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I.

Executive Summary

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In a market saturated with cola brands, there came Virgin Cola. It’s the

brainchild of rebel billionaire Richard Branson, who leads the empire of Virgin-

branded products. Upon it’s launching in 1994, his intensions were clear: he

wanted the brand to be as well-known around the world as market leader Coca-

Cola.

Virgin Cola launched amid huge publicity and expectations to match.

Branson teamed up with Cott Corporation, a Canadian private-label soda maker,

in a 50/50 equity joint venture to produce cola under the Virgin banner. Following

a modest start in Britain, in 1998 Branson took his cola brand to the US where he

sought to create a major rival to Coca-Cola and Pepsi, who he called the ‘cola

duopolists’.

Branson launched the product in the US lavishly and advertise it through

New York Times. Virgin Cola also enjoyed high-profile celebrity endorsements in

its early days. When the 500ml bottles launched, they were marketed as “The

Pammy”, as their curves were designed to resemble Pamela Anderson who was

at the height of her popularity in the UK and USA at the time. Immediately, there

were raised eyebrows among those who understood the market. John Sicher,

publisher of the US trade publication Beverage Digest, was instantly dismissive.

Even before the high-profile US launch, there were serious problems: Virgin

Cola’s relationship with Cott Corporation broke down due to a dispute over

strategy, and Branson bought Cott’s stake in the company shortly before the US

launch. It quickly became clear that Virgin Cola was struggling to compete with

its more established rivals.

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As Branson himself acknowledged, the Virgin brand has usually

succeeded in other areas by exploiting competitors’ weaknesses. But as the

Coca-Cola sensed the potential of Branson’s company, they responded to the

launch of Virgin by immediately doubling its advertising and promotion budget.

A major reason Virgin Cola found it difficult to compete in the UK was problems

with distribution. At the first place, in Britain, Virgin Cola was gradually dropped

by supermarkets and smaller chains, leaving its presence largely confined to

Asda stores, who only stocked it in large, two litre bottles, costing between 20-

30% less than their rivals. But Asda, its distributor continued to stock Virgin Cola

until August 2009 because of its poor sale. Asda said that they have to stop

selling unpopular products to make a new room for better ones that are really in

demand. Therefore, Virgin Cola has been discontinued due to poor sales across

Asda. The following month, its manufacturer, Silver Spring, entered

administration, which caused production and distribution to cease in UK. 

Due to unsuccessful battling of Virgin Cola to beverage market, Branson’s team

opt to pull out Virgin Cola’s in UK and US earlier in 2009 leaving its existence

only to the Philippines and Nigeria, where it is produced and sold under profitable

licence. It was until 2012 when the production was ceased at all in the Philippines

resulting negative profit. 

The marketing plan has been created for an effective formal full-entry

strategy for Virgin Cola in the Philippine soft drink market. It aims to revive the

product especially in the Philippine market and make it as the most dominant

beverage internationally.

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The firm has lacked sufficient efforts in promoting brand awareness which

led to its subsequent failure, and finally pulled out off the market. Effective brand

reasoning, influential advertising and persuasive promotions will actually be of

big help in competing with the well-known local cola brands. With these at hand,

Virgin Cola will be expected to increase its market share, win new customers,

and customers, and maintain brand loyalty to Virgin Cola over the next 5 years.

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II.

Current Marketing Situation

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HISTORY

Virgin Cola was first launched in Britain in 1994. Business tycoon Lucio

Tan is set to give US soft drinks Coca Cola and Pepsi Cola a competition with his

tie-up with British soft drinks “Virgin Cola”.  Virgin Cola would be positioned as a

lower-priced alternative to the more established and pricier Coke and Pepsi. 

InterBev, a Tan subsidiary, is investing about P1 billion to secure the license to

manufacture Virgin Cola in the Philippines. 

