Coca-Coca Marketing ProjectLaunch of Loca Lime

In this project we have focused upon how the launch of the new juice Loca Lime in Pakistan poses a challenge for the company and how the company needs to market it in order to make this launch a successful one.

Mustafa Puri, Muhammad Farid Ul Haq, Muhammad Uzair Tariq , Shahwaiz Alvi , Qurratulain Tanvir, Mairaj Murtaza1/3/2011

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ContentsExecutive Summary:..............................................................................................................................3

CURRENT MARKET SITUATION:.............................................................................................................4

Mission Statement:............................................................................................................................4

MARKET DESCRIPTION:......................................................................................................................5

BRANDS OF COCA-COLA:...................................................................................................................5

COMPETITOR REVIEW:......................................................................................................................6

MACRO ENVIRONMENT OF PEPSI AND COKE....................................................................................7

Demographic Forces......................................................................................................................7

Economic Forces............................................................................................................................7

Natural Forces...............................................................................................................................7

Technological Forces.....................................................................................................................7

Political and Legal..........................................................................................................................7

Cultural Forces...............................................................................................................................8

DISTRIBUTION REVIEW......................................................................................................................8

SWOT Analysis.......................................................................................................................................9

Strength of company.........................................................................................................................9

Coca-Cola’s Promotion Initiatives:.................................................................................................9

Strengths of the product.................................................................................................................10

Weaknesses.....................................................................................................................................11

Opportunities..................................................................................................................................11

Threats.............................................................................................................................................12

Objectives:...........................................................................................................................................13

Building a Healthier Image:..............................................................................................................13

Wider Brand Recognition:................................................................................................................13

Capturing the juice market:.............................................................................................................14

Expanding the Product....................................................................................................................14

Issues:..................................................................................................................................................14

Giving people a USP.........................................................................................................................14

The Time Factor...............................................................................................................................15

Lack of choice:.................................................................................................................................15

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Product Life Cycle:...............................................................................................................................15

Marketing Mix – Four Ps:.....................................................................................................................17

Product:...........................................................................................................................................17

Price:................................................................................................................................................17

Place:...............................................................................................................................................18

Promotion:.......................................................................................................................................18

Action Plan:.........................................................................................................................................19

Pre-Launch Marketing:....................................................................................................................19

Launch Dates & Venues:..................................................................................................................19

Launch Execution:............................................................................................................................20

Post Launch Promotion Campaign:..................................................................................................20

Monitoring & Re-Execution:............................................................................................................21

Budgets:...............................................................................................................................................22

Slogan & logo...................................................................................................................................22

COMMUNICATION STRATEGY.........................................................................................................22

Communication Objective...............................................................................................................22

Advertisements on TV channels......................................................................................................22

Newspapers.....................................................................................................................................23

Billboards.........................................................................................................................................23

Marketing Budget............................................................................................................................23

TV Budget –.................................................................................................................................23

Newspapers –..............................................................................................................................24

Billboards –..................................................................................................................................24

Distribution Costs –.....................................................................................................................24

Brand Ambassador –....................................................................................................................24

CONTROL.............................................................................................................................................25

Market Research.............................................................................................................................27

Testing.............................................................................................................................................27

Budgets............................................................................................................................................27

Pricing Strategy................................................................................................................................27

Promotion Strategy.........................................................................................................................27

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Executive Summary:For the past century Coca-Cola has had the distinct privilege of operating as one of the premier organizations of the beverages industry. Through consistent market re-alignment, Coca-Cola has consistently found solutions to bridge and mitigate the gap between that which consumers yearn for and those things that are readily available to them. Having found a way to fill this void, Coca-Cola has managed to position its bran amongst those few elite who hold a special impenetrable bond with their consumers. This is evidenced through their higher market share.

Inherent in all products and services is the concept of birth, growth, maturation and eventual demise. However organizations often times create and launch new products and/or services that ensure the organization’s long term viability in the marketplace, as such Coca-Cola Company has taken the decision to create, launch and establish a new brand known as loca lime. The purpose for diversification is to ensure consumer relevancy and the never ending pursuit of achieving growth targets.

Loca lime embodies the re-birth marketing strategy for Coca-Cola in the following ways:

To formulate and construct an image that associates loca lime with a healthier , more positive way of life

To use the residual benefits of loca lime(i.e. health factor, sports/athletes) to expand and broaden coca-colas brand recognition

Coca cola Company can make use of a first mover’s advantage by being the first company among its competing firms to launch a new product line with a special emphasis on health.

The SWOT analysis of the Coca-Cola Company and its current market situation are described in detail in this report, moreover in this report the marketing strategy required to successfully launch the new product is extensively discussed. The goals of launching the new product and the issues that the company might face in achieving its set out targets are also discussed. Additionally the exact method in which the company will go about launching and monitoring the product is also deliberated upon. Furthermore this report includes the focus on the cost side and the side that deals with price setting as well, along with this the company’s short and long term objectives regarding the revenue generation from the product are also discoursed. Hence we can see a thoroughly laid out plan in this report which will be used by the Coca-Cola Company to make the launch of the juice Loca Lime a success.

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CURRENT MARKET SITUATION:Coca-Cola Enterprises was established in 1986. Each of its franchises has a strong heritage in the traditions of Coca-Cola that is the basis for this Company. In 1986, The Coca-Cola Company merged some of its company-owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring in 1992.The Coca Cola Company now offers more than 400 brands in nearly 312 countries. 1n 1950, the Company started its operations in Pakistan, and by 1996 was taking over the operations itself by setting up its first production plant in Pakistan, providing employment to more than 6000 people. The Coca Cola Company is one of the largest manufacturers, distributors and marketers of non-alcoholic beverage concentrates and syrups in the world and has the brand equity of approximately 48 to 50 billion US dollars.The Coca Cola Company Pakistan is about to enter the fruit juice market in Pakistan mainly dominated by Nestle which holds the highest share in the juice market. The processed food and beverages industry is considered to be one of the largest industrial sectors and accounts for approximately 27% of total production and 16% of total employment in the manufacturing sector. The total value of production is over Rs. 46 billion. The Company will launch a fruit juice under the name Loca Lime which is a lemon-flavoured juice. The decision to make a lemon flavoured juice was made after a market research that showed the preference of people for the lemon taste.

