Marketing Plan: Phase III Paper
April 21, 2008
Marketing Plan: Phase III Paper A clear vision and strategy has been developed for Gatorade’s new energy drink the Drive Energy Drink. With that said, the next step to developing the product is to determine the attributes, the product life cycle, and positioning and price strategy of the product. Knowing the right look and feel of the drink can increase sales and use of the product. How will the product be introduced to the consumers? How long will the product last on the market until new ideas will need to be developed? What position will the drink have in the market and how will it differentiate among its competitors? What prices will the product be sold at to
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Upon rebounding sales, Drive will proceed into the market growth stage of the product life cycle. It is during this period where the sales will skyrocket along with profits, which makes this the most profitable stage for the industry. Unfortunately this is also the time when competition will begin and it is vital to keep a close check on the introduction of new products in the same market as Drive. The high profits are wonderful and to ensure that they do not decrease at a dramatic pace the corporation must be prepared with a marketing strategy that addresses the competition. Once the sales level off the competition gets even tougher and Drive will enter the market maturity stage in the product life cycle. New competition may enter into the picture which increases the pressure to maintain sales. Effective promotion is imperative at this point and this results in an increased cost of promotional activities. Considering Drive will be the original product specific for sports energy and is produced by the Gatorade Company this particular stage should be the longest one for the product. The effective products that are produced by Gatorade will assist in ensuring consumers that, despite competitive promises, Drive is indeed the best available. The final stage of the product life cycle is sales decline and this is the phase when new products replace those that already exist.