Marketing Plan-Bubble Buzz
EXECUTIVE SUMMARY The following marketing plan forms the basis for the introduction of an innovative new product by the Coca-Cola Company. The analysis allows us to outline the best strategies to follow for the achievement of the company’s strategic goals. “Bubble buzz” will be marketed as a unique functional drink while striving to reinforce the company’s status as the leader in innovation and successful product launches.The marketing strategies will enable to reach a market size of an estimated 10 milion people (targeted) with a forecasted sales growth prospect of 10% over the next 5 years (tk100 crore profits), while satisfying the needs of the still-unserved market for ready-to-drink bubble tea.
Success will be reflected by a sizeable capture of market shares within this market, while strategically carrying the company up to the top spot as the market leader in the functional drinks segment of soft drinks. Y-buzz of Coca Cola will be served in Bangladesh .COMPANY OVERVIEW (BriEF DESCRIPTION OF THE COMPANY) Brief description of the company The Coca-Cola Company’s core undertaking is to benefit and refresh everyone it reaches. Founded in 1886, we are the world’s leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, which are used to produce nearly 400 beverage brands that make up for our wide portfolio.
Our corporate headquarters are established in Atlanta, and we are holding local operations in over 200 countries around the world.Our activities cover all sectors of the beverage industry. We are the second leading player in functional and Asian specialty drinks, while ranking number one in value for the ready-to-drink tea sector . Brief description of the new product, & strategic role in the future position of the company “Bubble tea” will be a bottled beverage and will be positioned as the only ready-to-drink Bubble Tea product available on the market. The beverage will have a green tea base with enhanced fruit flavors i.
e. passion fruit, strawberry and lime.It will bring an entirely unique drinking experience to its consumers. It will present itself as a funky and unusual alternative to traditional tea while providing the great taste of authentic fruit juice in an attractive and convenient packaging. The strategic role of y-Buzz for The Coca-Cola Company is centered around three objectives: ? To become the market leader in the functional drinks segment with increased market shares. ? To stay at the forefront as the market leader in innovative product introductions and successful product launches; ?To strengthen and satisfy the needs of the more adventurous young generation (14-29 age group) consumers with a new eye-catching and Functional product; INDUSTRY ANALYSIS Consumption: The sales volume for the functional drinks segment in bangladesh has reached tk 920 crore in 2009 for a volume of 92 million liters .
This product segment has shown a steady growth since 2000: an increase of 15% over a period of 9 years . The growth of this particular market is largely due to a slow shift in consumer trends.Trends: Through the early 1960s, soft drinks were synonymous with “colas” in the mind of consumers. In the 1980s and 1990s, however, other beverages (from bottled water to tea) became more popular. Today, while the soft drink industry’s value has increased in 2009, the volume sales of carbonated soft drinks has declined due to a large proportion of consumers who are moving for the trend towards healthier alternatives in the functional drink segment such as energy drinks, milk & juice drinks, sports drinks as well as bottled juices and water.
New flavor introductions and health-conscious formulations have been launched in an attempt to counter the decline in carbonated soft drink sales. The functional market is expected to show a steady growth and consumer interest in the future years as consumers are now demanding more healthier products. Profitability & future growth potential: In 2008, Concentrate Producers earned 30% pretax profits on their sales, While the functional drinks sector only accounts for 4% of the total soft drinks sales in 2008.Estimates are forecasting a growth of 8. 2% in sales and 12 % in volume consumption by the end of 2009 . SWOT ANALYSIS (Strengths and weaknesses, opportunities and threats) |Strengths |Weaknesses | |Brand strength |Reliant upon line extensions | |Effective stride in ew markets |Reliant upon particular carbonated drinks | |Results of operations |Brand dilution | |Strong existing distribution channels |Entrance into difficult non-core categories | | |Saturation of carbonated soft drink segment | |Opportunities |Threats | |New product introductions |Strong competition | |Brand is attractive to global partners |Potential health issues | | |Free trade | STRENGHTS Brand strength The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world.
