This document contains a marketing plan for a new ready-to-drink bubble tea product called "Bubble Buzz" to be launched by The Coca-Cola Company. It includes an analysis of the industry, target market, competition, and customer. A marketing strategy is proposed focusing on product design, pricing, placement, and promotional activities. The objectives are to create awareness of the new product, gain market share in the functional drinks segment, and make Coca-Cola the market leader in that segment.
The cola wars are a series of mutually-targeted television advertisements and marketing campaigns since the 1980s between two long-time rival soft drink producers, The Coca-Cola Company and PepsiCo. The battle between the two dominant brands in the United States intensified to such an extent that the term “Cola wars” was used to describe the feud.
In this presentation discussed regarding Rivalry between Cocacola and Pepsi
The cola wars are a series of mutually-targeted television advertisements and marketing campaigns since the 1980s between two long-time rival soft drink producers, The Coca-Cola Company and PepsiCo. The battle between the two dominant brands in the United States intensified to such an extent that the term “Cola wars” was used to describe the feud.
In this presentation discussed regarding Rivalry between Cocacola and Pepsi
A detailed analysis and interpretation on Coca-Cola and Pepsi, conducted with the help of responses of questionnaires, collected from 100 consumers. Contents: 1. Introduction 2. Literature Review 3. Research Methodology 4. Analysis & Interpretation with graphs & pie-charts 5. Conclusion
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
Marketing Strategies of Coca-Cola India | MBAtiousaneesh p
Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%. Up till 1977, Coca-cola was the leading soft drink brand in India.But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable.
Coca-Cola got the permission to enter the country with a 100 per cent unit in India. On September 22, 1993, the company bought out the Parle brands. As an entry strategy, Coca-Cola India took over Parle Foods. With a fine and detailed distribution network in place, Coke was now ready to take on archrival over a period of time, Coca-Cola India also bought certain bottling units that earlier belonged to Parle or individual distributors.
The project is completed by Pritam Mukherjee of PIBM, Pune pursuing MBA and contains the data of different products of Coca- Cola, their variants and the prices of those variants and distribution methods. The product mix of Coca- cola for both international and Indian market and the pricing methods adopted by the company, the report also contains different prices for different types of market namely, Kirana stores, retail outlets and online. Inventory Turnover Ration of Coca-Cola 2019. The data is of 2020.
Cola Wars have continues till date. This presentation presents an analysis of the case Cola wars continues in 2006.
Find out what we have to say about the classic case of competition.
A complete presentation on the company Pepsi and analysis of it from marketing point of view including a brief about the company's history and its competitors, SWOT Analysis, Segmentation, Targeting and Positioning and 4P's followed by recommendations at the end.
A detailed analysis and interpretation on Coca-Cola and Pepsi, conducted with the help of responses of questionnaires, collected from 100 consumers. Contents: 1. Introduction 2. Literature Review 3. Research Methodology 4. Analysis & Interpretation with graphs & pie-charts 5. Conclusion
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
Marketing Strategies of Coca-Cola India | MBAtiousaneesh p
Coca-Cola was the 1st international soft drinks brand to enter India in early 1970’s. Indian market was dominated by domestic brands, with Limca being the largest selling brand. Cola was the largest selling flavor with market share of 40%, Lemon drinks 31% and orange drinks only 19%. Up till 1977, Coca-cola was the leading soft drink brand in India.But due to norms set by the Foreign Exchange Regulation Act (FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula as well as reduce its equity stake which was not acceptable.
Coca-Cola got the permission to enter the country with a 100 per cent unit in India. On September 22, 1993, the company bought out the Parle brands. As an entry strategy, Coca-Cola India took over Parle Foods. With a fine and detailed distribution network in place, Coke was now ready to take on archrival over a period of time, Coca-Cola India also bought certain bottling units that earlier belonged to Parle or individual distributors.
The project is completed by Pritam Mukherjee of PIBM, Pune pursuing MBA and contains the data of different products of Coca- Cola, their variants and the prices of those variants and distribution methods. The product mix of Coca- cola for both international and Indian market and the pricing methods adopted by the company, the report also contains different prices for different types of market namely, Kirana stores, retail outlets and online. Inventory Turnover Ration of Coca-Cola 2019. The data is of 2020.
Cola Wars have continues till date. This presentation presents an analysis of the case Cola wars continues in 2006.
Find out what we have to say about the classic case of competition.
A complete presentation on the company Pepsi and analysis of it from marketing point of view including a brief about the company's history and its competitors, SWOT Analysis, Segmentation, Targeting and Positioning and 4P's followed by recommendations at the end.
During our Marketing Management course, we were assigned to make plan for launching an innovative product.
The idea of Healthy Straw is that it has capability to filter out sugar and you will sip an extreme chilled drink with no sugar and same taste.
Note: No such product exist, it is an imaginary product.
Bubble spotting - Subprime Mortgage crisis / Housing bubble 2007-2008Benjamin Van As
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Business plan for bubble tea and boba tea at bubble tea zonebubbleteazone1
Selling boba tea and bubble tea can you make you money. Start bubble tea and boba tea business plan at bubble tea zone. Visit this presentation to know more.
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The partnership underlying the joint venture between Starbucks and PepsiCo. Displayed using the business model canvas. Post on this case can be found here: wp.me/p1GXjP-bX
IntroductionTeam 9 Consulting will be working with Coca-Cola t.docxnormanibarber20063
Introduction
Team 9 Consulting will be working with Coca-Cola to develop an analysis of their marketing strategies. We’ll discuss various facets of the industry and the company and provide a recommendation for their marketing department.
The specific product line that we will be focusing on in our marketing plan is on the Coca-Cola brand drink itself, or Classic Coke. Coca-Cola does have many varieties of Coke, such as Coca-Cola Life, Diet Coke, and Coke Zero that will be touched on throughout this report as well.
Market Profile
Coca-Cola (NYSE: KO) is the world's largest beverage company with over 500 brands and 3,900 beverage choices (Coca-Cola, 2017). They aim to continue their growth and “refresh the world” by starting within and making the company a better, more sustainable one. Their main competitors in the beverage industry are Pepsi and Dr Pepper Snapple Inc. (Reference.com, 2017)
Coca-Cola has strong values that guide their business philosophy: Coke supports ideas such as family, togetherness, happiness, and community. This is strongly reflected in their company vision statements.
Mission Statement (Coca-Cola, 2017):
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
· To refresh the world...
· To inspire moments of optimism and happiness...
· To create value and make a difference.
Coca-Cola mainly manufactures and sells Carbonated Soft Drinks (CSDs). As of December 2016 Coca-Cola led the CSD sector with a market share of 40.7% which resulted in approximate sales of $18,630.8 million (Mintel, 2017).
