Sprite is carbonated drink and one of the brands produced by Coca-Cola Company which was introduced by the company in 1961in competition with 7Up which is also carbonated drink. The core undertaking of the company is to provide quality products to achieve consumers’ satisfaction. Company is working in the field of drinks for a long time with its head company is in United States and operations all over the world and number of employees working in its worldwide chain. Company has modern manufacturing facilities in number of countries, skilled human resource, good image and reputation; all these factors are providing strong foundations to the company and also good base for marketing because company has already famous on international level and having good reputation therefore carefully designed marketing can be very effective in increasing the sales/overcome declining trend in sales. (Sprite History and strategy).
New marketing initiative will be undertaken with the name of Sprite Campaign in response to declining sales of Sprite, under this new program every activity will be performed to make the product aligned with the objectives and goals of the company that is the objective of ensuring of provision of high quality products to the consumers all over the globe and to achieve the consumers’ satisfaction.
All this strategic and marketing program and planning will be centered on the following objectives.
- To become leader in the carbonated energy drinks segment with increased market share in both existing and target markets at international level
- To strengthen and meet the requirements of more adventurous generation in terms of refreshment, enjoyment, energy and overall quality of product.
- To make the company to stay at the point as the leading company in quality and innovative product introduction and successful launch of the product in the markets where the product is not currently available.
- To make the product an ideal drink for people of all ages and for all events such as an ideal drink for Youngsters, families, parties, social gathering, sports etc.
Sprite is facing intensive competition from manufacturers of Pepsi, 7Up and other drinks and increase in competition is creating number of problems. High intensity of competition is decreasing the margins of not only of individual company but also that of a whole sector. Bargaining power of customers is high they can easily switched towards the products of competing companies.
INCREASING DEMAND FOR DRINKS
It is true that some companies manufacturing drinks are facing decline in sales of its products but overall the demand for drinks is increasing. Some companies are facing decrease in sales due to decline in sales of their carbonated drinks. The overall increase in consumption in last five to ten years is due to increase in consumption of Fruit and vegetable drinks, energy drinks and bottled water. Research reveals that awareness of health and fitness is increasing more people are going for exercise, gym and sports and prefer healthy drinks.
All this is presenting an opportunity for carbonated drink manufacturers to respond to increase in demand and should introduce dual products that can meet the requirements of both refreshment and nutrition for consumers. In responding to the situation Sprite can expand its offering through alliances and acquisitions while focusing on diversification. Today while it became clear that sales volume of simple cold drinks has declined due to large number of consumers who are adopting the trend towards healthier alternatives in soft drinks segment therefore company is required to pursue the introduction of new flavors and launch of health-conscious formulations, the market is expected to show sustained growth and consumers interest in the future years as consumption shift to more healthier products. According to the survey conducted by Association of Consumer Protection in United States in 2009, consumption of multi drinks i.e. drinks which are both carbonated and nutritional will be higher in all other drinks in 2011.
Also Study: Sprite Product Analysis
Sprite will be marketed with main focus on the consumers who not only want to drink mixture of water and carbonation but also prefer to gain some energy and revitalization of physical and mental health therefore it will be marketed as carbonated energy drink for people of all ages but those with more active life styles will be specifically targeted.
Sprite will be provide to both physiological needs (Hydration, refreshment and energy) and social needs (perception of a social, enjoyable drink with a sense of belonging within peer and consumer groups)
The existing trend in consumers in relation to drinks is the shift away from junk foods and simple cokes to increasing interest for healthier nutrition products for the mind and body, the trend towards the availability of products for those with in an active lifestyle, as well as the trend for personalization through customization.
- Segmentation Variables
- Geographic segmentation;
- All states and territories with focus on urban and metropolitan areas, both rural and urban areas.
TARGET MARKET AND SEGMENTATION
One of the major things in marketing is to design the marketing strategies to recognize customer differences and present the offering in relation to the product to the consumers by taking into account the consumers behavioral factors in the context of consumers’ perceptions, attitudes, requirements, preferences and decision making.
SEGMENTATION, TARGETING & POSITIONING OF SPRITE
Marketing is a system of business activities designed to plan, price, promote and distribute ‘want satisfying’ products to customers in the market in order to achieve business objectives. However, the total market is very large and it would be impossible to develop some strategies that would meet customer’s needs and wants of everyone better. Because of this, businesses break the market down into segments which are so important for businesses to aim at their specific target market.
The target market needs to be identified. The target market is the current/ potential customers with similar characteristics. For ‘Sprite’, a new target market was selected to take advantage of the fact that young males drink the most soft drink. In this market, Sprite competes with other products such as Solo, Fanta based on its market segmentation in four key areas: Demographic, Geographic, Psychographic and Behavioral.
It is the division of the market into groups based on demographic variables such as age, gender, family size, income, education. Main focus on people with age range of 12 to 35 because research reveals that people with this range are one of the major consumer groups of drinks but marketing will also be carried out with target on elder people with the main aim to make the Sprite a product for all. According to family size, some of Mums and Dads buy soft drink for their families. So Sprite segments its target market to aim at those groups to purchase their products with low prices, and gain more profits.
The market is divided by location because it is assumed that the people who live in the same area will probably have similar needs and wants.
Marketing will be performed in response to consumer behavior and taking into account the trends in particular events and season for example in summer season by effective marketing more customers can be attracted and in the events such as sports events by sponsoring sports and players more people can be attracted.
MARKET POSITIONING STRATEGY
Due to changes in consumers’ trends in drinks sector and decline in sales of Sprite in various countries, it is essential to devise effective marketing positioning strategy for Sprite. Currently it is famous and widely available in the market as carbonated drink but due to arrival of new more advanced products in the market of Pakistan, now it is a time for the company to make the Sprite an enhanced drink in order to make it in a strong position in the market as compared to other drinks available in the market therefore in response to this situation Sprite will be positioned as Carbonated instant energy and nutrition drink and strong foundations will be provided in the form of effective marketing .
The objective will be to devise the offering of the company and image to occupy a distinctive place in the minds of the target consumers. The efforts will be made to make a place in the minds of consumers to encourage them to make decision to buy and drink Sprite and consider it as a drink of quality and taste.
MAIN AIMS OF MARKET PLAN AND POSITIONING
Marketing mix strategies should be directed towards the achievement of objectives of marketing and should facilitate contribution to the market capture at global level. There are number of purposes but most critical aims of marketing for Sprite are as follows
- To deliver clear messages to the people about the Sprite and its enhanced features
- To facilitate good image and reputation of the company and its product
- To ensure attract more customers from all over the globe
- To give impression to the world about company that its products are of high quality
MARKETING FOR SPRITE WILL BE CARRIED OUT WITH THE FOLLOWING AMBITIONS
- Identification of the local market conditions, target markets and promotional opportunities
- Delivering clear messages to the consumer about the product and its enhanced features
- Performing effective advertising and promotion that will derive sponsor ships from possible strategic partners. Such promotions are critical to the strategy to increase the strategic alliances through cross-promotion.