A marketing plan describing Caleb's Kola's current position in the marketplace and the future steps necessary to attain their goals.

1. Arlina Cai, Gabriel Kates, Han Ren Lim, Steven Lukens, Robert Petts, Stephanie Zheng

2. AGENDA
• Context
• Caleb’s
• Competitive Landscape
• Addressing the Challenge
• Strategy
• The Marketing Mix: 4Ps

3. • Per capita soft drink
consumption is decreasing
• The soft drink industry is
declining at a more rapid rate
CONTEX
T
• Consumer awareness of the negative effects of soda consumption
• Obesity and diabetes epidemic
• Increase in soda prices due to increased prices of corn and sugar
The soda industry as a whole is in decline
Additional
Facts
Key drivers of
decline
Retail sales of U.S. carbonated soft
drinks
Sources: IBISWorld Business Environment Profile: Per capita soft drink consumption, Mintel Carbonated Soft Drinks - US - 2014

4. Page 1
Craft soda is 1% of the soda market in terms of units
CONTEX
T
= 90 million
cases
Craft soda
Sources: CNBC 2014
But the craft soda market is emerging

5. Page 1
CONTEX
T
Sources: Mintel Carbonated Soft Drinks - US -
2014
The craft movement is being driven by
new social trends and changes in
consumer taste

6. CONTEX
T
People buy craft soda because
Reasons People buy
Carbonated Soft Drinks
Like the flavor
For refreshment
To have as a treat
A favorite beverage
For energy
For Convenience
Reasons People Buy Craft Soda
Better taste
Authenticity
Quality
Smaller batches
Sources: Mintel’s Carbonated Soft Drinks - US - June 2014, Five Star Soda, PMQ

7. What is Pepsi doing to leverage
this trend?
CALEB’
S

8. Pepsi is moving into the craft soda industry
with Caleb’s Kola
Ingredient
s
1. Kola nuts from Africa
2. Sustainable fair trade cane sugar
3. “A special blend of spices from
around the world”
4. Citrus
5. Sparkling water
Nutrition
Facts
10 ounce glass bottle
110 calories
29 grams of sugar
0 grams of fat
50 milligrams of sodium
50 milligrams phosphorus
Current Distribution
Channels
(Collaborators)
Current
Customers
NYC Area (Brooklyn focus)
Pizza eaters
Costco shoppers
Deli patrons
Restaurant goers
Sources: Caleb’s Website
~100 retail stores (sold by bottle)
9 Costcos (sold by case)
32 restaurants (sold by bottle)
CALEB’
S

9. Weaknesse
s
Strength
s
Sources: Caleb’s Website
• Lack of Awareness in target market
• Lack of Understanding
• Lack of Availability
• Lack of Attractiveness
• Overall ineffective at attracting new
customers
• Access to large distribution
networks via Pepsi
• Economies of scale
CALEB’
S
Caleb’s currently has more weaknesses than
strengths

10. BUT Caleb’s value proposition offers
consumers a premium craft soda
• High quality ingredients -
kola nuts, cane sugar
• Sustainable sourcing of
ingredients
• Taste
• Thirst quenching
• Product design
• #honorincraft - coolness
• Caffeine
• Champagne like fizz
• Price
• Limited availability
• Calories
• Sugar
• Caffeine
Sources: Caleb’s Website
CALEB’
S
CostsBenefits

11. Sources: Caleb’s Website
The core competencies and
strategic assets
How Caleb’s can leverage it
Cash
Sustainable sourcing of premium
ingredients
Existing distribution channels
Caleb’s can piggy back on current distribution
channels to get Caleb’s into more restaurants
and stores
Economies of Scale
Can provide a better product for
cheaper
Relationships and experience
Caleb’s can use Pepsi’s professional network
and use Pepsi’s experience to optimize
operations
CALEB’
S
Caleb’s optimal value proposition leverages
its core competences and strategic assets

