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International marketing plan presentation
Transcript of International marketing plan presentation
Previous exposure in the market with negative results.
Not be able to cling to the market to acquire a position.
Strategic decisions are adopted based upon competitive brand positions and prices.
The key reasons why SHARK energy drink should employ a product re-positioning strategy is (Dröge & Darmon, 1987);
A mistake is made in the original positioning (promotion tied to brand awareness)
New customer preference cluster with new opportunities
The brand didn’t achieve a competitive advantage at the first attempt.
Influx of new competitor products
The SHARK product will be positioned so that it is very much in the limelight.
The Re-positioning Strategy that we have applied is based on a appropriate Marketing Mix that will highlight; What the product is, what it stands for and how customer perception can be influenced.
Foreign market entry strategy
The strategy that has been opted for is the Market Pricing Strategy
Price similar to comparable products.
The innovative nature of energy drinks they can be priced higher than other types of beverages.
Red Bull developed a new pricing strategy -
“Contained extra ingredients and apart from being soft drink it also had an energy stimulating function.” Adner (2009)
We will set the price slightly below Red Bull
Capitalize on this perceived value to entice potential customers
Tariffs are increasingly being removed due it being perceived an unfair impact on pricing.
Fletcher and Crawford (2011) describe the modified pricing policy as a geocentric approach
Launch events will be held on 1st July by holding various Shark sponsored parties at nightclubs and bars (located near universities).
Student ambassador program start mid-June, obtaining 70% brand awareness with the target market.
Products will then be made available to buy at supermarkets and service stations followed by a permanent move to nightclubs/bars.
Shark Energy Drink
Goals & Objectives
The Market Entry Strategy chosen for the Shark Energy drink is to export the product directly into the Australian Market.
Thailand Australia Free Trade Agreement
Limited taxes and tariffs
Domestic price due (bulk buy)
We have followed the Red Bull model of entry strategy due to their high success rate.
Since 2003, the industry for energy drinks has grown from $5 million to a $19 billion (Heckman Et al 2010)
Shark has decided to use retailers such as (Adner, 2004);
7/Eleven Service Stations
Nightclubs & Bars
Exporting has been chosen because it allows greater control over the Shark product and allows a strong form of foreign investment. The company has proposed that if this venture is successful, production within the Australian market will begin, either through Joint Venture or Greenfield operations.
Shark energy drink carbonated drink containing Taurine and caffeine which make you feel energised.
Various ingredient combinations are critical to the product due to;
Distinct overall flavour,
The amount of energy,
The duration of energy.
Shark Energy is a modification of parent company Osotspa’s energy drink M-150
It is a market leader in Thailand holding 60% of the energy drink market (Osotspa 2013)
Shark is carbonated and packaged in aluminum cans to meet with the tastes of countries such as Australia.
The product was born global focused on exploiting new international markets.
1. Emilia Nardi
2. Kerime Taskin
3. Thomas Guest
4. Jessica Srbinoski
5. Robert Stanford
Proposed Positioning Map
Current Positioning Map
Current Perceptual Map
Proposed Perceptual Map
Adner, 2004, ‘Red Bull and its successful innovations in the soft drinks market’ Viewed 18/5/2013 < http://faculty.insead.edu/adner/projects/MayJune04 FINALProjects/RedBull.pdf>
Dröge, C. & Darmon, R. Y., 1987. Associative Positioning Strategies through Comparative Advertising: Attribute versus Overall Similarity Approaches. Journal of Marketing Research, 24(4), pp. 377-388."Energy Drinks Marketing Research." Research Wikis. 29 Oct. 2008 http://www.researchwikis.com/Energy_Drinks_Marketing_Research
Fletcher, R. & Crawford, H., 2011. Internation Marketing: An Asia-Pacific Perspective. 5th ed. Frenches Forest: Pearson Australia.
Heckman M.A, 2010, ‘Energy Drinks: An Assessment of Their Market Size, Consumer Demographics, Ingredient Profile, Functionality, and Regulations in the United States’, ‘Comprehensive Reviews in Food Science and Food Safety’ Vol. 9, Issue 3, Viewed 18/5/2013
Osotpa 2013, Osotspa Company Profile, viewed 15/4/13, http://www.osotspa.com/company
Vaknin, S 2007, ‘Marketing Implementation, Evaluation and Control’ in Nation Branding and Place Marketing, Narcissus
Pre-launch research activities such as general surveys will be used to gauge the awareness of the brand.
Followed by a marketing audit which gauges on how well Shark has penetrated the market and helps with strategic control (Vaknin, 2007).
Analyzing competitor reaction to product
Analyzing consumer reaction to product
Considering viable long-term options
By choosing to directly export we are able to maintain more control over the process than any other strategy.
If the numbers are good and the product does well;
The establishment of an Australian Headquarters
Allow Thailand Headquarters to focus their resources back towards their own market.
The choice to avoid usual methods of marketing we have chosen ‘buzz marketing’ or word-of-mouth advertising, directly to generation Y.
There will be specific age/culture group
extreme sports enthusiasts
the ‘hip’ crowd of party goers
Personal selling will be employed through;
Student brand ambassadors – who would be used to promote Shark on university campuses,
encouraged to throw parties at which cases of Shark would be distributed,
Regularly giving away samples on campus throughout the year.
Sponsorship and endorsements would also be a key player; by sponsoring the right event the company would create a fun and exciting profile of the brand.
Endorsements are most likely involved in the extreme sport scene, Shark would be seen everywhere at the events sponsored, and athletes sponsored would be covered in the brand merchandise
Distribution channel for Shark is Intensive distribution
Aims to provide saturation coverage of the market
By using all available retail outlets such as supermarkets, gyms, convenience stores, coffee houses and trendy clubs;
Coles and Woolworths
Fitness First, Fernwood, Anytime Fitness
Starbucks, Gloria Jeans, Jamaica Blue
7/Eleven, Caltex, BP
Easily available to the customer in places competitors are available
promote sports, physical and outdoor activities
giveaways at sporting events
Shark a chance to be introduced to the specific target customer most effectively, allowing them to trial it. By doing so it does not lead to immediate sales, but improves cumulative favorable awareness of Shark (Fletcher & Crawford, 2011).
Offer a renewed product that has a market innovation element in its core.
Create awareness for SHARK energy drink.
Successfully enter the retail market with an advantage over our competitors.
Develop a product that has a new and exciting brand image.
Increase awareness of SHARK energy drink by 5% each month following the product launch.
Gain 2.5% market share of energy drink market by the commencement of the second year following the product launch.
Establish a sales revenue increase of at least 20% within the second year following the product launch.
Try to establish a headquarters in Australia within the next 5 years.
It is through our marketing strategies that we hope to achieve these goals in particular through our promotion strategies. Promotion will be the key factor in increasing awareness, obtaining market share (product/price plays a role here to) and increasing sales revenue.
Target Market and segmentation
Age: 15 to 35years of age
Gender: Male & Female
Geographic: NSW & VIC
Newly Married Couples
Full Nest I & II
Socio-graphic segment: younger audience with a more social attachment, participant of physical activities which would need energy.
Psychographic segment: Previous consumption of energy drinks, familiar with its physical effects, social activity persona to the drink, consumed when with company during an activity.
Influencer: Male or female adult and adolescents depending on the household structure.
Basic needs and benefits sought: energy, stimulation, consumption benefits.
Purchasing/shopping characteristics: bought in individual packages when outside during an activity, bought in mass for household drinking (saving of money).
Consumption/disposition characteristics: consumed both individually and in group, main disposition; happy, needs energy.