Comprehensive Marketing Strategy and Plan for Frucor Beverages

This report outlines a comprehensive marketing strategy and plan for Frucor Beverages Ltd, focusing on the New Zealand market. It analyzes the impact of variations in the marketing mix (promotion and pricing) and environmental factors (social, economic, demographic, cultural, ethnic, natural, political, legal, regulatory, technological, and competitive) on the company's marketing efforts. The report details how each environmental factor influences the promotion and pricing strategies, providing insights into how Frucor Beverages can optimize its approach. Furthermore, it examines customer responses to the marketing mix in relation to Frucor Beverages' marketing objectives, including sales increases, revenue growth, awareness, retail availability, and shaping customer attitudes towards healthy energy drinks. The analysis incorporates digital marketing strategies, premium pricing, and distribution tactics to achieve these objectives within the New Zealand context.

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

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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 banners and posters for
making customers aware of their presence.
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.
Pricing – Pricing strategy required on the Premium pricing strategy selected for the

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MARKETING STRATEGY AND PLAN
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).
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.
Task 1.2
Environmental Factor Impact on Marketing Mix
Promotion
Impact on Marketing Mix
Pricing
Social – this includes
the lifestyle, buying
behavior, health
consciousness, family
structure etc., which
alters the attitude,
opinion, and interest of
the target population
towards the product
The existence of large number
of energy drinks available in the
market communicates the high
consumption of products.
However, the health issues
caused by the product restricts
the full flow of the product. It
requires the company
promoting health benefits 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

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MARKETING STRATEGY AND PLAN
offered. product using digital marketing,
which will attract greater
number of customers. This is
due to excessive use of social
networking and internet that
will help reaching greater
section of the target population.
enable the company to enjoy
sales in the market.
Economic – Economic
factor on the other hand
is economic stability of
the nation as well as
the average income of
the population that
regulates the
purchasing power of
the population.
Businesses have greater
chance of attaining
growth in a stable
economy with greater
purchasing power as
the population then will
be able to afford the
products and services
offered.
Economic stability in the
country enabled the population
to enjoy technological
advancement
(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.
Median income of $959 is
moderate, which reflects
moderate purchasing power of
the customers (Stats.govt.nz,
2018). Hence, premium
pricing for energy drinks for
the population can attain
success in attracting
customers towards their
products.

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MARKETING STRATEGY AND PLAN
Demographic – This
factor studies the age,
sex, education level
etc., and its impact on
the business.
Demographic factors
such as age and sex
largely alters the
external environment
for the products and
services significantly
modifying the market
demand for the
products.
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).
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
tot the earning population of
the country.
Cultural – This
communicates the
culture of the target
population and its
acceptance of the
product or service
offered. This also helps
understanding cultural
need for the product in
the target market.
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.
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.
Ethnic – This factor is There is no ethnic substitute There is no indigenous

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MARKETING STRATEGY AND PLAN
closely related to the
cultural factor. This
communicates the
originality of the
population. In other
words, ethnic factor in
this sense are the
indigenous customs
and norms that restricts
or encourage use of the
product or even the
indigenous substitute of
the product available to
the population.
products available in the
market. Moreover, the product
is already been introduced in
the target population. Hence,
promotion of the product is
unlikely to face ethnic threat.
substitute of the products
available in the market for
cheaper price, which enables
the company to enjoy
premium pricing in the
market.
Natural – The
environmental or
natural factors
encourages or
discourages business
operation in the
particular target
market. This refers to
the natural barriers that
may discourage
distribution of the
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).
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).

