Marketing Plan

Marketing Environment HTTP owns a modern production line and performs very well in managing quality tit international standard such as ‘SO, and others. Moreover, they have invested significantly in research and development. One of the important strengths of the company is that they have a strong distribution system. HTTP also has some limitations. The company has only one factory which cannot provide enough products to the market. In addition, the customer service of the company underperformed is another disadvantage.

The limited liability company is going to develop to Join-stock company for its benefit of such organizational structure. The weather of Vietnam creates a great opportunities for the support of tea. Therefore, HTTP has a large number of supporters. Moreover, the development of technology fosters the communication between customers and producer more easily and inexpensively. Although there are great opportunities, HTTP is suffering from competitive pressure. While the direct competitor – CO has dominated a large proportion of market, there are so many substitute products for consumers to choose for the same need.

Furthermore, the unstable economy has made some impact on the input and purchase process. Target Market The target market of Zero Degree Green Tea is Vietnamese young adults who account or a large proportion of population in Vietnam. Zero Degree Green Tea aims to be a convenient drink that is good for health and has good taste in top of consumers’ mind. Marketing Mix HTTP provides many kinds of green tea in the product line which satisfy different taste of target consumers. The Zero Degree Green Tea is produced by modern technology and contain healthy components such as vitamins.

The product is packaged in PET bottle which is reusable. The bottle is designed with green color, so it looks fresh and eye-catching to target consumers. At the beginning, HTTP follows the skimming price strategy with the Zero Degree Green Tea product. They want consumers to know that the product has good quality and healthy. At the current time, Zero Degree Green Tea has been set at the market price to compete with other competitors. Promotion strategy of Zero Degree Green Tea focuses on media advertising.

In addition, some sales promotion programs were implemented to attract its target market. Products provided by HTTP take advantage from the reputation of the company including Zero Degree Green Tea. HTTP has built good relations with society and media in variety of social activities. HTTP has invested 50 million dollar in striation and facilities. There are two new factories have been built in Chug Alai and Ha Name to provide inventory for the market in the Middle and the North of Vietnam. Zero Degree Green Tea is distributed intensively to the market through many intermediaries.

Company Description Tan Hippie Path was well known as Ben Than bear before. It was established in 1994 by Dry. Trans Guy Than. Nowadays, besides hundreds of foreign brands in drinking industry like Pepsi, Coca Cola, Tan Hippie Path almost converts awareness of Vietnamese about carbonated drink into healthier drink. Tan Hippie Pears products intended to achieve the title “Vietnam High Quality Goods” by consumers voted in honor of National Brands in 2010 and the other valuable prizes which makes the customers trust in quality management as well as environmental protection of Tan Hippie Path.

The company is recognized as Quality Management System according to ISO 9001 :2000 in 1999, Environmental Management system ISO 14001 : 2004 2006 and Hygiene Management System Food Safety HACK standards in 2006 Facilities of Tan Hippie Path Company are very large and organizing: Head Office is at 219 provincial highway located in Bin Dung, Vine PH, Than An, Bin Dung. Scale factory broader 110,000 mm, with the equipment, technological lines of research, and the most modern manufacturing Southeast Asia.

Furthermore, HTTP is proud to be one of the units owned in many produce technology, the most modern lines Vietnam as sterile lines extracted Aseptic cold, fresh beer, beverages and fermented production line. In 2004, symbolism production with advanced technology shelling of Japan was first applied in Vietnam. Than Herbal Tea, Number 1 energy drink, soy milk Soya Number 1, and so on is the leading brand in the market, has proved HTTP always go early in accessing and understanding the ever-changing needs of consumers.

For instance, the most well-known drink, also in one of the first product Tan Hippie Path has produced, Zero decree Green Tea has taken a huge place in drinking generation. Strategic Focus and Plan Vision The vision of company is to become the leading Asian corporations in three main business sectors such as industry drinks, instant food, and plastic packaging. This is measured by a lot of factors; firstly, the company is located in the top 10 leading company in the beverage market and food in Vietnam.

Secondly, it has to achieve Total Quality Management certification and international management standard. The final factor is internal market penetration; the company makes effort to enter brand of Zero Degree green Tea to Asian market. Mission Tan Hippie Path Group produces and does business the healthy products that are good for Asian consumers with the taste and quality of products according to international standards. At the same time, the company has to satisfy the highest demands of customers to deserve as preferred supplier as well as a reliable partner in business. Goal

The objective of the Tan Hippie Path Trading and Services Limited Liability Company is to create the best drink products through multiple brands such as Number 1, Zero Degree Green Tea, Herbal Tea Dry Than to consumers by an extensive distribution system and spread over 64 provinces in Vietnam. Core Competency and Sustainable Competitive Advantage Core Competency Each company has special core competency. So does Tan Hippie Path, for them, “Today more than yesterday but not right by tomorrow with Spirit” Nothing is impossible” and they commit to achieve “International quality standards”.

Moreover, the many sets orientation according to the highest spirit of family and becomes a trusted partner. HTTP group is striving to become responsible and respectable citizens in the society. Competitive Advantage To compete with the giants of world-class beverages are available in Vietnam, Tan Hippie Path beverage group tried incessantly to create differences. The advantage of HTTP is flexibility, quick decision making, know how to find out the potential demand of consumers to meet and continuous improvement.

The more important thing is that HTTP group is always interested in the development of community because it plays the important role to successes of business. Therefore, HTTP involved in social activities and charity very much. “l am aware the consumer is king, decide the survival of your business, so in order to receive the support of consumers, we have the contribution by contrast, creates belief in love. Therefore, I have captured the hearts of Vietnamese customers. Success depends on many factors, but ultimately the quality of the product remains the number one criteria. (Businessman Trans Quiz Than-CEO of Tan Hippie Path group) Situation Analysis SOOT Analysts Strengths High-quality human resources Modern productions line and productions facilities HTTP is one of the most leading firm, which achieve integrated systems stability standards: ISO 9001-2004, 14001-2000 Having large share of the market for non-gas beverage Substantial investment in product research and development Numerous award for quality, participated in many social events Wide distribution system Weaknesses There is only one factory located in Bin Dung Firm only focus on domestic market Taps beverage products compete with each other.

Customer service is not good Limited liability company Opportunities Large market with modern consumer. High quality materials contribute to improve the quality of products Climate of Vietnam will be a business opportunity if HTTP development suitable products. Tropical climate increases demand for consumer beverage. There are a large number of material supplier of HTTP, That facilitates for manufacture to ensure inputs are favorable Information technology and mass media develop image of HTTP and its products Vietnam located in South East Asia and close to ocean.

That is good position for export to foreign market Vietnam have Joint in WTFO since 2006 Drinking tea is traditional habit of Vietnamese and Asian Threats Competitive pressure: Taps products can be competed with other direct competitors like CO of ARC and other substitute goods Customers require more about quality of product and packaging. That increase pressure on R & D department of HTTP Unfair competition Inflation impact on cost of input and purchasing of customer Complex criteria of hygiene and safety Industry Analysis It is predicted that, Vietnamese beverage tent to increase gradually in gas beverages at about 5% per year.

Whereas, non-gas beverage will have a significant growth at a rate of 10% a year, within the period between 2007 and 2015. Specifically, mineral water ND bottle water will have average increase of 12% per year, fruit Juice’s figures will increase at 4-7% per year (2007-20019) and 10-12% per year (2010-2015). Most of beverage firm tends to produce and sale non -gas beverage, especially products that’s good for consumer’s health. In Vietnam and world’s beverage market, bottled green tea have been developing significantly, since ass.

Almost famous brand which have appeared in Vietnam for many year have produced green tea products in Europe, the U. S, Japan’s market. Such as: Lipton, Nestle, Unprinted, ARC. At the moment, there are a lot of green tea products which are bottled. The two most popular product are “Zero degree green tea” of Tan Hippie Path, CO of ARC. Specifically, the Statistic of Nielsen in 2011 illustrated that. “Zero degree green tea” accounted for 13% of the market while, Co’s figures were 8,1%.

Furthermore, another statistic from Nielsen also showed development of Zero degree green tea proportion in bottled Vietnam green tea market that 1/2007: 30%3/2007: 40%4/2007: 48%5/2007: 49%6/2007: 53%7/2007: 52%8/2007: 57%9/2007: Fact of tea industry Vietnam have climate and geographic conditions for growing of tea. There are 33 over 54 provinces of Vietnam grow tea. Such as Thai Unguent, Lam Dong which is famous place for growing tea in Vietnam. Within period between 2003 and 2004, Tea’s output growth steadily and Tea’s area were 100. 0006 ha.

Thus, it’s good opportunity for bottle green tea to develop because of low cost of input. Competitor analysis Since, Tan Hippie Path discovered and developed bottled green tea market, “Zero degree green tea” brand have begun to be the most popular product in the market. Then, bottled green tea have become potential market that big brands began to Join in. In consequence, there are many bottled green tea products form other firms omitted in this market. Such as: Real leaf (Coca-Cola), Fresh (Vanilla), Lipton Pure Green (Pepsi), CO (ARC).

Furthermore, many brands also diversified instance bottled green tea products. Such as artichoke tea, lemon green tea, honey green tea, free- sugar green tea. It creates their differences compared to other competitor. Prefigure 1: The bottled green tea market of Vietnam in 2011 (At-Nielsen) Although many products of many firm in the bottled green tea market, the report of Canticles illustrates that the two most popular products areas of ARC and Zero degree green EAI of Tan Hepatic. The two big ones still maintain a significant distance rather than other brands.

Investing in Vietnam with total capital of 14,5 million, CO took aggressive advertising campaign, in 2010, ARC raised the yield to 70% by expanding factories in Ho Chi Mini City and completing new one in Ha Non. To compete against opponent- Tan Hepatic which discovered and had larger market shares, CO found its own way. It is focusing on developing distribution network, particularly in big cities and choosing PET bottles which have a small capacity (mall) to fit the customer hand’s size. In consequence, ARC achieved 57% growth in Vietnam in 2011.

Therein, CO is the major revenue of beverages segment with the best growth. Company The first and most important reason why Tan Hippie Path has a high position as it is today is the company’s strengths in facilities and human resources. They have a high quality input sources from prestigious suppliers. Besides (in addition), a well- equipped infrastructure system with modern machineries, equipment, research facilities and the most modern manufacturing process in Asian, alongside with high regarded labor protection procedures to ensure safety for employees.

In HTTP, their moderators (leader) are ambitious and visionary managers: They are very flexible, make decision based on hard working researches and discussions. The success of CO Green Tea is depicted by a great effort of them while they knew how to find out the potential needs of consumers to satisfy and continuous improvement, and not afraid to roll out new products to compete in a hot market of beverage drinks. Their workers are also professionally trained and with high responsibility.

Furthermore, Tan Hippie Path has over 17 years of operation in beverage industries and serves the nonuser, company always get customer’s trust and appreciation for high quality products and service. It is Illustrated with 11 consecutive years (1999-2009), HTTP was voted as “one of the top quality brand of Viet Name” by Saigon marketing newspaper readers. The company is one of the leading enterprises of the country reached an international quality standards system such as ISO 9001-2004, 14001-2000, HACK etc.

Especially, they have a larger market share of the beverage market with an extensive distribution system. Indeed, there are other reasons for the company’s success and marketing strategies is one of the prominent factors to achieve that. Overall, Tan Hippie Path used their strengths in marketing strategies analysis and evaluation process to satisfy customer about high quality products as well as achieving mission goals. Consumer analysis Customers account for an inseparable part in Tan Hippie Path business.