The Coca-Cola brand is unarguably one of the most recognizable brands in the 200 countries where it sells its products. The strong brand name is one of the basis for the company’s competitive advantage on several of its core markets. Effective strides in new markets Coca-Cola has partnered with several companies (such as the joint venture with Nestle) in order to increase the ability to react to demands and changes in the markets of iced tea, coffee and juices. The developing markets are more complex than the carbonated soft drinks.
Results of operations In 2008, net-operating revenues totaled approximately tk. 25. 7 crore, an 8% increase from 2007. Gross profit totaled tk. 15. 2 crore in 2008.
The company generated tk. 1. crore from its operating activities and re-invests heavily into its business. The ability to generate significant cash flows is one of the its key strengths Strong existing distribution channels Coca-Cola has operations worldwide and is well established in its distribution channels (such as store retailers or vending machines). Therefore, a new product launch can typically rely on the existing distribution system in order to reach the majority of its target market while requiring no further major supply / delivery developments. WEAKNESSES Relying upon line extensions Coca-Cola is relying on brand extensions to increase sales in specific lines, particularly its long-time carbonated soft drink products.
However, there is a strong risk of cannibalizing existing sales in the long term (for example, Bubble Tea might deter on sales for its existing items) Reliant upon particular carbonated drinks The long-time presence of Coca-Cola’s Coke beverage has established this particular line as a good product. While the core Coke products bring a solid base of sales and loyalty to the company, so focusing on this new bubble tea may not bring higher return to the company. Brand dilution The tremendous amount of existing brands and new product being introduced by the company could diminish the value and differentiating strength of each product that is being manufactured. Entrance into difficult non-core categories The Coca-Cola Company is a truly global multinational business giant.While some categories of products are distributed in many areas of the globe (Coke), geographical needs already require that these global brands are heavily adapted to their target region..
Therefore, the process of diversifying the production and marketing each product involves costly investments. And introducing new products may incur more costs for the company and also require to adopt new strategy. Saturation of carbonated soft drink segment Due to the countless number of brands available on the market, it becomes increasingly difficult in the soft drinks segment to innovate and create new products that genuinely stand out from their competition.And as we have seen, an analysis of the industry has shown that growth in the soft drinks market becomes difficult and challenging when the conditions and consumer trends cause a market demand that stays stagnant. OPPORTUNITIES New product introductions The functional drinks market is one that particularly allows more innovation opportunities and gives greater freedom for creativity in the design, production, manufacturing, distribution, promotion and retailing choices and processes. Brand is attractive to global partners Because of the company’s size (including value, brand name and operating revenues) and wide portfolio base, Coca-Cola enjoys a strong purchasing power over its suppliers, and also attracts large partnerships with various levels of consumer reach (e.
g.Burger King, Mcdonalds, sponsorship agreements, etc. ). Existing brand awareness also provides an international playing field for powerful marketing strategies. THREATS Strong competition Coca-Cola is competing in a global market that is characterized by an oligopoly between several (but few in numbers) competitors.
The fight for market shares and sales in crowded markets becomes a complex one for the company. Potential health issues The current trend of consumer and consumers groups’ awareness towards goods and services is both beneficial and threatening for companies in the food and beverages industry. Over the last few years, concerns over health issues ave risen in the media through an expanded and ever-growing network such as journals, TV channels, internet and so on. The move of the younger generation towards a healthier lifestyle call for careful planning and decision-making in new product developments. Large companies can also easily become the target of consumers’ apprehension.
Free trade In an era of globalization, large international competitors can come out with comparative advantages. Issues arise when dealing with price competition and economic growth. Trade organizations are also faced with public pressure which can disrupt operations in one or more areas of the company. COMPETITION Coca-Cola’s top competitors for the soft drinks industry are Pepsico (31.
6%) and Cadbury-Schweppes (15. % of market), which combined, represent about 48% of the total market . Coca-Cola is leading with 43. 7% of the total soft drinks market. In the functional drinks sector, PepsiCo is the current market leader with 61.