The CSD market is a multi-billion dollar industry seeing approximately $36 billion dollars in revenues each year (Stivaros, 2016). The industry has been in decline in recent years, with CSD sales forecasted to continue falling. The graphic below (Mintel, 2017) illustrates this decline.
Growth Strategy
Coca-Cola has two main growth strategies: strategic initiatives and product development.
Strategic initiatives:
James Quincey, President and COO of Coca Cola, has spoken recently about Coca-Cola’s growth strategy (Bailey, 2016), which is based on the following five initiatives to restore momentum and transform the business: focus on productivity, streamline organization, make disciplined investments, adapt a segmented approach to driving revenue, and focus on its core business model.
Coca-Cola’s business approach of segmenting its operations, such as outsourcing all of their bottling to partners (Coca-Cola, 2017), helps them keep costs low and increase their overall profits.
Product Development:
During a conference call during their 3rd Quarter in 2016 (Bailey, 2016) their Chief Operating Officer noted the following strategies:
· Expanding their sugar free range of sodas
· Working on reformulating existing products to contain less sugar
· Packing their soda in smaller containers
· Expanding their range.
Fils-Aime 13
Valdirene Fils-Aime
Michael Matvichuk
CMGMT 4140 -- Strategic Management
Project: Five-Step Strategic Management Plan Analysis
Coca-Cola Company in the beverages industry
Step I. Corporate Mission and Goals
Brief history of the background and evolution of the organization
Coca-Cola Company is the manufacturer of Coke or Coca-Cola soft drinks. The company was founded in 1886 by John Pemberton. He was inspired by his curiosity as he stirred up a fragrant, caramel-colored liquid that he brought down to a place called Jacobs’ Pharmacy. There he added carbonated water and let several customers sample the new concoction. Although John Pemberton invented Coca-Cola, which is a carbonated soft drink, he later sold it to businessman Asa Griggs Candler, whose smart marketing tactics made the soft drinks to dominate the world of beverages in the entire 20th century. During the introduction stage into the market, the company used to sell nine drinks in Atlanta per day, but currently it is selling more than 19400 beverages every second around the globe (Moran). Its advertising strategies have changed to reach greater markets. Today Coca-Cola is one of the best-known brands around the world. However, when the company started, it used free coupons to promote its product. When Griggs Candler acquired the company, his budget to promote the product was $11,000. In 2011, the company allocated $4 billion for the marketing of its products (Moran). Also, over the decades the bottling of the beverages has changed to differentiate it from other close substitutes. These changes have also been seen in the company logos.
Mission and Vision
Coca-Cola has aimed to maximize its profit while keeping long-term sustainable growth in the beverage industry. The mission statement of the company states that it aims to refresh the world, inspire the moments of happiness and optimism, and create value and build a difference in the world. The vision of the company is their road map and acts as a guide to every aspect of their business by explaining what ought to be accomplished to achieve sustainable and quality growth around the world. It appears that the vision of Coca-Cola consists of 6 P’s which are people, portfolio, partners, planet, profit, and productivity. The company’s values include integrity, collaboration, accountability, diversity, leadership, passion, and quality (“Mission, Vision & Values”). The winning culture of the company explains its behaviors and attitudes that will make their vision 2020 a reality.
General Structure and Leadership Style
The organizational structure of the company is structured in such a way that it operates smoothly, and the growth of the company is enhanced. The company is composed of fifteen board members who include the CEO of the company James Quincey. The board members are all divided, and each of the board heads several other committees. Currently, the company is now divided into three regional groups, which include ...
case study on coca-cola. introduction, segmentation targeting and positioning . selling strategy, marketing planing, objective, swot analysis of the company.
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Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
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3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
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Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
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This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
2. Student Names & McGill ID
BRILLANT, Aïsha 260194236
CHENG, Chin-Yun 260014110
JOLIN LESSARD, Audrey 260180785
LEBLANC, Geneviève 260188501
MURCIA, Nicolas 260177704
NGUYEN, Jean-Louis 260078995
TIAN, Yu 260177360
Course Information
Marketing Management I
MCGR 352, Section 005
Professor: Constantina Kavadas
Marketing Plan
Part 1: Market and Consumer Profile
Date of submission: Wednesday, March 29th, 2006
2
3. The following marketing plan forms the basis for the introduction of an innovative new
product by the Coca-Cola Company. The analysis allows us to outline the best strategies
to follow for the achievement of the company’s strategic goals. “Bubble Buzz” will be
marketed as a unique functional drink while striving to reinforce the company’s status as
the leader in innovation and successful product launches. The marketing strategies will
enable to reach a market size of an estimated 8,688,300 people (targeted) with a
forecasted sales growth prospect of 7.3% over the next 4 years, while satisfying the needs
of the still-unserved market for ready-to-drink bubble tea. Success will be reflected by a
sizeable capture of market shares within this market, while strategically carrying the
company up to the top spot as the market leader in the functional drinks segment of soft
drinks.
Brief description of the company
The Coca-Cola Company’s core undertaking is
to benefit and refresh everyone it reaches.
Founded in 1886, we are the world’s leading manufacturer, marketer, and distributor of
non-alcoholic beverage concentrates and syrups, which are used to produce nearly 400
beverage brands that make up for our wide portfolio. Our corporate headquarters are
established in Atlanta, and we are holding local operations in over 200 countries around
the world. Our activities cover all sectors of the beverage industry. We are the second
leading player in functional and Asian specialty drinks, while ranking number one in
value for the ready-to-drink tea sector (ref.1, p.1).
3
4. Brief description of the new product, & strategic role in the future position of the company
“Bubble Buzz” will be a bottled beverage
and will be positioned as the only ready-to-drink Bubble Tea product available on the
market. The beverage will have a green tea base with enhanced fruit flavors (passion
fruit, strawberry and lime) as well as tapioca pearls. It will bring an entirely unique
drinking experience to its consumers. It will present itself as a funky and unusual
alternative to traditional tea while providing the great taste of authentic fruit juice in an
attractive and convenient packaging. The strategic role of Bubble Buzz for The Coca-
Cola Company is centered around three objectives:
To stay at the forefront as the market leader in innovative product introductions and
successful product launches;
To strengthen and satisfy the needs of the more adventurous Generation Y consumers
with a new eye-catching and FUNctional product;
To become the market leader in the functional drinks segment with increased market
shares.
INDUSTRY ANALYSIS
Consumption: The sales volume for the functional drinks segment (ref. D2) in Canada
has reached $342.2 millions in 2004 for a volume of 125.9 million liters (ref.2). This
product segment has shown a steady growth since 1999: an increase of 13.5% over a
period of 6 years (Appendix A). The consumption rate per capita in 2004 has reached
4
5. 3.94 liters, which represents a 4.0% increase compared to 1999 (ref.3). The growth of this
particular market is largely due to a slow shift in consumer trends.
