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MKT337 Marketing Plan by The Fabricators
 

MKT337 Marketing Plan by The Fabricators

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    MKT337 Marketing Plan by The Fabricators MKT337 Marketing Plan by The Fabricators Document Transcript

    • An Energy Drink from Marketing Plan
    • Group Project: Marketing Plan MKT: 337:Promotional Management Sec: 4 Submitted By: Group Name : the fabricators Name: Marib Alam (id:0910803042) Name: TasnimFaruque Nabila (id:0910054042) Name: Tahsin Rahman (id:0910234042) Name: Kudrat-E-Ebtihaz (id: 0920266030) Name:ZarrinSuba (id: 1110038030) Submitted To: FarzanMitu (FrM) Semester Title: Summer 2012 Date of Submission: 8th July 2012 2
    • LETTER OF TRANSMITTALToFarzanMituLecturer, School of BusinessNorth South UniversitySubject:- Submission of marketing planDear Madam,We had been assigned to prepare a final report for the course of MKT337. We are introducing anew brand named “FLAME” which is an energy drink. Thank you for providing us with theopportunity to work as a team for this interesting project. We gained invaluable experience viathis project and it was a pleasure. We believe that it will increase our marketing skills further andwill help us in the long run.If you have any questions and/or comments regarding the interpretation of this project please feelfree to contact us. We look forward to working under your guidance again in the near future.Thanking youMarib AlamTasnimFaruque NabilaTahsin RahmanKudrat-E-EbtihazZarrinSuba 3
    • AcknowledgementIt is indeed a great moment of pleasure to express our senses of profound gratitude &indebtedness to all the people who have been instrumental in making it a rich experience. Wefound it to be a challenging project that gave us a real practical ideas about different types ofstrategies used in marketing process of a product and it is almost impossible to do the samewithout the guidance of our course instructor FarzanMitu (FrM) and the supportive equalcontribution of each of our group members. 4
    • Table of ContentsExecutive Summary ................................................................................ 6Company Overview ................................................................................. 6Objective ................................................................................................... 7Introduction ............................................................................................. 8Target Market Profile ............................................................................ 8Positioning Strategy .............................................................................. 10Differentiation Strategy ....................................................................... 10Product Strategy .................................................................................... 11Pricing Strategy ..................................................................................... 11Distribution Strategy ............................................................................ 12Promotion Strategy ............................................................................... 12Competitor Analysis .............................................................................. 15PEST Analysis ........................................................................................ 16SOWT Analysis...................................................................................... 17Conclusion .............................................................................................. 17References ............................................................................................. 18 5
    • Executive SummeryThe Coca-Cola Company is no stranger in Bangladesh, because of Coca-Cola which is the mostpreferred soft drink here. Now The Coca-Cola Company aims to take the energy drink market bystorm with its new brand “FLAME”. It will be a low sugar, tasty energy drink made for thehealth conscious, active, sporty youth of Bangladesh.Initially only one flavor will be introducedin an attractive plastic bottle. The pricing will be based on the value of the product and also thecompetitors pricing. The promotion plan will incorporate aggressive advertising and publicrelations. The commercials will be made in such a way that is never been done in Bangladesh.As the product will be in the introduction stage the growth will be low and there might little orno profit but in the long run the marketing plan will pay up and make FLAME the prominentname in energy drinks.Company OverviewExisting Product InformationThe Coca-Cola Company is an American multinational beverage corporation and manufacturer,retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is bestknown for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pembertonin Columbus, Georgia. The Coca-Cola Company offers more than 500 brands in over 200countries in Bangladesh its products include Coca-Cola, Sprite and Fanta. From the last 50 yearsThe Coca-Cola Company has been marketing its products through local representatives inBangladesh.Although Coca-Cola is doing profitable business with its current products in Bangladesh, thegrowth has slowed down with time. Meanwhile, a new market of energy drinks has emerged inBangladesh in recent years where local brands are fighting for market share and very recently 6
