Business Plan for Detox Drink

Introduction

The following report includes the marketing plan for launching a new
detox drink product in the Malaysian Market. The product will be
launched under the brand of Detox Cafe which is a part of Detox
beverages. The detox drink market has been growing for past few years
as more people are moving towards a healthier lifestyle. Consumers
have high spending power and per capita online shopping and number
of regular online user has increased over the past few years and is
expected to rise more in the future. The target market will be people
from the age group of 15 to 50 years who are conscious about their
health and spend time working out. There are number of health drinks in
the market, but detox drinks will specialize in pure natural ingredient,
no sugar or added preservative to it.

The Goal.

The GOALS of the business is to promote the product awareness,

preference and setting a target sale figure. Also Detox Drink goal is
making the world a healthier place, and low cost for the business.

A marketing plan is a document which comprises of :

 Analysis of the current marketing situation,

 Threats and opportunities of the firm,
 Marketing objectives and strategy specified that has the 4 Ps,
 Plan of actions, and
 Projected budget and other financial statements
Section 3 : Company Description

In Malaysia, Detox Cafe has a variety of products of coffee, tea, purified water
and other natural beverages. Using this marketing plan, it plans to introduce
non-milk, high in glucose detox drink.

Mission

The mission of the organisation is the unique purpose that helps in

distinguishing the company from its competitors and defines its boundary of
working. The mission statement is the organisation’s primary objective that
encapsulates its core values (Drummond, Ensor, & Ashford, 2008).

• What aspects of the mission are prioritised?

• Influence of the cultural environment
• Social responsibility
• Expectations of individuals ethical behavior
• Whom does the organization serve?
• Whom should the organization serve?

