NEW JUICE MEDIA AND ADVERTISING PLAN

New Juice Media and Advertising Plan



New Juice Media and Advertising Plan

New Juice has been a successful product brand in the city of Richmond for three years. The company's natural, 100% fruit juices has grown in sales by 15% each year and is now available in over 100 store outlets in the greater Richmond area. New Juice will gross £580,000 in sales this year. This was generated from a initial investment of £180,000.

New Juice is planning to expand its operation to include distribution to stores within the entire state.  Owner funding and internally generated cash flow will enable most the expansion plan.   The company will also secure a £100,000 short-term loan.  Sales projections for the next three years are based on current sales success with the target customer base in Richmond.  Initial contacts have been completed with retail outlets throughout the state and the potential target markets have been identified.

The demographics of New Juice customers are as follows:

Young professional, ages 25 - 45;

Average income of £40,000+ a year;

Involved in athletic activity;

Shop in upscale health/natural food stores.

Market Segmentation

New Juice has identified seven metro locations within the state where we can reach our target customers:

Montclair;

Riley;

Ashford;

Tracy;

Wilmington;

Langsford;

Willard.

Market Analysis

2002

2003

2004

2005

2006

Potential Customers

Growth

CAGR

Montclair

10%

60,000

66,000

72,600

79,860

87,846

10.00%

Riley

10%

75,000

82,500

90,750

99,825

109,808

10.00%

Ashford

10%

85,000

93,500

102,850

113,135

124,449

10.00%

Tracy

10%

75,000

82,500

90,750

99,825

109,808

10.00%

Wilmington

10%

62,000

68,200

75,020

82,522

90,774

10.00%

Langsford

10%

90,000

99,000

108,900

119,790

131,769

10.00%

Willard

10%

48,000

52,800

58,080

63,888

70,277

10.00%

Total

10.00%

495,000

544,500

598,950

658,845

724,731

10.00%

Product

The Product that is to be launched into the market is Fizz®, which is a soft-drink that is quite similar to the likes of Coca Cola and Pepsi which currently dominates the market. Profit can be made because research shows that an average can of soft drink costs approximately eight baht to manufacture and can be sold at a significantly higher price.

The product is durable because if retailers put the stock in a refrigerator, it will stay undamaged for a long time. It is moderately easy to manufacture because the product is very simple and unlike complicated products like cars, does not require much labor to produce.

Packaging: The product will come in two different sizes so there will be two different types of packaging. There will be a 350 milliliters can and a 1 liter can as well. A liter bottle of soft-drink costs about 15 baht to manufacture and can be sold at about twice the cost. The 350 ml will be packaged in the same fashion as those of Coke and Pepsi bit the labels would be more visually appealing. It is commonly known that people judge a book by looking at the cover, in other words, the consumers' decisions on which products to purchase is influenced significantly by the appearance of the product rather than functionality.

Promotion

The method of promotion that will be used is "sale promotion". Buy four cans and get one free is the deal that I ...