10 step marketing

2012 Edition

The 10 Step Marketing Plan

i-PLAY NYEL BERROYA
Ateneo Graduate School of Business
February 28, 2012

www.danielberroya.blogspot.com

10 STEP
Marketing Plan for
(Vita Coco “100% pure coconut
water)

NYEL BERROYA
FEBRUARY 2012

www.danielberroya.blogspot.com 2

Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.

Steps 1 to 5
Fresh, Natural and Energy
Boosting “Thirst Quencher”
1. Vita Coco PTM are the active individuals and on-
the-go Professionals.
2. Who wants to stay Fit and Healthy.
3. Can choose new players Lipa Buco, Fruitas Buco
and among others
4. Keeps the doctor away by boosting nutritional
needs & sickness prevention.
5. The potential market size is $37.5 million. Vita Coco
niche is $ 15 million


Steps 6 to 10

Vita Coco is about Hydration
6. Vita Coco is stacked with potassium, and is
as natural as natural gets (some say it’s like
putting a straw in a coconut). Vita Coco is
about hydration and healthy living.
7. Price is mid priced, 10%-20% below/above
competitors.


Steps 6 to 10

Vita Coco is about Hydration
6. Will Use TV, events & experiences
7. Will be distributed nationwide
8. Uses niche market as generic approach to
win.
“I love Vita Coco! It’s real coconut
water from handpicked coconut.
It’s delicious and so good for
you.” - RIHANNA


1. Vita Coco PTM are the “Active
individuals” and “On-The-Go”
professionals.
 Demographics: Active Individuals
(aged: 15-24) and young professionals
(aged: 25-34), male and female, social
class ABC, single and married.
 Lifestyle: “On-The-Go” professionals
and trendy/energetic/active individuals.


1. Vita Coco PTM are the “Active
individuals” and “On-The-Go”
professionals.
 Behavior: Daily, at least 3x a day, min.
of 250ml to 500ml, thirst quenching,
energy boosting and with several health
benefits.
 Relieves headache
 Eliminate swelling hands and feet
 Boost poor circulation and other more.


Individuals needs to have fun,
hip and healthy lifestyle
Self-Actualization
Needs
(Self-Development
I enjoy fun and healthy life. & Realization)

Esteem Needs
(Recognition,
Status)

I am hip and Social Needs (sense of
belong to healthy peeps belonging, love)

I drink “water of life” Safety Needs (security, protection)

Physiological needs (food, water, shelter)

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

www.danielberroya.blogspot.com 9

2. Individuals needs, wants
& demands
 Individuals needs to be hip with their peers,
active-fun lifestyle and healthy life.

 Individuals select Vita Coco over other liquid
beverages because of proven health benefits,
fresh coconut taste, global credibility, price, ready-to-
drink, affordability and endorsed by pop celebrity
idols. FDA approved.

Vita Coco celebrities
rihanna, madonna,
lindsay lohan.

2. Individuals needs, wants
& demands
 Individuals demands thirst quenching,
fresh and natural coconut taste. Vita Coco
water is so nutritious and beneficial that it is
said to have everything that is good for you.
It is in hip ready-to-drink packaging
could last for 12 months refrigerated.

 100% NATURAL
 NO FAT. NO CHOLESTEROL
 FIVE ESSENTIAL ELECTROLYTES.


3a. Coconut water is the
newest and hottest drink with
many indirect competitors.
 Direct: (new players)
LIPA FRUITAS

 Indirect: (new players)


3a. Coconut water is the
newest and hottest drink with
many indirect competitors.
 Variables: social status, price, packaging,
branding, availability, health benefits,
Philippine Product – export quality,
marketing campaign and promotion.

Madonna
campaigns…


Buco water is nutritional for all
ages. Vita Coco dominates for
active individuals due to
promotion. Price vs. Age Matrix
Price/ 0-13 yrs 13-24 yrs 25-49 yrs 50yrs up

Age
Matrix
High
price Vita Vita
Vita Vita
Lipa Lipa Lipa Lipa
Low fruitas fruitas
Price fruitas fruitas


as of 2011
Example of a benefit positioning
vs. brand map for toothpaste
Benefit Positioning vs. Brand Matrix

Harder to stand out amidst the competitive clutter.

4. Vita Coco can be potential
market leader

Vita Coco offers:
1. Attractive yet portable packaging
2. Long shelf-life up to 12 months
3. Endorsed by globally and renown
personalities
4. Nutritional benefits
5. Substitute as an energy drink.
6. Fresh, Natural, and “Young-coconut” taste.


