coke market plan

8/3/2019 Coke Market Plan

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Group project on

MARKETING PLAN

FOR JOY LEMON

20-Aug-11

Course : PRINCIPLES OF MARKETING (MKT202) Section : 13

Prepared For:

Shahedur Rahman

Prepared By:

Jf

Dljkh Dkhdkh Dkdkd llfjfjrr


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Group project on MARKETING PLAN FOR JOY LEMON 2

LETTER OF TRANSMITTAL

10th July, 2011

Shahedur Rahman

Lecturer

NSU Business School

North South University

Subject: Submission of the Term Paper on Market Plan of JOY(soft drink).

Dear Sir,

We were assigned the term paper to do an analysis on the market plan of

JOY(soft drink).Vividly enough, our term paper comprises to analyze how the

marketing activities and marketing plan are taken into account of JOY . We

hope our contribution will be best evaluated on your sharp scale of acceptance

& analytical remarks.

Consequently, we are transmitting our term paper to your very concern.Hopefully, you will discover our term paper informative approach as a hallmark

of teamwork. Rather, in case of any further clarification or elaboration as to

our term paper, we would welcome the opportunity to consult with you to

explore how our findings could best meet your needs.

Thanking You.

With best regards,

ID: ID:

ID: ID:

ID:


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ACKNOWLEDGEMENT

We all the members of the group solemnly are thanking the Creator who has

helped us to do the work efficiently and effectively.

We would like to thank our parents because their inspirations have enabled us

to complete this piece of work. Furthermore, we want to thank our teacher,

assistant professor of NSU Business School of NSU University to assign as well

as to guide us in this term paper in the first instance. Last but not the least wewould like to thank to all our group members for giving effort in this term

paper and acting as a team during the work.


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CONTENT

Introduction

Objectives

Executive Summery

Current Market Situation

4.1 Competitor Analysis

4.2 Competitive Advantage

Market DescriptionTarget Market Analysis

6.1 Market Segmentation & Target market Statement

6.2 Logics For Targeted Segments

Marketing Mix (Analysing 4p)

7.1 Product

7.1.1 Value Proposition

7.1.2 Unique Value Proposition

7.1.3 Product Strategy7.2 Price

7.3 Place

7.3.1 Distribution Strategy

7.3.2 Partner Relationship Management

7.4 Promotion

Action Programs

Cost Budget

9.1 Promotional cost9.2 Break Even Analysis

Conclusion


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INTRODUCTION

Company History

The proposal of launching anew soft drink(JOY),in Bangladesh, was decided

mutually by the six partners-

.Looking at the growing demand for soft drinks , though the market for soft

drinks is competitive in the Bangladesh, the partners decided to launch its

product (JOY) in mainly Dhaka. As our soft drinks business of JOY is in the

beginning stage, which is about to start so it does not have a company profile.

Fund Requirements

Initially, JOYwill need . On average,the total investment will lead

to 5crore, all of which will be provided by the six partners in form of a bank

loan Bank loan will be taken as it requires huge amont of funds to start the

soft drink business.


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COMPANY OVERVIEW

Goal of (JOY)soft drink:

Our major goal is to expand the business within 3 years after its establishment

by attracting more customers. To attract more customers and also to attain

customers satisfaction we will emphasis on several factors such as quality

product , no preservatives added,etc

Keys to Success

The keys to success in our business are:

Location:

Environment:

Convenience:.

Objectives of JOY soft drink

Operational Objectives:

To provide better quality product to our consumers up to their complete

satisfaction.

To satisfy customers with JOY soft drink which gives them refreshment.

Marketing Objectives:

Create strong customer awareness for JOY through 4Ps.

Grab a competitive market share with in a period of time (six months) of

the target market segments.

Create a demand among distributors, retailers and business customers

through more benefits than competitors provide can be edited if our faculty

suggest.


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EXECUTIVE SUMMARY

More than a billion times every day, thirsty people around the world reach for

beverages for refreshment. All around the world, drinking beverage is like an

entertainment for people. Soft drinks are considered as consumer products. All

round the world we can see a different marketing phase used by the beverage

producing companies but in Bangladesh it is a little different. The soft drink

industry in Bangladesh is becoming very competitive due to the changes in

tastes and preferences of the consumers. However, by conducting market

surveys and interviewing customers, we have found out that the consumersare still in search for innovated drinks with additional features. There are quite

a few companies who are competing against each other to grab a greater

market share. The six top brands in the market of soft drink are Coca cola, 7UP,

Pepsi, Mojo, RC Lemon and Clemon. Coca Cola is charging more for their better

quality. They are trying to convince their customer by that they are charging

more for their better quality than the competitors are serving. Pepsi and 7UP is

trying different approach to get the customer satisfaction. They are charging

the same as Coca Cola for their products. Mojo is charging a bit low and trying

to convince the customer by saying that we are charging low and you will be

easily able to buy it. RC Lemon and Clemon target market is totally different as

they are producing caffeine free soft drink which charges the highest in the

market.

