The present paper outlines a marketing plan for an up-and-coming fast-moving consumer goods company, Quantum Energy. The company intends to launch a new product, Quantum Energy drink, that is projected to stand competitions against the most serious market contenders such as Pepsico, Coca-Cola, and Monster. To make it possible, however, the company must take time to develop an excellent marketing strategy. The present marketing plan defines the core customer base as young people who need an energy boost to get by with their work and studies but who are also concerned with their wellbeing. Some of the possible collaborators include influencers, leaders of opinions, and other food companies with established customer bases. The three pillars of the marketing strategies include extensive use of social media, emphasis on environmental awareness, and enhanced customer service. Quantum Energy plans to ensure distribution at customer and wholesale prices that are approximately the average on the market. It is projected that the company will make a profit after the first year and end up with an ROI of at least 10%.
specifically for you
for only $16.05 $11/page
Quantum Energy Marketing Plan
The Business Challenge/ Introduction
The global sales of energy drinks are increasing each year as customers have been buying more of these products and avoiding soda beverages. This represents a great opportunity for a brand to introduce a new energy drink to the market to attract customers. The key challenge is associated with standing out from the most popular brands of energy drinks such as Red Bull, Monster, or Rockstar. The uniqueness of Quantum Energy drink will be linked to the use of organic ingredients, no sugar content, as well as low-calorie count to attract more health-conscious customers who have been avoiding energy drinks for their harmful content. Thus, there is an opportunity for Quantum Energy to integrate into the market of energy drinks and gain customers’ attention.
The core customer base for Quantum Energy drink consists of young adults. As recent statistics have shown, more than half of all consumers (58%) are people under 25 (Clifford). At the same time, the median age of trying an energy drink for the first time is 16-18 years old (28% of respondents) (Clifford). Interestingly enough, the most common setting where people are likely to consume energy drinks is in the workplace. One-fifth of the respondents reported consuming energy drinks outside work and school. Only 15% and 18% of people preferred to use the product during study time and during or after a workout session, respectively (Clifford).
As for customer motivation, 66% of people saw a rapid energy boost as the main reason for making a purchase (Clifford). Men are more likely to choose energy drinks than women who would rather use coffee for the same purpose. It would be safe to say that the functionality of the product trumps its other properties. However, the company should not ignore the flavor – 44% of respondents said that they appreciated great-tasting energy drinks (Clifford).
Quantum Energy is an up-and-coming company gaining traction in the FMCG (fast-moving consumer goods) sector. As a newcomer, it has more flexibility than established companies that rely on procedures rooted in evidence and practice. Quantum Energy has enough space for testing and experimentation and the potential to disrupt the FMCG sector. The company capitalizes on novelty and innovation by prioritizing health and environmental concerns. With all these factors taken into consideration, Quantum Energy can build a unique customer base at the intersection of those who like to give their lives an extra squeeze and those who care deeply about their wellness and the well-being of the planet. On the other hand, however, the novelty of Quantum Energy might prove not to stand a chance against the industry’s giants. They have more resources to spend on marketing campaigns as well as attract the best talent in the field.
It is possible to define two categories of collaborators that could find a business relationship with Quantum Energy mutually beneficial:
- influencers and leaders of opinion. Since the core customer base consists of young people, they are likely to learn about new products from social media. Product placement on such platforms as Instagram is a common practice that Quantum Energy could put to good use;
- food companies promoting health and wellness such as Whole Foods. Such stores typically have both physical and online stores that could be valuable distribution platforms.
As a recent study in energy drink consumers has clearly shown, 55% are loyal to one brand (Clifford). 29% of people do not discriminate in general but have a favorite drink that they prefer above all others (Clifford). Only 15% do not express any preferences and are ready to try new products (Clifford). Thus, Quantum Energy will have to focus on the following:
100% original paper
on any topic
done in as little as
- gain a competitive advantage against the giants of the industry;
- attract those customers who are unsure about their preferences and open to new experiences.
Among the most serious contenders in the FMCG sector are Coca-Cola, Pepsi Co, and Monster. Their strong presence on the market can impact the growth and development perspectives of Quantum Energy in a variety of ways. First, the customer base is more familiar with their products and thus, can be apprehensive about the new offer. Second, Quantum Energy will have to work on its timing when launching campaigns and introducing innovative solutions so that they do not overlap with those by Coca-Cola, Pepsi Co, and Monster.
Quantum Energy will need to comply with the guidelines by the Food and Drugs Administration of the United States. So far, the general rule has been that energy drink manufacturers need to label their products as containing caffeine explicitly. However, there is no specific amount of caffeine that is legally permissible. Yet, Quantum Energy will need to be cautious since there have already been some initiatives aiming at limiting the caffeine content in energy drinks. If the legislation changes in the future, it is in the company’s best interests to be prepared.
