April 4th, 2010
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 ($243,029.47 profits), 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. Export potential will be considered in China.
The Coca-Cola Company’s core undertaking is to benefit and refresh everyone it reaches. 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.
“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 objectives for the first three years of operation include: 1. To create a service-based company whose primary goal is to exceed customer's expectations 2. To increase the number of clients served by at least 20% per year through superior performance and word-of-mouth referrals. 3. To develop a sustainable financial management company that generates value for their customers. 4. To stay at the forefront as the market leader in innovative product introductions and successful product launches
5. To strengthen and satisfy the needs of the more adventurous Generation Y consumers with a new eye-catching and FUNctional product.
6. To become the market leader in the functional drinks segment with increased market
Consumption: The sales volume for the functional drinks segment (ref. D2) in Canada has reached $342.2 million 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. The consumption rate per capita in 2004 has reached 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...