Report: Marketing Strategy and Plan for Frucor Beverages Company

This report provides a comprehensive marketing strategy and plan for Frucor Beverages, focusing on the impact of marketing mix variations and environmental factors. It assesses the effectiveness of promotion, pricing, and distribution strategies, considering social, economic, demographic, cultural, ethnic, natural, political, legal, technological, and competitive influences. The analysis recommends premium pricing and digital promotion strategies, emphasizing the importance of high-quality products and customer loyalty. The plan also addresses the need for adapting to economic stability, demographic trends, and cultural preferences in the New Zealand market, ensuring compliance with legal and regulatory requirements to foster sustainable business growth. Desklib provides access to similar solved assignments and study tools for students.

Running head: MARKETING STRATEGY AND PLAN
Marketing Strategy and Plan
Name of the Student
Name of the University
Author’s Note

1
MARKETING STRATEGY AND PLAN
Task 1.1
Marketing Mix Variation Impact of Related Elements in the
Marketing Mix
Promotion – The company should focus
on their digital promotion for this
particular product. Digital advertising will
incorporate the social media marketing
using social networks. Online, SMS and
email marketing in digital marketing
process will be beneficial in the
technologically advanced target market.
Public relation on the other hand will be
maintained using review and feedback
system enabled in their social
networking and company web pages as
well as through email and SMS platforms
(Tiago & Veríssimo, 2014). Sales
promotions on the other hand will be
provided to the customers making bulk
purchases, which will increase the sales
of the company. Lastly, content
marketing is also recommended for
updating the customers about the
product being delivered. Traditional
marketing on the other hand will include
Increased promotion cost of the
product will require the company to
select premium pricing for the products
to increase generated revenue.
Moreover, the promotion will address
the greater section of society, which will
require them to make the product
available around the nation. Premium
pricing, will again require the company
to produce and deliver best quality
products to the customers for gaining
customer loyalty and value proposition
(Khan, 2014). Sales promotion on bulk
purchase will again requires the
company provide high-level production
for meeting the sales and demand of
the customers.
As a way of securing new customers in
the competitive industry, the firm can
decide to apply the policy of price
leadership. However, it is important to
note in this case that the operational

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MARKETING STRATEGY AND PLAN
banners and posters for making
customers aware of their presence.
cost may be higher due to the fact the
cost of production will be high.
Pricing – Pricing strategy required on
the other hand is premium pricing.
Companies using this strategy price their
product higher compared to their
competitors in the market to attract the
customers’ attention and position
themselves as high quality product
distributors (Pantelous & Passalidou,
2015).
Research indicates that premium pricing
can be challenging, as it requires a
company to hold high reputability in the
industry. In this case, it becomes
challenging and conflicting because the
companies who use normal pricing are
able to maximize sales and hence higher
revenue. It therefore implies that the
revenue is likely to low due to the fact
that company will be covering a small
target market. For Fruco to overcome
such circumstances, it will engage in
producing a cross cutting brands of
energy drinks to cover both the high end/
Premium pricing strategy selected for
the product will help the company
positioning themselves as high quality
product distributor. This will help
attracting the upper and middle class
population towards their brand.
Moreover, this will help them
distributing the product through
supermarket chains that are prevalent
around the nation (Leonidou, Katsikeas
& Morgan, 2013). However, premium
pricing requires the company to
develop high quality products to satisfy
the perceived value of the same. The
internal factors such as automation
labor costs will be lower. Additionally,
There will be an app that customers
could use to earn points on every
purchase, this will result in customer’s
interest with the product and increase
the sale.
On the other hand, the Frucor’s ability
to diversify by producing other brands