Therefore, customer segmentation and analyzing consumers’ characteristics are very essential. Particularly, Tan Hippie Path realized that nowadays consumers have higher education levels and their living standard is better than before, so they always require better laity products. Viet Name is a populous country and with young population who follow modern lifestyle with fast food and convenient drink. Another pro for beverage development is a tropical climate (very hot) so this increase demands for cool drinking.

In addition, with respect to the lifestyle of Vietnamese, their products are combinations of traditional (tradition of drinking tea) and modernity (the product is capable of using fast). Tan Hippie Path provides valuable contribution to customers through health and nutrition which is one of the issues people concern today. Take example, because green tea is good for human health: increase resistance, refresh body (compare with Coca cola). O degree green tea of company is a high quality product too that is guaranteed thanks to technology bottled still in high temperatures from 86 degrees C to 90 degrees C.

This process keeps honest green tea flavor characteristics, pure quality, and nutrition. Market-product Focus Target Market Zero Degree Green Tea’s target market is Vietnamese young adults who are suffering from the negative impacts of fast-paced lifestyle such as pollution, great pressure at school and work. Therefore, they raise awareness of healthy drinks use (Best Sustained Success, 2011). Since Vietnam has youthful age structure, this target market becomes very attractive.

If GET dominates the market, HTTP can gain much profit. Points of Difference HTTP provides ready-to-drink green tea to the markets with some points of difference. Firstly, it is convenient to carry on and it saves time of making. Moreover, Zero Degree Green Tea is made by natural materials and it has no gas. Therefore, the product does not damage consumers’ health. In addition, GET taste very good with lemon flavor. Another difference is that GET is packaged in high quality bottles using PET technology and they are reusable.

Positioning The positioning of GET in consumers’ mind is a healthy product which supports energy to young consumers. Green tea is also a traditional drink in Vietnam and HTTP has made it more convenient to consume. In addition, the product has low price which is more affordable for everybody, especially young people. Marketing Program Product strategy Product line. Tan Hippie Path also provides a variety of green tea products such as free-sugar green tea, lemon green tea, honey green tea honey and lemon green tea, ND even prepare to launch green tea in box.

It has diversified the containers of original flavors such as producing lemon green tea in glass bottle, PET bottle and can to satisfy customer needs and wants. Unique product quality. Produced on modern Japanese technological production line with selected verdant leaves plucked out of tea plants on plains, green tea is able to keep its natural and pure flavor. Green tea is mad through hot extraction process in order to ensure food safety and hygiene standard and to detain precious essences of green tea. Zero Degree Green Tea has original flavors to satisfy consumer needs and increase customer value.

With nutritious element such as vitamins E, C, and especially EGG, a strong anti-dioxide element, green tea helps people to reduce stress, reinforce resistance, prevent skin ageing and cancer in order to cool down your body and spirit after a hardworking day or after a long trip. Furthermore, this products have light yellow color which is same color with nature tea and is not too much sweet. It makes consumers believe that this beverage is good for their health, although, people normally think that bottled and manned drink is harmful from color chemical and sweeteners.

It is very convenient to bring along Zero Degree Green Tea on trips, picnics, or in conferences… And sometimes simply drink it at home instead of purified water. Packaging. Its cover are designed finely because green color on it makes consumers feel fresh and friendly with the environment. It is also eye-catching and distinguished from other competitors’ products. With the use of heat-resisting mall PET bottle, the choice of trade mark logo (two circles), and green tea bears high aesthetic value under the sponsorship of Number One trademark.

Its cover are designed finely because green color on it makes consumers feel fresh and friendly with the environment. It is also eye-catching and distinguished from other competitors’ products. Price strategy Since Tan Hippie Path group explored the bottled green tea market in the early of 2006 and achieved success, this market has become an exciting” playground” with a lot of participants such as CO, Green tea 100 and Lipton green tea. In that situation, Tan Hippie Path used the advantage of “first-mover” in green tea market in order to apply skimming pricing strategy to Zero Degree Green Tea.

It means that Tan Hippie Path sets the price which was 20 % more than the others beverage. However, customers still accepted and were willing to buy the product with that price because it was still consistent with Vietnamese standard of living at that time. PET bottle Zero degree green tea Green tea 100 Lipton pure green tea some VEND 7,500 VEND 6800 mall VEND 5,500 mall VEND 6,000 Figure 2: Retail price comparison of RED green tea 2011 in Vietnam Although the price of zero degree green tea is higher than others, the customers really desiring the product are willing to pay.

These people are not very price sensitive because they usually concern more about the quality of the product. When the company sets the higher price compared to the competitors, the customers think that the quality of product is higher than others, too. Tan Hippie Path grasped clients’ psychology which most consumers believe that the high price is the good quality. This is one of the factors contributing to the success of this product. However, nowadays, the green tea market becomes more and more competitive with a lot of new brands penetrating the market such as Tea Plus, Fresh, Wonderland and Thin Tar.

The customers have ore comparisons about price and quality between the different brands to choose the best product for themselves. Therefore, Tan Hippie Path does not concentrate on skimming price strategy as the first time. The price of Zero Degree green Tea at the moment is medium compared to the other brands in the bottled green tea market. However, within the advantage of “first mover”, Zero Degree Green Tea has been known and believed in high quality and healthy product, so customer behavior does not change significantly in purchasing decision making.

Moreover, setting the medium price is also another advantage of this product in today’s market because he company can prevent some brands from entering the market. If Tan Hippie Path still keeps high price as the first time, this makes lots of chances for the other brands entering the market by setting lower price but also ensuring to earn profit. Promotion strategy Zero Degree Green Tea is the first ready-to-drink tea in the market of Vietnam. By understanding consumer’s psychology, it had a high position in the consumer’s perception. However, today the market has a lot of substitute products.

Facing this risk, it should focus more on promotion strategic to attract consumer. Tan Hippie Path articulated on activities sponsored in many different fields such as: sports, arts and culture-social activities. Whether being charities donation or trade the item are not out the main purpose for the consumer that is make consumer know about the product and its brand. In the year later, Tan Hippie Path was standing in the top 10 businesses spent on advertising in Vietnam. The most activities are funded biggest like brands for health care, such as: green tea, Barley tea.

Advertising. The media which was used in advertising of Zero Degree Green Tea was variety such as newspapers, magazines, televisions and outdoor advertisement. Zero Degree Green Tea has creative advertisement, which has been broadcasting in popular channels like WV, TV and Vietnamese cable TV like ACTS, heal, Lets Viet, yang TV, ACTS. Target customers is people who concerned with health and nutrition so their advertisement concentrated on delivering the idea that Zero Degree Green Tea is able to keep tea’s natural and pure flavor.

Print Advertisement was posted on almost newspapers such as Auto tree (Youth), Than nine, The gigs pH nu (Women’s World), Tip HTH gig Dinah (Marketing family). Advertising campaigns about utilities and benefits of Zero Degree Green Tea which were posted 1 time/week in 3/2006, is presented in the newspapers and magazines. There are several bus stations in which Zero Degree Green Tea puts their advertising panels. Painting advertising on the buses is also the best way for attracting consumer. Moreover, people possibly notice on those advertisements and try to drink Zero Degree Green Tea.

They use tools to support sales such as promotions, consumer sampling, sampling route, display products, posters, billboards, organize event to increase brand perception for consumers. Internet is the quickest and shortest way to deliver information to any consumer. Their own website which is updated regularly. They also use social network such as backbone which is crowned with young people in community network. In some popular websites for specific group of people (zing. Van, heal . Com, yang. Net), Zero Degree Green Tea puts their animated banner to display attractively their product.

Publicity and Public Relations. In the economy’s situation today, advertising is declined gradually and abdicated for PR then raising activities and the creation of corporate value are not only in the quality of product, but also the brand’s image associated tit the community activities. Tan Hippie Path considered this as a principle of its business operations. Zero Degree Green Tea’s brand associated with sports activities, typical is ‘Student contest: Literature – Fitness -Art 2012 U – League’ (Hoi HTH sins vine Van-The-My 2012 U-League).

Besides the programs funded to the health care of community that were done by Tan Hippie Path such as ‘Day for blood glucose testing and caring diabetes patients’ (Nagy hoi HTH dung yet VA sham Soc been Nan dad that dung); TV Program ‘For the quality of life’ (Vi chat lung choc song) aired on HTTP. The meaningful of community activities have asserted Tan Hippie Pat’s brand increasingly not only production, good business but also serving the community benefits. Tan Hippie Path Group and music channels Hanta signed cooperation within two years from 9/9/2009.

Because their customers are young people and with the same goal which is bringing quality products to consumers, the cooperation between the two sides will support each other in business expansion and exploitation market potential and advertising two brands. Tan Hippie Path got many certifications such as Vietnamese flag of Ministry of Labor, Invalids and Social Affairs’ Unit Emulation excellent work of occupational safety and health in 2006 (03/17/2007); certificate of famous Brand country (26/04/2008); -ran Hippie Path received Vietnamese’ Gold Star Medals, honoring businesses WTFO, Vietnam Dragon Symbol (30/0112010).

These prizes and certifications are recognition of government and community about product’s quality. Sales promotion. Tan Hippie Path had many promotion’s methods such as discount for buying block, lucky prices, promotions in supermarkets and other retailers to applying for consumers. They organized a lot of activities to promote and deliver their product. For example, promotion program ‘Fun spring, torn label, winning gold’ (Year of the Dragon 2012); Zero Degree Green Tea-life moments cooling-Khan shack gigs intent choc song (2012); Zero Degree Green Tea- smile spread-Nu quoi Ian too.

Goal of this event is creating opportunities for people to laugh with all people in Vietnam and spread the spirit of optimism, love of life to other people, discover the power of smile. In addition, Tan Hippie Path also held mini- contests for community networks on fan page of Zero Degree Green Tea. Game- shows were taken place every week with attractive gifts. On the occasion of holidays, hey were a sponsor for the promotion of the discount programs of Big C supermarket, Co-pop mart, Metro to stimulate consumption on last year’s holidays.

Personal selling. Main orientation of Zero Degree Green Tea is most concerned with agency. In the mature stage of the product life cycle should not promote this tool. Because of customers and distributors were aware of product’s brand in market. Primarily based on advertising to inform, persuade and remind customers. Direct marketing. The company will directly promote their product to targeted customer and improve brand awareness as well. Tan Hippie Path has always focused on tools of discount for sales to wholesalers and retailers.

Promote policies and programs as well as support sales and promotions to attract and retain the principal agents. Promotion cost. Nowadays, Zero Degree Green Tea is high in position in the product life cycle. Advertising campaign in favor of psychology attained good results in building images of a natural product, beneficial health, bringing fresh feeling fresh, cool. At the same time, awareness of the tea’s benefits for consumers is quite high (over 50 %), besides that the Joining of another brands such as CO, Fresh, tea plus, hat also contributes to increasing competition in the market.

Advertisements are not only introducing the product but also its purpose is increasing revenue and profit. However, depending on the life cycle of products that promotions have a certain goal, Zero Degree Green Tea of Tan Hippie Path is on saturated stage of the life cycle of product while rivals the brand’s market share is quite Vietnam large, each brand launching different strategies to attract customers. It leads to market which is influenced by many factors detrimental to business so at this time, the primary objective of business is strategy to compete with rivals and large market shares.

