Expanding Wild Willie Juiced Drinks - Sample Essay
To effectively grow their business, Wild Willie Juiced Drinks will need to complete a series of sequential steps that are designed to help them develop a proper business growth strategy. The following steps will assist them in preparing a sales strategy: 1. Define goals and objectives 2. Set policies 3. Establish procedures 4. Devise strategies 5. Direct tactics 6. Develop and enforce controls This company can set a goal to expand into a Southern and Western state that provides more year-round consistent volume and growth for the brand there. An objective that can be chosen is to expand to a test market, like Arizona, to be able to hit sales volumes in a specific time frame.
There could be a policy for new customers regarding trade-ins, and credit terms when purchasing our product. A procedure when handling refunds or defective product with a clear-cut set of steps to ensure the refund is handled correctly. An example of devising one of this company’s strategies would be to make decisions to concentrate on smaller cities to compete against other manufacturers who are concentrated in larger cities, like Red bull. In this way, our Wild Willie Juiced Drinks can compete in a head to head competition with these firms.
An example of a direct tactic is a special sales presentation formats designed to approach our target market and communicate more effective within this new market. To effectively develop and enforce controls, managers have to develop performance standards, which they compare to actual performance to predetermined standards. If there are gaps between actual and planned results, sales manager has two options 1. Increase sale efforts to accomplish the plan or 2. Revise the sales plan to conform to a new “reality” in the marketplace.
2. Developing the Sales Plan Analyze the Situation Wild Willies Juiced Drinks should analyze their current situation by looking at the current characteristics and trends of the market, benchmarking the competition to see what their strengths and weaknesses are, analyzing current and historical financial data, understanding the company’s benefits to the customers, analyzing the company’s current marketing mix, and looking at the current channels of distribution. Looking at each of these areas will give Wild Willie Juiced Drinks a proper understanding of where the company currently stands and their position in the marketplace.
Set Sales Goals and Objectives After they understand themselves, they will need to set goals and objectives for the company’s growth. The goals that they set should be high-level, long-term goals for where they would like to be in approximately two to five years. The objectives that they set will have a shorter time frame and may include specific, quantifiable objectives that will help accomplish the longer-term goals.
Determine the Market Potential Once the two entrepreneurs at Wild Willie Juiced Drinks have set appropriate goals and objectives for their company, they will need to turn their focus to the market. Wild Willie Juiced Drinks will need to look at the market potential and find the maximum possible sales that the industry is estimated to sale. After that, they will need to look at their internal sales potential for the maximum possible sales for their own company. This data will help them understand how much of a market share they are able to serve and forecast sales according to the gathered data.
Choose and develop a Sales Strategy Developing a sales strategy is important because it will help Wild Willie Juiced Drinks achieve their overall objectives and develop plan of actions. Since they are trying to sell an already existing product in new markets, it is recommended that Wild Willie Juiced Drinks implement a market development strategy. This will allow them to continue bringing in consistent revenue by selling in their current markets, but also allow them to reach new territories to generate new revenues.
Allocate Resources and Develop Budgets Due to the limited resources and infrastructure of Wild Willie Juiced Drinks, it becomes extremely important that they identify all of their resources and allocate them properly. Their resources include money, people, materials, equipment, and time. As the resources are identified, they will want to establish sales budgets that will help them meet their goals for projected revenue.
Implement the Plan After planning out what actions to take, Wild Willie Juiced Drinks will need to implement the plan and follow through with the plans. The upper management of the company can help the rest of the company work more effectively to reach the sales goals by setting objectives (MBO) along with each of the departments so that they are more vested to the plan. Evaluate and Control At regular intervals, the Wild Willie management team will need to analyze and evaluate the performance of the company.
This can be done by collecting quantifiable performance data and comparing it to different sets of data, such as industry averages, past performance, of managerial expectations. It is left to the management to determine if the performance data is satisfactory or if it needs improvement. If improvement needs to be made, then there should be a quick corrective action aimed to improve the performance.
Distribution, Salespeople, Truck Drivers, Organization If Wild Willie Juiced Drinks can find the capital to expand their business they should develop westward into the United States. Wild Willie Juiced Drinks has seen a lot of success in their tenure in New England. But as soon as the temperature drops, they experience a double-digit decline in sales as consumers change toward warmer beverages as earlier stated. To offset the fluctuation in sales, Wild Willie Juiced Drinks should explore states such as Texas, Arizona and California where temperatures usually stay at a constant. Not only are these states considered the warmest in the U.S., they are also the most densely populated. This will provide the company with more consistent year round sales that they lack in their inventive country New England.
The target markets for Wild Willie Juiced Drinks are young people, students and people “on the go,” so the age the company should aim toward is 16 – 35 year olds. To effectively penetrate these segments they should start promoting at high schools and college’s in highly populated cities. The company should begin with hiring a team of five sales associates at each school to promote their drink.
Three employees would be sales promoters and two would be truck drivers, which would provide transportation for the sales associates. This is for each school they begin their business at in the three states previously named. One of the associate’s duties would be to keep track of the company’s finances, another would be to find out all the social events within the given region and the third employee would be to formulate advertising schemes, such as making flyers and t-shirts for Wild Willie Juiced Drinks.
Cal States and UC schools would be a great place to start in California because the students who go there fit the persona of the consumers they want to retail their products to. Setting up tables where they would do blind taste testing with a more popular brand such as Red Bull, would open consumers eyes to Wild Willie Juiced Drinks because most consumers prefer their energy drink over their leading competitors. Also, giving away free beverages to people interested would be a great advertising investment, turning students unknowingly into sales promoters.
Taking into consideration that Wild Willie Juiced Drinks is a relatively new and unknown company, they should first explore small stores to see how well they fair against other better-known energy drink businesses. This is where direct store door delivery comes into play. Once the company gets their name into the industry they can start with going to independently owned convenience stores to sell their products to consumers. After they start becoming a well-known brand within the industry, they should direct store door deliver to more exclusive chain companies so they can reach a wider range of consumers. Of course this is for just initially penetrating new segments, as when they become more established they should be promoting on a much greater scale.
Alternative with DSD without large upfront investment There is an alternative to putting in large upfront investments while still using DSD. Wild Willie Juiced Drinks’ may use independent sales people who sell products that do not compete with each other for companies, these sales people are known as manufactures representatives. The company would first contract local manufacturer’s representatives who would sell the product to their established consumers. By using manufacturer’s representatives who have existing relationships with local retailers, Willie’s will save time and money by not training and establishing its own sales force.
Furthermore, to avoid the fixed costs associated with warehousing and shipping, Willie’s can contract independent distributors to provide “direct store door” delivery. These independent distributors sell and deliver other companies products to retailers. This will allow Willie’s to avoid the initial up front cost until the market share obtained can justify the capital expenditures for local company owned distribution centers, trucks, and a dedicated sales force.