Market Development Plan for Organic

¶ … Market Development Plan for Organic Smoothies

Orange Julius Organic Smoothie Alternative Market Development Plan

The marketing plan for Orange Julius Organic Smoothie will be developed for a short period of time of one year. Given the fact that the company will introduce a new product on the market it is recommended to develop short-term plans that will later be improved depending on how the sales evolve.

SWOT analysis on the new product:

Strengths: the product is 100% natural, with no sugar, or other additives; the price is extremely affordable; the company already has a very good image in the customers' mind from which the new product can benefit from; the product addresses customers of all ages.

Weaknesses: the company has not developed any organic products, which means it might be quite difficult to attract many customers from the beginning with this product.

Opportunities: the organic food market is in full expansion process.

Threats: many companies already have certain organic smoothies established in customers' preferences.

Hypotheses of the marketing plan: organic food consumption will increase, organic smoothies consumption will therefore increase

Objectives:

Reaching 10% of the organic smoothies market in the first 6 months

Increasing sales up to 12%

Improving the company's image as a health-oriented company

Marketing strategies:

Product and distribution strategy: in order for the product launch to be successful it is recommended to follow the same marketing vision throughout the launch and the immediate period of time. The following elements must be taken into consideration:

Launch period: it is recommended to connect the launch of the new organic smoothie with the Olympic Games, in order to emphasize the relationship between the product, health, and sports

Selecting distribution channels: it is recommended to select a short circuit

Controlling the launch of the new product must be performed by analyzing certain quantitative information, like: the degree of spreading the new product on the selected market, the degree of entering into consumption, and the speed of distribution.

Price strategy: it is recommended to establish a price that equals the average price of organic smoothies commercialized by competitors. The price must not be too high or too low. If the price will be too low, then customers will wonder whether the quality of the product is the reported one. If the price is too high, then customers might not be willing to try a new product that is more expensive than other products that have already been tested by customers.

Promotional strategy: promotional activities for launching the new organic smoothie must be very diversified and must address the following areas: press, radio, television, cinema, outdoors advertising, and print advertising. In such cases, the message can vary, the audience is high, credibility is moderate, flexibility is moderate, the duration of the action is permanent, and the required budget can be quite expensive.

Given the fact that there are several organic smoothies on the market developed by competitors, it is recommended to implement an aggressive promotional campaign.

MEMO

Re: Organic smoothie marketing plan summary

The following paragraphs focus on presenting the executive summary of the marketing plan developed by our team for launching the new Orange Julius Organic Smoothie.

The timing is very favorable for launching the company's new product, given the fact that more and more people orient towards organic food. It is expected that the new organic smoothie will turn out to be a success, and within the following year it will be clearly established as one of the preferences of most customers.

The reasons for which this product is expected to be successful rely on its characteristics. The product is natural and it does not contain any sugar or other additives. The product is very healthy, it is responsible for creating the energy required by the human metabolism. Even more, certain customers that bought other organic smoothies have reported to have replaced unhealthy eating habits with organic smoothies. The new organic smoothie can be made out of the same fruits as regular smoothies commercialized by Orange Julius.

The objectives of the marketing plan and marketing strategies include: increasing the market share by 10%, increasing sales by 12%, developing the image for the new organic smoothie, and expanding the company's overall image.

As mentioned above, more and more people turn to organic food, which means the company must take advantage of this market expansion period. Even more, after the new organic smoothie will be strongly established in customers' buying preferences, it is recommended that the company develops other types of organic food.

When launching a new product, the marketing mix is very i8mportant, as well as controlling the launch and the immediate period. The target market for the new organic smoothie is consisted of individuals aged 14-60, with medium income, medium to high education, health oriented. It is recommended that the company continues this direction by developing a new organic smoothie for children, in order to cover all age groups.

Regarding the pricing strategy, it is recommended that the price for the new organic smoothie equals the average price practiced by competitors for their organic products. As mentioned in the introduction, if the rice is too low, customers will have doubts regarding the products quality, on the one hand. On the other hand, if the price is too high, potential customers might be reluctant to paying a higher price for a new product that they might not even like.

The distribution of the new product must follow a very short and flexible channel. This way, the time between production and consumption is reduced. Also, costs will also be significantly reduced, which will allow the company to establish an average market price for the new product.

The promotional campaign must be a very complex one. It must include the press, radio, television, cinema, outdoors advertising, print ads. In such conditions, the budget will be quite high. However, such a complex campaign will allow the new product to gather the required attention.

Product Concept Sheet

Company name: Orange Julius

Brand name: Orange Julius Smoothie

Product name: Orange Julius Organic Smoothie

Concept: nowadays, customers are more and more health-oriented. This includes special attention paid to alimentation. More and more individuals orient towards organic foods, especially regarding specific types of food consummated on a daily basis. Fruit smoothies are included in this category. For example, people drink food smoothies when trying to chill, when playing sports, when eating, when spending time in front of the TV, or with friends, or during all sorts of leisure activities. Given those circumstances, it is only natural that people orient towards healthier, organic smoothies. In order to address this market segment, Orange Julius will introduce the new Orange Julius Organic Smoothie. Target market: active individuals aged 14-60.