Segmentation, Targeting and Marketing Mix for a New Energy Drink

Craft a marketing plan for a new energy drink with segmentation, targeting and marketing mix. Learn how to target customers for selected products and develop a coherent marketing mix for a new product or service.

Running head: SEGMENTATION, TARGETING AND MARKETING MIX
Segmentation, Targeting and Marketing mix
[A Marketing Plan for an Energy Drink]
Name of the student:
Name of the university:
Author note:

1SEGMENTATION, TARGETING AND MARKETING MIX
Table of Contents
Purpose............................................................................................................................................3
Task 1...............................................................................................................................................3
1.0 Explain how and why groups of customers are targeted for selected products.........................3
1.1 Consumer markets (importance of identifying who has influence over purchasing
decisions, segmentation criteria for consumer markets)..............................................................3
1.2 Reasons for choice of target group-accessibility, profitability, etc.......................................6
1.3 Business markets (identifying customers in business to business markets, segmentation
criteria for business to business markets)....................................................................................7
1.4 Discuss the benefits for different members of the DMU; Decision Making Unit...............10
Task 2.............................................................................................................................................11
2.0 Develop a coherent marketing mix for a new product or service............................................11
2.1 Product discussion...............................................................................................................11
2.2 Pricing strategy....................................................................................................................12
2.3 Promotional mix..................................................................................................................13
2.4 Place.....................................................................................................................................14
Task 3.............................................................................................................................................14
3.0 Develop a coherent marketing mix that is targeted at a defined group of potential customers
.......................................................................................................................................................15
3.1 Marketing mix.....................................................................................................................15

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Product.......................................................................................................................................15
Price...........................................................................................................................................15
Place...........................................................................................................................................16
Promotion..................................................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18

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Purpose
The task is purposefully aimed at making or crafting a marketing plan for a new product
for the case study company “Breeze Company”. The case study company is already into making
a variety of soft drinks for consumers; however, the needs to expand to a wider market have
fuelled the company with thoughts of making a new soft drink. The new soft drinks will be a
‘soft drink with packet’. It contains flavours powder and also gets dissolved easily into the water.
The drink can be made instantly. The selection is being made considering that customers are now
growing with knowledge about the product they consume. Most of them chose products only that
are good for health and are tasty as well.
Task 1
1.0 Explain how and why groups of customers are targeted for selected products
1.1 Consumer markets (importance of identifying who has influence over purchasing
decisions, segmentation criteria for consumer markets)
There are types of segmentation base which is used to target a particular group of
customers. Target customers for this study will be both customers and the business. However,
this section of the study is based on customers only. Following are some of the segmentation
bases (Dolnicar et al. 2014):
Demographic: In this kind if segmentation, segmentation is done based on age groups,
genders, education, income, family size, socio-economic status and more.
Geographic: This helps to design the segmentation based on locations, regions, cities and
more.

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Psychographics: This takes the help from lifestyle and social characteristics. Lifestyle
and the characteristic will have the influence of demographic factors such as age groups,
genders, education, income and others.
Behavioural: These customers are selective in nature due to their various behaviours.
Their behaviours do really impact their buying nature. For example, there are customers who
only love buying the energy drinks.
Influence over purchasing decisions
The customers of soft drinks can generally be divided into three categories based on their
age-group such as the follows:
 Millennials
 Baby Boomers
 Boomers
The range of customers has number of reasons behind their decision making on soft drinks. One
of the reasons is clients which admire or encourage customers to purchase the product.
Customers generally have their trust on few clients like the supermarket brands. If their favourite
brand is selling a particular product, those loyal customers are very certain to react to it. Other
customers purchasing the soft drinks may also influence those who are the observer. There may
be just the few like such; however, it is indeed possible. Few purchases happen when others
consuming the soft drinks are closely observed. For example, someone is having a soft drink at a
small shop; others visiting the same shop for other reason may also feel like having it. Friends
do also influence the decision making on purchase. If one or few of the members in a group of
friends are consuming the soft drinks, others who had no such intention to consume will certainly

