Executive Summary
The four-year marketing plan for DraftServ has been formed by its co-founders in order to get extra support in monetary terms. This will enable its growth and keep its employees informed about the company’s current position and course. Although DraftServ Technologies started a few decades ago, the organization has experienced more-than-expected demand for its commodities. In fact, the research has demonstrated that the target market of beverage-minded consumers and retailers would like to purchase more beverage dispensing products than what DraftServ is currently providing. The company is focusing on expanding its product line as well as adding new product lines. In addition, DraftServ has the plan to find opportunities for online sales. The marketplace environment has been very responsive to the organization’s high-quality products. The beverage dispensing mobile systems are professionally designed with refrigeration facilities with logos and slogans reflecting the concerns of outdoor businesses all over the world. Within the next five years, DraftServ can multiply its distribution, dispense new product brands, and lure new customers.
Company Description
The company description section must give a detailed analysis of how the company came into existence by examining its initial founders. In addition, it will introduce the product description and how the actions of the founders benefit the whole company (Acker, 2010).
DraftServ was started two decades ago by business-oriented entrepreneurs Lucy Neumann and Nick Russell. Neumann and Russell, who have been comrades since college decided to form a market for beverage dispensing products with unique features. The company’s initial product bears its slogan, “Anyone can pour a drink. And many people try. What’s difficult is making the self-service environments safe, better integrated, more controlled, and more profitable than competing full-service environments. That’s what DraftServ does.” (DraftServ Technologies, 2014)
DraftServ technologies are currently operated by large retail go-downs that specialize in beverage products. Most of these stores are found in northern New England, California, the Northwest, and a few states in the South. DraftServ has a high-quality beverage Dispensing Engine for controlling all kinds of beverages and monitoring out-spills. This plan will show an outline of how DraftServ would like to introduce new brands, enlarges its distribution, identify new market opportunities, and give back to society.
Situation Analysis
This section entails identifying the strengths, weaknesses, opportunities, and threats that the company has in a detailed manner (Adcock and Bigled, 2001). The marketing environment for DraftServ technologies is promising. However, it contains some limitations that the company must overcome. The SWOT analysis for DraftServ Company is highlighted below.
The Marketing Goals of DraftServ Technologies
Dacko (2008) avers that the mission statement should be stated clearly. The company’s financial and non-financial goals should be evident to all its customers. DraftServ’s mission is to become a leading manufacturer and seller of completed upgraded dispensing management and control systems. The company will offer other features such as data aggregation for tracking and reporting. In addition, it will develop brand activation through removable customs facial and video interfaces for beverage companies. DraftServ aims at motivating entrepreneurs to get into the beverage business and enjoy the new beverage dispensing products and services. Likewise, DraftServ aims at designing health programs for the production of healthy beverages.
In the next four years, DraftServ seeks to attain the following goals:
Financial Goals
- Get financing to enlarge production capabilities, multiple distributions, and introduce four new brand channels.
- Raise profits by at least 50 % per annum.
- Give donations of at least $30,000 to food conservation companies.
Nonfinancial goals
- Introduce two new product brands—customized logo beverage dispensers and lightweight machines.
- Explore new geographic markets, in the Southwestern and Mid-Atlantic States.
- Form a successful Internet website to keep a strong rapport with beverage companies.
- Develop its beverage preservation program aimed at helping communities raise money to buy new lands to expand their beverage businesses.