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MARKETING STRATEGY AND PLAN
premium market and the normal
consumers. In this way, the company is
able to maximize profits as well as
revenue.
that cater for the low-income class will
also help it in maximizing sales and
revenue. Basing on the fact that the
low income class is of a higher
percentage as compared to the high
and middle class, the company expects
to attain a higher market percentage if
and only if it considers covering all
classes of clients/ customers.
Task 1.2
Environmental
Factor
Impact on Marketing Mix
Promotion
Impact on Marketing Mix
Pricing
Social Social factors of the target
population involves residents
using digital media and are
connected with in in every
aspects of their lives. This
creates opportunity for digital
marketing for the product.
Considering the social
aspect, the population, the
company must critically
analyse the demographic
information of the
Social factors such as
lifestyle of the target
population encourages them
to consume energy drinks.
However, contemporary
harmful energy drinks
available restricts them from
using the products. However,
premium pricing along with
high quality will enable the
company to enjoy sales in

4
MARKETING STRATEGY AND PLAN
community, which will in turn
lead to production according
to the tastes, and preference
of the community. Some of
the social factors include the
ethicinicty, the age group,
level of education of the
population, disposable
income, among others. As
Frucor intends to cover all
markets right from the tender
age to an older age, the firm
should focus on generation
identification in the types of
advertisements conducted.
According to Stats.govt.nz
(2018) generations tend to
develop their own identity.
This theory becomes
important and applicable to
the firm
the market.
The premium pricing may
also b applied in the social
aspect in cases where
individuals prefer high social
economic class. This can be
reffered to as snob effect and
Veblen effect, where
individuals consume a
particular good in order to be
identified with high social
classes. Economically, snob
and veblin effect are potential
factors that determine pricing
of particular commodities in a
community.
Economic Economic stability in the
country enabled the
population to enjoy
technological advancement
Median income of $959 is
moderate, which reflects
moderate purchasing power
of the customers

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MARKETING STRATEGY AND PLAN
(archive.stats.govt.nz, 2018).
Moreover, a number of social
media and networking
channels are made available
to the population that will
potentially benefit the
company in promoting
through digital media.
(Stats.govt.nz, 2018). Hence,
premium pricing for energy
drinks for the population can
attain success in attracting
customers towards their
products.
Demographic Energy drink is consumable
for every age group.
However, high caffeine
content prescribes restriction
for the children. However,
the New Zealand
government has no such
restriction until date, which
enables the company to
promote for all age groups
(archive.stats.govt.nz, 2018).
It doesn’t matter whether the
customer is going a
professional or non-
professional job.
Premium pricing of the
products will make it
affordable to the middle to
high economic group of the
population. Moreover, the
affordability according to the
pricing strategy will restrict
not the earning population of
the country.
Demographical information
also determines the pricing
for example, the town people
are typically of high
socioeconomic class as
compared to the village
localities. This therefore
implies that the town pricing

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MARKETING STRATEGY AND PLAN
should considerably be
higher as compared to the
rural areas. Moreover, the
cost of operation in town
areas are as well higher
which calls for a balance
between expenses and
revenue collected.
Cultural Energy drink entered in the
nation decades ago and is
incorporated by the
population. This makes it
easy for the company to
promote their products in the
market. However, it is
important to note that the
products/ the drinks do not
culturally violate the believe
of the population. Otherwise,
a negative response may
arise. Fortunately in this
case, the population is
already familiar with energy
drinks as it was introduced
earlier. t
New Zealand culture neither
promotes nor restricts the
population from consuming
energy drink. However, it
gained popularity in recent
decades. The premium
pricing considering the
popularity is justified
according to the market
demand.

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MARKETING STRATEGY AND PLAN
Ethnic There is no ethnic substitute
products available in the
market. Hence, promotion of
the product is unlikely to face
ethnic threat. Unless for
cases of new competitors in
the it is expected that less
effort will be needed to get
the product dominate the
market. In other words,
formative adverts will
absolutely be effective.
There is no ethnic products
available in the market for
cheaper price, which enables
the company to enjoy
premium pricing in the
market.
Natural The population of New
Zealand is largely distributed
in the urban area, which
makes it easy for
implementing identified
promotional strategy to
address larger section of the
population
(Archive.stats.govt.nz, 2018).
Moreover, the product will be
promoted with
environmentally friendly
packaging.
Target population being
distributed in the urban areas
provides opportunity for the
company deploy premium
pricing considering the
affordability of the customers
(Archive.stats.govt.nz, 2018).