Trends: Through the early 1960s, soft drinks were synonymous with “colas” in the mind
of consumers. In the 1980s and 1990s, however, other beverages (from bottled water to
tea) became more popular. Coca-Cola and Pepsi responded by expanding their offerings
through alliances (e.g. Coke & Nestea) and acquisitions (e.g. Coke & Minute Maid), but
also by focusing efforts on portfolio diversification. Today, while the soft drink
industry’s value has increased in 2004, the volume sales of carbonated soft drinks has
declined due to a large proportion of consumers who are opting for the trend towards
healthier alternatives in the functional drink segment (energy drinks, smoothies, milk &
juice drinks, sports drinks) as well as bottled juices and water (ref.5). Companies have
been actively engaged in new product developments in order to counter the growing
concerns about negative health impacts of high-fructose drinks, but also to increase the
demand in a market where product offerings are quickly maturing (ref.4). New flavor
introductions and health-conscious formulations have been launched in an attempt to
offset the decline in carbonated soft drink sales (ref.6). The functional market is expected
to show sustained growth and consumer interest in the future years as consumption shifts
to trendier, healthier and more sophisticated products (ref.7).
Profitability & future growth potential: In 1993, Concentrate Producers earned 29%
pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total
industry profitability of 14%. While the functional drinks sector only accounts for 3.7%
of the total soft drinks sales in 2004 (Appendix B), estimates are forecasting a growth of
7.3% in sales and 11.0% in volume consumption by 2009 (ref.4).
5
6. SWOT ANALYSIS (Strengths and weaknesses, opportunities and threats)
Strengths Weaknesses
Brand strength Reliant upon line extensions
Effective stride in new markets Reliant upon particular carbonated drinks
Results of operations Brand dilution
Strong existing distribution channels Entrance into difficult non-core categories
Saturation of carbonated soft drink segment
Opportunities Threats
New product introductions Strong competition
Brand is attractive to global partners Potential health issues
Free trade
Explanations in APPENDIX C
COMPETITION
Coca-Cola’s top competitors for the soft drinks industry are PepsiCo (31.6%) and Cadbury-
Schweppes (15.8% of market), which combined, represent about 48% of the total market
(ref.9). Coca-Cola is leading with 43.7% of the total soft drinks market.
In the functional drinks sector, PepsiCo is the current market leader with 60.5% of the
market shares in 2004. Coca-Cola Co is second with 32.8% (ref.2, see Appendix D1). Bubble
Buzz will launch into a currently unserved subset of that market (RTD “Ready-To-Drink”
Bubble Tea), which is until now unexisting. It is anticipated that the following brands could
potentially compete with Bubble Buzz in the functional drinks market: Brisk, Lipton Iced
Tea, Sobe (owned by PepsiCo), as well as Snapple’s and Hawaiian Punch (owned by
Cadbury/Schweppes). Bubble Buzz also creates a potential situation for cannibalism with
Coca-Cola’s very own brands of iced tea and other functional drinks.
The current market for traditional Bubble Tea is fragmented, since the distribution is
restricted to local outlets and selling points such as counters and small Bubble Tea shops in
scattered locations across Canada. However, direct competition from these local players is
not anticipated, since the marketing roll-out will initially emphasize on product awareness
and both sales channels do not reach or serve the same market (retailing vs.
6
7. counter/restoration). A strong distribution system already exists with Coca-Cola, since
partnerships and channels are already in place. This will facilitate the product’s reach into its
target market. Further data concerning competing market shares and distribution channels are
available in Appendix D(1-3).
Barriers to entry:
Business practices Manufacturing
Due to the number of competitors, it will Producing bottled Bubble Tea requires
be hard to prevent imitation behaviour sizeable capital investments for the
(especially from PepsiCo) specific needs of the manufacturing chain
Risk of competing with emerging (from ingredients to final packaging
private labels (e.g. President’s Choice) specifications)
Given the wide array of brands The marketing campaign to make this
(saturation in the soft drink market), it unknown brand popular requires more
becomes a challenge for Bubble Buzz to promotional expenditures than a
stand out traditional brand extension
TARGET MARKET
Segment identification: RTD (Ready-to-drink) bottled Bubble Tea, to be established
within the Functional Drinks sector
Segment needs: The product will cater to both physiological needs (hydrating and
nutritional value) and social needs (perception of a social, fun drink with a sense of
belonging within peer consumer groups) – (ref.11, p.127).
Segment trends: The current trends include a shift away from junk foods and carbonated
drinks, a growing interest for healthier / beneficial products for the “mind and body” (ref.
10), the trend towards the availability of on-the-go products for those with an active
lifestyle, as well as the trend for personalization through customization (or for beverages,
through variety-seeking in a wide introduction of flavours – ref.6).
Segment growth potential: Statistical reports anticipate a segment growth of 1.72% over
the next 9 years (2015) for the 10-29 years old subsets (ref.12). Refer to Appendix E.
Size of the segment (population): 8,688,300 (329,600 L). Refer to Appendix E.
7
8. SEGMENTATION VARIABLES AND BREAKDOWNS FOR CANADIAN CONSUMER
MARKET OF BUBBLE TEA
MAIN DIMENSIONS VARIABLES BREAKDOWNS
Nationwide (all provinces and territories) with emphasis on
Region
urban / metropolitan areas, and adapted strategies for all
geographical groups
5000-19,999 to 4,000,000+
Area size
Urban, suburban
Density
All (East, West)
Climate
10-29 years old (teenagers, studying age and young adults)
Age
Male and Female
Gender
All under $30,000
Income
Occupation Students; new graduated; new workers; young professionals
Elementary 4th grade, High school, CEGEP and University
Education
All: Asian, Black, White, Native; other; with adapted strategy
Race
for Asian consumers already familiar with Bubble Tea
Renting apartment/condo, living with parents
Home
ownership (Highly discretionary in personal spending)
Personality Brand conscious, anchored in popular culture, inclined for
differentiation and sophistication, very tolerant towards
multiculturalism and internationalism (open-minded), quick
maturation with modern products
Most of them dependent on parents, no major responsibilities,
Lifestyle
highly influenced by peer groups, active life, importance of
school, work and social life
Benefits COMMUNICATION BENEFITS
sought -Nutritional information
-Informational text on history of product
FUNCTIONAL BENEFITS
-Healthier than soft drinks
-Convenient, easy to take out
PERCEPTUAL BENEFITS
-Quality/Premium price
-Social standing/good-looking
Usage rate Seasonal (peak in summer), daily-basis, weekly basis
User status Non-user, regular user (current user through existing bar-shops)
None, medium, strong
Loyalty
status
Positioning strategy: The only RTD bottled bubble tea available. Funky & eye-catching
bottle, functional packaging, premium-priced, cool, new and unusual, unique drinking
experience, aspects of play (tapioca pearls, oversized colored straw), variety of flavors,
sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks.
