5/25/2018 marketing-plan-1197866360419312-3

1/37

GROUP 10

Audrey Jolin-Lessard

Asha Brillant

Cindy Cheng

Genevive Leblanc

Nicolas MurciaVicki Tian

Jean-LouisNguyen

Audrey Jolin-Lessard

Cindy Cheng

Nicolas Murcia

Jean-Louis Nguyen

5/25/2018 marketing-plan-1197866360419312-3

2/37

Our Presentation

STRUCTURE

5/25/2018 marketing-plan-1197866360419312-3

3/37

Marketing Objectives

Company Profile

What is Bubble Buzz?

Overview of the industry

Competition, Target Market & Customer Analysis

Marketing Mix (4Ps)

Financial Projections, Implementation PlanExport Potential

5/25/2018 marketing-plan-1197866360419312-3

4/37

Introductory VIDEO

5/25/2018 marketing-plan-1197866360419312-3

5/37

What are our intentions?

Launchand marketa completely unseen-before beverageproduct,in order to achieve the following:

Create strongconsumer awareness

for Bubble Buzzthrough the 4 Ps

Become the marketleaderin the

functional drinks

segment throughsizeable market

shares

Re-affirm thecompanys title of

market leader in

product innovationandsuccessful product

launches.

3MARKETING OBJECTIVES

5/25/2018 marketing-plan-1197866360419312-3

6/37

Company Profile In case you dont know, who are we?

Cindys part on

Company profile +quick productdescription (1min)

5/25/2018 marketing-plan-1197866360419312-3

7/37

Industry Analysis Where does the produc t stand?

FOOD &BEVERAGE

SOFT DRINKS

Carbonates

Fruit/Vegetable Juice

Bottled Water

Functional Drinks

Concentrates

RTD Tea

RTD Coffee

5/25/2018 marketing-plan-1197866360419312-3

8/37

Industry Analysis The Funct ional Drinks Market

Segments of the functional drinks market

Energy drinks

Nutraceutical drinksSports drinks

Smoothies (Milk & Juice Drinks)

RTD Bubble Tea

5/25/2018 marketing-plan-1197866360419312-3

9/37

Industry Analysis Soft dr ink sales breakdow n

Off-Trade Sales of Soft Drinks by Sector: Value 1999-2004C$ million 1999 2000 2001 2002 2003 2004Carbonates 4,651.40 4,726.30 4,828.20 4,991.10 4,959.60 4,938.90Fruit/vegetable juice 2,135.20 2,239.60 2,347.00 2,454.60 2,497.60 2,613.10Bottled water 385.9 447.3 551.2 666.8 763 859.4Functional drinks 296.7 312.1 318.1 324.7 327.4 342.2Concentrates 193 186.5 171.3 166.5 159.2 161.9RTD tea 234 257.4 265 275.4 286.8 307.4RTD coffee 0.2 0.4 0.6 0.8 0.9 1.1TOTAL 7,896.40 8,169.60 8,481.30 8,879.90 8,994.50 9,224.10

5/25/2018 marketing-plan-1197866360419312-3

10/37

Industry Analysis - Trends

Only 3.7% of the total soft drink sales.However

Sales: $342.2 millions in sales in Canada in 2004

Current growth: 13.5% sales increase since 1999

Future growth: 7.3% sales & 11.0% volume increase by 2009.

Consumption: 3.94 Liters per capita, a 4% increase since 1999

Growth and profitability potential due to consumer trends.