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make the decision to purchase. On a similar note, if one or few of the family members are
consuming the soft drinks, they will certainly ask the others to have it. Those who initially had
no intention to have the soft drinks will certainly respond to the call. People who are admired by
others will also encourage the decision making. For example, if a celebrity is popular among a
group of people, the group of people will certainly try to follow the possible habits of their
beloved celebrity (Anojan and Subaskaran 2015).
Segmentation variable of soft drink for B2C
Variable Example
Demographic education, income, age groups, genders, family size, socio-
economic status etc.
Psychographic lifestyle and social characteristics which are influenced by
genders, age groups, education, income
Geographic locations, cities, regions etc.
Behavioural Passion for energy drink or flavoured drink
Segmentation base for the chosen product
The chosen ‘soft drink with packet’ will aim the behavioural mode of market
segmentation. In this context, customers who spend on valuable things or make it just for taste
will be targeted. This is because customers nowadays are more convergent in terms of menu,
ingredients, attributes and experience. Consumers have actually become mindful in seeking for
resources that teach them about the benefits and disadvantages of a particular product or service
(Forbes.com 2018).

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1.2 Reasons for choice of target group-accessibility, profitability, etc.
Accessibility: These customers are easy to reach. It just requires a good promotion of the
product, so that, the message in regards to the product is conveyed to a wider customer base. In
fact, number of customers with their concern for valuable foods and drinks are rising (Gilani et
al. 2014).
Profitability: As mentioned earlier, the target segment of the market is growing rapidly
at the global level. Customers of modern times now have a variety of resources in the form of
internet from where they can access the product related articles. Such customers are very
selective with the kind of drinks that they prefer to have (Weinstein 2014).
Lack of solid counter: The chosen market segment already has number of soft drink
brands operating into; however, most have them have failed to make an impact on both
customers and the health experts. Examples include such as ‘Red Bull’ which is yet to be
identified as a true health drink by the different health institutions in the world (Manzo and Desk
2016).
Competency in the chosen firm: The chosen case study firm is expected to deliver the
results in the selected market segment as the company is already into the making of varieties of
soft-drinks. The case company is aware of the ingredients and the taste which is necessary to
influence the buying behaviour of customers.
Compatibility with the firm’s mission & objectives: The chosen product appears as
compatible with the mission and objectives of the chosen firm. The firm has its mission to
expand its market reach and objectives set as reaching to wider customers with a new product.
The firm just needs a robust marketing plan which it can use to deliver the commitments.

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Target market of soft drink for B2C
Variable Reason
Adolescents They are the potential customers
Millennials Soft drink consumption is a culture to them
Baby Boomers They also like to consume the soft drinks especially
the energy drinks
1.3 Business markets (identifying customers in business to business markets, segmentation
criteria for business to business markets)
Business market is that where the company in concern works in association with
numerous business bodies to supply the chosen product to the target market. Examples of
business bodies include but are not limited to such as manufacturers in case manufacturing is
outsourced, supermarkets, firms supplying the drink services, cafes & restaurants, retailers,
franchises, independent stores and others (McCrory et al. 2017).
Segmentation criteria
Reaching to the effective groups is the biggest challenge in segmentation. In a likewise
manner, the case study firm should identify the most effective business partners for the chosen
product. The chosen product is an energy drink; therefore, the list of business clients for the case
company will be as follows (Sarti, Darnall and Testa 2018):
 Manufacturers
 Supermarkets
 Chain and independent stores

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 Franchises
 Cafes
 Restaurants
Target market of soft drink for B2B
Variable Reason
Supermarket stores Such stores consider a huge stock of private label
brands
Grocery stores Private label brands are one of the inventories at
such stores
Retail shops They keep soft drinks along with other varieties of
different products
Soft drinks stores They only keep the soft drinks along with snacks
Cafes & restaurants Soft drinks are potentially the part of such places
Type of Criteria
There are following types of criteria which are normally followed for segmentation in the
business markets (Anderson and Xie 2014):
Demographic
This is one of the kinds of segmentation which is influenced by the size of company and
the products made. For the case study company, popular supermarkets in Myanmar will be
selected. Hence, the segmentation will follow the priorities set by supermarkets.

