Title page Name:

Unit:

Assignment:

Date:

Lecturer:

Table of content

Title page……………………………………..1

Executive summary……………………….2

Introduction…………………………………..5

Product description………………………..6

Value proposition…………………………….7

Features and benefits……………………..9

Target analysis………………………………….10

Competitive Analysis…………………………12

SWOT analysis……………………………………16

Marketing objectives…………………………..23

Pricing strategy…………………………………….24

Distribution strategy…………………………….26

Promotion strategy………………………………27

Budgets…………………………………………………30

References…………………………………………..31

Executive summary

This a marketing plan forming the basis for a new innovative product to be introduced in the market by the Coca-Cola company. It is an analysis that is going to make it possible for us to outline the strategies that shall be used to achieve the company’s strategic objectives. “Bubble Fresh Tea” is going to marketed as a new functional drink as we aim to recapture and maintain the status of the company as a successful and innovative product launcher.

Our marketing strategy is targeting an estimated market size of 12,688,400 people which shall bring an sales growth estimated at about 8.3% in the next five years (243,029.47 in profits) and satisfy the unexploited market for a ready to drink tea.

The measure of success shall be based on the capture of a sizeable market share in the industry and we shall consider Chinese market as an export potential.

Executive summary cont.

Mission Statement

To refresh and benefit every one we reach .

The objectives Create awareness among consumers of the brand new bubble

fresh product Establish brand recognition by capturing a sizeable market share

in the functional drinks industry Become the leader in the industry Achieve the sales forecast figures.

Introduction

“Bubble Fresh Tea” is a bottled fresh tea beverage which is the only tea product in the market .

It has a green base with fruit flavors such as strawberry, orange and passion.

Presenting itself as a funky and an unusual unique drink in the market it will change the consumer experience of the tea drinkers and distinguish itself from the traditional tea with fruit juice flavors and attractive convenient packaging.

Description of Product/Service

What is it, what does it do?“Bubble Fresh Tea” is a new packed tea product in the market flavored with fruit juice tastes.With a green base with fruit flavors such as strawberry, orange and passion.Presenting itself as a funky and an unusual unique drink in the market it will change the consumer experience of the tea drinkers and distinguish itself from the traditional tea with fruit juice flavors and attractive convenient packaging.

Who owns it?The product shall be a property of the Coca-Cola company and all rights shall be reserved and patented by the company

The product life cycleThis product is new and it shall be established in the market as new. We are going to conduct vigorous campaigns to introduce and make the product a brand.

Value Proposition

Why would a customer buy it?

Bubble Fresh Tea is packed tea which is ready to consume and therefore the consumers shall only need to warm it for consumption. It is made of high quality processed tea and it has been flavored to meet the customers tastes and preferences. Further research shall be continuously conducted to meet the tastes and preferences.

What is the value that it delivers?

This product saves the customers time and money. This is because it is already ready and safe to drink. You do not need to go and purchase milk and then take time boiling and preparing it. This shall be suitable for use in offices as well as homes.

The quality of the product is high and shall be frequently improved to meet customers requirements as well as the health content requirements. The product shall be packed with sugar and also as a sugarless tea.

The campaign slogan shall be

“For healthy , ready and quick to serve packed tea, get the Bubble Fresh Tea and improve your tea experience. Why miss a cup when you got Bubble Fresh Tea ?”

Features and Benefits

Bubble Fresh Tea shall have the following features and benefit:

Shall have healthy /balanced diet content

Shall be preserved for long shelf life

Shall be packaged in recyclable packs

Shall be attractively packed

Shall be flavored with a variety of fruit flavors and also unflavored pack to meet every consumer taste and preferences

Features and Benefits cont.

Shall have a shelf life of about one month.

It shall be ready to drink and portable

It shall help the company acquire the market share of persons who do like carbonated products such as soda

It shall promote the company’s continuous invention and innovation program and make it the leader in the market of soft drinks

To strengthen and satisfy the needs of the more adventurous Generation Y consumers with a new eye-catching and Functional product.

Target Markets

The target market is the young generation who are always busy meeting their daily life requirements and who do not have time to prepare a cup for themselves. This includes students, young working class, single parents etc.

The export market includes china as shall be discussed later in this plan.

The marketing strategy shall be undifferentiated and concentrated because this product in not only for the young but nay one else can consume the drink.