(Figures according to our research)

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Mission Statement:Coca Cola Mission Statement has always been very clear.

To refresh the world... To inspire moments of optimism and happiness...

To create value and make a difference

MARKET DESCRIPTION:Being the largest company in the soft drink industry, Coca Cola enjoys the highest market share and controls about 59% of the world market. The target market for Coca-Cola is all consumers worldwide. Coke’s commercials basically focus on younger generations, because they want to represent Coke with the youth and energy but they also consider older people which they then take as a co-market. According to the Coca-Cola Company

‘Coca-Cola is the beverage that provides deep-down refreshment for the mind, body and spirit because only ice-cold Coca-Cola makes a moment more special by combining the unique Coca-Cola sensation with what’s real and genuine providing a source of enjoyment in everyday life.’

Coca-Cola consumers can choose between the products that can be divided into soft drinks, juices, sports drinks and mineral water. The market of the company is geographically vast and it is being controlled with enormous success. Carbonated soft drinks are the largest growth segment within the non-alcoholic ready-to-drink beverage category measured by volume, which is why Coca Cola is focusing on expanding its product portfolio because that is the key to future success. The financial health and success of Coca Cola’s bottling partners is a critical component of Coca Cola’s ability to build and deliver leading brands.

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The Asian market encompasses approximately 3.2 billion customers, and on average they enjoy two servings of their products each month. Through an intense focus on innovation and diversification, Coca-Cola has achieved significant volume growth in the past years. In addition to maintaining the popularity of the core brands the Coca-Cola Company is building an exciting portfolio of beverage brands in Asia.

Among the Asian countries, Japan has the highest percentage of around 42% followed closely by Pakistan, India and Bangladesh where the average consumption exceeds day by day. Coca-Cola has a 35% market share in Pakistan while its competitor Pepsi dominates with 65%.

BRANDS OF COCA-COLA:The product portfolio of Coca-Cola comprises of a vast number of brands which are currently being sold throughout the world. In addition to their staple carbonated drinks Coca-Cola has dabbed into fruit juices, sports juices and mineral water markets as well worldwide. The major brands of Coca-Cola sold in Pakistan include:

1. Coca-Cola2. Sprite3. Fanta4. Minute Maid5. Kinley Water

COMPETITOR REVIEW:Coca-Cola’s major competitor is Pepsi Co. that occupies 60% of the Pakistani soft-drink market. In Pakistan, Pepsi started their operations in 1970 by establishing their regional office in Lahore which monitors all the operations carried out in South West Asia. They currently have a product portfolio that competes with Coca-Cola on every level. The products of Pepsi sold throughout Pakistan include:

1. Pepsi2. Mirinda3. 7UP4. Mountain Dew5. Aquafina

Between Pepsi and Coca-Cola, the majority of the market targeted doesn’t care what they are going to have. In other words, they don’t care whether it’s Pepsi or Coke. So the major difference between the market shares can be associated mainly with the availability of the soft-drinks in the market. In the absence of Coca-Cola, Pepsi will be purchased more and vice versa. For this reason Coca-Cola has provided its own coolers and freezers in the market to the retailers in order to maximise their sales. Moreover, they provide infrastructure free of cost so that Coca-Cola can be chilled prior to purchase. Their salesmen and mechanics also visit regularly in order to make sure that the infrastructure is in proper condition.

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(figures according to our research)

Threats posed by Pepsi are also price-related. When the price goes beyond a certain level it effects the consumption of the soft drinks. At higher prices, consumers are more likely to substitute Pepsi with Coke and vice versa. In short, it can all be traced down to customer’s perception. In the last two years, when Pepsi has been dominating the market, Coca-Cola has made an aggressive comeback mainly by brand differentiation, effective advertising and attractive brand initiatives. Moreover, Coca-Cola is an ‘Us’ brand because they believe in togetherness; people as well as communities, and this is the nature they target in Pakistan. Pepsi on the other hand is a ‘Me’ brand as they emphasise of personal development and individual struggle which is clearly emphasised through their advertising.

All through the 1950s to date ,Coca-Cola occupied a very dominant position in the soft-drink market, however slowly over the passage of time Pepsi had risen up to go into competition head-to-head by discounts in the distribution outlets, targeting younger consumers with ‘Pepsi Generation’, motivating its bottlers and competing on package size and advertising.

MACRO ENVIRONMENT OF PEPSI AND COKE

Demographic ForcesAge: The potential customers of Coke and Pepsi would be of age group of 14-30 years.

Income: As for the income levels, Coke and Pepsi target customers from the middle class to the upper class.

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Economic ForcesWhen the economy is in recession, the real incomes fall and the expenses are high so the consumers move towards the product that they can afford. During this time, the pricing strategies of Pepsi and Coke would have a very major influence on the overall sales volume

Natural ForcesDuring a natural disaster, like an earthquake for instance, the markets or suppliers might encounter shortages in the supply which will affect the sales of soft-drinks.

Technological ForcesThere is a huge amount of investment coming from the government to develop the infrastructure and to exploit the market opportunities to create new products in order to revive the market that might have reached the maturity level. This will majorly affect the sales of the soft-drinks as a greater product portfolio will definitely mean a larger customer base and subsequently higher revenues.

Political and LegalPakistan has a comparatively unstable political & legal environment, and as a result foreign investors are sceptical about investing over here, however due to the presence of such a huge market for both Coca-Cola and Pepsi they have continued expanding their area of operation in Pakistan. Moreover, the investment is crucial for the sound health of the economy so the Pakistani government makes a regular effort to improve business and trade relations with US and Asia.

Cultural ForcesEvery country has a different culture. In Pakistan, due to the Islamic Cultural values people prefer to use products made from Halal ingredients. As a result, Coke and Pepsi have to be vigilant to use only the ingredients acceptable in an Islamic country in order to avoid bad publicity and controversies.

