EOC: Week 10: Marketing Channels

The distribution of Mormon Crunk Juice is highly important; this ensures that we reach the consumer market.  In order to assist with the distribution of our products we will implement various marketing channels.  The first channel of distribution will be from a reseller approach.  Resellers  will be key because they will be able to sell directly to the consumers, allowing also for them to take ownership of the products in order to sell to others.   The main resellers  will be in Salt Lake City, Las Vegas and Hawaii .  These cities are key Mormon territories, and well populated with members  of the religion.  To expand the reseller aspect we will use multiple resellers within the company thus establishing a reseller network.” If a marketer utilizes multiple resellers within its distribution channel strategy the collection of resellers is termed a Reseller Network.” Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing  However the network will be setup with exclusive distribution; thus only allowing certain distributors to represent the product. “Exclusive distribution also enhances the brand’s image and allows for higher markups.”printed page 324 This will allow us to protect the image of the Mormon religious beliefs.  Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing  To increase sales, and distribution we will also incorporate industrial distributors.  We will implement key personnel at all Mormon Missionaries MTC centers.    This will allow us to do business to business distribution throughout the United States.   There is a certain population who frown upon Mormon religion and practices, and we will have very limited supplies in those areas, .to cut back on product distribution lost.   So there’s no need to be wide open with our channel markets.  “Rolex gains stronger dealer selling support and more control over dealer prices, promotion, and services”.  pg 324 Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing

BOC WEEK 10 FAMOUS LEMON AD FOR VOLKSWAGON

The commercial title Lemon was done by DDB Germany advertising agency for Volkswagen Car parts.  Inspector Kurt Kroner, found that the chrom strip on the glove compartment was blemished and needed to be replaced.  Bout how could he be the only one to find this error?”For factual quality of the Volkswagen bug there are about 3,000 are produced daily.  With over 3,389 men and women with only one job, to inspect the cars, how could this happen? ” In an age of blustery pitches glorifying size, power, and prestige”.  With the advertising agency running an add like this, it helped developed an instant pitch for the Volkwagen company.
“We pluck the lemons; you get the plums. “http://www.powerwriting.com/.  So as a result, this ad didn’t hurt the car company, in fact it help revolutionize an effective means of advertising.  the selling of the car was definitely hard during the time it was developed.  However with this ad, it helped boost the sales of the car.  According to the top 100 ad advertising campaigns, this ad was the number one ad on the list. http://adage.com/century/campaigns.html.
“Before the advertising campaign for Volkswagen Beetle, ads were either information-based and lacking in persuasiveness, more fantasy than reality, or relied on the medium's ability to deliver a repeated exposure. Being breathtakingly simple, Beetle ads, connected with consumers on an emotional level, also conveyed a product benefit in a way consumers could relate to. That was the thing that made the advertising campaign for Volkswagen Beetle so radical. "Think small" (the text highlighted the advantages of driving the small Beetle versus a big car); the other presented the car with "Lemon" in a bold type (the ad copy explained that the chrome strip on the glove compartment was blemished and had to be replaced. “http://www.syl.com/bc/advertisingcampaignforvolkswagenbeetletheno1advertisingcampaignofthecentury.

Implementation Eval Control

To implement a plan, is to simply put the plan into action.  Wyth Nu Productions CEO De Andre Robinson knows too well about strategic planning and action.  With a Honorable Discharge from the United Stated Marines Corps, he has had to planned strategic training on domestic and international soils.  With this experience he clearly understands the importance of the implementation marketing for Mormon Crunk Juice.  “Whereas marketing planning addresses the what and why of marketing activities, implementation addresses the who, where, when, and how.” Pg 57  Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing To address these questions the who, well these are the consumers.  Rather they are members of the Mormon religions, non-members, or friends and family, they are the essential part of the marketing plan.  Once again, we are not using them to gain revenue, but to gain and strengthen relationships.  Next is the where?  We plan on delivering our Mormon Crunk Juice throughout the United States, especially within the rural communities. This allows the MJC to reach every angle of the population and communities, and everyone can be included no matter their location.  We will be rolling out or trucks, the week before Christmas, preferably doing Black Friday Weekend.  We feel this is a prime-time to introduce or beer to the holiday shoppers, since they will be out in masses.  We will continue to deliver the product throughout the Holiday season, until Feburay  due to football event, New Years, and Valentines Day.  At the beginning of March, we will do marketing analysis on how well the beer sold.  We will hire Market Managers within all of our markets, who will be responsible for generating reports, on a quarterly basis.  “Market managers are responsible for developing marketing strategies and plans for their specific markets or customers. This system’s main advantage is that the company is organized around the needs of specific customer segments” pg 58 Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing     This allows Wyth Nu Productions to measure where the strong and weaker segments are located and where we may need to bump up promotions, and where the relationship bond may be weak.  Once again allowing us to strengthen the bond between Mormon religious members and their family and friends.                                                                         