12. We need to differentiate Caleb’s
in a way that is conducive to achieving our goals.
COMPETITIVE
LANDSCAPE

13. Sources: Mintel’s Carbonated Soft Drinks - US - June 2014, Five Star Soda, PMQ
CALEB’
S
Value
Refreshment
Seeker
Energy
Seeker
Mixer Seeker Foodie Treat Seeker
Health
Seeker
Flavor M/H L H H H M
Fizziness L/M L H H M L
Thirst
Quenching
H L L M L M
Caffeine L H L L L L
Convenience H H M L L L
Authenticity L L L/M HH H H
Healthy L L L M/H M H
All natural
ingredients
L L L H H H
Pairs well
with food
L L M HH M L/M
Good for
mixing
L L H M L L
Heritage L L L H M M
Price H M M L L L
Soda customers value these attributes

14. Additional Brands: Dr. Browns, San
Pellegrino, Hansen Beverage
Company, SABMiller Holdings inc.,
Thomas Kemper Soda Co.
Products: Soda is basically all these
companies offer. But many companies
do offer different flavored sodas and
diet versions of those flavors.
JONE
S
REED’S
SODA
BOYLA
N
Sources: Google Images, Reed’s Soda 2014 10-K, Boylan’s Website, Jones Soda Websites, Reed’s Soda Website, Izze’s
Website
COMPETITIVE
LANDSCAPE
*Please refer to our competitors’ tab for more information
GROWN UP
SODA
Caleb’s has strong competitors

15. High
Me
diu
m
Low
Flavor Fizz
Thirst
Quenchi
ng
Caff. Conv. Authen. Healthy
All
Natural
Ingredie
nts
Pairs
well with
food
Good for
Mixing
Heritage Price
Sources: Google Images, Reed’s Soda 2014 10-K, Boylan’s Website, Jones Soda Websites, Reed’s Soda Website, Izze’s
Website
COMPETITIVE
LANDSCAPE
Caleb’s
Jones
Reed’s/Virgil’
s
Boylan
GuS
Caleb’s competitors have many different
value propositions

16. Values Caleb’s Jones Reed’s/Virgil’s Boylan GuS
Flavor M/H M H H H
Fizziness H M/L M/L M/L M/L
Thirst Quenching M L H H H
Caffeine M H H H L
Convenience L L L H M/H
Authenticity H L M/H M (decr). M
Healthy H L M M H
All natural
ingredients
H L H H M
Pairs well with
food
H L L M M/H
Good for mixing L/M L M H H
Heritage M/H L L H L
Price H L M L M
Sources: Caleb’s Website, Boylan’s Website, Jones Soda Websites, Reed’s Soda Website, Izze’s
Website
COMPETITIVE
LANDSCAPE
Caleb’s competitors have many different
value propositions

17. ADDRESSING THE
CHALLENGE
Values Caleb’s
Flavor M/H
Fizziness H
Thirst Quenching M
Caffeine M
Convenience L
Authenticity H
Healthy H
All natural
ingredients
H
Pairs well with food H
Good for mixing L/M
Heritage M/H
Price H
Value Foodie
Flavor H
Fizziness H
Thirst Quenching M
Caffeine L
Convenience L
Authenticity HH
Healthy M/H
All natural
ingredients
H
Pairs well with food HH
Good for mixing M
Heritage H
Price L
Sources: Mintel’s Carbonated Soft Drinks - US - June 2014, Five Star Soda, PMQ
The Foodies’ values align best with
Caleb’s value proposition

18. ADDRESSING THE
CHALLENGE
Value Foodie
Flavor H
Fizziness H
Thirst Quenching M
Caffeine L
Convenience L
Authenticity HH
Healthy M/H
All natural
ingredients
H
Pairs well with food HH
Good for mixing M
Heritage H
Price L
Sources: Mintel’s Carbonated Soft Drinks - US - June 2014, Five Star Soda, PMQ
How did you hear about new flavors and
ingredients?
• Value experiences with food
• Adventurous flavors
• Artistic and/or creative
• “Creative Class Millennials”
• Love sharing photographs of their food
• Spread food ideas through word-of-mouth
• Social media and food bloggers
Who are foodies? What do they value?