DISTRIBUTION REVIEWThe Coca-Cola Company offers their product in different bottle sizes which include:

1. SSRB – Standard size returnable bottle2. LRB – Litre returnable bottle3. NRB – No return Bottles4. PET 1.5 - 1.5 Litre plastic bottles5. Cans – Tin pack 330 ml

Coca-Cola products are also available in different packing

1. 24 regular bottle shell2. 6 bottle pack for 1.5 pets3. 12 bottles in a pack for disposable bottles4. 24 cans in one pack

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Coca-Cola indulges in two types of selling:

1. Direct Selling2. Indirect Selling

Direct Selling – In direct selling they supply their products in the shops by using their own transport. In this type of selling the Coca-Cola Company has more profit margins.

Indirect Selling – In indirect selling the Coca-Cola Company has their whole-sellers and agencies to cover the areas that they wish to target. As it is literally impossible to supply the products to the consumer themselves due to the sheer volume of the demand, hence the company understands that marketing through suppliers is crucial for the availability of Coca-Cola products.

SWOT Analysis

Strength of companyCoca cola is one of the most popular brands in the world. Sold in over 200 countries and offering around 400 brands coca cola is one of the most renowned companies. The famous products that coca cola offer are Coke classic, Fanta, Sprite etc. Coca Cola’s popularity is a strength for the company. When launching new products Coca cola can use its popularity to sell its product. The new product, in our case, ‘Loca Lime’ can easily establish itself in the market. Some people prefer coca cola products and buy it so that they can be a part of the Coca Cola family.

Another major strength of the Coca-Cola Company is its brand loyalty. Coca cola is right now earning 80% of its profit by its 20% loyal customer for whom coke is not a beverage, it’s an addiction.

Coca-Cola is providing a diverse range of products conquering almost all the market segments for example Coke classic for the youth, earth and sky (tea) the middle aged and older people. Beverages like Powerade are available for athletes. This way they are able to capture a lot of interest from different types of customers.

Coca cola has majority of the market share in the soft drink industry making them the major players in the beverage industry and giving them a control over the market; winning automatic preference of the consumers through its reputation Coca-Cola has improved its revenues generously. The total profits of coca cola company were up to $2.37bn (£1.56bn), up 16% from a year ago and slightly above forecasts of $2.3bn. Improving its quality and winning more of the market share. According to BBC Coca-Cola has reported strong second-quarter profits, beating market expectations, thanks to rising international sales. . With increasing revenues yearly Coca-Cola now can invest more in Research and Design and help the company in better performance and will lead to further innovations.

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Coca-Cola’s headquarters are in Atlanta USA but all the management is handed to the country itself. Like in Pakistan, Coca-Cola Beverages Pakistan Limited (CCBPL) is managing and marketing the whole production distribution process. Through this decentralized channel the company is ensuring a smooth and efficient flow of the process which increases the performance of the company. We can see around us that almost every store has a Coca Cola refrigerator. This means that the product is highly available in the market. This has a huge impact both financially for the firm and psychologically over the customer’s mind.

Coca-Cola’s Promotion Initiatives:

According to USAtoday.com Coca Cola teamed up with Santa Clause and donated $120,000 to Toys for Tots. Cola life an independent NGO is using Coca cola’s established distribution channels (franchised distribution channel) to provide simplest medicines at the remotest areas. This way Coca Cola once again is strengthening its image in the eyes of the world.

Moreover Coca-Cola has amazingly marketed its product with eye catchy commercials and celebrated brand ambassadors. Ali Azmat was their brand ambassador and for the youth of Pakistan he is someone that they idolize, endorsements like these can have a major role in strengthening Coca-Cola position in the mind of the customer. Seeing their favourite celebrities drinking coke, the fans are most definitely influenced. Based on our research following results were found.(Figures in Percentage)

Coke Studio one of the most watched shows in Pakistan is basically Coca-Cola’s unique way of marketing their product. A show adored by a huge number of music lovers. This helps in establishing

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brand loyalty, indirectly leading to higher sales. Furthermore Coca-Cola was a sponsor for the FIFA 10 world cup as well. Additionally we know that English Football is the most watched football league all over the world. Coca cola has been a major sponsor of football over there and the first division league is known as Coca Cola Championship. This way Coca-Cola has been able to drive its sales and it has been able to create positive publicity. It also has shaped consumers attitude towards the brand. All of these unique ways of promotion of Coca-Cola are a major strength for the Company with regard to the competition it faces.

Strengths of the productLoca Lime is the name of the product which is lemonade with a uniquely refreshing taste; the product is designed with a special focus on how it can contribute positively towards the health of the consumers. This juice if properly marketed would be something that will be demanded by people of all age and gender throughout the country, since lemon is a flavour cherished all around the country, especially in summers. Secondly, the one litter bottle would be easily crushable. This way it would not be environmentally threatening. The design has already been used in Japan for another product called LOHAS and it has proved to be really successful. The bottle is very light and it is 40% less in weight than regular PET packaging.

WeaknessesIn the past decades coca cola has fought a lot of lawsuits defaming the image of the company.Allegations like

Discrimination Drinks containing benzene(used in the production of drugs) Assassination of 470 unionist since 2002

These cases did lead to a minute fall in the sales of coca cola and was a minor blow to the company.

Coca cola has a strong competition from Pepsi Co. Products like Pepsi, 7-up, Slice are direct substitutes of Coke Classic, Sprite and Minute Maid. In Pakistan Pepsi co.’s brand ambassador is Shahid Afridi the Pakistani cricket team captain. Cricket is the most played game and through generations Pepsi has driven its marketing campaigns by choosing brand ambassadors like Wasim Akram, Javed Miandad etc. and via this Pepsi has been able to capture a larger portion of the market than Coca-Cola.

Flop brands are another general weakness of the coca cola company. Heavy R and D cost which was not repaid by revenues led to loss. Weak products or brands are the weakness of the company. These products are the Dogs in the BCG matrix. These brands are actually supported by either cash cows or stars like Coke Classic and Diet Coke. These brands failed because of improper test marketing and poor product development. Brands like The New Coke and Coke black are included on the top of the list. These products indirectly decrease the profit as they increase the operating cost of the company itself.