Marketing Mix: Price

In order to set pricing for our Mormon Crunk Juice we must consider a few factors, such as economic times, competitors prices, and production cost.  The purpose for the creation of Mormon Crunk Juice is not to make money, but to strengthen relationships and give Mormon Church Members a since of connection. “Pricing strategies usually change as the product passes through its life cycle. The introductory stage is especially challenging. Companies bringing out a new product face the challenge of setting prices for the first time. “pg 285 Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing.  As a result we will implement Uniformed-delivered pricing.  “Uniform-delivered pricing is the opposite of FOB pricing. Here, the company charges the same price plus freight to all customers, regardless of their location” Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing  By setting up uniformed delivered pricing, we can ensure that our customer’s can afford to purchase our beer no matter their financial status.  When setting our prices for our Mormon Crunk  Juice we will offer our 11.2 individual bottles for tw0-dollars each.  Since it’s more that a sports drink or water we figure that’s a reasonable price.  We will also offer a six pack of our 11.2 bottles for six-dollars and fifty cents.  For those who really enjoy the beer, we offer a pack of twelve for twelve dollars.  Being aware of our customer’s financial situations we will also run various promotional campaigns, to help save the consumer a buck or two.  With being in control of our product delivery system from trucks to owning our own warehouses; we don’t have to increase the prices to cove these elements.  This way our customers can afford to purchase our brand and strengthen their relationships.

Marketing Mix: Promotions

“Manufacturers are now searching for ways to rise above the clutter, such as offering larger coupon values, creating more dramatic point-of-purchase displays, or delivering promotions through new interactive media, such as the Internet or cell phones.” Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing   With today’s social and interactive media tools available Wyth Nu Productions will utilize to run promotions.  We will purchase our own blimp to advertise at all BYU sporting events, and all church related events.  In order to entice college students to purchase the beer, we will offer scholarships, and also a percentage off of tuition for a semester.  There probably wont be any newspaper advertisement, just due to the cost of the advertisement.  Since the church has its own television station, and website, these media outlets will be key to promotions.  We will connect to web affiliates and give discounts for people who come through those channels.  For every appointment set by the Missionaries, that family will receive a discounted coupon.  “All kinds of companies now offer rewards programs. Such promotional programs can build loyalty through added value rather than discounted prices” Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing   At Wyth Nu Productions brewery we want to build value and strengthen relationships.  So we offer rewards points and coupons, for a certain amount of purchases of  MJC.  These rewards points can be redeemed for Airline tickets, theme park discounts, car rental, etc.  With this in place we will be providing consumers something of value in return for their purchases.  Some other items will be giveaways at the various colleges, church events.  These items may include t-shirts, bumper stickers, and key chains.  At some not all locations particulary grocery stores we will have samples of the beer for people to taste.” Samples are offers of a trial amount of a product. Sampling is the most effective…—way to introduce a new product” Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing   

