Vitamin Water Marketing Plan: Marketing Paper Sample

Vitamin Water Marketing Plan: Marketing Paper Sample








Vitamin Water Marketing Plan

Size of the Market

The Spanish market has undergone development and is made up of people with a wide range of needs. While this is the case, a large section of people in Madrid still lives in the fear of their wellbeing. The implication of this is that is that the populace in the capital is in need of goods and services, which are inclined towards improving human life. Madrid has a population of more than 6.5 million people and has diverse demographic patterns with different needs. As such, the introduction of Vitamin Water is not only likely to attract millions but also have impact on their lives.

Approximated Industry Sales

            By the fact that the population of a region oftentimes determines consumption and demand, it is doubtless that Vitamin Water will make high sales in meeting the needs of Madrid residents. It has been projected that the industry will realize a total of €2 billion sales in the planning year. This implies that the industry presents a host of opportunities in terms of consumption based on market size. This can be a pillar in realizing high revenues in exploring the entire market.

Estimated Company Sales

With the current conditions, Vitamin Water has the potential of dominating the market. This can however be realized through aggressiveness and the company’s ability to integrate various market entry strategies. It has been projected that the company will register approximately €100 million if its strategies are well implemented. Besides excellent entry strategies, Vitamin Water equally needs feasible marketing and management strategies (Rialp 171).

Marketing Plan

Unlike other products, which target a specific segment of the population, Vitamin Water benefits everyone including the young and the old. As a result, all the residents of Madrid will be potential consumers of the product. While this is the case, marketing of the product is crucial, as it will highly determine the ultimate performance. The company believes that young adults and professionals will play a major role in marketing and have great impact. This assumption is based on the fact that most young adults have the purchasing power and buy essential goods for their households. Besides this, this category of people takes care of the aged in the society, who need support because of their advanced age. Consequently, entry of health products in the market is likely to succeed if the youths accept to buy the idea. To reach this class of the people, advertisements will be made across the city. These adverts will mostly be run in the evening during dinnertime to capture young and working adults. The main medium of advertising will be Television even though newspapers will be used alongside. With the massive usage of the internet, some adverts will also appear online to win the attention of web customers (Kuivalainen 265).

Marketing Objectives

This segment will mainly focus on promotion goals that the company has set. It entails a number of ideas like knowing the target audience and population, understanding sales that are likely to be made during the first of entry into the market, expected profits, and market penetration (Keupp 621).

Target Market

According to the prior survey, which has been conducted, the company will target developed markets due to the existing buying ability as compared to young or undeveloped markets. North America and Europe are known to have urban and developed markets, which present great business opportunities. In particular, Madrid is one of the developed cities in the world and a center of business activities. As a result, the city has a diversified population with varying tastes and preferences. Additionally, Madrid has a stable market because of good exchange rates, absence of inflation, and attractive interest rates. The city’s administration also maintains cordial relationship with the market, thus no unnecessary interruptions. As a result of this organization, Vitamin Water will have an opportunity and favorable environment to thrive in (Aspelund, 1431).

Expected First Year Sales: it has been projected that Vitamin Water will register €100 million sales in the first year of its entry into the market.

Profit Estimation: The Company expects a total of €25 million net profits, i.e. after subtraction of all operational costs. The table below gives a summary of these figures:

Sales €100 M
Expenses € M
Transport 15
Labor 10
Production costs 15
Marketing 10
Taxes 15
Miscellaneous 10
Total Expenses €75M
Profits €25 M

Market Penetration

Economic analysts have a projected that the entire market will realize at least €2 billion in terms of sales. As a result, Vitamin Water is expected to dominate a market share of 5% in the city of Madrid. In deed this is a substantial percentage share based on the fact that the firm is making entry into the market and there are worthy competitors well-established in the market (Czinkota 59).


This product is manufactured in Miami, USA, and it will be ferried to Spain using ships. It is important to note that Miami and Madrid are not linked by sea since the latter is not located at the coast. This means that the products will be transported by sea to the Port of Huelva before being ferried by rail to Madrid. The route is considered to be cost effective since the Port of Miami and Port of Huelva offer the shortest possible distance across the Atlantic (Gabrielsson 396).