Therefore budget planning which is suitable for promotional activities will contribute to the success goals. Figure 3: The promotion cost and revenue of Zero Degree Green Tea over the period of life cycle product At the present, the bottled green tea market share is full, Zero Degree Green Tea has to compete more drastically with other opponent. Tap Hippie Path was assessed one of five companies having the highest promotion cost in 2009. Specifically, promotion cost increased 3 times at that time, while other competitor’s figures were quite small

Our Mission We improve the lives of others by creating healthy, active cultures. Our Values We practice and influence living a healthy, active lifestyle We thrive as a team culture We recognize our teams for their contributions We create strong relationships with everyone we serve We demonstrate trust, respect, and integrity in all that we do We encourage ideas, creativity, and open communication http:,’/’. NP. N. r;. N’. Featherbedding’s.

Studded. Com. Retrieved 08, 2007, from http://www. Studded. Com/essays/La-Fitness-Marketing-Plan-Phase- lit-119375. HTML http://www. Fuggy. Com/ Training benefits are segmented to fighting type physical fitness business. Age range from 16 to 36 years of age. The regular life cycle off professional fighter is 20-30 years of age. The mission statement and values is focused on personnel training benefits and outfit. No mention of improvement of community or serving any other segment for this business. This is a different type of marketing and segment Argentina.

Benefit Segmentation: Usage: Loyalty Status: Multiple Segmentation Bases: IF Young Accumulators – Kids & Cul-De-sacs (25-44 ages) IF Sustaining Families – Big City Blues (35 and Up) Yell Midlife Success – Bribe Elites, Ill City (55 and Up) MM Conservation Classics – Gray Power (65 and Up) Nielsen PRIZE system. The colorful names help to bring the segments to life. American households based on a host of demographic factors such as age, educational level, income, occupation, family composition, ethnicity and housing and behavioral and lifestyle factors.

Special thanks to the following people who contributed for the completion of this study. To our adviser Proof. Amharic F. Floors who guided and introduce us the course of the study. Sir Jerome Icy, the owner of Adobe Connection for being humble and for generously providing the necessary information we needed. Our parents and guardian, who supported, encourage and understand us throughout our study. And most especially our Creator, who empowered us to strive and never give up and to do what is the “best” and not what is only to be “done”.

I Executive Summary The 2013 Marketing Plan of Adobe Connection chain of restaurants outlines an approach in sales promotion as a newly established restaurant in Metro Manila and to sustain in the preceding years of business. Since the establishment couldn’t afford commercial advertisement, we believe that providing leaflets and other kinds of cheaper advertisement as our sales promotion. To sustain in the preceding years, a product diversification for a new target market is our proposal. The sales target are roughly around P 500, 000, 000 for next year or a 5% projected increase in sales.

Established by a Harvard Business School graduate, Mr.. Jerome Icy, Adobe Connection is a chain of restaurants that showcase the food and feeling of the Filipino home to everyone. Having around P 5,000, 000 as an initial capital, the first store was opened in November 2010 in Maxima. Backed by the same team that won the Best Foreign Franchise in the 2009 Entrepreneur Franchising Awards, Adobe Connection is now one of the fastest-growing Filipino franchises having 40 stores in Metro Manila and another 9 stores soon-to-open. A. Company Marketing Organizational Chart B.

Coca-Cola Company Marketing Plan [pic] Vanessa Lyle April 4th, 2010 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 8,688,300 people (targeted) with a forecasted sales growth prospect of 7. 3% over the next 4 years ($243,029. 47 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. Export potential will be considered in China.

Mission Statement/Objective The Coca-Cola Company’s core undertaking is to benefit and refresh everyone it reaches. 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. Introduction Bubble Buzz” 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 (passion fruit, strawberry and lime) as well as tapioca pearls. 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.

Objectives The objectives for the first three years of operation include: 1. To create a service-based company whose primary goal is to exceed customer’s expectations 2. To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals. 3. To develop a sustainable financial management company that generates value for their customers. 4. To stay at the forefront as the market leader in innovative product introductions and successful product launches 5.

To strengthen and satisfy the needs of the more adventurous Generation Y consumers with a new eye-catching and FUNctional product. 6. To become the market leader in the functional drinks segment with increased market Situation Analysis Industry Analysis Consumption: The sales volume for the functional drinks segment (ref. D2) in Canada has reached $342. 2 million in 2004 for a volume of 125. 9 million liters (ref. 2). This product segment has shown a steady growth since 1999: an increase of 13. 5% over a period of 6 years. The consumption rate per capita in 2004 has reached 3. 4 liters, which represents a 4. 0% increase compared to 1999 (ref. 3). 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. Coca-Cola and Pepsi responded by expanding their offerings through alliances (e. g. Coke & Nestea) and acquisitions (e. g. Coke & Minute Maid), but also by focusing efforts on portfolio diversification.

Today, while the soft drink industry’s value has increased in 2004, the volume sales of carbonated soft drinks has declined due to a large proportion of consumers who are opting for the trend towards healthier alternatives in the functional drink segment (energy drinks, smoothies, milk & juice drinks, sports drinks) as well as bottled juices and water (ref. 5). Companies have been actively engaged in new product developments in order to counter the growing concerns about negative health impacts of high-fructose drinks, but also to increase the demand in a market where product offerings are quickly maturing (ref. ). New flavor introductions and health-conscious formulations have been launched in an attempt to offset the decline in carbonated soft drink sales (ref. 6). The functional market is expected to show sustained growth and consumer interest in the future years as consumption shifts to trendier, healthier and more sophisticated products (ref. 7). Profitability & future growth potential: In 1993, Concentrate Producers earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14%.

While the functional drinks sector only accounts for 3. 7% of the total soft drinks sales in 2004 (Appendix B), estimates are forecasting a growth of 7. 3% in sales and 11. 0% in volume consumption by 2009 (ref. 4). Social and cultural factors Since the Coca-Cola Company extends to over 200 countries (with headquarters located in Atlanta, Georgia), they have an immense need to diversify their products and create a marketing plan that meets the socio-cultural interests of all their customers (vendors) and consumers (drinkers) around the world.

The Coca- Cola trademark is recognized worldwide, no matter what language is printed on the bottle. However, the Coca-Cola Company must continue to tailor their marketing plan and product development to respect each consumer’s unique values, beliefs and cultures. An example of the Coca-Cola Company adapting to the external socio-cultural environment is in 2007, the Coca-Cola Company received a silver award at the Iberoamerican Advertising Festival for their “Levate la Mano” (Raise Your Hand) commercial that was aired in Latin

America (2007 Annual Report: Marketing Highlights). Coca-Cola has also created a unique formulation for Sprite sold in Japan to meet the cultural preferences (p. 114). Social factors have been carefully considered in the company’s marketing plan. The Coca-Cola Company has successfully developed products to please the 21st century’s health-conscious consumer with brands like Coca-Cola Zero (their best selling brand in over 25 years), sports drinks, and bottled water.

Coca-Cola must continue to adapt to the external environmental threat of the healthy lifestyle movement through product development and marketing of healthy options available. Demographics The primary target market of the Coca-Cola Company is all consumers of all nations that have a thirst for a high-quality beverage from a reputable brand that cares about small communities and saving the environment. The Coca-Cola Company is well known for advertising to persons of all ages, genders, incomes, ethnicity and lifestyles.

Nevertheless, more specifically, over the last decade the Coca-Cola Company has focused on a secondary target market, based on specific psycho-graphic characteristics, of consumers that are health conscious and interested in buying products to support their overall wellness. The Coca-Cola Company has reached this market through many product lines, and has customized their website to provide healthy resources and marketing of products that are considered smart choices. Economic and business conditions The United States is currently experiencing an economic recession.

This period of negative growth includes higher unemployment, inflation, and cost of living expenses while consumers are experiencing lower disposable income and purchasing power (p. 641). The Coca-Cola Company contracts with numerous bottling companies around the world to create and distribute their beverages. The weakened economy could have a negative impact on any of the bottling companies, which would threaten the stability of the Coca-Cola Company due to the dependent relationship. The Coca-Cola Company must be profitable in order to sustain their investment in communities around the world.

Furthermore, small communities depend on large businesses like the Coca-Cola Company to strengthen their own economy and help create social and environmental programs. The Coca-Cola Company has been very successful in helping other nations grow and become economically stable by investing millions of dollars back into the countries in which they are operating. State of Technology In today’s marketplace, technology is a key player in helping a business stay profitable. Large businesses, like the Coca-Cola Company, must invest in technological research to find ways to become more efficient, and ultimately better competitors.

The Coca-Cola Company should address external technological threats by investing directly in applied research to improve recording and monitoring of the sales, production and delivery process between the Coca-Cola Company and the bottling companies (p. 90). Politics There are not any legal factors affecting the marketing of this product. Laws and Regulations Legal factors that could pose an environmental threat to the Coca-Cola Company include new legislation or regulation of food and beverage products. Activists are trying to push for more government involvement in product advertising and labeling.

While many laws have already been passed in this regard, expanded or new laws could threaten the company by creating more overhead expenses and decreasing the profit margin. Neutral Environment Financial Environment The United States is currently experiencing an economic recession. This period of negative growth includes higher unemployment, inflation, and cost of living expenses while consumers are experiencing lower disposable income and purchasing power (p. 641). The Coca-Cola Company contracts with numerous bottling companies around the world to create and distribute their beverages.

The weakened economy could have a negative impact on any of the bottling companies, which would threaten the stability of the Coca-Cola Company due to the dependent relationship. The Coca-Cola Company must be profitable in order to sustain their investment in communities around the world. Furthermore, small communities depend on large businesses like the Coca-Cola Company to strengthen their own economy and help create social and environmental programs. Government Environment The state and federal legislature are affecting marketing of this product.

The fight of obesity has been an ongoing battle for years. Since President Barack Obama took office, that fight has come to a head more than ever before. Schools are starting to not serve soft drinks to their students and consumers are starting to become more health conscious. The sales in soft drinks have not been affected significantly, but with time, Coca-Cola and other soft drink corporations could feel the pinch from the “get healthy” movement. Media Environment Current media publicity for Coca-Cola is indeed mixed.

Most commercials for Coca-Cola are cute, fun, and market the product to be a social party starter or a family conversation piece. There are a number of business articles that discuss how much of a positive affect the Coca-Cola Corporation helps the environment, whether that is giving money to environmentally friendly charities, encouraging recycling, or having a company fundraiser. Some of the negative attention comes from the government being concerned with the amount of carbonated soft drinks that are being consumed by not only children but adults as well.

The obesity rate is unsettling and Coca-Cola, along with many other soft drink companies, is taking some of the blame. Special Interest Environment Consumer tastes and needs are ever changing. With the new focus on health and nutrition and concerns with obesity, many consumers are changing their behaviors and product choices. Tea products, bottled water and energy drinks have become favored as opposed to the typical soft drink. This is an external threat to the Coca-Cola Company, as these changes in preferences have increased the number of competitors in the industry.

The Coca-Cola Company is not only in competition with soft drink companies, like PepsiCo, Inc. , but with other unassuming companies like Unilever, Kraft Foods, and Nestle. The Coca-Cola Company must continue aggressive efforts in responsible marketing, community investment and product development to hold the No. 1 place in sales of juice, ready-to-drink coffees, and teas. Competitor Environment Coca-Cola’s main competitors are PepsiCo, Inc and Dr. Pepper Snapple Group, Inc. ”PepsiCo, Inc. manufactures, markets, and sells various snacks, carbonated and non-carbonated beverages, and foods worldwide.

Its PepsiCo Americas Foods unit offers salty and sweet snacks comprising Lays potato chips, Doritos tortilla chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, branded dips, Fritos corn chips, Ruffles potato chips, Quaker Chewy granola bars, SunChips multigrain snacks, Rold Gold pretzels, Santitas tortilla chips, Frito-Lay nuts, Grandma’s cookies, Gamesa cookies, Munchies snack mix, Funyuns onion flavored rings, Quaker Quakes corn and rice snacks, Sabritas snacks, Miss Vickie’s potato chips, Stacy’s pita chips, Smartfood popcorn, Chester’s fries, and branded crackers.