8
9. CUSTOMER ANALYSIS
Profile:
Name: Bob Thomson
Date of Birth: 25.03.85
Age: 20
Occupation: University Student
Country: Canada
Needs: Healthy lifestyle/Social belonging
People: Roommate/Friends/Family
Places: Clubs/Coffee shops/University/Gym
Activities: Basketball Team
Due to his active and quick-paced life, Bob wakes up at 6:30AM every morning. Today,
he puts on his trendy Lacoste Polo and Diesel Jeans, and of course, he always has his
Puma shoes on. After having called his friends with his new Samsung camera phone, he
leaves his apartment and goes to his gym by metro, while listening to his favourite music
that he downloaded to his iPod. Bob usually likes to work out before he has to head to
University. That way, he feels he has more energy and feels ready to confront his busy
day attending courses and getting things done. On his way to school, Bob knows he is
thirsty and he feels the need for something very refreshing. He stops at a convenience
store next to the gym. Standing in front of all the choices in the beverages aisle, one
particular bottle catches his sight. And he instantly recognizes the brand. He knows that
this is a bottle of Bubble Buzz, because not only does his other friends often drink it, but
he also heard them talk about this brand new product that Coca-Cola just launched. He
also previously saw Bubble Buzz ads when he surfed on his favourite websites. He grabs
a bottle, and takes a closer look at the nutritive information label. He is very pleased to
see that the new drink is more nutritive and definitely healthier than the other soft drinks
that were available on the shelves next to it. The higher price of the product doesn’t
bother him, since he perceives “Bubble Buzz” as a high-quality, functional product,
9
10. which is manufactured by a well renowned company. Plus, he did not feel like simply
buying bottled water, or carbonated soft drinks. Because of his inclination towards more
sophisticated tastes, and because he likes to try new products on his own, he thinks this
bottle is worth the price. Because of his busy schedule, Bob prefers to save time as much
as he can. Thus, he decides to buy two bottles. One to quench his immediate thirst, and
another one that he wants to save for later in the day. He sees that the packaging is so
convenient and easy to carry, and so when he exits the store, he puts the second bottle in
his backpack. He attends all of his classes. During his break, he always hangs out with his
friends. A lot of them are drinking from different “Bubble Buzz” flavours. He opens his
second bottle, since he had such a great experience with the first one. He liked that the
beverage was so unusual, yet refreshing. The drink surpassed many of his expectations.
He has no doubt about it. Bob will continue to buy Bubble Buzz for its good taste, and
also because at his age, he sees it is the coolest trend right now.
Based on the aforementioned analysis, Bubble Buzz appears to be a profitable and
innovative product with a strong outlook for market share presence and segment growth
opportunity. Upon implementation of the marketing plan, the Coca-Cola Company will
regain increased market shares and claim its targeted situational position of market leader
in the functional drinks segment as well as keeping its long-standing consumer
recognition for innovative and successful product launches in diversified markets. Further
analysis will be required in order to confirm the practicability and quantitative extent of
the marketing plan’s future potential for the company.
10
12. The objectives of the marketing plan are strategically centered around 3 criteria: to create
a strong consumer awareness towards a completely new bubble tea product from Coca-
Cola, to establish a wide brand recognition through the capture of market shares in the
functional drinks segment, and to become the top market leader in that particular segment
within the forecasted sales figures.
PRODUCT STRATEGY
The core
o Bubble Tea beverage in a pre-bottled, ready-to-drink format.
The actual product
o Packaging and labeling: see figure below
o Branding: colorful, aspect of play, round shaped, prominent Bubble Buzz logo written in
modern font, catchphrases such as “Think outside the Bubble” and “Get Your Buzz”.
o Trade name: Bubble Buzz™, a Coca-Cola product
o Brand personality: energy, funky, cool, functional, original, funny, healthy, etc.
o Brand equity: Coca-Cola provides a quality, consistent, innovative and accessible soft
drink reputation.
Augmented product
o Nutritional information, Status (social drink), Features promoting the website, Health
benefit of a green tea base (ref.17)
Marketing considerations
o Product life cycle: Bubble Buzz is a low-learning product. With a strong marketing
campaign, “sales [will] begin immediately and the benefits of the purchase are readily
understood” (ref.11, p.301). Since Bubble Buzz is prone to product imitation, Coca-
12
13. Cola’s strategy is to broaden distribution quickly, which is currently feasible thanks to the
company’s high manufacturing capacity.
o Product class: Food & beverage Soft Drinks Functional Drinks (refer to Appendix
D2 for a break-down of the functional drinks market).
o Bubble Buzz follows the practice of product modification (ref.11, p.304): Coca-Cola is
introducing an existing beverage (bubble tea) but redefines the drink with a new, more
convenient package. Bubble Tea will now become a widely available drink in multiple
retailing (distribution) channels.
PRICE STRATEGY
The price strategy that will be undertaken should consider the following aspects:
1. Consumer demand
2. The product lifecycle
3. Potential substitutes
13
14. Customer demand
Customer demand is a crucial factor which is driven by tastes, income and availability of
others similar products at a different price (mentioned later in the potential substitutes
section). For a lot of consumers, value and price are highly related: ‘’the higher the price,
the higher the value’’. Consequently, Coca-Cola’s intention to position Bubble Buzz as a
unique, innovative and attractive product gives it a certain control over Bubble Buzz
price. To be able to implement higher pricing though, the minimization of the non-
monetary costs to customers should also be include along with awareness of the product
(notably by advertising) and value (benefits) .
The product lifecycle
The company should take advantage also to the fact
that the newer the product and the earlier in its
lifecycle the higher the price can usually be. It ensures
a high profit margin as the early adopters buy the product and the firm seeks to recoup
development costs quickly and it also brings a certain prestige to the product.
Potential substitutes
Coca-Cola is constrained by the monopolistic market in which it competes. The main
characteristic however is product differentiation.
Other constraints (See Appendix M)
PROMOTION STRATEGY
Objectives:
• To initiate strong awareness about the launch of Bubble Buzz throughout
Generation Y (10-29 years old) consumers as well as their parents.
14
15. • To win market shares over our top functional drinks competitor, PepsiCo.
Message:
The promotional outputs will convey the clear message that “Bubble Buzz is a healthy
drink for sporty and young people who simply enjoy taking care of their body and life.”
Concepts:
• “Think outside the bubble”: Be Bold, Be Original, Be Different, Be Yourself.
• “A good spirit in a good body.”
• “For the out-of-the-ordinary individuals who like to challenge themselves.”
Media selection:
Before choosing the appropriate medias, it is important to note that Generation Y consumers
only give partial attention to media. However, they can be reached through integrated
programs. They are typically using more than one communication media at a time; a
behaviour that is often called “multitasking”. This group of consumers doesn’t give its full
attention to one single message, but rather uses continuous partial attention to scan the media.
