Marketing Strategy

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Marketing objectives

The mission statement for H2coco is: “achieve a healthy living in Australia through providing the people with awareness on the benefits of H2Coco”. The vision statement is to expand H2Coco in Australia and New Zealand as a world-class brand and product (H2Coco, 2016). The brand overall objective is to come up with a wide range of healthy coconut water products.


  • Create awareness in Australia and New Zealand on the benefits attained through the use of coconut water by the end of 2016.

  • Create brand awareness on the 90% of the target market by December 2016.

  • Increase the brand market share by 50% within the first six months.

  • Attain sales of more than 12,000,000 units by the end of 2016.

  • To target the Australian hospitality market and other potential high users of coconut water.

Marketing mix strategy

Product strategy

Product differentiation

H2Coco is different from the competitors’ offers being the first healthy coconut water in the Australian market. The product is a new beverage category in the Australian market. The differentiation used for H2Coco makes the customers perceive the significance difference compared to the competitors’ products.


The positioning used by the brand is based on its attributes and benefits. Positioning by use is attained through the use of advertisement and the social media. This specifies the ease of purchasing the product in the grocery markets. In this case, the type of store and display used in selling the products plays a very vital role (Henard & Szymanski, 2001). This refers to how the product is perceived by the customers in their mind. The product will be positioned as a premium, healthy and unique drink in the Australia market. H2Coco is premium nutritional coconut water which is the first in the Australian market.


Branding involves the entire experience the prospective customers have with the product (Pride, 2008). H2Coco is a nutritious coconut water drink. The healthy benefit that defines H2Coco makes it unique in the market. It is the first coconut water in the Australian market with healthy benefits. H2Coco brand continues to grow in Australia and New Zealand through awareness and sales.

Product life cycles implications

H2Coco market is on the growth stage of the product life cycle. This implies that the company is searching for new marketing opportunities with an aim of increasing the market share. At this stage, there is rapid market acceptance for the product and sales and profits are high. The stage faces a potential threat of copycats entering the market (Pride, 2008).

Pricing strategy

Pricing objectives

The pricing strategy used is based on the objective. The main objective for H2Coco is to position them as a premium product. This is because the new product is healthy and in a new range. The price set is supposed to increase the cash flow. The firm also wants to maximise their profits. This makes it important to set the price which is capable of maximising their current profits. This involves making an estimate on the demand, alternative prices and the price that will give maximum returns. It will also involve determining the cash flow and return on the investment. This objective will face some difficulties in making the estimates. The second pricing objective is to gain long-term prosperity which will enable the business to survive in the market competition (Pride, 2008).

Pricing methods and specific pricing tactics

The pricing methods and tactics used in the; differential pricing, competitive pricing, product line pricing and psychological pricing. This can also be categorised into the pricing strategies; cost based pricing, value-based pricing, demand based pricing and competition based pricing (Cravens & Piercy, 2006). H2Coco uses prestige pricing/value based pricing. The brand has four types of coconut water; the pure, pineapple, Acai and Pomegranate. All brands are priced at RRP $2.95 in a 330ml bottle. The organic flavour has a higher price of $3.20 for 330 Ml. H2Coco carton has a retail price of $35.40. The pricing method used is meant to reflect the high quality of the brand. The product will be using discounts to sustain sales.

Competition considerations/competitors’ pricing

Australian coconut water market is monopolistic. This is due to the different brands which offer the same product. The level of market composition in Australia makes it vital for the brands to looks for ways to differentiate their products. The competition in such a market is supposed to be non-price but based on differentiation (Cravens & Piercy, 2006). Through product differentiation, it is possible for H2Coco to maintain premium pricing for their product. The main competitors in the Australian market are; Vita Coco, Kokomo and Coconut Essence.

Promotion strategy

Promotion objectives

H2Coco has several promotion objectives.

  • To increase market awareness for the coconut water and attain a target market of 90% by the end of 2016.

  • To create and promote a string brand image among the target market.

  • To increase the preference for the H2Coco in the market by 40%.

  • Create positive publicity for the brand among the Australian public.