This unit also provides cereals, rice, pasta, and other branded products, including Quaker oatmeal, Aunt Jemima mixes and syrups, Quaker grits, Cap’n Crunch cereal, Life cereal, Rice-A-Roni, Pasta Roni, and Near East side dishes. The company’s PepsiCo Americas Beverages unit sells beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mountain Dew, Gatorade, 7UP, Tropicana Pure Premium, Sierra Mist, Mirinda, Tropicana juice drinks, Propel, Dole, Amp Energy, SoBe Lifewater, Naked juice, and Izze beverage names.

This unit also offers ready-to-drink tea, coffee, and water products through joint ventures with Unilever and Starbucks, as well as licenses the Aquafina water brand to its bottlers. The company’s PepsiCo International unit offers salty and sweet snack brands, including Lay’s, Walkers, Doritos, Cheetos, Ruffles, and Smith’s; Quaker brand cereals and snacks; and beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mirinda, Mountain Dew, 7UP, and Tropicana names. PepsiCo, Inc. istributes its products through direct-store-delivery, customer warehouse, and food service and vending distribution networks. ” (PepsiCo, Inc 2009) “PepsiCo’s mission is to be the world’s premier consumer Products Company focused on convenient foods and beverages. They seek to produce financial rewards to investors as they provide opportunities for growth and enrichment to employees, business partners and the communities in which they operate. “PepsiCo’s responsibility is to continually improve all aspects of the world in which they operate – environment, social, economic – creating a better tomorrow than today.

Their vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company. They are also committed to achieving business and financial success while leaving a positive imprint on society. “(PepsiCo, Inc 2010) “Dr Pepper Snapple Group is the third-largest refreshment beverage business in North America, headquartered in Plano, Texas. The company manufactures markets and istributes more than 50 brands of carbonated soft drinks, juices; ready to drink teas, mixers and other premium beverages across the United States, Canada, Mexico and the Caribbean. With a brand heritage pning more than 200 years, the DPS portfolio includes some of the most recognized beverages in the Americas. In addition to its flagship Dr Pepper and Snapple brands, the DPS portfolio includes 7UP, Mott’s, A, Sunkist soda, Hawaiian Punch, Canada Dry, Schweppes, RC Cola, Diet Rite, Squirt, Penafiel, Yoo-hoo, Rose’s, Clamato, Mr. & Mrs.

T and other well-known consumer favorites. Dr Pepper Snapple Group was established in 2008 following the spin-off of Cadbury Schweppes Americas Beverages (CSAB) from Cadbury Schweppes plc. CSAB had formed in 2003 by bringing together Cadbury Schweppes’ four North American beverages businesses, Dr Pepper/Seven Up Inc. , Snapple Beverage Group, Mott’s LLP, and Bebidas Mexico, unifying these businesses under a common vision, strategy and management structure and cementing the company’s position as the third-largest refreshment beverage business in North America.

In 2006, the company reached another milestone with the acquisition of Dr Pepper/Seven-Up Bottling Group, the largest independent bottler in the United States. These moves, and several subsequent bottling business acquisitions, have made Dr Pepper Snapple Group what it is today: an integrated beverage business with nearly $6 billion in annual revenues, approximately 20,000 employees, 24 manufacturing facilities and more than 200 distribution centers across North America. ” (Dr. Pepper Snapple Group, 2010). Our competitors market through the same channels as Coca-Cola.

Through commercials, print ads, billboards, sporting events, facebook, MySpace, and various other networking groups. Some of our strengths as a company are we have brand strength, effective stride in new markets, results of operations, and strong existing distribution channels. Some of our weaknesses are we are reliant upon line extensions, reliant upon particular carbonated drinks, brand dilution, and saturation of carbonated soft drink segments. The Company Environment The products of Coca-Cola are carbonated soft drinks that are sold in stores, vending machines, and restaurants.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these is Diet Coke, with others including Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with lemon, lime or coffee. One of Coca-Cola’s strength’s is that it is the number one soft drink company in the world. It is sold in over 200 countries around the globe. Its logo is one the most recognized company logos, and their advertising campaigns, especially their Christmas campaigns, are very successful for the company.

They have been operating for over a century; However, Coca-Cola has had its fair share of controversy. One of the bigger controversies, and definitely a weakness, would be that Coca-Cola has been criticized for alleged adverse health effects and its aggressive marketing to children. In response to consumer insistence on a more natural product, the company is in the process of phasing out E211, or sodium benzoate, the controversial additive used in Diet Coke and linked to DNA damage in yeast cells and hyperactivity in children.

The company has stated that it plans to remove E211 from its other products, including Sprite and Oasis, as soon as a satisfactory alternative is found. The Target Market When it comes to the consumer market, Coca-Cola has a very broad market base. The company focuses its efforts on many different people. Coke’s core business, which has been carbonated beverages, has been targeting a large audience of soft drink consumers. Throughout history, the company has targeted many generations of people. The ages of these people has ranged from young to old.

Coke has always been known as a classic, which has appealed to the older audience. Lately the company has tried a fresher new image to reach to the younger generation Y group. For the Coke Company, there is a need for them to focus on certain demographical characteristics of the population. The characteristics they must consider include: age, income, and family. The other demographic considerations such as, education and ethnicity are not as large of a concern. When we look at age, the company tries to keep their image hip and ool to appeal to younger generation Y people, but also target the older generations by keeping the classic coca-cola image. Since age has a large impact on income, it would be expected that this would be an issue for the company. This is not necessarily true. The products they offer are affordable for most people, even young teens with out a job relying on parents. This brings us to the idea of targeting different family types. Since age is not necessarily prohibiting, family differences should not hurt the sales of their products, but only help it because of the appeal to most people.

It does not matter if you are single, married with no children, or even married with children. Their products are suited for all people. In Coca-Cola news they tell us that they are working on efforts to, “develop new drinks and to market juices, coffees, and teas…” (Coke, 2001) By implementing these changes, they are targeting parents of children for their juices, older people with coffees, and people who want a healthier alternative to carbonated beverages, with their teas. “While Coke’s core business will remain carbonated beverages…”according to Mr. Heyer, “we don’t want to be limited. (McKay) They are introducing the new drink products in this year and their main focus in on a, “unique new vitamin-fortified juice drink targeted to kids. ” (Coca-Cola, 2001) By doing this, the company is reaching parents on the benefits sought level by including healthy vitamins for their children. Also included in deciding a market for a product are geographical considerations, psychographic details, situation, and behavior/usage. Coke targets people throughout the world and of many different cultures. Because of this, their scope for geographical area is very broad.

Although they do advertise Coke as a refreshing beverage, which would be needed more in warmer climates. It would be unwise of me to assume that advertising is different in other, warmer, climates, but it would only make sense. They would need to target someone wanting to quench their thirst rather than just enjoy a beverage. The next consideration is psychographic detail such as attitude. This is brought about in many of their advertisements. The slogan, “Always Coca-Cola,” is used to take people back to the good old days when things were great.

With that memory in mind, people will purchase the beverage for the connection. This is not the only attitude the company wants to portray. Their recent commercials show young people having a good time and making new memories. The product is displayed as hip and fun. This brings me to the situation a person may go through to purchase a Coke. There are many different situations that purchasing a Coke would be appropriate. It may be one for yourself on a lunch break, or purchasing a large amount to accommodate the needs of guests you may have. Finally, there are behavior/usage characteristics to consider.

This is deciding if a person will purchase a Coke one time or many times. To keep the people purchasing many times, Coke must produce a quality product that someone will want the next time s/he is thirsty. Segment 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) – (ref. 11, p. 127).

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” (ref. 10), the trend towards the availability of on-the-go products for those with an active lifestyle, as well as the trend for personalization through customization (or for beverages, through variety-seeking in a wide introduction of flavors – ref. 6). Segment growth potential: Statistical reports anticipate a segment growth of 1. 72% over the next 9 years (2015) for the 10-29 years old subsets (ref. 12).

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. Problems and Opportunities Summary of Strengths and Weaknesses Coca-Cola has a strong brand name and brand portfolio. Business-Week and interbred, a branding consultancy, recognize Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006.

The Business-Week Interbred valued Coca-Cola at $67,000 million in 2006. Coca-Cola ranks well ahead of its close competitor Pepsi, which has a ranking of 22, has a brand value of $12,690 million. The company’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate markets. However, the company is threatened by intense competition which could have an adverse impact on the company’s market share. Strengths World’s Leading Brand A major strength of Coca-Cola is that it is the largest manufacturer, distributor, and marketer of nonalcoholic beverage concentrates and syrups in the world.

Coca-Cola is selling trademarked beverage products since the year of 1886 in the United States. The company currently sells its products in more than 200 countries. It owns or has interest in 37 operations with 95 principle beverage bottling and canning plants located outside the US. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures juice concentrates. Large Revenue Growth in three segments Coca-Cola’s revenues recorded a double digit growth, in three operating segments. These three segments are Latin America, East, South Asia, and Pacific Rim and Bottling investments.

Revenues from Latin America grew by 20. 4% during fiscal 2009. During the same period, revenues from the bottling investments segment grew by 19. 9%. Together, the three segments of Latin America, East, South Asia, and Pacific Rim bottling investments, accounted for 34. 8% of total revenues during fiscal 2009. Weaknesses Negative Publicity The company received negative publicity in India during September 2006. The company was accused by the Center of Science and Environment of selling products containing pesticide residues. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue.

These pesticides included chemicals which could cause cancers, damage the nervous system and reproductive systems and reduce bone mineral density. Such negative publicity could adversely impact the company’s brand image and the demand for Coke products. This could also have an adverse impact on the company’s growth prospects in the international markets. Sluggish Performance in North America Coca-Cola’s performance in North America was far from robust. North America is Coca-Cola’s main market generating about 30% of total revenues during fiscal 2009.

Therefore, a strong performance in North America is important for the company. In North America, the sale of unit cases did not record any growth. Unit case retail volume in North America decreased 1% primarily due to weak sparkling beverage trends in the second half of 2009 and decline in the warehouse-delivered water and juice businesses. Moreover, the company also expects performance in North America to be weak during 2010. Sluggish performance in North America could impact the company’s growth prospects and prevent Coca-Cola from recording more robust top-line growth.

Decline in Cash from Operating Activities The company’s cash flow from operating activities declined during fiscal 2008. Cash flows from operating activities decreased 7% in 2008 compared to 2007. Net cash provided by operating activities reached $5,957 million in 2008, from $6,423 million in 2007. Coca-Cola’s cash flows from operating activities also decreased compared with 2007 as a result of a contribution of approximately $216 million to a tax-qualified trust to fund retiree medical benefits. The decrease was also the result of certain marketing accruals recorded in 2006. Opportunities Acquisitions

For the past year, Coca-Cola has been aggressively adopting the inorganic growth path. During 2006, acquisitions included Kerry Beverages, which was subsequently, reappointed Coca-Cola China Industries. Coca-Cola acquired a controlling shareholding in KGL. The acquisition extended Coca-Cola’s control over manufacturing and distribution joint ventures in the nine Chinese provinces. In Germany, the company acquired Apollinaris which sells sparkling and still mineral water. Coca-Cola also made acquisitions of TJC Holdings, a bottling company in South Africa along with several deals in Australia and New Zealand.