1. 9. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 8 The mission statement is a broad description of a firm’s
objectives and the scope of activities it plans to undertake and attempts to
answer two main questions (Grewal & Michael, 2014):
2. 1. What type of business are we in? 2. What do we need to do to
accomplish our goals and objectives? These questions are answered at the
highest corporate level before any marketing activity is initiated. To
understand the role of the organizational mission in strategic planning it is
important to understand the difference between mission and vision. The
mission statement, seeks to answer the question: ‘‘What business are we
in?’’ It is a clear and concise statement (a paragraph or two at most) that
explains the Organization’s reason for existence. Whereas, the vision
statement seeks to answer the question: ‘‘What do we want to become?’’
(Ferrell & Hartline, 2010). Tata Beverage’s mission “We believe passionately
in making the world a better place through life-enhancing sustainable
hydration” (Tata Global Beverages, 2014). Tata Beverage’s vision “To
become the global leader in branded ‘good for you’ beverages“ (Tata Global
Beverages, 2014). Thus the mission and vision of the Tata Beverage are in
sync and support each other. Situational Analysis Organizational Core
 Competencies Analysis “Core competency is a unique capability acquired by
a firm over a period of time in form of a resource, operations facility,
specially skilled manpower, knowhow or delivery of service which gives the
firm sustainable competitive advantage in future in quality, design,
production or distribution of a product/service or in cost of the product and
is viewed as a relative value addition by a prospective Customer” (Gupta,
2013). Source: (Drummond, Ensor, & Ashford, 2008)
3. 10. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 9 The above figure shows the importance of core competencies
in the strategic plan of an Organization. Following are the three
competencies of Tata Beverages: 1. A great product 2. Good value for the
price and 3. Good service Tata is known in the market to provide high
quality products at a competitive value to its customers. They are also
known to produce and launch products which are demanded by customers.
Environmental Analysis PESTLED When we start analysing the
macroeconomic factors we have to identify critical variables which are
going to influence the supply and demand of products and costs of its
business activities (Johnson & Scholes, 1992). The "radical and ongoing
changes occurring in society create an uncertain environment and have an
impact on the function of the whole organization" (Tsiakkiros, 2002). A
number of checklists have been developed as ways of finding and analysing
various factors that are going to affect an industry or an organization.
PESTLED analysis is one of the frameworks which help finding and various
factors that are going to affect an industry or an (Bull, Marketing
Presentation 2 & 3, 2014): Source: (Bull, Marketing Presentation 2 & 3,
2014)
4. 11. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 10 Additionally there are two more factors: Environmental: not
only affects the seasonality of the product but also affects the supply of raw
material and distribution activities Demographics: to study the change of
population demographics of the market for sustainable growth (Bull,
Marketing Presentation 2 & 3, 2014) The analysis documents not only the
impact of these factors on the business but also on each other. The result
analysis is then used to identify opportunities, to make business and
strategic plans and to make contingency plans for threats (Byars, 1991).
PESTLED analysis is a useful strategic tool for understanding growth or
decline, business position, potential and direction for operations in any
market. The headings of this framework are helpful in assessing a situation,
and can in addition to SWOT and Porter’s Five Forces models, be applied by
companies to assess a marketing proposition and formulate strategic
 directions (Kotler & Keller, Marketing Management, 2012). PESTLED of
Australia Political Australia has a liberal-capitalistic democracy. The state
interferes in the economy through the use of various fiscal policies;
International businesses are affected as taxes may keep on varying from
time- to-time and this may in turn affect the currency exchange rate.
Economic Source: (The World Bank, 2014) • USD 961 Billion (2012
estimate)GDP • 19Rank • USD 59,570Per Capita Income Characteristics of
Australian Economy • Continuous Growth • Low Unemployment • Low
Inflation • Low Public Debt • Stable Financial System
5. 12. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 11 The consumers have high buying power in Australia and this
is reflected by comparatively higher prices of consumer products in the
nation. Due to high value of Australian dollar the manufacturing sector is
weak. Australia has benefitted from rising global commodity prices as
demand in Asia especially China has increased. Australia has abundant
natural resources and is a major exporter of food and energy. Australia is a
comparatively open market with low restrictions on import. Australia has
bilateral free trade agreements (FTAs) with: New Zealand, Chile, Thailand,
Singapore, Malaysia, and the US, moreover it has a regional FTA with ASEAN
and New Zealand. Currently it is negotiating agreements with Asian
countries including India, China, Japan, Indonesia, and the Republic of
Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council
countries (Central Intelligence Agency US). Social Source: (Central
Intelligence Agency US) Following is the result of self-assessment of the