    • Pepsico has joined in. Coca-Cola has various energy drink brands worldwide such as BPMEnergy, Burn, Rockstar, E2, Real Gold, Full Throttle, Gladiator, Scorpion however none oftheseare marketed in Bangladesh.So in 2012 Coca-Cola will be launching a new brand“FLAME” in Bangladesh with goal of becoming the mostpreferred energy drink brand with aneffective marketing plan and execution.Marketing PlanObjective  Create a need for energy drinks in the minds of the target audience.  Create awareness and interest in FLAME among males and females age 16 to 25.  Build a brand image that sets FLAME apart from other brands. Fig 1: FLAME energy drink 7
    • IntroductionInstead of introducing its other existing energy drink brands in Bangladesh, Coca-Cola is goingalong with the decision of introducing a new brand because of legal issues and pricing. As theinternational brands contain too much caffeine and other substances that are not allowed by thelaws of Bangladesh the company will introduce a new brand FLAME that it tailored for themarket here. The brand will target the youth with its unique value proposition. The brand isintroduced with the goal of staying in the market for a long time and enjoying sustainablegrowth.Target Market ProfileGeographic:Initially, the main target would be to sell FLAME in the main cites of Bangladesh like Dhaka,Chittagong, Sylhet, Khulna. etc Distribution to other cites will depend on the response from the maincities.Demographic:Age:FLAME is mainly targeting the youth of the country which includes people from 16 to 30. Thisage group is always busy and they are in need to energy to support their active life style.Gender:Both male and female are included in our target group. Females are targeted as they are alsoactive all day. Also the product will have appeal to the females as it low on sugar and it will notmake them fat. 8
    • Occupation:As FLAME is targeting the youth, our largest target group will be the students from differentinstitutions starting from college. Young professionals will be in the target group as well becausethey always try to taste different kind of things and as it is an energy drink they might find ituseful too.Generation:We are launching this product actually for the generation we call “djuice generation” or“Facebook generation” who actually tries new thing.Religion:Every religion living in our society is included in our target market because we don‟t use anykind of element which can hurt any religious mind. So Muslim, Hindu,Christianeveryone isincluded in our target group.Psychographic:Social class:We want to sell our product to the youth from middle class to upper uppers. We chose the classof people because they spend a good amount of money for food and beverage.Lifestyle:As we are targeting the students and the young professionals they lead a quiet active life. We willbe targeting people who lead a bit sporty, energetic and adventurous life style.Behavioral:Occasion:We want to sell our product to the customers on a regular basis not occasionally. 9
    • Benefit:People we are targeting will look for quality which will serve there need of quality energy drinkwith good taste.User status:As we are new in the market we will be targeting the nonusers and potential users of otherenergy drink both.Readiness stage:As a new product people are unaware of our product we have to create the image of our productthrough mass promotion.Positioning strategyFLAME will not be positioned like other energy drinks where a boy drinks the product andsuddenly he gets to do impossible things and the girls are flattered. Instead of this old fashiongimmick, FLAME will position itself being as true as it can.The target audience will perceive thebrand as an integral part of their lives as the brand will reflect their true stories of strengths,struggle and success. The overall positioning strategy will be “more for more”.Differentiation strategyFLAME will differentiate itself as a premium quality healthy energy drink. The drink containslow sugarand other ingredients such as caffeine, taurine, glucuronolactone, and B vitamins.Caffeine is added to improve reaction speed, alertness and concentration; helps burn fat duringendurance activities. Taurine is an amino acid that naturally occurs in the human body to act asan antioxidant. Taurine attaches itself to harmful substances and accelerates the flushing of themfrom the body. Standard foods that contain taurine are scallops, fish and poultry.Glucuronolactone is a carbohydrate. Within thebody, glucuronolactone helps detoxify the body 10