This will give Coca-Cola an opportunity for growth through new product launches and greater penetration of existing markets. Growing Water Bottle Market Also, bottled water is one of the fastest-growing segments in the world’s food and beverage market owing to increasing health concerns. The market for bottled water in the US generated revenues of about $15. 6 billion in 2008. Market consumption volumes were estimated to be 30 billion liters in 2008. The market’s consumption volume is expected to rise to 38. 6 billion units by the end of 2010. This represents a CAGR of 6. % during 2005-2010. In terms of value, the bottled water market is forecast to reach $19. 3 billion by the end of 2010. In the bottled water market, the revenue of flavored water segment is growing by about $10 billion annually. The company’s Dasani brand water is the third best-selling bottled water in the US. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing demand for flavored water. Threats Intense Competition Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages industry.

The company faces intense competition in various markets from regional as well as global players. Also, the company faces competition from various nonalcoholic sparkling beverages including juices and nectars and fruit drinks. In many of the countries in which Coca-Cola operates, including the US, PepsiCo is one of the company’s primary competitors. Other significant competitors include Nestle, Cadbury Schweppes, and Kraft Foods. Competitive factors impacting the company’s business include pricing, advertising, sales promotion programs, product innovation, and brand and trademark development and protection.

Intense competition could impact Coca-Cola’s market share and revenue growth rates. Dependence on bottling partners Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in whom it doesn’t have any ownership interest or in which it has no controlling ownership interest. In 2008, approximately 83% of its worldwide unit case volumes were produced and distributed by bottling partners in which the company did not have any controlling interests. As independent companies, its bottling partners, some of whom are publicly traded companies, make their own usiness decisions that may not always be in line with the company’s interests. In addition, many of its bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies. If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners, then the partners may take actions that, while maximizing their own short-term profits, may be detrimental to Coca-Cola. These bottlers may devote more resources to business opportunities or products other than those beneficial for Coca-Cola.

Such actions could, in the long run, have an adverse effect on Coca-Cola’s profitability. In addition, loss of one or more of its major customers by any one of its major bottling partners could indirectly affect Coca-Cola’s business results. Such dependence on third parties is a weak link in Coca-Cola’s operations and increases the company’s business risks. Sluggish growth of carbonated beverages US consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious.

This has led to a decrease in the consumption of carbonated and other sweetened beverages in the US. The US carbonated soft drinks market generated total revenues of $63. 9 billion in 2008, this representing a compound annual growth rate (CAGR) of only 0. 2% for the five-year period pning 2004-2009. The performance of the market is forecast to decelerate, with an anticipated compound annual rate of change (CAGR) of -0. 3% for the five-year period 2004-2009 expected to drive the market to a value of $62. 9 billion by the end of 2010.

Moreover in the recent years, beverage companies such as Coca-Cola have been criticized for selling carbonated beverages with high amounts of sugar and unacceptable levels of dangerous chemical content, and have been implicated for facilitating poor diet and increasing childhood obesity. Moreover, the US is the company’s core market. Coca-Cola already expects its performance in the region to be sluggish during 2007. Coca-Cola’s revenues could be adversely affected by a slowdown in the US carbonated beverage market. Solutions Intense Competition

There is not much that can be done about the competition that plagues Coca-Cola. One way that I suggest for Coca-Cola to stand out is to continue to lend their brand image to such shows as American Idol and such companies as AMC Theatre. Also, continue to have the already successful Christmas Polar Bear Commercial Campaign. Dependence on Bottling Companies I was quite surprised to read that Coca-Cola still relies on other bottling companies to help create their product. By being such a world-wide, well known company, you would think that Coca-Cola would have their own manufacturing plants.

This may be something that Coca-Cola may want to look it. It would cut down the cost of production because then instead of paying another company to bottle your product and ship it out, Coca-Cola themselves could have the control and this could save millions of dollars a year. Sluggish Growth of Carbonated Beverages Instead of just being a well known soft drink company, Coca-Cola could expand their products. They do already have teas, water, and flavored water as products but they are not as widely advertised as the Coke itself.

Spending more money to advertise Snapple to be a great tasting and healthy tea or Dasani to be great calorie free water that comes in such flavors as Lemon and Raspberry could be a great way to also increase profit. Marketing Objectives and Goals Coca-Cola will produce a new product called “Bubble Buzz”. It 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 (passion fruit, strawberry and lime) as well as tapioca pearls.

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 Bubble Buzz for The Coca-Cola Company is centered on three objectives: • To stay at the forefront as the market leader in innovative product introductions and successful product launches; • To become the market leader in the functional drinks segment with increased market shares. To strengthen and satisfy the needs of the more adventurous Generation Y consumers with a new eye-catching and FUNctional product. Product Strategy The Core: Bubble Tea beverage in a pre-bottled, ready-to-drink format. Branding: Colorful, aspect of play, round shaped, prominent Bubble Buzz logo written in modern font, catchphrases such as “Think outside the Bubble” and “Get Your Buzz”. Trade name: Bubble Buzz™, a Coca-Cola product Brand personality: energy, funky, cool, functional, original, funny, healthy, etc. Brand equity: Coca-Cola provides a quality, consistent, innovative and accessible soft drink reputation.

Augmented product: Nutritional information, Status (social drink), Features promoting the website, Health benefit of a green tea base (ref. 17) Marketing considerations 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” (ref. 11, p. 301). 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. Product class: Food & beverage, Soft Drinks, Functional Drinks

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.

To be able to implement higher pricing though, the minimization of the non-monetary costs to customers should also be include along with awareness of the product (notably by advertising) and value (benefits). The product life-cycle The 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.

Promotion Strategy: Objectives: • To initiate strong awareness about the launch of Bubble Buzz throughout Generation Y (10-29 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 old, 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 Generation Y consumers only give partial attention to media. However, they can be reached through integrated programs. They are typically using more than onecommunication media at a time; a behavior that is often called “multitasking”. 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 Generation Y by using a variety of targeted promotional tools. Another important tactic to reach our target market is through “Viral” or “Buzz” marketing, which Coca-Cola will heavily use in this campaign (campus, contests). Television:MTV, Much Music, VrakTV, YTV Radio:MIX96, CKOI 96. 9, 94. 7 FM, Universities Magazines for girls: Cosmo, Elle Magazines for boys: Sports Illustrated (or Kids edition) Internet:Banners on select websites (gaming, sports, etc. ) Official promotional website: www. BubbleBuzz. ca

Outdoors:Billboards and prints in select areas including: • Campuses, transportation (bus, metro, stations) • Tourist areas in high seasonal periods • Outskirts of key cities in geographical reach Promotional Mix: Consumer oriented: Contests: “Win another Bubble Buzz flavor”, “Uncover a secret code underneath the bottle cap and win sporting goods and electronics by logging on the website”, “Win a trip for the 2008 Olympics in Beijing”. (Arguments: It will increase consumer purchases and encourage consumer involvement with the product).

Samples: distributed in supermarkets, school/universities. Samples are a way to avoid product resistance since people are not used to find bubbles in their drinks. Arguments: It will encourage new product purchases and it represents low risk for consumers since they get it for free. They have nothing to lose by trying it. Point-of-purchase: in supermarkets (to reach the parents of generation Y). Arguments: It is also a mean to increase product trial and provides a good product visibility. Others: In subsequent years, engage in product placement in TV shows or movies.

Trade oriented: Allowances and discounts: case allowance (Arguments: The “free goods” approach will be used so it can encourage retailers to buy more of the product to get a certain amount for free). Cooperative advertising: to encourage retailers to buy our product and to maintain our high level of advertisement that consumers expect from Coca-Cola. 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. Financial Projections

Requirement for success analysis: C. M. per bottle = 382,159. 36 / 328,000 = $1. 17 Break-even: (113,453. 56+25,676. 33) / 1. 17 = 118,914 (bottles) Market share: 118,914 / 1,000,000 = 11. 9% In one year, if Coca-cola can sell 118,914 bottles of Bubble Buzz, or in other words achieve 11. 9% of the functional drink market share, it will break even. After this point, every bottle Coca cola sells will generate average $1. 17 towards the profits. The potential profits can up to $1,030,770. 00 based on our target market. Expected Costs: COGS: $597,124 * 36% = $214,964. 64O/H: $597,124* 38% = $226,907. 2 Expected Revenues (total) = $597,124 China is the target country we’re going to expand our product. Reasons: 1. With a total population of 1,313,015,000 in the end of 2008 and 327,714,000 in our target market (age 10 to 25 years old), compared with the total population of Canada—304,453 million, there definitely is a great potential worth to work on. 2. Absolute expenditure on food and non-alcoholic beverages is expected to increase from 1,777 billion in 2005 to 2,154 billion in 2010 (though the proportion of consumer expenditure on this part is decreasing from 28. 39% to 25. 75% ) 3.

Soft drinks industry is one of the fast growing industries in China, especially fruit/vegetable juice, RTD tea, and Asian specialty drinks and bottled water have shown a sharp increase during 1998 to 2003. 4. Bubble tea was originated in Taiwan. Soon after its introduction in China, it became one of the most popular beverages sold in tea stores on the streets due to the similar taste and similar cultural background. So, it is a good chance for us to enter into this market. 5. Since we are the top sponsor for the upcoming Beijing Olympic in 2008. With more opportunities to expose to the public, it is going to benefit our sale there.

Our entry-strategy for entering China is through licensing. Reasons: 1. We have already provided licenses for manufacturing our products in China (licensing the bottlers and supply them with our syrup required for producing). Therefore, added in one or two more products in our production chain would not be that difficult. 2. It is relatively low risk when compared with direct investment there. It is low cost to export our new products there since we can maintain lower labor cost and lower material cost if we produce our products locally, especially in China. Changes to be made: 1.

Price: Price sold in China is going to change to accommodate the local desire. As we set our price sold in Canada $2. 00. Compared to the price sold in the bubble tea store ($ 3. 50), it is about 57. 14%. So, with the information we gathered from the tea store in China, the price sold there would be 57. 14% of what sold in the tea store—$12 Yuen in China currency. Then, it would be around $7 Yuen. 2. Naming the product: In order to be recognized and accepted more easily for the local market, we need not only translate our product name but also make sure there’s not hidden unintended meaning that would damage our product. 3.

Develop other flavors that would attract the local market: Since milk based bubble tea sell better in China, we will add in this product line. Also, we will avoid using too many artificial colors as they are not appreciated as much as in Canada. Moreover, people in China are becoming more and more health concerned, especially the amount of sugar and additives added in the drinks. We will make some changes in the ingredients used to appeal the local market, i. e. less sugary drinks. 3. Promotion: In contrast to the radio ads in Canada, we will use more TV and Web advertisement there due to the highly exposed environment in China.

Also, we will put more emphasis on the ads on the public transportation such as underground/subway system and bus service due to the more frequent use of the public transport service there. Also, since the outdoor display screen is quite popular in big cities, we will also take advantage of it. Implementation Plan [pic] Graph helped prepared by Dr. Thomas Grooms and Jon Shook METHODOLOGY Sample The concept is to find out if the respondents are willing to try a new green tea/fruit juice infusion that is made by the Coca-Cola brand.

As a methodology, it can be applied to deepen a Marketers’ understanding of brand loyalty while explaining the opinions, influences and attitudes that lies behind the respondents’ opinion about a brand, the product and the reason behind the purchase. The specific questions work in conjunction with the background of the typologies to enable a rich understanding of purchasing decisions and explain opinions based on the reason the respondent will continue to purchase a brand. Core Aspects • Focus on the key demographic of 17 years and older Features Surrounding Areas– Killeen, Fort Hood, Cedar Hill, Garland, and Dallas, Texas • A series of both qualitative and quantitative questions • Every respondent can put theory input ideas and research themes into the qualitative topic guides, therefore enabling specific findings from each respondent. The Background and Development The methodology was designed through a combination of vast amounts of qualitative research and quantitative representation across 100 consumers. There is no prearranged plan with how the methodology or typologies would be formed.

