EVALUATION OF

MARKETING APPROCHES

OF TWOCOMPETING PRODUCTS

PROJECT ON MARKETING

HOT ICED TEA

PRODUCTS IN DIRECT COMPETION

“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.

This will be a convenient product which will be readily available to quench the thirst of our customers and will also give the nutritional benefits of Tea. The main characteristics of this product will be the hot and cool nature of the product i.e. it can be served as a hot drink as well as a hot drink; in both way it will give the same satisfaction to the customer and there will be no weather constraint for this product and it can be used through out the year.

NATURE OF BUYING IN THE MARKET

On his way to school, Sunil knows he is thirsty and he feels the need for something very refreshing. He stops at a convenience store next to the school. Standing in front of all the choices in the beverages aisle, one particular bottle catches his sight. And he instantly recognizes the brand. He knows that this is a bottle of Bubble Buzz,

Consumers firstly decide that they are going to have a soft drink. Then they compete brands with each other. Like they compete Coke with Pepsi and Sprite with 7up and team .So the major competitor of PEPSI is Coke.

When they motivate to any other brand or on PEPSI it’s in instinct basically that based on messages derive certain feelings.

BUYING BEHAVIOUR

because not only does his other friends often drink it, but he also heard them talk about this brand new product that Coca-Cola just launched. He also previously saw Bubble Buzz ads when he surfed on his favourite websites. He grabs a bottle, and takes a closer look at the nutritive information label. He is very pleased to see that the new drink is more nutritive and definitely healthier than the other soft drinks that were available on the shelves next to it.

BUYING Role………..

SEGMENTATION VARIABLES AND BREAKDOWNS FOR CONSUMER MARKET OF BUBBLE TEA

VARIABLES

Region

Nationwide (all provinces and territories) with emphasis on urban / metropolitan areas, and adapted strategies for all geographical groups

Density

Urban, suburban

Age

10-29 years old (teenagers, studying age and young adults)

Gender

Male and Female

Income

All under $30,000

Occupation

Students; new graduated; new workers; young professionals

MARKET SEGMENTS

MARKET SEGMENTS cont… Elementary 4th grade, High school, CEGEP and University Race All: Asian, Black, White, Native; other; with adapted strategy for Asian consumers already familiar

with Bubble Tea Home ownership Renting apartment/condo, living with parents (Highly discretionary in personal spending) Personality Brand conscious, anchored in popular culture, inclined for differentiation and sophistication, very

tolerant towards multiculturalism and internationalism (open-minded), quick maturation with modern products

Lifestyle Most of them dependent on parents, no major responsibilities, highly influenced by peer groups,

active life, importance of school, work and social life Benefits sought COMMUNICATION BENEFITS -Nutritional information -Informational text on history of product FUNCTIONAL BENEFITS -Healthier than soft drinks -Convenient, easy to take out PERCEPTUAL BENEFITS -Quality/Premium price -Social standing/good-looking Usage rate Seasonal (peak in summer), daily-basis, weekly basis User status Non-user, regular user (current user through existing bar-shops) Loyalty status None, medium, strong

MARKET SEGMENTS Segmentation variables for

consumer market of Hot Ice Tea

TYPE VARIABLES PARTICULARS World region or country  Nationwide (all provinces and

territories) with emphasis on urban / metropolitan areas, and adapted strategies for all geographical groups

Urban, suburban Climate Northern southern eastern western Age 12-19,20-34,35-49,50-64,65+ Gender Male , Female Family size 1-2,3-4,5+

Family Life CycleYoung ,single married under 18 olderIncomeUnder 10,000 and over 100,000OccupationProfessional ,proprietors, clerical sales personsEducationGrade school or less high school ,graduate and aboveRaceAll (Asian ,Hispanic, black ,white)GenerationGeneration ySocial classWorking class, middle class, upper middle class, lower uppers ,upper uppers Life styleAchievers and striversPersonalityCompulsive ,authoritarian gregarious, ambitious  

Target MARKET cont…

OccasionsRegular occasion and Special occasionBenefitsQuality, convenience, nutritional User StatusNon-user, regular user, first time user Usage rateLight user , medium user , heavy userLoyalty statusNone , medium , strongReadiness stageUn aware , aware ,interested , intended to buyAttitude towards productPositive, enthusiastic , indifferent

Output Examples

Television MTV, Much Music, VrakTV, YTV

Radio MIX96, CKOI 96.9, 94.7 FM, Universities

Magazines For girls: Cosmo, ElleFor boys: Sports Illustrated (or Kids edition)

Internet Banners on select websites (gaming, sports, etc.)Official promotional website: www.BubbleBuzz.ca

Outdoors Billboards and prints in select areas including: Campuses, transportation (bus, metro, stations) Tourist areas in high seasonal periods Outskirts of key cities in geographical reach

Others Not relevant

Personal selling

Direct contact with retailers, sales kit strategies to be explained later in the text.

Public relations

Stands or special displays and events in schools, malls, sports events (i.e. 2008 Beijing Summer Olympic Games), sponsorship activities

Publicity Conferences, press releases (print and online), buzz marketing through TV coverage

MARKETING STRETEGY

DECISION MAKING PROCESS

Company is centered on these objectives

With the expected growth of the billion dollar ready-to-drink ice tea market, Hot Ice Tea is poised to capture a bigger share of the market with an aggressive marketing strategy: from packaging to advertising.

Short Term Goals: Improve market presence by 20%

Improve Packaging Improve Shelf Presence

Long-Term Goals:

Product Innovation World Number One ready-to-drink ice tea

PepsiCo /coca cola must continue its innovative research and development strategy to come up with new flavors and products. PepsiCo has extensive research facilities on product improvement. The company can use its resources and professional expertise to come up with new flavors that will suit the continuous demand for healthy ready-to-drink hot ice tea. With aggressive marketing strategy and product positioning, Hot Ice Tea is ready to take the global lead in ready-to-drink tea industry.

INFLUENCES

WHO ARE THE DECISION MAKERS

Occasions Regular occasion and Special occasion

Benefits Quality, convenience, nutritional

User Status Non-user, regular user, first time user

Usage rate Light user , medium user , heavy user

Loyalty status None , medium , strong

Readiness stage Un aware , aware ,interested , intended to buy

Attitude towards product

Positive, enthusiastic , indifferent

WHAT ROLE THEY PLAY

POSITIONING OF THE PRODUCTS

•To initiate strong awareness •about the launch of Bubble Buzz •throughout Generation Y (10-29 years old) •consumers as well as their parents.

To win market shares over our top functional drinks competitor, PepsiCo/coca cola

Concepts:•“Think outside the bubble”: Be Bold, Be Original, Be Different, Be Yourself.•“A good spirit in a good body.”•“For the out-of-the-ordinary individuals who like to challenge themselves.”

SUGGESTIONS FOR IMPROVEMENT

New product introductions

The functional drinks market is one that particularly Allows more innovation opportunities and gives greater freedom for creativity in the design, production, manufacturing, distribution, promotion and retailing choices and processes.

Brand is attractive to global partnersBecause of the company’s size (including value, brand name and operating revenues) and wide portfolio base, Coca-Cola enjoys a strong purchasing power over its suppliers, and also attracts large partnerships with various levels of consumer reach (e.g. Burger King, movie studio promotions, sponsorship agreements, etc.). Existing brand awareness also provides an international playing field for powerful marketing strategies.