Thepopulation of Kuwait is about 3.9 million, with the majority of thembeing in the bracket of 34yrs and below (Khorshid & GulfCooperation Council, 2002). That would provide a substantial marketfor the brainpower cup since the target markets are the youth and thelearning institutions.
Themarket size is massive considering that there is no similar producton the market (Cahill, 2006). The product is unique, and therefore,it would capture the attention of the market fast. One of thestrengths of Kuwait settlement pattern is that the majority of thepopulation lives in the urban areas which would make marketdistribution and marketing of the product quite tenable.
Themarket profitability would be determined by purchasing power of thepeople. However, that should not be a big issue considering thatKuwait is a wealthy nation with stable incomes (Hooley, Saunders, &Piercy, 2004). Profitability of the product would also be enhanced bythe uniqueness of the product, brainpower cup. Despite a lack ofcompetition at the moment, it would be important for the firm tointroduce a fair price as it enters the market. The rationale forfairness in price is that customer loyalty is created and enhanced toavoid mass rejection of the product in the event of the entry of acompetitor (Kotler, 1980). An important element that would determineprofitability is that the target market consists of heavy spenders.Products that target the youth have been known to perform quite wellaround the world.
Thebrainpower cup targets the learning institutions and the youth, butwith effective marketing strategies, it should target the entiresegments of the population (Cahill, 2006). The youth has a lot ofinfluence in decision-making at the family level and therefore itwould be significant to win their confidence from the beginning.Based on the function that the product serves, the entire segment ofthe population would be captured which is a huge advantage to thecompany.
Thetarget clients in the learning institutions are the youth who areknown to spend more than the rest of clients in any markets. Due tothe uniqueness of the product and the purchasing power of the Kuwaitpopulation, the customers targeted consist of people of all the agebrackets
Theonline market is significant in the introduction of the product. Thetargeted market is highly engaged with technology. The firm shouldexploit the role of social media to popularize the products (Cahill,2006). All available online platforms should be utilized fully. TheFacebook and Twitter, which are famous sites in the country, shouldbe properly used to penetrate the market.
BusinessEnvironment and Market Trends
Thebusiness environment in the entire major region of the country isquite conducive and responsive to new products. With the populationconsisting of high literacy levels the flow of information is fastand the market is ready for new products at any given time. This ismore so pronounced for unique products such as the brainpower cup.
Portersfive force model
Oneof the greatest advantages for the firm as it makes an entry into themarket is that it has no competition as the product does not exist inthe market. Therefore, the competition, between suppliers will not bean issue (Hooley, Saunders, & Piercy, 2004). This aspect of themodel would, therefore, be shelved. The only known competition wouldbe posed by suppliers of related products such as the energy drinkswhich are already in existence in the market.
Thefirm is also introducing the product into the market for the firsttime. However, it should exploit the opportunity well as there islikely to be other products expected in the market shortly.
Threatof new market entrants
Thebuyers will have a massive bargaining power as they will compare theprices with prices of other energy drinks that are already inexistence in the market. Despite the lack of existence of the similarproduct in the market, the firm would still have to contend with themassive threat from the entire beverage industry market. Thepopulation of Kuwait is highly enlightened and, therefore, is awareof their rights as consumers and would make every effort to get thebest deals on the market (Kerin, 2006). The bargaining power istherefore quite high.
Thepower of suppliers
Thefirm or the supplier is quite powerful in the marketing of thebrainpower cup. That is mainly based by the uniqueness of the product(Mitręga, 2006). The company should make proper use of the existingpower and influence at the introductory level to assert its controlof the market.
Thethreat of substitute products (including technology change
Thethreat firm substitute products are real in most markets and theKuwait market is no exception. The firm should, therefore, positionits product well from the start so that it can cope with any presentand the future threat that could be informed by the existence ofsubstitute products in the beverage industry in Kuwait.
Bargainingpower of buyers
Thebuyers would have a higher bargaining power based on their exposureto related beverages in the market (Cahill, 2006). Despite the factthat the cup concept is new in the market, an enlightened society inKuwait is much aware of market dynamics.
Existingrivalry between suppliers
Therewould be rivalry between the suppliers as they endeavor to outdo eachother in the beverage market. There could also emerge rivalry betweendistributors as they may make attempt to enter into a franchise withthe new firm.
