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Concept and key aspects of EnergetiQ marketing plan

The EnergetiQ brand was founded in 2020 by a team of health conscious individuals seeking to provide a localized solution to the health vitamin deficiency crisis facing most Qatari citizens. The product is packaged in a simplistic light-coloured bottle that envisions its quest of providing essential vitamins and nutrients vital for the human body. EnergetiQ is extracted from locally sourced, natural, sustainable, and organic fruits with the intention of providing raw nutrients devoid of additives and sugars. Its key nutrients include vitamins A, B, B12, C, D, Magnesium, Calcium, Zinc, and Iron. A market research identified that Qatari citizens do not ingest the needed amounts of vitamins, especially D, B12, and C. As a result, providing them with a liquefied option will enhance the efficacy of absorption of the nutrients as opposed to pills which take longer and are tiresome to consume. In addition, the research showed that Corona virus pandemic has made more people health conscious. The demand for vitamins, which are associated with boosting of immunity has therefore increased. To target the right customer segments, the market was divided based on demographic, behaviour, geographic and psychographic requirements of the customers. The key customers for EnergetiQ include adults and athletes with active lifestyles, and a health conscious attitude. Most of these customers are regular consumers of supplements. Most of the customers reside in Doha. An analysis of the environment using PESTLE, Porter’s five forces, and the data extracted from the market research informed the design of the marketing mix for EnergetiQ. Guided by this backdrop, this report analyses the marketing plan for EnergetiQ.

• Source of business idea and extent to which it is underpinned by key factors, trends, and issues in the external marketing environment

The business arose from a deep desire to provide a healthy drink that would not only help the customers meet their nutritional requirements but also quench their thirsts. The business owners found it prudent to start a home-grown solution and brand that would be adapted to suit the specific health needs of the Qatari citizens residing in Doha. Other factors that were considered when coming up with the business idea are tied to dynamics in the external marketing environment. These factors are explored using theoretical models namely; PESTLE, Porter’s 5-forces, and self-referencing.

• Pestle Analysis as Source of Business Idea

An analysis of the macro environment contributed towards coming up with the business idea for EnergetiQ. Considering political factors, the Ministry of Public Health (MOPH) and external partners such as Food and Agriculture Organization (FAO) have overemphasized the need for healthy eating. The Qatar Dietary Guidelines (QDGs) emphasize the importance of sodium, proteins, fats, and vitamins as part of healthy living (Al Thani et al. 2018). In fact the ministry has been conducting public health drives to create awareness on healthy lifestyles and eating habits.  The emphasis on healthy lifestyles has further been emphasized as a strategy for boosting immunity against the Corona public health pandemic. Another factors in the macro environment that influenced the ideation for EnergetiQ is social factors where consumers are increasingly health conscious. Instead of consuming soft drinks, they prefer healthier alternatives such as natural vitamin juices. Technological factors further backed the ideation process. The founders believe that it is cost effective to integrate technologies such as automated production lines and supply chain management systems. In addition, they can rely on technological systems to analyse competitor and customer data. Likewise, social media platforms provide a cost-effective approach to reaching more customers. From an environmental view point, the idea for EnergetiQ was to substitute the constant lack of fresh water with a vitamin drink (Gichuki, 2017). From a legal viewpoint, it was important to come up with a brand that was unique and differentiated to avoid copyright claims.

• Five Forces Analysis as Source of Business Idea

Porter’s five forces model also influenced the ideation for EnergetiQ. Even though the industry has intensive rivalry, the business owners found it prudent to produce a localized brand that ‘speaks the Qatari’ language as opposed to the foreign brands that dominate the market. The high threat of substitute was a factor to consider given that home-made vitamins are an alternative source of nutrients. Low buyer power is an added advantage as EnergetiQ has total control over price setting. Low supplier power also means higher profit margins. However, the high threat of new entrants threats the long-term sustainability of the brand (Bruijl, 2018). From this analysis, the threat of substitutes encase the biggest risks for EnergetiQ.

• Extent of Personal Belief/ Intuition vs. Systematic Analysis

As evident with the Porter’s and PESTLE analysis, the business idea was more informed by a systematic analysis of the external marketing environment than by intuition or personal beliefs. The decision to focus more on systematic analysis than intuition was informed by Jarvis (2016) who notes that conducting detailed market research will enable an entrepreneur identify a viable market gap. When such opportunities are explored, they create profitable ventures. Systematic analysis enabled the business owners to avoid biases that could have resulted into predictable irrationality and distortions in memory as explained using the lay theories. According to Yarar and Orth (2018) lay theories do not need to be true, testable, and objective. They are neither backed by systematic analysis nor scientific evidences.

• Consumer characteristics, wants, needs, and behaviour amongst the chosen target segment

The market for EnergetiQ is divided based on demographic, psychographic, and behavioural attributes of the consumers. Demographically, the product targets adults and mostly athletics. Geographically, the customers are located in Doha, in Qatar. Behavioural attributes considered by the marketers include individuals dependent on dietary supplements for the additional dose of vitamins and other nutrients. Psychographic attributes of the consumers include people who are health conscious.

