A New Product Strategy for Mate Drink

Vida Mate a healthy and environmentally friendly drink that energizes its consumers. For instance, students are the primary customers for Vida Mate since they need to not only reenergize themselves but also revitalize their respective communities. Indeed, the product has distinctive features that differentiate it from substitute beverages. Vida Mate is too much concerned about sustainability. In the UK, the drink is perceived to be a ready-to-drink tea. The Vida Mate company wishes to expand its operations by penetrating the Chinese as well as Taiwan markets. Different markets have consumers who show varying consumers behaviors. Indeed, consumers in the New Taiwan market are different purchase behaviors as well as tastes. It is therefore imperative for the company offering Vida Mate to adjust its product strategy to align to the new market environment. For instance, Vida Mate’s marketing mix elements should be changed or modified to meet best and fully satisfy the needs of the new Taiwan market (Baker, 2016 p 71). In Taiwan, numerous firms are producing and offering beverages and soft drinks to the Taiwan market. Indeed, Taiwan’s beverage market is very competitive. A company that offers drinks should effectively use the elements in its marketing mix to create a competitive edge over the dominant players in the beverage industry.

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Product

Vida Mate company will also increase ingredients in its product to improve its function. A study executed by Mintel Group a few months ago shows the majority of consumers are satisfied by-products that have four types of functions (Mintel, 2019 p. 2). Other than energizing and revitalizing the community, the new modified Vida Mate drink should have ingredients that help quench people’s thirsty, help in digestion, satisfy cravings and most importantly pair with other foods. The new Vida Mate drink that has a combination of various distinctive ingredients will align with Taiwan’s consumer preference that will directly translate to increased demands and increased sales of the Vida Mate drink. According to consumer theory, consumers purchase behavior is a product of well-calculated decisions and individuals go for products that bring huge benefits to them (Liberto, 2019 P. 28).

Consumers are also very conscious about their health, and they are willing to acquire high safety products (Mintel 2019, p.1). For instance, consumers in Taiwan market prefer products with zero addictives. Also, such Taiwan consumers welcome ingredients with antioxidants, not forgetting other detoxing properties. The Vida Mate company should remove the low amounts of caffeine in their drink. The company should also add some antioxidants to increase the health benefits of the product and align with the consumer preference in the new Taiwan market. According to the motivation-need theory, individuals act in certain ways to satisfy their needs (OHIO University, n.d para 4). Safety is top in the list that stipulates the hierarchy of needs. A high safety Vida Mate will stimulate consumers intentions to acquire the product.

Vida Mate majorly targets youths, that is, students in the UK market. However, it is crucial for Vida Mate company to target the larger target market in Taiwan to increase its sales volumes. Research shows that youths in Taiwan market prefer sweet drinks. It is also evident that consumers in all age brackets prefer sweet taste except individuals who are between forty and forty-nine years who prefer bitter drinks (Mintel Group 2019). The Vida Company can also add another Vida Mate brand that has some level of bitterness to satisfy the needs of the exceptional group. The Vida Mate company will, therefore, add natural sugars to its brands to increase its consumer preference in the Taiwan market.

Place

To successfully penetrate and sell Vida Mate drinks, the company needs to adopt modern technologies to establish and expand its sales channel. A report from the Mintel Group Ltd (2019) shows that market leaders in the beverage industry are transitioning from using the cold chain to using the vending machine. Vending machines significantly increase customer convenience since they support the cashless payment option. Also, vending machines are a nice fit for the busy customer lifestyles in Taiwan. Extensive use of vending machines will stimulate increased sales volumes of Vida Mate in its new Taiwan market.

Promotion

Marketers for Vida Mate product will heavily rely on the product features and its benefits in their promotional strategies that are targeted to the Taiwan Market. For instance, such product-focused promotions will create positive attitudes as well as the perception of Vida Mate to the consumers in the Taiwan market. Indeed, positive attitudes and perceptions will stimulate increased sales of the Vida Mate, increase repeat purchases among consumers, not forgetting increasing customer referrals (Zeithaml et al. 2015 p 33). The Theory of Reasoned Action proposes that consumer behavior is based on one’s intention to benefit from a particular outcome, that is, benefits derived from consuming a specific product (Dzewaltowski et al. 2011 p 390). Moreover, in the Taiwan Market, consumers enjoy freshness by seeing (Mintel, 2019). Freshness is one of the critical factors that influence individuals to go for a certain product. Vida Mate will, therefore, depict freshness by developing very attractive new packages for their product.

Price

The price of various beverage products has been on the rise in the Taiwan market. Despite the higher prices, the Vida Mate company will adopt the commonly referred to as penetration pricing in the Taiwan Market. Indeed, Vida Mate will be a lower price in Taiwan market when compared to the UK market. As a matter of fact, consumers are always willing to acquire products at the lowest price possible. The low price will not only increase awareness among the Taiwan market but also increase its demand (Ferrell, & Hartline 2012 p. 57).

In conclusion, Vida Mate a healthy and environmentally friendly drink that energizes its consumers. To successfully penetrate the Taiwan market, it should adjust its product strategy to align with the new market environment. Vida Mate company will also increase ingredients in its product to increase its function. The company should also add some antioxidants to enhance the health benefits of the product and align with the consumer preference in the new Taiwan market. Also, Vida Mate will add natural sugars to its brands to increase its sweetness and increase consumer preference in the Taiwan market. Vida Mate will, therefore, depict freshness by developing very attractive new packages for their product.

 

References

Baker, M. J. (2016). The marketing mix. London, Henry Stewart Talks. https://hstalks.com/bm/2183/

Dzewaltowski, D.A., Noble, J.M. and Shaw, J.M., 2011. Physical activity participation: Social cognitive theory versus the theories of reasoned action and planned behaviour. Journal of Sport and Exercise Psychology12(4), pp.388-405.

Ferrell, O. C., & Hartline, M. D. (2012). Marketing strategy. Mason, Thomson South-Western.

Hennessy, M. (2012). Advancing reasoned action theory. Los Angeles, SAGE.

Liberto, D., 2019. Consumer Theory.

Mintel Group, 2019. China (incl. Taiwan): Freshness Could be Enjoyed Through Eyes.

Mintel Group, 2019. Age Determines Preferable Taste Towards RTD Tea.

Mintel Group, 2019. Ready-To-Drink Tea-China-May, 2019.

Mintel, 2019. High Safety Standards and Health Benefits Signal Premium Expectation.

Mintel, 2019. Immediacy Tops all Reasons for Consumption.

OHIO University, n.d. Four Consumer Behavior Theories Every Marketer Should Know. Retrieved from https://onlinemasters.ohio.edu/blog/four-consumer-behavior-theories-every-marketer-should-know/

Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (2015). Delivering quality service: balancing customer perceptions and expectations. New York, Free Press.