Calik Health Drink Marketing Plan
Posted by Melda Research on March 27th, 2019
Calik Health Drink aspires to be the leading healthy fruit juice and smoothie producers in the locality and our brand will be synonymous with delicious, healthy and nutritious products. The company will offer a range of products including fresh fruit and vegetable juices, smoothies and fresh fruit and vegetable shakes. The juices, smoothies, and shakes are blended from a variety of organically grown fruits and vegetables. As our name suggest, the main focus of the company is to produce healthy products from naturally grown products so as to meet the nutrition and entertainment needs of all customers.
Calik Health Drink will start its operation in the state of Florida USA within Miami. According to US Census, Florida has a population of 19.9 million residents. The Miami-Dade country, which is located on the Atlantic coast of the southeastern Florida, has a population of 2.7 million people. However, the initial target market will constitute residents of Miami Beach. Miami Beach has a population of 88,628 excluding the thousands of tourists who visit the beach every day. The beach has the 26th highest population in the USA and the second highest housing density. According to sales reports from the Florida Department of Revenue, Miami Beach has the highest spending density. Although Calik Health Drink targets customers of all ages, it main focus is the health conscious group. They include Millennial (born between 1981 and 1996). They include those between the ages of 18 and 40 years. According to demographic statistics, 48% of Miami residents are between 15-44 years. In addition, most of the tourists range within that age bracket. Millennial have a combined purchasing power of $ 2.4 million, and much of the purchasing is done online and convenient stores.
The non-alcoholic beverages industry in the USA is highly competitive with two leading multinationals, Coca Cola and Pepsi dominating the market. The current non-alcoholic beverage sector is facing complex consumer demands for healthy, fresh products that taste good and contain ever-more exotic flavors or functional ingredients. There over 800 companies producing non-alcoholic beverages making competition very intense. The demand in the industry is driven by food consumption, customers tastes and demographic. Operation efficiency drives profitability in the industry due to the high-intensity competition. Enterprises in the industry compete largely based on cost and the ability to distribute the finished products. As such, the company needs to devise a market entry strategy that will allow it to capture the intended market share. In addition to the product promotion, branding and adverting, the company will use creative strategies to capture the different market targets.
Rivalry among existing firms is intense due to universe and number of competitors. The barging power of buyers is very strong in this industry due to the high number of substitutes and ease to find a supplier. Due to the presence of multinationals and economies of scale, there are immense entry barriers. The bargaining power of suppliers is low due to the large numbers of suppliers. Companies can source inputs from various suppliers. The threat of substitute’s product is present in the industry due to the maturity of most multinational companies
In recent times, due to increasing health awareness, the demand for non-alcoholic drinks has decreased, especially among the young population. Due to this, the non-alcoholic market in Miami is expected to have a stable growth. The increasing awareness of obesity is a major factor restraining the demand for non-alcoholic drinks. Major manufacturers in the industry are responding by introducing zero-sugar and diet drinks that meet consumers’ demand for reduced calories. These trends are likely to threaten the profitability of the company. However, Calik Health Drinks will position itself as a fruit and vegetable company to avoid the negativity associated with non-alcoholic drinks. In addition, the company will brand itself as a health-oriented company offering health drinks manufactured from organic, raw materials.
The greatest strategy is to brand the company as a health-oriented company yet offering refreshing drinks. Multinationals such Coca-Cola and Pepsi use brand loyalty to sustain their global influence. Calik Health Drink will brand itself as the leading provider of refreshing fruit juices that do not raise a health concern. The aim is to create in the mind of customers a picture of a refreshing drink that meet their expectations of a healthy drink. The company aims at producing products that a young person can drink and enjoy, a middle-aged person will see the health benefit in it and a drink affordable to all. The marketing message will be “Refreshing Healthily.” As such, the company will establish effective supply chain to ensure only the freshest and organically-produced products are used in the product. In order to offer competitive prices, Calik Health Drink will leverage technology and operation efficiency. The strategic location of the company will allow Calik to source raw products from farmers with the shortest distance and avail the end product to consumers conveniently.
The company will work with different feeding initiatives in schools to promote the company’s brand. Most of the federally sponsored feeding programs compensate only for healthy food and often discourage the consumption of carbonated soft drinks. There is an opportunity for the company to market its healthy fruit juices and shakes to the young people.
In order to position itself as a health-oriented company, the company will initiate small-scale weight loss competitions. This marketing strategy will involve consumers of the product winning a fully sponsored weight loss programs. Unlike of other generations, millennial are not influenced by the traditional “push” marketing strategies. The target group is born and raised in the technology age. As such, social media provides one of the most ideal and valuable tools to attract and engage the target market. Calik Health Drinks will use social media as the main marketing channels. The strategy will involve creating a network of influence by targeting influential people following.
Bailey S (2014). A guide to the non-alcoholic beverage industry.
Transparency Market Research (2015). Non-alcoholic drinks market. Global industry analysis, size, share, growth, trends, and forecast.
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About the AuthorMelda Research
Joined: January 25th, 2019
Articles Posted: 80
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