population on their own health: Source: (Australia bureau of statistics,
2011) Total Population: 22,262,501 Population growth rate: 1.11% Urban
population: 89% of total population (2010) Sex Ratio: 1.01 male(s)/female
(2013 est.) Education expenditures:: 5.1% of GDP (2009) compared to the
world: 7.1% Obesity in Adults: 26.8% (2008) country comparison to the
world: 44 This shows that obesity is prevalent in Australia Rate of
Urbanization: 1.2% Annual Rate of change Literacy: Total population: 99%
Male: 99% Female: 99% (2003 est.) High literacy, therefore, well-educated
population
6. 13. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 12 Close to 40% of people in the age group of 15-34 self asses
themselves in Very Good health and thus are health conscious. Source:
Australian Health Survey (2011-2013) (Australia bureau of statistics, 2011):
Technological The benefits of e-commerce to the economy in terms of
reduced costs, higher quality, new products and larger markets are
significant highlights in a country’s international business. Australian e-
 commerce sales have increased from AUD 27 Billion in 2010 to 37 Billion in
2013. Sales have continuously increased by a margin of AUD 3-4 Billions
every year. The Australian average online spending has increased from AUD
1048 in 2006 to AUD 2108 in 2013 (Merlinfx, 2013). Legal Australia has
practical structure of financial regulations that allow business to invest
without undue delay. A new business can be established in Australia within
two days compared with an average of 20 days in most of the other
countries. Australia ranks 11 out of 189 countries on the ease of doing
business index, below is the summary: Source: (The World Bank, 2014)
Major Risk Factors • Being overweight or obese • Smoking • Poor diet and
nutrition • Blood Pressure
7. 14. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 13 Environmental The mid part of the continent is too dry for
inhabitation and most of the population is concentrated in the coastal
region. There is huge variation in climatic conditions and it can range from 0
degree Celsius to 50 degree Celsius. (Australian Government Bureau of
Meterology, 2014). Source: (Central Intelligence Agency US) Demographics
Most of the population are in the age range of 20 – 45 years. Following is
the demographics: Source: (Australia bureau of statistics, 2011): Market
Analysis Porter’s 5-Forces: The essence of strategy formulation is coping
with competition. The state of Competition in a market can be explained by
five forces: Source: (Porter, 1997) Area of Australia • Total: 7,741,220 Sq km
• 6th largest country in the world • Land: 7,682,300 sq km • Water: 58,920
sq km
8. 15. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 14 Once the above analysis is done a company can makes a
strategy that places itself in the best position among the competitors ad
also makes it immune to shifts in the future market trends (Porter, 1997).
Jockeying for Position: 1. Competitors are numerous 2. Market growth is
slow 3. Exit barriers are high 4. Product lacks differentiation Threat of New
Entrant: •Economies of scale •Product differentiation •Capital
requirements •Cost disadvantage independent of size •Access to
distribution channel •Government Policy Bargaining Power of Customers
•Variety of choices •Move to another similar product from different
producer Threat of Substitute •Customers move to substitute products
•Threat not only from competitors but also from substitutes Bargaining
Power of Suppliers: •Monopoly •Pressure on producers •Raise prices or
reduce quality
9. 16. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 15 Porter’s 5- Forces Analysis of Energy Drink Market in Australia
 Market analysis for Energy drinks 1. Market volume increasing per year
Source: (Euromonitor International, 2013) 2. Volume per capita increasing
per year Source: (Euromonitor International, 2013) Threat of Entrants •
High • Low barriers to entry in energy drink market Bargain Power of
Suppliers • Low • Large number of suppliers available Bargain power of
Customers • High • Variety of good brands to choose from Threat of
Substitutes • High • Various products like soft drinks, herbal drinks, protein
shakes and pre workout supplements like NO explode
10.17. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 16 3. Market segmentation by types Source: (Euromonitor
International, 2013) 4. Market share by company Source: (Euromonitor
International, 2013) 5. Distribution breakup Source: (Euromonitor
International, 2013)
11.18. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 17 Customer Analysis Marketing is about identifying and
meeting human and social needs (Kotler & Keller, Marketing Management,
2012) profitably. When directed towards specific objects that might satisfy
needs, needs become wants (Kotler & Keller, Marketing Management,
2012). Marketing is a process of identifying and converting consumer
“wants” into products and services. Marketing begins with customers
(identify their needs) and ends with customers (satisfy these needs).
Companies succeed only when they choose their target market carefully
and prepare a customized marketing plan for them. A company can
carefully define its target market yet fail to correctly understand the
customers’ needs as it is a complex process. To cater to Customer needs,
difference between responsive marketing, anticipative marketing, and
creative marketing needs to be understood. Companies are trying to
become more market-oriented and their major efforts go in retaining
customers. Customer-retention has become more important than
customer-attraction because attracting new customer costs five times more
than pleasing an existing one. (Kotler P. , Marketing Management
Millenium Edition, 2002). Competitor Analysis Competition is the most
