Outline and discuss the market targeting strategy that you would recommend Snazzy implement for its new line of energy drinks. Provide rationale for your strategy choice. When deciding which market segment should be targeted, one must first think what type of people energy drinks will most appeal to and additionally, who might find the effect of energy drinks most attractive? Because young people in their 20s are likely to be much more active when compared to other age groups, it seems that this market segment should be chosen. Given that the market segment has been identified, it is necessary to develop a strategy to target specific key groups that might find the energy drink worth purchasing. I believe that this product should be advertised to sport enthusiasts, gamers, ‘work-aholics’ and university students.
These specific groups within the chosen market segment may have a need for energy drinks over and above others in the target segment because of their need for concentrated energy that is easily consumerable. The design of the can is also important when marketing this product. Designs that are distinctive and vastly different to competitors might allow this product to stand out from the crowd. Knowing the competition is important and need to conduct research into their strengths and weaknesses. As such, Snazzy Sodas should distinguish itself from them by the product design and produce advertising that specifically appeal to the key groups identified above. Explain the consumer behavior characteristics that are likely to influence consumer purchases of this new product.
(a) Information search – if the consumer is not aware that this product can address their need for an energy boost then it is unlikely they will purchase the product. To address this, key advertising and an encouragement to ‘spread the word’ is important so that the consumer recognizes that amoung product alternatives, the Snazzy Soda option is the one to choose.(b) Brand Loyalty – Snazzy Sodas have a good reputation for its all natural sodas and social responsibility. In advertising the energy drink, Snazzy can build upon this by advertising any natural elements in the drink as well as emphasizing social responsibility when consuming the drink and the dangers of over-consumption.(c) Social Factors – if the perception of this drink is ‘cool’ and that it gives drinkers the desired effect then it will assist consumers in their decision to chose the product over others.
Further if this drink is perceived as being the drink for those in their 20s who lead a fast paced lifestyle, with careful advertising, this will achieve the result of attracting such consumers into buying the product.d) Psychological Need – if consumers are convinced that they need this product when they are tired during the day when leading a fast paced lifestyle, then this will improve the marketability of the product. That is, if the message that when you feel tired during the day this drink will allow you to continue to do what you do well, then this might have the effect of convincing consumers that this product is ideal for them. By advertising this message, this might remind consumers of the drink if they become tired.