The primary philosophy was to find out if consumers were open to try a fruit juice flavored green tea. The idea was to create a method to determine what the respondents feel about green tea drinks in general and how they respond to new drinks on the market. The researchers goal was to map out the best way to reach the precise demographic in such a way that handles the issues of brand loyalty with complexity and fluidity to thoroughly explain the thinking of the respondents. The difficulty was that the respondents do not all think the same when purchasing a product nor do they all prefer to drink green tea.

Depending on the respondents’ beliefs and personal experiences with a brand or product, there are many opinions on the subject, The processes of the research were kept extremely open to all demographics to keep the idea of biased opinions under assumption. The beginning process is to pass out ten of survey instruments. The researcher asked the respondents if the questions were clearly worded and if there were any misspellings. The next stage of the research was to continue passing out the survey instruments to make sure a variety of opinions would be represented in the research.

The researcher also emailed the survey instruments, as well as telephoned different respondents who were willing to participate in the study. As always with quantitative studies, they formulated a series of theories and hypotheses that could be tested through a number of questions. The survey was then conducted across 100 respondents aged 17 or older who lived in the Dallas/Fort Worth area and other areas throughout the state of Texas. The study was then modeled with the data on the key variables of preferred drink of choice, preferred brand choice, health conscious drinks, and price.

Reliability and Validity The reliability and validity of brand loyalty is going to be understood. The reliability with the results will be proven in the findings section. For instances, each respondent wrote their exact opinion or the researcher wrote down word for word the respondents’ response. This provides the reliability of the research. The respondents were strictly voluntary and gave the most honest answers for the survey. The validity will be with the findings of the survey. This will better be exemplified with understanding on how the respondents answered to the survey.

Showing the reliability of the respondents’ answers and how they made the survey into their own. Biased Opinion When conducting the survey there were no biased opinions. To prove that there were no biased opinions the researcher numbered each of the surveys when received from the respondents. Obtaining the research in a non-biased form gives more reliability and validity to the research. The following section will examine the findings of the research about opinions on green tea and brand loyalty. It will be based upon the survey that was conducted and be analyzed.

The information is being tested from the hypotheses that were in the proposal. Findings In this chapter the findings will be introduced. The information is produced from the survey instruments that were given to one-hundred respondents. The information that will be given is to help prove or fault the hypotheses about green tea/fruit juice based drinks and the customer perception of Coca-Cola. The information will also test if there is a market for this new drink. Gender Q1: Are you…? The first question on the survey is the gender of the respondent. Asking are you male or female?

This question was important in conducting the survey because it helps to grasp understanding for the rest of the responses from the respondents. The genders that were surveyed by the researcher ended up being primarily female versus male. The graph below shows the actual percentage of the Male gender that took the survey of 33% and the female gender responding to the survey with 67%. [pic] The table above clearly shows the genders divided. One assumption that one could be speculated is that that there were more women than men surveyed because the women were more open to taking the survey. Age Q2: What is your age?

The reason this question was important in conducting the survey is to determine the age range that is being used. It was also used to determine how each age range differed on the answers that were given. Most respondents that were surveyed were between the ages of thirty six or older. The percentage of that age range is 40%. Even the second runner up was ages twenty six to thirty five and that range was not far behind with 30%. [pic] In the research the ages were for the most part all over the age of eighteen. The research that is concluded from the respondents is that most of them, if not all of them, are out of High School.

Income Q3: What is your total household income? This particular question of household income is vital because a household that makes $0-$10,000 will of course have a different outlook on purchasing a new Coca-Cola tea product versus a household with an income of $46,000 or more. [pic] Most of the respondents had a household income of $46,000 or more. The next highest income was $26,000 to $45,000. The one that had the least was $0 to $10,000. Q4: Have you been affected financially by the recession? This question was important because it gave the researcher an idea if price mattered to the respondent.

If the respondent was not affected by the recession, then the respondent probably would not mind spending the money to try a new product. [pic] The results were 67% of the respondents were not affected by the recession. This is a surprising amount of respondents who were not affected financially by the recession. Q5: Does Advertising influence your choice of brand when shopping? This was a vital question to the researcher because advertising is an important part of today’s society. Many are influenced by advertising and that helps them decide what products to purchase.

The researcher was curious to know if advertising influences the respondents shopping choices. [pic] The results were sixty-seven percent of the respondents were not influenced by advertising when choosing a brand. Only thirty three percent responded yes. Q6: Have you ever purchased a green tea product? This was one of the most vital questions of the survey. If the respondent had never purchased a green tea product then the survey was not as relevant to them as others. [pic] The results for this question were that 70% of the respondents had purchased a green tea product.

An overwhelming amount of the respondents had bought some kind of green tea product. Q7: Did the fact that green tea is advertised as healthy affect your decision to buy? This question is important in the survey because this is one to test the hypothesis. Without asking this question in the survey the hypothesis could not be tested and concluded with the findings. [pic] Participants in this survey prove that the hypothesis is true. The hypothesis stated, customers are swayed more to buy green tea because it is advertised as healthy. The respondents stated that they purchased the green tea because it was healthy for them.

Q8: Do you prefer to drink tea and/or juices over carbonated beverages? This was an important question because it plays a huge role in determining how open the respondent would be to purchasing a green tea product or if the respondent would alternatively look for another drink product to buy all together. [pic] As shown above in the chart, 67% of the respondents stated that they would consider buying the tea and/or juice drinks. 33% of the respondents said they would not consider a tea and/or juice drink. Q9: If you saw a green tea/fruit juice beverage made by Coca-Cola in the store would you be intrigued to buy it?

Question nine is another question that evaluates and tests one hypothesis. The hypothesis stated, the Coca-Cola brand alone would intrigue people to buy the new beverage. Due to the information conducted from the survey respondents felt that the Coca-Cola brand alone was not enough to interest them in buying the new beverage. 67% agreed with that statement. [pic] Respondents concluded through the survey that the Coca-Cola name alone does not make them want to buy the product. The findings in this section prove to be false when looking at the hypotheses. Q10: Do your friends or family influence your decisions on what brands you purchase?

This particular question was vital in the research to determine if purchasing decisions are based upon influence of friends and family. A lot of times a buying decision is made based upon the influence of a friend or family member. [pic] 67% of the respondents felt that their friends and family do not influence what brands they purchase. Q11: If you were sent a coupon to try a free sample of Bubble Fuzz Green tea would you pass up the opportunity? This question was asked to see if Coca-Cola marketed their product through direct mail coupons, would it be successful. pic] The results were 33% answered that they would use the coupon to sample the drink Bubble Fuzz. The 67% that checked no felt that they would just trash the coupon and not even use it. Q12: In today’s society, do you think it is considered “cool” to purchase and drink healthy beverages? Just like question number 11, this was more of an opinionated question to really understand how the respondents felt about how purchases of green tea play into social status. This is the main reason why this particular question was vital in conducting this study. [pic] 7% felt that purchasing a healthy drink does not play into a certain social status. 33% disagreed and felt that purchasing a drink does play into your social status. Q13: Do you think adding fruit juice to flavor the green tea will ruin the taste? This question was put in the survey to discover if the respondents felt that the fruit juice would ruin the authenticity of the green tea flavor. [pic] The findings to the question were 67% no and 33% yes. Most respondents, according to the survey, felt that adding the fruit juice would not ruin the flavor of the tea.

Q14: I believe that Coca-Cola could make a healthy, great tasting drink. The respondents answered the question and picked the number they felt most strong about in the survey. The respondents could choose from the following: 1-strongly disagree, 2-disagree, 3-neutral, 4-agree and 5-strongly agree. [pic] The results came to be with a mean (average) of 3. 54. Most respondents felt neutral with the statement that was given. The medium, which is the middle value reported with this statement as 4. The mode in this statement is 3 which gave most used value in this question of the survey.

Q15: I think that green tea is a great way to not only cleanse my body but my mind as well. Out of the one hundred respondents this statement was evaluated in a number order. The choices were: 1-strongly disagree, 2-disagree, 3-neutral, 4-agree and 5-strongly agree. The following were analyzed into mean, medium and mode. [pic] The results that were calculated with were the mean 3. 16. The medium resulted in 3, neutral. The mode calculated as a 3, neutral. Q16: Most healthy drinks do not have a great taste. The respondents answered the question and picked the number they felt most strong about in the survey.

The respondents could choose from the following: 1-strongly disagree, 2-disagree, 3-neutral, 4-agree and 5-strongly agree. [pic] The results came to be with a mean (average) of 3. 75. Most respondents felt they agreed with the statement that was given. The medium, which is the middle value reported with this statement as 4. The mode in this statement is 5 which gave the value of the most used in this question of the survey. Q17: Do you think that health conscious drinks are overpriced? If yes, why do you think this way? The following results are part of the qualitative section in the survey.

When reported, there were very different opinions that relate with many of the top results but had more elaboration. The results are arranged according to the survey number. If another respondent puts the same opinion or something similar, that survey number will appear next to the opinion stated. 1. Most healthy drinks are disgusting and expensive 2. No (5,7,9,10,11,. 12,13,14,16,17,19,20,21,22,24,25,31,40,42,44,45,47,48,49,51,52,53,54,56,57,58,59,66,67,72,73,77,78,81,82,83,84,85,86,87,88,89,90,91,92,93,94,97,98,99,100) 3. Yes, Gatorade is great for you and it tastes great. 4. Taste, quality, price, you can’t find that all in one. . No response (26,33,35,36,37) ‘ 8. No, you get what you pay for 15. No, price and quality are number one 18. No – I feel brands change over time so what is used today is different from the same product of yesterday-new, improved remember? 23. No, I buy what I like and get what I want to make me happy. I eat my feelings away. 27. I buy a certain brand because I’ve tried it and I like it. 28. Yes, some brands are better than others. 29. Some brands yes. 30. Yes 32. No, I buy what I like and can afford. 34. Yea 39. Yes 41. No, I buy because I like it 43. No I do not believe that. I enjoy finding good deals and using coupons. 5. Yes, but I don’t change my ways unless something forces me to. 50. Yes 55. Yes 60. I’ve worked out for years so I am used to the price and taste 61. No response (65,69,70,79,80,95) 62. Yes 63. Not really 64. Sometimes 68. Yes 71. I prefer to buy items that are expensive 74. Depends on the brand and the product. Some brands are better quality and value based on the research and work put into them 96. Sometimes depends on the price. Trust the brand name sometimes. Q18: Do you think that a green tea/fruit juice infused beverage would entice the younger crowd to purchase it?