Opportunities

Coca cola has been sponsoring events which help in brand positioning in the minds of consumer.

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Upcoming Cricket world cup is the opportunity that the company can capitalize upon which may help the company in strengthening its customer base and increasing its brand loyalty.

Plus making a Pakistani sportsman a brand ambassador would be really advantageous as it will increase Coca Cola’s sales. How will this help? Well Pepsi Co has already used this idea and generated humongous amount of revenues. Javed Miandad, Shahid Afridi etc have been Pepsi’s brand ambassador. People in Pakistan are passionate about their sports and they idolize the national heroes of all the sports. Also Rugby world cup 2011 is also an opportunity that the company can capitalize upon as well.

Coca cola could have improved its brand image by running a campaign to collect flood relief revenues for the flood affected in Pakistan. This way they could have helped the needy and improve their company’s image as well.

Coca cola is sold over 200 countries but still there are third world countries where coca cola is not available. The company should start capturing these markets and spread its distribution worldwide.

Coca cola can expand its product line by product development. This can be done by buying a restaurant or buying small players in the industry.

ThreatsCoca-Cola’s major threat is Pepsi Co. They are the major competitors and every brand of coca cola is being competed by a product of Pepsi co.

Coca Cola Pepsi Co.Coke Pepsi

Fanta Mirinda

Sprite 7up

Minute Maid Slice

Pepsi co. although has been beaten at times but they still pose a threat to Coca Cola company because they are the perfect substitutes of each other.

A decrease in the GDP of the country means lower purchasing power. This will lead to a decrease in the sales of coca cola.

People have become more health conscious and this may tend to decrease the sales of the company.

Lower Exchange Rate may lead to lower profits.

Change in technology is a threat. With this change Industry practices changes as well the company has to upgrade its technology as well.

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Coca Cola had also suffered before when American products were boycotted by Muslim around the globe because of the Iraq war. This meant that coke was also boycotted. This happened in 2008. This is a threat to company as these events could repeat once again and could lessen the company’s sales.

Objectives:

We are launching loca lime with our minds set around four core criteria:

1) We want to build a healthier image of the brand coca cola among the local population, through the launch of our health-friendly lemon juice.

2) To get an even wider brand recognition and acceptance among the people of Pakistan.3) To become a recognized brand in the juice market among the masses.4) Expand into numerous flavours in the long term with the product line trademark as “Loca” a

name that would portray the healthier side of the Coca-Cola company (loca apple, loca mango etc. ,similar to minute-maid)

Building a Healthier Image:Coca-Cola is a brand that especially in Pakistan has developed its name through its more popular fizzy drinks such as the coke itself, Fanta and Sprite. . As we found out through our research a lot of people are concerned about their health and hence are sceptical of the products launched by the brand Coca-Cola hence building a healthier brand image is very essential. Most of the popularity of the company in Pakistan has come due to the superior taste and quality of the company’s products; however the overall unhealthy image of fizzy drinks has developed coca cola as a possible health risk in the mind of the health conscious people. Hence one of the objectives of launching a juice like loca lime would be to promote an image of the brand that appeals to the general public as something that is refreshing as well as healthy. Through the promotion of the image of the brand we can hope to achieve an even higher market share in Pakistan. A healthier image of the brand would contribute towards the increase in brand loyalty of the Coca-Cola brand in general.

Wider Brand Recognition:As mentioned earlier, In Pakistan most of the people associate the brand name Coca-Cola to the drink Coca-Cola itself, since most of them are unaware of the huge number of products that the

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company actually has all around the world. With Loca Lime we hope to add a dimension of diversity when positioning our brand in the mind of our consumers. This diversity will help add to the how people can relate to the brand Coca-Cola. The ultimate goal would be to come to a point where people at the top of their head would have Coca-Cola as a leading name in the fizzy drinks industry as well as a leading name in the juice industry. Moreover the healthier image and the increased brand loyalty will increase the brand acceptance among the masses. The definitive objective of having a healthy juice representing the brand would be to change how people look at the products of the company Coca-Cola and the brand as a whole, here change would mean to improve the image in the mind of the consumers, moreover getting a country wide acceptance would be one of the primary goals.

Capturing the juice market:The third primary objective of launching loca lime would be to emerge as a leading name in the juice industry in Pakistan. The juice industry in Pakistan already has numerous quality brands competing for market share hence for Coca-Cola to make it big in the juice industry would have to come up with something that is of supreme quality and has something unique to offer, and that’s exactly what we hope to provide with loca lime . Coca-Cola although will have the advantage of having a widely accepted brand name hence capturing the market with a new product would be comparatively easier however we cannot rely totally on the brand name to do the trick for us , hence offering something new would be absolutely vital for us to be able achieve our goal. Hence providing something new would be our focal point, moreover in order to attract the maximum number of people to prefer loca lime over their current juice company we’ll have to do some extensive marketing while being smart about it as well.

Expanding the ProductAdditionally in the long term the plan would be to expand this juice product line by introducing new flavours, as this a necessary step in order to stay competitive in a market with such a high sense of competition. This product line would be different from the other juices launched by Coca-Cola in the sense that the main focus in this product line is on promoting a healthier image of the brand in Pakistan.

Issues:Achieving the above mentioned objectives won’t be easy and the main issues we are expected to face in the pursuit of our goals would be as follows:

1) Getting people to switch from their current preferred juice company would need either a unique selling proposition (USP) or some extensive marketing.

2) Changing a brand image takes time hence in the short run our product might not be as appealing to the health conscious segment.

3) The initial lack of diversified flavours could be a hindrance in capturing a big market share.