5% of the market shares in 2008. Coca-Cola Co is second with 33. 5%. Bubble Buzz will launch into a currently unserved subset of that market “Ready-To-Drink” Bubble Tea, which is until now nonexisting. It is anticipated that the following brands could potentially compete with Bubble Buzz in the functional drinks market: Lipton Tea and products of pepsicola, as well as Bubble Buzz also creates a potential situation for cannibalism with Coca-Cola’s very own other functional drinks.The current market for traditional Bubble Tea is fragmented, since the distribution is restricted to local outlets and selling points such as counters and small Bubble Tea shops in scattered locations across bangladesh.
However, direct competition from these local players is not anticipated. A strong distribution system already exists with Coca-Cola, since partnerships and channels are already in place. This will facilitate the product’s reach into its target market. Barriers to entry: |Business practices |Manufacturing | |Due to the number of competitors, it will be hard to prevent |Producing bottledBubble Tea requires sizeable capital | |imitation behaviour (especially from PepsiCo) |investments for the specific needs of the manufacturing chain | | |(from ingredients to final packaging specifications) | |Given the wide array of brands (saturation in the soft drink |The marketing campaign to make this unknown brand popular | |market), it becomes a challenge for Bubble Buzz to stand out |requires more promotional expenditures than a traditional brand | | |extension | TARGET MARKETSegment identification: RTD (Ready-to-drink) bottled Bubble Tea, to be established within the Functional Drinks sector Segment needs: The product will cater to both physiological needs (hydrating and nutritional value) and social needs (perception of a social, fun drink with a sense of belonging within peer consumer groups) Segment trends: The current trends include a shift away from junk foods and carbonated drinks, a growing interest for healthier / beneficial products for the “mind and body” the trend towards the availability of the products for those with an active lifestyle and those who are seeking different flavours Segment growth potential: Statistical reports anticipate a segment growth of 2. 5% over the next 5 years (2014) for the 10-29 years age group.
Segmentation variables and breakdowns for BANGLADESHI consumer market of Bubble Tea | |MAIN DIMENSIONS |VARIABLES |BREAKDOWNS | |GEOGRAPHIC SEGMENTATION |Region |Nationwide (all cities and districts) with emphasis on urban / metropolitan areas, and | | | |adapted strategies for all geographical groups | | |Density |Urban, suburban | |DEMOGRAPHIC SEGMENTATION |Age |10-29 years old (teenagers, studying age and young adults) | | |Gender |Male and Female | | |Income |All under tk. 5000 | | |Occupation |Students; new graduated; new workers; young professionals | | |Education |College ,University | | | |Brand conscious, anchored in popular culture, inclined for differentiation and | | |Personality |sophistication, open-minded , quick maturation with modern products | |PSYCHOGRAPHIC SEGMENTATION | | | | | |Most of them dependent on parents, no major responsibilities, highly influenced by peer| | |Lifestyle |groups, active life, importance of school, work and social life | | | |COMMUNICATION BENEFITS | | | |-Nutritional information | | |Benefits sought |-Informational text on history of product | |BEHAVIORAL SEGMENTATION | |FUNCTIONAL BENEFITS | | | |-Healthier than soft drinks | | | |-Convenient, easy to take out | | | |PERCEPTUAL BENEFITS | | | |-Quality/Premium price | | | |-Social standing/good-looking | | |Usage rate |Seasonal (peak in summer), daily-basis, weekly basis | | |User status |Non-user, regular user | | |Loyalty status |None, medium, strong | Positioning strategy: The only RTD bottled bubble tea available.Funky & eye-catching bottle, functional packaging, premium-priced, cool, new and unusual, unique drinking experience, aspects of play (tapioca pearls, oversized colored straw), variety of flavors, sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks. CUSTOMER ANALYSIS Profile: Name: ROCKY RAHMAN Date of Birth: 12/11/85 Age: 20 Occupation: Khulna University Student Needs: Healthy lifestyle/Social belonging Activities: Cricket Team Due to his active and quick-paced life, Rocky wakes up at 6:30AM every morning. Today, he puts on his Branded Arong T shirt and Armani Jeans, and of course, he always has his Apex shoes on.