critical factor in marketing management and includes all of the actual and
potential rival offerings and substitutes that a buyer might consider. Types
of needs Stated Real UnstatedDelight Secret Responsive Marketers • Tries
to find and fill a stated need Anticiptive Marketers • Looks ahead to the
needs that customers may have in future and provides a solution for the
same Creative Marketers • Creates solutions that customers did not ask for
and that customers have not thought of
12.19. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 18 Competition can be broadly divided into following categories
on the basis of substitutability: Following are the major direct competitors
in the energy drink market segment in Australia:  V  Red bull  Monster In
addition to above there are various substitute products available in the
market. These are the indirect competitors. Market Type Monopolistic
Competition: There are large numbers of market players that offer similar
products and are thus being forced to differentiate themselves from others.
Competitors Topology Most of the competitions present in this industry are
Prospectors. New products, flavours, limited editions are being
continuously launched. This is a rapid changing market and companies have
to differentiate on the basis of marketing campaigns, offers or package
design as there is not much to differentiate on the product itself. • All the
companies that supply the same service. Can also include substituents • All
the companies that compete for the same consumer buying power • All the
companies in the same industry • Competitors that produce similar product
at similar price Brand Competi tion Industry Competi tion Form Competi
tion Generic Competi tion
13.20. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 19 Competitor’s Strategy The current market is increases so it
provides a chance to new entrants to make a place in the growing market.
They try to build customer intimacy to gain and maintain the market share
of their respective products. Competitive Positions The existing competitors
are market leader. Market Leader strategies Expand the market by
attracting new customers and increasing the frequency of current users.
Advertisement Strategy for Brand Management All the available market
brands try to connect to customers of different taste on the basis of
advertisement campaigns. 1. Red bull: Promotes “gives you wings” and is
associated with adrenaline sports like snowboarding and F1 race. Source:
Red Bull Website Gallery 2. Monster Energy Drinks: Associated with motor
sports mostly biking. They sponsor events like Dew Action Sports Tour and X
games. Source: Monster energy drink website
14.21. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 20 3. V energy drink: Ad campaigns include stunt driving and
sponsorship to NZ extreme games. Source (nbr.co.nz) 4. Rockstar Energy
Drink: Associated with partying and having a celebrity lifestyle Source:
Gallery Plus SWOT Analysis The overall evaluation of a company’s strengths,
weakness, opportunities, and threat is called SWOT analysis. It is the way of
monitoring the internal and external marketing environment for an
organisation (Kotler K. , 2012). It is a general tool designed to be used in the
 preliminary stages of decision-making and as a precursor to strategic
planning in various kinds of applications (johnson). SWOT studies internal
and external environmental factor which may affect business at any point
of time (Bull, Marketing management, 2014). Internal environment analysis
evaluates company’s strength and weakness. External environment
evaluates opportunity and threats for an organisation. External
environment should monitor the micro economical and macro-economic
factors that can affect its ability to earn its profit. The SWOT matrix
illustrates how the external opportunities and threats facing a firm can be
matched with its internal strengths and weaknesses to result in four sets of
possible strategic alternatives. It enables mangers to create various kinds of
growth and retrenchment strategies (Wang). The SWOT matrix includes
(Wang):
15.22. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 21  SO strategies focus on how to use strengths of a business to
take advantage of opportunities (Wang).  ST strategies attempt to utilize
the strengths of a company to avoid threats (Wang).  WO strategies aim to
eliminate weaknesses to open new opportunities (Wang).  WT strategies
are basically defensive and mainly act to minimize weaknesses and avoid
threats (Wang). Hence considering the new opportunity Tetley (brand of
TGBL) has considered launching a product which is decaffeinated energy
drinks and it will be using extracts of green tea for energy source with no
caffeine and sugar. SWOT matrix analysis of TGBL Source: (TGBL, Global
company profile (TGBL), 2013) Strength Wide geographic footprint with
strong presence in global market: TGBL is second largest tea producer in the
world with operations spanning over 15 countries throughout the world.
Some of its popular brands like Tetley reach out to 70 countries; about 45
million cups of tea are drunk per day around the world. Some other famous
brands present are Grand in Russia, Vitax in Poland, Jemca a leading brand
in Czech Republic. In India, Tata tea brand enjoys a super brand status and
the market share is over 18% (TGBL, TGBL Swot analysis, 2012). Focussed
on sustainable initiatives: TGBL focuses on sustainable initiatives which are
ethical sourcing, packaging, etc. In packaging company follows the target of
no packaging to landfill by 2015. Company also focuses on reducing carbon
emissions and also developing a corporate water strategy which includes
