It is a bar which provides energy and revalidated as suggested by our tagging "To Recharge the World" Monster Beverage corporation, always believed in innovating new product with different flavors and proved themselves by satisfying customer taste buds. Monster is leading in the market for energy drinks in terms of flavors. The target group for "Monster Energy Bar" is 19 to 33 years; mainly individuals who live an active sports life, corporate professionals, students, active youth. The product ingredients include various health factors related to our daily life.
Packed with all natural ingredients such as fruit extracts, rotten, cocoa and caffeine, Monster Energy Bar is a great source of energy on the go. In the present scenario most people leaving a busy life often is avoiding healthy food and the necessary protein and calories intake which can cause health issues. Offering most of the great flavors and ingredients featured in energy drinks, Monster Energy Bar is likely to appeal all existing Monster Energy drink fans and new consumers. Mission Statement: We truly believe that time is the most valuable asset.
Our main goal is to give our customers the most natural, nutritious and great tasting energy in the fastest way possible. We appreciate each and single one Of our customers and we know that our success and growth comes from not only meeting their needs, but exceeding expectations of our loyal consumers. We, as a team work really hard, to insure that we keep surprising and inspiring our customers with great new flavors. It makes us happy if our product helped someone to have a more productive day, reach the finish line, or simply go that extra mile.
Macro - environmental analysis The macro environmental analysis is essential for the company. This analysis will help us to know whether the outside forces are beneficial for the many or not. The below are the forces which will help to determine the analysis for the product: Demographic forces will help to analyses the gender, age, income, and location. Monster Beverage Corporation already has its own target market, since "Monster Energy Bars" is a new product in terms of category and the aim is to provide energy on the go.
The target market will be male and female between the age group of 19 to 33 years. The "Monster Energy Bars" are priced in such a way that youth such as students as well as professional (corporate people) can afford it. Strategically, location is targeted where here is lot of sport's activity, young students and commercial place are located. Economic: Sports nutrition is non-essential considered by customers, so the affordability plays an important role to market. The other factor which can affect is inflation.
During inflation the spending habits of the people will change. Also, sports nutrition and particularly energy drinks and energy bars are recovering after the economy recession and appear to still growing. (Canadian Community Health Survey, 2005) Natural Forces: The natural forces which affect the products are natural calamities like earthquakes, floods, cyclone, etc. The other product ingredients related natural forces for energy bars contain Caffeine and Turin as their major ingredients which in high intake be considered not good for health.
This is creating a shift to natural resources such as grains, natural caffeine or fruit based for health reasons. Technological: New trends are emerging in the sports nutrition business which is focusing on the delivery of new experiences through the development of new technology to improve the manufacturing process. Political/Governmental Regulations: The political and government regulations may affect the product. Food and drug administration may regulate the product because "Monster Energy Bars" contain caffeine content and other energy enhancements.
The other impact which can affect the product is change in the government, new rules for the specific industry / category and changes in taxes. Cultural Forces: It is well known fact that Canada is multi-cultural- It has a diverse cultural where people are coming across the world. Although people are from different culture the main priority is healthy and convenient lifestyle, and sports nutrition products (I. E. Energy bars which provide energy) are the option to satisfy this need. The sports nutrition is segmented in main categories: body builders, Pro / Amateur athletes, recreational users and lifestyle users. Canadian Community Health Survey, 2005) Marketing Segmentation: We will segment the market on the basis of Geographies, Chirography's, Demographics and Behavioral. Geographic Segmentation: This segmentation will consist of our target market location. As monster energy bar is the source of energy which is targeted for youth, sport's athletics and corporate people. The potential in the sports nutrition market is around IIS $4. 6 Billion (Euro monitor International 2010). Also is important that the maturity in energy drinks market drives the opportunity to expand the market towards the energy bars, in order attract new customers.
The proportion of residents by province shows that British Columbia has the highest rate with 64% of people physically active followed by Yukon with 66% and Ontario the third with 54% (Canadian Community Health Survey, n. D. ). Chirography's Segmentation: The chirography's segmentation is based on various aspects like social class, lifestyle and personality characteristics. This segmentation will help us to identify the people from different lifestyle, their aloes and beliefs. Behavioral Segmentation: This segmentation will help Monster to segment their customers on the basis of usage of the product.
The consumption of the bars will help us to segment the product to the target customers. Mostly customers are going to use for snack purpose, instant energy or during hectic work schedules. Demographic Segmentation: The demographic segmentation will help to segment the market on the basis of different perspective from customers. Monster Energy Bars will also be percept in another way because it is not just a natural bar. It is an energy bar which is healthy and active, targeting age group from 1 9 to 33 years.
Also, the way We use to segment the marketing is considering the physical activity in the population by Age, Income, Gender, and physical activity preference in Canada. The household income play an important role a report shows that 32% of people with the highest income are physically active followed by 29% of high middle and 26% with middle household Income (Canadian Community Health Survey) Genders: Both Female & Male (with higher focus on males) Age: 19 to 33 province main focus and launch: British Columbia and Ontario Market
Segments: Young working professionals, college students and sport oriented, athletic people Income level: Middle to high Income Market Segmentation and Target Market The target market are based on the statistics that shows that the age range is important to consider because young men and women from 12 to 18 are physically active, we cannot target people under 18 due to ingredients in the energy bars and also the price is also a factor for the segment. The target market for our segment is 19 to 33 years which align very well with our product.