Promotion mix

Media are used

H2Coco will use a marketing mix made of public relations, advertising and sales promotions. This is a marketing mix that will make it possible to emphasize the importance of coconut water drink. The marketing mix will be able to deliver the message that the drink is healthy and vital for those who have active lifestyles (Belch & Belch, 2012).


Use of national radio stations will help a lot in advertising. This is because radio captures major areas in Australia metropolitan. Radio is a useful mean of targeting people in geographical aspects in a cost effective manner (Henard & Szymanski, 2001).

Social media

Social media is a powerful promotional tool. This is because it makes it possible for the consumers to engage with the brand. This includes the use of social media tools such as Facebook, Twitter, and YouTube. Through sharing the digital content, it is possible to create viral marketing.

Print media

This will involve the use of newspapers and magazines. Advertising through the print media has its competitive advantages. Newspapers are a popular advertising channel that can reach a wide target market. This is because every community has its newspaper and the ads are cheap. Magazines target specific audiences. The use of health magazines will be able to reach the specific target required. They also have loyal readers and credibility (Cravens & Piercy, 2006).

Public relations

H2Coco will highly rely on celebrities’ endorsement. This will involve using the celebrities to promote the products using the public relations tactics. It will also use of interviews in major newspapers such as Sydney Morning Herald. The consumers will be involved in public relations events. This is aimed at gaining newsworthy publicity which will gain relevant media attention (Cravens & Piercy, 2006). Most of the public relations will involve the use of brand ambassadors.

Sales promotions

This is aimed at enticing the customers to buy the company products (Belch & Belch, 2012). The company will be using free trials, gifts, offers and sampling. Free samples will be used when introducing new products to the market. Sampling will be part of a large marketing campaign by H2Coco. The free trial will help the customers try the new product while eliminating the risks. Shoppers in the distribution locations will be offered free samples during the launch.


Location strategy

H2Coco will be located in selected stores. This is based on a selective distribution strategy where only prior chosen locations will be used (Cravens & Piercy, 2006). The chosen locations are based on areas where the target market is located. The product will also be based on niche locations such as the small independent vendors, gyms and selected groceries.

Retailing positioning strategy

The retailing strategy used will focus whole sellers and distributors who will sell to the retailers at a profit. The retailers will then sell the product to the end user at a profit. The distribution channels used are Coles, Woolworths, and major groceries that put the product within the customer reach.


2016 (cost)

Magazine ads

Newspapers ads


Radio ads




Public relations


Social media (maintenance)


In order to determine the success of the marketing campaign, there are several metrics that will be used. The consumer feedback will be used to determine whether the marketing plan has succeeded. The financial accountability will be used to determine the success of the marketing plan. This is through determining the return on investment based on marketing expenditure. There will also be measure of the customer equity and satisfaction. The increase in brand equity based on marketing will also be determined based on post and after the marketing period. Monitoring will be carried out through the marketing period to ensure that the marketing activities are optimised (Cohen, 2005).

Conclusion and Recommendation

To sum up, this report has analysed the marketing plan proposed for H2Coco. The report has outlined the target market and set the price to be premium. The premium price is meant to reflect the high quality of the H2Coco coconut water. The sales objective for the firm is to make sales of over 12, 000 units in 2016. The proposed promotion activities include use of TV and radio advertising, social media, public relations and sales promotions. The marketing plan will enhance awareness of H2Coco in the target market. It is highly recommendable that the management should adopt the marketing plan as proposed. This is due to fact that it will help in expanding the current H2Coco market and also position the product as premium. The marketing plan is also very viable based on the current market environment.


Belch, G. & Belch, M. (2012), Advertising and promotion: an integrated marketing communications perspective. 9th edition. McGraw-Hill/Irwin: New York

Cohen, W.A., 2005. The marketing plan. John Wiley & Sons.

Cravens, D. W., & Piercy, N. (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill.

Henard, D. H., & Szymanski, D. M. (2001). Why some new products are more successful than others. Journal of marketing Research, 38(3), 362-375.

Pride, W. (2008). Marketing. Cengage Learning.

H2Coco, (2016). Products, Retrieved 19th April 2016 from,