Marketing_Plan_Mkt230

Can Lids Unlimited Marketing Plan Can Lids Unlimited will introduce lids that keep canned beverages carbonated and fresh longer while keeping germs and bugs out. The lids will be reusable, made out of a thick dishwasher safe plastic material. The can lids will also be recyclable. The can lids will be marketed to a large segment of the population: anyone who drinks a soda or beer out of a can. Can Lids Unlimited will formulate a marketing plan that allows us to reach this huge market segment and be able to be mass-marketed. Can Lids Unlimited will segment the market by demographics, psychographics and behaviors in order to form target market strategy (Solomon, Marshall, & Stuart, 2008). Consumer demographics “are statistics that measure observable aspects of a population, including size, age, gender, ethnic group, income, education, occupation and family structure (Solomon, Marshall, & Stuart, 2008, p. 204).” Consumer demographics indicate that generational marketing would benefit Can Lids Unlimited’s target market strategy. Generation X, baby boomers, and teens are likely to consume canned beverages. Also, ethnic groups, like Hispanics and African Americans are inclined to drink canned beverages. According to PRIZM, by Claritas, Inc., which is a large database of geodemographic information, the “Blue-chip Blues” cluster is upscale blue collar families who range in age from 35-64, have white collar and blue collar occupations with an average household income of $47,500. The “Blue-chip Blues” cluster is most likely to drink Coke (Solomon, Marshall, & Stuart, 2008). Segmenting by psychographics will further help Can Lids Unlimited in forming a target market. “Psychographics segments consumers in terms of psychological, and behavioral similarities such as shared activities, interests, and opinions (Solomon, Marshall, & Stuart, 2008, p. 213).” The VALS 2 system helps match products to particular types of people (Solomon, Marshall, & Stuart, 2008, p. 213).” Consumers who are believers and strivers should be targeted for can lid marketing. Believers are conservative and trust authority and Strivers are unsure and want more money. Both groups will see the value of can lids in keeping drinks fresher longer. “Behavioral segmentation groups consumers on the basis of how they act toward, feel about or use a product (Solomon, Marshall, & Stuart, 2008, p. 215).” Can Lids Unlimited needs to identify users and nonusers of canned beverages as a behavioral segment. Consumers who purchase cans of soda or beer are primary market targets for the can lids. Consumers who use canned beer or soda and enjoy the outdoors are a more targeted market for Can Lids Unlimited. Can Lids Unlimited helps keep bugs and germs out of a canned beer or soda and help keep carbonation in the canned drink even after it has been opened. The segment profile for Can Lids Unlimited is a consumer in lower-income to middle-income bracket who purchases soda or beer in cans, enjoys the outdoors, concerned about prevention of illness and is concerned about the value of their money. Typical consumers who purchase canned beverages are concerned about the value of their money and are concerned about recycling, as well. Can Lids Unlimited will use an “undifferentiated targeting strategy by appealing to a large spectrum of people (Solomon, Marshall, & Stuart, 2008, p. 218).” One product for one size can will be manufactured and placed in stores with signage next to canned soda and canned beer in grocery stores and convenience stores appealing to consumers who purchase cans of either product. The can lids and signage can also be placed next to coolers and camping gear at discount stores, like Target, to effectively target consumers who enjoy the outdoors. Can Lids Unlimited has a potential competitor. Jokari makes the “Deluxe Can Cap” which is similar in design to the Can Lid Unlimited product. Unfortunately, Jokari’s Deluxe Can Cap does not guarantee retaining carbonation. Jokari’s can lids are priced at $10.80 per package of four can lids plus shipping and handling. They are only available through an online retailer and they receive poor customer reviews (Amazon, 2010). The size of the market of consumers who use cans is unattainable. However, “in the United States, 98.9 billion cans were produced in 2005 (Business Wire, 2005).” The demographics of the market range from the upper middle-class who drinks a Coke to the blue collar worker who drinks a Budweiser. By simply going from the number of cans produced in the United States, the size of the market is potentially 98 billion people. Pricing strategy for Can Lids Unlimited is penetration pricing based on the competition. Can Lids Unlimited should be priced at or below Jokari’s lids. In order to gain customers and keep competition low, penetration pricing will benefit sales of Can Lids Unlimited. If competitors see an easy market share of a high priced can lid, Can Lids Unlimited would face more competition. With penetration pricing, Can Lids Unlimited can reap a profit and penetrate the market. Customers will come to see the need for our can lids and develop brand loyalty to a well-priced, dependable product. Sales promotion strategies for Can Lids Unlimited include trade promotions and consumer promotions. These techniques are ways to increase consumer interest in Can Lids Unlimited and to encourage consumers to purchase Can Lids Unlimited during our product launch and to increase sales (Solomon, Marshall, Stuart, 2008). Trade