Tiger Energy Drink Marketin Plan

MARKETING PLAN TIGER ENERGY DRINK STAY FOCUSED 1. 0. Executive Summary Tiger Energy Drink offers their consumers â€Å"a unique product endowed with different usage alternatives† providing a beverage focused on positive effects of an energy drink and guarana with an amazing sweet taste. Tiger Energy Drink is an alternative to tea and coffee and can be consumed cold or hot depending on the preference. It has a very sweet taste -not too much intense- and can be consumed as a regular beverage. Tiger is positioned itself as an alternative to coffee since it offers a great variety of caffeine (guarana) and other energy drink since it offers different flavors. Guarana, the main ingredient of the Tiger energy drink, has a cognitive effect. A 2007 human pilot study  assessed acute behavioral effects to four doses (37. 5  mg, 75  mg, 150  mg and 300  mg) of guarana extract. Memory, alertness and mood were increased by the two lower doses, confirming previous results of cognitive improvement following 75  mg guarana. Some research also shows that Guarana has antioxidant and antibacterial effects, and also fat cell reduction. The target audience is working class and is primarily males and females between 25 – 40 ages. The majority consumer group of Tiger Energy Drink includes white-collar workers who spend long hours in office, working parents and young adults. 2. 0. Situation Analysis Tiger, founded 6 months ago by 2 entrepreneurs, is about to enter the competitive energy drinks market in Turkey. Although Energy Drinks market is considerably small, its annual growth rate is around 30% and the market is the most profitable segment of the non-alcoholic beverages market. The existence of big players and many cheaper outlier products will make it difficult for Tiger to establish a strong brand and market share in the short term. In order to do that, Tiger will differenciate in product flavors, hot or cold use opportunities and varied serving sizes. Of course, careful targeting of specific segments and supporting marketing activities will be the key to success. 2. 1. Market Summary Energy Drink market in Turkey consists of 0,35% of the whole non-alcoholic beverage market in terms of the market volume. The total volume of non-alcoholic beverages in Turkey is 7,2 billion liters, whereas Energy Drink’s volume is 25,5 million liters. On the other hand, when the market value is taken into consideration, Energy Drink market gets 3,5% of the whole non-alcoholic beverages market. The value of the whole non-alcoholic drinks market is 8,5 billion TL, and Energy Drinks’ share is 298 million TL. While the average value per liter in non-alcoholic beverages market is 1,18 TL, The same ratio becomes 11,66 TL in case of Energy Drinks. Therefore, it can clearly be seen that this segment is quite lucrative and profitable. The sub-markets, from the biggest to smallest, are water, tea, carbonated drinks, non-carbonated drinks (e. g. ice tea) and coffee markets. Although, its size is small, Energy Drink market has a steady 30% annual growth rate. Energy Drink consumers are usually in the 25-40 age range, upper income level white collar people. However, cheaper products were able to penetrate low and mid income level segments too. These include truck drivers and blue collar workers. Energy Drinks are consumed in many different occasions. The need of concentration and productivity defines their daytime use whereas the need of fun and high energy defines their nighttime use. The table below shows how Tiger addresses the basic needs of its targeted segments. Targeted Segment| Customer Need| Corresponding Feature/Benefit/Product| All Segments| Wake-up in the morning| Tea flavored, hot or cold consumption optioned Tiger (B vitamins and thein)| Students & Professionals| Concentration and Productivity in daytime and work activities| Orange, Melon or Tropical Mix Tiger drinks (Guarana)| | Fun and High Energy in nighttime activities| Orange, Melon or Tropical Mix Tiger drinks (Guarana, Ginseng, Taurin)| 2. 2. SWOT Analysis Tiger has several strengths which do not exist in Turkish market. However, lack of brand awareness and image is the most important weakness. The fact that the competition is well established could be identified as the strongest threat. Finally, the fast growing and profitable structure of the energy drink market would be the biggest opportunity. 2. 2. 1. Strengths Tiger has a number of important strengths 1. Innovative Product: The product has 3 different and well liked flavors which can be consumed without mixing with any other beverage. Alternatively, those flavors of Melon, Orange and Tropical Mix are suited to mix with many different alcoholic beverages. Finally the tea flavored, hot or cold consumption optioned, 4th variation is the revolutionary energy drink product. With its unmatched and tailor-made for Turkish taste tea flavor; this energy drink can be consumed even in breakfast. Its ability to be consumed as a hot drink is also revolutionary. 2. Pricing: Tiger offers excellent quality with better pricing than its 2 major competitors, Red Bull and Burn 3. Product Ingredients: Tiger’s excellent combination of Guarana and Ginseng causes great focus, improved memory and higher productivity. Furthermore, the Thein in tea-flavored variation invokes additional alertness, especially required in the morning. 4. Serving Sizes: Unlike its competitors, Tiger will have 350 ml cans for Orange, Melon & Tropical Mix flavors and 75 ml cans for tea flavored variation as well as the conventional 250 ml cans. 2. 2. 2. Weaknesses 1. Lack of Brand Awareness: Tiger does not have an established brand awareness and image. On the other side, Red Bull, Burn and other competitors have strong brand images. This issue will be dealt with aggressive promotion activities. 