Marketing Strategy
The Target Market
The target market where the company anticipates selling its products must be realistic. The area should portray a history of product usage (Guiltinan, 2009). The targeted market for DraftServ technologies is in three lots. The first category consists of non-alcoholic beverage companies like Coca-Cola, Fuze Beverage Company and PepsiCo Inc. The preceding target market involves food industries like Nestle Co, Altria Group Co, Kraft Foods Inc., General Mills Inc., and finally Campbell Soup Co. The third target market comprises small-scale private enterprises Salem GBH and traditional medication companies such as POM brilliant. As per the company slogan, ‘Anyone can pour a drink. And many people try. What’s difficult is making the self-service environments safe, better integrated, more controlled, and more profitable than competing full-service environments. That’s what DraftServ does” (DraftServ Technologies, 2010), DraftServ control Structures have been established from the crumbled to offer the required operator, consumption, and product figures as well as the analysis and unification needed to get the rate out of the self-service knowledge. We intend to offer a beverage allotting machine to regulate all aspects of dealing and checking dispenses, secondly, we offer our products that are equipped with devices for tracking and reporting on all consumption records
Finally, we intend to aid our clients to access to administration of the DraftServ Vending Facilities Structure for full customer rendezvous. The DraftServ elucidations discourse and accomplish all of these vibrant traits, and our crew can support the plan for the faultless norm utilization of these structures so that the utilization is an assured victory. DraftServ has lately hurled its original chain of unified permanent and movable structures, whole with freezing, certification necessary to magnificently and expertly allot drinks. These resolutions are plunged into sites deprived of any peripheral fixative assets. This meritoriously offers a full drink allotting scene in a strongbox for event supervisors and restaurant operators or anybody else who want to craft exceptional controllable know-how.
Distribution Strategy
Equally, distribution strategies are quite important to ensure that your product reaches the intended customer using the right channel and the right procedure (Kotler & Armstrong, 2007). Currently, DraftServ is marketed through national and local organizations scattered along California, all along the North the South finally north. The climatic conditions and seasons determine the sales at designated shops that sell beverages. During the rainy season, DraftServ Technologies obtain much of its information concerning overall company progress in different areas and at different retail outlets from its trade program, Beverage dispensing company Association. In the next four years, DraftServ plans to expand distribution retailers throughout the country, aiming next on the Southwest and Mid-Atlantic. In addition, DraftServ intends to enlarge online sales by giving customized brand line through the Internet only.
Market segments
Those small-scale entrepreneurs purchase slightly over 50 percent of all branded beverage dispensing products. The highest purchase is prevalent in large beverage companies which stand at 74 percent. Purchase behavior is expected to differ among the level of scale per business. Large-scale businesses are expected to purchase more compared to small-scale businesses.
Marketing Tactics
This section highlights the main core competitors, the target market, and the efforts that will be employed to win more customers and outdo the competitors in the same field of production (Kerin, 2012). The following 5C’s are used in defining the market strategy and tactics. First, the Customer – Determine what you need to satisfy and from which customers use the cost and benefit analysis. Secondly, the Company – weighs if your firm can satisfy that client’s needs. For example, it may entail evaluating whether your company has the right product line and/or technical expertise (Rowland & Howe, 2000). This can be easily done using a SWOT analysis tool which will be explained in later sections. Third, Competition – Determine the key competitors of your company’s products in satisfying the customer’s needs (Giovanni, 2004). Is it an active competitor or a potential threat? What are their products exactly? What are their strengths and weaknesses? Fourth, Collaborators – Determine if there is any external firm that can assist the company such as suppliers, distributors, etc. Finally, Context – Determine if there are any limitations such as Political issues that involve legal problems, trade regulations, taxation, and labor laws. In addition, consider economic concerns such as growth rate, labor costs, and business cycle stage. Finally, highlight social impacts such as demographics, education, culture, and Technological developments that impact cost structures (Abell, 2012).
DraftServ will use its core competencies to attain a sustainable competitive advantage, which would allow it to outperform its competitors in a related product market Already, DraftServ has put in place core competencies in (1) selling a high-quality, a new brand product whose logo is easily recognized among end users of the product; (2) building a sense of communism among beverage companies who buy the brands; and (3) creating a reputation with retailers as a reliable producer, so as to deliver the exact number of products as per the request. The firm wishes to improve on these competencies through marketing efforts that raise the number of brands produced and distribution channels.
By creating unshakable rapport with consumers, retailers, and suppliers of beverage products and other related goods and services, DraftServ has a belief of creating a sustainable competitive environment over its competitors. No other company of the same product can speak to its end users with as much conviction as “Go drink outside”!
The key competitors as discussed earlier in the 5C’s must be listed in a marketing plan (Kerin & Roger, 2012). For instance, indoor retail sales comprise approximately $ 7 billion worth of products per year, from a wide range of beverage equipment. The indoor market has many channels including Coca-Cola Company, Del Monte, Bass Pro Shops, Cabello’s, and Patagonia. Those are among the most recognized companies that deal with beverage dispensing products. Other competitors that have a portion in the market, such as Oak technologies and the Conservative company sell beverage conservative facilities.
