Report on Oman Refco Company

 Executive Summary of  Oman Refco Company

Oman Refreshment Company (ORC) are offering high-quality products with attractive packaging designs in the markets of Oman. Products are currently sold with the support of retailers and wholesalers to further distribute to the targeted audience. The marketing plan will enable the company to sell out a wide range of products including low-calorie drink, light soda, cane sugar, and calorie-free drinks. The marketing plan has discussed the recommended marketing mix and recommended the budget to meet the recommended changes in the marketing mix.

2.      Introduction and Objectives of  Oman Refco Company

Oman Refreshment Company (ORC) is a leading company in Oman that provide beverages. Oman Refreshment Company (ORC) was established in 1974 with the initial share capital of RO 800, 000. Company is headquartered in Muscat while operations are expanded overall national level markets. Key products of Oman Refreshment Company (ORC) are the famous products of PepsiCo has it works as a franchise for PepsiCo. Key products include Frito Lays. Cheetos, Pepsi, Shani, and Mountain Dew. Brands of Oman Refreshment Company (ORC) are covering various product lines of Water, Tea, Juice, Salty Snacks, Ice Cream, and Coffee (Pepsioman.com, 2019).

The main objective of the present work is to study the marketing plan of Oman Refreshment Company (ORC). In this report, current market analysis, Segmentation, Targeting, and Positioning (STP) analysis, and the marketing mix are presented in detail.         

3.      Current Market and Brand of Oman Refco Company

4.      Marketing Plan Objectives of  Oman Refco Company

Here in this section, some specific and realistic objective of the marketing plan is presented:  

1)       The marketing plan will result in an increase in sales revenue by 5% in 2 months.

The above-mentioned objective is based on the SMART rule as the objective is specific, measurable, timely, attainable, and realistic.

v  Specific of  Oman Refco Company

The marketing plan will increase revenue.

v  Measurable of  Oman Refco Company

The percentage of increase in the revenue would be around 5%. Increase or decrease in the sales revenue will measure the effectiveness or success of the marketing plan.

v  Attainable of  Oman Refco Company

The selected duration is enough for the company to attain the goal of an increase in sales revenue.

v  Realistic of  Oman Refco Company

Marketing and promotion result in the increase of sales therefore objective are realistic.

v  Timely of  Oman Refco Company

The selected duration for the accomplishment of the objective is 2 month.

5.      Segmentation, Targeting, and Positioning

Segmentation, targeting, and positioning are the key components of the marketing plan. Here details on each of these are presented:

Segmentation of  Oman Refco Company:

The whole population of Oman will be divided into a segment to select the most relevant and potential audience for this marketing plan. The market will be segmented based on geographical and demographic segmentation. In this segmentation, the market will be firstly divided into geographical segments then selected geographical segments will be sub-divided in demographic characteristics.    

Targeting of  Oman Refco Company:

Based on geographical and demographic segmentation potential audience will be selected as a targeted market. The target market will belong to Seeb (Oman) as it has a population of 360,000 which is many times more than the population of other cities. While demographic characteristics of targeted market are presented below in the table.

Segment Variables	Targeted Segments
Gender	Male and Female (both)
Age	Teenagers and Adults
Location	Seeb (Oman)
Income	Low and High Income

     Thus conclusively, the marketing plan of Oman Refreshment Company (ORC) has targeted market as teenager and adults of both genders, belonging to low and high-income groups in Seeb (Oman).  

Positioning of  Oman Refco Company:

The marketing plan will work on positive positioning of Oman Refreshment Company (ORC) in the targeted market to ensure positive image building and customer equity as these can benefit to increase revenue and sales. The marketing plan will present products of Oman Refreshment Company (ORC) as healthy and safe drinks to get refreshment at affordable prices.

6.      Marketing Mix Strategy and Budget Recommendation

In this section, the proposed marketing mix of 7Ps is presented in detail along with budget recommendations regarding marketing mix.

v  Marketing Mix Strategy of Oman Refco Company

Marketing mix of Oman Refreshment Company (ORC) is consist of 7Ps including Place, Product, Price, Promotion, Process, People, and Physical Evidence (Bhasin, 2019).

