Dr pepper snapple group marketing plan essay sample

Introduction
Generally, many new products fail after their introduction in the market (Bamford, 2010). There are many reasons that can be attributed to their failure. Companies often fail to do enough research, or even ignore the results of their research. Sometimes the distribution or pricing channels are inappropriate. Additionally, the advertising may not communicate the main message of the new product. Dr Pepper Snapple Group wants to introduce a new beverage in the energy drink market. Therefore, it is significant for the company to understand key market issues that may make the product successful. This paper seeks to describe a basic marketing plan for Dr Pepper in introducing the new beverage in the market. Method of Marketing the New Beverage

The success of a new product is usually depicted by the volume of sales that it records. There are many approaches for marketing the new beverage. However, I think reaching out to the market is the most appropriate for introducing the new product. This approach involves various methods of communicating the company’s message to the customers. On the fore, it is important for the company to use websites to a large extent. The website will give the company a wider audience than any other type of market. Additionally, it is lends legitimacy to the company’s product and it is relatively cheap. Yahoo and Amazon have some of the best websites to market new products. Second, the company should make a press release.

The company should find a media that is related to the type of product and provide them with a press release about the new beverage. Next, maximizing the use of social media is one of the recent approaches of reaching out to the target market. The social media is a powerful marketing tool, and can be used to spread the word about the product to a wide range of customers (Boom & Kurtz, 2012). For instance, Facebook and twitter have a large number of subscribers. Reaching out to the market using these techniques would assist the new beverage in penetrating the market. Optimal Techniques for positioning the Product

Effecting positioning is necessary to success; particularly when marketing a new product. There are several optimal techniques for positioning the product. To start with, perceptual mapping is an optimal technique for positioning the product. It involves spatial representation of the perceptions about the product on the parts of different people. In some instance, the company may lose its market position due to change in consumer attitudes, technology, and competitive activity. Perceptual mapping is an important technique for the company to reposition itself. Next, positioning a product to a specific segment is another optimal technique. It involves sacrificing a few segments, and remaining with others which the company can serve them best.

Third, the communication process is an effective positioning technique. Communication assists the company to build up the image of the product (Johnson, Scholes, & Whittington, 2006). Establishing a strong image is influenced more by the efficiency and effectiveness of the communication. Finally, positioning against and along the market leaders is an effective strategy. The company should compare its product with that of the market leaders in order to develop a strong brand. In addition, the company should position the same product against other competitors. The new beverage should be perceived as superior compared to the existing competitors’ products. Best way to differentiate the Product

Product differentiation allows a company to gain a bit of market control. Additionally, it can charge a higher price for the product due to its distinctiveness. While some differences in products are only in the minds of the consumers, others are real and allow consumers to satisfy their hidden needs. As a matter of fact, differentiation adds the variety that enhances the lives of the buyers. Product differentiation is achieved in three ways: physical differences, perceived differences, and support services. Physical differences exist when the product of one company is physically different from the product of other firms. On the other hand, perceived differences arise from differences that are perceived by buyers, for example, brand name and advertising (Bamford, 2010).

Support services results from products that are physically identical and perceived to be similar but are differentiated through support services. The best way to differentiate the new product is through physical differences. Dr Pepper should try to differentiate the product through chemical composition, size, shape, colour, and taste. The energy drink industry is very competitive. New products can only penetrate the market if there are physical different from the existing products, especially when it comes to taste. Optimal Product Line

A product line is a group of related products that are manufactured by the company. The best way for the company to expand its operations is by adding to its existing product line. An optimal product line is one that generates maximum revenue at minimum costs. In the case of the new beverage, I will recommend the company to have one product line that has similar flavours and a single packaging mix. The primary goal of the company is to have a product that appeals to all age categories. Therefore, a single product line that is tailored to meet the needs of all the consumer categories would be appropriate for the company. Marketing channels

Marketing Channels for the Company are a set of practices that goods and services are made available for use by the customers (Johnson, Scholes, & Whittington, 2006). I recommend the use of retailers in providing the new products to the consumers. The retailers may include restaurants, hotels, clubs, and retail store and gyms. It is an appropriate channel since the company will able to minimize the additional costs by agents in order to gain profits. Through this channel, the products will reach the final consumers at an affordable rate.