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Behaviour
In this type of criteria, segmentation is done based on three variables such as price
sensitive, quality sensitive and delivery sensitive. For the case study firm, quality sensitive
business partners will be preferred.
Geographic
In this type of criteria, two variables such as language and geography are considered. For
the chosen product, geographical locations will be preferred. The proposed new product will be
initially introduced to people in Myanmar. It all depends on the outcomes whether the company
prefer to switch to other countries as well with the product.
Psychographic
In B2B market segment, clients that sell soft drinks as one of their products will be
targeted. Examples include such as supermarket stores, grocery & other item stores, retail shops
and much others.
Segmentation variable of soft drink for B2B
Variable Example
Demographic Companies that sell soft drinks will be preferred such as
supermarket stores, grocery stores, cafes, restaurants, retail
shops and others
Psychographic Supermarket stores, grocery & other item stores, retail
shops etc.
Behaviour Quality sensitive business partners

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Geographic Initially for Myanmar, afterwards the other parts of world
1.4 Discuss the benefits for different members of the DMU; Decision Making Unit
Decision Making Unit (DMU) is a team of individuals who are responsible for consumer
decision making. The DMU may include members such as the buyers, the initiators, the deciders,
the gatekeepers, the users and the influencers. Companies do really make design huge budgeting
for B2B promotions. Benefits of the different members will be as follows (Monroe, Rikala and
Somervuori 2015):
Buyers: They are an integral asset to any business without which companies and the B2B
partners will perish. Their association with the business is highly required for a successful and a
profitable business.
Initiators: They act as the motivators for customers who make spot decisions for the
purchase.
Gatekeepers: They can make customers happy with their customer service. Such gestures
do really make an impact and prepares the platform for purchase.
Deciders: This may include the management and all who make decisions on different
things like inventories, infrastructure of the shopping place, the customer service standard and
more. Inventories, infrastructure and the customer service do really make the difference in
terms of competency and quality as well.
Influencers: They are both physically apparent to customers and working behind the
stage. Apparent influencers use their selling and customer service skills to make the purchase to

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happen. Those working at the behind stage works on the different things such as the product
layout. Product layout and more others do really enhance the shopping experience and thereby,
contributes to the sales.
Task 2
2.0 Develop a coherent marketing mix for a new product or service
Objectives
 To change the reputation of the case company towards a more responsible attitude for
both local and global market
 To educate the target market or the customers about the ingredients and the benefits of
the product
 To boost sales by storming the instant soft drink market
2.1 Product discussion
The new product which is a soft drink with packet is aimed at appealing the fitness/sports
audience. The beverage container will be given a sporty look and be made from the sustainably
resourced materials & the production methods. The packaging is not the new for the target
market; however, the contents will really be the points of attraction.
Features Benefits
 Sporty design
 Bottle will not just display the brand
name but will also highlight with
specified message on being pasted on it
 The brands’ health connotations
 For a better fitness and health
 Instant drink to satisfy the soul
 Bottles will be both sustainable and

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 Bottles will be given the attractive
designs
eco-friendly
 Customer will enjoy the cheaper
products for a long time
Table 1: Features & Benefits of the Product
(Source: created by author)
2.2 Pricing strategy
Figure 1: Pricing Strategy
(Source: Weisstein, Kukar-Kinney and Monroe 2016)
As suggested in the picture, pricing in the entire life-cycle of the product will be the
maximum at its launch. However, this does not mean a higher-pricing than companies that are

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already operating with the similar concept. The pricing will be adjusted and be brought down to
its minimum at the end of the product’s life cycle. Therefore, market shares will be higher than
the ones in the later stage of the product launch. Penetration of market will be done by setting
lower prices at the launch. Profit margin will be higher when the penetration is at its height.
2.3 Promotional mix
Advertising: Advertisement can be made through various ways like TV adverts and
Magazine/Newspaper. The benefits of using TV adverts are such as viewable to wider audience,
popular soaps can help to promote the advert faster and others. TV adverts must be made to look
authentic, so that, purpose of the product is conveyed. Magazine/Newspaper can help to target
the specific readers. Considering that readers are highly receptive by their nature, the mouth-of-
publicity will be better. However, consumers have understood that such magazines are full of
adverts. Hence, they may simply be ignorant. Therefore, the contents must be made very genuine
and viable as well. Readers must feel that this is not like other trash adverts (Oladepo and
Abimbola 2015).
PromotionMix