Customers of the soft drink are happy with the current products but still theyare seeking


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COMPETITORS ANALYSIS

If we take a look at the Bangladesh soft drink industry, we can notice that at

present, there are more than 19 soft drink manufacturers operating in

Bangladesh. But the competitors we consider threat to Joy are:

Transcom Beverage Ltd.

Abdul Monem Limited

Partex Beverage Ltd

Akij Food and Beverages.

Transcom Beverages Limited:

Transcom Beverage Ltd (TBL) is the exclusive PepsiCo Franchisee for

Bangladesh. TBL owns and operates modern plants in Dhaka and Chittagong

for bottling the renowned soft drink brands such as, Pepsi, 7UP, Mirinda, Slice,Mountain Dew, Pepsi Diet and 7UP Light. The company is emerging with the

motto to deliver sustained growth in Bangladesh and move towards dominant

Beverage Company, delighting & nourishing every Bangladeshi, by best

meeting their everyday beverages needs & stakeholders by delivering

performance with purpose, through talented people.


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Abdul Monem Limited:

Akij Foods and Beverages:

Akij Food & Beverage Limited (a unit of Akij Group) one of the largest food

and beverage company in Bangladesh manufacturing quality product for

domestic and international market..With a mammoth investment, it uses the

world class KRONES (Germany), TETRAPACK (Sweden) & SIPA (Italy) Machines

to manufacture their products.


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CORE PRODUCT, ORIGIN AND MANUFACTURER IN BANGLADESH

Soft Drink Core Product Country of Origin Manufacturer in Bangladesh

Coca Cola Cola U.S.A Abdul Monem Ltd

7UP Lemon and Lime U.S.A Transcom Beverage

Pepsi Cola U.S.A Transcom Beverage

Clemon Clear Lemon Bangladesh Akij Food and Beverages

RC Lemon Cloudy Lemon U.S.A Partex Beverage limited

Mojo Cola Bangladesh Akij Food and Beverages

COMPETITORS PRODUCT FEATURES

Soft Drink: Product Features

Coca Cola: Cola which uses Caffeine (2.9 mg per 100 ml) and Natural

flavorings.

7UP :Caffeine free lime and lemon flavored Carbonated Beverage

Pepsi: Cola which uses Caffeine, high fructose corn syrup and Natural flavorings


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Clemon: Lemon Flavored Carbonated Beverage

RC Lemon: A tasty cloudy lemon soft drink

Mojo: A local cheap brand offers cola with attractive package


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Market Segmentation

We will segment our market into four categories. Such as:

Demographic Segmentation

Psychographic Segmentation

Behavioral Segmentation

Geographical Segmentation

We will divide these segmentations into different subgroups. These are given

below:

Demographic Segmentation:Age 14-39 years

Gender Both Male and Female

Occupation Professionals, students, executive level officers.

Family life cycle Young, Married, Married with children, Unmarried

couples

Income Seekers, Strivers (not applicable for students)

Psychographic Segmentation:Social Class Upper Lowers, Middle Class, Upper Middles, Lower

Uppers.

Behavioral Segmentation:Occasions Regular Occasion

Usage rate Light users,

Loyalty Status None


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Geographical Segmentation

World region Bangladesh

Country region Dhaka

City Urban areas

Reasons for Choosing These Segmentations:

Competitors target market and customer demand is the first

reason to select the market. Target market includes business executives which

is ignored by the promotional strategies of the competitors. But it is a huge

market for soft drink in Bangladesh.

Vast population of Dhaka City as well as competitive pricing of JOY is

also one of the most important logic behind setting the target market.

The third logic behind the target market is the location. The

industry of JOY lemon will be situated at Gazipur Industrial Area which is very

close to the target market . So, it will reduce the distribution cost.

Target Market Statement

As a new product JOY will be distributed among the young generation

and business executives of Dhaka city.

Analysing 4P

Product

Manufacturing

JOY will be produced in the factory of Aggressive Marketers which is

situated Gazipur Industrial Area. This area is close to target market location.


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Manufacturing procedure will be fully automatic. Here are the steps of

manufacturing.

Clarifying the water

The traditional process of a series of coagulation, filtration, and

chlorination

Filtering, sterilizing, and DE chlorinating the water

Mixing The Ingredients

The dissolved sugar and flavor concentrates will be pumped into the

dosing station in a predetermined sequence according to compatibility.

