Running Head: MARKETING PLAN FOR OZONE SOFT DRINKS COMPANY 1
MARKETING PLAN FOR OZONE SOFT DRINKS COMPANY 8
Marketing Plan for Ozone Soft Drinks Company
Gregory G. Finney
Professor Randell Orner
July 22, 2018
Marketing Plan for Ozone Soft Drinks Company
Ozone Soft Drinks Company deals majorly with the production, distribution, and selling of flavored soft drinks to retailers as well as wholesalers and by large the general public across the State of Florida. The company is a public limited company that was started twenty years ago and has grown to obtain a substantial market share of the total population in Florida. The company has recently begun bottling and selling clean drinking water as part of its business operations. The headquarters of the company is located in the city of Miami which includes many offices for the various managers and other staff members; it also entails a factory and a warehouse. Other offices and warehouses are strategically located all around the state.
The primary objective of the company at present is to increase profitability and have a more commanding share of the market. This has necessitated the development of the marketing plan. In the presentation, the mission of the company is clearly explained; the short-term goals of one year and long-term goals of up to five years are developed. Several metrics were also chosen to facilitate the evaluation of the goals and indicate their shown progress. An environmental analysis was conducted, and various factors surrounding the business are highlighted within this market plan. A Strengths, Weaknesses, Opportunities, and Threats (SWOT) study was also developed to determine multiple internal and external factors that may affect the growth of the company and how to work around these factors to progressively benefit the company. The entire marketing plan was thus developed and is ready for implementation.
The mission of the company is motivated by the need and desire to satisfy people’s thirst and ensure they remain hydrated for healthy, thus providing a healthy alternative. The company attains this in its own practical and efficient way. The Ozone Soft Drinks Mission Statement is the driving force behind the company’s strategies and operations. The mission statement of the Ozone Soft Drinks Company reads: To provide the best refreshing drinks and ensures a healthy society while impacting lives and building within the company.
Short-Term and Long-Term Goals
The Ozone Soft Drinks Company developed some short terms goals within the next year, will help to facilitate the achievement of the company’s mission plan. Ensuring accountability and proper evaluation, several metrics were also determined to aid with the analysis of specific goals over time.
The first short-term goal developed was to enhance and ensure online presence both regarding sales, marketing, as well as consumer interactions. The company noted that its use of online spaces for business purposes was still limited. Hence one of the key goals was to improve the company’s online presence through interacting with customers via social media sites to help build and boost customer relations. This is the most effective way of advertising, marketing and interacting with customers in the modern age (Grossnickle, 2001). The metrics put in place to measure this goal; company’s website visits, social media responses and communication from other users as well as new users and retention rates of the users.
The second short-term goal was to restructure the employment hierarchy of the company by increasing the number of highly qualified, talented and youthful personnel to manage the daily activities of the Ozone. This “changing to the guard” was an essential tool to achieve high-quality operations, products and expansion in the future. The goal also entailed retaining such useful employees to ensure continuous and sustainable production while building a range of required experience and expertise. The metrics decided upon to measure this goal included several employees, employee retention and job satisfaction and, qualitative and quantitative performance of employees.
The third short-term goal of the company entailed increasing sales of the company products especially the new product that is the clean drinking water. This goal was necessary to ensure expansion in the long term as well as guarantee profitability which is among the primary objectives of the company. The purpose was devised to be obtained through more aggressive advertisement and marketing as well as the expansion of the customer base. The metric designed for this goal was the number of sales per duration of time.
The fourth short-term goal was to ensure that the company engaged in several community programs and charity outreach as a way of giving back to society and allowing for the company’s presence to be left within the community. The company endeavored to accomplish activities such as sports sponsorships, career talks in colleges, environmental conservation activities and disaster management activities. This goal was a way of building the company’s brand and enhancing its reputation while improving lives within the community and adding value to the company’s brand. The metric for this goal was the number of community programs initiated by the company as well as sponsorships awarded.
The first long-term goal was to increase the general profitability of the company by 40% by ensuring increased profit margins over the period of five years. This goal was designed to be achieved by meeting some of the short-term goals while guaranteeing sustainable performance. The appropriate metrics chosen to measure this goal were the net profits and asset values. The second-long term goal developed was to improve the market share of the company by 40% by the end of five years. This goal entailed expansion of the company regarding sales, operations and the customer base to emerge as the leading soft drinks producer in the region. The metrics used to measure this goal included the number of customers, customer retention, and sales volumes. The third long terms goal of the company entailed building a pleasing reputation and a strong brand by the sustainable high quality of products and presence. The company developed this goal as a scheme to be able to expand its impact and ensure it emerges as a leader in the industry. The purpose also provides sustainability and adds value to the company’s brand. The metrics chosen to measure this goal included the number of positive customer reviews, profit margins and general acceptability of the company from a customer’s point of view.
1. Competitive forces. Competition within the soft drinks industry in the region seems to be strong due to many entities in the market; hence providing customers with a variety of alternatives. The industry is also affected by the entrance of new players in the market especially small-scale businesses that increase competition with the already existing brands. The issue of numerous players within the industry leads to the improvement of the consumers’ bargaining power and hence ensuring prices are tightly fixed (Porter, 1979). However, Ozone Soft Drinks Company has an edge in the competitive market due to its relatively large size and longevity in the market. Ozone Soft Drinks has managed to monopolize two regions of the State of Florida despite the prevalence of other soft drink companies.