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MARKETING STRATEGY AND PLAN
products in the market.
Political – This is the
factors such as tax
regulations, political
stability etc. that alters
the external
environment of the
business in particular
country. This factor is
largely overlapping
with the legal and
regulatory factors as
shift in political factors
might bring change in
the legal and regulatory
factors of the country
as well.
Political stability allows the
companies to conduct free
promotion and advertisement
around the nation.
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).
Legal – Legal factors
are the law enforced by
the government of the
target market for
regulating the business
operation. This is to
ensure the value
received by the
Privacy law restricts
organizations to access
customer information without
their consent (consumer.org.nz,
2018). This means it will
increase the promotional
expenses, as they have to
approach individual customers
Consumer guarantee act 1993
holds the customers interest
and forces the companies to
price their products according
to the standards being
delivered, which makes it
necessary to deliver quality
product matching premium

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MARKETING STRATEGY AND PLAN
customers on
purchasing the products
and services.
in the market for gaining their
concerns related to the product.
priced products
(Legislation.govt.nz, 2018).
Regulatory –
Regulatory factors in
external environment
analysis are the
legislative factors that
regulates the business
operations in the
particular market. This
communicates the
regulations need to be
followed on product or
service deliverance.
This also
communicates the
expected standard for
the products and
services offered by the
companies.
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 – This is
the study of
technological
advancement attained
Promotion of the product
emphasizes on digital
advertisement, which requires
the nation to be technologically
Pricing has no as such relation
with the technological
advancement of the country.

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MARKETING STRATEGY AND PLAN
by the target
population. This further
helps in determining
the technological
incorporation required
by the company to
deliver value to their
customers.
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).
Competitive – This
factor helps
understanding the
competition the product
or service is facing in
the target market. This
helps analyzing
position of the major
competitors in the
market and their
approach in addressing
the target population.
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).
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
producers that will help
creating brand value and
distinguishing them from the

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MARKETING STRATEGY AND PLAN
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 the sales goal
of the company.
Revenue – Increase revenue by 10% by July
2018 using extensive advertisement and
digital media promotion campaign
The target customer segment of the market
are largely involved in social media network
and internet, which will help
communicating the energy drink to the
customers. As mentioned earlier, the
company promotes healthy energy drinks
for the customers. Focusing on the health of
the customers will help gaining positive
response in the customer segment due to
increase demand of healthy energy drinks
that minimize health hazards. Hence, this
will help the company stepping towards the

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MARKETING STRATEGY AND PLAN
objective of increased revenue.
Awareness – Create 100% awareness
among the target customers
The digital promotional strategy, supported
with banner and poster advertisement
proposed can successfully address the target
population and can gain 100% attention by
the end of five year. The banner
advertisement will draw the attention of the
customer while they are out for work
(Karunanithy & Sivesan, 2013). The digital
promotion on the other hand is likely to gain
attention due to high use of social
networking, which will be primary
promotion platform.
Retail – Attain 100% availability in the
supermarkets around the country
Distribution strategy in the marketing mix
focuses on the supermarket, which reduces
the pressure of distribution in the small
retail stores (Qiang et al, 2013). Moreover,
the target customers reflects trends of
supermarket purchasing that will help
increasing the sales.
Attitude – Provide healthy energy drinks to
their customers reducing the health damages
Energy drinks in contemporary market
threatening the health of the consumers.
Promotion strategy of the company will
help grabbing the attention of the target
market due to the increased demand of

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MARKETING STRATEGY AND PLAN
energy drinks.
Organizational Goal – Become one of the
dominant brand in the market in five years
Plan of delivering high quality healthy
product to the target customers in the
market will help proposing value and earn
customer loyalty to the brand, which in turn
will help in dominating the target market
(Akdeniz, Calantone & Voorhees, 2013).
Task 1.4
Marketing Objectives Competitor’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
Combination of the pricing strategy and
product quality proposed will help the
company to shift customers’ attention to the
quality product for avoiding health issues,
which will cause into fall of market share
for the contemporary market leaders
(Anselmsson, Vestman Bondesson &
Johansson, 2014; Pomeranz, Munsell &
Harris, 2013).
Revenue – Increase revenue by 10% by July
2018 using extensive advertisement and
Distribution strategy proposed for the
company will considerably reduce supply