Oneof the strengths of the firm and the product as the move to enter themarket is made is that the product does not exist in the market. Theproduct also targets mainly the youth who are the majority of theKuwait population and have a lot of influence in the market (Hooley,Saunders, & Piercy, 2004). A good entry strategy would,therefore, enable the firm to assert its authority in the market
Thefirm is, however, weak in the sense that it is introducing theproduct into the market for the first time and may not be veryconfident about the response of the customers (Hooley, Saunders, &Piercy, 2004). Lack of familiarity with the Kuwait market could,therefore, be one of the biggest weaknesses of the firm as itintroduces the brainpower cup. The products used, mainly water andmilk are consumed in several other ways and therefore, the companywould be compelled to be convincing about the difference that theirproduct provides.
Theopportunities available for the product are massive despite therelatively small population of Kuwait as a country. The opportunityis mainly dependent on the target market which is quite embracing tonew products.
However,the threat of the real energy drinks in the market is real. There isa threat of future entrants into the market. Unless the firm hasother distinctive advantages, the introduction of the product shouldbe ready for this possibility.
Internal& external competitive analysis
Theinternational competition would mainly come from related productssuch as the energy drinks. However, the concept of brain power Cup isstill new in Kuwait and therefore, the firm has no seriouscompetition at the point of entry (Grewal & Levy, 2010). Theexternal competition should be factored as there will be othercompanies that are likely to enter the market in future based on thesuccess of the brainpower cup. That is a fact that no firm shouldignore no matter how much monopoly it enjoys at some point in time.
Resource-basedanalysis of competitive advantage
Theresources of the company will be dependent on how much it is ready toinvest in the production, marketing and distribution of the product(Kotler & Armstrong, 2006). That would mainly inform theadvantage it will have over future entrants in the market. The firmshould utilize well the current contexts to position itself regardingresources to have advantages over companies that offer relatedproducts in the market.
Thecompany has analyzed its capabilities and is well aware of what itcould deliver to the Kuwait market ( Kerin, Hartley &Rudelius,2011). The customers are enthusiastic and open to newproducts, and the firm is ready to take up the challenge. The companyis also well positioned to take advantages of the excellent businessenvironment in Kuwait.
Theexisting opportunities have been thoroughly analyzed. There exists amassive market for the brainpower cup and useful strategies to enterthe market would guarantee proper exploitation of the opportunities(Hooley, Saunders, & Piercy, 2004).
Targetingand Positioning Process
Thetargeting process has been completed. The targeted market regardingpopulation segments has been identified. The company is wellpositioned in its endeavor to make a grand entry into the market.
Marketingstrategy for products and services
Themarket approach to the introduction of the brain power Cup would beto help the customers solve a problem ( Mitręga,2006). With theintroduction of the container into the market, concentration andfocus problems among students would be eliminated. Another strategythat has been employed in the marketing of the product is thecollaboration with influencers in the market, mainly the electronicmedia. This is informed by the power of the media to shape opinionsand hence influence markets of products and services (Ganly &Frank, 1994). There has also been the emphasizing of customers tointeract so that they share and exchange the available informationabout the brainpower cup. A lot of experiment has been done on thesocial media platform to enlighten and inform the customer about theavailability of the product in the market.
Thepricing that will be adopted has put into account the fixed andvariable costs incurred the production and distribution of theproduct ( Kotler,1980). The completion mainly from sellers of relatedproducts has also been considered in line with the objectives of thefirm to have a grip on the market. The wiliness of the target marketand the group has also been discussed in the pricing of the brainpower cup. All that has been done to enable the product is wellpositioned in the market. The prices of related ready to drinkbeverages are 0.12 to 0.15 Kuwait and therefore the prices forbrainpower around those values.
Thefirm has established extensive distribution networks. It hascollaborated with distributors in the beverage industry to achievethe objective.
Theintegral promotional mix aspects will be employed. Public relationsmeasures have been applied to popularize the firm and its products.Advertising has been and continues to be conducted in Kuwait toinform the public of the availability of the product in the market(Khorshid, & Gulf Cooperation Council, 2002). Sales promotionsare ongoing around the targeted areas and segments of the market.Personal selling has also been employed.
Thee-marketing is a significant marketing strategy that cannot beignored by any serious marketer. In the commercialization of thebrainpower, cup e-marketing has been fully utilized and the role ofthe social media has been acknowledged. It is hoped that it willgreatly enable the product to reach a wider customer base within theshortest time possible.
Themarketing budget has been allocated based on the objectives andstrategies employed (Hooley, Saunders, & Piercy, 2004). Theeffect of present and future competition has also been factored. Thebudget is moderate considering that almost the entire market inKuwait is concentrated in the urban centers. The administrativesupport mechanisms have well been laid out.
Theimplementation of marketing has adopted a multidimensional approachto take into account the dynamism of the market (Grewal, & Levy,2010). Practical and modern strategies of marketing have beenadopted, and all control measures to regulate the market are inplace.
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