Mexicali-Marketing Plan

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Mexicali - Marketing Plan

EXECUTIVE SUMMARY
The aim of this report is to develop a feasible marketing plan for the company Mexicali regarding the introduction of Mexicali beer to the United Kingdom. The report is divided into six chapters, including the marketing objectives, the product component model, the distribution, the promotion mix, the price strategy and determination and the financial statements. Mexicali’s target group consists of women aged between 18 and 35 years, living in England and belonging either to the middle or working class. The target group represents 5,270,100 women respectively, who are expected to purchase 8,715,000 Mexicali beers in the first year of operation according to the normal approach. These assumptions are based on the predicted market share of 1% of the cider and beer drinking women, as well as on the 0.5% market share of the wine drinkers. To attract the target group, Mexicali needs to adapt Mexicali beer matching to their demands and preferences. Therefore, the label was adjusted with a new label and packaging to exude a more feminine and fresh look. Additionally the added lime extract is emphasized with a lime on the label. Nevertheless the logo has maintained its recognizable features for the target customer. Furthermore, a slogan was developed, “Fresh’n up your life”, to represent the advertising message of Mexicali beer, which is fun, freshness and femininity. Mexicali beer will be sold in 4-packs for a retail price of £4.44 in order to stay competitive next to the primary competitors Corona, Sol and Dos Equis. In order to transport the beer from its production place in Mexico to England, Mexicali will make use of direct export on a CIF basis. The company will venture with a distributor to get the products sold to retailers, wholesalers and catering. In order to gain bigger brand awareness it would be desirable for the beer brand to be sold additionally in off-license stores as well. However there is no real off-license store chain in England or the United Kingdom. That is why the company should sell its beer at the biggest two online liquor stores. To reach the target group Mexicali will make use of promotion tools that reach a wide audience. Accordingly, a media mix, consisting of internet, TV, print media and billboard advertisement was drawn. Furthermore, Mexicali will undertake trade promotion, for example trade shows and promotional packages, to promote Mexicali beer to the distributor and sales promotion through additional gifts as well as discounts to promote the beer to customers. The promotional budget is set at 40% of the yearly revenue for the first two years of operation. In the third year the budget will be decreased to 30% of the revenues. The financial analyses indicate that the introduction of Mexicali beer to the UK market is profitable and feasible. Within the first year Mexicali will sell 8,715,482 units of Mexicali beer and generate a profit of £9587.03. With an expected revenue increase of 10% per year for the first three years, profits are expected to increase.

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Mexicali - Marketing Plan

TABLE OF CONTENTS
Executive summary ................................................................................................................................................. 1 Table of Contents .................................................................................................................................................... 2 1. 2. 3. Introduction .................................................................................................................................................... 7 Methodology ................................................................................................................................................... 8 Marketing Objectives ...................................................................................................................................... 9 3.1....
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