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Giving people a USPPeople generally want to avoid switching from something that they like, something that they're used to, something that is within their range; hence getting people to switch to a new product in general isn’t all that easy. And without a good enough reason people won’t switch from their current juice of choice. We can provide that reason but for that we need to think out of the box, both in terms of the quality of our product and also in terms of the marketing strategy of the product. We can provide people with a USP that will surely get them to switch to our product. But providing a USP isn’t all that easy, especially for a commodity like our juice. However this USP can be provided by maybe giving the people a price that is within the range of most of the general public, or through formulating a unique taste for a lemon juice, which isn’t all that realistic since taste is a very subjective term. Nevertheless what we do have control over is how we choose to promote our product, and that exactly could be our USP, marketing our product in a way that we can attract the maximum number of people would be how we will get the people to actually switch to loca lime. Moreover the people who are already a part of our loyal customer base would be easier to persuade since for them it would be a matter of trying the new product launched by their trusted brand.

The Time FactorAdditionally something else that can become a concern for the Coca-Cola Company’s objectives for launching this product would be the fact that building upon the current image of the brand would take some time, hence adding that health-friendly dimension that we talked about earlier would require some serious work on how loca lime and similar products are launched and marketed in the future. Also loca lime, although will add a healthier element to the brand but its affects won’t be as widespread or that strong since it takes time for the perception of the people to change. So it is possible that our product does not do as well initially among the people who are cynical about the brand. Nonetheless, as mentioned earlier we can reduce the time in which we convert the cynics to believers by applying the correct method of marketing, a manner that directly appeals to the masses in general and the cynics in particular as a product that is good for their health.

Lack of choice: In addition to all of this the final core fear that could be there in terms of how the new product performs in the market is that the initial lack of options in flavour would pose a threat to our goal to become a leading name in the juice industry in Pakistan. However the answer to this possible issue is that we do plan to launch several other flavours based on the response of the consumers to loca lime, moreover we do understand that in order to become a leading name in the juice market as well we need to be able to offer several flavours, hence in the long term we will be launching other flavours to continue the healthy trend of juices that loca lime will start. Therefore we believe that launching a sole flavour in market initially isn’t a bad idea since this will develop interest among our brand followers as well as among the new consumers, and will give us an idea about how to shape our marketing strategy in an even better way so as to perform better while launching other flavours. Also this solo launch of loca lime will help us in identifying our target market segment.

So we can see that there will be impedances in our attempt to reach our objectives with this product but through properly thought out marketing plans we can overcome almost any issue that may pose a threat to the success of our new product, however in any case we need to be proactive rather than

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reactive we have to be ready for even the issues that we don’t currently even consider as something that could be pose a threat.

Product Life Cycle:

In the long run, all existing products and services that have ever been placed before consumers are destined to perish. For example, the automobile industry witnessed the birth the Ford Cortina, a model that was so fundamentally successful, it formed the basis of industry benchmarks. However, the Cortina fell away into obscurity only to be followed by the Sierra and then the Mondeo. The concept of products being born, growing, maturing and dying thus lie in the never-ending need for innovation and advancement. Taking this a predeceasing step further, the very act of commercial modernization is a reaction to the consumer itch inherent in all of us for something ‘new’ and ultimately, different. Its overall sustainability is commanded by how effectively the product or service delivers on its pledged benefits. As such, organizations are actively creating, launching and withdrawing products and service in a process known as the Product Life Cycle.

Coca Cola’s success has always revolved around the secrecy with which it values and withholds its formula and it has maintained this culture of confidentiality since its inception. However, this does not mean the organization has fallen prey to regurgitation of dated product ideas or stagnation in its ability to develop. In fact, it is Coca Cola’s uncanny ability to constantly develop a product or brand with timely and subtle ‘tweeks’ in formula that have allowed the organization to extend its product lifecycles. Most significantly, Coca Cola focuses on consistently reinforcing its core product benefits of taste and refreshment to ensure the brand is continuously achieving new peaks.

Secondly, Coca Cola Company has ensured expansion of its product lifecycles through adapting with consumers’ needs change. This can be evidenced by their market research conducted in the 1970s, which conclusively prioritized diet and health as a growing need for customers. Coca Cola envisioned that this consumer preference would eventually transform into a necessity. As a result, the organization capitalized on market research and launched Diet Coke. This development in Coca Cola Company is seen as an ideal case study on the careful and extensive nature of properly conducted, orthodox market research whereby a change in consumer psychology was identified as a unique opportunity for product longevity. One not need look further than the fact that 60 million Diet Coke drinks were sold everyday at its launch in 1986.

Asides from expansion of product lines, companies with existing brands can introduce new products under those brand names to the marketplace. This is known as brand extension strategy. Keeping this in mind, Coca Cola Company has taken the initiative in launching the first non-

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carbonated, lemon-based juice drink under the licensed name of ‘Loca Lime’. The launch of a new brand ensures Coca Cola’s continued viability and market relevancy. Coca Cola’s primary objective will be to establish, gain market share, and solidify the ‘Loca Lime’ brand with the ultimate goal of creating another billion dollar brand in their already lengthy list of brands. As mentioned previously, once ‘Loca Lime’ achieves market sustainability, Coca Cola can opt to implement the brand extension strategy in order to maximize its product life cycle.

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Marketing Mix – Four Ps:

Product:The new product set for launch is essentially a refreshing, fresh lemon juice drink under the

added brand ‘Loca Lime’. It is differentiated against the market in that it is a non-carbonated drink. It is to be packaged in both 250ml glass returnable bottles and 500ml, as well as1.5litre plastic disposable bottles. This is in keeping with industry standards.

The design of the bottle is unique and focused on the Go Green routine, which dictates Coca Cola manufacture and make public packaged bottles that are in tune with the environmentally friendly theme. Recently, a local Japanese Coca Cola franchise had reinvented its operational entity through the introduction of a new brand: ‘I LOHAS’. Following the aforementioned example, ‘Loca Lime’ is to be packaged in ultra-light, ‘crushable’ plastic bottling mechanism that gives the advantage of a 40% lighter bottle as compared to the industry standard PET packaging. This added feature in ‘Loca Lime’s’ brand management encourages consumers to recycle and contribute to Coca Cola Company’s global Environmental Sustainability Program.