Estimate for Media Advertising and Promotional Expenditures The following figure provides an estimate for media advertising and promotion expenditures for the initial product launch: Product Launch Budget Estimates

Amount
Public Relations

PR Firm
$ 100. 00
Press Release Development
$ 100. 00
Press release wire fees
$ 100. 00
Press Kit Materials
$ 100. 00
Review Program
$ 50. 00
Analyst subscription/reports
$ 100. 00
Press tour(s)
$ 400. 00
TOTAL Public Relations
$ 950. 00

Web Marketing

Online advertising creative
$ 50. 00
Google Ad Words program
$ 40. 00
Yahoo ad program
$ 60. 00
Microsoft ad program
$ 30. 00
Search Engine Optimization (SEO)
$ 40. 00
Website development/updates
$ 100. 00
TOTAL Web Marketing
$ 320. 00

Advertising

Creative development
$ 200. 00
Print advertising placements
$ 1200. 00
VAR/Channel advertising
$ 1000. 00
Radio advertising
$ 1000. 00
Television advertising
$ 1500. 00
TOTAL Advertising
$ 4700. 00

Collateral

Data sheet
$ 300. 00
Brochure
$ 170. 00
White Paper
$ 50. 00
Demo
$ 160. 00
Web Content
$ 270. 00
Sales Force “ Cheat Sheet”
$ 120. 00
FAQs
$ 50. 00
Training materials
$ 500. 00
Reviewer’s Guide
$ 50. 00
Customer Evaluation Guide
$ 130. 00
Competitive Comparison Matrix
$ 120. 00
TOTAL Collateral
$ 1370. 00

Events (Launch, Trade Shows, Other)

Booth space/venue
$ 300. 00
Travel & hotels
$ 500. 00
Signage
$ 100. 00
Equipment rentals
$ 270. 00
Refreshments
$ 400. 00
Invitations
$ 100. 00
Webinars
$ 60. 00
In-person seminars
$ 100. 00
TOTAL EVENTS
$ 1, 830. 00

Direct Marketing Campaigns

Creative development
$ 50. 00
Email to in-house lists
$ 20. 00
Email to rented lists
$ 20. 00
Printed piece mailing to in-house list
$ 100. 00
Printed piece mailing to rented list
$ 100. 00
TOTAL Direct Marketing Campaigns
$ 290. 00

Channel Marketing Programs

VAR demo purchase program
$ 150. 00
SPIFFS
$ 50. 00
Retail end caps
$ 50. 00
Email to VAR lists
$ 20. 00
Direct mail to VAR lists

Marketing programs with retail partners

Market development funds (MDF)

TOTAL Channel Marketing Programs
$ 270. 00

SUMMARY
Amount
Public Relations
$ 1950. 00
Web Marketing
$ 420. 00
Advertising
$ 5, 0000. 00
Collateral
$ 500. 00
Events (Launch, Trade Shows, Other)
$ 1, 430. 00
Direct Marketing Campaigns
$ 990. 00
Channel Marketing Programs
$ 330. 00
TOTALS
$ 10, 720. 00

Pricing Strategy
One of the four major components of marketing mix is price. Pricing is a significant strategic issue since it is associated to product positioning (Boom & Kurtz, 2012). In addition, pricing influence other marketing mix components such as channel decisions, product features, and promotion. There is no single approach for determining price. However, it is important for the manufacturer to set the retail price in which the product will be offered to consumers. 1 would recommend $ 4. 0 for 325ml bottle of the energy drink. Taking the retail prices of other manufacturers into consideration, this would be an effective price of the product. Some companies offer the same quantity of the price at higher price while others at a lower price. The approach that I have used to determine the price is the penetration pricing method. This method involves setting the price at a lower level with the aim of attracting consumers and gaining market share. The price will be increased later when the company gains a larger market share.

Conclusion
In conclusion, the basic marketing plan is essential in introducing Dr Pepper Snapple Group new beverage. It points out significant marketing issues that would drive the sales of the new product. The issues include methods of marketing the product, positioning techniques, and pricing. In addition to these issues, the company should continually invest in research and development. This would ensure that differentiation and innovation is a continuous process (Boom & Kurtz, 2012). Consequently, the company will be able to sustain its position in the market in the long-term.

References
Bamford, C. (2010). Strategic Management: Value Creation, Sustainability, and Performance. New York: Cengage Learning. Boom, L., & Kurtz, D. L. (2012). Contemporary Business. Hoboken, NJ: John Wiley & Sons. Johnson, G., Scholes, K., & Whittington, R. (2006). Exploring Corporate Strategy (Text and Cases) (8 ed.). Prentice Hall.