PROJECT PLAN 11
Thebrainpower cup referred to as the Forward will be sold in Kuwait.This is due to the fact that there is a huge population of the youthwho are the target customers for the cup. With Kuwait having apopulation of 3.9 million people, majority of them are the youth agedbelow 34 years.The graph below shows the population distribution in Kuwait as of2016.
Thebrainpower cup is a new and unique product in Kuwait. Research hasindicated that there is no similar product in Kuwait market thereforethis assures of a huge market for the cup. The uniqueness of the cupwill ensure that it captures the attention of the buyers easily andquickly. It is also essential to state that most of the Kuwait peoplelive in the urban centers and therefore it will be easy to market theproduct. The graphical presentation below shows the distribution ofpeople in urban areas of Kuwait.
Itis essential to mention that Kuwait is a rich nation and manycompanies which have invested here have been making huge profits(Hooley, Saunders, & Piercy, 2004). The people of Kuwait have thepurchasing power which will drive the profitability of the product.The uniqueness of the product will ensure that there are huge salesand therefore profits. It is essential to set fair prices in order towin customer loyalty in order to maintain them in times ofcompetition. Youths in Kuwait are known to be heavy spenders andtherefore this will drive the profitability.
Themarket areas that will be targeted by the brainpower cup are thelearning institutions and youth groups where there are numerousyouths. Future marketing strategies will however target the entirepopulation (Cahill, 2006). It is essential to note that the youth areinfluential even at the family level and targeting them will implythat they will influence other members of the family at different agegroups.
Thebrainpower cup targets the clients who have the purchasing power.These are mainly the youths in Kuwait which is a rich country. Sincethe product is unique, and the people of Kuwait have the purchasingpower, the target clients will be the entire population comprising ofvarying ages.
Itis essential for the firm to make use of online markets in theintroduction of the cup in the target market. Kuwait is advanced interms of technology and therefore most people especially the youthcan be reached through online marketing. One platform which the firmshould utilize is the social media (Cahill, 2006). Social mediaplatforms such as Facebook and Twitter should be used to market theproduct.
BusinessEnvironment and Market Trends
Kuwaitoffers an extremely friendly business environment which allows fornew products to penetrate the market. This is mainly because thepopulation consists of learned people who facilitate the movement ofinformation about a new product. Unique products such as thebrainpower cup will even penetrate the market much easily.
Portersfive force model
Thebrainpower cup is a new product in the Kuwait market and there is noother supplier of the product. This is a great advantage to the firmas it faces no competition from other firms. This implies that therewill be no competition for suppliers. It therefore becomes apparentthat this aspect of the model does not exist. The product is beingintroduced into the market for the first time and the firm must beready to exploit the chance. It is essential to state thatcompetitors will hit the market soon.
Threatof new market entrants
Anybusiness that is bringing in huge profits will attract other businesspeople in the area. It is evident that the threat of new entrantsinto the business of the brainpower cup is real. The business islikely to attract new entrants who will offer intense competition andthreaten the profitability of the firm. Considering that thepopulation of Kuwait is highly informed, the new entrants will pose achallenge. The populace has a right to select the products they want(Kerin, 2006).
Thepower of suppliers
Suppliersof the firm selling the brainpower cup cannot dictate the pricessince they do not have the alternative buyers of their supplies. Thisis advantageous to the firm as numerous suppliers will be competingto supply to the firm hence leading to lowering of prices. It isessential for the firm to take advantage of this opportunity to makeprofits. However, considering the uniqueness of the product, theremight be few suppliers (Mitrega, 2006).
Thethreat of substitute products
Itis essential to state that the threat the substitute products isalways rife in markets across the world. The other beverages in theKuwait market will serve as substitute products and this will be ahuge threat for the brainpower cup. The people of Kuwait especiallythe youth will have to choose between the brainpower cup and othersubstitute products.
Bargainingpower of buyers
Asit has been mentioned above, the Kuwait people are learned andinformed. This implies that the clients will be exposed toalternative products to the brainpower cup. The buyers will thereforehave the bargaining power and this may affect the profitability ofthe firm.
Existingrivalry between suppliers
Itis evident that the beverage industry is booming and this impliesthat there will be immense rivalry amongst the suppliers. Thedistributors will also seek to form franchises with some of the firmsin a bid to compete effectively in the market.