Additionally, the label size has been reduced so as to cost-save in materials. Moreover, the water is sourced from regions close to the manufacturing plant in order to further reduce CO2 emissions caused in the transportation process. It is important for ‘Loca Lime’ to be brand aligned with Coca Cola’s global initiatives, as the nature of the product is health-conscious and family-friendly. As such, ‘Loca Lime’ will take a conscious course of action to steer clear of labels such as ‘processed’ and ‘synthesized’. Closely interacting with Corporate Social Responsibility services such as the aforementioned ensures ‘Loca Lime’s’ brand positioning will be one that agrees with all ages, especially the youth.

Price:The basis for Coca Cola’s pricing strategy is pre-existing industry benchmarks. This would

entail glass bottles retailing for 20rs with the condition of return upon use. As far as targeting of green consumers is concerned, there would be a 10rs markup on the 500ml bottle as production of environmentally friendly plastic bottles incurs value-added costs. As a result, 500ml bottles would retail at 45rs. Such a pricing scheme is based on the very Japanese Coca Cola franchise that endorsed crushable and recyclable plastic bottles.

Undoubtedly, inflated prices are a detriment to the overall sales volume of ‘Loca Lime’ however, through an intense and carefully channeled marketing message, the price of the juice will be compensated for due to its added benefits (i.e. health benefits, the drink for the athlete). For these reasons, the element of promotion will be crucial to the success of ‘Loca Lime’.

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Place:Coca Cola Company has the distinct privilege of boasting a highly sophisticated, world-

renowned supply chain system established over decades. It is significant to note that Coca Cola has come to achieve such an incredibly well-integrated operations system through constant major restructuring, as well as the more subtle tweaks required to create an almost self-sufficient producing machine. Whilst Coca Cola’s organizational capabilities allow for it to launch a nation-wide release of ‘Loca Lime’, it is wise to observe some amount of sensibility and austerity.

In light of this, ‘Loca Lime’ will initially commence distribution in the three major cities of Pakistan; Islamabad, Lahore and Karachi. The metropolitan nature of these cities is an acid test in itself as far as durable goods are concerned. ationale dictates that for a product or service to catch on and create a niche for itself as a competitor for longstanding, well-established companies, it must become a trend in Lahore. Secondly, for a product or service’s business sense to be truly tested, it must pass the examination that is Karachi’s scrutiny. Finally, a brand is only said to be self-sufficient and established if it is consistently earning profits in Islamabad. However unorthodox the logic, Coca Cola’s philosophy on the geographies of brand viability ensures that initial test results are examined without having incurred heavy monetary costs on the supply chain. Particular significance is given to the three major cities due to their diversity of demographics and the high sensitivity with which they correlate with their respective environments.

Promotion:Although Coca Cola has observed certain cautiousness in terms of the scale of ‘Loca Lime’s’

launch, the organization is committed to allocating funds in a more generous manner for the promotional campaign. The strategy involves three autonomous, con-currently running promotional campaigns, all of which are to be pursued post-launch.

Most significantly, Coca Cola, through celebrity endorsements such as Aisam-ul-Haq, will ‘spontaneously’ capture video footage of individuals or groups of friends traveling around the city tagging beaten down, unfinished and/or damaged neighborhoods of Pakistan with Coca Cola themed designs. It is important to mention, for our purposes ‘tagging’ denotes the creative expression of certain marketing messages with the use of spray paints and worn-down, bland walls, buildings, fences, etc. Of equal importance is the fact viewers would be unaware of the source of the video and as a result, of any link with Coca Cola Company. It is the organization’s hope that such videos would become viral on the Internet through social media websites such as Facebook, Twitter, Youtube, etc. The end goal is for the act of ‘tagging’ to become a trend/fad for the younger generation and eventually have this demographic, through their own will and initiative; take to the streets to express themselves in their own unique and creative way. Hopefully, with a bit of luck, their messages will have something to do with Coca Cola. The promotion is tentatively titled “Paint the Town Red”.

Simultaneously, ‘Loca Lime’ will be pushed into the forefront with Coca Cola’s promotional campaign “Into the Limelight”. This campaign will feature Coca Cola traveling and sponsoring various competitive events in educational institutions around Pakistan. Essentially, students would be

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encouraged to contest in competitions that would require them to use ‘Loca Lime’s’ crushable plastic to construct plastic sculptures. The emphasis once again is placed on the direct correlation between the younger generation and the need for creative expression.

Finally, immediately following the launch of the brand, ‘Loca Lime’ wooden stalls (reminiscent of stands set up in neighborhoods in American culture) would be set up at all major parks, schools, stadiums and such landmarks for the purpose of distributing free testers. It would be possibly beneficial to identify such a campaign with a social cause relevant to the target market of concern. For example:

“COCA COLA FOR TEXTBOOKS: PLEASE DONATE A LITTLE, WE’LL GIVE THE REST!”

Action Plan:The action plan regarding how the Coca-Cola Company will go about launching the product can be divided in the following broad categories:

1) Pre-launch marketing2) Launch Dates & Venues3) Launch Execution4) Post launch promotion campaign5) Monitoring & Re-execution

Pre-Launch Marketing:Our pre-launch marketing would include advertisement mainly on the TV and in the print media. Advertisements will be played on different popular channels with reasonable frequency; pre-launch ads would have the objective of raising interest in the audience. The ads would raise awareness among the public about the product that is coming their way, ads would be made in a way that would concern the old & young alike, since the purpose of pre-launch marketing would majorly be to cultivate a sense of anticipation about the general public about Loca Lime. Similarly ads in print media and Billboards would be made in a way that would raise curiosity among the people about the product.

Launch Dates & Venues: The product loca lime will be launched in the last week of January 2011. Initially the launch will be only in the selected major cities of the country. Islamabad, Rawalpindi, Karachi, Lahore, Quetta and Multan will be the cities that will be targeted in the initial launch. The reason for doing this would be to assess the response of the consumers and judge the potential for growth for the product, once we are satisfied by the initial reaction we will start expanding the area that is covered by us with the launch of loca lime. The ultimate expected goal would be to gain a country wide recognition and

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acceptance of this new product, however for something like that to happen we would need to consider this definitive goal as a long term objective.

