Advertising and Promotion Project Essay Example
Advertising and Promotion Project Essay Example

Advertising and Promotion Project Essay Example

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  • Pages: 10 (2731 words)
  • Published: January 24, 2017
  • Type: Essay
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The Omani food industry is becoming a huge potential opportunity for new entrants. Global Food Solution LLC. is a recent established company that penetrated that market. The GFS aims to serve the citizens and expatriate within the Sultanate boarders the alternatives of high quality products that were neither offered nor available in the Omani food product industry. The company is concentrating on reaching every single house in Oman by offering products ranging from highly used products such as rice, chicken and water to beverages such as snacks and soft drinks.

In other words, GFS is a supplier of major food consumption product. The company currently has three main divisions which are the franchised restaurants division, the beverages division and the dry food division. Having a close look at the beverage division, the company

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is currently offering bottled water imported from Turkey and going to launch a wide range of fizzy and isotonic drinks very soon. This means that the Global Food Solution product offering is going to compete with major and multi-national companies and brands like Pepsi, Coca-Cola, Pocari Seat and Gatorade.

With such tough, expected though, competition, the company is aware of the need of a huge enormous introductory campaign for the product which called "100plus". "100plus" is the isotonic drink that will be introduced to the market. It is an isotonic, though fizzy, drink which was first introduced in the Singapore market by Fraser & Limited (F&N) in 1983. Nowadays, the drink is sold in four countries which are Malaysia, Singapore, Philippines and South Africa. It has four existing variations of flavors which are the original flavor, Tangy Tangerine,

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Lemon Lime and Active.

Review of the Marketing Plan: The isotonic drinks are new type of beverages which entered the industry recently compared to other beverages type such as the soft drink. The beverages industry is categorized as follows: soft drinks, energy drinks, isotonic drinks, malt drinks and indirectly juices and flavored water. In the isotonic category there are several leading products such as Pocari Sweat, Gatorade and Pocka sports water. Pocari Sweat is the dominant player in the Omani market. 100PLUS" is considered as a new entrant to the isotonic category market and aims to be one of the dominant players in the market. Looking more thoroughly at the competitive landscape, the level of competition of our product in the market will be fierce, since its intention is to lead the market. Moreover, this intention does not come out of the blue, since the company believes that the product has a competitive advantage which is the sense of carbonated water which is favorable to the Omani market.

Relating to the SWOT analysis, the strength of the "100PLUS" drink is the high quality of the product in terms of packaging, superior taste, sparkling water, and the variety of flavors unlike Pocari Sweat , which is the leading product in the market, which has only one flavor. Moreover, it’s well known reputation in other countries such as Malaysia where it holds 90% of the market share of Isotonic drinks, which is an indicator of success. The main weakness of the product is the poor brand awareness which the campaign intention is to overcome this problem.

The marketing objective of the company can be

summarized as follows: Short-Term objectives: Create brand awareness for "100PLUS" that will be launched in the first quarter. Gain a market share of 10% in the first year. Increase market share by 7% every year. Achieve a high level of customer satisfaction among 80% of target customers. Long-term objectives: Become the number one brand in the Omani market in 7 years. Build strong advertising awareness for "100PLUS" over the next 5 years. The target market for "100PLUS" is people who have an active lifestyle from both genders who want to enhance their performance in their daily life activities.

The estimated targeted age range is between 15 to 49 years old regardless of their income level. To target this segment of people the company is going to use a "Differentiation strategy" that will differentiate "100PLUS" from its competitors. The company also hopes to establish a well-known brand to their target. To summarize the marketing mix of the program, as it was mentioned earlier, for the product, it has a sparkle in its drink, four flavors and an attractive packaging. Moreover, for the pricing, the product will be priced using market-skimming pricing strategy and the price will be moderately low compared to competitors' offering.

The product will be distributed through all retailers including hypermarkets and small groceries. In addition, it will be also distributed to highly targeted areas such as gymnasiums. In the promotional element, most of the advertisement will be a combination of emotional and feature appeals with respect to high level of creativity. Analysis of Promotional Program Situation: Internal analysis Global Food Solution does not have a promotional department. Therefore, they do not

have the capability to develop and execute promotional programs. The company will hire an agency to develop the promotional campaign.