The following results were given by the respondents. The findings or this qualitative question had diverse variety of results. The findings are reported with the first recorded with the highest number of the same result then followed by the rest. The results are arranged according to the survey number. If another respondent puts the same opinion or something similar, that survey number will appear next to the opinion stated. 1. No (1, 2, 8,10,14,19,46,52,55,56,57,66,70,82,83,84,85,86,87,88,89,92) 2. No, they should not be knocked off for some brands are just as good. It all depends on what it is you are a getting. . In some cases generic products may differ slightly but may still work for intended use. 4. No response (33,36,37,44,54,61,65,69,75,76,80,81,94,95) 5. No absolutely not. Kids drink more soft drink/sugary drinks then teas. 6. Maybe Kids now a days are not interested in being healthy 7. Yes, sounds like it tastes very good. (15, 16-18, 20-32, 45) 8. I think that kids should start drinking more healthy drinks and I think that it would make them buy it. 9. Yes 10. Depends on the price, kids today are broker then ever 11. Yea 12. My son would not even look at green tea just because he knows how green tea tastes. 3. Yes that is possible Findings Conclusion The findings were all resulted in a statistical analysis conducted from all 100 survey instruments. The results were each divided into a graph to give the reader a quick view of the findings. The findings gave the reader a broad understanding of what is people’s true opinion on the proposed drink Bubble Fuzz. Many respondents felt that green tea could be a stretch for advertising purposes, but with the health conscious society that we live in now, it could have a chance of succeeding. APPENDIX A REFERENCES 1. The Coca-Cola Co. (Company Profile).

Global Market Information Database (Euromonitor). Jul 20, 2009. Accessed Jan 08, 2010. 2. Functional Drinks Off-trade Sales in Canada (Country Report). Global Market Information Database (Euromonitor). Oct 03, 2005. Accessed Feb 25, 2010. 3. Functional Drinks, Canada, Retail Volume (Statistics). Global Market Information Database (Euromonitor). Oct 03, 2005. Accessed Feb 25, 2010. 4. Soft Drinks in Canada (Industry Report). Global Market Information Database (Euromonitor). Oct 03, 2005. Accessed Jan 08, 2010. 5. Functional Drinks in the United States. Datamonitor. Dec 2008. Accessed Feb 02, 2010. . COSGROVE, Joanna. The 2008 Soft Drink Report. Beverage Industry. Mar 2008; 96; 3; p. 22. Accessed via ABI/INFORM Global. Feb 02, 2010.. 7. THEODORE, Sarah. RTD coffee, tea creates a buzz. Beverage Industry. Feb 2005; 96; 2; p. 16. Accessed via ABI/INFORM Global. Jan 08, 2010. 8. The Coca-Cola Company. (Company Profile). Datamonitor. Jun 2005. Accessed Jan 08, 2010. 9. HANNAFORD, Steve. Industry Brief, Beverages I. Oligopolywatch. http://www. oligopolywatch. com/2003/04/21. html. Accessed Feb 07, 2010. 10. POPP, Jamie. Leading in a healthy direction. Beverage Industry. Dec 2007; 95; 12; p. 22.

Accessed via ABI/INFORM Global. Feb 01, 2010. 11. BERKOWITZ, Eric N. CRANE, Frederick G. KERIN Roger A. HARTLEY, Steven W. RUDELIUS, William. Marketing, 5th Canadian Edition. McGraw-Hill Ryerson. 2003. 12. Consumer Lifestyles in Canada. Global Market Information Database (Euromonitor). Feb 01, 2007. Accessed Feb 08, 2010. 13. Top 20 Global Brands, Ranked by Brand Value, 2004 & 2005 (in billions and as a % increase/decrease vs. prior year). Business Week; Interbrand. Jul 22, 2006. Accessed via eMarketer. Feb 28, 2010. 14. THEODORE, Sarah. Surprising suggestions from teens. Beverage Industry. Vol. 96, no 7.

Jul 2005. p. 4. 15. Canad

The Dear’s brand faces the real possibility of extinction if it does not act quickly to appeal to a newer, younger market segment. Although the existing target group remains both loyal and profitable to the company, it is aging and currently has no successor. The task at hand is the retention of its loyal base while securing a new one. The image of the brand must be preserved in the eyes of each respective group at all times; therefore, any promotional campaign must deliver a distinct message to each group and reach each respective group in a way that does not reach the other – a infusing image may alienate both groups.

In both instances the messages will convey the message that Dear’s is a premium brand. This paper starts by analyzing the current situation and then goes on to discuss the objective, strategy and target audience of Dear’s brand. It then does a detailed analysis of their MIMIC and finally gives an opinion of the plan related to the stated objectives. Current Situation United Distillers (LID) is the owner of the Dear’s brand, and the leading international producer of both Scotch whisky and gin. The company employs 10,000 people. The United States is the company’s main market for the product.

While it is profitable, it is also the one in which legal constraints with regard to the sale, promotion and distribution of its product are most complex. The parent company has not supported its brands with new, cutting edge advertising. And hence the brand is now in between the maturity and declining stage of product life cycle. A 1993 Simmons Marketing Research Report revealed that the lowest infiltration of Scotch whisky was in the 18-35 age groups. It also indicated that the 18-35 age groups represented less than 28% of all Scotch drinkers but accounted for 36% of the population.

In the United States there has been an ongoing trend to consume less and less hard liquor over the past 1 5 years. There are several reasons for this. Social attitudes with regard to the alcohol consumption have increasingly rigid and, as a result, it has become less and less socially desirable to consume large amounts of alcohol. The population has become more conscious of leading a healthy lifestyle. Unfortunately Dewar- Analysis of the Integrated Marketing Plan By Amity Emmer lifestyle. Alcohol, particularly dark spirits, are perceived to be higher in calories than light spirits.

Politics has also made the sale and distribution of alcohol difficult and each state sets it own laws in this arena. Dear’s is managed by the Sheffield and Somerset (S & S) group within the United States. In the early asses DU managers started to realize that Dear’s sales and market were declining. Jamie Prussia was hired about a year ago as senior brand marketing manager for Sheffield & Somerset (S), which is a Joint venture between DU and Mote Hennessey Louis Button (LIVE), and distributor of Scotch in the U. S. She and her boss have been working very closely with their advertising agency, Leo Burnett C. LB), to come up with new ideas to reposition Dear’s Scotch whisky. One of the noticeable trend of Dear’s was that while there had been an increase in the sales (in the last 4 months), there was a slight increase in the market share. Objective Strategy Dear’s is far from the minds of the younger generation, because of its current image as “dad’s drink”. Therefore Dear’s needs to reposition scotch as a relevant and accessible drink for a new generation of drinkers. Dear’s can expand its market into the younger generation if it can change the image of scotch and, more importantly, the image of the brand.

S&S’s strategy is to develop Integrated Marketing Communication Plan to persuade new set of young consumers while retaining the old set of loyal mature consumers. Target Audience Dear’s has a solid reputation among its core customers; this set of customers considers the brand a premium one with a sophisticated image. Past research into life-cycle patterns of liquor consumption showed that liquor preferences frequently altered among consumers in their early twenties and thirties (21-34), and stabilized during their later years. 5-34 age groups was defined as young transitional” who were still striving for their goals, still making choices, beyond college behavior and drinking habits and willing to embrace change with that had already been achieved by the older set- independence and individuality. Therefore, it is easier to generate new consumers from the younger generation. But for the younger generation, scotch is not a popular drink. Brand Re-positioning considers the brand a premium one with a sophisticated image. Reinforcement of that message is needed with this group. Unfortunately the image is poor among its intended target set.

They cite the taste, caloric content and staid image as reasons for not purchasing the product. Any new marketing campaign must address these issues in order to achieve a breakthrough in this target segment. When defining Dear’s sphere of competition, one could safely assume that it is competing with all other hard liquors for a share of the consumer’s entertainment dollar for alcohol; therefore, the brand must not only take this into account when designing and implementing a communications messages but also when it comes under attack from any of these forms of alcoholic drink for a share of the consumer’s Penn on liquor.

The brand must understand where in fits into this constellation of beverages as well as how it penetrates more deeply into this marketplace. Integrated Marketing Communication Plan Throughout the asses, Dear’s successful marketing campaign, concentrated on the type of people who drank the product, rather than the product itself. This approach made the brand the leader in the market. In the asses, Dear’s marketing agency sought to differentiate the product by emphasizing its Scotch heritage by adding the Legends campaign. By running two different campaigns, Dear’s differentiated itself eased on both tradition and achievement.

As a result Dear’s Scotch has been conceived as a prestigious, premium blended whisky. Dear’s became a recognized brand in the U. S. And it is associated with prestige and quality. Dear’s can expand its market into the younger generation if it can change the image of scotch and, more importantly, the image of the brand. By adding youthful components into advertising, it might be possible to change the image of scotch. Traditionally, the media mix for advertising distilled spirits was mainly magazines, followed by outdoor billboards and newspapers. Ambulation of these tools, will be helpful to reach the desired target group effectively, but, will be another challenge for LID. The issues will be how to execute these campaigns so that the necessary support from the trade can be obtained, the proper image can be presented, and that the legal restrictions are satisfied. Issues There are several other issues and challenges to consider including the running of two different campaigns (with a limited budget), evaluating the impact of these new promotions (to understand the effectiveness of them), and the allocation of resources.

Spending more money and efforts on the current consumer group will increase the sales short term, but it will only delay the current problem. Alternatively, concentrating the marketing efforts on the younger generation will return results in the long run. However it won’t be clear if the campaign was successful or not. Dear’s is regarded as a deluxe brand based on its price and prestige. Decreasing its price will make it more accessible but will take Dear’s deluxe image away. Therefore, altering pricing wouldn’t be a good strategy.

Dear’s current and target consumer groups, generally, consume alcoholic drinks in efferent types of settings. While the current generation prefers quieter bars, the younger generation’s preference is for noisy and crowded pub/club kind of environments. Once all of the above is put in order, DU will need to overcome the “strong taste” barrier. The younger generation doesn’t find the taste of scotch very attractive. Focus group results have shown that people in their early ass were not ready to “embrace Scotch values” as their lifestyles constantly change. Young transitional”, the group between 25 and 34, are the real target of Dear’s. As they realize their purpose in life, their choices start to clarify. One of those purposes is to be seen as mature. Dear’s has already established this mature image. The theme, “accessible and positive maturity” developed by Forbes Consulting Group, target both generations without separating them. Traditionally the brand has taken a conservative approach to its advertising, using print advertising as its desired medium of communication.

Pros: Print advertising in magazines is successful in delivering a specific message to a medium but the selection of the magazine can also reinforce the image of the product. Cons: The downside is the higher cost. To advertise in newspapers and outdoor is sees costly than in a magazine; however, there are serious drawbacks. Firstly the print quality is poor. Secondly, clutter is high – as consumers see many advertisements, their power of information retention and remembrance goes down.

Since the company embarks on acquiring a new customer segment which is substantially different from its existing one, care must be taken to prevent any overlap in exposure in diverse messages. For any retention campaign, magazine print advertising should be the mainstay given its ability to target very select audiences and to protect a brand’s image. It is essential that the print messages only be received by their intended audiences and not the other group because exposure to both messages could either confuse the positioning of the brand in the mind of the recipient or make him reject the message entirely.

The brand has recognized the need to employ innovative methods of attracting new customers. I feel that On-site sampling opportunities are an effective way of building awareness of the brand. Not only will the brand representatives be able to address any concerns of taste with the bar patrons but also be able to demonstrate the types of sixes that would work well with Dear’s. This level of face-to-face interaction can work to build trust with the target and is something that cannot be achieved through print.

When our intended target segment sees pleasant, articulate and eloquent people enjoying Dear’s, there can be a positive spin-off in the form of aspirations sales where the potential consumer might perceives himself be more like the brand representative. On-site promotion can influence the target to purchase Dear’s in a location where the product is readily available. There are many advantages to this. First of all, the cost per event is reasonable. Secondly, the presence of brand representatives and Dear’s posters, coasters and table tents will help exclusively focus on the potential target by working as a POS (Point of Sale).