Marketing Mix Distribution

“The extreme form of this practice is exclusive distribution, in which the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories.” Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing Mormon Crunk Juice distribution has to be carefully distributed.  We must place our product in those who believe in the Mormon religious practices.  Our distribution will mainly be handled by Mormon Missionaries, and some Mormon warehouses.  The warehouses will then stock the Desert stores, bishop storehouses, and other locations.  In every city within the United States Mormon Missionaries are placed to spread the religion and convert non-members.  By placing the Mormon Crunk Juice into the missionaries handles we can ensure personal one on one of the MJC.  The missionaries are not allowed to take cash from people, therefore we will appoint a salesmen or woman  go with them out on their appointments.  These individuals will responsible for the overall distribution and sale of the product.  As far as our transportation, warehouse, and shipping costs, they also will be streamlined for cost effectiveness.  “However, transportation, inventory, warehousing, and information management activities interact” pg 335 Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing   When the missionaries are being transferred to another area, or new ones are just coming on their mission, they are sent to Mormon Training Centers.  Wyth Nu Entertainment will centralize its own trucks, (from the Albertson’s grocery chains),  within MTC in order to ship the MJC.  Inventory counts will be conducted by members of the church on a volunteer basis.  As a new brand we may use the internet, with information posted on the website lds.com.   On other website, we may do what is call affiliate programs, directing traffic to other people sites.  As long as the sites do not hender or destroy the image of the brand or product.

Marketing Mix: Product

“Unsought products are consumer products that the consumer either does not know about or knows about but does not normally think of buying.” Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing  pg 211.  With the introduction of Mormon Crunk Juice, we are aware that in its beginning stage it will definitely be unsought.  However with implementing strategic marketing and product analysis we are confident MJC will become a popular beer brand.  The Mormon Crunk Juice only contains .5 percent of alcohol, still making it a non alcoholic beverage.  Its main ingredient is its yeast.  We used Ale based yeast to add the flavor to the beer.” Food and beverage manufacturers are thoroughly familiar with these esters and often use them as additives to spruce up the flavor or odor of a dessert or beverage” http://www.beersmith.com/  The next ingredients that we add to the formula are "4 oz. each of bayberry, poplar bark and hemlock; 2 oz. each of ground ginger, cloves and cinnamon; and 1 ounce of cayenne pepper.  We utilize raw materials such as “Raw materials consist of farm products (wheat, cotton, livestock, fruits, vegetables) and natural products (fish, lumber, crude petroleum, iron ore).”pg 212 Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing.  This allows the brand to be full of ingredients that can also provide nutritional value to our consumers 

MJC is brewed using traditional brewing methods in steeled brew kettles.  Before shipping and filling the bottles, there is a pasteurization process.  This ensures that the  packaged beer can be shipped and stored without refrigeration.  We then bottle it up in 11.2 fl oz plastic bottles.  Since the MJC is not your typical beer brand, we choose to use plastic bottles similar to water Voss water bottles.  This allows us to have a different look than our competitors.  When you drink Mormon Crunk Juice you are drinking contents that can strengthen your body as well as your relationship no matter your religion.

Final Project Target Strategy

To fit within a well planned marketing strategy, Wyth Nu Productions will follow three simple principles.  The first of the three will be differentiated marketing, better known as segmented.  Our first approach will get majority of a population of the Mormon religion to buy our beer brand.  Well will fly sales people to Salt Lake City and Hawaii.  In Salt Lake City there are over 85% of the population Mormon members.  We will setup stands outside of grocery stores, malls and events such as the Latter Day Saint Priesthood Conference.  Once we establish as customer base there we will then good to the campus of Brigham Young University.  The college is a Mormon based college.  The BYU Cougars football team will be hosting the 5^th Annual Mexico Bowl, on December 18^th, 2011.  We will make sure that we position salesmen and women at such record setting events.  “Thus, in target marketing, the issue is not really who is targeted but rather how and for what.” Pg 193 Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing  We feel that by targeting members first, at sporting events, church events and other Mormon based events we are not violating any rules or regulations.  The next principal we believe in is micro marketing.  With micro-marketing we will be able to allow The Mormon Missionaries to target families, or non-members individually.  This allows for more one on one about the brand and the reason for its creation.  The Mormon Missinaries have been vey effective with teach people about the religion and getting people to convert to the Mormon Religion.  Last but not least, “A company should enter only segments in which it can create superior customer value and gain advantages over competitors”. Pg 186 Armstrong & Kotler (2011). Marketing: An Introduction, 10th Ed. Prentice Hall Publishing .  We have an edge over our competitors, because Mormon religious members, and some non members do not drink alcoholic beverages.  Therefore by creating the non-alcholic Mormon Crunk Juice, we can target them, and create a competitive advantage over our competitors.