Marketing Plan

GROUP 10 Audrey Jolin-Lessard Aïsha Brillant Cindy Cheng Geneviève Leblanc Nicolas Murcia Vicki Tian Jean-Louis Nguyen Audrey Jolin-Lessard Cindy Cheng Nicolas Murcia Jean-Louis Nguyen

Our Presentation STRUCTURE

Marketing Objectives

Company Profile

What is Bubble Buzz?

Overview of the industry

Competition, Target Market & Customer Analysis

Marketing Mix (4Ps)

Financial Projections, Implementation Plan

Export Potential

Introductory VIDEO

What are our intentions?

Launch and market a completely unseen-before beverage product, in order to achieve the following:

Create strong consumer awareness for Bubble Buzz through the 4 P’s Become the market leader in the functional drinks segment through sizeable market shares Re-affirm the company’s title of market leader in product innovation and successful product launches . 3 MARKETING OBJECTIVES

Company Profile – In case you don’t know, who are we? Cindy’s part on Company profile + quick product description (1min)

Industry Analysis – Where does the product stand? FOOD & BEVERAGE SOFT DRINKS Carbonates Fruit/Vegetable Juice Bottled Water Functional Drinks Concentrates RTD Tea RTD Coffee

Industry Analysis – The Functional Drinks Market Segments of the functional drinks market

Energy drinks

Nutraceutical drinks

Sports drinks

Smoothies (Milk & Juice Drinks)

RTD Bubble Tea

Industry Analysis – Soft drink sales breakdown 9,224.10 8,994.50 8,879.90 8,481.30 8,169.60 7,896.40 TOTAL 1.1 0.9 0.8 0.6 0.4 0.2 RTD coffee 307.4 286.8 275.4 265 257.4 234 RTD tea 161.9 159.2 166.5 171.3 186.5 193 Concentrates 342.2 327.4 324.7 318.1 312.1 296.7 Functional drinks 859.4 763 666.8 551.2 447.3 385.9 Bottled water 2,613.10 2,497.60 2,454.60 2,347.00 2,239.60 2,135.20 Fruit/vegetable juice 4,938.90 4,959.60 4,991.10 4,828.20 4,726.30 4,651.40 Carbonates 2004 2003 2002 2001 2000 1999 C$ million Off-Trade Sales of Soft Drinks by Sector: Value 1999-2004

Industry Analysis - Trends Only 3.7% of the total soft drink sales. However…

Sales : $342.2 millions in sales in Canada in 2004

Current growth : 13.5% sales increase since 1999

Future growth : 7.3% sales & 11.0% volume increase by 2009.

Consumption : 3.94 Liters per capita, a 4% increase since 1999

 Growth and profitability potential due to consumer trends.

Industry Analysis – Consumer Trends

Portfolio diversification through alliances, acquisitions, R&D

Trend towards healthier alternatives in the functional segment

Concerns about negative health impacts of carbonated drinks

Quick maturation in the core segments

Trend towards new flavours and trendier products

Industry Analysis - Strengths, Weaknesses, Opportunities, Threats

Strengths:

Brand name

Effective presence in new markets

Results of operations

Strong existing distribution channels

Weaknesses:

Relying upon brand extensions

Relying upon particular carbonated drinks

Brand dilution

Difficulties when entering non-core categories

Saturation of carbonated soft drinks segment

Industry Analysis - Strengths, Weaknesses, Opportunities, Threats

Opportunities

New product introductions

Brand is attractive to global partners

Threats:

Strong competition

Potential health issues

Free trade

Competition, Target Market, Customer Analysis Cindy’s part on Competition, Target Market, Customer Analysis (3 min)

Bubble Buzz Price: $2

Consumer demand

The product lifecycle

Potential substitutes

Price strategy should consider the following 3 aspects : Marketing Mix – Price Strategy

Marketing Mix – Price Strategy

Consumer demand:

driven by tastes and income;

availability of others similar products;

“ The higher the price, the higher the value.”

customer unwilling to pay premium price

The product lifecycle:

the newer the product the higher the price ;

high profit margin;

recover development costs quickly;

gives a certain prestige to the product

Potential substitutes:

competitors attracted by high profit margin; only two “serious” competitors;

unique for now;

easy to imitate;

Marketing Mix – Product Strategy

Brand personality: energy, funky, cool, functional, original, funny, healthy, etc.

Product modification: introducing an existing beverage but with a more convenient package

Benefits of Green Tea: cancer, rheumatoid arthritis, cholesterol, cardiovascular disease, infections, quit smoking, weight loss, etc.

