Marketing Plan Chris Critchley, Kelsey Spence, William Ip & Leslie Wong Overview Introduction Product Analysis Core Competencies & Competitive Advantage SWOT Analysis Target Market & Branding Marketing Objectives Promotional Strategy Conclusion Introduction SWIC is a revolutionary new energy product SWIC = Mr. Freeze meets Red Bull Premium, adult freezie! SWIC Mission Statement “Our high-quality ingredients distinguish SWIC as a premium energy product. We offer customers a unique product-experience that is functional, delicious and fun. Our aim is to enhance the vitality of world!” Product Analysis What’s in SWIC? 1) Naturally Delicious Real Juice Flavour ◦ 3 flavours: Very berry, Strawberry-kiwi, and Orange 2) High-Quality Ingredients! ◦ Spring water from High River, AB ◦ No artificial dyes or flavours ◦ Nut-free, gluten-free, dairy-free, egg-free, and soy-free 3) Where does SWIC get its energy-enhancing qualities? ◦ Caffeine: Naturally occurring stimulant ~80mg per freezie= ~1 cup coffee ◦ Taurine: Synthetic version of a naturally-occurring amino acid ◦ B Vitamins : For healthy metabolism, central to the normal functioning of the nervous system. ◦ Vitamin C: Natural antioxidant which contributes to a healthy immune system. Core Competencies 1. Utility Improves both mental and physical alertness! 2. Taste & Fun Finally an ice pop for adults with unbeatable flavour! 3. Convenience Hand-held, perfect for on-the-go snacking. Competitive Advantage I. Caffeine and Energy Competitors Here are some key players: Starbucks Tall Brewed Coffee Caffeine 250mg Calories 5 Red Bull Energy (250ml can) Caffeine 80 mg Calories 110 Sodium 200 mg SWIC (one freezie, 125ml) Caffeine 80 mg Calories 140 Sodium 10 mg Monster Energy (473ml can) Caffeine 160mg Calories 220 Sodium 360mg Awake Chocolate (1 bar) Caffeine 110 mg Calories 230 sodium 36mg 5 Hour Energy Shots (59ml) Calories 200mg Calories 4 Sodium 18mg II. Frozen Products Almost always high in sugar and artificial colouring and flavour North American favourite, marketed to kids Mister Freeze -traditonal ‘old school’ freezie -very inexpensive Popsicle Brand Products -many varieties -fairly inexpensive Electrolyte Pops -Chapman’s Sport Pops -Squenchers electrolyte freezies -‘recovery’ product for men SWOT Analysis- Internal Factors Internal Factors Strengths Weaknesses Marketing -Premium ingredients -Utility, taste, convenience -Great novelty aspect, only one of its kind on market -Product will be sold at right place and right time -Huge summer revenue potential -Need to push new idea -Traditional freezies are inexpensive -Not everyone likes energy beverages/ not recommended for children or pregnant women -Must keep at extremely cold temperatures -Lower sales projected in winter Finace -Premium price with high profit margin -Huge potential for growth -No real economies of scale -Current budget may restrict expansion -Competitors with bigger budgets SWOT Analysis- External Factors External Factors Opportunities Threats Consumer/ Social -Growing demand for energy products -Demand for frozen, convenient foods also growing -Target easy to reach via social media and in-person events Economic -Consumer income relativity high in North America -Target market have high level of disposable income -Premium price may limit access to mass markets -There are people who are intimidated by energy products, or feel they are unhealthy -Competitors may enter market -Target group generally younger and income not as high Legal/ Regulatory -Canadian health regulations help eliminate risks and foster consumer trust in Canadian energy products -Energy products need to be consumed and sold with care Target Market First target market: -18-28 years -live in/near city centre -lower-mid income Secondary target market: -28-34 years Psychographic: -willing to try new things -not intimidated by energy products -its hip to consume SWIC Behavioural: -life filled with events, sports, work and study -consumer is active, and health conscious -buy SWIC for boost of energy, and cools body temperature Branding Energetic and youthful! Focus on unique functional benefit for physical activity, studying, working, driving etc. SWIC is hip and found ‘where the party is’. Sold at popular events all across the country Logo evokes the mountains and snow = West Coast of Canada Bright colours and silver help convey the vitality of SWIC! Marketing Objectives IMC Objectives: Promote the brand high energy and high temperature. Ex. club nights, raves, sports events, gaming and comic conventions. Promote heavily online (social media, website) Current Objectives: To build a loyal consumer base. To be the consumer’s first choice energy product To be the top choice for a refreshing, and convenient frozen snack food. Future Objectives New flavours, electrolytes Expand sponsorship portfolio: become a main sponsor of various events where SWIC will be sold and distributed, increasing our exposure. Increase distribution: we hope to expand to different areas of North America and the world! Pricing Strategy • $3.99/SWIC • Production Cost: $1.50/SWIC = GREAT PROFIT MARGIN! • Break Even Quantity: 8,000 packs of SWIC = $32,000 revenue Corporate Goals 1. Enter the market; grow customer base and distribution, and hit break even point by third quarter 2014. 2. Increase productivity and achieve scalability. 3. Maintain our position as the highest-quality energy freezie brand in the world. 4. Enter new geographical markets. 5. Attract investment in SWIC, aim for an IPO ~2017. Distribution Strategy Individual freezies (125ml) Aim is to distributed in large and small-scale retail operations throughout Canada: 7-11, Safeway and Costco Larger stores- 6 and 18 pack sizes Sold individually in gas stations, convenience stores, gyms, specialty stores Branded freezers for retail stores Gas stations perfect for summer heat sales, energy for long drives Promotional Budget 2013 $50,000 first year promotional budget: $5000 for branded freezers strategically place in busy convenience stores $5000 will go strictly to online advertising and web maintenance $40,000 in-person event promo throughout the year, majority during the summer (inc. travel/ expenses) Attend events with our promo truck, and set up promo booths. Funds used to produce/ maintain the ‘kiosks/booths’ Promotional Program New on the market Attend large and small events Online active presence Support sponsorship partners Event marketing and sponsorship is a valuable promotional tool Sponsorship Mock-Up: Centre of Gravity Festival Promo Video http://www.youtube.com/watch?v=g9fY_n JVgVA Conclusion ◦ SWIC is the most exciting product to hit the streets in years! ◦The time to get involved with SWIC is now!