of consumption behavior of the customers. In addition, advertisement being one of the problems that is affecting many companies, the research will try to formulate and make recommendations on the best methods of advertisement an aspect that is likely to increase the market size of the company (Lamb, Hair & McDaniel,2009). There is also need to identify how the company will distribute its products in the market in order to make the product easily available to the customers an aspect that will create customer loyalty. Efficient distribution of the product will also ease the cost incurred during transportation and delivery. This will enable the product to position itself strategically in the market (Pride & Ferrell, 2013).
The objective of the research is:
- To understand the existing channels in the market that can be used to effectively distribute the product
- To come up with effective marketing strategies in order to attract more customers towards the products
- To unravel the best way of market entry in order to position the product strategically in the market
- To measure the level of competition and major competitors that exist in the market
- To strategize on the best options to use in order to push the product in the market
Secondary Research Findings
The research indicates that majority of the users of refreshments are mainly ladies and young people who are at the age of 14-30 years. This is because they are concerned with keeping their body shape and carrying refreshments to many is seen as fashion. It also indicates that the best places to set the distribution channels are around the schools, colleges and other places where the concentration of young generation is very high. This will, therefore, make it easier for the youth to get access to the products an aspect that will play a great role in segmenting the market for the product. Statistics indicate that peoples spending have been raised by 0.43 percent an indication of improved life standards. This indicates that it is the best time to invest in the level of consumption is high (Office of National statistics, 2012).
Research indicates that refreshments are produced by multinational companies and small enterprises. Some of the renowned multinationals that produce refreshments include Coca-Cola Pepsi brands (Liu & Smit, 2013). There are other small companies which concentrate with little-known refreshments but play a great role in denying the huge companies a full command of the market. In order to segment the market for the product, the company has to sign some contracts with renowned distributors which are going to help in distributing the product s to the market. The contract will enable the business to first concentrate on producing goods for the market without concentrating on the distribution. Research indicates that for a company to effectively market its products in the market, a special department that will concentrate on product marketing needs to be formed. This will avoid overloading of the existing departments an aspect that might reduce the concentration of the departments on the markets.
In the future, the company needs to use direct marketing of its product and eliminate all distributors. Research indicates that in some instances, distributors hike the prices of the commodities an aspect that forces consumers to shift their loyalty towards other cheaper goods. As a result, the company will be dictating the prices of their commodities an aspect that will enable it to adjust the prices according to the forces of supply and demand (Ranchhod & Gura%u0306u, 2007).
Statistics from secondary sources indicate that 90% of the young generation uses social media today as a way of getting crucial information about their company of choice and interacting with administrators of such companies. In order to tap this population, the company will venture into advertising through social media an aspect that is expected to increase the target market (Key Note, 2010). The market report indicates that Coca-Cola and Pepsi have set up a separate department whose work is to respond to inquiries by their customers on social networks (Mintel, 2010). As a result, they have been able to read and identify any changes in the customer behavior an aspect that has enabled them to apply the necessary strategies thereby evading the loss of the customers due to the changes (Olson & Lo%u0301pez,2009).
With the increasing levels of technologies in the market, research indicates that the company to be undertaking an overhaul analysis of its existing technologies in order to determine if they have become obsolete or not. This will play a great role in ensuring that the product remains competitive in the market. Climatic conditions affect the product consumption to a very great extent. As a result, the company needs to plan on how to maximize profits during warm seasons (Olson & Lo%u0301pez, 2009).
Entry method in the market plays a great role in attracting customers who are mainly eager to taste the new products. As a result, intense advertising is to be staged in order to alert the target customers of a new product in the market. In addition, the company needs to promote the products through the use of salespersons and price strategies which include lowering the price of the commodity to lower levels in order to attract more customers to purchase the product and test it (Chaston, 1999).
Interpretation of the Findings
The findings indicate that for the company to successfully launch its new product, it needs to set quite some amount in order to have an impact in the market during the launching of the product. In addition, the company needs to strategize on the best methods of entry in order to curve a certain segment of the market towards its products. The findings also indicate the importance of suppliers in ensuring that the products are readily available to the customers (Clark, 2013)
Major changes concerning leadership need to be undertaken in order to force the product in the market. A specialized department needs to be undertaken and a positive culture implemented in the organization in order to create a sense of teamwork both in the company and even outside the company (Zikmund & Babin, 2007).
Customer relation is also an important aspect that shapes the destiny of the product in the market. In order for the product to perform well in the market, it has to retain a good relationship with the customers through rewards and offers. In addition communication with the customers has been highlighted as a significant channel for ensuring that the company is able to learn of any behavioral changes in the consumption of the product (Penzkofer, 2007).
Summary
Performance of the organization is a task that involves all stakeholders of the company i.e. managers, employees, suppliers, customers, shareholders etc. In addition, effective marketing of the product plays a great role in improving the performance of the product in the market. Also, market entry acts as the pillar towards segmenting a large portion of the target market and positioning the product strategically in the market. Lastly, political, environmental, social-cultural, technological and even legal factors are aspects that should be taken into consideration because they directly affect the performance of the products in the market.