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Personal Selling: The sales team must remain in regular communication with the current
distribution channels. Independent stores and the other eligible bodies should be rewarded with
cooling fridges or even the vending unit for liquid dispensing. Eligibility will be set based upon
the number of units being sold to consumers. Additionally, great performing retailers must also
be rewarded with free tickets to popular events like football (Sagala et al. 2014).
Direct Marketing: Direct marketing can be done directly through the online resources. The
outcomes are measurable as well with several strategies as covered in the sales promotion plan
(Nour and Almahirah 2014).
Sales Promotion: This can be one in numerous of effective ways. This can be done both online
and offline as well. The types of sales promotion strategies include but not limited to like loyalty
rewards program, on-line couponing, interactive promotion games on the internet, contests and
others (Maina and Afande 2015).
2.4 Place
Places will include many such as supermarket stores, high-street malls, independent
stores, franchising stores and the others.
Task 3
3.0 Develop a coherent marketing mix that is targeted at a defined group of potential
customers
3.1 Marketing mix
Product

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As suggested in the aforesaid section, products will include a soft drink with packet
offered in the form of sustainable containers. Containers will be made sporty in look with energy
specific message on it. Attractive bottles with health specific messages on it are widely accepted
by customers who are largely concerned with healthy foods and drinks. Products will come in
three different sizes such as 250ml, 355ml and 473ml cans. These sizes are already popular in
market. Moreover, customers will have less hesitancy to purchase the new product from the case
company.
Price
Product Price
1. 250ml $0.5
2. 355ml $0.7
3. 473ml $0.9
As indicated in the table, three different cans will be introduced to customers in Myanmar. The
sizes are as per the standard of bottle sizes already prevalent in the global market. The prices are
competitive as well. Customers will certainly have reasons to react to the offers. There will be
notable changes in the prices as a response to the market competition.
Place
Independent stores are one of the very potential places which are easily accessible to
customers. Hence, customers will get to know about the product in a very little span of time.
Cafes and restaurants will also be chosen as the sales point. These are also the potential places as
customers throng to such places in weekdays and also during the weekends. Customers

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nowadays do not just go to cafes & restaurants to have meal and snacks. They rather spend few
moments with their friends, relatives and the dear ones. This is why there will be fair bit of
chances for customers trying the different tastes in the form of foods, snacks and drinks. Top
supermarkets will also be a recommended place for sales. In supermarkets, the proposed product
will be sold as a private label brand. Private label brands are the potential crowd-pullers as
customers do really react to it. This is because such products are available to customers at the
competitive prices and also in high qualities (Mohanraj and Kalaivani 2016). This is the reason
why supermarkets will be the potential place to sell the proposed product.
Promotion
Promotion will be made in numerous ways such as through the TV adverts. TV adverts
are one of the most popular ways to interact to customers. Adverts will target the popular daily
soaps as this will help to reach to a wider customer base. In addition, adverts will also be made
through magazines. Magazines are least trusted by readers as they have learn that magazine are
full of advertisements. However, this is another very scoring area and can be used to reach to a
wider customer base. This is indeed necessary to design the contents in such a way that it looks
genuine and authentic to customers (Familmaleki, Aghighi and Hamidi 2015).
Personal selling will also be used. Retailers with high sales will be rewarded with cooling
fridges and also the liquid dispensing machines. This is another very effective and quite a
popular way of promotion especially for soft drinks’ makers. Sales promotion will also be done
through different promotional platform such as loyalty rewards program, price deal, on-line
couponing and contests. On-line couponing and contests is an interesting & an engaging way of

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promotion for the internet users. This will be a very good platform to interact with numerous
people on the internet and accomplishing the sales also.
Conclusion
In summary, this can be said that the proposed product will be a good idea to enter the
market. The marketing plan as presented in the paper may certainly produce some potential
outcomes if deployed appropriately. Very few brands do produce drinks that are good at both
taste and health. Most of them have failed to impress the health institutions and were not
identified as highly beneficial for health. However, the proposed new product may certainly
deliver on that part if it fulfils its objectives and uses the effective segmentation, targeting and
mixing of market.

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