    • Bvitamins energize and increase metabolism. Along with these product qualities the IMC toolwill used to differentiate the brand.Product strategyAn energy drink is a convenience product so FLAME‟s marketing strategy will be based on theapproach to this type of products. As the product is in the introduction stage, the initial strategyis just the first step in a greater marketing plan for the product‟s entire life cycle. In designing theproduct strategy, first of all comes the product quality. FLAME will be a high quality product; itwill not taste like a cough syrup like other energy drinks do. FLAME will be featured as anenergy drink that has a refreshing taste and will contain legal levels of caffeine, vitamins, lowsugar and energy ingredients. As this is new product initially only one flavor will be launched.The brand name is chosen as FLAME as flame, fire is a symbol of energy. The branding will bedone is such a way that the target market could relate the product to themselves. The sign,symbol, design of the product will be attention grabbing and will demand interest from the targetmarket. As the brand is new a lot of emphasis will be given on building a brand image parallel toCoca-Cola.The drink will come in a PET bottle of 300 ml and will loosely resemble the bottle ofthe 600 ml Coca-Cola so that people could relate the product with that. The bottle will betransparent. The labeling will be very important. It will contain the brand logo of FLAME aswell as the company logo of Coca-Cola, nutrition facts. As people of Bangladesh areapprehensive of this type of product it will be clearly stated in the label that the product 100%halal. The label will also contain quantity,the product tagline, facebook page link.Pricing strategyThe pricing will be based on Customer Value-Based Pricing because consumers relate qualitywith price. Coca-Cola has always been priced a bit higher than Pepsi and other brands and so thisstrategy will be maintained.Market penetration pricing will not be used as the market is not hard 11
    • to access and with the help of the right kind of promotion the consumers reached.In actually pricing the productpsychological pricing will be taken into consideration and a bottleof 300 ml FLAME will be priced at 33 taka. Also this will set the brand apart from other energybrands which sell their drinks for 25 tk of 250 ml bottles.Distribution strategyCoca-Cola already has a vast distributing network all over Bangladesh through Abdul MonemLtd. This distributive network will be utilized through selective distribution. The product will bemade available in Dhaka, Chittagong, Sylhet, Khulna. As this is a convenience product FLAME willmade available in as many shops in these cities as possible. It is to be noted that the product it will bemanufactured here in BangladeshAbdul Monem Ltd to cut the distribution cost.Promotion strategyAs the brand is new promotion is of great importance and “Integrated MarketingCommunications” approach will be utilized for the promotion strategy. The promotional budgetwill be set to approximately 7 crore taka to run a campaign for 3 months. To handle theadvertising campaign Asiatic JWT will be assigned as the agency.TVC:TVC is the most important promotional tool for this kind of product because the highest numberof people can be exposed to the brand by a single telecast. The FLAME targets the youth of thecountry so the TVC will definitely reflect their lifestyle, their choice, their success and failure aswell. The TVC will contain real thoughts like real people doing real things. As the brand targetsyoung sporty, energetic and adventurous people the TVC will also reflect that kind activateswhich will be appealing to these groups of people. Not only concept that strikes peoples mindquality cinematography and music also strike people‟s mind. So the company will offer the bestquality of cinematography and music thorough the TVC.These people don‟t have enough time to watch TV all day so the timing of the TVC is alsoimportant. Young people are very much into sports so during that sports it‟s a prime time totelecast TVC. At the time of some musical shows, and news time might be a good option fortelecasting FLAME TVC. As it‟s a 3 month campaign the company will start the campaign atsummer and the TVC will be shown in high frequency. 12
    • Print media:Print media is a very important promotional tool in now days. The target market of this productspends their prime time of the day out side home. So billboards can be very effective means ofcommunication. Billboards on the busy roads and in front of educational institutes might behelpful. Print ads on popular new papers and magazines like‟ ProthomAlo „, „The Daily Star‟,might be a good option. The first page , last page and the sports page will be a the best optionfor print ad.YouTube:Publicity thorough YouTube is quiet new in Bangladesh no other company has ever done itbefore. Though it‟s a youth product company can sponsor a short film or a documentaryreflecting the life of these youth. These 4/5 minute short films will only be available on YouTubeso any one can watch it. These films can be directed by the finest filmmakers of our country likePiplu AR khan, Amitavreza ,MostafaSorwarFarroki , Gazishuvro . These short films willdefiantly encourage the young people to relate them self with the product. These films won‟tshow the direct use of the product it will reflect their life style. Documentaries can be made onthe works or life style of the brand ambassadors as well that will definitely encourage the youth.Facebook pageThe social networking site Facebook has brought a revolutionary change among the younggeneration. Almost 70% of young people have a Facebook account. So targeting these peopleFacebook will be a major medium. First step is to create a very attractive and effective Facebookpage. The page will be promoted in the advertising campaign