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
Marketing Management I
MCGR 352, Section 005
Professor: Constantina Kavadas
Part 1: Market and Consumer Profile
Date of submission: Wednesday, March 29th, 2006
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.
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). 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.
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 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...
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.[pic]
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