Marketers can still communicate with Generation Y by using a variety of targeted
promotional tools. Another important tactic to reach our target market is through “Viral” or
“Buzz” marketing, which Coca-Cola will heavily use in this campaign (campus, contests).
Advertising:
Refer to APPENDIX H for detailed explanations
Output Examples
Television MTV, Much Music, VrakTV, YTV
Radio MIX96, CKOI 96.9, 94.7 FM, Universities
Magazines For girls: Cosmo, Elle
For boys: Sports Illustrated (or Kids edition)
Internet Banners on select websites (gaming, sports, etc.)
Official promotional website: www.BubbleBuzz.ca
Outdoors Billboards and prints in select areas including:
Campuses, transportation (bus, metro, stations)
Tourist areas in high seasonal periods
Outskirts of key cities in geographical reach
Others Not relevant
15
16. Personal Direct contact with retailers, sales kit strategies to be
selling explained later in the text.
Public Stands or special displays and events in schools, malls,
relations sports events (i.e. 2008 Beijing Summer Olympic
Games), sponsorship activities
Publicity Conferences, press releases (print and online), buzz
marketing through TV coverage
Promotional Mix:
Consumer oriented:
• Contests: “Win another Bubble Buzz flavour”, “Uncover a secret code underneath the
bottle cap and win sporting goods and electronics by logging on the website”, “Win a trip
for the 2008 Olympics in Beijing”. (Arguments: It will increase consumer purchases and
encourage consumer involvement with the product).
• Samples: distributed in supermarkets, school/universities. Samples are a way to avoid
product resistance since people are not used to find bubbles in their drinks. Arguments: It
will encourage new product purchases and it represents low risk for consumers since they
get it for free. They have nothing to loose by trying it.
• Point-of-purchase: in supermarkets (to reach the parents of generation Y). Arguments: It
is also a mean to increase product trial and provides a good product visibility.
• Others: In subsequent years, engage in product placement in TV shows or movies.
Trade oriented:
• Allowances and discounts: case allowance (Arguments: The “free goods” approach will
be used so it can encourage retailers to buy more of the product to get a certain amount
for free).
• Cooperative advertising: to encourage retailers to buy our product and to maintain our
high level of advertisement that consumers expect from Coca-Cola.
Other considerations:
• Scheduling of the advertising: Pulse scheduling (promotional presence year-round, but
emphasized and intensified before and during summer).
• IMC (integrated marketing communication)
Target Audience:
• Intermediary: personal selling will be more often used
• Ultimate consumer: Coca-Cola will use more of mass media because the amount of
potential buyers is large.
16
17. PLACE (DISTRIBUTION STRATEGY)
Bubble Buzz will be distributed through these channels: supermarkets, convenience
stores, independent food stores, discount stores, multiple grocers, vending machines,
direct sales.
Projected Financial Performance
$ 597,124.00 Based on sales @ different channel’s price
Revenues
COGS 214,964.64 Based on weighted average percentage in past data
C.M. 382,159.36 Revenues - COGS
Fixed Costs :
SG&A cost : 113,453.56 Half of the O/H costs estimated, based on past data
Capital expenditures : 25,676.33 4.3% of revenue, based on past data
243,029.47 CM – SG&A – Capital expenditures
Profits
Requirement for success analysis:
C.M. per bottle = 382,159.36 / 328,000 = $1.17
Break-even: (113,453.56+25,676.33) / 1.17 = 118,914 (bottles)
Market share: 118,914 / 1,000,000 = 11.9%
In one year, if Coca-cola can sell 118,914 bottles of Bubble Buzz, or in other words
achieve 11.9% of the functional drink market share, it will break even.
After this point, every bottle Coca cola sells will generate average $1.17 towards the
profits. The potential profits can up to $1,030,770.001 based on our target market.
Expected Costs:
COGS: $597,124 * 36% = $214,964.64
O/H: $597,124* 38% = $226,907.12
Expected Revenues (total) = $597,124
(refer to Appendix J)
1
$1.17*(1-11.9%)*1,000,000 = $1,030,770
17
18. China is the target country we’re going to expand our product.
Reasons:
1. With a total population of 1,313,015,000 in the end of 2005 and 327,714,000 in our target
market (age 10 to 25 years old), compared with the total population of Canada---304,453
million, there definitely is a great potential worth to work on.
2. absolute expenditure on food and non-alcoholic beverages is expected to increase from
1,777 billion in 2005 to 2,154 billion in 2010 (though the proportion of consumer
expenditure on this part is decreasing from 28.39% to 25.75% )
3. Soft drinks industry is one of the fast growing industries in China, especially
fruit/vegetable juice, RTD tea, and Asian speciality drinks and bottled water have shown
a sharp increase during 1998 to 2003.
4. Bubble tea was originated in Taiwan. Soon after its introduction in China, it became one
of the most popular beverages sold in tea stores on the streets due to the similar taste and
similar cultural background. So, it is a good chance for us to enter into this market.
5. Since we are the top sponsor for the upcoming Beijing Olympic in 2008. With more
opportunities to expose to the public, it is going to benefit our sale there.
Our entry-strategy for entering China is through licensing.
Reasons:
1. We have already provided licenses for manufacturing our products in China (licensing
the bottlers and supply them with our syrup required for producing). Therefore, added in
one or two more products in our production chain would not be that difficult.
2. It is relatively low risk when compared with direct investment there. It is low cost to
export our new products there since we can maintain lower labour cost and lower
material cost if we produce our products locally, especially in China.
Changes to be made:
18
19. 1. Price: Price sold in China is going to change to accommodate the local desire. As we set
our price sold in Canada $2.00. Compared to the price sold in the bubble tea store ($
3.50), it is about 57.14%. So, with the information we gathered from the tea store in
China2, the price sold there would be 57.14% of what sold in the tea store---$12 Yuen in
China currency. Then, it would be around $7 Yuen, about CAD$13.
2. Naming the product: In order to be recognized and accepted more easily for the local
market, we need not only translate our product name but also make sure there’s not
hidden unintended meaning that would damage our product.
3. Develop other flavours that would attract the local market: Since milk based bubble tea
sell better in China, we will add in this product line. Also, we will avoid using too many
artificial colors as they are not appreciated as much as in Canada. Moreover, people in
China are becoming more and more health concerned, especially the amount of sugar and
additives added in the drinks. We will make some changes in the ingredients used to
appeal the local market, i.e. less sugary drinks.
4. Promotion: In contrast to the radio ads in Canada, we will use more TV and Web
advertisement there due to the highly exposed environment in China. Also, we will put
more emphasis on the ads on the public transportation such as underground/subway
system and bus service due to the more frequent use of the public transport service there.
Also, since the outdoor display screen is quite popular in big cities, we will also take
advantage of it.