5/25/2018 marketing-plan-1197866360419312-3

11/37

Industry Analysis Consumer Trends

Portfolio diversificationthrough alliances, acquisitions, R&D

Trend towards healthier alternativesin the functional segment

Concerns about negative health impactsof carbonated drinks

Quick maturationin the core segments

Trend towards newflavours and trendierproducts

5/25/2018 marketing-plan-1197866360419312-3

12/37

Industry Analysis - Strengths, Weaknesses, Opportun it ies, Threats

Strengths:

Brand name

Effective presence in new markets

Results of operations

Strong existing distribution channels

Weaknesses:

Relying upon brand extensions

Relying upon particular carbonated drinksBrand dilution

Difficulties when entering non-core categories

Saturation of carbonated soft drinks segment

5/25/2018 marketing-plan-1197866360419312-3

13/37

Industry Analysis - Strengths, Weaknesses, Opportun it ies, Threats

Opportunities

New product introductions

Brand is attractive to global partners

Threats:

Strong competition

Potential health issuesFree trade

5/25/2018 marketing-plan-1197866360419312-3

14/37

Competition, Target Market, Customer Analysis

Cindys part on

Competition, TargetMarket, Customer

Analysis (3 min)

5/25/2018 marketing-plan-1197866360419312-3

15/37

Bubble Buzz Price: $2

Consumer demand

The product lifecycle

Potential substitutes

Price strategy should consider the following 3 aspects :

Marketing MixPrice Strategy

5/25/2018 marketing-plan-1197866360419312-3

16/37

Marketing MixPrice Strategy

Consumer demand:

driven by tastes and income;

availability of others similar products;The higher the price, the higher the value.

customer unwilling to pay premium price

5/25/2018 marketing-plan-1197866360419312-3

17/37

Marketing MixPrice Strategy

The product lifecycle:

the newer the product the higher the price;

high profit margin;

recover development costs quickly;

gives a certain prestige to the product

5/25/2018 marketing-plan-1197866360419312-3

18/37

Marketing MixPrice Strategy

Potential substitutes:

competitors attracted by high profit margin;only two serious competitors;

unique for now;easy to imitate;

5/25/2018 marketing-plan-1197866360419312-3

19/37

Marketing MixProduct Strategy

5/25/2018 marketing-plan-1197866360419312-3

20/37

Marketing MixProduct Strategy

Brand personality:energy, funky, cool, functional, original, funny,healthy, etc.

Product modification: introducing an existing beverage but with amore convenient package

Benefits of Green Tea: cancer, rheumatoid arthritis, cholesterol,cardiovascular disease, infections, quit smoking, weight loss, etc.

5/25/2018 marketing-plan-1197866360419312-3

21/37

Marketing MixProduct Strategy

Prone to product imitation: solution: broaden distribution quickly

Low-learning product: consumers can eat while drinking

Avoid product resistance: usemore personal selling whendealing with retailers, give moresamples to customers, usecontests, website, etc.

5/25/2018 marketing-plan-1197866360419312-3

22/37

Marketing MixPromotion Strategy

Objectives:

To initiate strong awarenessabout Bubble Buzz throughout

Generation Y consumers as well astheir parents.

To win market sharesover our

top functional drinks competitor,PepsiCo.

5/25/2018 marketing-plan-1197866360419312-3

23/37

Marketing MixPromotion Strategy

The message:

Bub ble Buzz is a healthydr ink for spor tyand young p eop le who

sim ply enjo y taking c are of their bod y and l i fe. It is a dr ink fo r the out -

of- the-ordinaryindiv iduals who l ike to chal lengeth emselves

BeBold, BeOr igin al, BeDi f ferent, BeYoursel f

5/25/2018 marketing-plan-1197866360419312-3

24/37

Marketing MixPromotion Strategy

Target Market:Generation Y only givepartial attentionto

media and typically usemore than onemedia ata time.

Solution:Use a great varietyof

targeted promotionaltools.

Media selection:

Television

RadioMagazinesInternetOutdoorsPersonal SellingPublic relations

Publicity

5/25/2018 marketing-plan-1197866360419312-3

25/37

Marketing MixPromotion Strategy

Television:

commun icates w i th s ight , sound

and mo t ion,

on ly media that can reach 99% of

the homes in Canada,

we have the budg et to c over the

h igh costs,

select channels for teenagers andyoung adu l ts

5/25/2018 marketing-plan-1197866360419312-3

26/37

Marketing MixPromotion Strategy

Radio:

already segmented medium,

over 900 radio stations inCanada,

average student is asurprisingly heavy radiolistener

5/25/2018 marketing-plan-1197866360419312-3

27/37

Marketing MixPromotion Strategy

Magazines:

magazines have become a veryspecialized medium,

about 500 consumer magazines inCanada,

good color production create strongimages,

each magazines readers oftenrepresent a unique profile.

