Beverage Market in Strategy and Execution

Question: Discuss about the Beverage Market in Strategy and Execution. Answer: Introduction With the people growing into becoming more fitness conscious, the non carbonated beverage section is becoming one of the rapidly budding businesses. This report rests on the analysis, interpretation and advocacy of a case study of Hammer Wines Company who wishes to expand into non-alcoholic beverages. A successful trial of its fruit juices was conducted by the companys Director of Marketing exclusively for four months over regions in Australia, through retail liquor stores. In the virtue of the details furnished in the spreadsheet, the report highlights an analysis and examination of the data, the factors to be evaluated, prior final decisions along with recommendations. Analysis of the marketing potential for each flavor An imperative step before heading forward with a product is to ascertain its market potential. When it is about commencing a new product the company should possess a concrete marketing strategy not only to engage existing customers but also be endowed with appealing potential customers (Akaichi, Gil, and Nayga, 2012). Whether be it marketing of a new product or introducing a new product to the business line, both successful launching of the product garner awareness is likely to influence the success of a product. Chart shows the sale of each flavor in four months. The company has trailed with Almond, Cranberry. Lime soda, Mango Delight, Raspberry and Triple Shot Espresso flavors. Data provided in the spreadsheet illustrates that the Almond flavor has been apprehended by the customers the most, followed by Triple Shot Espresso and Mango delight. A positive trend is observed in sales of triple shot espresso, mango delight, and cranberry. It is evident from the graph that Lime soda flavor is showing a steep decline in sales in four months. Subsequently, raspberry despite being less popular among people is showing more or less deflection in the sales. The market trend highlights the unpopularity of lime soda flavor amongst the customers. Analysis of marketing potential of different regions Chart is showing Region wise sales in four months. When the sales of mixer drinks are assorted region wise, QLD NT show the highest sale. It is noticeable that sales in NSW and WA and SA are reflecting a downward inclination in subsequent months. However, the trend is not so disheartening. The company can in future promote awareness among the people via advertisement, highlighting the features of each and every flavor. Analysis of marketing potential of different retailers In the absence of services from retailers, new products cannot be popularized properly in the market. This is because the retailer has a direct contact with the customer. Chart is showing retailer wise trail sales. The Graph is displaying sales generated by the retailers in four months of trail conducted. Minimal sales have been induced by Duncan retailer throughout the trail period. The actual cause for minimal sales needs to be enquired into. The manner in which the consumers make a purchasing decision has altered dramatically. Pricing could be one of the factors. Adequate promotional measures can be resorted to boosting sales in case of Dan Murphy. Analysis of the results The sales generated by Hammer Wines reveals positive trends for its trail of mixer drinks with rising adoration for flavors of almond, mango and triple shot espresso. Revenue origination is nominal from Duncan retailer depicting poor performance. The trends are all positive when it is region wise sale. The companys marketing group has not considered similar flavors that are already existent in the market being furnished by the competitors. Unless the company is very fortunate enough to bring an entirely new product into the market, it is significant to assess the number of competitors prevailing in the market and their share in the current market through the popularity of their drinks (Nakamura et al., 2014). Another factor that has not been highlighted upon is the marketing effort and promotion of flavors adopted by the company if at all they were considered. Factors influential to introduction of a new product An introduction of a new product is influenced by factors such as the pricing strategy adopted for different flavors, cost of production incurred to achieve the final flavors, technology used for the product, transport facilities to enhance the supplies of the products, cost of inputs, such as raw material, equipment followed by different policies implemented by the government such as industrial policy, fiscal policy and prices of the complementary goods and prices of the substitute flavors, provided by the competitors (Ni Mhurchu et al., 2015) .Market Research is regarded to be key when it comes to introducing a new product in the market. It provides decisive information and direction through identification of the needs and wants of the market, product features, pricing, and channels of distribution. While test marketing the product it is vital to emphasize on the following: Ensuring that the flavors hold the features the customer desires, 2. ensuring the willingness of the customer to pay for the price asked, 3. Ascertain that the retailers are comfortable with selling the product (Loebnitz and Brring, 2015). When a goal constitutes generation of revenue and building up of strong customer base through marketing of its new product, the company should recite to targeted marketing strategy (Eshuis, Braun, and Klijn, 2013). Through identification of the target market, the company can highlight its benefits and characteristics of the product. The company should resort to marketing mix to reach out the target market through advertising and media (O'Cass and Heirati, 2015). The executive should weigh innumerable information before deciding whether to turn on with his new product. Pricing strategy applies to both marketing and product as it possesses a considerable amount of guesswork (Davidson and Simonetto, 2005). Conclusion The trail conducted by hammer wines company and the supporting data provided in the spreadsheet gives a fair view about the likeliness of the flavors by the customers in the market prior to introduction of the product. The company can work on the flaws experienced during the trial to avoid failure of its product in the future. Competitors are likely to be present in the industry which too needs to be considered. The research can be initiated primarily through collection and examination of competitors and competitors products. Industry surveys, directories of membership of industry organization, abstracts from local chambers of commerce and state agencies (Das and Mukherjee, 2007). An assimilation of all factors directly influential are to be considered for the success of the product. Recommendations from the Analysis Hammer Wines Company is recommended to provide product discounting policies, to regions with a considerable response. Retailers exhibiting maximum contribution towards the revenue experienced in a trial should be given more preference. Specific region or retailer can be dropped as the margins are low, and uptake is not high. Commemorate that the market potential has never been a static concept. It advances with the general economy and political environment. On the introduction of new flavored drinks, adequate promotional measures are to be implemented for boost and recognition of the flavors amongst the customers despite completion from its competitors. References Akaichi, F., Gil, J. and Nayga, R. (2012). Assessing the market potential for a local food product.British Food Journal, 114(1), pp.19-39. Das, P. and Mukherjee, S. (2007). 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