2
Appendix L (Prices in China)
3
The change of currency: CAD$1= CNY$ 6.88
19
20.
21. APPENDIX A (ref.2)
Off-Trade Consumption Indicators (Functional Drinks)
350.0
300.0
250.0
200.0
Million Litres /
Million $CDN
150.0
100.0
50.0
0.0 1999 2000 2001 2002 2003 2004
115.3 117.8 119.7 122.1 124.0 125.9
Volum e
296.7 312.1 318.1 324.7 327.4 342.2
Sales
APPENDIX B (ref.4)
Off-Trade Sales of Soft Drinks by Sector: Value 1999-2004
C$ million 1999 2000 2001 2002 2003 2004
Carbonates 4,651.40 4,726.30 4,828.20 4,991.10 4,959.60 4,938.90
Fruit/vegetable juice 2,135.20 2,239.60 2,347.00 2,454.60 2,497.60 2,613.10
Bottled water 385.9 447.3 551.2 666.8 763 859.4
Functional drinks 296.7 312.1 318.1 324.7 327.4 342.2
Concentrates 193 186.5 171.3 166.5 159.2 161.9
RTD tea 234 257.4 265 275.4 286.8 307.4
RTD coffee 0.2 0.4 0.6 0.8 0.9 1.1
TOTAL 7,896.40 8,169.60 8,481.30 8,879.90 8,994.50 9,224.10
Off-Trade Sales of Soft Drinks by Sector (2004)
Carbonates
Fruit/vegetable juice
Bottled water
Functional drinks
Concentrates
RTD tea
RTD coffee
TOTAL
22. APPENDIX C (ref.1 & 8)
STRENGHTS
Brand strength (see Appendix F for brand rankings)
The Coca-Cola Company is the largest manufacturer, distributor and marketer of nonalcoholic
beverage concentrates and syrups in the world. The Coca-Cola brand is unarguably one of the
most recognizable brands in the 200 countries where it sells its products. The strong brand name
is one of the basis for the company’s competitive advantage on several of its core markets.
Effective strides in new markets
Coca-Cola has partnered with several companies (such as the joint venture with Nestlé) in order
to increase the ability to react to demands and changes in the markets of iced tea, coffee and
juices. The developing markets are more complex than the carbonated soft drinks.
Results of operations
In 2004, net-operating revenues totaled approximately $21.9 billion, an 8% increase
from 2002. Gross profit totaled $14.3 billion in 2004. The company generated $5,968 million
from its operating activities and re-invests heavily into its business. The ability to generate
significant cash flows is one of the its key strengths (ref.16).
Strong existing distribution channels
Coca-Cola has operations worldwide and is well established in its distribution channels (such as
store retailers or vending machines). Therefore, a new product launch can typically rely on the
existing distribution system in order to reach the majority of its target market while requiring no
major supply / delivery developments.
WEAKNESSES
Relying upon line extensions
Coca-Cola is relying on brand extensions increase sales in specific lines, particularly its long-time
carbonated soft drink products (i.e. the introduction of Vanilla Coke helped maintain sales for the
core Cola beverages). However, there is a strong risk of cannibalizing existing sales in the long
term (for example, Bubble Tea might deter on sales for iced tea).
22
23. Reliant upon particular carbonated drinks
The long-time presence of Coca-Cola’s Coke beverage has established this particular line as a
flagship product. While the core Coke products bring a solid base of sales and loyalty to the
company, consumers’ expectations also become more and more anchored and single-lined, taking
away freedom in the areas of line diversification and product modifications (taste, packaging,
price).
Brand dilution
The tremendous amount of existing brands and new product being introduced by the company
could diminish the value and differentiating strength of each product that is being manufactured.
Entrance into difficult non-core categories
The Coca-Cola Company is a truly global multinational business giant. While some categories of
products are distributed in many areas of the globe (Coke, Powerade, etc.), geographical needs
already require that these global brands are heavily adapted to their target region. Furthermore,
many smaller and diversified product lines are more or less popular in one particular region over
another. Therefore, the process of diversifying the production and marketing each product
involves costly investments. These capital requirements typically increase as the product becomes
heavily focused (for example, since the Coca-Cola brand is highly recognizable worldwide,
marketing a bottle of Coke in Japan would be less difficult than marketing a bottle of “Qoo” in
that same country – “Qoo” being a lesser-known non-carbonated drink which was one of Coca-
Cola’s newest brand introduction in 1999).
Saturation of carbonated soft drink segment
Due to the countless number of brands available on the market, it becomes increasingly difficult
in the soft drinks segment to innovate and create new products that genuinely stand out from their
competition. And as we have seen, an analysis of the industry has shown that growth in the soft
drinks market becomes difficult and challenging when the conditions and consumer trends cause
a market demand that stays stagnant.
OPPORTUNITIES
New product introductions
The functional drinks market is one that particularly allows more innovation opportunities and
gives greater freedom for creativity in the design, production, manufacturing, distribution,
promotion and retailing choices and processes.
23
24. Brand is attractive to global partners
Because of the company’s size (including value, brand name and operating revenues) and wide
portfolio base, Coca-Cola enjoys a strong purchasing power over its suppliers, and also attracts
large partnerships with various levels of consumer reach (e.g. Burger King, movie studio
promotions, sponsorship agreements, etc.). Existing brand awareness also provides an
international playing field for powerful marketing strategies.
THREATS
Strong competition
Coca-Cola is competing in a global market that is characterized by an oligopoly between several
(but few in numbers) competitors. The fight for market shares and sales in crowded markets
becomes a complex one.
Potential health issues
The current trend of consumer and consumers groups’ awareness towards goods and services is
both beneficial and threatening for companies in the food and beverages industry. Over the last
few years, concerns over health issues have risen in the media through an expanded and ever-
growing network of “knowledge outputs” (journals, TV channels, internet and so on). The move
of the younger generation towards a healthier lifestyle call for careful planning and decision-
making in new product developments. Large companies can also easily become the target of
consumers’ apprehension.
Free trade
In an era of globalization, large international competitors can come out with comparative
advantages (the constant fight to remain the first mover and market leader in a long-term
spectrum). Issues arise when dealing with price competition and economic growth. Trade
organizations are also faced with public pressure which can disrupt operations in one or more
areas of the company.