2. Economic forces. Soft drinks may be considered essential commodities; however, the industry is often stricken during economic recessions. During recessions, most customers would reduce their spending on products that are not very basic, and this affects a portion of the market in particular soft drinks. Other factors that are affected include raw materials such as sugar and preservatives whose supply may fall and rise due to other economic factors.
3. Political forces. Political divides and perceptions influence the soft drinks industry by diminishing or augmenting sales of a brand associated with or aligned to a political party or against a particular political movement. Political campaigns to promote health may result in the reduction of soft drink sales. Malicious political attacks on our brand are also possible. However, in the recent past, the effect of those political forces has been negligible.
4. Legal forces. These forces include all the rules and regulations set forth by the government to regulate businesses and specific businesses. The soft drinks industry, being part of the food industry, is controlled regarding the nutritional value of the soft drinks and places limitations on the kind of preservatives that may be used. Specific safety standards regarding health are also set to ensure the production, storage, and distribution of edible products are not harmful. Other regulations also determine the general operations of factories concerning the reduction of pollution and ethical processes. Also, there are regulations on fair competition within the industry and appropriate treatment of employees.
5. Technological forces. These forces are present in the industry to improve on production and conduction of business. Technological advancement has improved machinery and operations within factory hence efficient production. Technology has also brought about informal channels of communication, advertising, and marketing in general thus more effective business (Golden & Wasil, 1987). However, with the technological advancement, competition has become stiffer due to the increase in opportunities open to consumers.
6. Socio-cultural forces. In the region that the company is operating in has been receptive to soft drinks and consumers have had a natural preference for soft drinks in part due to the weather. Social media presence in current has also made possible to reach out to customers online which is cheaper (Grossnickle, 2001).
· One of the outstanding advantages of the Ozone Soft Drinks Company is its substantial market share in the region. This is a result of longevity in the industry which presently demonstrates a strong position on the market.
· The company has a relatively healthy cash flow and also a large capital base to ensure expansion and funding further opportunities. The company has considerably large turnovers due to its size and market share.
· The company has several factories with considerable manufacturing ability to enable the production of large volumes of soft drinks as well as bottling. The company also has strong assets regarding warehouses for storage and efficient transport facilities.
· The company lacks a consistent and highly skilled employee base that can adequately ensure the production of high-quality goods. This arises due to poaching of employees by competitors and unsatisfied employees.
· The company has a weak organizational structure that does not adapt to changes in the business world. The structure of the organization is hierarchical and limits the interaction between senior and junior employees, and hence there is no open communication. Some of the employees within the company especially junior employees are not fully aware of the company’s objectives and strategies.
· The company also suffers from a weak brand image of its products due to a negative perception in part of the public. The company has been slow to build a pleasing and attractive brand.
· New technologies offer opportunities inefficient manufacturing, product marketing, and brand. Computer-aided design tools and control systems incorporating the use of computers ensure optimal consumption of raw materials and fuel as well as reduce redundancies. Such techniques also provide high quality and quantity production (Ryding, 2010).
· There exist untapped specific market needs within particular target populations and areas within the regions of Florida. Most soft drinks on the market at present are geared towards the general population but could be specialized to fit a specific community such as the senior citizens or the younger people. Other areas are reported having relatively higher population figures than the number of products in circulation. Due to the company’s sheer size, there is an opportunity of merging with other soft drink companies or the acquisition of smaller entities in the market (Porter, 1979).
· One of the threats facing the company is unprecedented legal legislation and regulations. Laws formulated by the governing authorities could limit the company’s operations and profitability (Posner, 1974).
· Economic factors such as recession and raw materials availability and competition could also be detrimental to the company in the future (Posner, 1974).
· Technological aspects that favor the competitors of Ozone Soft Drinks Company could render it weaker and ineffective in the market. New technologies which are cheaper could also make it possible for new entrances in the market (Porter, 1979).
Business Needs Analysis
The business needs of the company entail the recommendations on what should be done concerning the findings in the SWOT analysis. One of the things the company needs to implement is the utilization of its strengths to ensure growth. The company can use its vast resources to expand and invest more capital. Secondly, the company needs to change its organizational structure and ensure employees are highly trained and possess high-quality skills. This would also result in improving the customer’s outlook of the company as well as the brand. Another need that should be met by the company is the adoption of modern and more efficient methods and machinery for manufacturing and production. Finally, the company needs to explore new markets and develop new products, initiate mergers or acquisitions to remain competitive and expand.
Golden, B. L., & Wasil, E. A. (1987). OR Practice—Computerized Vehicle Routing in the Soft Drink Industry. Operations research, 35(1), 6-17.
Grossnickle, J. (2001). The handbook of online marketing research: knowing your customer using the Net. McGraw-Hill, Inc.
Posner, R. A. (1974). Theories of economic regulation. Retrieved July 22, 2018.
Ryding, D. (2010). The impact of new technologies on customer satisfaction and business to business customer relationships: Evidence from the soft drinks industry. Journal of Retailing and Consumer Services, 17(3), 224-228.