Detailed Marketing Plan for SIMDI Group's Beverage Division

This marketing plan analyzes the SIMDI Group, focusing on its beverage division (SIMDI Bev) in the Maldives. It includes an executive summary, situation analysis (PESTLE and SWOT), marketing strategy (segmentation, targeting, positioning, and marketing mix), budget, and implementation plan. The report assesses the external and internal environments, identifies market trends, and projects potential growth. Financial analysis involves break-even analysis and sales forecasts. The implementation plan outlines action steps to achieve organizational goals. The plan emphasizes the strong brand image of SIMDI Bev and recommends the use of integrative processes for monitoring and control. The report covers topics such as political and economic factors in Maldives, social considerations related to the tourism industry, and the technological aspects of brewing and distribution. It also addresses the challenges of alcohol sales in a predominantly Islamic culture and the importance of adapting to changing consumer preferences. The report also provides segmentation based on demographics, psychographics, geographic location and behavior, and details targeting and positioning strategies. The marketing mix components of product, price, place, and promotion are comprehensively discussed, providing a thorough overview of SIMDI Bev's marketing approach.

Running head: MARKETING MANAGEMENT
Marketing management
Name of the student
Name of the organization
Author note

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Executive Summary
This is report is the marketing plan of the organization named Simdi Group, which consist of list
of companies under the same brand name. The marketing plan will include the macro and the
microanalysis of the environment of Maldives, which analyze the external, and the internal
environment of the organization. The next part of the report will consist of the marketing
strategy, which depicts the segmentation, targeting and the positioning of Simdi Group. The
market trends and the market needs will have to be analyzed to identify the potential growth of
the organization. The report will identify the risk and the success factors of the organization. The
financial analysis will include the use of break-even analysis, budget and sales forecast of the
organization. The implementation plan will consist of the action plan that will used for fulfilling
the goals and the objectives of the organization. Thus, from the above marketing plan it can be
conclude that SIMDI Bev has the opportunity of utilizing the market situations in heir favour.
Moreover, the image of the brand is strong so this will push the new products they are launching
in the market. However, the organization should use integrative processes to monitor and control
the processes in the organization.

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Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Situation analysis.............................................................................................................................4
Marketing strategy...........................................................................................................................7
Marketing budget...........................................................................................................................10
Implementation..............................................................................................................................11
Conclusion.....................................................................................................................................11
Reference.......................................................................................................................................12

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Introduction
This is report is the marketing plan of the organization named Simdi Group, which
consist of list of companies under the same brand name. The marketing plan will include the
macro and the microanalysis of the environment of Maldives, which analyze the external, and the
internal environment of the organization. The next part of the report will consist of the marketing
strategy, which depicts the segmentation, targeting and the positioning of Simdi Group. The
market trends and the market needs will have to be analyzed to identify the potential growth of
the organization. The report will identify the risk and the success factors of the organization. The
financial analysis will include the use of break-even analysis, budget and sales forecast of the
organization. The implementation plan will consist of the action plan that will used for fulfilling
the goals and the objectives of the organization. The performance of the strategies and the
product will have to be monitored for understanding the success of the product and the strategy
that will be implemented. Simdi Group is launching a new product in the beverage market as
they think that they need to diversify their product line in order to maintain their competitive
advantage in Maldives. The four main business units of SIMDI have been amalgamated under
the same brand name SIMDI. However, in this scenario the marketing plan will be made for the
SIMDI Bev, which provides alcoholic beverages to the hospitality industry. However, SIMDI
Bev is trying to expand their beer and cider product line as it only consist of one product in this
segment. The organization will aim to expand their product line by including new products in
this segment.

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Background
SIMDI Group started it business in the year of 1972 in order to fulfil the market need of
supplying products to the resorts in Maldives. The product they supplied varied in range starting
from spirits and wine to laundry and kitchen equipments. The organization aimed at providing
support to the hospitality industry in the department of distribution and supply of alcoholic
beverages. SIMDI Bev is the name of the organization that was formed to deal with this market
and is one of the listed companies under the same brand name. Simdi Bev have grown in the past
decades and has been able to capture the market and emerged as one of the global leaders in he
alcoholic beverage industry (Simdi Beverages, 2017). The next company that was launched by
the Simdi group includes the SIMDI Resu, which is catering to the market need of the
hospitality industry by providing them with resort ware. The company has been able to gain good
reputation in the market due to the quality and the quantity if the product they offer. There are
various companies, which fall under the same group, belong to the different sectors, and cater to
the different type of needs of the consumers. The other companies under Simdi Group are
SIMDI Tech, SIMDI CPD and SIMDI Company. SIMDI Group consist of two subsidiaries
which are IMDC and Smart Design Pvt. Ltd (History - Simdi Group, 2017).
Situation analysis
The situation analysis will include the macro and the microenvironment analysis of
SIMDI Bev. The macro environment analysis will consist of the Pestle analysis and the micro
environment analysis will consist of the SWOT analysis.
PESTLE
Political