Moreover, the company developed a network between the agency (which is the group members in this case) and the company itself in order to work closely with the agency and provide the necessary information that is required to develop the program. Since it’s a new product to the market, it hasn’t developed any promotional program yet, as this IMC program is going to be the initiative program. External Analysis: To analyze the potential customers, the people who buy the product are those who are athlete or have an active lifestyle or whoever enjoys the taste.

People mainly will buy the product when they feel dehydrated or they want to quench their thirst. Customers will buy the product more in summer season as the weather is demanding more fluids to maintain the normal performance in the lifestyle. In addition, younger people will be expected to consume much more of the product due to their hectic lifestyle. The direct competitors are Pocari Sweat, Gatorade and Pocka sports water. The indirect competitors are energy drinks such as redbull, flavored water like Masafi and soft drinks such as Mountain Dew.

Although there are many direct and indirect competitors, there is no brand that has similar position to "100PLUS". That’s because "100PLUS" will be positioned between the carbonated drinks and the isotonic drinks. Analysis of the communication Process: "100PLUS" is considered as a low-involvement product where customers first learn about the product by exposing to different kinds of advertisements including word of mouth which results in cognative

restructure that will lead them to purchase the product.

After the trial or the purchase of the product consumers will develop a negative or positive attitude towards the product which is resulted during the experience of trying the product. If it is positive, repurchase of the product will mostly occur. Therefore, it is important to notice that it is necessary to include some features of the product to the ads but it is more important to emphasize on heavy repetitive strategy to ensure the repurchase. The main communication objective for the first year is to create awareness among 70% of the target customers.

Another objective is that having 35% of the target try the product and 10% of them regularly purchase the product and prefer it. By this way, it will be easy to build the image of the product. Communicating is vital for effectively delivering our intended message to the audience. For the source of delivering the message, we aim at putting more emphasis on non-personal entity since it is a low-involvement product, which is much suitable of encoding the message in the correct form.

Moreover, the whole idea of this communication process is o deliver the message. The product’s message is “Rehydrate you Life” this message is especially for those who love trying something new. Moreover, a variety of channels will be used to deliver the intended message. Some of the channels that we may use are televisions, newspapers, internet and radio, depending on the budget. In this part of the world, internet is used intensely by the youth especially the target of this product. However, there is a relationship

with the product and the hierarchy of needs which was developed by Maslow.

Beginning with the psychological need, as we mentioned above that “100 plus” quenches thirst and therefore can be placed in that position of Maslow’s hierarchy. Escalating above the pyramid, safety is also considered as a need for this isotonic drink since it protects a person from fainting due to loss of fluids in the body after a work-out. Therefore, such needs can push a person to purchasing our product with the help of some advertising. Budget Determination: As it was mentioned before, Global Food Solution is a new company , therefore, it hasn’t implement any promotional program and does not have any past budgeting experience.

Given the information earlier, judgmental approach in budgeting would be a true risk for the company because any underestimation of the budget would result in a poor introductory campaign for the product which may lead to failure. It is believed that build-up approach would be appropriate in this case, particularly objective and task method. As the communication objective were established earlier, it is difficult to determine which task will be required and the costs associated with each. However, the company is aware of that and has shown its capabilities and willingness to spend the amount that will lead to the achievement of the goals.

In other words, the company has not set any budget for the IMC program yet, but they asked the agency to provide them with the potential promotional mix and the Associate cost for each media channel and they will approve the best combination of channels subjectively. Media Strategy: It is

important to determine the schedule of the promotional mix in order to increase effectiveness. The best scheduling strategy for "100PLUS" is the pulsing strategy. The first couple of months the promotional effort should step up to ensure a heavy introduction for the product.

Then continuity should be maintained until summer season when the effort should be step up again due to increase in demand for refreshing drink in nature. Since the objective is to make 70% of the target customers aware of the product, reaching should be more important than frequency for the first couple of years. Moreover, unduplicated reach indicates potential new expose, therefore, the media strategy is designed to ensure that. Integrated Marketing Communication Program: Ambient: One of the media that we selected to advertise our product “100 PLUS” advertise our product is a poster on the sliding doors of a supermarket.

