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MARKETING PLAN: MODULE 4

Marketing Plan

Name

University Affiliation

Distribution Channels

As referenced from Module 1, BLUE drinking water is the Waters Bottling Company (WBC)’s first major product. The Company’s objective is to provide the market with quality mineral water that is clear and granite filtered WBC master plan is to develop BLUE before venturing into the production of other drinks such energy drinks and soft drinks.Given the entity’s motive to penetrate the international market, place and promotional activities are a vital aspect of a successful market mix given the intense rivalry in the corporate world.

Distribution Channels are ways in which the Water Bottling Company will stretch out its products in a variety of regions given the diverse geographical locations. They are major paths through which products travel from the producer to the consumer. WBC will however consider several factors prior to selecting a distribution channel;

· The Nature of the Product- distribution channels for technical and complex products differ from those of simple products

· The product market in terms of the degree of competition and the geographical location

· Legal formalities which may regulate certain processes and channels of distribution

Research by the Council of Bottled Water Manufacturers reveals that demand for bottled water has been constantly on the rise since the 1980’s with a 400% registered growth in demand. This is mainly because of the public’s preference of safe bottled drinking water to the not-so-safe municipal water. To tap the profitability of the growing demand, the Waters Bottling Company will decide on a relevant and appropriate channel of distribution given the above mentioned factors.

Length and Width

The Council of Bottled Water Manufacturers outlines five main channels of distribution; retail grocery, commercial delivery, home delivery, restaurant purchase and vending purchase. The length of a channel defines the number of individual entities that exist between the producers and the consumers and is largely based on a vertical dimension .The width, on the other hand, describes the number of entities that serve the same function in a distribution channel. The width is horizontally oriented. Generally, highly standardized products tend to be moved through longer channels of distribution than products built to each customer’s specifications. Since WBC hopes to supply the market with highly standardized, safe and quality drinking water, a longer channel of distribution would be more appropriate for their product’s marketing in terms of safe delivery to consumers.Also, since WBC’s market is geographically dispersed, a wider channel would ensure an effective marketing strategy. The company will also consider the most efficient channel in terms of cost efficiency

Direct and Indirect

Depending on their effectiveness, WBC’s channels could be director indirect. Direct channels have no intermediaries. If WBC opted for a direct channel, no middlemen would be required .The company would instead delivery its products directly to its demanders with zero costs resulting from intermediaries. On the other hand, firms using indirect channels employ middlemen to help in the distribution of the product. Direct channels are shorter, thus lower overhead costs and would foster a personal interaction between WBC and its customers. This would provide for immediate and first-hand feedback. Indirect channels are convenient in cases where WBC would require a minimal level of interaction with its customers and a wider range of delivery.

An indirect channel would be profitable for WBC as the desires to market its products internationally. Direct channels of distribution are seldom suitable for markets with a wide geographical coverage. Intermediaries will ensure that BLUE is effectively delivered to the target market Vertical and Horizontal Channel Conflict

Channel conflicts ariseas a result of disagreements between companies in a marketing channel. Since marketing is a step-by-step affair disagreements may arise among participants due to matters pertaining prices or even the mode of delivery. In a distribution channel, certain companies possess channel power, which is the ability to control product prices, inventory and even trends in sales. Since WBC was established last year, it would be unlikely for the latter to be a channel captain.

Vertical conflicts arise among participants of different levels. For example, a vertical conflict may arise in the case where WBC sells BLUE via retailers and the two fail to agree on a fair price. Horizontal conflicts exist between members of the same level. For example, if WBC was located close to another subsidiary selling the same product, the intense rivalry would even impair business. Vertical and horizontal conflicts should be resolved at all levels to ensure that WBC’s performance is up to the notch. Extreme competition may hinder the success of the newly launched product.

Promotion

Promotional activities must be right for a perfect and fruitful marketing technique. Such activities propel sales and are also a great way to transform the company’s potential clients to real clients, thus generating greater levels of revenue and a wider profit margin. Through promotion, WBC will create awareness of the product given that BLUE drinking water is still in its elementary stages of development. The company will thus need to invest in profitable promotional activities to inform, persuade and influence the public to purchase its product.

Communication Process and Tools

Communication is the sole principle of promotion. Proper marketing communication is what will get the public to purchase BLUE. Several tools can be applied for effective marketing communication; direct marketing, sales promotion, advertising, public relations and publicity, interactive marketing and personal selling. WBC will apply the above mentioned tools of communication for effective market communication to attain product promotion .It is however important to note that advertising is a tool of promotion and that not all promotional activities are promotions.

WBC will apply both personal and non-personal channels of communication. Personal channels are those that involve sales agents and other marketing personnel .The sales people may persuade the public into consuming BLUE through disseminating information via the above outlined market communication tools. Non-Personal channels are the most common and convenient given their wide area of coverage. Through broadcast media, print media, visuals such as posters and electronic media, WBC can attain efficient market communication to its target audience.Also, the company can develop its interior and exterior designs to attract a bigger customer base. It will achieve this by simply developing an attractive packaging water for their product BLUE.

However, the company should acknowledge advertising as the most effective mode of promotion given its vast simultaneous coverage and invest widely in it as per the product cycle. Also, active participation in certain activities via sponsorship is a great way to ensure product promotion. For example, WBC could offer BLUE in a sport oriented activity or even provide primary funding needed to organize the event. This way, its customers are able to not only interact with the product but also its brand. The company also plans to raise funds for the needy children in the society in a bid to sponsor their education.

Product Life Cycle

Product life first begins when a product is introduced in a market. The cycle entails a variety of stages; introduction, growth, maturity and decline. Different stages of the product cycle require different promotional activities. Thus, WBC has to adjust to the conditions presented by each stage of the cycle. The introduction stage is the phase in which a product is introduced .Thus, WBC will tailor promotional activities involved to create product awareness in a bid to establish a market for the product. The growth stage’s promotion will aim to strategically create a distinction between BLUE and other products given that activities to create awareness in the introduction stage will have caused an increase in sales. In the maturity stage, WBC will aim to establish customer loyalty through special promotional activities and incentives to draw customers from business rivals. Finally, the decline stage will be characterized with market saturation of BLUE thus a fall in product demand in this stage. WBC will conduct minimal marketing tactics given product saturation in the market

Push Vs. Pull

Push and Pull are promotional strategies that WBC will undertake to deliver the product to its target audience. A push strategy will directly deliver BLUE to its clients via whatever means. This will foster product awareness from the point of purchase. For example, WBC may opt to negotiate with retailers for them to stock their products.

WBC’s pull strategy will motivate customers to seek the company’s brand in an active and highly persuasive influential process. For example, the company could employ mass media promotion and advertising and sales promotion activities as well as word of mouth referrals.In a push strategy, producers make the effort to reach to the consumers whilst in a pull strategy, consumers reach to the company. WBC should adopt both strategies so as to ensure a successful market mix.

REEFERENCES

O Zain, (2012). Marketing Channels have Vertical and Horizontal Dimensions. Retrieved Online from https://articles2day.org/2012/05/marketing-channels-have-vertical-and-horizontal-dimensions-distribution.html

Dr R Nayarana, (2015). Management Theory Review: Marketing Communication; Channels and Promotion Tools. Retrieved online from https://nraomtr.blogspot.com/2011/12/marketing-communication-channels-and.html?m=1