5/25/2018 marketing-plan-1197866360419312-3

28/37

Marketing MixPromotion Strategy

Internet: officialpromotional website:www.BubbleBuzz.ca, visualaudio and video message,

banners on selectedwebsites, Outdoors: low cost and

flexible alternative,campuses, bus, metro,tourist areas, malls, etc.

5/25/2018 marketing-plan-1197866360419312-3

29/37

Marketing MixPromotion StrategyPromotional Mix: Consumer orientation

Contests:Win another Bubble Buzz flavour,

secret code underneath the bottle cap log on the website to win,

increase consumer purchases / involvement

Samples:to avoid product resistance,low risk for consumers since they get it for free.

Point-of-purchase:in supermarkets to reach the parents of generation Y

Product Placement:in TV shows in subsequent years,

5/25/2018 marketing-plan-1197866360419312-3

30/37

Marketing MixPromotion Strategy

Allowances and discounts:case allowance, encourage retailers tobuy more of the product to get a certain amount for free

Cooperative advertising:encourage retailers to buy our product andto maintain high level of advertisement

Advertising: pulse scheduling, emphasized before and duringsummer

Promotional Mix: Trade orientation

5/25/2018 marketing-plan-1197866360419312-3

31/37

Marketing MixPromotion Strategy

Intermediary:Pushstrategy, in order to gain retailers cooperation inordering and stocking the product, personal selling.

Ultimate consumer:Pullstrategy: to direct our promotional mix at

ultimate consumers in order to encourage them to ask retailers forBubble Buzz, mass media.

5/25/2018 marketing-plan-1197866360419312-3

32/37

Marketing MixPlace Strategy

supermarkets

con venience stores

independent food stores

d iscount stores

mu l t ip le grocers

vending machines

direct s ales

5/25/2018 marketing-plan-1197866360419312-3

33/37

Financial ProjectionsProjected Financial Performance

Revenues $597,124.00 Based on sales @ different channelsprice

COGS $214,964.64 Based on weighted average percentage in past

dataC.M. $382,159.36 Revenues - COGS

Fixed Costs :

SG&A cost : $113,453.56 Half of the O/H costs estimated, based on pastdata

Capitalexpenditures :

$25,676.33 4.3% of revenue, based on past data

Profits $243,029.47 CM SG&A Capital expenditures

5/25/2018 marketing-plan-1197866360419312-3

34/37

Pre-launch preparation:

Focus on organising resources to implement the Bubble Buzz.

Go/ No-Gostage: should we continue product implementation ?

Launch:

April 1stBubble Buzz is freshly on the shelves (no joke) !

Advertising campaign through promotion schedule.

Post-launch (monitor and control):

Assess feedback from sales revenue, and customers.

Maintain positive dynamic by training managers & staff, and byupgrading the web site.

Implementation Plan

5/25/2018 marketing-plan-1197866360419312-3

35/37

Step by Step:Advertising campaign:

Create awareness of the brand

Reach target market (1829)

Develop mass consumption

Enhance distribution

Charismatic and ethical sponsorship

Suggest excitement about the brand

Maintain communication with media

Promotion ScheduleStep Output Period of time

1 Personal selling February to September2 Radio spots February to April3 Magazines ads Mid-March to June4 Television spots April to September5 Sample distribution April to September6 Point of purchase April and September

7

Outdoors

May to September

8 Public Relations May to September9 Contest August to end of September

10 Publicity All the time

5/25/2018 marketing-plan-1197866360419312-3

36/37

Export Potential

Cindys part on

Export potential(1min30)

5/25/2018 marketing-plan-1197866360419312-3

37/37

Conclusion

Jean-Louis

conclusion and callfor questions