Product Description
Product/Service and Industry Sector
Foot orienteering is a sporting product that requires participants, who are the young, the middle-aged, and the old individuals, to employ navigation skills. According to Ferguson and Turbyhill (2013), foot orienteering is a sport that entails navigations in terrains that are unfamiliar to the participants using feet. Overall, the sport is important to the people because it promotes physical fitness and refreshes the mind. Given that the sport involves an extensive exercise, the participants require energy drink, Rockstar, to energize and rejuvenate their bodies.
Legal Structure and Business Unit
Legal structures in the United Kingdom recognize foot orienteering as a sport, which has existed for several years and is currently under the management and control of the British Orienteering Federation (Hawkins 2010). The study selected the United Kingdom, which has a target market that comprise of the youth, the middle-aged adults, and the old adults.
Moreover, Rockstar is a safe energy drink because it meets international standards of consumer safety and thus the participants of the sport should take it during and after engaging in foot orienteering. Thus, the service of foot orienteering and the sale of Rockstar as energy drink should occur in the same place.
Market Analysis
PESTEL Analysis and the Target Market
United Kingdom has a stable political system that facilitates peace. In essence, peace leads to the success of activities like foot orienteering and purchase of energy drinks like Rockstar. Stable economic system makes marketing of the products effective since consumers have more disposable income and enhanced purchasing powers (Bowman & Gatignon 2010). In the United Kingdom, socio-cultural factors in the country depend on education, norms, and values, which create a favorable environment for the sport and the use of the drink.
Socio-cultural norms and values held by people in the country encourages consumption of products a like foot orienteering and Rockstar. Faarup (2010) argues that modern consumers are technology oriented and purchase products based on the quality and their level of compliance with the contemporary technologies. Technological advancements provides the Internet and social sites, which are very instrumental in the promotion of products such as foot orienteering and Rockstar.
Competitors in the Market and Barriers to Entry in the Market
Since the products are less demanding in terms of additional requirements, the young, the middle-aged, and the old people can enjoy them. Hawkins (2010) asserts that since foot orienteering is a sport that entails walking, individuals can easily engage in the sport so long as they are physically fit because it does not require additional personal equipments or facilities.
The service and the energy drink fit the young, the middle–aged, and the old consumers because they match their physiological, demographic, and psychological needs. Some of the competitors in the market include clubs like Lake Orienteering Club (LOC), Devon Orienteering, and Harlequins Orienteering. The strengths that the clubs enjoy include high market share and good reputation in service delivery. Some of the weaknesses that the firm can use include effective pricing and improvement of product quality to achieve successful entry into the market.
Employment of factors in the Porter’s model like bargaining power of suppliers and customers, and the threats associated with new entrance and substitute products is important as they affect the marketing environment (Boone & Kurtz 2008). Substitutes of foot orienteering are activities like expeditions, whereas refreshments such as Pepsi surrogate the energy drink. The significance accorded to these factors transpires since they are barriers to the successful entry of the firm in the market.
Unique Selling Point of the Products
The unique selling points for the firm centers on its ability to provide a diversity of products like foot orienteering and Rockstar to consumers during and after their participation in the activity. Subsequently, the firm’s plan to sell its products at discounted prices is another unique selling point. According to Cheverton (2005), diversity in product delivery facilitates success and growth of a firm. Furthermore, the sale of products at discounted price persuades several consumers in the target market to consume the products from the firm and acts as a unique selling point.
Marketing Plan
Marketing Mix
In the first year of operation, the firm expects to employ elements of the marketing mix to improve its market share and increase consumer base. Some of the marketing mix elements include product, people, price, process, physical presence, and promotion (Smith & Taylor 2004). The firm will ensure that its products meet the required standards in terms of quality and delivery. It is important to elucidate that since the firm values product quality, it will hire human resources, who have the relevant qualifications.
Strydom (2005) highlights that the people involved in production and delivery of the products need to be competent and motivated since they determine product quality and customer satisfaction. The process, which entails production, supply, and delivery of products of the firm will not be bureaucratic, and thus, facilitate the delivery of products that match client expectations. Packaging, designing, and branding of the products and its physical components should be eye catching and appealing to clients.
Distribution Strategy, Pricing Strategy, and Promotional Strategies
After ascertaining product viability, the firm will place or distribute its products in strategic points that are accessible to potential consumers. Placements of Rockstar will be strategic in locations where potential customers are found, while foot orienteering will be undertaken in destinations like Darnaway and Leith Hill. Henry (2011) asserts that effective pricing strategy needs to consider the purchasing power of the target clients and the prices of competitors.
Additionally, the firm will price its products in a manner that does not strain the operational budget of the firm, while earning a profit. Media of communication such as televisions, radios, newspapers, and magazines are very instrumental in marketing the firm’s products and persuading potential customers to purchase the products (Richter 2012). The employment of these promotion media is appropriate because they are effective conveying the intended message to the right segment of consumers in a fast manner.
Conclusion
Foot orienteering and Rockstar are some of the products that complement each other since individuals always need an energy drink during and after foot orienteering. The United Kingdom is a country that has a good political and economic stability, and thus, it reflects a high customer purchasing power. From the study, it is evident that the majority of the people enjoy leisure activities such as orienteering, an implication that the demand for the product is high. Competition is high and cutthroat as clubs and organizations that offer these services fight for the dynamic market characterized by the young, the middle-aged, and the old individuals.
Recommendations
Some of the short-term recommendations that the firm needs to employ include effective pricing, extensive marketing, provision of discounts, and avail free samples. Effective application of these recommendations increases client awareness and willingness to purchase the products from the firm.
Furthermore, customer awareness, loyalty, and trust will increase through implementation of these recommendations. Although the firm expects to enjoy word of mouth marketing from past clients, some of its long-term recommendations include the focus on product quality and good pricing strategy so that it sustains its growth and success in the competitive market.
References
Boone, L., & Kurtz, D 2008, Contemporary Marketing 2009 Update, Cengage Learning, London.
Bowman, D., & Gatignon, H 2010, Market Response and Marketing Mix Models: Trends and Research Opportunities, Now Publishers Inc, London.
Cheverton, P 2005, Key Marketing Skills: Strategies, Tools, and Techniques for Marketing Success, Kogan Page Publishers, London.
Faarup, P 2010, The Marketing Framework, Academica, London.
Ferguson, C., & Turbyfill, R 2013, Discovering Orienteering: Skills, Techniques, and Activities, Human Kinetics, Illinois.
Hawkins, P 2010, Map and Compass: The Art of Navigation, Cicerone Press Limited, London.
Henry, A 2011, Understanding Strategic Management, Oxford University Press, London.
Richter, T 2012, International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from World-markets, Logos Verlag Berlin GmbH, Berlin.
Smith, P., & Taylor, J 2004, Marketing Communications: An Integrated Approach, Kogan Page Publishers, London.
Strydom, J 2005, Introduction to Marketing, Juta and Company Ltd, Claremont.