19. Sources: Mintel
ADDRESSING THE
CHALLENGE
• Millennials care about quality
• Are adventurous and want to try new things
• Grew up with social media
The profile of Foodies fit the description
of the Millennials
Value Foodie
Flavor H
Fizziness H
Thirst Quenching M
Caffeine L
Convenience L
Authenticity HH
Healthy M/H
All natural
ingredients
H
Pairs well with food HH
Good for mixing M
Heritage H
Price L

20. ADDRESSING THE
CHALLENGE
Retail Sales $10,000
Net Revenues 5,000
COGS
(3,250)Distribution Costs
Gross Profits 1,750
Marketing Budget (1,000)
Marketing
Contribution
$750
Given a marketing budget of $1 million
$10MM in retail sales / $1.75 per bottle = 5,714,286 units of Caleb’s
Caleb’s P&L (in
thousands)
Caleb’s financial goal is to reach $10 MM
in retail sales by Dec. 31, 2015

21. How will Caleb’s achieve its
financial goal?
STRATEG
Y

22. STRATEG
Y
Cities
% Millennials in
Population
# Millennials in
Population
Austin 16% 141,664
Salt Lake City 15% 28,677
Portland 15% 91,418
Los Angeles 14% 543,802
Denver 14% 90,930
D.C. 14% 92,245
Houston 14% 307,440
Las Vegas 14% 84,489
San Francisco 14% 117,242
Dallas 14% 176,120
Manhattan1
30% 484,800
• There are high
concentrations of
Millennials in the West
• Focus on college towns
Key Facts about
Millennials
Sources: U.S. Census Bureau, Nielsen’s Millennials – Breaking the Myths
The percentages of Millennial
concentration are very similar, so we
are looking mostly at the nominal #
of millennials in the population.
1 Manhattan is not technically a city, but a borough of NYC
The following cities have high concentrations
of milennials and are potential markets for
Caleb’s

23. STRATEG
Y
Sources: U.S. Census Bureau, Nielsen’s Millennials – Breaking the Myths
The five markets combined creates a
potential market size of 1.378 million

24. Heavy
Consumers
Moderate
Consumers
Light
Consumers
Total
Penetration Rate 10% 30% 60% 100%
# of Buyers 13,789 41,368 82,736 137,893
Purchase
Frequency
208 36 18 -
Purchase
Quantity
2,868,166 1,489,250 1,489,240 5,846,646
To reach our financial
goal
we are assuming 10% yield
STRATEG
Y
Sources: Elaborations on craft soda market
2 This number comes from the P&L
We need to reach approximately 1.37
million people in order to achieve sales of
approximately 5.7 million2

25. Sources: Caleb’s Website, Competitors’ websites
STRATEG
Y
So how should Caleb’s position itself to
attract this target?

26. We don’t want to compare ourselves to any other craft sodas in the market
because we don’t have a main competitor. We don’t want to dominate the
market, but rather want a healthy portion of it.
Rational
e
STRATEG
Y
Non-Comparative Positioning
Statement
Caleb’s is the craft soda for foodies because it has a smaller and
more champagne like fizz which pairs better with food because
the fizz does not dominate the meal.
We think that the non-comparative
positioning statement is best

27. Sources: Google Images, Reed’s Soda 2014 10-K, Boylan’s Website, Jones Soda Websites, Reed’s Soda Website, Izze’s
Website
Create Awareness
Create Trial
Create Understanding
Create Attractiveness
Create Availability
Caleb’s is a new brand, so brand awareness is extremely low.
Because Caleb’s is a new brand, customers do not know their value proposition.
Caleb’s needs to convince consumers that it is an attractive product
Caleb’s has very limited availability, so customers who want Caleb’s
will be very discouraged when they can’t find it available in stores.
We need to work on all of the above to get customers to try the product.
Repeat!
STRATEG
Y
Caleb’s should focus its marketing goals on
creating awareness and understanding

28. Implementation:
The Marketing Mix
THE MARKETING
MIX

29. THE MARKETING MIX:
Product
Why?Why?
Because we want
Caleb’s drinkers to
think of an indulgent
experience whenever
they see or drink
Caleb’s
The essence of the Caleb’s brand is
indulgence

30. THE MARKETING MIX:
Product
Caleb’s core product benefit is high
quality indulgence

31. THE MARKETING MIX:
Product
To convey our positioning, Caleb’s
association with food must be strengthened

32. Sources: Google Images
THE MARKETING MIX:
Product
#CalebsCompletes
encourages consumers to
share their food pairings on
social media
This description of the
bubbles increases consumer
understanding of Caleb’s and
increases the value that
consumers see in Caleb’s.
Add a tag to the back of the bottle
explaining why its bubbles are better with
food

