Pokka Sapporo Food and Beverage Strategic Marketing Research

In 2015, Pokka introduced a new isotonic drinks to its wide range of products namely plenish sport water. Based on data from the 2010 National Youth Physical Activity and Nutrition study, as more people seek an active and healthy lifestyle they have shifted from drinking the conventional bottled water and instead have turned to functional sports drinks that have both health and numerous multifunctional benefits. The premium sport drink contains branched-chain amino acids and citric acid is introduced to appeals to health conscious consumers. The drink aims at fast recovery from fatigue, better blood circulation in addition to increase of physical endurance. This research paper is based on an interest in the emerging market for plenish sport water in Singapore. Datamonitor (Hansen, Lotte Yssing & Hansen, Flemming.

, 2001) stated, “Looking ahead, despite solid growth in consumption, the global soft drink industry is expected to decelerate, reflecting stagnation of market prices. ” The alteration is attributed to other growing sectors of the beverage industry including tea, coffee and bottled water. In Singapore, profitability in the soft drink will remain constant as there is a slight decrease of growth in the industry an attribute of market saturation. As a consequence, beverage companies including Pokka has established itself in alternative markets such as bottled water and sport water. Additionally, great distribution channels are core in dominating the industry and thus maintaining a strong brand name. Numerous years of operation has enabled Pokka to expand and establish an extensive sales network as well as brand awareness is the Asian market acquiring it a 45% market share.

Since the soft drink industry is fully saturated, the chances for new and unknown competitors gaining entry into the market and acquiring substantial shares is made difficult. High fixed costs for warehouses, labor and economics of scale add additional strains to new companies (Manore ,M, Meyer ,N, Thompson ,J. Substitute products that are not necessarily soft drinks such as bottled water and sports drinks are increasing in popularity as the trend to live healthier lives gains a larger consumer base. The targeted customer segment for the sport drink for the most part includes the physically active health conscious teenagers within the growth stage. Since at this stage of the product life cycle it is required that the product being offered be precisely tailored to a very refined market segment (Belch, George E.

& Belch, Michael A. The approach undertaken by Pokka is described as market penetration which is in accordance with the Ansoff Matrix which is a market strategy approach implemented depending on whether both the market and the product are either pre-existing or new (Snell, P, Ward, R, Kandaswami ,C, Stohs, S. The objective of the market penetration approach has been to continue the growth of plenish sport water sold through vending machines among the existing target market. The Pokka Sapporo Food & Beverage limited supplies uses market penetration as its core marketing strategy to sell its product — 375ml cans of plenish sport water sold through vending machines. As growth levels indicate the product is close to entering the maturity stage of the product life cycle, plenish sport water is using loyalty and convenience to increase market penetration for its target segment, health-conscious 18–22-year-olds who identify with masculinity in Singapore.

Loyalty has been increased though attractive packaging, customer satisfaction through fair pricing, company image and relationship management with customers/clients. Convenience is increased though high form utility of packaging, convenient sizing and place utility though vending machine distribution. Based on high-growth levels in recent years, loyalty and convenience are used to successfully position plenish sport water ahead of competitors (Belch, George E. For example, Pokka ltd had launched POKKA the better squad contest whereby consumers contest to win 6 months’ worth of POKKA drinks. The second element of plenish sports PR strategy is CSR. CSR issued to improve a company’s image through social improvement activities with the overarching aim to improve loyalty and thus market share. POKKA uses several CSR initiatives to promote plenish sports.

These include sponsorship of events which are significant to POKKA target market, grants/scholarships, and sustainability. Consumer preferences are measured in terms of the level of satisfaction the consumer obtains from consuming various combination of goods. The consumer’s objective is to choose the goods which provide the greatest level of satisfaction as the consumer define it. But constraints are defined by the consumer’s income, and the prices the consumer pays for the goods. Consumer value is measured in terms of the relative utilities between goods and these reflect the consumer’s preferences. Brand Preference Brand Preferences represent a fundamental step in understanding consumer choices. Describing each group and selecting an attractive segment to serve. The marketing mix includes the product, price, communication, distribution, and services provided to the target market.

The final stage outcomes involve analysis of firm’s production position and customer satisfaction resulting from implementation of the strategy. Advertisement Effectiveness: Advertising effectiveness pertains to how well a company’s advertising accomplishes the intended. Small companies use many different statistics or metrics to measure their advertising effectiveness. Last but not least, celebrities act as spokes people in advertising to promote products and services (Manore ,M, Meyer ,N, Thompson ,J. Advertising Advertising is non-promotion of goods and services, by a sponsor (a firm or person) who can be identified and who had paid for this communication. This purpose of advertisement is to sell something a good service, idea person or place, either now or later this goal, reached by setting specific objective that can be expressed individual ads.

Those are incorporated into an advertising campaign recall again from the buying decision process that buyers go through a series of stages from unawareness to target customer to the stage in the stage in the hierarchy say from awareness to internet. Advertisement plays an important role in the success of plenish sport water product. It may have fair price. But people will not buy your product, if they have never heard of it, and they are simply unaware of its existence. The marketer, therefore must communicate to his prospective buyers and provide them relevant information in a persuasive language. People must know that the right product is available at the right time, at the right place and at the right price.

This is the work of promotion in marketing. Advertising: According to the American Marketing Association, advertising may be defined as ‘…any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor’. It is non-personal as contrasted with personal selling. It is paid by an identified sponsor as contrasted with publicity. Advertising is impersonal (printed) salesmanship for mass selling and a means of mass communication. In general for low-cost mass-consumed goods, advertising is a good promotional tool. Impulse selling is done by packaging. In self-service retail stores or supermarkets, packaging has replaced the counter salesman effectively. Package is also a means of advertising. Sales Promotion: Sales promotion covers those marketing activities other than activities other than advertising, publicity and personal selling, sales promotion offers aggressive methods of selling or creating demand and these methods are supporting forms of promotion Sales promotion supports and increases the effectiveness of advertising and personal selling.

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