Identifying our market segment

The bubble tea shall be established as a ready to drink product in Functional drinks segment

Identifying Segment needs:

This product caters for both nutritional /physiological needs and the social needs due to its fun perception.

Target markets cont.:

Current trend of our market segment:

There is a growth and observable shift from carbonated drinks and fast foods whereby consumers are going for healthy products to help their body and mind.

There is the increased demand for on the way products by consumers with an active life since they need healthy food and drinks but do not have time to prepare the meals themselves.

The potential growth of our segment:

proven statistical reports indicate that with the current involvement of the young generation in economic activities, our potential clients may grow by 2.72% over the next three years (2018) for the age bracket of 13-29 years .

Competitive Analysis

Coca-Cola’s competitors are PepsiCo, Inc. and Dr. Pepper Snapple Group, Inc.

these competitors produces, markets and distributes snacks, non-carbonated and carbonated drinks plus other foods through franchises world wide.

Competitor Environment

PepsiCo Americas Foods unit offers salty and sweet snacks comprising;

Lays potato chips,

Doritos tortilla chips,

Cheetos cheese flavored snacks,

Competitive analysis cont.

Pepsi Co. Americas’ drinks unit sells ;

Mountain Dew.

Gatorade.

Tropicana Pure Premium.

Sierra Mist.

Mirinda.

Tropicana juice drinks.

Competitive analysis cont.

Dr Pepper and Snapple brands has been in existence for over 200 years and its portfolio of products include.

Mott’s.

A&W.

Sunkist soda.

Hawaiian Punch.

Canada Dry.

Schweppes.

RC Cola.

Diet Rite.

Competitive Analysis Cont.

The competitors use the channels we use to market their products which are;

commercials.

print ads.

billboards.

sporting events.

Internet platform such as Facebook.

Our company’s strengths are the brand recognition in the market , ability to pursue new markets , stronger distribution channels and result oriented operations.

Our weaknesses include reliance on line extensions, particular carbonated drinks and the over saturation of carbonated soft drinks leading to brand recognition dilution.

SWOT analysis: summary

Summary of Strengths and Weaknesses

Coca-Cola company shines in its brand portfolio and brand name and has been ranked on top 100 globally as a brand . The large value of the company’s assets at an estimated value of $ 97 billion in the year 2014 is another indication of our distribution success.

This makes the company to rank way ahead of the competitor and this makes the company get customer loyalty and ease market penetration despite the threat of reducing its future market share due to intense and aggressive competition .

Strengths

World’s Leading Brand

the greatest strength of our company is its recognition as the largest manufacturer , marketer and distributor on soft drinks and syrup concentrates in the world .

The company has been selling trade marked soft drinks and beverages since the year 1886 in America and it currently has over branches in over 200 countries around the globe. The recent establishments in bottled water has seen the company’s market share increase as well as the brand recognition .

It is also known to have successfully launched juice concentrates tht are performing excellently in the market.

Our market goodwill and customer loyalty is the biggest asset this company has which is backed up by brand recognition.

Strengths cont.:

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 2014. 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 2014.

Weaknesses

Sluggish Performance in North America

The North America segment is dragging behind and this segment accounts for more than 30% of our revenues and its high performance is vital for this company.

The lack of any sale increase and the decrease in unit case retail volumes by 1% in the year 2014 due to weak beverage trends and reduction in warehouses delivery is also another weakness that should be handled with care and the case is made worse by the company's forecasted weak performance in 2015 in North America.

This slugging performance is impacting the growth of our company and preventing us from recording robust top-line growth in our over-all performance.

Opportunities

Acquisitions

In the last decade ,this company has adopted acquiring other companies in the market such as Kerry Beverages and reappointing it as Coca-Cola China Industries .This extended the company’s control in manufacturing and distribution in the nine provinces of China.

The company also acquired Apollinaris in Germany a company that sells distilled water

The acquisition of TJC holdings in South Africa and several other deals in Australia and New Zealand shall give this company a growth and expansion chance through new product inventions and new market shares acquisition.

Threats

Intense Competition

Coca-Cola has stiff competition in the soft drinks industry and this competition is both regional and globally and also the existence of many locally produced nectars ,juices and fruit drinks in various market s around the world, the company must remain innovative to remain at the top.