The objective of this ad is simply to build brand awareness, since every customer of a supermarket will be exposed by the ad before entering. The ad will be placed in 8 major stores, such Lulu hypermarket, and the period of this ad will be for 3 months. Regarding the budget of this ad, it costs around 500 O. R. per month per store to place this ad on two glassed sliding doors that will totally cost 12000 R. O for the 8 stores in three months. Moreover, the message of the advertisement is “Rehydrate your life”, which tells the target audience that this product is an ideal way to re-fill fluids in your body.

Another method that was used advertising in gymnasiums. In Oman, Horizon fitness center

recently opened a new branch and has a number of spaces for placing an ad. Therefore, we planned to add an advertisement on one of them. The best location of the ad is right in front of a treadmill. The reason why it is considered as an ideal location is because when a person working out can be exposed to the ad and will read-out the message “Dehydrated? then go grab a 100 PLUS from the gym store”. Another factor that would stimulate the person to buy the product is the fatigue or the loss of fluid.

After speaking to one of the managers in Horizon gym, we have managed to ask him the price of placing that ad and we set our budget for that, which is around 300 R. O per month per branch that will equal to a total of 10800 R. O for 3 months and eight branches. Newspapers: Advertising on a daily or weekly newspaper could be an ideal way of developing awareness of your product, especially in The Week newspaper or Al-Watan newspaper. Since “100 PLUS” is a new product to Oman and nobody knows the product yet, putting an ad on Al-Watan with a little information about the product is a good idea.

The advertisement will give some details on what is this new product all about. We keen to distribute flyers which are kept inside newspapers. Therefore, placing that ad will be a little costly but we set a high budget for that, which is around 15600 R. O yearly. In addition, this budget will allow distributing 25000 flyers in a day, where we will

be doing this twice a month for the first 6 months. This will ensure that the product will known across the country. Free Samples: Sampling is a very important method in order to introduce a new product.

The objectives behind using sampling in this program are to make the target market taste the product in the natural form. One more objective is to escalate the learning process so that the target market goes from the awareness stage to the trial stage simultaneously. Speaking about the budget for this method, we were informed that the mother company will support us with the samples that we aim to distribute. In addition, we allocated some more budgets to meet our communication objective which is making 35% of the target taste the product.

Therefore, 12000 R. O were allocated to provide 90000 units of the products to be distributed as samples. The samples will be distributed in different places such as football clubs, schools, universities, gymnasiums and on beaches. Social Networks: Social Networks is one of the advertising channels that cannot be missed in these days. In addition to its low cost, the massage is being passed very quickly. The objective behind using this channel is to cope with the trend of people using social networks, such as Facebook daily.

We will be developing a Facebook page, a twitter page and a special website for the product. In order to grab attention from the users of these pages, we will organize a mini-competition relating to our product. For example, having a competition of the best video of football skill, where the user are able to upload

a well made video showing off their skills of football. Regarding the budget, there is no cost for this except for the prizes of the competition. Six thousand Omani Rials will be allocated for this manner as they will be more than one competition.

Sponsorship: Effectiveness evaluation of promotional program: To avoid making big mistakes and risks, it is essential to evaluate the effectiveness of our advertisements that will be used. To begin with, we did not include any source factors in our advertisements, which eliminate a big part in the advertising cost. Most importantly, we aim to evaluating the messages that were conveyed by every approach. We will make this possible by performing posttesting, such as using Recall tests for Print ads that we will be putting on newspapers.

Also, we could calculating the response rate which will be an indication of how many customers have responded by purchasing the product or customers calling for more information about the product, specifically the wholesalers and retailers. Evaluating media strategies is an important part as well, where we will be evaluating the effectiveness of the advertisement that was placed in the gym. We will try to evaluate how fast the customer will respond to the ad by purchasing the product to satisfy their hunger need.

Concerning the budget decisions, it is not an easy task to know if the budgeting procedure that we planned for is an appropriate way or not. Therefore, this will be done after the program is implemented. The test for our advertisements, however, will be in various places depending where the ad is placed. For example, the fitness center

ad will be tested in the gym at a specific time. Another strategy that we also used as a promotional method is giving out free samples, these samples will be distributed in different places.

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