so that the target audience will likethe page and thus a two way communication process will be established.FM radioFM radio is a part of our urban life in now days. Some time when we stuck in traffic jam we areto bind to listen radios. So this fm radio can be a major media of promotion. The promotionthrough the radio can be two types. Firstly, we can advertise during the programs.The radiocommercials will be aired in some specific time like when people go to office, university andwhen people come back home. We can choose some selective radio stations like “radiofoorti”,”abc radio” because these channels are very popular among the youth.The other optionis to have our own show. The show will be hosted by FLAME brand ambassadors and they‟llplay rock tracks and chat with the audiences.Brand AmbassadorAs brand ambassador Wasfianazreen(2nd Bangladeshi woman to climb mount everest)andFarhanSamad (the lead guitarist of the legendary band Cryptic Fate) will be chosen as they 13
    • have a certain appeal towards the target market. The brand ambassadors take part in the PR andadvertising campaign.Pic:Wasfia nazreen Pic: Farhan SamadPublic RelationsThe PR activities will include arranging/sponsoring rock concerts and phonolive TV shows.Astated above the PR budget will be used to finance the youtube short films. TVC Radio PR Print Brand ambassador Fig 2:promotion expenditure chart 14
    • Competitor analysisMain competitors:Sting, Black Horse, power, tiger, speedTheir strength:  Already well known and established.  Have more practical knowledge about this field.Their Weakness:It‟s clear as daylight that other brands of energy drinks pose a very low brand image. Maximumcustomers of those brands are low class people. There is another very strange similarity among all otherbrands, all of their packaging is almost the same. These bottles eventually look like a FYNCIDIL bottleand no wonder why their target is market includes those low class people. The promotional strategies ofthis company are even more pathetic. All the companies show almost same thing over and over again intheir ads and TVCs. When it comes to the taste, maximum drinks tastes like „cough syrup‟ sometimeswhich is impossible to drink for a normal person. Another very important factor other companies ignore istargeting females. Almost half of the population is female so excluding all of them might not be a verygood marketing strategy. It might be a useful product for them as they remain all day same as males.The way we can outrun them:The main task of FLAME will be creating a complete new image of an energy drink brand in Bangladesh.By creating a creative, different and effective promotional strategy we can outrun them. As far as the tasteis the concern FLAME will taste better than just a „cough syrup‟. And lastly including female in thecompany‟s target group can make a difference as well. 15
    • PEST analysis:Political factors:As a new brand the company will follow all the government policies like tax policy, labor law,environmental law, trade restrictions and tariffs. Company won‟t over rule government laws in case ofpromotional activities as well.Economic factors:Though FLAME is a product of the Coca-Cola Company, it will follow all the economic policies of itsparent company.Social factors:Food and beverage business in Muslim country can be critical sometimes. So FLAME will create theimage of 100% halal with true statistic and it won‟t contain any ingredients that can hurt any otherreligious values as well. Considering health factor, it‟s product for health conscious people with noharmful ingredients.Environmental factors:At the age of global warming everyone is concerned about environmental issues. The company is alsoaware of these issues. The bottle of FLAME will be made of plastic which will be easily recyclable. Theproduct wont effect the environment is any ways.Legal factors:The company will follow all the discrimination law, consumer law, antitrust law, employment law, andhealth and safety laws. As it‟s already mentioned that FLAME already contain low level of caffeinewhich is specially made for the people of our country. 16
    • SWOT AnalysisStrength:  Being a brand of The Coca-Cola Company.  Premium quality.  Clever advertising and promotion.Weakness:  Other brands are well known.  Other brands might have loyal customers.Opportunity:  The energy drink market is still wide open.  Potential for becoming market leader.Threat:  People are not that much into energy drinks.  People have negative perceptions about energy drinks.  Government may introduce new laws regarding the substances in the drink.ConclusionWe are very confident that FLAME willblow away its competitors and in the long run it will prove itselfas a profitable investment for The Coca-Cola Company. FLAME will change the outlook of Bangladeshipeople of energy drinks and not only that it may prove so successful that it might be introduced in theforeign countries in the future. 17
    • Referenceshttp://en.wikipedia.org/wiki/The_Coca-Cola_Companyhttp://en.wikipedia.org/wiki/Coca-Cola_brandshttp://www.lawyersnjurists.com/resource/articles-and-assignment/rules-regulations-in-relation-to-the-energy-drinks/http://www.velki.com/link.asp?cat=181Principles of Marketing 14th Ed by PHILIP Kotler Gary Armstrong 18