4. Vita Coco can be potential
market leader

 Vita Coco will come in as a new player and
not as a local.
 Price is mid priced, 10%-20% below/above
local competitors.

USA
To
PHILiPPINES


4. Brand Positioning

 “Hydrate Naturally”
 Vita Coco is stacked with potassium, and is as natural as
natural gets (some say it’s like putting a straw in a coconut).
Vita Coco is about hydration. It’s okay if you’re not a marathon
runner, a football player or a Tour de France winner. Life is
hectic enough, and you should be hydrated while you live it.
Go ahead, get hydrated and remember that life is a sport.

Source: http://vitacoco.com/our-products/


5a. Coconut water estimated
market size based on inquirer and
Philippine Coconut Authority.

There is an increasing
number of coconut
local consumption and
export demand for the
past years. Annual
growth rate is 40%.


5a. Coconut water estimated
market size based on inquirer and
Philippine Coconut Authority.
“Vita Coco will invest
15 million USD in the
Philippines for the next
4 years. The market
for coco water is
increasing by 40%
annually.”


5b. Fruit Beverage is 17.2%
sales value share in 2005.
Total Liquid Beverage Industry

Source: Pepsi IPO Prospectus

5b-c. Based Vita Coco data,
there is annual increase of
40%, investment of $15million
1. Vita Coco investment in the Philippines
because of opportunity of $15 million.

2. Vita Coco and statistics shows 40% increase
annually for buco.

3. Then total coconut potential market size is
$15 million/40% = $37.5 million.
Source: Pepsi IPO Prospectus

5c. Consumer data indicates
size of $ 2.5 million (potential)

1. $1 million out of $15 million
potentially generated locally.

2. $ 1M / 40% = $2.5 million.


5. Global Potential market
size produced locally in
Dollars.
1. Competitor data= potential of $2.5 million
covers local market only.
2. Company data = 37.5 million based on
potential market globally produced locally.
3. Customer Usage data = 37.5 million based
on potential market globally produced
locally.


6a. Vita Coco superior display
and potential local leader.
US display in the
supermarket
which offers
other new buco
mixed flavors.

Lipa is distributed
limitedly to few
food chains while
fruitas are in stalls
in the malls (both
not found in
Limited supply Display in stalls supermarket)


6a. Show how product looks
vs. competition (indirect)

Coffee and Energy drink Mineral water
children juice and artificial
drinks juice drink.


6b. What makes Vita Coco
different as a product?

 Only Vita Coco with shelf-life up to
12months.
 Only Vita Coco in tetra pack in different
sizes and new buco mixed flavors.
 Only Vita Coco taste like a fresh, natural
and young-coconut taste.
 An energy drink with health benefits


7. Vita Coco not locally
available yet. – pricing

 Lipa comes with PET bottled and in-
canned with price range of 35-45 pesos
small servings (200-350ml) While
Fruitas served in cups with prices of 30-
40 big servings (250-700ml).
 Vita Coco is mid priced, 10%-20%
below/above local competitors.


8a. Vita Coco will use TV, events
and experiences, and word of
mouth

8a. Vita Coco will come up hip
commercials for active
individuals and “on-the-go
professionals.

Vita Coco Hip Commercial


8a. Vita Coco commercial with
fresh, natural and “real”
experience.

Vita Coco “real” customer experience


8a. Vita Coco endorsed by POP
ICON. (commercial)

Vita Coco RIHANNA


8a. Vita Coco as a Miracle Drink
(commercial)

Vita Coco is a Miracle Drink


8a. Vita Coco as an Energy Drink and
helps lose weight. (commercial)

Vita Coco “hydration”


8b. Lipa Buco found in
limited food chains only.

Lipa has different
packaging with
short shelf-life. It’s
distribution is
selected food
chains only. Weak
Promo mix.

8b. Fruitas Buco has some
mall “stall” outlets.

“Stall” outlets in some mall in
metro manila and provincial
areas.

Served in per cupped with
very short shelf-life yet it is
affordable.


9. Vita Coco will be distributed
nationwide partnering with giant
distribution networks.
 Where is your product available?
 Supermarkets, sari-sari stores, convenience
outlets, drugstores
 Nationwide
 Pick up by customers
 Cash and Card transactions.


10. Vita Coco is a potential
market leader.

Coconut water market has very big potential market
having local SME sized players.
 Vita Coco is to dominate target market ages 15-24 =

active individuals ; ages 25-35 = young
professionals.
 It has an excellent marketing programs and strong

advertising.
 Investments came from US and now to Philippines
with $15 million expansion budget.
 Channel through stable and expanding distributors.


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