Current Financial Position6
Current Marketing Strategy7
Current Marketing Mix7
Alternative Marketing Strategies9
Want Beverages is a business owned and operated by Bill and Angela Moffat alongside their Spellbound business, that sells energy drinks to young action sports consumers in Canada. They are faced with the challenge of defining their distribution intensity within their financial constraints, such that their product is convenient and available to their consumers and increases brand awareness among their target market. Want has a differentiated product that is promoted effectively to its niche market, but lacks the external financing and human resources required to achieve a desired level of profitability and brand awareness. The company is faced with negative retained earnings and struggles to succeed in the rapidly growing, highly competitive energy drink industry dominated by Redbull. Want must develop a defined marketing plan in order to attract potential equity investors or lenders. Want must redefine its distribution to selective intensity, focusing only on non-traditional retailers like West 49, and specific convenience stores located in close proximity to their target market. This strategy ensures the company increases sales, maintains flexible inventory and promotes brand awareness within its target market. Want will be positioned based on its key product attributes of taste, design, and packaging. Its value-based pricing strategy will be a benefit for the price-sensitive target market, since Want is priced at a lower level relative to its competition. The company will remain with its current manufacturer in order to achieve maximum flexibility in its ordering and inventory levels. Want will maintain its socially responsible promotions, with the addition of hiring 5 sales representatives to further increase its brand awareness. Based on the implementation of this marketing strategy, Want can expect to attain a profit of $33,795 by the end of its second year of operations. Key Decision
Want Beverages is currently facing a problem of defining their distribution channels within their financial constraints, such that their product is convenient and available to their consumers while promoting brand awareness for their target market.
The Moffats hope to see Want become a profitable and reputable business in the near future alongside Spellbound. A lack of financial resources has severely limited the growth potential of the company. Securing financing arrangements is imperative for Want to increase brand preference and see profitability in the near future. Their current marketing plan must be altered in order for the company to look attractive to potential investors or lenders.
The most important stakeholders are Bill and Angela Moffat. They have invested a significant amount of time and personal savings into Want beverages. They want to build a business that is strong and profitable on a long-term basis. Thus, if Want is successful, they can benefit from the profits earned and success of the business. In contrast, the Moffats could lose considerable amounts of money and time if the company fails to become profitable. Bill and Angela also face the risk of having two unprofitable businesses by ineffectively...