WLD: Weight Loss Drink Executive Summary The following report will give breakdown of WLD, a weight loss drink created by Team A for week six team assignment. This product launch purposed is to determine the factors that will influence a successful marketing plan. Team A will introduce WLD and present a situational analysis, show WLD’s market growth potential. Team A will show a competitive analysis that will assess WLD strengths, weaknesses of their competitors and provide Team A with an offensive and defensive strategic context that will identify opportunities and threats.
Team A will then describe their target market and positioning. Pricing and distribution will also be conveyed. WLD’s marketing plan will illuminate significantly by describing their promotional and product strategy. Pricing and distribution strategies will consist of what Team A will charge to purchase WLD and how the product is distributed in the market. The financials for WLD will provide the budget for marketing, and promotion, sales, break even analysis will show how many of WLD need to be sold in order for Team A to break even.
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Team A will also provide a forecast for the demand of WLD in the market. Financials will also show WLD’s intended marketing objectives, and the milestones of implementations for the next three years. Last Team A will provide in the marketing plan an evaluation and control metrics and how the performance of WLD will be measured, and following up with a contingency plan. Many people in the United States have trouble losing weight. Losing weight has become a worldwide challenge that many have struggled with.
Many have tried several diets and a physical exercise but have not been successful. Now those problems consumers are having with eight loss can be better and nonexistent. WLD can put an end to worries, and struggles of those who want to lose weight, and it taste good too. WLD is a perfect choice for weight loss. WLD is the healthy choice to weight loss. WLDs’ purpose it to give the user a healthier way to lose weight. WLD taste good but is made with ingredients, which are healthy, no sugar added, and increase metabolism, aid in colon health while getting rid of body fat.
Situational Analysis WLD is something that helps those that are wanting to lose weight and try something ew, and tor those that think going this way is not a way to go. Putting this in tront is a way to get the word “out,” and show others Just how important it is to be healthy in life. WLD is to help those that have health issues like diabetics, high blood pressure and other problems that could benefit from this kind of discovery in the weight lose field. Finding something that is going to work is a wonder to those who are looking for a solution to get personal results.
WLD is a product that will show personal results in a sample trial so in which the client who is trying WLD will be able to share with thers and maybe have more customers in the long run that will be able to have a small business going while working a full time Job. WLD has so many different values working for them that is going to be interesting on Just how this product will go in the long run. Sharing the information with others is something that will help in getting the word “out,” because this could be the “next big thing”.
Market Growth Potential and Competitive Analysis Weight loss is a hot topic right now which people are looking for ways to lose weight and want something to help in reaching that goal. This new product is helping those that have health issues and is exciting to those that want to try this product and learn of the results. WLD will be a new trend that will make others to become healthier and wealthier for those who want to invest. One company out there at the moment that will could give WLD a run for the customers is Plexus (“Plexus Worldwide,” 2013). This company is new and does not have the marketing that WLD will have.
It has the same things in common with WLD, but the advertising is out there for customers to learn, know, and understand Just how it will work for the lient. Segmentation, Target Market, and Positioning Segmentation Marketing for WLD will include word of mouth, selling to those that are friends, and sharing the knowledge with those that are willing listen and try this product. Social media like Facebook and Twitter is a good way for representatives to share the name and how much the clients are in love with WLD, how well it is working for the consumers’ goal of losing weight.
WLD is a product that will take time and interesting techniques to market with all of the media possibilities that are available. Target Market This product will attract those clients that want to lose the weight or those who want to try something new to help in losing weight. Several places for consumers to find this information is in their doctor offices, malls, nutrition stores, fitness centers, and grocery stores. Finding those customers is going to be easy when looking if you are looking in the right places, and WLD will have to become extremely creative on ways of delivering product information.
Positioning Positioning is something that WLD customers will be able to express their personal experiences with others. Getting goals is something that customers will be able to show the results as in a before and after picture. For this to happen the best place for this to shown is the doctor’s office either in the waiting rooms or in the exam rooms. Either way would be a great place the doctor to talk about this product and patients can see the transformation of others. Plus if the doctor was wanting others to try this, having the doctor try this and tell from his point of view.
WLD is something that will be known around as the wonder drink for health issues. Pricing and Distribution Strategies Pricing WLD is a new product it will enter the market using the trial pricing strategy, which means it will be priced lower than other weight loss products on the market, to attract customers to try WLD and allow the company to breakeven in year one. Once the introductory phase has completed its course the price will be increased slowly and in small increments so to gain more profit share. WLD will have to be careful with its pricing because, it is and elastic product.
Meaning it is a product of want not need. WLD priced at $3. 75 a bottle, $20 dollars a six pack, which is giving the onsumer a discount of $2. 50 if they purchase six pack, and by decreasing the price for a six pack will encourage the consumers to buy large quantities of WLD. The pricing for WLD will be perceived by the consumer as being high quality. To convince retailer to sell WLD in their stores Team A will offer discounts based on quantity. If a retailer buys 3,000 bottles they will receive a 10% discount and 20% for a purchase of 5,000 bottles.
Team A chose trial pricing strategy because of its target market. The upper and upper middle- class consumer will be able to afford the price set by Team A. Distribution After reviewing the acquired information, Team A has decided to distribute its product to the following cities listed in the table below. Team A recommends the distribution should begin in the stated cities because with obesity being on the rise Team A had an Advisory Board Company to do research to find the unhealthiest cities and as a result they found, which cities are the most obese cities in the United States.