To launch the product we will focus on Vancouver, BC where sports s jogging, biking and swimming are the most common for the people and finally the income household targets from Middle to High in zones as: Anymore, Bellary, Greater Vancouver, Lions Bay, North Vancouver, West Vancouver (Census Data, Statistics Canada, National Housing survey, 2001). Multi-segments Our product is multi segment because Monster E Bar can benefit any type of consumer by providing instant energy. 1st Segment: Young males and females involved in various sports and recreational activities. ND Segment: Youth, college students and young working professionals. Is your product designed for consumers or business or both.... Why? The product is designed for consumers. Today consumers are very busy in their day to day life. Consumers are going out for long hours they can grab this bar and have it anywhere. It's for the people who needs source of energy, workout and for the students have very hectic schedule, many occasions they are rushing for meetings and usually skip their meals. This bar is being very useful for them; it will keep them active and provides the ARQ aired energy.
Why is the target market you selected profitable, sustainable, and how does it align with your product? The target market is profitable and sustainable because Monster Energy Bars has the potential to satisfy the customer needs by delivering the additional energy for the physically active people and professionals with busy work hours which directly align our target market. The initial launch itself is with four different flavors which will provide consumers to try new and different options Also, within the segment the household income of the target market is good and they will have the willingness to pay for the product.
Decision on New Product Name: Strategically we have opted for name "Monster Energy Bar". Monster Beverage Corporation has its own goodwill and very well renowned in the market for its energy drinks product. We chose this name because this company is well established and has provided various options to consumers in terms Of flavors and preferences. It is a new product that never existed before. It is energy drink that is in form of a bar. Monster Energy Bar is a new kind of energy bar based on ingredients and flavors of existing energy drink It's the first time when the energy drink is introduced in a form of "Monster". Bar. "Monster" Energy bar is a soft and moist bar infused with combination f cacao, coffee and fruit flavors. It is the first and only energy bar on the market that does not consist of granola, oats, nuts and dried fruits, and is completely opposite to the rest of crunchy and chewy granola energy bars. Has absolutely different texture than a regular energy bar on today's market. "A 2009 Angus Reid survey for Contra Foods Canada found that 53% of working Canadians spent their lunch break reading, surfing the Web, or not stopping for lunch at all.
If they do stop for lunch, they only break for 16-30 minutes, speaking to the need for convenience. Other attributes are also needed-?32% are looking for healthy ingredients, 25% are looking for quality, and 17% are looking for flavor. " (CNN Newswire Company, 2009) Our product is created to solve the issue above. It combines all natural, high quality and great flavors that along with compact size makes a perfect option for a quick, nutritious meal substitute that not only tastes great, but provides strong source of energy.
Product Strategy The main strategy of our team is introduction of new, innovative and best fit solution for consumers when it comes to satisfying a need for extra energy. Our product is created to not only attract new potential consumers and early adopters who are willing to pay a higher price for a great quality; but entice already existing consumers to switch to our product. Thus we are planning on gaining a share of energy' bars market and keep on extending it with introducing new variations and flavors in the future.
Upgrade Currently we are entering the market with four main flavors (Monster E Java, Monster E Cranberry/Raspberry, Monster E Citrus, and Monster E Banana). As our product will be growing we will expand the brand by introducing new labors, sizes and a bar that will consist of two flavors in one bar. We will also be able upgrade the quantity in which we sell our product by introducing such options like a bundle of two or three bars. But still it can be append with other monster products.
At the same time our bar would be a perfect add on with a customer who frequently purchase energy drinks (especially Monster Energy) and would buy our energy bar on top of that. Packaging Packaging is very essential for any product development. The strategies we are going to use for packaging of "Monster Energy Bars" are clear visible of amen, logo and flavor. The logo will be same as "Monster Energy Drinks" because it has already created image in the mind of the customers. This will help to draw attention towards existing customers and generate new customers.
We are going to use airtight, vacuum, packaging with black, red, orange and yellow colors (corresponding to each flavor). The bar is going to have very clean and distinctive design and matte finish. The packaging will have English and French version of nutrition facts, ingredients, manufactured date, best before use and it will be certified by government (all of the ingredients are approved by required health standards). The packaging will be recyclable. On the shelves, bars would be displayed by color: black (Java), red (Berry), orange (Citrus), yellow (Banana) in that order.
Pricing Strategy While launching our product we will use skim pricing strategy where we are going to set the price higher that other regular granola bars and energy drinks which are our main competition. We want our bar to be percept as a new, innovative, high quality product. By choosing skim pricing strategy we are aiming to establish a recognizable, high quality product that will attract early adopters and those people who follow the latest trends and innovations and are looking for new and exciting products and flavors on the market.
The MSP is 52. 4 CAD with a mark-up of 71 % from the unit cost of $0. 7 CAD, and there's is a margin of 48% for the wholesaler. MSP $2. 40 Wholesaler price $1. 34 Cost $0. 70 There is a cost per unit of $0. 7 CAD, includes Manufacturing materials, labeling and packing. The expected mark up for the product is 48% assuming that 44% will be the cost of the wholesale. We have calculated the cost which contains overhead expense, cost of goods sold, etc. As we have adopted skimming marketing strategies the price margin is also higher.
Our MIMIC should be one that can create and nourish profitable relationships with our target customers and create an avenue for purposeful dialogue with them. For our Integrated Marketing Communications strategy, we are going to incorporate the producer marketing activities to retailers and wholesalers who resell to our target customers, the rationale behind this is to ensure trade promotion(Cooperative Advertising) by producer and personal selling, as well as to enhance sales promotion by wholesaler or the retailer and public relations.