The water and syrup are carefully combined by sophisticated machines

Carbonating the beverage

Carbonation will be added to the finished product.

Packaging

The beautiful and colourful packaging of JOY attracts the customer. It will

consist of yellow, green, black ,white ,ash and so on. JOY is a lemon flavoured

soft drink. So, green and yellow will be mostly used. It will also include two

model of the product who will represent young generation and executives

(Target Customer). The size of bottle (specially the 350 ml) and can is handy

which the customers like most. The packaging also includes the ingredients of

JOY. The word JOY has been written in both English and Arabic. It will also

contain the sign of Halal, Hygienic, Organization and mandatory health

certificates.


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Value Proposition

Carbonated Soft Drink.

Clear lemon flavour

Good Tasted

Remove tiredness & help to be fresh

Ingredients

The ingredients that are used to make the JOY are-

1. Refined Sugar,

2. Carbon Dioxide,

3. Natural Lemon Flavor,

4. Acidulate,

5. Caffeine etc.

Nutrition

Nutrition facts per 100 ml are-

Energy = 46 k cl.

Fat = 0.00 gm

Protein = 0.00 gm

Carbohydrate = 10.5 gm


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Product Level:

There are five type of product level which a marketer need to

concentrate on for the success of product

o Core Benefit: The basic buying reason of that product by customer. The

core benefit for JOY is to quench their thirst.

o Basic Product: Basic product is the vital features of that product. Basic

product for JOY is carbonated water with some added flavours.

o Expected Product: Expected product for JOY is a soft drink which gives

more energy and taste to consumer.

o Augmented Product: It is the extra features provided by company to

their customer. It is giving more energy and taste to their customer by

providing them more caffeine in their offering.

o Potential Product: It is the all possible changes and transformation that a

product can undergo in future. Because it is targeting youth it can modified its

regular bottle shape into some different and innovative way so youth can

attract. It can launch a new designed art form bottle.

Unique Value Proposition

Lemon flavoured Carbonated Soft Drink.

Strictly maintained products high quality.

Different size. 275ml can; 550ml , 1250ml pet bottle.

More energy .

Different taste.

No chemical preservative.


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PRICING STRATEGY

Despite being a new entrant in the industry, we plan not to compromise on our

price level. We maintained top quality while producing Joy. While setting our

pricing strategy we have kept three things in mind:

Consumer Demand

The Product Life Cycle

Potential Substitutes

Customer Demand

In case of soft drinks, customers are driven by taste and health consciousness

and income is also a very important factor here. The higher the price we set,

the higher is the perceived value and the customers are willing to pay the

premium price if the product delights them after consuming it.

The Product Life Cycle

As the product is new and the market is very much saturated the product must

be top class and of higher price. This would help to quickly cover up the

development costs. And as said earlier, higher price will also give a certain

prestige to the product. This would help to capture the market easily for Joy.

Potential Substitutes:

The current giant competitors such as Coca Cola, 7UP and Pepsi are currently

attracted to higher profit margins. We also need to keep their price and quality

in mind before we set our price. Will our soft drink be of good taste than of

7UP? Its not just easy to set a high price to have a higher perceived value and


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come into quicker break even, but its also about the brand awareness of the

competitors.

So we have decided that we are going to follow our competitors pricing and

add a little further with expanding the quantity of our drinks. We will follow

uniform delivered pricing. We will price same for the every part of the Dhaka

city without going for price discrimination. The proposed prices of different

size of Joy are:

Package Price

275 ml. (Joy can) 30 tk.

550 ml. (Joy Mini) 30 tk.

1250 ml. (Joy Family) 60 tk.

There are two pricing strategies for new product. The first one is Price

Skimming and the second one is market penetration. We can describe our

pricing strategy as a Competitive Pricing Strategy which is a combination of

price skimming and penetration. Let us explain the logics. We will ask the

questions and answer them to support the strategy. At first we justify Price

Skimming Strategy.

Is it a new invention?

Answer : No

Do the Product quality and image support the price?

Answer: Yes

Do the buyers want the product at the price?

Answer: Yes (current Market Situation)


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Do the costs of producing the product in small volume cancel the

advantage of higher prices?

Answer: Yes (Because the land cost is very high)

Can the competitors enter the market easily?

Answer: Yes.

So, Price skimming will not be a good strategy for JOY.

Now we will judge the penetration pricing with related question and

answer.

Is it a price sensitive market?

Answer: No.

Is there any inverse relationship of production and distribution cost to

sales growth?