quantified water reduction target. Therefore, focus on sustainability
initiatives in order to minimise the adverse impact on environment which
enhances the company’s brand image (TGBL, TGBL Swot analysis, 2012).
16.23. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 22 Increased investments in Innovation (TGBL, Global company
 profile (TGBL), 2013). Weakness Overexposure to commodity based
business: TGBL core business comprises of tea and coffee, which are two
highly commoditized businesses. Overdependence on two commodities
would exposes the company’s profitability to external factors like demand
supply gap, production status and inflation (TGBL, TGBL Swot analysis,
2012). Low profit margins: Continuous rise in competition as well as
increase in rise of raw material has led to reduce the profit margins of the
company. And the trend is going on to be the same which would impact the
company’s investments in other fast emerging value added product. Hence,
keeping in mind the present industry scenario poses negative outlook for
TGBL financial performance, and there by affecting its position in global
beverage market (TGBL, TGBL Swot analysis, 2012). Opportunities Add a
new product mix in Australian market: As Tetley brand represents TGBL in
Australia and has different products offered in tea market. TGBL is entering
into Energy drink market with a unique drink which is green tea drink which
is full of powerful antioxidants ,assist in fat oxidation and by increasing
energy expenditure helps in burning body fat. It gives you more energy than
energy drinks without sugar and caffeine (TGBL, TGBL Swot analysis, 2012).
Rising target Market: As discussed in market analysis as well, Australia is
having obesity a major concern in their population, energy drink without
caffeine and sugar can be targeted to this market segment. Also it can be
projected as sports drink where it will be facing brands like V and Red bull
(TGBL, TGBL Swot analysis, 2012). Regulations by governments for caffeine
contents in Energy drinks: There are various tests carried out by
governments of Australia and from a sample of 70 energy drinks more than
77% of energy drinks have high caffeine content were over the accepted
limit (Euromonitor).
17.24. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 23 Threats Intense level of competition: Presence of market
leaders like Red bull, Monster, V will give tough competition in Energy drink
market segment. High marketing cost: In order to launch the new product,
intensive marketing will be required to make target customer aware the
existence of brands (TGBL, TGBL Swot analysis, 2012). Impact of soaring
input prices on margin: There is continuous rise in the production cost of
tea as because of the dry season. All the major tea producing nations like
India, Sri Lanka and Kenya are facing this weather problem due to which
there is decline in production of Tea production and on the other hand
there is a continuous rise in demand on tea and coffee (TGBL, TGBL Swot
analysis, 2012). Critical Issues One of the key issues in entering Australian
market would be the government regulations on the caffeine content in
 energy drinks. As already mentioned in SWOT, government had banned five
energy drinks in Australian market because of high caffeine content. So
keeping a check on the level of caffeine would play a key role in the survival
of the product in the market. Another issue would be the wide variety of
energy drink products in the market. There are a number of well-
established energy drink brands (example: Red Bull, V etc.) in Australian
market and it is a restricting factor to enter to the market. But as our
product is caffeine free and more of herbal, it would be a success because it
would attract more people as majority of Australians are health conscious
or turning to be health conscious. Initially pricing the product will be an
issue and price is an important element that contributes to the revenue and
profit. Thus the profit margin on the product would not be high because of
the competition. Public should be made aware of such a product as it is first
of its kind in the Australian market. This would require good initial
campaigning. But the product also should release along with the
campaigning as it would help people use the product and experience the
advantages by themselves. Critical Issues Strong regulations by Government
for caffeine content in energy market Adding a product mix in Australian
market Impact of soaring input prices on the margins
18.25. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 24 Marketing Goals and Objectives Marketing goals and
objectives outlines the expected outcomes of a marketing plan. Having
good goals and objectives is vital because these become the basis for
measuring the success of the entire marketing program. Goals Goals should
be designed in such a way that it would not only help set milestones for
evaluating marketing performance but also motivates managers and
employees. Goals help in the development of objectives (Ferrel & Hartline,
2010). The goals should be SMART (Bull, Marketing management, 2014).
Source: (Bull, Marketing management, 2014) Objectives Typically, the
marketing objectives include market share, return on investment. But for
launching ‘Energy drinks’ it is required to have different objectives such as
(Mark Beard, 2011):  Product Awareness – to create awareness amongst
the target audience  Preference – to make the energy drink preferred over
the competitors  Set Target – to set the target figure for sales revenue and
market share within specified timeline What is TATA trying to achieve
through Tetley Energy drink A healthy drink that would help the world to be
a better place, just as the organization’s mission says. TATA would give
