International Marketing Plan

1. Marketing International Marketing Plan

2. Three Questions • What Market and segment company intends to serve? • What would be the prices for the different segments of the market depending upon product? • How firm intends to promote its stores?

3. Kansas City Market for beverages • Founded in 1838 as city of Kansas with total area of 318 sq. miles. • Over 2 million people live in Kansas city. • Kansas City is also considered as hub of the major beverage retailers and whole sellers in the country. • Such large market provides an ideal space to start a beverage company in the area focusing on the smaller neighborhoods to further penetrate into the untapped market in the area.

4. Strategic Vision • Firm will compete in an industry which demonstrate high margins and intense competition. Product ranges on offer are diverse and cater to the different tastes and preferences of the customers. • In order to successfully operate in this market, it is critical that the firm must compete on pricing while creating better emotional appeal for the product. • Firm will therefore build on its strategy to offer refreshing, healthy and energizing lemonade to the middle and low income individuals and families.

5. Recommendations and Strategy • Name of the firm will be Kansas Lemonade. Since, the firm will be starting its business from Kansas city therefore to create a much local appeal to the stores, it is important that name must correspond to that. • Target definition “ Firm will serve all low to middle income working persons and families looking for refreshing beverages ” Target market will be based upon the income level however, firm will also be looking at segmenting the market based on geographical locations since tastes and preferences of customers may be different at each location.

6. 4 P’s of Marketing • Product will be made from natural ingredients including sugar, lemons and water. The product will appeal to customers because it will be freshly prepared in front of customers and will be served immediately. • Pricing will be based upon earning a 30% return which is low for beverage industry. However, this pricing strategy is based upon market penetration strategy in the chosen market. • Product distribution model will be based upon combination of different factors including selling through flagship stores and personal selling. • Promotional activities will include personal selling, local promotional activities as well as selling through push carts in neighborhood areas to improve product visibility based on geographical areas.

7. Promotional Strategy • Firm will launch its first flagship store in Kansas Area. There will be 5 test units to be opened in the Kansas Area. • Focus will be on the use of personal selling as the key promotional strategy wherein firm will attempt to improve its rapport with the customers and firm’s rep will further cross sell the products to improve revenue. • Kansas Lemonade will also focus on giving free give-aways to children in small neighborhood areas on periodic basis to improve product visibility and brand recognition.

8. Emotional Benefits & Promise of the product • Kansas Lemonade will focus on the low and middle income level customers looking for replacement of expensive beverages. Thus the product offered by firm will attempt to exploit the emotional stress created by economic downturn. • Firm will simaltenousely also use this strategy to address the competition because with low prices and greater emotional appeal of the product, firm will be able to compete in the market on sounding footings.

9. Test Market • Firm will first open 1 test store in the Kansas area. First phase will include creating brand awareness and product recognition. • Success parameters will include sale per unit, total sales, promotional sales, overall cost, number of customers visiting the stores, number of customers buying the product and their overall profile. • If the results of these parameters will be according to the given criteria, firm will open second test store in another neighborhood.

10. Recommendations • Firm should focus on offering low cost, high quality beverages to the low and middle income customers. • Pricing will be based upon the market penetration strategy wherein the firm will focus on under-cutting the competition through low price products. • Personal selling will be developed as a method for improving the acceptability of the product and the brand. Firm need to develop skilled sales forces to capitalize upon its personal selling abilities.

11. References • Hollensen, Svend. Global Marketing - A decision-oriented approach. New York: Pearson Education, 2010. • Liebermann, Yehoshua and Jacques Silber. "Household Economics and Market Segmentation." European Journal of Marketing (1983): 123-128. • Solomon, Michael, et al. Consumer Behaviour. New York: Pearson Education, 2009. • Trivedi, Minakshi and Michael S. Morgan. "Promotional evaluation and response among variety seeking segments." Journal of Product & Brand Management 12.6 (2003): 408 - 425. • Usui, Kazuo. "Precedents for the 4Ps idea in the USA: 1910s-1940s." European Business Review 23.2 (2011): 136-153.