promotions Can Lids Unlimited will use are discounts and deals and increase industry visibility. Can Lids Unlimited will offer a price break in the form of a case allowance to distributors for purchases of 20 or more cases at a time. The case allowance will reduce the distributor’s cost per unit and encourage the distributor to sell Can Lids Unlimited. The case allowance will only be used during a brief time in the launch stage of the product. Distributors may take advantage of case allowances and stockpile the product until the next case allowance price break is offered. In order to keep distributors motivated to sell the items quickly and keep purchasing them at regular price, the case allowance will be discontinued 4 months after the launch of the product. Can Lids Unlimited will also provide merchandising allowances for distributors. Can Lids Unlimited will reimburse distributors for cost of an in-store booth to showcase Can Lids Unlimited as well as provide in-store displays that place Can Lids Unlimited near the canned soda aisle as well as the canned beer aisle. Can Lids Unlimited will increase industry visibility by attending trade shows. State grocer’s associations and the National Grocer’s Association have annual conventions that seek companies with new products. Can Lids Unlimited will set up a booth with our sales representatives. Our sales representatives will give out free samples of Can Lids Unlimited, collect prospective customer’s information and give out pricing brochures. Can Lids Unlimited will also give out promotional products at trade shows, specifically, a t-shirt with our logo and a funny phrase, “No bugs in my beer!” Can Lids Unlimited will also offer incentive programs to distributors and sales people. Distributors and sales representatives will earn points toward a dream vacation for every case of Can Lids Unlimited they sell. Can Lids Unlimited will also pay bonuses for milestone cases of Can Lids Unlimited sold. For example, if a sales representative sells 2,000 cases of Can Lids Unlimited, the company will pay the sales representative bonus pay of $1,000. Incentive programs will keep sales representatives and distributors motivated to sell the product. Sales promotion techniques that Can Lids Unlimited will use for consumers will be a price-based cross-promotion with canned beverage companies, like Anheuser-Busch, Miller, Pepsi or The Coca-Cola Company. The cross promotion will read, “Buy a 12-pack of Diet Coke and 2 packs of Can Lids Unlimited and you will receive $1.00 off your purchase at the register!” Can Lids Unlimited will also produce an infomercial to air on television or on home shopping networks, like QVC. These infomercials will educate the consumer on the benefits of using Can Lids Unlimited to prevent germs and to retain carbonation in canned beverages. These infomercials will target rural customers and consumers who want more knowledge about products before they purchase them. Testimonials from customers who use Can Lids Unlimited will be featured, as well as testimonials from doctors who acknowledge the benefits of reduced cross-contamination by keeping cans sealed when not being consumed. Distribution of Can Lids Unlimited will be through convenience stores, grocery stores, supermarkets and discount stores. Can Lids Unlimited are an item purchased along with a case of soda or beer, which consumers primarily purchase at the store. Online and internet sales do not lend themselves to Can Lids Unlimited because of the logistics of buying beer or soda for consumers. American consumers primarily buy beer and soda at convenience stores, grocery stores, supermarkets and discount stores. By having Can Lids Unlimited placed strategically next to the beer and soda aisles, consumers can grab a package as a last minute purchase. Sales support for Can Lids Unlimited will include monitoring of sales, internet advertising, and give-aways of Can Lids Unlimited on college campuses. Sales support will also include sending representatives to parks and college campuses who can offer picnic-goers, sports players and families some free Can Lids Unlimited to use while at the park for their canned beverages. The marketing team will monitor ongoing sales and adjust advertising budgets as necessary. Can Lids Unlimited is a new idea. The idea of keeping a canned drink fresh and clean is new to the American market. Can Lids Unlimited is an add-on product, but offers a service to the penny-pinching American consumers facing a recession. Nobody wants to throw away a half-full beer or soda because a bee flew into it or little Johnny drank out of it while you were not watching. Can Lids Unlimited also keeps a canned beverage carbonated longer-a consumer can drink half of a soda, pop a Can Lid Unlimited on the top and drink the rest tomorrow. Can Lids Unlimited solves these problems for consumers and they are affordable. By carefully planning a marketing strategy, Can Lids Unlimited can penetrate this potentially 98 billion person market. References Aluminum Can Recycling Rate Rises Again; 52 Percent of Aluminum Cans Recycled in 2005. (16  May). Business Wire,1.  Retrieved April 21, 2010, from ABI/INFORM Complete. (Document ID: 1037609661). Jokari (2010). Can Lids. Retrieved April 21, 2010, from http://www.amazon.com/Jokari- Deluxe-Can-Caps-units/dp/B0020ML3P2/ref=sr_1_2'ie=UTF8&s=home-garden&qid=1271906919&sr=1-2 Solomon, M., Marshall, G., Stuart, E. (2008). Marketing: Real People, Real Choices (5th Ed.). Prentice Hall: New York.