importance to the triple bottom-line (people, planet and profit) which
definitely defines the marketing objectives and the marketing goals would
be tailored accordingly.
19.26. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 25 Target Market Target marketing is aiming at specific target
customers (Perrault & McCarthy, 2006). Source: (Perrault & McCarthy,
2006) Source: (Perrault & McCarthy, 2006) All customer needs Some
Generic Market One broad product- market Homogeneous (narrow)
product- markets Single target market approach Multiple target market
approach Combined target market approach Market- oriented Strategies
Single Target: Segmenting the market and picking one of the homogenous
segments Combined Target: Combining 2 or more submarkets into one
larger target market as a basis for 1 strategy Multiple Target: Segmenting
the market and choosing 2 or more segments, then treating each as a
separate target market needing a different market mix Narrowing down to
specific product-market Segmenting into possible target markets Selecting
target marketing approach
20.27. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 26 Target Market for Tetley The product will be targeting the
following population segment: Marketing Strategy and Tactics Marketing
manager defines the mission, marketing and financial objectives, and needs
the market offering is intended to satisfy as well as its competitive
positioning. All this requires inputs from other areas, such as purchasing,
manufacturing, sales, finance, and human resources (Kotler & Keller,
Marketing Management, 2012). Market-oriented strategic planning is the
managerial process of developing and maintaining a viable fit between the
organization’s objectives, skills, and resources and its changing market
opportunities. The aim of strategic planning is to shape the organization’s
businesses and products so they yield target profits and growth. Strategic
planning takes place at four levels: corporate, division, business unit, and
product. Marketing Strategy for Tetley The key to the marketing strategy is
focusing on the health-conscious customers. Since there are many energy
drinks available in the market, Tetley will have to position its energy drink
strategically. Rather than being innovative in its product, it should be
innovative in terms of its promotions and advertising. Marketing Mix
Marketing-mix models analyse data from a variety of sources, such as
retailer scanner data, company shipment data, pricing, media, and
promotion spending data, to understand more precisely the effects of
specific marketing activities. Marketing mix consists comprises of 7Ps.
Target Market People from the age range of 15 to 35 both male and
females Health conscious people preferably involved in regular work out
People who are trying to switch to a healthier lifestyle and want to give up
soft drinks
21.28. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 27 Product / Service Product and brand managers have many
decisions to make as they seek to develop the best products and
communicate their features and value to the customers (Bull, Marketing
management, 2014). Product – Tetley Energy Drink: The characteristics of
Tetley Energy Drink are:  First Energy drink in the market with Tea Extracts
 Non-milk based  High in glucose-sucrose  Excellent source of vitamins
and minerals Place – Distribution Distribution means delivering the product
to the right place at the right time, in right quantities and at right price. It
comprises of seven attributes: Marketing Mix Product / Service Place –
Distribution Price PromotionPeople Process Physical Evidence
22.29. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 28 Source: Adopted from (Chopra, 2008) The essence of
managing distribution lies in the emphasis from transaction-based selling to
relationship marketing. Right distribution strategy helps in managing
inventory, controlling costs, recognising importance of intermediary
customers and managing supply chain (Bull, Marketing management, 2014).
Effective distribution strategy involves: Source: Based on (Bull, Marketing
management, 2014) Marketing Mix Location Transport Channels
CoverageDelivery Availabilit y Inventory Review the distribution
environment •Learn what the customers want •Decide on outlets •Learn
about costs •Determine changes •Prepare an action plan Establish
distribution objectives and channel strategy •Competitive scope •Positional
advantage •PLC stage •Market leader versus challenger/follower. Design
the distribution structure •Length – the number of intermediary levels
•Intensity – ranges from exclusive to selective to intensive distribution
23.30. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 29 Distribution of Tetley Energy Drink From the PESTLED
analysis, it can be observed that e-Commerce is growing in Australia. Online
shopping will be the main channel of distribution. Apart from online
shopping, the product will also be available in leading supermarket stores
like Woolworths, Aldy, Coles, etc. Tetley will be positioned at the middle
shelves. It will also be available in gym vending machines, at beach side
cafes and other similar places where people come for working out. Price It
is very crucial for the success of the product to be priced right. Price is a
measure of value to both buyers (a measure of benefit) and sellers (to cover
costs and provide profits). Pricing objectives are (Bull, Marketing
management, 2014):  Buyer and Seller benefit  SMART (Specific,
Measurable, Actionable, Reasonable, Timetabled)  Profits  ROI Consider
the following before implementing the pricing strategy:  Profitability 
 Long-term prosperity  Market share  Positioning Pricing Strategy for
