Motown Soda (MS) is expanding into the Southwestern Ontario marketplace. Its a small-batch, artisanal premium soda that
Question:
Motown Soda (MS) is expanding into the Southwestern Ontario marketplace. It’s a small-batch, artisanal premium soda that sells for $4.00 CAN. The soft drink marketplace MS operates within is in flux. Though still dominated by very big brands and still a lucrative opportunity, overall soda consumption in North America is in decline and a lot of consumers are now looking for alternatives. In part this shift is being driven by consumers, particularly millennials, becoming more health conscious and more willing to try new, healthier alternatives to traditional soft drinks (eg. plant-based waters, kombucha). Another trend within this marketplace is premiumization, offering a higher quality product to a consumer who craves that better and more unique experience and is willing to pay that higher price for it. This consumer grinds their own premium coffee beans in the morning, has a chive and chevre frittata for lunch, shops at the local boutique grocer, and is keen for gourmet soda. MS is targeting this consumer with their premium small-batch soda. Based on the above information, your own insights and application of the course material, please answer:
a. Which of the four targeting approaches we’ve discussed is most appropriate for Motown Soda in this situation? Please briefly explain your reasoning. What are the implications there for any promotional activity?
b. Describe an appropriate promotional mix that Motown Soda can use to carry out a pull strategy. Your promotional mix should include at least three of the six promotional tools we’ve discussed. Your discussion should be specific in terms of how each tool will be applied, who its audience will be, and why it is appropriate for the task at hand.
c. Describe an appropriate push strategy. You likely will use two of the six tools we’ve discussed. Your discussion should be specific in terms of how each tool will be applied, who its audience will be, and why it is appropriate for the task at hand.