The company “Dr. Vending”

The startup “”Dr. Vending“” will focus on bridging the vending machine gap in the lifestyle market and offering snacks and beverages in remote geographical places. According to Barry and William (2016), beverages and fast snacks will help to ease the stress of busy businesspeople near airports. Furthermore, these vending machines will be useful during trips or business visits where retail malls are not available due to geographical constraints (Barry & William, 2016). Dr. Vending Its business competitors include restaurants, hotels, and other key players in the hospitality sector: these firms include restaurants, hotels, and other key players in the hospitality sector. Additionally, the concept of starting the company Dr.Vending began in 2017. This firm I hope to register it as a limited liability firm. The company is currently in its initial phase of business operations. Earlier, the firm will sell products such as appetizers, beverages, alcohol, cigarettes. Moreover, the vending machines will be strategically positioned on the busy outskirts of shopping malls, supermarkets, filling stations, bus stations, and airports.

Background

Arguably, there are several reasons that led me to infer the business concept of forming a vending machine company. For instance, it is easy to operate a vending machine company since it necessitates only a discipline of self-drive and motivation. My duty as the company owner would regularly collect the coins from the vending machines and replenish the stocks regularly back to the vending machines. Another reason for rethinking the concept of this company idea is that it would be possible for me as a company executive officer to inquire among the clients on the most demanding products and those that they would prefer to get on the vending machines. Additionally, it would be effortless for Dr.Vending Company to realize the return on investment in a short payback period.

The push factor of business opportunity for vending machines allowed me to rethink on the company business concept of Dr.Vending. The latter will create great opportunities for the business owners due to their flexibility to enable variation of products and make it imaginable to interchange products in regards to the geographical location of the machine and the target group in the area. In addition, the vending machine business is altering abruptly with greatly advanced technology raking in millions of dollars for vending distributors domestically. Healthy vending is the predominant phrase these ears supplying the health cognizant with convenient food and drink products. Hansen (2017) contends that the vending industry is a multi-billion dollar market with fresh and fascinating vending machines revolutionizing the landscape (Hansen, 2017).

Objectives

One of the most crucial aims and objectives for Dr.Vending is to drive business and augmenting sales volumes. The firm seeks to increase sales of vending machines by 25% in its first year of business operation. On the other hand, the firm strives to nurture its brand so as to grab a lion share of the vending machine’s market. In fact, it strives to be recognized as a top three list of after-sought brands by consumers. The company seeks to augment brand awareness by 15% in the initial one year via building relationships with the elderly, young men and females. Attaining brand awareness and brand trust is an investment. I understand that it would demand a lot of time and resources to nurture ourselves as a brand that individuals recognize for a particular expertise. Nonetheless, by constantly exposing our firm into the marketplace and being in the venues that we are aware that our clients are positioned. This will allow us to demonstrate our authority on the vending machines business and earn the brand trusts that will crown ours a successful one.

The firm will strive to position itself to target its main clients who are typically the ambitious youth, elderly and the females who love a life with a unique coziness. In my opinion, the introduction of the concept of a vending machine will signify that these client segments will receive the business concept with a lot of appreciation. Youths who are single or presently dating are more likely to have a greater probability of being probable clients since my product would target both the married and single young men for an extensive market of my product.

Dr. Vending focuses on obtaining 20% market share within the initial semester via our close partnerships with the relevant marketing agents in the market. Although, we understand that the endeavor would be a tough one in its initial stages. Nonetheless, Dr. Vending strives to build its customer service since it will play a critical role in the firm’s success. Nevertheless, it will build our reputation in a positive way since it will improve the brand awareness. Since return on investment is paramount for continued success, it may be practical to invest in service training for your workers who will be openly interrelating with clients.

Deliverables

We anticipate receiving an entire report of the research in hard as well as soft copies which have to be submitted to me personally. Nonetheless, I also necessitate the research agency to forward a PowerPoint presentation and present it to me after the final report is submitted.

Target

Demographic characteristic is arguably one of the effortless and non-sophisticated ways of describing a client segment. Based on my primary research, the classic audience for my product would be both the ambitious youth and the relaxed elderly- males, as well as the females, would all sum up the probable clients for my product since they are all probable to praise the concept of a vending machine i.e. Dr. Vending. Additionally, youth who are single or in the process of dating would be more probable to have a higher prospect of being prospective clients, my product would target both the single and married young individuals for a vast market of my vending machine product. From my research, I evaluated the university students in part-time careers and permanently employed humans as the key client’s segments. This is because Dr. Vending is affordable and that any student with a part time job can feel it is pocket-friendly. Nonetheless, Dr. Vending is easy to manage even with a busy schedule and can operate in the non-existence of the company entrepreneur for a lengthy period of time.

