Vitango

free essayVitango is a drink produced by the Coca-Cola Company. It contains all vitamins and minerals necessary for people on a daily basis, thus it will be distributed in Botswana, where many people suffer from anemia and other diseases caused by mineral deficit. In order to sell this product successfully, it is vital to develop a competitive marketing plan.

The market segmentation strategy for Vitango should be geographically oriented. This strategy should be selected, because the need for the vitamin drink is not the same in different countries and regions. The poorer a country is, the higher the need for the vitamin drink is. Thus, all target countries should be segmented according to their need for vitamin products. The first segment should include developed countries, the second one – countries with middle level of development, and the third group should comprise developing countries. The variable of segmentation is the level of countries’ development. This variable is the most relevant to Vitango, because people’s nutrition mostly depends on a country where they live. For example, in developed countries such as the US or Japan, most people can follow a well-balanced diet and, as a result, receive all necessary vitamins and microelements from their everyday foods. In countries with middle level of development (like the countries of former USSR), eating standards are lower, but still people get all minerals and vitamins needed for proper functioning of a human body. In both types of countries, people may have some problems connected with vitamin or mineral deficit, but they usually can afford to buy some medicine to cope with this problem. At the same time, in developing countries (for instance, most African and some Asian countries) people suffer from malnutrition and deficit of vitamins and minerals. Thus, the level of countries’ development is chosen as the variable, because it determines whether people need buying Vitango to be healthy or not, and how much of this drink they should consume to avoid health problems.

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The variable comprises three segments: developed countries, countries with middle level of development, and developing countries. Those segments are mutually exclusive, because all countries can be grouped according to their level of income and development. It is possible to use common classification of countries, like UN classification, or to develop a unique one that would be suitable for Vitango. In order to make all segments mutually exclusive and all-inclusive, it is necessary to select a particular criterion for classification, which should be the same for all countries. For instance, it is possible to choose GDP level, GDP per capita or the average income of household as a criterion. For each of three groups, a particular limit in a certain monetary size of GDP, personal income etc. should be set. Thus, all segments will be mutually exclusive and all-inclusive, as each country will belong only to one particular segment.

The target market for Vitango consists of developing countries. It is due to the fact that in developing countries, the largest percentage of people suffer from malnutrition and deficit of vitamins and minerals. Thus, this group of countries has the highest need for Vitango in comparison to other segments. In developed countries and countries with middle level of development, some people may need additional vitamins and minerals, but they can afford to buy medicine to cure the deficit. Thus, they are not likely to be interested in Vitango. At the same time, in developing countries, many people who suffer from malnutrition are poor, and they cannot afford to buy medication. Thus, Vitango will be a good alternative for them providing that its price is relatively low. Therefore, this product should be promoted and sold in developing countries.

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The positioning statement for Vitango is as follows: For people who need more vitamins and minerals for good health and well-being, Vitango is the best choice, as it provides a complex of all required vitamins and minerals for a reasonable price. Thus, we want to make target consumers think of their health and realize the benefits brought by Vitango, when they hear the name of the product.

For Vitango, the core product is its benefit: a full complex of vitamins and minerals for good health and well-being for a reasonable price that is not offered by competitors. Customers will buy it, because they expect to receive this benefit from it. An actual product is a drink sold in different packages, for instance, in bottles and cans of different size. It makes the product convenient for different groups of customers. For single users, it will be available in cans and glass bottles of 0.33 liters and plastic bottles of 0.5 liters. For small families, bottles of 1.5 liters will be sold; for large families bottles of 2 liters will be available. The augmented product includes all additional services available to customers. For example, they can visit special presentations about Vitango and its benefits. They also receive free brochures about all vitamins and minerals that the drink contains and their use for health.

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Vitango should be distributed via a two-level distribution channel. The Coca-Cola Company, a manufacturer, should sell it to a wholesaler in Botswana. In its turn, a wholesaler should spread Vitango among retailers, which should sell the product directly to consumers. These levels are necessary, because the price and size of the product are relatively small, and it is consumed everywhere. Moreover, most retailers in Botswana are represented by small local shops. Thus, it might be difficult for the producer to sell the product directly to retailers. It is better to use the services of a wholesaler that is a local company, because its managers know the local distribution system and retailers. Retailers, mostly small local stores, can sell the drink to consumers in large and small towns and villages. Thanks to this distributional system, Vitango will be available throughout the country.

The selling price should be determined taking into consideration current local prices for similar products in Botswana. It may be a bit higher than a price for carbonated drinks, but not too high for poor consumers. To make the price lower, it is possible to sign a deal with the governmental institutions and introduce a program of distributing Vitango for a reasonable price, since a part of price will be paid by the government in order to support public health.

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Good promotional strategy is necessary for Vitango, as this product is innovative in Botswana, and consumers do not know about vitamin waters yet. In order to advertise the product, different channels can be used. Since Botswana is a poor country, many people do not have access to Internet and other innovative advertising channels. Thus, it is necessary to focus on channels that are more traditional: outdoor advertising, advertising in newspapers, on radio etc. It is better to focus on outdoor advertising, because it is available for the majority of population. In terms of public relations, it is better to focus on corporate philanthropy and sponsorship, because these activities are respected in poor countries with a lack of financial support. Through such activities, Vitango will receive publicity, as this product will be associated with philanthropy and sponsorship of different events. Sales promotions will be ensured via different free presentations throughout the country. As a result, potential consumers will get free samples and will be informed about the drink and its usefulness. The sales force plays an important role, because many salespeople are required to promote the product throughout the country. The more employees are used, the faster Vitango will be promoted.

In conclusion, this marketing plan is effective for Vitango, because it is developed taking into consideration the product’s peculiarities and the country where it should be distributed.