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The political environment of the country is not appropriate for the business environment.
However, as the organization is based in Maldives, it will not affect SIMDI Bev. There have
been no improvement in the business model environment in the country and the use of the
various policies has been uneven. There is corruption in the government, which will be causing
problems for the organization as there has been cases of embezzlement in the country
(Scheyvens, 2012). Maldives have weak property laws as most of the lands are owned by the
government and there have been various allegations on the judiciary system, which suggests
abuse of power in multiple occasions. As there is lack of stability in the political environment of
Maldives the organization may face issues due to the changes in the taxes posed by the
government. However, even if the organization is prone to these issues, they have no control
over it.
Economic
The economy of Maldives is dependent on the tourism business and consists of 28% of
the total GDP. Fishing is one of the main occupation of the population in the country and the
government has made efforts to promote the fisheries industry (Rasheed, 2015). However,
manufacturing and agriculture industry is still lagging behind due to the shortage in the
availability of the land. SIMDI Bev belongs to the hospitality industry and they are providing
support to all the resorts. Thus, the economy of the country could provide the organization with
favourable conditions as they belong to the most developed sector in the country (Scheyvens,
2012).
Social

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The social environment of Maldives can be defined as a place where Islam is the official
religion and open practice of other forms of religion is prohibited n the country. However, as the
country is dependent on tourism industry, selling of alcoholic beverages is quite a social taboo
for the society as it is being dominated by Islamic culture. Moreover, the consumers that are
health conscious prefer drinking light beer than the strong beer so it could be a problem for the
organization (Abdullah, 2017). Moreover, there is restrictions in using internet as it is against
their faith so the use of online media for promotion will be a problem in this context. However,
the country being a premium tourist location the average age of the population is 26years, which
means that the organization will be able to target their desire consumers.
Technological
The advancement in the field of technology is slow and the government spends huge
amount of money on those sectors, which are proving the country with GDP. However, as
SIMDI Bev is linked to the tourism industry so this sector is technology. Moreover, for brewing
industry technology is one of the most significant factors for developing quality product and
distributing it to its consumers (Ali, Cullen & Toland, 2015). Thus, the organization will not face
any issues regarding the production of beer and cider.
SWOT analysis
Strength Weakness
 Strong financial performance due to
tourism
 Diversified in other beverage products
 In comparison to other competitors, a
much smaller player in the market
 Declining profitability

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 Expanding market share
 Strong base
 Increasing foreign appeal
 Product recalls on multiple occasions
 Limited liquidity position
 No huge fan following on either
Facebook or Twitter
 No brand portfolio diversification in
this segment
 Revenue dependent on single product
 No local support
Opportunity Threat
 Focus of strategies on reducing costs
 Product expansion
 Growing craft beer market
 Price competitiveness
 Offers other forms of beverages too
 Can sponsor local sports events or
teams for advertising products
 Altering customers preferences
 Consolidation in the beer industry
 Limitations on advertising channels
 Stringent government and religious
regulations
 Taste of the beer might not be suitable
for some
 Low beer consumption
(Source: as created by author)
Marketing strategy
Segmentation

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The segmentation that will be used is the demographic segmentation, psychographic
segmentation, geographic segmentation and behavioural segmentation. Demographic
segmentation will include age, gender and income, as the median age of population in Maldives
is 26 so the youth will targeted as the potential consumers (Schlegelmilch, 2016). This segment
will include the light and strong beers. The next segment is based on the geographic location of
the people; Maldives is a tourist spot so people from different parts of world come so depending
upon that the organization will extend their product line that will consist of white ales, flavoured
beers, light beers and draught beers. The next segment is based on the social class of the
population and it suggests that as the majority of the consumers have high disposable income.
Thus, this segment will consist of the premium segment and will serve premium beers to its
consumers. The last segment will consist of the consumers who have different behavioural
needs. Thus, it will consist of both light and strong beers and ciders.
Targeting
The target market of SIMDI Bev will include the different range of consumers. The
consumers at the national level will include the youth whose age will range from 18 to 30. The
next sets of target consumers for the organization are the relatively aged people who prefer light
beers that are good for health (Pyo, 2015). The consumers at the international level will include
the tourists who will vary from youth to family personals.
Positioning
The beers are positioned according to three factors and they are consumers, management
and regions. When we consider positioning by consumers, taste and consumption time has to be
considered. The beer is positioned as smooth, tasty and healthy for the consumers in the market.