As explicated, my main target audience would be individuals living in America as a result of America being my native country and I would be more probable than not would nurture the business concept of Dr.Vending around my native nation and later expand it to other parts of the world via specified advertising. Furthermore, I would cater to all the diverse religions in the respective geographical regions so as to increase the market share. Nevertheless, the ethnicity of my primary target would be all races and nationalities, but I would focus greatly on Caucasians because they make up the highest population in the US. African Americans and other ethnic groups would form the secondary target audience. But without reservation, Dr. Vending would target every individual as a potential customer.

Marketing Strategy

I would utilize an integration of pricing strategies on launching the vending machines to enable the product gain fame in the market. In addition, the strategies would compose of pricing to penetrate the market, psychological pricing, and bundled pricing. Although pricing to enter the market may at first fail to give the anticipated dividends, I would still categorize it as a marketing strategy. This strategy will stir interest among the prospective clients to the vending machine’s product whereas shifting their interest from my business competitors. Psychological pricing sheds light on the form of pricing strategy I would include while penetrating my product into the fiercely competitive market. This is because psychological pricing enables clients to utilize emotions in buying at the expense of logic. For instance, in this case, I would set my prices as $99 instead of $100. In addition, I would also include bundle pricing in my sales pricing techniques. This is to motivate consumers to buy the vending machine’s product in economies of scale at the expense of smaller units.

For distribution, I would emphasize on indirect distribution where the selling process will involve middlemen. This will allow me to garner a wider market for my products, lessen the pressure of administering the distribution system on my side and decrease the expense and space of warehousing. In addition, I would then apply an integration of limited distribution and selective distribution. Arguably, McDONALD & Brown (2016) says that exclusive distribution will entail limitation of the product to a single premise in the urban area to distribute the vending machines into other urban areas. As illuminated, the strategy is effective to the vending machine as it is bulky and to the reader, since it is suitable (McDONALD & Brown, 2016)

In promotion, I would apply some of the general marketing strategies that I have seen effective for others during my marketing research. For example, I would begin declaring the news in regards to Dr.Vending long before it was founded. Second, I would utilize advertising channels. Firstly, I would start spreading the news about Dr. vending long before it is officially launched. Secondly, I would utilize advertising channels that include but not limited to magazines, social media, newspapers, posters and local mini-mags for advertising. Thirdly, I will utilize ear-dropping slogans in an attempt to stir the interest of prospective clients. Lastly, I will utilize comical ads with some sense of humor that target the family members with the goal of grabbing attention to the product and building a positive approach towards the vending machine’s product. Nonetheless, I will also utilize some of the famous personnel in the society and celebrities. Nevertheless, the strategy is suitable for the audience as it entails a variety of fascinating techniques and therefore easy to stir interest.

Test Research

Test market research will assist in the launch of the vending machines and in decreasing the competition. According to Baker (2014), reliant on the success of the competition, it would be relevant to identify which factors made their vending machines successful and which demoralized the potential of the product as well (Baker, 2014). As expounded, it would be crucial to pay attention to the voice of the prospective customers. My plan for Dr.Vending is to guarantee the best I can afford of launching a healthy demand for health vending machines. Furthermore, I would be aggressive in conducting blogger interviews, pre-product usage and journalists to note client’s comments and testimonials would create an impressive buzz during my product pre-release. If possible, I would appreciate the review of Dr.Vending by movers and shakers such as Industry experts and public icons from celebrities to parents. In addition, I would also appreciate the presence of public officials within the area of my target area.

Limitations and Conclusions

As illuminated above, some of the internal organizational structure that might influence the target segment include but not limited to financial structure, reliable supply chain and suitable communication. On the contrary, the external factors entail competition, economic, social and cultural factors. The marketing proposal does not allow one to quantify effectiveness and this positions it as a limitation in my endeavor to achieve the success of the company. Moreover, one can carry on an ineffective marketing strategy forever if you don’t possess some way to measure how it operates. On the contrary, each marketing research proposal has costs that one must assess based on how effective you spend your money. Moreover, one should consistently weigh costs vs advantages for any marketing research brief since you should spend your dollars wisely. Implementation of a marketing research proposal can enhance business profitability due to implications for the entire aspects of the firm’s operations. Nevertheless, the marketing research brief emphasizes on certain marketing segments and makes it precise on product characteristics that are essential. Strong ethical policies that go past safeguarding the law can add great value to a brand while a failure to do the right thing can trigger social, economic and environmental harm, declining a company’s long‑term projections in the process.

References

Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.

Barry B. & William Z. (2016). Essentials of Marketing Research Cengage Sixth Edition.

Hansen, D. D. J. (2017). MARKETING CONCEPTS.

McDONALD, M. A. L. C. O. L. M., & Brown, L. (2016). 5 Strategic marketing planning. The marketing book, 86.