These cities are mainly in the west and WLD will be launched in the west with the main facility will be based in Charleston, W. V. he reason for choosing distributors is to target our prime market for the principal phase of distribution. Top Obese Cities in the United States for 2013 1. McAllen-Edinburg-Mission, TN 2. Huntington-Ashland W. V. , Ky. , and Ohio 3. Little Rock-North Little Rock, Conway, ARK 4. Mobile, AL 5. Toledo, Ohio 6. Charleston, W. V. 7. Reading, PA 8. Ene, PA 9. Beaumont-Port Arthur, TX 10. Hagerstown-Martinsburg, MD, and W.
V. WLD will not only be distributing to convenience stores, gyms, and vending machines to start with but will seek partnership with the Curves franchise because hey are the largest with more than 9,000 locations and as the demand increases WLD will partner with Curves to distribute its products on site. To grab the attention of the shoppers who are too busy to go the gym Team A will place a display of WLD products in the healthy food aisle along with an introductory coupon for a discount of $. 75 as an incentive to buy WLD.
At the end of year one when WLD has become more recognized Team A will expand across the United States by increasing the number of convenience stores and gyms locations WLD Marketing Communications Plan Marketing Communications O Develop Brand awareness Build customer traffic Change customers, beliefs, and attitude about drinks to help them lose weight Increase product demand Increase market share Marketing Objectives Product Price Placement Promotion Marketing Communications Strategies 1 . Advertising 2. Sales Promotion 3. Direct Mailing Communications Media 1. TV, Radio 2.
Print Media (magazines, direct mail outs) 3. Internet (putting WLD ads on social networks) 4. In Store Display stands in convenience and grocery stores, Gym vending machines Marketing Communication Message Marketing Slogan: WLD’s message to its target market is “Lose the unwanted weight and fell great with WLD. ” Marketing budget WLD’s marketing budget will be considerably high during the first few years until WLD is established itself in the market. The factors that will affect WLD’s market performance is (1) being a new product, WLD will need to create trial and brand awareness of their target market. 2) Because WLD does not yet hold a market share in the United States, in their category of weight loss drinks, it is important to build their market share. 3) Because of the enormous amount of competition WLD must differentiate its brand. Table 1: Vehicle Month 1 Month 3 $100,000 $0 Radio $20,000 Print $30,000 Internet $5,000 In Store Total $ $1,1 55,000 After the first 30 days of WLD’s official launch, Team A will re-evaluate each communication vehicle every two months to evaluate when and where financials may be adjusted accordingly.
Table 2: Communications vehicle tactical calendar for WLD Month 2 Month 4 Month 5 Financial Information This section will address the financial overview of Weight Loss Drink pertaining to arketing concerns. We will include break-even analysis, sales, promotional budget, and marketing expense to determine our marketing strategy. Break-Even Analysis In order to break even each month Team A will need to earn $20,831 in revenue by selling at least 5,555 individual units.
Break-Even Analysis: Monthly Units Break-Even 5,555 units Monthly Sales Break-Even $20,831 Assumptions: Average Per-unit Revenue $2. 30 Average Per Unit Variable Cost $0. 95 Estimated Monthly Fixed Cost $19,575 Sales Forecast Team A has broken sales into two categories direct consumers and corporate sales. Consumer sales represent online purchases in small individual quantities and corporate sales represent sales to companies, such as a local grocery store or health club.
Sales are predicted to increase as the advertising budget increases. Sales 2013 2014 2015 Consumer Sales $500,000 $650,000 $800,000 Corporate Sales $1. 5M $3. 5M Total Sales $2. 65M Direct Cost of Sales $150,000 $195,000 $240,000 $130,000 $160,000 Total Cost of Sales $250,000 $325,000 $400,000 Promotional Budget/Marketing Expense The promotional budget will be set at 20% of monthly sales, therefore as sales ncrease the promotional budget will increase. The will consist of funds to increase visibility of WLD around the globe.
Intended Marketing Objectives for Y 1, Y2, and Y3 The intended marketing objectives for Y 1, Y2, and Y3 are to develop cost, which allows profitability, create brand loyalty, and increase market visibility. Our company needs to be profitable in order for us to succeed, which means we have to set our price at an appropriate level. When taking into account the cost of production, distribution, advertising, and many other cost the price of the product has to be sufficient to cover hose cost while making money for the company.
Brand loyalty will mean that consumers will choose our product over our competitors because they know that WLD will give them the results they seek. As we launch WLD our visibility in the market will be limited as expected, but by the end of year two we to be present in major health clubs and grocery stores across the nation. Implementation milestones Implementing milestones will bring the plan to life and the plan will determine specific measurable activities that help bring the plan to real terms and not Just become some document.
Implementing milestones such as budgets, start dates, end dates, etc. For example, before WLD gets together to have a meeting of some sort than the milestones of asking questioned about the budget, time management, and plans will be implemented at the time stated and put in the plan. The milestones will show whether any correction need to be made or considered for the WLD product. Evaluation and Control Metrics and Methodology to Measure Performance Measuring pertormance is important, and several methods, and metrics can be used to determine how well the product is gaining its lead in the market.
Performance can be measured through a scale system which will allow employees and consumers to determine how well performance is by dictating a number to be the best or the poorest. Another method to use is evaluation forms, and surveys. The methods will help determine whether the product is succeeding in the market according to strategies and plans, or if the product is not on point with the plans and strategies. Contingency Planning Contingency planning is extremely important for any new product and business because it is a plan that acts as a backup for any uncertainties that may occur in the arket and within a business.