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The next set of positioning is done according to the management. The value and traditions of the
consumers are important which makes them choose the type of beer they consume. This means
that people coming from different countries will prefer to have different kinds of beer depending
upon their preferences (Bickhoff, Hollensen & Opresnik, 2014). The positioning of the product
depending upon the range of the beers prevalent in that region so it is necessary to understand the
needs of the various regions. Thus, the overall positioning will state that taste, effectiveness and
availability in different forms.
Marketing mix
Product
The new product will vary in range as it consists of white Ales, draught, light beer, millet
and strong beer. SIMDI Bev will create a n extended product line so that they can cater to
different market segments (Khan, 2014). The products will be brewed specially to ensure good
quality and the organization will be focusing on the packaging and the look of the bottles.
Price
There are different segment so the prices for the different segment of the product will
vary depending on the consumer type. The majority of the products in the product line will be
priced reasonably, while there are few segments that will cater to the premium consumers so will
be priced higher (Dadzie et al., 2017).
Place
The organization is providing support to the hospitality industry by supplying them with
alcoholic beverages (Dadzie et al., 2017). The organization is going to use their well-established

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distribution channel for supplying the new products to the various resorts, hotels, bars and
restaurant in the country.
Promotion
The organization will be more focused on the convention form of media is the
technological advancement of the country is slow. However, as the cost of using online media is
less than traditional form of media ((Khan, 2014)). Thus, the organization will use print media,
advertisements and test marketing to grab the attention of the consumers in the market. ‘
Marketing objective
 To promote the new product line among the target consumers
 To penetrate further into the market
 To improve the awareness of the brand
Marketing budget
SALES FORECAST
Sales YEAR 1 YEAR 2 YEAR 3
White ale $643,542 $755,673 $850,765
Premium beer $328,745 $530,746 $700,211
Millet $432,460 $606,700 $743,167
Draught $232,460 $387,000 $497,682
TOTAL SALES $1,637,207 $2,280,119 $2,791,825

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(Source: As created by author)
Direct Cost of Sales Year 1 Year 2 Year 3
White ale $279,439 $410,383 $555,149
Premium beer $345,551 $425,106 $364,118
Millet $165,985 $271,584 $482,174
Draught $155,985 $265,985 $325,985
Subtotal Direct Cost of
Sales
$946,960 $1,373,058 $1,727,426
(Source: As created by author)
Break even analysis
Profit in year 1 Profit in year 2 Profit in year 3

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YEAR 1 $690,247
YEAR 2 $907,061
YEAR 3 $1,064,399
Breakeven point First year
(Source: As created by author)
White ale
Premium beer
Millet
Draught
TOTAL SALES
Direct Cost of Sales
White ale
Premium beer
Millet
Draught
Subtotal Direct Cost of Sales
$0
$1,000,000
$2,000,000
$3,000,000
Break even Analysis
YEAR 1 YEAR 2 YEAR 3
Figure 1
(Source: As created by author)
The return on investment of the proposed plan is high and the organization will be able to
reach break-even point within the first year. The revenue that is generated in the first year is
equal to the overall cost of production of the beverages.

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Implementation
The marketing plan has been formed but the implementation of the marketing is more
important. The organization will have to control and monitor all the organization processes so
that they are able to make changes to the plan depending upon response of consumers and
adversities. The marketing strategy will be constantly monitored and evaluated to understand the
success of the strategies that have been applied.
Conclusion
Thus, from the above marketing plan it can be conclude that SIMDI Bev has the
opportunity of utilizing the market situations in heir favour. Moreover, the image of the brand is
strong so this will push the new products they are launching in the market. However, the
organization should use integrative processes to monitor and control the processes in the
organization.

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Reference
Abdullah, A. B. M. (2017). Cultural Context. In Managing the Psychological Contract (pp. 23-
41). Springer International Publishing.
Ali, V., Cullen, R., & Toland, J. (2015). ICTs and tourism in small island developing states: The
case of the Maldives. Journal of Global Information Technology Management, 18(4),
250-270.
Bickhoff, N., Hollensen, S., & Opresnik, M. (2014). Step 2: Strategic and Operative Marketing
Planning—Segmenting, Targeting, Positioning. In The Quintessence of Marketing (pp.
47-110). Springer Berlin Heidelberg.
Dadzie, K. Q., Amponsah, D. K., Dadzie, C. A., & Winston, E. M. (2017). How Firms
Implement Marketing Strategies in Emerging Markets: An Empirical Assessment of The
4A Marketing Mix Framework. Journal of Marketing Theory and Practice, 25(3), 234-
256.
History - Simdi Group. (2017). Simdi.com. Retrieved 22 October 2017, from
http://simdi.com/simdi/history
Khan, M. T. (2014). The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), 95.
Pyo, S. (2015). Integrating tourist market segmentation, targeting, and positioning using
association rules. Information Technology & Tourism, 15(3), 253-281.
Rasheed, A. A. (2015). Development, development policy and governance in the Maldives: A
political economy perspective.