24
25. APPENDIX D (ref.2 & 5)
D1. Off-Trade Company Shares of Functional Drinks by Value 2000-2004
% off-trade value rsp 2001 2002 2003 2004
QTG Canada Inc (PepsiCo) 56.4 58.2 59.5 60.5
32.2 32.4 33.1 32.8
Coca-Cola Ltd
Monarch Co, The 7.5 5.8 4.5 3.3
South Beach Beverage Co 1.1 1.1 1 1
GI Energy Drinks Corp 0.1 0.1 0.2 0.2
Snapple Beverage Group 0.1 0.1 0.2 0.2
Private label 0.8 0.8 0.8 0.8
Others 1.7 1.4 0.7 1.4
TOTAL 100.0 100.0 100.0 100.0
D2. Functional Drinks Sectors (Segmentation) by Value, 2005
*Based on United States report
D3. Functional Drinks Sales by Distribution Format (2004)
Distribution Channel % Sales
Supermarkets/hypermarkets 30.8
Independent food stores 2.8
Convenience stores 1.5
Discounters 5.9
Direct sales 0
Vending 0.1
Others 58.9
Total 100
25
26. APPENDIX E (ref.12)
Population by Age: 1990-2015
'000
2005 2010 2015
1990 1995 2000
10-14 yrs 1,877 1,997 2,056 2,111 1,963 1,868
15-19 yrs 1,938 1,980 2,096 2,157 2,228 2,068
20-24 yrs 2,124 2,009 2,070 2,264 2,348 2,426
25-29 yrs 2,583 2,185 2,076 2,209 2,438 2,529
TOTAL 8,741 8,891 Total (Canada) = 32,241
Source: National statistical offices, Euromonitor International
Note: as at January 1st
Functional Drinks:
Consumption growth (Liters) from 1998 to 2003: 0.06 per year
Projected consumption (Liters) in 2005: 4.12
Market size calculations (ref.14 & 15):
Total Canadian (10-29yo) Soft Drink Yearly Consumption (L)
# Male 10-29yo Yrl Consumption (soft drinks)
(Population) (Liters)
4,436,800 4,858,296 Total yrl consumption
(soft drinks – Liters)
# Female 10-29yo Yrl Consumption (soft drinks)
(Population) (Liters) 7,961,891
≈ 8 million Liters
4,251,500 3,103,595
Total Canadian (10-29yo) Functional Drink Yearly Consumption (L)
8,000,000 L x 4.12% (functional drink market share) = 329,600 L
329,000 L is approximately equivalent to 1,000,000 cans (355mL volume)
MARKET SIZE:
8,688,300 people
329,600 L
≈ 1,000,000 cans
The market size represents our targeted pool of consumers. Further analysis in the marketing
strategy plan will allow for estimates of the forecasted sales in the market segment specific to the
RTD Bubble Tea drinks.
26
31. APPENDIX J
CALCULATIONS
Based on Coca-Cola’s previous financial statements, we will see the average
COGS/Revenues for year 2005, 2004, and 2003 is 36%4. Similarly, Operating Costs /
Revenues = 38%5 Moreover, since our target market are 1,000,000 cans annually
assuming Coca-cola maintains its market share in functional drink 32.8%, we predict our
sales as 1,000,000 * 32.8% = 328,000 bottles.
We use the ratio of average capital expenditures / net operation income for North
America to estimate the fixed cost we need for producing Bubble Buzz in Canada: 4.3%6
of the total revenue.
Expected Revenues:
Supermarket Independent Stores Others Total
Price ($) 1.50 1.75 $2.00 -
Sales (%)7 30.8% 10.2% 59% 100%
Sales ($) 101,024 33,456 193,520 328,000
Revenues ($) 151,536 58,548 387,040 597,124
Note: “Independent stores” include convenience stores, independent food stores, and discount stores.
“Others” include multiple grocers, vending machines, & direct sales.
Expected Costs:
COGS: $597,124 * 36% = $214,964.64
O/H: $597,124* 38% = $226,907.12
Note about expected costs: O/H costs include operations overhead and general and
administrative overhead. The former is generally associated with the recurring
management or support of the activity, which is normally relevant cost. The latter
includes salaries, equipment, space and other activities related to headquarters
management, accounting, personnel, legal support, data processing management and
similar common services performed outside the activity, which are irrelevant. Because
there is no enough data to show the ratio of these two parts, we estimate half of the O/H
costs as irrelevant costs.
4
From table 1: (8,195+7,674+7,776) / (23,104+21,742+20,857) = 36%
5
From table 1: (8,739+85+7,890+480+7,287+573) / (23,104+21,742+20,857) = 38%
6
From table 2: (265+247+309) / (6,676+6,423+6,157) = 4.3%
7
From table 3
31
33. APPENDIX L
Sample board of bubble tea prices in China (with price range from $10 to $15).
33
34. APPENDIX M
Pricing strategy (Other constraints)
The first possible constraint would be the regulations on pricing. Another constraint
would be that Coca-Cola must not set a price that is too high because competitors will be
attracted by potential profits and will follow by a lower price. After having taken all the
important factors into consideration, two price-level fixing approaches seem appropriate.
1. Profit-oriented approach: Target profit
One of the central objectives of this project being to become the market leader in
functional drinks, Coca-Cola is willing to stay among the top competitors, if not
becoming the greater, by achieving a certain target profit. This could be obtained by
establish a price that will largely cover variable and fixed costs while bringing
tremendous profits.
2. Competition-approach: Above market
Competitors and potential substitutes prices can also be part of the strategy. Having a
higher price could make customers aware of the additional benefits and the higher quality
of Bubble Buzz.
34
35. APPENDIX N
Promotion Schedule
Step Output Period of time Arguments
To make Canadian retailers aware of Bubble Buzz so they can
Personal selling February to September
1
order it in time for Summer time
Radio is the most listened media by students (based on
researches); the target market would hear our radio spot
Radio spots February to April
2
several times a day. This will ease the recognition of Bubble
Buzz in future promotion tools.
The target market will then match an image with the name of
Magazines ads Mid-March to June the product more easily. The recognition of Bubble Buzz will be
3
faster.
To send a widespread message over Canada that Bubble Buzz
Television spots April to September
4
is now available. Critical step in the promotion.
To get potential buyers to try Bubble Buzz and to create an
Sample distribution April to September
5
addiction to it.
Making a special section for the Bubble Buzz in Grocery store
Point of purchase April and September will help the new potential buyers to find our product faster and
6
more easily.
Putting adds in specific places where Generation Y hangs out
Outdoors May to September
7
will create an increased awareness of Bubble Buzz
We will use special events (sports and others) to promote
Bubble Buzz and also to get in touch with our potential market.
Public Relations May to September
8
It will allow Coca-Cola to interact with our Generation Y
Consumers.
When the summer will come to its end, we will use contest to
Contest August to end of September
9
give a second quot;pushquot; to the sales of the Bubble Buzz.
Use of conferences and news to make the general public
Publicity All the time
10
aware of the existence of Bubble Buzz.
36. APPENDIX O
Other considerations for the promotion strategy
Product life cycle of Bubble Buzz:
Bubble buzz is at its Introduction stage; we thus must inform consumers in an effort to
increase their level of awareness. Awareness is our primary promotional objective. Then
the following months after the launch of Bubble Buzz , in its Growth stage, Coca-Cola
will have to persuade the consumer to buy the product, to gain preference and to solidify
the distribution.