Pepsi is one of the company’s biggest competitor backed by others such as Cadbury, Nestle, Schweppes and Kraft who are also established globally .

competitive factors

pricing,

advertising,

sales promotion programs,

product innovation,

Solutions to threats

Intense Competition

Competition is healthy and nothing much can be done to eliminate it in the modern world with the existence of a trading global village brought by the internet .For Coca-Cola to remain relevant in the market, they have to make their brand name stick in the minds of their customers by lending their images to TV shows and other social media platforms.

Marketing objectives

Coca-Cola shall produce Bubble Fresh Tea which is packed in a bottle and it is going to be positioned as a ready to drink available in the market. It shall be packed in a green tea base bottle and flavored with passion ,strawberry and orange .

This product is going to give the consumers and entirely unique beverage experience and as a funky alternative to traditional tea due to the great taste of authentic fruit flavors and convenient packaging .

The product is strategically centered on the following three objectives;

For the company to remain as the leader in the market through innovation and product launch success;

Continuously increase the market share Coca-Cola company and become the leader in functional and healthy drinks.

Satisfying and strengthening the requirements of the young generation which is adventurous by giving the product a new eye-catching and healthy product.

Pricing Strategy

The price strategy that will be undertaken should consider the following aspects:

Product demand

Demand is an important factor and its main drivers are income, substitutes and compliments, tastes and preferences of the customers and the quality of our product. Most of our clients value our products and are willing to pay a higher price for our high quality product which indicates value and quality accompany each other.

Bubble fresh tea shall be introduced in the market at a price majorly elastic to demand and therefore it is possible that the price shall increase as the demand increases holding other factors constant.

Price strategy cont.

The product life-cycle

One advantage of a new product by a recognized company like Coca –Cola is that in the earlier life of the project , the product can be priced highly due to its association with prestige and funkiness.

This increases the profit margin and also allows the company to recoup the cost of investments in the product and if well maintained we can charge a premium on our price for prestigious class the product shall acquire and putting into consideration the demand aspects of the product.

Distribution strategy

This product shall be distributed using our branches all over the globe. We shall also distribute it in the malls and shopping places as well as retail centers to enable it reach as many customer s as possible.

This means we shall be using both direct and indirect channels for our distribution. The direct channels are our direct distributors all over the world and the parties who act as our point of sale outlets shall be our indirect distributors.

For this product I would recommend intensive distribution because we are targeting the entire market and not only the young or the rich but also all other potential customers.

Marketing and promotion strategy

Promotion Strategy:

Objectives:

We are going to make sure that Bubble Fresh Tea in order to create awareness to the young generation as well as the parents.

Message:

“For healthy , ready and quick to serve packed tea, get the Bubble Fresh Tea and improve your tea experience. Why miss a cup when you got Bubble Fresh Tea ?”

Concepts:

Be Different , Original and Yourself

Promotion strategy cont.

Media selection:

The young generation which is our major target is considered to give the media partial attention since they use more than several programs a behavior known as multitasking . They always use continuous information and attention to scan various media platforms and therefore we have to use almost any channel availed to us especially the internet.

We shall also use Viral marketing strategies and implement campus contests and other social contests to make it as common as possible.

Promotion strategy cont.

Television: MTV, YTV, Much Music etc.

Radio: MIX96, 94.7 FM, University stations etc.

Magazines for girls: Elle, Cosmo etc.

Magazines for boys: Sports Illustrated (or Kids edition)

Internet: Banners on websites (gaming, sports, etc.) and also using social media such as Facebook and Twitter

Promotional website: www.BubbleFresh.com

Outdoors: Billboards in selected areas such as: Campuses,

transportation (bus, metro, stations)

Tourist areas in high seasonal periods

Outskirts of key cities in geographical reach

Budget

Refer to excel.

References

Dibb, S. & Simkin, L. (2008). Marketing planning : a workbook for marketing managers. London: South-Western Cengage Learning.

Hooley, G., Piercy, N. & Nicoulaud, B. (2008). Marketing strategy and competitive positioning. Harlow, England New York: FT Prentice Hall.

Luther, W. (2011). The marketing plan how to prepare and implement it. New York: AMACOM.

McDonald, M. & Wilson, H. (2011). Marketing plans how to prepare them, how to use them. Chichester, West Sussex, U.K: Wiley.

Wood, M. (2014). The marketing plan handbook. Boston: Pearson.