Transcript Marketing Goals & Objectives

with calcium
Heather Aycock
Paula Braden
Jennifer
Jose
Rachel
McInnis
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Overview
•Key Marketing Challenge
•Environmental Analysis
•Marketing Goals & Objectives
•Marketing Strategies
•Marketing Controls
•Financial Analysis
•Summary
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Key Marketing Challenge
•Increase market share in the beverage
industry
•Address consumers’ needs for a nutritious
flavored drink by offering the following
product attributes
low calorie
non-carbonated
caffeine-free
calcium-enriched
•Increase knowledge of health issues
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Internal
Analysis
•Mission: To provide an alternative
source of calcium by offering a
nutritious healthy flavored drink at an
affordable price.
•Manufactured by Kraft
•Line extension of existing product
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External Analysis
•Immense amount of competition of beverage
industry
•Highly Segmented Markets
•Direct Competitors
Kool-Aid
Country Time
Gatorade
•Indirect Competitor
Soft Drinks - Coca-Cola
Juices - Minute Maid
Milk & Water
U.S. Per Capita
Beverage Consumption
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Source: Beverage Digest
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Customer Environment
•Potential Customers - all health conscious
individuals
•Targeted Demographics
Women ages 18 - 65
Educated
Middle Class
Primary Grocery Shopper
•Year-Round Consumption with possible
seasonality
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SWOT Analysis
Strengths
customization
four C’s
Kraft
Weaknesses
convenience
distinct target market
weak market image
Opportunities
new uses of product
aging population
rapid growth in
industry
Threats
Kraft brand competition
increasing direct
substitutes
high failure rate
Marketing Goals & Objectiv
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• Overall Goal: To revive sales by increasing
consumer awareness of our “Better For You”
beverage.
• Major Objectives:
Gain product acceptance in 35% of our target
market
Increase current sales of Crystal Light by 6%
Increase share of fruit drink mix market to
20%
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Marketing Strategies
• Growth strategy: Product development/Line
Extension
Involves the development of new products
for existing markets to meet changing
consumer needs
• Product
• Price and Place
• Promotion
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Product
•Powdered Drink Mix
 3 Refreshing Flavors
 2 Convenient Sizes
•Benefits
 The 4 C’s
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Benefits of Calcium
•Calcium is a mineral that primarily functions in
your body by making bones and teeth hard. It
helps muscles contract, blood clot, and helps the
nervous system work properly.
•Reduces risk of osteoporosis
•Lowers risk of kidney stones
•Helps maintain normal blood pressure in
pregnant women
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Price & Place
•Price:
 Based on cost of production, including
Research & Development costs and demand
estimations
 Psychological pricing strategy: Odd-Even
 Price: $2.99 and $3.29 per package
•Place:
 Utilize current Kraft distribution channels
Place
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POTENTIAL CUSTOMER STATS IN TARGETED MARKETS
California
33,871,648
16,996,756
16,874,892
50.2%
49.8%
24,621,819
72.7%
$39,595
1
1
Population
Female
Male
% Females
% Males
Over 18
% over 18
Median household income
Rank in pop.
Rank in numeric pop. change
Major population centers
Los Angeles,
San Francisco,
San Diego,
Sacramento
Source: U.S. Census Bureau 2000 census
Texas
20,851,820
10,498,910
10,352,910
50.4%
49.6%
14,965,061
71.8%
$34,478
2
2
Houston,
Dallas,
Austin,
San Antonio
Florida
15,982,378
8,184,663
7,797,715
51.2%
48.8%
12,336,038
77.2%
$32,877
4
3
Orlando,
Tampa,
Miami,
Palm Beach
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Promotion
•Promotion Types:
Advertising: Women’s television and
magazine ads
Sales Promotion: In-store demos, free
giveaways
Public Relations: Press releases, speeches,
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Promotion
•Promotion strategy of Kraft as the
manufacturer:
PUSH-PULL STRATEGY
Push: Use leverage of Kraft name to
dominate shelf space; cooperative
advertising with retailers
Pull: In-store promotion through
sampling,
demos, free giveaways
of
Consume
Kraft
Retailer
r
shakable
Pull
Pushcontainers
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Marketing Controls
•Pre- Implementation
Ensure resources are allocated to
top
selling stores first
Verify capital is available for the
increase in expenditures for R &
D
•Actual Process
Management commitment
•Follow Up
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Financial Analysis
(in thousands)
Net Sales
Less: COGS
Gross Profit Margin
2003
9,460
2,838
6,622
2004
10,406
3,122
7,284
2005
11,967
3,434
8,533
2006
14,360
3,777
10,583
Marketing Expenses
T.V.
Magazine Ads
Sales Promotion
Educational Packets
Other
Total Mktg Exp
2,752
1,213
543
180
115
4,803
2,890
1,274
570
189
121
5,043
2,167
955
428
142
91
3,782
1,084
478
214
71
45
1,891
Less: other SG&A
Gross Margin
2,013
-194
2,134
107
2,198
2,553
2,264
6,428
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Summary
 90% of American women do not get their
daily requirement of calcium
25 million American women suffer from
osteoporosis
Our hopes for the future
June 2002
Sept 2002
June 2003
June 2004
June 2005
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Questions
?