Product
Club-Mate is a caffeinated carbonated mate-extract beverage made by the Loscher Brewery (Brauerei Loscher) near Münchsteinach, Germany, which originated in 1924. Club-Mate made from premium-class mate tea and has a relatively high caffeine content (20 mg per 100 ml),
low sugar content (50 g/kg), and low calories (20 per 100 ml of beverage) compared to other beverages such as Coca-Cola and other energy drinks. It’s key ingredients is water, sugar syrup, sugar, mate tea extract, citric acid, caffeine, natural flavors, caramel color and carbonic acid. It is available in 0.33 and 0.5 liter glass bottles.
Club-Mate is a caffeinated carbonated mate-extract beverage made by the Loscher Brewery (Brauerei Loscher) near Münchsteinach, Germany, which originated in 1924. Club-Mate made from premium-class mate tea and has a relatively high caffeine content (20 mg per 100 ml),
low sugar content (50 g/kg), and low calories (20 per 100 ml of beverage) compared to other beverages such as Coca-Cola and other energy drinks. It’s key ingredients is water, sugar syrup, sugar, mate tea extract, citric acid, caffeine, natural flavors, caramel color and carbonic acid. It is available in 0.33 and 0.5 liter glass bottles.
Price
This product is new and of high quality therefore the strategy of a “price skimming” is the best option. This means an establishment of a relatively high price for a short period of time. The main goal is to “skim” off customers who are willing to pay more to have the product as soon as possible and to build a high-quality image for the product. Also, the costs of introducing the Club-mate beverage to the market via promotion and advertising tends to be very high and the practice of price-skimming allows to return some of the set-up costs. Thus, price in stores will depends from the size of the bottle and will cost 55 rubles for 0.33l bottle or 80 rubles for 0.50 bottle. Talking about bars, it will cost 100 rubles.
This product is new and of high quality therefore the strategy of a “price skimming” is the best option. This means an establishment of a relatively high price for a short period of time. The main goal is to “skim” off customers who are willing to pay more to have the product as soon as possible and to build a high-quality image for the product. Also, the costs of introducing the Club-mate beverage to the market via promotion and advertising tends to be very high and the practice of price-skimming allows to return some of the set-up costs. Thus, price in stores will depends from the size of the bottle and will cost 55 rubles for 0.33l bottle or 80 rubles for 0.50 bottle. Talking about bars, it will cost 100 rubles.
Place
Distribution channels for the Club-Mate drink are quite wide and varied so the only logical decision is to use “extensive distribution strategy”. This method helps to eliminate extra effort on the consumer's part to purchase and reach as many potential customers as possible. We will sell our product in middle - and high - price stores like Stockman, Land, O’key, Lenta, Perekrestok, etc. Talking about placing of our product, it will be placed on the eye-level shelves at and in special branded refrigerators next to the cash register. We will also sell Club-mate in bars, clubs and open spaces which are oriented on our target audience and popular among young, for in- stance, Mishka, Geo-café, Barakobamabar, Case Club, Jesus Club, Etazhi and New Holland. However, we should take into account the specifics of each particular place. Thus, in many places it is prohibited to drink alcohol, which can also benefit us. For example, New Holland — it is an area, which is open at the daytime and only in the spring and summer. So at this point the main advantage of the drink is that it is soft, alcohol-free and perfectly quenches thirst due to its main ingredient – mate tea. Speaking specifically about the clubs we should position the drink as a good alternative for those who do not want to drink and in parallel with it sell it in combination with alcoholic cocktails.
Distribution channels for the Club-Mate drink are quite wide and varied so the only logical decision is to use “extensive distribution strategy”. This method helps to eliminate extra effort on the consumer's part to purchase and reach as many potential customers as possible. We will sell our product in middle - and high - price stores like Stockman, Land, O’key, Lenta, Perekrestok, etc. Talking about placing of our product, it will be placed on the eye-level shelves at and in special branded refrigerators next to the cash register. We will also sell Club-mate in bars, clubs and open spaces which are oriented on our target audience and popular among young, for in- stance, Mishka, Geo-café, Barakobamabar, Case Club, Jesus Club, Etazhi and New Holland. However, we should take into account the specifics of each particular place. Thus, in many places it is prohibited to drink alcohol, which can also benefit us. For example, New Holland — it is an area, which is open at the daytime and only in the spring and summer. So at this point the main advantage of the drink is that it is soft, alcohol-free and perfectly quenches thirst due to its main ingredient – mate tea. Speaking specifically about the clubs we should position the drink as a good alternative for those who do not want to drink and in parallel with it sell it in combination with alcoholic cocktails.
Promotion
A “push promotional strategy” will help to create consumer demand for a product. Fridges in the supermarkets, bars and malls, active advertising, sponsorship of many events such as sport games and festivals will make up the greater proportion of options to buy and help to custom- ers to identify Club-mate in retailing stores.
As Club – Mate drink is at introduction stage, customers are not yet aware of it and the product sales during this stage may be quite low. So the problem arising at this stage is the problem of absence of awareness. However, we interviewed almost 100 people and convinced that more than 70 percent of interviewees are informed what mate means. Besides, voices were divided practically equally between men and women of one age which is allows to uniform the market- ing campaign. (see “Chart 1”). Advertising and all marketing campaigns during this period have to have informative character and the marketing mix for this stage of the product life cycle should bring awareness of the product to potential customers through marketing campaigns and special promotional activities.
A “push promotional strategy” will help to create consumer demand for a product. Fridges in the supermarkets, bars and malls, active advertising, sponsorship of many events such as sport games and festivals will make up the greater proportion of options to buy and help to custom- ers to identify Club-mate in retailing stores.
As Club – Mate drink is at introduction stage, customers are not yet aware of it and the product sales during this stage may be quite low. So the problem arising at this stage is the problem of absence of awareness. However, we interviewed almost 100 people and convinced that more than 70 percent of interviewees are informed what mate means. Besides, voices were divided practically equally between men and women of one age which is allows to uniform the market- ing campaign. (see “Chart 1”). Advertising and all marketing campaigns during this period have to have informative character and the marketing mix for this stage of the product life cycle should bring awareness of the product to potential customers through marketing campaigns and special promotional activities.
Chart 1. “Are you familiar with Mate drink? Yes. No.”
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