According to Hubert Tan, InterBev vice president for sales and marketing,

the P1-billion investment would also be used for additional facilities for the Virgin

Cola soft drinks line to be manufactured at Asia Brewery’s existing 100-hectare

plant in Cabuyao, Laguna.  Tan disclosed that an agreement had actually been

reached last April 2004 with the Virgin Group owned by British billionaire Richard

Branson. 

The lower-priced soft drinks category, according to Tan, is the fastest

growing segment in the soft drinks market.  Tan admitted that the Tan Group has

always wanted to enter the soft drinks business, but there was no opportunity in

terms of branding. 

Before Virgin Cola’s launch, Coke reportedly had a commanding share of

66 percent, followed by Pop Cola with a 21 percent share, while Pepsi has only

12 percent share and one percent by RC Cola. InterBev, Tan revealed, is aiming

for a 10 percent market share from the P5.5 billion Philippine soft drinks market. 

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InterBev, Tan further disclosed, plans to introduce Virgin Cola at a

competitive price of P5.5 per bottle, 50 centavos lower than Pop Cola. 

Virgin Cola would be available in three flavors – regular, diet and lemon

lime.  It would be initially available in Metro Manila and Southern Luzon where

InterBev has actually started testing the new softdrink.  The Tan Group already

manufactures several beverages including beer, fruit juices, spirits and water

through Asia Brewery. 

At present, due to lack of aggressive follow through advertisements, the

product line’s market presence was diminishing, and soon after, pulled out of the

Philippine Market.

A. MARKET DESCRIPTION

Market Size

According to the CIA World Factbook, the Philippine

population is projected at 101.83 million for 2012 with an average

growth rate of 1.873%. Over 60% of the population is between 15

to 64 years old, which means that the Philippine beverage market is

at mass.

Beverage Market

According to the National Statistical Coordination Board,

42.60% of the total family expenditure are used for food and non-

alcoholic beverages (includes consumption at home, school and

work).

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Market Demographics

Population: 101,833,938

Gender:

Male – 50,980,051

Female – 50,853,887

Age Structure

0-14 years: 34.6% (male 17,999,279/female 17,285,040)

15-64 61.1% (male 31,103,967/female 31,097,203) 

65 years and over: 4.3% (male 1,876,805/female

2,471,644)

42.6

12.8814.56

3.66

21.97

Family Expenditures

FoodElectricity, Water, and FuelTransportation and Commu-nicationEducationOther Needs

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Median age

Total: 22.9 years

Male: 22.4 years

Female: 23.4 years

Population growth rate–1.873%

Birth rate - 24.98 births/1,000 population

Death rate - 24.98 births/1,000 population

Market Trends or Market Needs

1. There is a rise of health consciousness as well as the fitness

trend.

2. The product’s after taste, strategic packaging, flavor and

ingredients are key sales considerations.

3. Filipino soft drinks companies go international by pursuing

expansion.

4. Use of sports as marketing tool

Factors That Affect Marketing Environment

In the decision making process, a business must take into

consideration the factors that may influence the consumers’ choice.

Several factors influence consumer choice. These are

psychological, cultural, social, and personal.

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PSYCHOLOGICAL

A person’s buying choices are further

influenced by four major

psychological factors: motivation,

perception, learning, and beliefs and

attitudes.

Motivation - The level of motivation

also affects the buying behavior of

customers. Every person has different needs such as physiological needs,

biological needs, social needs etc. The nature of the needs is that, some of them

are most pressing while others are least pressing. Therefore a need becomes a

motive when it is more pressing to direct the person to seek satisfaction.

Perception - Selecting, organizing and interpreting information in a way to

produce a meaningful experience of the world is called perception. There are

three different perceptual processes which are selective attention, selective

distortion and selective retention. In case of selective attention, marketers try to

attract the customer attention. Whereas, in case of selective distortion,

customers try to interpret the information in a way that will support what the

customers already believe. Similarly, in case of selective retention, marketers try

to retain information that supports their beliefs.

Beliefs and Attitudes - Customer possesses specific belief and attitude towards

various products. Since such beliefs and attitudes make up brand image and

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affect consumer buying behavior therefore marketers are interested in them.