• Consumer Needs and Behaviour

The consumer needs and behaviour was dictated by the Maslow’s hierarchy of needs theory. According to this theory, consumer needs are varied depending on their social status. The model posited by Abraham Maslow notes that at the bottom of the pyramid, there are physiological needs which include food, water and sleep (Bouzenita & Boulanouar, 2016). Once these needs are satisfied, a person develops a need for safety, security, and protection. The needs then progress to social needs which are characterised by a wanting for acceptance, affection, and friendship. The fourth level is self-esteem needs while at the apex is self-actualization. The need for better health could comfortably fall in either the physiological or safety needs levels. Consumers who consider vitamins a basic need will invest in drinks such as EnergetiQ to help them meet their dietary needs. On the other hand, those who prefer living healthy lifestyles as a means of securing their health will treat the product as a safety need. The inability to classify the product as either physiological or safety need highlights the shortcoming of this model whereby, contrary to Maslow’s hypothesis that the most basic need should be fulfilled before moving to the next level of needs (Bouzenita & Boulanouar, 2016). This hypothesis might be inapplicable in some cases since consumer behaviour could be predicated by a combination of these needs.

• Key Assumptions about consumer characteristics, needs, and behaviour

Some of the assumptions made include the belief that customer’s decision making will follow the cognitive Cartesian perspective predicting consumer decision making process. This model argues that the first process to making decision is recognizing a problem, searching for information from internal and external sources, evaluating the information, and making the choice either informed by hedonism or utilitarianism principles (Benda-Prokeinová et al. 2017). The consumer then makes a purchase followed by a post purchase evaluation or behaviour. As much as it is prudent to assume that decision making progresses through these stages to enhance the accuracy and effectiveness of decision making, Panwar et al. (2019) refer to consumers are irrational decision makers. Therefore, it is important to assume that consumers make irrational decisions because they can hardly implement the rational process since they lack information.

• Evidence to support assumptions

The Mothy hall problem highlights challenges to rational decision making when purchasing new products such as EnergetiQ. For instance, the consumer’s thought process could be clouded by the need for loss aversion, endowment effect, status quo bias, psychological inertia, and lack of consistency in their thought process (Jaeger et al. 2020).

• Reflection

A reflection on this analysis shows that introducing the typology of value sought model could be essential in identifying different or additional consumer needs, characteristics, and behaviours. According to this typology, customers make decisions by weighing perceived costs against perceived benefits. This perception shapes their classification of the product into the five types of value, namely; epistemic, conditional, emotional, social, or functional (Liu, Wang & Zhou, 2019). For the case of EnergetiQ, the target customers values its functionality. They believe consuming the product will lead to a favourable health outcome.

• Brand identity/ positioning and extent to which it is supported by the four elements of the marketing mix
  • Brand identity

The brand identify prism is an important element that informs the intended brand positioning and identity of EnergetiQ. This model by Kapferer identifies six basic elements or components used in creating brand identity; physique, personality, culture, relationship, reflection, and self-image (Ianenko, Stepanov & Mironova, 2020). The first component is physique. The physical characteristics of EnergetiQ include its distinctive light coloured background with a bold inscription of the name EnergetiQ and a simple description of the brand – vitamin drink. Whereas physique is the face of the brand, personality is considered to be the voice. The labelling of the product communicates a personality of a simple yet elegant product packed with natural nutritional content. The culture of the EnergetiQ drink is a reflection of the Qatar’s national culture associated with simple yet luxurious living. Given the essence of vitamins, the brand seeks to maintain a close relationship with the customers to encourage repeat purchases. The EnergetiQ brand seeks to reflect the health consciousness and athleticism of its consumers. The brand further seeks to encourage a positive self-image coupled with a good feeling arising from a sense of renewed health.

The concept of brand personality further reiterates the sentiments espoused in the brand identity prism. For instance, the brand communicates a personality of sincerity because of its originality and simplistic packaging. It creates excitement as it trendy and cool. The product depicts competence in the sophistication of the technologies used in creating the product while its sophistication is deeply hidden in the smooth contours of the bottle.

• Marketing mix and communication on intended brand positioning/ identity

The marketing mix perfectly communicates the key elements enshrined in EnergetiQ’s marketing mix. For instance, the product is a natural extract of vitamins infused with other nutrients to cater for the health needs of the consumers. The brand is designed in different flavours to quench the thirst of its users. The pricing strategy considers costs plus margins while also prioritizing low pricing that encourage market penetration. The placement of the product is in all retail and wholesale outlets ranging from marts, pharmacies, cafeterias, sports clubs, malls, and shops (Hosseini, Mirabi & Jamshidi, 2016). This placement eases access to the product. EnergetiQ is promoted through social media sites, TV advertisements, personal selling, and sponsorships. These elements collectively contribute towards shaping the overall brand personality for EnergetiQ.

• Risks of failure to communicate intended brand position

As much as the penetration pricing of the product will enable it to reach more consumers, the use of TV advertisements, personal selling, and sponsorships increase the operation costs of the product which might reduce the anticipated profit margin (Rajavi, Kushwaha & Steenkamp, 2019). However, a combination of the marketing mix will potentially help EnegetiQ achieve a favourable market position that will translate to more sales, higher rate of market penetration in Doha, higher inventory turnover, and more profit margins.