The reaction of the subject to the product can also be gauged, reported and researched. The addition of a senior brand marketing manager is necessary if the company is to execute an acquisition campaign that will rely heavily on on-site promotion to stimulate trial and re-purchase of the brand by innovators and early adapters. Although this brand manager has considerable experience in onsite promotion in rockery stores, alcohol may prove far more challenging given the social attitudes and legal constraints that surround it.

To counter that, the company has maintained a promotional agency to manage the on-site promotions. This promotion agency is events are to be staged. Conclusion It is evident that we know too little about it. More information is required prior to embarking on an aggressive sales campaign. It is imperative to understand why the consumer chooses one type of liquor over another and one competing brand over another. For example, Tequila has been the one type of hard liquor that has enjoyed popularity over the past decade, translating into higher sales.

Extensive research to gain insights into the popularity of tequila and the steps taken to ensure that the popularity would be desirable could be incorporated into our own marketing campaign. Besides, what evaluative process (while making a purchase decision) the consumer employs when evaluating choices among hard liquors and other competing brands of scotch is pertinent. Other information like social factors which can influence a purchase decision should also be sought. The question of consumer research into the buying patterns of the acquisition segment must also be discussed.

Launching a programmer without conducting research could provide the company with additional revenues more quickly but could also refrain from opening a window of opportunity to gain a foothold in a new, potentially sustainable segment in a region of the country that accounts for the highest number of sales. Preliminary measurement of the onsite trials is a necessity which can be best achieved by monitoring sales on Dear’s in sites chosen and neighboring bars immediately after an event is staged. In this manner the company can monitor to hat extent the trials have stimulated further purchases.

The micro-environmental factors that may have an impact on the company’s marketing of the product include the customers, employees, suppliers, shareholders, media and competitors, and they will be described In detail. Also, the macro-environmental factors would include economic, technological and environmental will also be explained. The pricing strategy that was used for this product and/or service will be stated, along with how this strategy was Implemented. The three promotional efforts that could be used to promote this new product or service to the consumer will also be described.

One additional product that the company could add to the product mix that would compliment the original product will be explained. Finally, the marketing plan will be reviewed to see if it will succeed and put this product in the lead. In direct competition with the Apple Company is the Samsung Electronics Company Ltd. (Arnold, 2013). The Samsung Company was founded in 1969 in South Korea and its market cap is $174. 39 billion (World’s Most Valuable, 2013). The new product that will be talked about in this paper is the Sam-E-Slim.

This product is an all in one, 13-inch, lightweight imputer tablet complete with a docking station, keyboard, mouse and an external hard drive. This product allows for the consumer to take It on the go, or to leave It on the desk Like a regular computer. Mission Statement. The current mission statement of Samsung Electronics Is “Through Innovative, reliable products and services; talented people: a responsible approach to business and global citizenship; and collaboration with our partners and customers, Samsung is taking the world in imaginative new directions” (Samsung Mission and Vision, 2014).

To make a successful mission statement, four questions need to be answered. Those questions re “What do we do, how do we do it, whom do we do it for and what value are we bringing” (Samsung Mission and Vision, 2014). To that end, the following mission statement comprises Samsung Electronics. It is the mission of this company to provide outstanding technologies, reliable products and services to the world’s consumers. By bringing together talented employees and creating what the consumer wants for the right price, and to connect the global community.

Target Market. The target market for this new product Is business owners, contractors, and the college-aged students, A business owner Is an “Individual who owns a business n an attempt to profit from the successful operations of the company” (Business because they are usually on the go and need the proper tools to keep their business profitable. By targeting this area, this product would allow this consumer to be able to conduct his/her work on the go, and to allow him/her the ability to always know how the business is going.

A contractor is a “person, which provides goods and services to another entity under terms specified in a contract” (Contractor, 2014). Usually, this consumer is also a business owner, but this product will allow the amplified use of receiving payments on time, and also to keep track of appointments. Since contractors are usually on the go at construction sites, this product will allow the contractor to keep abreast of information that is needed. Finally, the college- aged-student is also a targeted market.

The student will also be on the go, between classes and such. This product will allow the student to be able to complete those assignments anywhere, even if it is in the dorm or apartment that they live in. This new product from Samsung Electronics differs from the Apple Company’s mimic cause this product is able to leave the desk and is also small and lightweight. The mimic needs a power cord, mouse, keyboard and an Internet connection in order to work. This new product, the Sam-E-Slim is able to go with the consumer.

The Sam-E- Slim can be marketed towards other consumers as well. Overall, this product can be marketed to the global community as well, but since this is a new product on the shelf, staying with the listed target market will be best. Micromanagement. Micromanagement factors are factors that have a “direct impact on its business operations and success” (Micromanagement, 2014). The listed factors include customers, employees, suppliers, shareholders, media and the competition.

Three factors that will be talked about are customers, employees, and suppliers. The customers are a key factor that can have a direct impact on the company, mainly for the fact that if the customer does not like the product, they will not purchase it. On top of that, if the product gets a bad review by the customer, it is guaranteed that, by word of mouth, other customers will also not purchase it. Keeping the customer happy with the product will ensure a profitable business. The next factors are the employees.

Keeping the employees satisfied will allow production and the company to keep going. Ensuring the company is hiring the most qualified individuals, and providing them with the required training and providing promotion opportunities will ensure that the employees are satisfied and will remain with the company. Retaining those employees with the relevant skills and experience is also important. If an employee is not contributing to the company as a whole, removing that employee will be best for the company. The last factors are the suppliers.

Without the suppliers, he company would not receive the materials that are needed to create their product, and in the process discourage the customers from buying the product. If the supplier is providing poor service to the company, the company should turn around an find a new supplier that will better fit it’s needs. Macro Environment. The Macro environment refers to the long-term factors that could affect the company. This could be national or global measures and affects the company. This is also known as the factors that are uncontrollable factors that can still influence the company’s strategy.

The macro environment factors chosen are the economical, technological, and environmental. The economical factor is everything that deals with the With the changes in the economy, this will change how the company will operate currently in the present and also the organization plan for the future. Companies should keep a watchful eye on the economy, to include the unemployment levels, comparative foreign exchange rates, and the state of global economy to ensure that the product they release to the consumers will hit the floor bringing in expected revenue.

Technology these days change quite frequently. For a company that deals with the technology in their products, keeping up with the changing times is essential, and it also can influence how an organization can conduct their business. This includes any type of “new machinery, computer chips, or products created through research and development” (What are macro, 2003). Business owners need to determine what new developing technology will help their products and which are just passing phases.

Finally, the last macro environment factor is the overall environment. This factor is important for both the long and short term of the company. This factor includes those natural disasters; hurricanes, tornados and earthquakes that can disrupt normal business. Not only will these natural disasters disrupt normal everyday business, but it can also “disrupt production and supply operations, or even destroy company assets” (What are macro, 2003). Pricing Strategy. A pricing strategy is very important in a business.

When determining a pricing strategy, the following factors need to be determined: positioning, demand curve, cost and environmental factors. The business owner also needs to have clear objectives like short term profit minimization, short term revenue minimization, examine quantity, maximize profit margin, differentiation and survival. In order to ensure the calculation of a correct price, the owner needs to look at cost plus pricing, target return pricing, value based pricing, and psychological pricing (Allen, 2014).

The four guidelines to be adhered to when coming up with a price is that it must be higher than the cost to make the product, the cost has to cover the salaries of all the employees, it can’t be lower than the cost or higher than the cost that consumers will purchase the product, and the price has be considered fair. The company needs to pep an eye on the pricing of other products that closely mirror the product that is being created. The positioning side of the cost needs to be considered because consumers hold true to the saying “you get what you pay for”.

A company also needs to know how much it will cost to create the product and also take into consideration if the product does not fare well in a community. Considering the technology and the components that come with the Sam-E-Slim, other products on the market that are somewhat the same, the price of the product would be relatively on the high side. Promotional Efforts. The objectives of the company are to sell their product to the consumer. In order to do this, the company needs to start promoting the product.

This can be completed in different ways, to include: creating interest, providing information and re-in forcing the brand (Promotion Decisions Tutorial, 2014). This product is from Samsung Electronics, and because of this, there will be a common interest in the new product that is coming out. Once the customer has purchased the product, following up with the customer to ensure the customer is satisfied with the product will help future designs. A company needs to create interest in the new product that is being released. A customer decides if they have a need for the characteristics of emotions, fears and humor.

The company also needs to provide information to the community. This could be creating a commercial that compares this product to another product from a different company. For instance, this product is comparable to the Apple Company’s mimic computer. In addition to the Sam-E-Slim all in one computer, an additional product that could relate to the computer is an additional external hard drive and attachable speakers. These products could either e sold separately or with the Sam-E-Slim computer. The external hard drive can also be customized to the size that the customer wants.

BMW, one of the monsters on global automobile market is going to push the new model of MINI Cooper, which have been already identified as one of the most popular family car and sport car for years. A newly designed MINI Cooper will bring a nontraditional touch in the American imagination of how real club car should look like. Paying attention on high efficiency of product development and production capacities of BMW, there is a chance to provide a user with upper class product at very good reasonable value.

It is an important factor, especially, today, at the time of economy downturn. MINI’s face suits at various cultural and psychological portraits, so it became a favorite car across Japan (vanishing out Rover) and the UK. The next targets are New York, Los Angeles, San Francisco and Miami, which are the best destinations for MINI Clubmen. Speeding up marketing campaign includes specialized staff trainings and mature branding targeted the drivers, who are able to fall in love with automobile MINI spectacle.

BMW is preparing a new marketing campaign for its popular fast, fuel sipping car, MINI Cooper. The motto is “the best clubman car in a history”. Automobile market is characterized by its high competition and high temps of growing, but MINI brand has already won its popularity 45 years ago, and keeps it now before the latest prelaunch of MINI Cooper club car. In the terms of popularity and stability of the brand MINI is far ahead in the competition with popular models produced by Ford, and Volkswagen with its never boring Golf.

However these competing models have been on the market almost the same years as MINI, BMW was always very faithful for initial idea and brand, that’s why changing from family to sport and then club car we are able to recognize beloved MINI Cooper, which welcomes new and new owners to MINI club. A smart policy in branding is a well chosen way to success for Cooper’s marketing team. MINI Cooper‘s attraction goes successfully with its technical possessions as well as with association that it is a piece of national culture.

The car’s image is a combination of sport, fun, fashion, and style, classic, and always different faces. There is one common feature in all MINIs’ trends: it is cheeky and fun loving outrageous personality qualified by respectable BMW trade mark. Although the idea of MINI Cooper cannot be treated as desperate new, it makes a solid step forward winning the audience of young drivers and mature ones, who like to be cheeky covering the age gap.

Honda Civic, Toyota Camry, Scions and MINIs have never been the mainstream cars. Their bizarre look and very specific features draw attraction of specific audience. It is a fight, but after driving MINI, it is essential that nobody try to get back to Scion again. It is an ambitious Clubman and it is a BMW.

References

1. 1. Marketing & Promotions. (2008). Case Study: Mini Cooper. Retrieved on the2nd of June, 2009 from http://www. attackmarketing. net/movie5. php
2. 2. Simms, C. , & Trott, P. (2007). An Analysis of repositioning of the BMW MINI brand. Business School, University of Portsmouth, Portsmouth, UK. P. 3-7.
3. 3. Laverick, S. , & Johnston, S. (1997). The Marketing of a Consumer Icon: MINI Cooper into Japan- coals to Newcastle? University of Derby. UK. Pp. 2-4.
4. 4. Simms, C. , & Trott, P. (2007). The Perceptions of the BMW MINI Brand: The Importance of Historical Association and the Development of the Model. Business School, University of Portsmouth, UK. Pp. 4-6.