After having called his friends with his new Nokia 95 camera phone, he leaves his apartment and goes to his gym , while listening to his favourite music that he downloaded to his iPod. Bob usually likes to work out before he has to head to University. That way, he feels he has more energy and feels ready to confront his busy day attending courses and getting things done. On his way to school, Bob knows he is thirsty and he feels the need for something very refreshing.
He stops at a convenience store next to the gym. Standing in front of all the choices in the beverages aisle, one particular bottle catches his sight. And he instantly recognizes the brand.He knows that this is a bottle of “Bubble tea”, because not only do his other friends often drink it, but he also heard them talk about this brand new product that Coca-Cola just launched. He also previously saw “Bubble tea” ads when he surfed on his favourite websites.
He grabs a bottle, and takes a closer look at the nutritive information label. He is very pleased to see that the new drink is more nutritive and definitely healthier than the other soft drinks that were available on the shelves next to it. The higher price of the product doesn’t bother him, since he perceives “Bubble tea” as a high-quality, functional product, which is manufactured by a well renowned company. Plus, he did not feel like simply buying bottled water, or carbonated soft drinks.Because of his inclination towards more sophisticated tastes, and because he likes to try new products on his own, he thinks this bottle is worth the price. Because of his busy schedule, ROCKY prefers to save time as much as he can.
Thus, he decides to buy two bottles. One to quench his immediate thirst, and another one that he wants to save for later in the day. He sees that the packaging is so convenient and easy to carry, and so when he exits the store, he puts the second bottle in his backpack. He attends all of his classes. During his break, he always hangs out with his friends. A lot of them are drinking from different “Bubble tea” flavours.
He opens his second bottle, since he had such a great experience with the first one.He liked that the beverage was so unusual, yet refreshing. The drink surpassed many of his expectations. He has no doubt about it. ROCKY will continue to buy Bubble tea for its good taste, and also because at his age, he sees it is the coolest trend right now. MARKETING OBJECTIVES The objectives of the marketing plan are strategically centered around 3 criteria: to create a strong consumer awareness towards a completely new bubble tea product from Coca-Cola, to establish a wide brand recognition through the capture of market shares in the functional drinks segment, and to become the top market leader in that particular segment within the forecasted sales figures.
Marketing Program PRODUCT STRATEGYThe core o Bubble Tea beverage in a pre-bottled, ready-to-drink format. The actual product o Packaging and labeling: In a good handy and attractive packages. o Branding: colorful, aspect of play, round shaped, prominent Bubble tea logo written in modern font, catchphrases such as “Think outside the Bubble” and “Get Your Buzz”. o Trade name: Bubble Buzz™, a Coca-Cola product o Brand personality: energy, funky, cool, functional, original, funny, healthy, etc. o Brand equity: Coca-Cola provides a quality, consistent, innovative and accessible soft drink reputation.
Marketing considerations o Product life cycle: Bubble Buzz is a low-learning product.With a strong marketing campaign, “sales will begin immediately and the benefits of the purchase are readily understood” . Since Bubble Buzz is prone to product imitation, Coca-Cola’s strategy is to broaden distribution quickly, which is currently feasible thanks to the company’s high manufacturing capacity. o Product class: Food & beverage ( Soft Drinks ( Functional Drinks.. o Bubble Buzz follows the practice of product modification Coca-Cola is introducing an existing beverage (bubble tea) but redefines the drink with a new, more convenient package.
Bubble Tea will now become a widely available drink in multiple retailing (distribution) channels.Product Characteristics: PRICE STRATEGY The price strategy that will be undertaken should consider the following aspects: 1. Consumer demand 2. The product lifecycle Customer demand Customer demand is a crucial factor which is driven by tastes, income and availability of others similar products at a different price (mentioned later in the potential substitutes section). For a lot of consumers, value and price are highly related: ‘’the higher the price, the higher the value”.
