(Mother) Marketing Mix Strategies

(Mother) Marketing Mix Strategies

7. Marketing Mix Strategies

7.1 Current marketing mix

7.1.1 Current Product

Mother by Coca-Cola is an energy drink, is preferred by consumers who need the caffeine kicks from a can, instead of a cup of coffee at all times of the day (Robinson 2009). Mother’s formula with Caffeine, Taurine and Guarana, it will give you a 'Mother of an Energy Kick'. The benefits for the consumer include quenching their thirst, satisfying their inner energy and getting instant satisfaction for their basic physiological needs (Maslow's Hierarchy of needs 2010). It is available in 4 flavours, Original, Orange Surge, Low Carb and Lemon Bite, in a 355ml or a 500ml Can. “Mother of a mixer”, is a 250ml Can sold to the bars and clubs, and the Extra Energy Big Shot Mother for those who needs extra energy. Mother was designed with, “Heaps of Energy” (I’m Thirsty as a Mother Inferno! n.d.) across the top of the Can. It also differs itself from the previous launch, with the new red and black gothic style, and similar tattooed design name that gives MOTHER an “all-natural energy drink with attitude” .MOTHER also launched a take-home pack such as 4x500mL, 6x500mL and 6x300mL and 15x375mL (MOTHER Products n.d.). The time spent on searching for Mother is short as it is sold in the supermarkets together with the other Caffeinated drinks, or individually at the Coca cola vending machines and convenience stores. Some consumers may use a substitute product if MOTHER cannot be purchase if they are not loyal to the product, as it tastes similar to Redbull. However, it stands out from the other energy drinks such as V, Monster and Redbull with high caffeine content of 32mg per litre (Caffeine, Coffee, Tea, Cola & Energy Drinks n.d.).

7.1.2 Current Price strategy

In Australia, MOTHER exists in a competitive Energy Drink Market, which involves “V” and Red bull , energy drinks that are widely seen and consumed in clubs and shops (MOTHER LAUNCHES SECOND TVC 2008). A change in MOTHER’s pricing would attract more energy drinkers to MOTHER as the current pricing is about the same as the price of V and Red bull (Seth 2009). However, with a price increase, the demand for MOTHER would decrease as the consumer’s purchase decision is mostly made on price. Therefore, in order to maintain their market share in Australia, they are using penetration pricing strategy as their product pricing strategy. The price of MOTHER is determined by the business’s costs as it would project the amount of profits the business would receive, therefore, showing the importance of the business’s cost.

7.1.3Current distribution

Currently Mother is located at most of the convenience stores, supermarket and vending machine. Most of the time Mother placed with the other Coca Cola Products such as coke, Fanta, Sprite and sometimes it placed with other energy drinks vending machine (The Coca Cola Company 2009). As Mother contains caffeine, this is very useful for consumer who needs this caffeine and energy to stay awake for study or exercise. Therefore, Mother can be found in most of the places like cafes school, fitness center or office center where it can be purchased for home consumption for stay up to perform their task (Finnegan. 2003, 150)

7.1.4 Current Promotion

There several of promotion has already been executed by Mother such as the promotional message, “ New Mother Surge of Energy’ was print at the its top of 500ml can, indicating that that the products gives a high content of energy (Lee 2008). Also, another well known promotional message “ Taste nothing like the old one” exist in most of the Mother’s advertisements such as the “Hunting down those responsible for the old Mother” and the “Mother stick film” (Adam Group 2009). What Mother is promoting now, is the difference taste from the early production, which failed because of the awful flavor which consumer dislike. The current promotion, “Mother of all Energy hits”, use the same message as the early promotion as Mother wants to continue use the same message, which would then leave an impression of the kind of energy hit that the consumer will get, without regret (Seth 2009).

7.2 Recommended Marketing Mix

7.2.1 Product Recommendation

Based on the various flavours for Mother energy drink, it is recommended that Mother could also develop other flavours such as grape and mango while these also provide refreshment to target market. Moreover, Mother can develop various product lines such as healthy drinks, alcoholic drinks as well as dairy products instead of just energy drink. Since “Mother” this product name meaning a mother of nature so that we can focus it to eco-friendly production. For example, reduce the carbon emission designed for the materials of the packing box and Can.