Thebrainpower cup has the strength of targeting the youth as the marketsince these constitutes the majority in Kuwait. Additionally, thefirm has the strength of being the first to introduce such a productin the country. It is essential to note that the youth have a hugeimpact and influence in the market (Hooley et al., 200).
Itis essential to state that considering the product is beingintroducing for the first time in the country may pose as a weakness.There is a belief that the consumers are familiar with otherbeverages. The firm lacks the conviction of belief of how the productwill be received by the target market. Additionally, the firm is alsoweak in the sense that it is operating in a foreign market that it isnot familiar with.
Theuniqueness of the product offers a great opportunity. Consideringthat there is no other such a product in Kuwait is a greatopportunity for the firm to explore the market. It has also beenfound out that target market is open to new products and they embracethem fully which is an opportunity for the brainpower cup.
Themajor threats for the product in the Kuwait market are the newentrants. There is no doubt that the business will attract newentrants and the firm must create customer loyalty to ensure that itdoes not loose clients.
Internal& external competitive analysis
Internally,the major competition is expected to come from other drinks andespecially energy drinks. It is essential to note that the energydrinks have been in the market and the people are used to them inKuwait. Whereas the brainpower cup is a new and fascinating productin the country, it is evident that there are some people who willstill prefer the old energy drinks hence creating internalcompetition. Externally, the greatest form of competition may not bereal at the initial stages of the product introduction. However, asuccessful introduction of sale of the product will attract newentrants into the market. These might be international beveragecompanies which may come in to have a share of the fortunes.
Resource-basedanalysis of competitive advantage
Thecompany will solely depend on the production, marketing anddistribution as a way of making profits. However, the resourcesgained will depend directly on the amount invested in the threeprocesses mentioned above (Kotler & Armstrong, 2006). It isessential for the company to plough back profits into the firm inorder to increase the resource base. This will give the firm anadvantage over new entrants.
Thesituation in the target market from the research is one of customerswho are open to new products and who will embrace the brainpower cup.An analysis done by the firm indicates that the introduction of thebrainpower cup is the best business idea in Kuwait. There is also theaspect of business environment which is conducive and friendly forbusiness.
TheKuwait market has massive opportunities for new products especiallythe ones targeting the youth. There need to be a great and strongstrategy of entering the market. This would ensure that the firmexploits the opportunities.
Targetingand Positioning Process
Thefirm has already carried out the targeting process. The firm hasadditionally identified the target population which will besegmented. It is also essential to mention that the firm is wellpositioned in terms of resources to make an entry into the market.
Marketingstrategy for products and services
Thereare various marketing strategies employed to win the market. The useof the media which has the power to change people’s opinionsregarding products is one strategy (Ganly & Frank, 1994).Additionally, the product will be marketed on the basis being able tosolve problem. The brainpower cup solves concentration and focusissues. There will be campaigns to ask the people to interact andshare advantages of the product. Use of the social media will also bea priority for marketing the product.
Thepricing looked at the price of related products such as milk andother related beverages. The pricing also incorporated the purchasingpower and the willingness of the target customers to buy products atthe stated price. The firm also incorporated the cost of productioninto the determination of the price of the cup.
Thefirm will rely on the distributors of other beverages in the market.The firm has already established relationship with these distributorsacross Kuwait.
Thefirm has applied an integral promotion strategy. The firm hasinvolved personal selling as a promotion strategy. The firm has alsoemployed public promotions and advertising to promote the product.Advertising is aimed at informing the people of the availability ofthe product in the market (Khorshid, & Gulf Cooperation Council,2002).
Thefirm has not ignored the power of e-marketing and it has been used asone of the strategies to market the brainpower cup. Social media hasalso been used to market the product extensively in the Kuwaitmarket. E-marketing will definitely enable the product to penetrateall corners of Kuwait.
Thefirm has looked at the objectives and strategies in making themarketing budget. The budget has been moderate since most of thetarget population is in urban centers. Marketing budget has also beeninfluenced by the threat of new entrants and the current competition.
Thefirm is aware of the multi-dynamism status of the market andtherefore it has employed a complex marketing strategy (Grewal, &Levy, 2010). The firm has applied modern marketing strategies suchas social media and has placed sufficient controls in place.
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