33. Sources: Primary market research, Caleb’s website
THE MARKETING MIX:
Place
To maintain the authenticity of the brand, we
should be looking to restaurants/cafes that
are more intimate/small.
Choosing the right restaurants will enhance
our reputation with foodies
Ideal restaurant profile should be in line with
our brand identity of indulgence/authenticity
58% Would drink soft drinks with pizza
42% Would drink soda with burgers
We would like to move into pizza and burger
restaurants
because according to our market research
We want to continue expansion into more
restaurants

34. Sources: Numbers based on 100-300 average restaurant goers per day in a restaurant
THE MARKETING MIX:
Promotion
Bottle purchases per day 20
Bottle purchases per month 600
Case sales required to reach goal (12 bottles/case) 50
Order Frequency 12
Total Orders per year 600
Number of restaurants required to achieve goal 800
Number of cities expanding into 5
Number of restaurants required per city ~160
3 Please refer to index for a detailed breakdown
In order to reach our financial goal, we
need to target about 160 restaurants in
each city3

35. Trade Promotion (push
tactics)
Consumer Promotion (pull
tactics)
• “Buy one get one” deals
• Display Caleb’s on the counter
with sample food
• Give out free stickers with the
cases for restaurants and cafes to
give to their customers
• Sampling
• Increase social media presence
through bloggers
• and through #CalebsCompletes
campaign
• Recommendations on what food to
pair with Caleb’s (with possible
alteration to packaging to include
something about this on the bottle)
THE MARKETING MIX:
Promotion
Goal: Increase awareness and induce
trial
Goal: Obtain initial distribution
We recommend the following tactics

36. Sources: Google Images, Mintel’s Innovation on the Menu: Flavor Trends - US - June
2014
THE MARKETING MIX:
Promotion
$513K Stickers
$40K Bloggers
$447K Sampling
$1 M Total
Marketing Budget Allocation
4 Please refer to index for a detailed breakdown
To increase awareness of Caleb’s, we
recommend spending on stickers,
bloggers, collaborations, and sampling4

37. Moving into the future
STRATEG
Y

38. Sources: Google Images, Mintel’s Innovation on the Menu: Flavor Trends - US - June
2014
THE MARKETING MIX:
Place
“influential foodies to connect and share ideas and recipes.
Unfortunately, for the restaurant industry, this has created a
league of confident, at-home cooks that have been inspired by
beautiful pictures, blog posts, boards, and pins found on the
internet, and have been replicating or creating their own one-of-a-
kind dishes at home versus going out to eat.”
We need a way to enter into foodies’ at home eating
occasions
Foodies are eating out, but they are also
eating at home more

39. Sources: Google Images, Mintel’s Innovation on the Menu: Flavor Trends - US - June
2014
THE MARKETING MIX:
Place
The number of niche format super markets like Whole foods
are growing by 69%
Niche supermarkets like Whole Foods is
the next step for Caleb’s distribution

40. Sources: Google Images, Mintel’s Innovation on the Menu: Flavor Trends - US - June
2014
THE MARKETING MIX:
Place
Foodies go to supermarkets like Whole Foods because they
buy the most organic goods out of all consumers and Whole
Foods caters to this type of food consumer 6
Whole Foods’ brand image would give credibility to Caleb’s
authenticity and high quality core and essence
Niche supermarkets like Whole Foods is
the next step for Caleb’s distribution

41. Thank
s

42. GU
S
GROWN UP
SODA
Sources: Google Images, Reed’s Soda 2014 10-K, Boylan’s Website, Jones Soda Websites, Reed’s Soda Website, Izze’s
Website
• Founded in 2003
• Emphasis on 100% Natural
• “Not too sweet,” 90-98 Calories
• Social Media Platforms: Facebook, Instagram, Twitter
• Wide distribution, available for purchase in most
states
• “Dry” sodas: blackberry, cola, pomegranate, Valencia orange, Meyer
lemon, cranberry lime, root beer
• “Extra Dry” ginger ale
• Star ruby grapefruit
Key Facts
Product Line
Promotion and Communication