2. 2. 3. Opportunities 1. Growing and Profitable Market: The Energy Drink market grows around 30% annually. Furthermore, that sub category of the non-alcoholic beverages market has the highest profitability. 2. Demographics: Turkey’s population is younger compared with European and U. S markets. Therefore, target market size is lucratively big. 2. 2. 4. Threats 1. Competition: The competition in Turkey is well established. Red Bull and Burn share the upper segment of the market with almost 65% of the market value in total. With the addition of smaller and cheaper products, there are around 40 different brands in Turkey. In sum, Turkish Energy Drink market is highly competitive. 2. Energy Drinks’ image: Energy drinks are still seen as unhealthy and unnatural. In 2001, Red Bull was banned in Turkish market due to excessive caffeine content. Red Bull’s caffeine content is 400 mg per liter, whereas Turkish regulations did not permit higher than 150 mg at that time. However in 2004, Turkish Food Codex has been updated according to European Union standards and Red Bull’s ban had been revoked. Additionally, some fatalities occurred after excessive alcohol consumption and it was said that energy drinks were also involved and they would cause death when mixed with alcohol. These incidents along with the banning history of Red Bull strengthened the â€Å"unnatural and unhealthy† image of the Energy Drinks. 2. 3. Competition 2. 4. Product Offering 2. 5. Distribution 3. 0. Marketing Strategy 1. The main marketing strategy is to emphasize Tiger’s distinctive taste, different usage opportunities and size can. The taste is not too intense but very enjoyable with three different flavor. The product has 3 different and well liked flavors which can be consumed without mixing with any other beverage. Alternatively, those flavors of Melon, Orange and Tropical Mix are suited to mix with many different alcoholic beverages. The tea flavored, hot or cold consumption optioned will be an innovative energy drink. The size also provides a longer lasting boost of energy and cognition and production capability which led to the brand â€Å"Stay focused† slogan. 3. 1. Marketing Objectives Since we are completely a new brand we have set realist but achievable objectives for the for the first and second years of market entry First year objectives: In 2012, the total volume of energy drink will be theoretically 33 million liter if we take the consideration of the growth rate and last year wasted volume. We are planning to get a 5 percent share of the Turkish energy drink market through unit sales volume of approximately 5. 000. 000. We have to achieve a steady increase in market penetration. The primary goal is to build and increase both awareness and brand loyalty for Voltro among upper-income professional age 25 – 40. Second year objectives: In second year the main objective is to increase market share from 5 to 8 percent. We are planning to achieve break-even and start to get profit on our third year in business. 3. 2. Financial Objectives Energy drinks are most profitable beverage among all non-alcoholic beverages. The energy drink market is very small compared to other beverages market but it is growing 30 percent per year. Our financial objective is to maintain and increase this grow rate for our business. For the first year specially we would like to maintain a significant advertising budget to execute and utilize different media vehicles: magazine, internet, prime-time television, ambient and billboards. These media vehicles will allow Tiger to reach the desired reach and frequencies while keeping within the budget. . 3. Target Markets Tiger’s strategy is based on a positioning of different and exotic flavors, hot or cold use opportunities and varied serving sizes. Our main consumer target of Tiger is upper income level white collar people, working parents and young adults between 25 and 40 age who want healthy, natural, tasty and a high quality an energy drink with an affordable price. Tiger energy drink h as ability to strengthen memory, increase focus and overcome exhaustion and insufficient energy. Our secondary consumer target is low and mid income level which include truck drivers and blue collar workers who seek to stay alert during driving, working, etc†¦ These type of consumers are only looking to pay less for an energy drink since they consume for a purpose: â€Å"stay focused and alert†. 3. 5. Positioning Kaplan’s strategy is to be an innovative energy drink by product differentiation based on size, taste and hot or cold usage. Using product differentiation, we are positioning Tiger Energy Drink as the most revolutionary, tasty and healthy energy drink. Tiger is the brand of energy drinks that gives you the need of concentration and productivity in day time and need of fun and high energy in night to allow you to do everything you want in a full day of work and play. The fruity and tropical fresh taste leaves you asking for more and the bigger size contain more healthy ingredients than their competitors. Our marketing will focus on the value-priced equilibrium, reflecting the positive side of a big size and product taste and usage alternatives. 3. 6. Strategies Product . 7. Marketing Program 3. 8. Marketing Research 4. 0 Financials 4. 1. Break-Even Analysis 4. 2. Sales Forecast 4. 3. Expense Forecast 5. 0. Controls 5. 1. Implementation 5. 2. Marketing Organization 5. 3. Contingency Planning ——————————————– [ 1 ]. Market values are taken from Nielsen and Canadean’s data. While Nielsen measures retail market data, Canadean m easures â€Å"outside home† consumer data. Non-alcoholic beverages market data excludes pure milk and home use demijohn water products.