1)      Place of Oman Refco Company

Oman Refreshment Company (ORC) will offer products in local markets of Seeb (Oman). While an extensive beverages distribution system should be used to make sure the availability of products to the proposed customers. The recommended strategy will enable to work closely with the customers Oman Refreshment Company (ORC) and provide products to local restaurants, convenience stores, theme parks, and movie theatres. Conclusively, a large geographical segment will be covered with multiple retail channels and supply chain intermediaries.         

2)      Product of  Oman Refco Company

Key products to be offered to the targeted market are 7-up, Mountain Dew, Brisk, Pepsi, and Diet Pepsi. Beverages of different flavours including orange, lemon, and soda are packed in different sizes and different designed packages. The recommendation is to introduce a new flavour such as strawberry and fresh fruits flavour. Moreover, Labels containing information about ingredients should be added to these products (Fifield, 2012).

3)      Price of  Oman Refco Company

According to the market analysis, the targeted market belongs to both low and high-income groups. Therefore, setting high prices can reduce the affordability of customers from low-income groups. However, setting affordable and reasonable prices will not influence the purchasing decision of any of these income groups. Moreover, the competitive product is threats for Oman Refreshment Company (ORC). Considering, all these factors prices of all offered products should be set at reasonable prices with a moderate profit margin. The company should set out a cost-plus pricing strategy to ensure CGS mark-up. Moreover, the company will set a 0.40 rayal price for each small size bottle of drink with a 10% discount (thus estimated price for each bottle is 0.36).       

4)      Process of  Oman Refco Company

Oman Refreshment Company (ORC) should ensure uniformity of offering by developing long term contract with the parent company PepsiCo. Same taste and quality should be delivered to the customer because of the fixed processing system at PepsiCo production plant. Although, service delivery process should be made easy through the shipment of products and transportation to local markets from warehouses. Conclusively, the process will relate to the purchase of products, storing inventory, marketing, getting orders, transportation to the customers. 

5)      People of  Oman Refco Company

For the execution of all business operations, the company should recruit and hire at least one expert and highly experienced employee to guide all employees, managerial staff, suppliers, inventory managers, marketing team, and finance experts at headquarter, workplace and warehouses (Gary, 2011).

6)      Physical Evidence of  Oman Refco Company

Physical evidence includes service delivery, infrastructure, and facilities. Buildings of headquarter and warehouse will be used as infrastructure. While purchased assets for transportation such as vehicles and trucks will facilitate service delivery.

7)      Promotion of  Oman Refco Company

Several promotional offers are discussed in the marketing plan for Oman Refreshment Company (ORC) to promote sales of offered products. According to the plan, the company should advertise its products on digital media and print media. Advertisement containing information about product quality, price, and slogans should be printed in magazines and newspapers. While social media platform e.g. Facebook, Twitter, and YouTube should be used for the promotion of products at digital media. Moreover, the company should also support hashtag campaigns such as #gohealthy, #TasteandFun and #eco-friendlyORC to engage proposed customers in the promotion campaigns (Erdogmus & Cicek, 2012; BERGSTROM, 2019).

v  Budget Recommendations of  Oman Refco Company

The recommended budget for the marketing plan is presented below:

The above-mentioned cost for each marketing mix is estimated based on the secondary data analysis and research articles review. Product manufacturing cost is around OR 0.22 for each unit and production of 100000 units will cost 22000. While the same production houses and places are targeted but the only supply chain is extended thus for 2-month duration 500 would be increased expenses. Prices are the cost of the discount offered to customers. While the promotion budget includes expense and cost of advertisement at social and digital media (Halloran & Thies, 2012; Thirdrivermarketing.com, 2018). Additionally, recruitment of new staff members will cost around 60000 as recruitment will be made in employment, managerial, and supply chain areas (Deegan, 2019; Meinrenken, Sauerhaft, Garvan, & Lackner, 2014). 

7.      Evaluation and Control    of  Oman Refco Company

The plan will be monitored through the use of modern software. Sales of each month will be recorded in software as well as cost-related information will be also added to calculate profit margin for the two-month duration. Key performance indicators such as an increase in demand, an increase in sales, and the increase in revenue will present the effectiveness and success of the marketing plan.