8
MARKETING STRATEGY AND PLAN
Political Political stability allows the
companies to conduct free
promotion and advertisement
around the nation. This
country has more regulation
to protect consumer interests
so that their interest keeps
becoming stronger. The
company will promote the
product as strictly non-
alcoholic drink. It is also vital
ascertain the possible source
of barriers in regard to the
government. The company
will for this reason follow all
the regulations set by the
government to avoid
inconviniences by the
government.
Political stability allows the
business to enjoy business
growth. However, the pricing
is to be in accordance with
the guideline laid in fair trade
and consumer guarantee act
(Legislation.govt.nz, 2018).
In addition, The politici
environment affect a lot in
beverage industry but it may
not affect us as we will
disclose all the ingredients
on the packaging and there
will be no concern about
health of people by the
government.
Legal Privacy law restricts
organizations to access
customer information without
their consent
(consumer.org.nz, 2018).
This means it will increase
Consumer guarantee act
1993 holds the customers
interest and forces the
companies to price their
products according to the
standards being delivered,

9
MARKETING STRATEGY AND PLAN
the promotional expenses as
they have to approach
individual customers in the
market for gaining their
concerns related to the
product. This shows that the
government have always
concern about the drinks that
people intake.
which makes it necessary to
deliver quality product
matching premium priced
products (Legislation.govt.nz,
2018).
Regulatory Fair trading act of the
country makes it necessary
for the company to promote
authentic information without
misleading customers with
exaggerated information
related to the product
benefits (Legislation.govt.nz,
2018).
Fair trading act in the country
forces the companies to
deliver standard products
and price them accordingly
for increasing competition in
the market. It makes it
necessary for Frucor
Beverages to produce
products matching market
standard and price them
accordingly
(Legislation.govt.nz, 2018).
Technology Promotion of the product
emphasizes on digital
advertisement, which
requires the nation to be
The use of modern
technology can act as tool for
promoting the product. This
may be in form of social

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MARKETING STRATEGY AND PLAN
technologically advanced to
receive the benefits. New
Zealand is categorized as
developed country and has
attained technological
advancement. Use of
internet, social media, and
networking is dominant in the
nation, which makes it useful
for the company in
developing their promotion
strategy basing on digital
promotion (Cameron,
Barrett, & Stewardson,
2016).
media advertisement. It is
typically true that in the
modern error, businesses are
using social media as a
powerful tool for promotion of
their business. Given the fact
that it covers a wide range of
auidience of all ages right
from the young to adult age.
Pricing has no as such
relation with the
technological advancement
of the country.
Competitive The competitors in the
market are also availing
digital media promotion,
which requires the company
to produce high quality
content for their promotion to
distinguish them from similar
brands (Baltes, 2015). The
firm can adapt the most
effective strategy in the in
Large number of competitors
in the contemporary New
Zealand market makes it
hard for new brands to enter
the market, which makes
them to reduce their price for
increasing sales. However,
the premium pricing will help
the company in positioning
themselves as high quality

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MARKETING STRATEGY AND PLAN
the industry depending on its
primary target customers.
The customers may be high-
end or normal customer. The
firm can decide to produce
for the luxury class of
customer or the normal usual
customers. However, it is
important to note that if the
firm specializes on premium
customers, it should
minimize its production to
avoid overflow of the market.
Otherwise, the law of
demand may intervene.
Among others,
producers that will help
creating brand value and
distinguishing them from the
rest. Fair trade act also
encourages competition in
the market
(Legislation.govt.nz, 2018).
Task 1.3
Marketing Objective Customer’s response to the
marketing mix in terms of their
impact on Frucor Beverages Ltd’s
marketing objectives
Sales – Increase 15% sales every year
in the target market for first five years
Sales promotion for bulk purchase will
drag customer towards the product
which is likely to supplement towards