Tetley Energy Drink Penetration Pricing: As Tetley Energy Drink is a new
product and the market already has few similar products, Tata Beverages
needs to penetrate the market using price which is lesser than that of the
competitor’s product or substitute products. Tata is a big company; hence
by making use of Economies of Scale, it will be possible for Tata to initially
keep lower prices than the prevailing market prices. Competitive Pricing:
Once the market is captured significantly, the prices can be changed. The
market for energy drink is highly competitive and the product is not
differentiated to a great extent; hence price cannot vary from that of the
competitor. Promotion An organization needs to promote its product so
that market is aware of the product. Promotion refers to the various
activities undertaken by the enterprise to communicate and promote its
products to the target market (Chopra, 2008). Though not limited to, the
commonly used promotion techniques are:
24.31. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 30 Source: (Bull, Marketing management, 2014) Promotion
Strategy for Tetley Energy Drink As Tetley Energy Drink is a sports drink, and
Olympics are around the corner, the product will be launched in one of the
Olympic Games. This will give a good exposure and recognition to the
product. The tagline is Energy Drink – helping the world be a healthier
place. Source: (Bull, Marketing management, 2014) To boost the brand of
the product, celebrity endorsing can be done using sports personalities and
Hollywood actors. Apart from this, the traditional style of billboards,
hoardings, television ads, radio ads can be made. Also, online marketing
using social networking sites like YouTube, Facebook, Twitter etc. can be
used for publicising the product. People People in the 7Ps determine the
organizational skills and the skills and abilities of people in the organization.
The value can be added by:  Training and development  Support
resources  Formal and informal encouragement People in Tata – Tetley
Following are the three mantras which people of Tata Beverages follow: 1.
A great product 2. Good value for the price and 3. Good service
25.32. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 31 Tata is known in the market to provide high quality products
at a competitive value to its customers. They are also known to produce
and launch products which are demanded by customers. Process Following
process is very important for smooth functioning of the product life cycle
(PLC). Process channelizes the development cycle. It facilitates the Initiation
(Planning), Strategizing (Formulating plans) and Executing (Implementing)
of any product. Since Tetley Energy Drink is a new product, the product
 development process would be (Bull, Marketing management, 2014):
Source: Based on (Bull, Marketing management, 2014) Physical Evidence
Physical Evidence determines the tangibility of the product. It considers: 
Ambience or packaging  Spatial layout  Brand identity  Standardization
Physical Evidence of Tetley Energy Drink The packaging of Tetley will be
done such that it is very handy and easy to carry. The packaging will be in
form of plastic recyclable bottles and cans. The standard size of the bottle
will be 200-300ml depending on its can size. 500ml can be bottled.
Communication/ Action Plans These primarily include customer centric
materials such as social networking sites, magazines, press releases,
brochures and trade shows etc. (Kennaugh) Idea generation Screening
Concept evaluation Marketing strategy Business analysis Product
development Test marketing Commercialisation
26.33. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 32 Communication Plan/Strategy Profiling of Target Audience It
is essential to ‘Know Your Customer.’ The psychographics and
demographics of the audience’s should be learned. Then, it is preferred to
understand (Kennaugh):  How the consumer favours to get the
information about the Energy Drinks?  Secondly, how he uses this
information to buy the product? Usually, the communication process is
divided in following stages: The process of communication goes from
identifying the needs of customer, making customer aware of the Energy
Drink and then building loyalty and credibility. Impact of Campaign (Mark
Beard, 2011)  It is required to make the marketing strategy to penetrate
the market rapidly.  For creating brand image & brand awareness, it is
needed to have effective advertisements.  The duration of campaign and
its impact time should be analysed before launching. Creativity (Kennaugh)
 Some creative messages, appeals have to be created.  Top celebrities
should be hired to reach to the highest possible audience and to make them
aware about the motives.  For generating buzz, some user interface
contests should be made online or on television. (Philip Kotler, 2012, p. A6
of 812) Vehicle Selection It is necessary to identify the communication
vehicles and use them efficiently.
27.34. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 33 Source: Office.com The trade shows should be organized
regularly to influence the target audience in selected areas. The
Promotional Mix (Mark Beard, 2011) Some promotional offers in sports
events would be given to create brand image. Until the brand is getting
established, consumers will be encouraged to purchase through channel
 partners and not from websites. (Philip Kotler, 2012) It is suggested to use
all the following media channels: Source: (Mark Beard, 2011)
28.35. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 34 Forecasts and Budgets Forecasts Financial Forecast For any
business forecasting is required to reduce the financial risks. It allows
mapping the cash flows, sales etc. It helps in achieving the goals and