Transport Mode Selection

Ocean Carriers

As mentioned above, the products will get to the Port of Huelva by sea. Besides the fact that this mode is cost effective, it also favors the nature of goods that will be on board. Unlike other means of transport, ships have effective cooling mechanisms, which ensure that products remain in good state. Ships also guarantee safety of goods since the crew usually has specialized skills. This will eliminate the worry concerning transportation safety. Due to the fact that ships are sensitive to seasons, the company will be considered for the best scheduling. As such the firm will experience flexibility besides best shipping services. Above all the advantages offered by ship transport, it allows the movement of bulky goods, which cannot be ferried by road or air. This will therefore play a crucial role in ensuring the company controls 5% of the market after entry (Muhlbacher, 131).


Railway transport will be of paramount importance in realizing the company’s goals and objectives. Railroad will be given preference because of the numerous advantages, which it presents. For instance, it is regarded as the economic means, especially when transporting goods for long distances over land. Additionally, railroad offers good storage facilities, because of integrated advanced technologies. Unlike olden days, modern railways offer fast services, which ensure that products are delivered within the shortest distance possible (Keupp 603).

Air Carriers

            While air carriers are relatively expensive, they offer incomparable services in terms of efficacy.  The swift nature of this means transport makes it outstanding. It is highly recommended in cases where the company is transporting perishable products, which have to get to consumers fast or given specialized storage. Due to improved technologies, air carriers guarantee you of the safety of the goods. The presence of refrigerators in air carriers makes it favorable in ferrying Vitamin Water (Kuivalainen 261).

Motor Carriers

            Despite the fact that other swift and modern means of transport will be utilized, motor carriers will not be ignored. Motor carriers will play a major in navigating through the market since some of the sophisticated means do not serve Madrid market. This will allow the products to reach a variety of distribution points across the city (Rialp, 153).


            Vitamin Water will have to abide with packaging regulations in Madrid, based on the fact that the city subscribes to European Unions regulations. Of importance is that the company’s packing has to be harmless to the environment in all ways. Additionally, packaged goods ought to carry sufficient information about the products for the benefit of the consumer. Among other things, the buyer needs nutritional information about the product, in terms of ingredients and value. In addition, packaging should have adequate information about the company, especially its contact details (Cateora 214).


            Based on the nature of the products being transported, Vitamin Water will pay about €46,190 for a single container. Importantly, the company will also incur other expenses like transporting finished products from the plant to the port. Other costs are likely to emanate from the transportation of products to wholesalers and retailers in the city, once they have been delivered at the Port of Huelva. When all these costs are consolidated, it is projected that Vitamin Water will pay approximately €69,280 for the transportation of a single container.



Works Cited

Aspelund, Arild, Tage Koed Madsen, and Oystein Moen. “A review of the foundation, international marketing strategies, and performance of international new ventures.” European Journal of Marketing 41.11/12, 2007. Print.

Cateora, Philip R., et al. International marketing. New York: McGraw-Hill/Irwin, 2005. Print.

Czinkota, Michael R., and Ilkka A. Ronkainen. International marketing. South-Western Pub, 2007. Print.

Gabrielsson, Mika, et al. “Born globals: Propositions to help advance the theory.” International Business Review 17.4, 2008. Print.

Keupp, Marcus Matthias, and Oliver Gassmann. “The past and the future of international entrepreneurship: a review and suggestions for developing the field.” Journal of Management 35.3, 2009. Print.

Kuivalainen, Olli, Sanna Sundqvist, and Per Servais. “Firms’ degree of born-globalness, international entrepreneurial orientation and export performance.”Journal of World Business 42.3, 2007. Print.

Muhlbacher, Hans, Helmuth Leihs, and Lee Dahringer. International marketing: A global perspective. NY: Cengage Learning EMEA, 2006. Print.

Rialp, Alex, et al. “The born-global phenomenon: a comparative case study research.” Journal of International Entrepreneurship 3.2, 2005. Print.

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