Answer: Yes.

Will the low prices keep competition out of the market?

Answer: No

So, Market penetration will not be a good strategy also.

This is why we have chosen a competitive pricing strategy.

Place

Channel: Manufacturer Retailer Customer

Coverage: Around 10% of Dhaka city.

Location: Metros and urban areas


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Inventory: Currently no specific amount of inventory is maintained for backup.

Transport: Products will be distributed through rented transportation system.

Six pick up vans will work everyday to send those product to retailers.

Distribution Strategy

After company manufacture the product, it has to decide that from

how many and which type of channels through product will reach to customer.

JOY will be available through regular distribution because it will be

available at targeted area. We will implement this regular distribution to

supply saturation exposure of the market by using all accessible channels.

Thats why JOY will be available in selected parts of urban area at all the

miniature and large retails stores, supermarkets, departmental stores and

restaurants.

There can be zero to 1 levels of intermediaries implicated in the intact

supply chain before product reaches to the end consumer. This is because

initial target market is small and UP dont actually have an extensive network

of sales agents, brokers and additional force which is very important and is

perfect for make product approachable to the markets. This work will be done

by retailers. 5% margin will be reserved for these mediators . JOY will transport

its products from industry which is situated at Gazipur by own transportation

system and sell it to the retailers on a regular basis. Because beverage industry

is highly unstable and vibrant so products should be available in market at allthe time. The supply of product primarily depends upon the quantity required

by retailers ,so it can be supplied on after some intervals.

JOY will also launch a bundled service with Fakhruddin Biriani, Labamba

Kabab. They are locally popular restaurants where JOY will be available with

offered foods at a special price. It is a zero level channel system.


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Promotion

Advertising

Advertising is any paid form of non-personal presentation and promotion of

ideas, goods, or services by an identified sponsor .We will use Informative

advertising which will introduce our product to target audience. One of our

objectives will be effective use of the promotion budget.

JOY has been targeted for the young generation and office executives and

designed for fun loving young adults.

Media

Broad cast

Very small TV ads and aggressive advertisement program will be launched

through FM Radios. Because now a days both students and business executives

are being busy day by day. FM radio is becoming one of the best media to

communicate with young generation and business executives.

Print

Advertisement will be published in the Popular national dailies on the holy

days.

Internet

Advertisement through Ecommerce, news and social network websites can be

an effective media for communication.

Outdoor

Billboards

A lot of legal billboards will be put up. However, with the billboards, we will

come up with our belief and values and people will be aware of it.


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Sales promotion

Sales promotion is the short-term incentives to encourage the purchase or

sale of a product or service.

Discounts

December and January are the major part of winter. Usually customer

demand decreases in that time. To increase sales and grab a bigger market

share will launch a discount program for schools, college, universities and for

profit/nonprofit organization who are willing to go for a picnic or study tour.

JOY Card

In the Summer sales of soft drinks goes high and a very competitive

environment is observed in the market. Next summer we are going to start a

promotion program which will be named JOY Card: A Mirror Reflection of

Cash Under this promotion we will provide joy card with each of our product.

Customers will be given a lot of option they can purchase with different

number of joy card. Here are the offers:

10 Joy Card (Can) Submission : Customer will get a free Joy Can

10 Joy Card (Mini) Submission : Customer will get a free Joy Mini

10 Joy Card (Family) Submission : Customer will get a free Joy Family

20 Joy Card (Can) Submission : Customer will get a free Exclusive Joy Mug

20 Joy Card (Mini) Submission : Customer will get a free Joy Mug

20 Joy Card (Family) Submission : Customer will get a free Joy Jug

50 Joy Card (Can) Submission : Customer will get a free Joy Exclusive ring

50 Joy Card (Mini) Submission : Customer will get a free Joy T-shirt & cap

50 Joy Card (Family) Submission : Customer will get a free Exclusive Glass Set


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100 Joy Card (Can) Submission : Customer will get a free Joy Exclusive Ticket

for T20 world cup

100 Joy Card (Mini) Submission : Customer will get a free Joy Ticket for T20world cup

100 Joy Card (Family) Submission : Customer will get a free two Joy Ticket for

T20 world cup & A

Loyal Customer Joy Card which will provide him 7% discount on joy product

for 1 year.

Direct Marketing

Taking appointment our marketing executives will directly contact with the

executives, principals of

well known schools and college and other different educational and business

organization with our

sales promotion.

We will also distribute the leaflets among the students and people who read

newspaper. It will

contain the features and sales promotion as well as the prices of the products.

All the leaflets will

contain the value proposition statement: Just Own Yourself

coke market plan

Documents