43. Index

44. Sources: Numbers based on our calculations for bottles from P&L
THE MARKETING MIX:
Place
Retail Sales $10,000,000
Net Revenues 5,000,000
COGS
Distribution Costs
(3,250,000)
Gross Profits 1,750,000
Marketing Allocation
Stickers (513,000)
Sampling (447,000)
Bloggers (40,000)
Marketing Budget (1,000,000)
Marketing Contribution $750,000
Retail Sales $10,000,000
Bottles Required to Achieve Target 5,714,286
Potential Market Size 1,378,893
Yield 137,893
Heavy User Moderate User Light User
Penetration Rate 10% 30% 60%
# of Buyers 13,789 41,368 82,736
Purchase Frequency 208 36 18
Purchase Quantity 2,868,166 1,489,240 1,489,240
Assumptions:
Bottles required to achieve target sales is based on $1.75/ bottle
10% yield of potential market
Heavy users consume 16 times a month
Moderate users consumer 3 times a month
Light users consume 1.5 times a month
2

45. 3 In order to reach our financial goal, we
would need to target about 160 restaurants
in each city
Sources: Numbers based on our calculations for bottles from P&L
THE MARKETING MIX:
Place
Target goal (Units) = 5.8 million = 480,000 cases (assuming 12 bottles per case)
Estimated number of bottle purchased per restaurant/cafe per day: 20
Estimated number of bottles required per restaurant/cafe per month: 600 (20 x 30)
Estimated number of cases: 50 (600 / 12)
Estimated order frequency: Monthly
Total order size: 600 per year
Number of restaurants to meet the target goal: 800 ( 480,000 / 600)
Number of cities to expand into: 5
Number of restaurants/cafe per city: ~160 (800 / 5)

46. 4 Elaborations on the budget allocation
Sources: Numbers based on our calculations for bottles from P&L
THE MARKETING MIX:
Place
Stickers 3 stickers per bottle
12 bottles per
case
Selling 475K cases
this year
17.1 million total
stickers needed for
distribution
Assuming
each sticker costs 3 cents to
make (a conservative estimate
because online purchase price
is 3 cents for average
consumers)
17.1 million x .03
$513K total
spending on
stickers
Bloggers
$8K to collaborate with each
blogger because commissions
even for small bloggers can
average in the thousands
5 bloggers
$40K spending on
blogger
collaboration
Sampling
We are distributing the rest of
our budget for sampling

47. 5 Caleb’s is in the Introduction phase,
moving into the growth phase of the
product life cycle
Sources: Google Images, Product Handout
THE MARKETING MIX:
Product
Characteristics of Caleb’s in the Market:
- Small, but growing, market size
- Market growth is increasing from low to higher
- Competition is increasing from low to higher
- Product is still limited
- Distribution is still limited
- Price is still penetration/skimming
- Promotion is still on awareness and is beginning to stress positioning

48. 5 Caleb’s is in the Introduction phase,
moving into the growth phase of the
product life cycle
Sources: Google Images, Product Handout
THE MARKETING MIX:
Product
Characteristics of Caleb’s in the Market:
- Small, but growing, market size
- Market growth is increasing from low to higher
- Competition is increasing from low to higher
- Product is still limited
- Distribution is still limited
- Price is still penetration/skimming
- Promotion is still on awareness and is beginning to stress positioning
6 Millennials buy the most organic food
Sources: Numbers based on our calculations for bottles fr om P&L
THE MARKETING MIX: Place

49. Primary Research
We used a survey to find out how college consumers
viewed pairing soda with their food. These results may
be a bit skewed because we only surveyed NYU
students, but we also believe that these results are
most consistent with those that we would find in our
recommended cities.
Survey Results

50. Sources: Google Images, Reed’s Soda 2014 10-K, Boylan’s Website, Jones Soda Websites, Reed’s Soda Website, Izze’s
Website
Superior fizz
Inferior fizz
Good
Taste
Caleb’
s
Bad
Taste
Reeds
Boylan
Jones
STRATEG
Y
GuS
Caleb’s should position itself on its high
quality fizz and …

51. Sources: Google Images, Reed’s Soda 2014 10-K, Boylan’s Website, Jones Soda Websites, Reed’s Soda Website, Izze’s
Website
Pairs well with food
Caleb’
s
Doesn’t pair well with food
Reeds
Boylan
Jones
STRATEG
Y
Superior fizz
Inferior fizz
GuS
Caleb’s should position itself on its high
quality fizz and “pairs well with food”