Consequently, Coca-Cola’s intention to position Bubble Buzz as a unique, innovative and attractive product gives it a certain control over Bubble Buzz price. The product lifecycleThe company should take advantage also to the fact that the newer the product and the earlier in its lifecycle the higher the price can usually be. It ensures a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly and it also brings a certain prestige to the product. Bubble buzz is at its Introduction stage; we thus must inform consumers in an effort to increase their level of awareness. Awareness is our primary promotional objective.
Then the following months after the launch of Bubble Buzz , in its Growth stage, Coca-Cola will have to persuade the consumer to buy the product and try to increases the sales.Pricing strategy (Other constraints) The first possible constraint would be the regulations on pricing. Another constraint would be that Coca-Cola must not set a price that is too high because competitors will be attracted by potential profits and will follow by a lower price. Profit-oriented approach: Target profit One of the central objectives of this project being to become the market leader in functional drinks, Coca-Cola is willing to stay among the top competitors, if not becoming the greater, by achieving a certain target profit. This could be obtained by establish a price that will largely cover variable and fixed costs while bringing tremendous profits.
1.Competition-approach: Above market Competitors and potential substitutes prices can also be part of the strategy. Having a higher price could make customers aware of the additional benefits and the higher quality of Bubble Buzz. PROMOTION STRATEGY Objectives: • To initiate strong awareness about the launch of Bubble Buzz throughout 14-29 years old consumers as well as their parents. • To win market shares over our top functional drinks competitor, PepsiCo. Message: The promotional outputs will convey the clear message that “Bubble Buzz is a healthy drink for sporty and young people who simply enjoy taking care of their body and life.
” Concepts: “Think outside the bubble”: Be Bold, Be Original, Be Different, Be Yourself. • “A good spirit in a good body. ” • “For the out-of-the-ordinary individuals who like to challenge themselves. ” Media selection: Before choosing the appropriate medias, it is important to note that our target (14-29 age group) consumers only give partial attention to media. However, they can be reached through integrated programs.
They are typically using more than one communication media at a time; This group of consumers doesn’t give its full attention to one single message, but rather uses continuous partial attention to scan the media. Marketers can still communicate with this age group by using a variety of targeted promotional tools.Another important tactic to reach our target market is through “Buzz” marketing, which Coca-Cola will heavily use in this campaign (campus, contests, road show). Advertising: |Output |Examples | |Television |BTV as well as other satellite Cable tv | |Radio |Bangladesh Betar along with other private FM stations | |Newspapers |Most popular newspapers | |Outdoors |Billboards and prints in select areas including: | | |Campuses, transportation (bus, tations) | | |Tourist areas in high seasonal periods | |Personal selling |Direct contact with retailers. | |Publicity |Conferences, press releases (print and online), buzz marketing through TV coverage| Target Audience: • Intermediary: personal selling will be more often used • Ultimate consumer: Coca-Cola will use more of mass media because the amount of potential buyers is large.
PLACE (DISTRIBUTION STRATEGY) Bubble Buzz will be distributed through these channels: supermarkets, convenience stores, independent food stores, discount stores, multiple grocers, vending machines, direct sales. Projected Financial Performance Expected Costs: Expected Revenues ConclusionBased on the aforementioned analysis, Bubble Buzz appears to be a profitable and innovative product with a strong outlook for market share presence and segment growth opportunity. Upon implementation of the marketing plan, the Coca-Cola Company will regain increased market shares and claim its targeted situational position of market leader in the functional drinks segment as well as keeping its long-standing consumer recognition for innovative and successful product launches in diversified markets. Since Bangladesh is a good potential market with large population for the cocacola company, successfully implementing the marketing plan can lead to attain the corporate objectives and building strong value in the mind of the consumers [pic]