Launch Execution:The initial launch in the last week of January would see the product being launched in all of the above mentioned cities. At the start the product would be available in all the super markets in the mentioned cities, where we would set up exclusive vending stands with the company representative sales personnel selling the products to the consumer themselves and getting feedback from the consumers as well. This activity would continue for a week in all the cities after which the product will be launched city wide, covering most of the retail shops around each of the city.

Here it is very important to mention the celebrity brand ambassador specifically chosen for this product is Aisam-ul-Haq, the tennis star of Pakistan. Aisam-ul-Haq already has already agreed to be the product endorser for loca lime. In our launch Aisam-ul-Haq would make a special appearance in Metro Cash and Carry Islamabad for the launch of loca lime in Islamabad, his appearance would prompt his huge fan following to try the product that their beloved Tennis star is recommending. However due to his tight schedule the only other appearance he would make during the launch week would be at Lahore Metro Cash and Carry Store. Further he would also feature in our TV Commercials and print media ads. Through this celebrity endorsement we hope to achieve a better awareness and acceptance of loca lime among the huge fan base of Aisam-ul-Haq in particular and broadly among the general population.

Post Launch Promotion Campaign:This probably is the most important part of our action plan, this is the point in time where we will make or break the image of our product, since in this time how we choose to promote loca lime would determine how soon our product becomes, so to speak,” The next big thing” in the mind of our consumers. In this phase we will come up with ads that will be there for the next month or so being played on popular channels on a frequent basis. Plus as said before print media and billboards would also be there with new post launch product ads. Moreover once the product is out there, in order to increase awareness, Loca lime would sponsor sports event on city level in one city from each of the 3 provinces in which the product is initially launched, besides this we will continue our campaign in major universities, national and multinational offices in these cities. This micromarketing will include the provision of free samples to office workers and university students, also in a select few universities Loca lime would sponsor an Intra university fun event. We believe that the people who are working hours on a daily basis in offices and students who are going through their routine university life would appreciate a break from their tedious schedule and would be open to not only test the product but to recommend it to others as well.

Additionally, in our post launch promotion we will also use Coke Studio to endorse Loca lime that would be a good way to pitch this new product to the fans of Coke Studio. Apart from all of this we will be continuously on the look for possible ventures that can add to the customer base and recognition of Loca Lime.

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Monitoring & Re-Execution:Once we have had Loca Lime in the market for a substantial amount of time (3-6 Months) the time would come for us to match our goals of launching the product with what we have achieved in the given time frame. Moreover during this time we would also have kept a check on how the product has been received in the market, in what areas has our marketing and promotion strategy worked and in what areas does it need improvement. Based on answers to all of these questions we would either revisit how we are going about marketing the product or we would expand in other cities as well as expand in terms of the number of flavours that we are offering. In the case that Loca Lime is received by the public as we hoped we would gradually expand into other cities with it, moreover based on the customer feedback and requirement (and as mentioned earlier, in order to stay in competition with other juice brands) we would launch new flavours with similar ambitions associated to them as in the case Loca Lime. However if Loca Lime does not perform as expected in the market, then our focus would shift towards revisiting the market strategy of the product and as required we will alter the marketing framework for the product.

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Budgets:BRAND ELEMENT

Slogan & logoThe slogan that we have chosen for our brand Loco Lime is ‘Energize Your Life’ since it is a clear depiction of how our product Loco Lime can enliven your mind and soul while at the same time provide you with a refreshing experience. This is consistent with the overall Coca-Cola theme of providing moments of happiness and optimism in life therefore, it will blend in well with our existing product portfolio and will be placed in the right place in the minds of the consumers. Loco Limey will have an image of good taste and quality which is what the brand Coca-Cola is all about.

COMMUNICATION STRATEGYThe Coca-Cola Company will use different sources to communicate with their target market which will include television, newspapers and billboards. When we launch Loco Limey we intend to use teasers to generate interest in the upcoming product by the use of the above mentioned forms of media. TVCs will be run on the prominent TV channels in addition to flyers and banners all across the major cities of Pakistan like Lahore, Karachi, Islamabad and Quetta so that they consumers are aware of the fact that Coca-Cola is launching a new product and generate hype and anticipation. Moreover, Coca-Cola plans to hire Aisam Ul Haq as the brand ambassador of Loca Lime as he is an embodiment of good energy that Loca Lime promises to enrich your life with, in addition to being a role model for the Pakistani youth. Also it is intended to give Loca Lime a healthy image in the minds of the consumers as it being promoted by a sports figure of Pakistan.

Communication ObjectiveThe Coca-Cola Company uses sources like TV, billboards, newspaper advertisements and promotional campaigns to attract the customers and create product awareness about their new products. Coca-Cola tells the customers that their products give you energy, good taste and a good life to enjoy. It also gives out the message that the products are good for your health and in addition to enjoying the taste you are also taking care of your body.

Advertisements on TV channelsOne of the major forms of media that Coca-Cola promotes its products through is through television advertisements as it is the most popular of all forms of media and is watched by the general public. Hence, it is definitely a good way of communicating to the target market of Loca Lime in Pakistan. Before deciding on the timings of the advertisements, Coca-Cola will keep in mind the type of customers that they wish to attract, the times they watch TV and the timings of the competitor’s advertisements. In order to reach out to their specific target market Loca Lime advertisements will be shown on the leading TV channels Geo, ARY, PTV and AAG since these hold the highest rank in terms of popularity among the youth of Pakistan. Moreover, before the launch the teasers of Loca Limey will be run on these channels to increase the customer interest and generate anticipation.

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NewspapersCoca-Cola will also advertise their new product Loca Limey through advertisements in the newspapers as a large number of the consumer base reads newspapers on a daily basis. As with the television advertisements, Coca-Cola will keep take a look at the number and placement of the competitor’s advertisements in order to occupy a favourable position in the newspapers as to reach out to their customers more effectively. They’ll also analyse the types of newspapers that their competitors place their advertisements in so that they can plan better as to how to fare better than their competitors in terms of communication. For this purpose, Loca Lime will have advertisements in The News and Dawn which are two of the most popular newspapers of Pakistan and are widely read by everyone. Teasers will also be printed in these newspapers prior to the launch of Loca Lime

BillboardsCoca-Cola also plans to attract their customers through advertising on billboards in the main cities because it is a highly effective way of reaching out to the target market. This will be done by placing them in strategic places where there a large number of customers throughout the day like a public place or near busy roads etc. 500 sq. ft. billboards will be used in each region in addition to flyers along the main roads in order to ensure that the maximum number of people see it on their way to work or when they’re out to have fun. Aisam Ul Haq, our brand ambassador will be featured on both the teasers and the post-launch advertisements.