As for social and cultural forces, there is still some stigma around consuming energy drinks. It is associated with a reckless lifestyle and little to no concern about one’s health. In its marketing campaign, Quantum Energy will have to focus on the healthiness of the new product as opposed to its alternatives. The company will also need to address environmental concerns and prove that manufacturing is lean. This will give Quantum Energy a leg-up in the competition against Coca-Cola and Pepsico that are often accused of contributing to water and soil pollution.
The marketing strategy will revolve around social media presence, the healthiness of the product, and enhanced customer service. The alternatives to the first point included using more traditional communication channels such as physical advertisement and television. They were discarded since they do not allow for easy access to the core customer base. The remaining two points were the best choice since these are unique features and services to offer that can distinguish Quantum Energy from its contenders.
These are the three main pillars of the present marketing offering:
- strong online presence and extensive use of social media platforms;
- emphasis on the healthy properties of the product as well as the environmental impact of manufacturing;
- customer service including home and office delivery, catering for events (example: sports events), and an online store.
The offering includes both customer and wholesale prices:
- customer: $3.00 per can; $15.00 per box of six (party box);
- wholesale: $2.50 per can; $13.000 per box of six.
This pricing strategy is beneficial since it hits the spot between the cheaper energy drinks ($1.99 per Full Throttle can) and more expensive energy drinks ($4.00 per Red Bull can). Lowering prices will not let the company stay afloat; moreover, such prices sometimes raise suspicions, especially in the current business climate where customers tie value to price. Higher prices would make the product less available, especially given that the core customer base consists of young people who may not have a stable income yet.
The Communication Plan
The marketing strategy will revolve primarily around social media. The most appropriate platforms for launching include Instagram and Facebook. The merits of the chosen strategy include easy access to the core customer base represented mainly by young people. Social media allows for extensive use of visuals such as pictures and videos that are attractive, aesthetically pleasing, and can convey the right message. SM platforms are also the perfect place to collaborate with influencers and leaders of opinions such as music artists, Instagram models, and YouTube content creators. They can be valuable communication partners and brand ambassadors.
Customers must have access to the company’s representatives. Quantum Energy will need to hire social media specialists that would communicate with them at least weekly and more often in case there is an issue that needs to be addressed. Social scandals and controversy can be easily avoided if the company itself provides a prompt response to accusations or publishes official statements on time. When it comes to customer service, there is a need for a hotline so that people can easily make purchases, ask for details, or reimburse.
Quantum energy drinks will be distributed through collaborators using physical stores and their online platforms. They include reputable companies such as Whole Foods that have their own established customer bases. Online stores are an essential element of the distribution strategy given the average age of a typical customer. The company itself can distribute energy drinks on its platform so that it would be convenient for visitors to learn about the product and purchase it right away.
At first, shipping of Quantum energy drinks will be limited to North America, namely, the United States and Canada. The company will collaborate with reliable shipping providers such as United Parcel Service to meet customers’ needs.
Customer service will include online support and a hotline for those who would like to request more information, make a purchase, or file a complaint. Pop-ups may be part of the marketing strategy. In this case, promoters will serve potential customers by being knowledgeable and helpful.
First-year net income: $300.000;
First-year profit: $60.000.
Return of Investment
100% original paper
written from scratch
specifically for you?
Financial goals for Quantum Energy include:
- Increased revenue from sales;
- Decreased costs by implementing lean manufacturing, managing waste, landing better contracts, and other strategies;
- Improved profit margins in under three years;
- Cash flow planning.
As an up-and-coming player on the FMCG market, Quantum Energy has promising perspectives. It has a well-defined customer base at the intersection of young people with an active lifestyle and those who care about their wellness and environmental wellbeing. The company can and should capitalize on novelty and innovation and propagate the idea that even an energy drink can be part of a conscious lifestyle. Quantum Energy has serious market contenders in the FMCG sector such as Coca-Cola, Pepsico, and Monster. It is possible to gain a competitive advantage against them by collaborating with influencers and other food companies as well as capitalizing on social media, branding, and environmental awareness. Quantum Energy will ensure excellent customer service by enabling delivery and catering for various events. The company will launch its product in physical and online stores appeasing the core customer base consisting of young people. It is projected that the company will profit from its business activities in the first year after the foundation with an ROI of 10%.
Clifford, Liam. “5 Consumer Insights to Give Energy Drink Brands a Boost.” Medium. 2018, Web.