Furthermore, it is imperative to identify the product marketing strategies your company will incorporate to ascertain that your product is maintained in the market (Kotler & Keller, 2012). Therefore, DraftServ Sky currently offers a line of high-quality beverage dispensing products including data aggregation for tracking and reporting. In addition, it offers brand activation through removable custom facials and video interfaces. Those services bear the company logo and the slogan, “Anyone can pour a drink. And many people try. What’s difficult is making the self-service environments safe, better integrated, more controlled, and more profitable than competing full-service environments. That’s what DraftServ does.” (http://www.draftserv.com/).
The company has complete research on most beverages and understands the products the consumers prefer. In the next four years, DraftServ plans to enlarge its brand line to institute customized beverage dispensing items. Customers may choose a logo that represents their beverage and add a slogan to match the logo. This strategy will maintain the concept updated and prevent it from becoming diluted in many variations.
The second way in which DraftServ plans to raise its product line is to introduce less bulky products that are easily portable. These dispensers would also be of various colors, with a choice of logo and a slogan. In addition, every brand would bear DraftServ’s technology logo.
Promotional Strategy
An Integrated Marketing Communication model will be used. This involves applying consistent application of brand messaging across marketing channels and using different promotional channels in reinforcing the consumers. In fact, several procedures are followed. The first stage is tactical Coordination and Marketing Communications, which will cost AUD 10,000. The second is to redefine the Scope of Marketing Communication which will cost AUD 10,000. The next stage is the application of Information Technology which will cost another AUD 10,000. Finally, the Financial and Strategic Integration stage will cost AUD 20,000. All these will total a budget of AUD 50, 000.
DraftServ communicates with the users of its products and retail shops in different ways. Information about DraftServ—the firm as well as what it produces —can be found through the Internet, direct mail, or in person. The product information can be availed through conventions and seminars that will be held all over the region on scheduled dates. Furthermore, door-to-door promotions are employed in order to reach those customers in remote areas.
Pricing Strategy
The pricing strategy should be realistic such that it can take a competitive advantage in the market. Prices should be set according to the existing prices to attract customers in order not to overprice or underprice your products (Chekitan & Don, 2005). DraftServ brands are priced with the competition in mind. The company is not interested in charging high prices to indicate luxury or prestige or trying to accomplish the goal of choosing low prices by offering high quantities of products. The machine will be priced according to its capabilities. Small-scale beverage dispensing machines will be priced at $ 120 and dispensers that can hold a huge capacity of beverages normally in large companies will be sold at $150.
In conclusion, an impressive marketing plan should include the basic areas embracing business description, mission and vision, marketing goals, and marketing strategies. In essence, product description, marketing tactics, and SWOT analysis come in handy in marketing (Goldstein & Lee, 2005). A marketing plan which is well organized proves that the business firm will continue its operations in the future without making losses.
References
Acker, D. (2010). Developing Business Strategies. USA: John Wiley and Sons
Adcock, J, & Bigled, D. (2001). “Introduction”. Marketing: principles and practice. Australia: Printing Press.
Chekitan, S. & Don, E (2005), “In the Mix: A Customer-Focused Approach Can Bring the Current Marketing Mix into the 21st Century“. Marketing Management 14 (1).
Dacko, S. (2008), The advanced dictionary of marketing. Sunderland: Sinauer Associates
DraftServ technologies retrieved on 3rd September 2014 from. http://ww w.draftserv.com
Giovanni, F.(2004). Good marketing strategies. London: Pioneer Press
Goldstein, D. & Lee, Y. (2005), “The rise of right-time marketing”. The Journal of Database Marketing & Customer Strategy Management. P. 35.New York Times: University press
Guiltinan, T. (2009).Marketing Management Strategies and Programs“, Oxford University: McGraw Hill
Kerin, A. (2012). Marketing: The Core. McGraw-Hill: Ryerson.
Kotler, C, & Armstrong, N. (2007), Principles of Marketing; United Kingdom: Pearson education.
Kotler, P & Keller, L. (2012), Marketing Management 14e; Washington Dc: Pearson Education Limited.
Rowland, D & Howe, V. (2000). Ten Books on marketing plans. Cambridge: Cambridge University Press.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