Product Characteristics:
• Complexity: Bubble Buzz is more sophisticated than already existing functional and soft
drinks. Consumers can eat and drink it which has never been experienced before. Unlike
most functional drinks, it also requires a straw. Understanding and familiarity is different
when compared with other comparable drinks. We should thus use a little bit more of
personal selling to retailers, give more sample, and create advertising on how to use
bubble buzz than with other brands from the company.
• Risk: there is no financial, social or physical risk associated with Bubble Buzz thus
Personal selling is less needed.
• Ancillary Services: No support or service are required after the sale; refer customers to
the website or free 1-800 number for any questions or comments.
Stage of Buying decision:
Our target consumer are at the pre-purchase stage: advertising is more helpful at this
stage then personal selling because advertising informs the potential customer of the
existence of the product and the seller, but in this case the seller is already well known.
Channel Strategy: (ref.11, p.478)
For Intermediary: Push strategy, in order to gain retailer’s cooperation in ordering and
stocking the product.
For Ultimate consumer: Pull strategy: We want to direct our promotional mix at ultimate
consumers in order to encourage them to ask retailer for the product.
37. APPENDIX O
Justifications for advertising selections
-TV: channels for teenagers and for young adults: MTV, Much Music, VrakTV, YTV
Arguments: TV communicates with sight, sound and motion, which is needed for Bubble
Buzz. It is the only media that can reach 99% of the homes in Canada. Coca-Cola has the
budget to cover the high costs of this media.
-Radio:
94.7 FM, 96.9 FM
University Radios (McGill, UDEM, UQUAM, Concordia, UOTTAWA...)
Arguments: Radio is an already segmented medium. There are over 900 radio stations in
Canada. The average University or college student is a surprisingly heavy radio listener
and spends more time during the day listening to radio than watching network television
(book p.502) We could also use of “Interactive radio” as Pepsi has already done in the
past. (p.503)
-Magazines: We should take advantage of the fact that magazines have become a very
specialized medium. There are about 500 consumers magazines in Canada. Good color
production is also an advantage that create strong images which is the purpose of Coca-
Cola with its Bubble Buzz brand. Each magazine’s readers often represent a unique
profile.
Reaching:
-Young girls: COSMO
-Young women: ELLE
-Young boys: Sports Illustrated for kids
-Young men: Sports Illustrated
-Internet: Online advertising is similar to print advertising in that it offers a visual
message. It also has additional advantages , it can also use the audio and video
capabilities. As we are targeting our ads to young outgoing people, sound and movement
may attract more attention from viewers and has the unique feature of being interactive.
Interactive media would offer Coca-Cola the opportunity to reach younger consumers
who have developed a preference for online communication. Official Website
(www.bubblebuzz.ca)
-Outdoor: Billboards in specific geographical area would allow us get a good reach and
frequency. It is a low cost and flexible alternative. (Campus, malls, Bus and metro
stations)
37
38. REFERENCES (Direct)
The Coca-Cola Co. (Company Profile). Global Market Information Database
1.
(Euromonitor). Jul 20, 2005. Accessed Feb 08, 2006.
Functional Drinks Off-trade Sales in Canada (Country Report). Global Market Information
2.
Database (Euromonitor). Oct 03, 2005. Accessed Feb 25, 2006.
Functional Drinks, Canada, Retail Volume (Statistics). Global Market Information
3.
Database (Euromonitor). Oct 03, 2005. Accessed Feb 25, 2006.
Soft Drinks in Canada (Industry Report). Global Market Information Database
4.
(Euromonitor). Oct 03, 2005. Accessed Feb 08, 2006.
Functional Drinks in the United States. Datamonitor. Dec 2005. Accessed Feb 08, 2006.
5.
COSGROVE, Joanna. The 2005 Soft Drink Report. Beverage Industry. Mar 2005; 96; 3;
6.
p.22. Accessed via ABI/INFORM Global. Feb 08, 2006.
THEODORE, Sarah. RTD coffee, tea create a buzz. Beverage Industry. Feb 2005; 96; 2;
7.
p.16. Accessed via ABI/INFORM Global. Feb 08, 2006.
The Coca-Cola Company. (Company Profile). Datamonitor. Jun 2005. Accessed Feb 08,
8.
2006.
HANNAFORD, Steve. Industry Brief, Beverages I. Oligopolywatch.
9.
http://www.oligopolywatch.com/2003/04/21.html. Accessed Feb 07, 2006.
POPP, Jamie. Leading in a healthy direction. Beverage Industry. Dec 2004; 95; 12; p.22.
10.
Accessed via ABI/INFORM Global. Feb 08, 2006.
BERKOWITZ, Eric N. CRANE, Frederick G. KERIN Roger A. HARTLEY, Steven W.
11.
RUDELIUS, William. Marketing, 5th Canadian Edition. McGraw-Hill Ryerson. 2003.
Consumer Lifestyles in Canada. Global Market Information Database (Euromonitor). Feb
12.
01, 2005. Accessed Feb 08, 2006.
Top 20 Global Brands, Ranked by Brand Value, 2004 & 2005 (in billions and as a %
13.
increase/decrease vs. prior year). BusinessWeek; Interbrand. Jul 22, 2005. Accessed via
eMarketer. Feb 28, 2006.
THEODORE, Sarah. Surprising suggestions from teens. Beverage Industry. Vol.96, no 7.
14.
Jul 2005. p.4.
Canadian Statistics – Population by Sex and Age Group. Statistics Canada.
15.
http://www40.statcan.ca/101/cst01/demo10a.htm. Modified Oct 27, 2005. Accessed Feb 28,
2006.
38
39. 2004 Annual Report – Form 10K (The Coca-Cola Co.). The Coca-Cola Co. US Securities
16.
and Exchange Commission, File no. 1-2217. http://www2.coca-
cola.com/investors/annual_other_reports.html. Accessed Feb 13, 2006.
WILBERT, Caroline. Coke, Pepsi focus on China market. The Daily Sentinel.
17.
http://www.gjsentinel.com/world/content/shared/news/stories/COKE_0224_COX.html.
Cox News Service. February 24, 2006.
39
40. OTHER CONSULTED REFERENCES
1. New Age Beverages in Hong Kong. Datamonitor. May 2004. Accessed Feb 05,
2006.
2. Boba Tea Direct. Boba Tea Direct LLC. http://www.bobateadirect.com. Date
N/A. Accessed Feb 06, 2006.
3. PREVILLE, Philip. Bubble Tea.
http://www.geocities.com/hello_tai_tai/bubbletea.html. Accessed Feb 02, 2006.
4. KING, Paul. Will bubble tea burst out across country or go bust?. Nation’s
Restaurant News. P.24. May 31, 2004. Accessed via Business Source Premier.
Feb 08, 2006.
40