Marketing Mix – Product Strategy

Prone to product imitation: solution: broaden distribution quickly

Low-learning product: consumers can eat while drinking

Avoid product resistance: use more personal selling when dealing with retailers, give more samples to customers, use contests, website, etc.

Marketing Mix – Promotion Strategy

Objectives:

To initiate strong awareness about Bubble Buzz throughout Generation Y consumers as well as their parents.

To win market shares over our top functional drinks competitor, PepsiCo.

Marketing Mix – Promotion Strategy The message: Bubble Buzz is a healthy drink for sporty and young people who simply enjoy taking care of their body and life. It is a drink for the out-of-the-ordinary individuals who like to challenge themselves Be B old, Be O riginal, Be D ifferent, Be Y ourself

Marketing Mix – Promotion Strategy Target Market: Generation Y only give partial attention to media and typically use more than one media at a time. Solution: Use a great variety of targeted promotional tools. Media selection: Television Radio Magazines Internet Outdoors Personal Selling Public relations Publicity

Marketing Mix – Promotion Strategy Television: communicates with sight, sound and motion, only media that can reach 99% of the homes in Canada, we have the budget to cover the high costs , select channels for teenagers and young adults

Marketing Mix – Promotion Strategy Radio: already segmented medium, over 900 radio stations in Canada, average student is a surprisingly heavy radio listener

Marketing Mix – Promotion Strategy Magazines: magazines have become a very specialized medium, about 500 consumer magazines in Canada, good color production create strong images, each magazine’s readers often represent a unique profile.

Marketing Mix – Promotion Strategy Internet: official promotional website: www.BubbleBuzz.ca, visual audio and video message, banners on selected websites, Outdoors: low cost and flexible alternative, campuses, bus, metro, tourist areas, malls, etc.

Marketing Mix – Promotion Strategy Promotional Mix: Consumer orientation Contests: “ Win another Bubble Buzz flavour”, secret code underneath the bottle cap log on the website to win, increase consumer purchases / involvement Samples: to avoid product resistance, low risk for consumers since they get it for free. Point-of-purchase: in supermarkets to reach the parents of generation Y Product Placement : in TV shows in subsequent years,

Marketing Mix – Promotion Strategy Allowances and discounts: case allowance, encourage retailers to buy more of the product to get a certain amount for free Cooperative advertising: encourage retailers to buy our product and to maintain high level of advertisement Advertising: pulse scheduling, emphasized before and during summer Promotional Mix: Trade orientation

Marketing Mix – Promotion Strategy Intermediary: Push strategy, in order to gain retailer’s cooperation in ordering and stocking the product, personal selling . Ultimate consumer: Pull strategy: to direct our promotional mix at ultimate consumers in order to encourage them to ask retailers for Bubble Buzz, mass media.

Marketing Mix – Place Strategy supermarkets convenience stores independent food stores discount stores multiple grocers vending machines direct sales

Financial Projections CM – SG&A – Capital expenditures $243,029.47 Profits 4.3% of revenue, based on past data $25,676.33 Capital expenditures : Half of the O/H costs estimated, based on past data $113,453.56 SG&A cost : Fixed Costs : Revenues - COGS $382,159.36 C.M. Based on weighted average percentage in past data $214,964.64 COGS Based on sales @ different channel’s price $597,124.00 Revenues

Projected Financial Performance

Pre-launch preparation:

Focus on organising resources to implement the Bubble Buzz.

Go / No-Go stage: should we continue product implementation ?

Launch:

April 1 st Bubble Buzz is freshly on the shelves (no joke) !

Advertising campaign through promotion schedule.

Post-launch (monitor and control):

Assess feedback from sales revenue, and customers.

Maintain positive dynamic by training managers & staff, and by upgrading the web site.

Implementation Plan

“ Step by Step”:

Advertising campaign:

Create awareness of the brand

Reach target market (18 – 29)

Develop mass consumption

Enhance distribution

Charismatic and ethical sponsorship

Suggest excitement about the brand

Maintain communication with media

All the time Publicity 10 August to end of September Contest 9 May to September Public Relations 8 May to September Outdoors 7 April and September Point of purchase 6 April to September Sample distribution 5 April to September Television spots 4 Mid-March to June Magazines ads 3 February to April Radio spots 2 February to September Personal selling 1 Period of time Output Step Promotion Schedule

Export Potential Cindy’s part on Export potential (1min30)

Conclusion Jean-Louis’ conclusion and call for questions