The following marketing plan forms the basis for 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 leader in the functional drinks segment of soft drinks. Export potential will be considered in china. 1. Sales: The sales volume for the functional drinks segment in Canada has reached $342.2 millions in 2004 for a volume of 125.9 million liters. 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. The growth of this particular market is largely due to a slow shift in consumer trends. 2. Costs:
3. Profits: 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. Estimates are forecasting a growth of 7.3% in sales and 11.0% in volume consumption by 2009. 4. Competitors: Coca-Cola’s top competitors for the soft drinks industry are PepsiCo (31.62) and Cadbury- Schweppes (15.8%), which combined, represent about 48% 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 is second with 32.8%. Bubble Buzz will launch into a currently unserved subset of the 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 vey owned 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 do not reach or serve the same market (retailing vs. counter /restoration).A strong distribution system already exist with Coca-cola, since partnerships and channel are already in place. This will facilitate the products reach into its target market. Further data concerning competing market shares and distribution channels are available in Appendix. 5.Channels:Companies have been actively engaged in new product developments in order to counter the growing concern about negative health impacts of high-fructose drinks ,but also to increase the demand in a market where product offerings are quickly maturing. New flavor introductions and health conscious formulations have been launched in a attempt to offset the decline in carbonated soft drink sales . 6.suppy: Bubble tea has exploded world wide! What started out as a drink fad for Asian people, has quickly gone mainstream! Bubble tea businesses are popping up on street corners, malls, and being added to existing businesses. Vendors are now adding it to...
Please join StudyMode to read the full document