7.2.3 Pricing Recommendation

Again, MOTHER exists in monopolistic competitive market in Singapore because there are a lot of competitors, but each one sells slightly different products such as red bull, H-two-o and 100 plus (energy drinks 118 Products n.d). Also, MOTHER’s products are classified as price elastic demand product because change in the price of its products will significantly reduce consumers demand due to the intensive competition. Therefore, MOTHER may consider market-based pricing to compete with its competitors in Singapore such as red bull and H-two-O. With their pricing strategies, MOTHER has to pay attention to what competitors are offering and price its products at either slightly above or lower depending on the brand image of MOTHER in the perception of consumers. Additionally, in order to help MOTHER to increase their revenue and acquire enough market shares in Singapore market, they may focus on a low cost competitive advantage. Hence, MOTHER should use penetration pricing strategy for its products. Moreover, MOTHER may implement product line pricing for its one product with various class distinctions. For example, $2.50 is the price for MOTHER 500mL, $2 for MOTHER 300mL and $1.50 for MOTHER 150ml .

7.2.3 Distribution Recommendation

Mother energy drink is a convenience product, so their distribution will be extensive to ensure their availability at a significant number of locations. This product is characterized by the young age of its consumers, their tendency to be loyal to Mother but notoriously fickle toward other brands, and the impulsiveness of many purchase decisions. Mother energy drink can use a vertical marketing distribution system in Singapore, Mother will follow short channel strategies and will use different intermediaries to reach target markets. This indirect system will be cost-efficient and offer superior customer reach. These intermediaries have the requisite experience and possess economies of scale and scope. Mother energy drink will use the parent's current logistics system to ensure on-time deliveries to wholesalers and retailers, whatever the seasonal demand. Also, Mother energy drink is not chasing the convenience market, instead, the distribution strategy for Mother Energy drink to use in Singapore is to position themselves in only the best most premium night clubs, bars, gyms and hotels, the convenience market is not a priority in the short term. But in the long-term perspective, Mother still will swarm into Singapore convenience stores, supermarkets, cafes, school canteens, and other small operators so that customers can endure the least time to access the product. In addition, it is critical that Mother energy drink gains the support of trade customers. Retail in-store promotions strongly affect consumer purchase decisions as a good percentage of buying is impulsive. Retailers should suggest customers try the product. The ability of the retailer to do this depends on the incentives Mother is prepared to offer. In some venues, retailers are not prepared to "spruik" products. For example, supermarkets generally do not push products at the point-of-sale. Therefore, convenience stores such as 7-Eleven and major service station chains represent the best hope of in-store promotions, such as cold storage and NTUC. On the other hand, for the ease of retailers and wholesalers, Mother will provide an online portal through which they will be able to place orders well in advance. This helps to centralize much of the relevant product information, and improves stock control, sales data and forecasting efforts.

7.2.4 Distribution Recommendation

Furthermore, Mother can considered to adopt several promotion in Singapore such as price promotion whereby a discount to the normal price due to special events like road show or it could also add more access and benefits to the same amount of price. In other words, additional values are incorporated. However, Mother energy drink should aware of the possible expenses of loss in profit due to increase sales gain from price promotion.

Discount coupon are another versatile way where it can be adopted in several ways such as discount coupon can be printed on magazine or local newspaper in associated youngster magazine or local newspaper in Singapore to allow customers to redeem the coupon printed. This could encourage and attract new customer to try out Mother energy drink while also keep the existing customer to repetitive purchase at the promotion price.

To target Red bull user Mother energy drink should co-sponsor a local concert, or team up with a music venue to have free drink where they can gain people attention and the first trial. Besides they can also team up with an alcohol company whose alcohol can be used to mix with Mother energy drink. Place shelf talkers on their products that feature the drink recipe, as well as offer discounts on Mother energy drink.

Advertisement has been done by Mother energy drink virally through Facebook, tweeter, coca-cola website and social media. This is satisfactory as Singaporean individuals are connected through social media already. Furthermore, advertising campaign can use celebrity endorser to promote their drink where it actually can attract more young people. Moreover, the advertising campaign may include the feedbacks from people toward the taste of mother energy drink.