Marketing Budget

TV Budget – As Loco Lime’s main competitor are Nestle juices who increase their advertisements during the summers when the juice season is at its peak, Loco Lime will follow the same pattern, advertising heavily during the summers on TV channels at different timings. The total advertising expense for TV channels will be PKR 752,226.

TV BudgetChannel Timing No. of ads Price/mint PTV home 8am 5 PKR 100,000 9pm 4 PKR 132,226AAG 8pm 4 PKR 50,000Geo 10pm 5 PKR 70,000ARY 9pm 5 PKR 400,000 Total PKR 752,226

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Newspapers – Coca-Cola will advertise in The News, Dawn and AAG concentrating on the weekends for their newspaper advertisements. The total advertisement expense per day for the newspapers would be PKR 2,112,920.

Newspaper BudgetNews Papers Size Day PricesDawn 27x4 Sunday PKR 430,920 The News 27x4 Sunday PKR 1,682,000 Total PKR 2,112,920

Billboards –Coca-Cola will cover each region with 500 sq. ft. billboard since this is the strategy employed by their competitor Nestle. All the major cities will have billboards over flyways and on busy roads to attract customers. The three different rates of billboards are PKR 40000, 70000 and 125000. The total estimated cost of billboard advertisements for Loca Lime will come to PKR 2,600,000.

Distribution Costs – Coca-Cola will also pay its distributors to carry Loca Lime along with the other products of Coke. High-end retailers will be chosen initially in order to create an ‘exclusive’ image of the brand to position it as healthy in the minds of the consumers; a product with healthy ingredients. Later on, after the initial launch it can be expanded to cover more cities in order to cater to a larger customer base and indulge in mass marketing to generate the maximum revenues. The distributors of Loca Lime will be provided with freezers and coolers in order to chill the drink properly prior to its sale. Distributors will also be given incentives to place Loca Lime at strategic places in the shelf in order to catch the eye of the customers. The estimated cost of distribution for Loca Lime in the first year will be PKR 740,000,000.

Brand Ambassador – As it is mentioned above, Aisam Ul Haq will be hired as the face of Loca Lime in Pakistan and the Coca Cola Company will enter into a yearlong contract with him estimated to cost around PKR 5,000,000.

Price Structure(Consumer Price)

200ml PKR 20 500ml PKR 35 1000ml PKR 70

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Total Yearly ExpenseAdvertisement sources Costs

TV Channels PKR 752,226

Newspapers PKR 2,112,920

Billboards PKR 2,600,000

Total Cost Per day PKR 5,465,146

Total Advertisement Cost per Year

PKR 1,967,452,560

Brand Ambassador PKR 5,000,000

Distribution Costs PKR 740,000,000

Total Costs Per Year PKR 2,712,452,560

CONTROL

There is no planning without control. We plan to use Marketing Control to manipulate our marketing plans in order to efficiently reach out original goals. The basic blueprint involves drawing up goals that the campaign is designed to meet and then drawing up the plans and strategies that are intended to achieve those goals. If those plans start to fall short of the desired standards, they then need to be adjusted to get the campaign once again pointed in the right direction. Marketingcontrol involves the analysis of where the original plans are falling short and the steps taken to correct those problems.

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We plan to achieve this process by setting up performance standards that will ideally be reached at each step of a marketing campaign. The marketing manager will compare actual progress against the standards. If these standards are not being met, corrective action will be taken. The problems need to be identified before any action can be taken, lest more damage be done. Once the problems are identified, then the proper method of marketingcontrol may be exerted in an effort to bring about the desired goals.

There are many methods of achieving marketingcontrol, which can include but are not limited to;

Market Research Market share analysis.

Sales analysis.

Quality controls.

Budgets.

Ratio analysis.

Marketing information systems (MKIS).

Feedback from customers’ satisfaction surveys.

Cash flow statements.

Customer Relationship Management (CRM) systems.

Sales per thousand customers, per factory, by segment.

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Location of buyers and potential buyers.

Activities of competitors to aspects of our plan.

Distributor support.

Performance of any promotional activities.

Market reaction/acceptance to pricing policies.

Service levels.

Market Research

We plan to use Marketing research to gather and analyze data to see if Loco Lime is meeting the needs of the marketplace. Research is the most obvious tool for identification of how well the marketing campaign is proceeding. We plan to do it through customer surveys or product testing. Focus groups are another popular way of ascertaining if our product is hitting its desired target audience or if the marketing techniques are getting across the desired message. We’ll get to know if our customers are satisfied with our product and find ways to improve it by changing the packaging etc. if they are not.

TestingAn important marketing control regarding our new product Loca Lime is test marketing. Before spending large amounts of money to produce and market Loca Lime, Coca Cola will test the product on a small scale by using focus groups or a limited distribution. This can help Coca Cola predict the success or failure of the Loca Lime.

Budgets

Marketing managers use statistics to assess the success of a marketing strategy. In addition to sales volume, they will also look at their market share and compare it the competition. The managers will also determine their return on investment by examining overall sales in relation to the cost of marketing and production.

Pricing Strategy Pricing may need to be adjusted to meet changes in the market or to maintain profitability. If Loca Lime’s chief competitor implements a significant price reduction, Loca Lime may be forced to do the same to maintain market share. Conversely, if production costs rise, Loca Lime may be forced to increase prices to remain profitable.

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Promotion StrategyWe may also need to adjust our promotion or advertising strategy to change consumer perception and increase sales. For example, if Coca Cola finds out that the sales of Loca Lime are being lost to a competitor, it can gear up its promotion strategy to gain back its lost customers.