targets. It helps in managing your resources efficiently managing your
money (Financial Forecasts). Normally, it comprises of estimated sales,
expenses forecasts and break even analysis (Philip Kotler, 2012, p. 86 of
812). The plan for the business is revealed by the financial forecast. It is
nothing but estimate of your income and expenses. It is best to use for
business financials in future. The profit and loss statement, balance sheet,
cash flows etc. can be made by using this. Initially, it is difficult to estimate
the correct figures but over the period and with adjustments it can go
closer to accuracy. The sales forecast is normally indicator of how much
business will be there. The conservative figures are normally eye opener.
And can be used to decide future investment (Philip Kotler, 2012, p. 87 of
812). For ‘Tata Energy Drinks’, the target market is of the age group of 15-
35. There are already big and established players in the market like Red
Bull, V etc. To compete with them and to get the best return on
investments, it is necessitated to do forecasting. Furthermore, when there
is a need to go for aggressive marketing like advertisements, web sites,
trend shows, printed materials, it is required to know how much can be
spent. The expense forecast is used to keep the department on target. It
can also be used to modify the marketing plan when implementation is
needed.
29.36. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 35 Break-even Analysis – The break even analysis is used to
know how much production is needed to have profit. It helps in planning
the resources and planning the production capacities (Philip Kotler, 2012, p.
87 of 812). The advantages of financial forecasts are as below (Financial
Forecasts): Periodical forecasts are required to be done and the earlier
figures need to be modified as per difficulties and rapid growths. Budget A
budget is nothing but the detailed plan of your expenses in the coming
year. When the company is in starting phase or launching a new product,
the marketing expenses are higher. So it is essential to plan a budget. In
addition to that the marketing expenses should be checked in comparison
with the total sales (Finance & Cash Flow). Financial Viability •The business
model of the ‘Tata Energy Drink’ can be modified as per the viability
Progress Monitor •Easier to measure forecasted vs actual figures Benchma
 rking •Compare performance in future Identify Risks •Potential risk and
financial difficulties identification Control cash flow •Helps in controlling
the cash flows
30.37. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 36 The budget is normally based on certain set of assumptions.
These assumptions need to be rechecked over the year. Also, it should be
seen that the expenses are not going more than that of the budget. The
contribution margin of the marketing expenses with the sales revenue has
to be calculated for every year. On that basis, the future budgets should be
decided (Philip Kotler, 2012, p. 87 of 812). Budgeting Process – Source:
(Anonymous, 2008) Implementation and Evaluation Marketing
Implementation Marketing implementation is making marketing strategy
work by evaluating what is required to achieve, strategic marketing goals, in
a specific organizational environment (Cespedes & Piercy, 1996).
Implementation involves actors, intents and "a procedure directed by a
manager to install planned change in an organization" (Nutt, Tactics of
Implementation, 1986). While providing a useful starting point, there are
substantial problems with this view of marketing implementation as part of
a rational, logical, sequential flow of missions, goals, strategies, and tactics
which are then implemented (Cespedes & Piercy, 1996).
31.38. Tetley Energy Drink Marketing Plan for Tata Beverages: Tetley Energy
Drink Page 37 Marketing Implementation is the process that turns
marketing plans into marketing actions to accomplish strategic marketing
objectives (Kotler & Armstrong, Marketing An Introduction, 2013). If
strategy is “Doing right things” then implementation is “Doing this right”.
Marketing Control and Evaluation Marketing planning addresses “what”
and “why” whereas implementation addresses “who”, “where”, “when”
and “how” of marketing activities (Kotler & Armstrong, Marketing An
Introduction, 2013). In spite of doing everything right, marketers experience
surprises for which they must practice marketing control. Marketing Control
is “Measuring and evaluating the results of marketing strategies and plans
and taking corrective actions to ensure that the objectives are achieved
(Kotler & Armstrong, Marketing An Introduction, 2013). Steps in controlling
the marketing implementation which will be followed by Tata Beverages:
Source: Based on (Kotler & Armstrong, Marketing An Introduction, 2013)
Conclusion The new healthy energy drink by Tetley would launch into the
Australian market targeting the health conscious people majorly of age
group 15 to 35. The product will have to compete against the existing
strong competitors such as Red Bull, V, Monster, etc. With its unique
feature of being caffeine free and more of tea extracts the organization is
 expecting that there will not be any issue because of the government
regulations in Australia and is extremely confident that the market would
accept the product, once again adhering to the organization’s core values –
helping the world be a healthier place. Set specific Marketing Goals
Measure its performance in the marketplace Evaluate the differences
between expected and actual performance Take corrective measures to
close the gap between goals and performance
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2
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