Marketers can change the beliefs and attitudes of customers by launching

special campaigns in this regard.

CULTURAL

Cultural factors exert a broad and deep

influence on consumer behavior. Marketers

need to understand the role played by the

buyer’s culture, subculture, and social class.

Culture - Basically, culture is the part of every

society and is the important cause of person

wants and behavior. The influence of culture

on buying behavior varies from country to

country therefore marketers have to be very careful in analyzing the culture of

different groups, regions or even countries.

Subculture - Each culture contains different subcultures such as religions,

nationalities, geographic regions, racial groups etc. Marketers can use these

groups by segmenting the market into various small portions. For example

marketers can design products according to the needs of a particular geographic

group.

Social Class - Every society possesses some form of social class which is

important to the marketers because the buying behavior of people in a given

social class is similar. In this way marketing activities could be tailored according

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to different social classes. Here we should note that social class is not only

determined by income but there are various other factors as well such as: wealth,

education, occupation etc.

SOCIAL

A consumer’s behavior also is influenced by

social factors, such as the consumer’s small

groups, family, and social roles and status.

Reference Groups - Reference groups have

potential in forming a person attitude or

behavior. The impact of reference groups

varies across products and brands. For example if the product is visible such as

dress, shoes, car etc then the influence of reference groups will be high.

Reference groups also include opinion leader (a person who influences other

because of his special skill, knowledge or other characteristics).

Family - Buyer behavior is strongly influenced by the member of a family.

Therefore marketers are trying to find the roles and influence of the husband,

wife and children. If the buying decision of a particular product is influenced by

wife then the marketers will try to target the women in their advertisement. Here

we should note that buying roles change with change in consumer lifestyles.

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Roles and Status - Each person possesses different roles and status in the

society depending upon the groups, clubs, family, organization etc. to which he

belongs. For example a woman is working in an organization as finance

manager. Now she is playing two roles, one of finance manager and other of

mother. Therefore her buying decisions will be influenced by her role and status.

PERSONAL

A buyer’s decisions also are influenced by

personal characteristics such as the

buyer’s age and life-cycle stage,

occupation, economic situation, lifestyle,

and personality and self-concept.

Age - Age and life-cycle have potential

impact on the consumer buying behavior. It is obvious that the consumers

change the purchase of goods and services with the passage of time. Family life-

cycle consists of different stages such young singles, married couples, unmarried

couples etc which help marketers to develop appropriate products for each

stage.

Occupation - The occupation of a person has significant impact on his buying

behavior. For example a marketing manager of an organization will try to

purchase business suits, whereas a low level worker in the same organization

will purchase rugged work clothes.

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Economic Situation - Consumer economic situation has great influence on his

buying behavior. If the income and savings of a customer is high then he will

purchase more expensive products. On the other hand, a person with low income

and savings will purchase inexpensive products.

Lifestyle - Lifestyle of customers is another import factor affecting the consumer

buying behavior. Lifestyle refers to the way a person lives in a society and is

expressed by the things in his/her surroundings. It is determined by customer

interests, opinions, activities etc and shapes his whole pattern of acting and

interacting in the world.

Personality - Personality changes from person to person, time to time and place

to place. Therefore it can greatly influence the buying behavior of customers.

Actually, Personality is not what one wears; rather it is the totality of behavior of a

man in different circumstances. It has different characteristics such as:

dominance, aggressiveness, self-confidence etc which can be useful to

determine the consumer behavior for particular product or service.

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B. PRODUCT REVIEW

Virgin Cola

Type ColaManufacturer Virgin Drinks Silver Spring

Country of Origin

United Kingdom

Year Introduced

1994

Variants Diet Virgin Cola

Local Related

Products

Coca-ColaPepsi

Pop ColaRC Cola

Virgin Cola Flavors

Virgin Cola is a carbonated cola drink launched in 1994. It is

available in cans and bottles. It comes in different flavors.

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Virgin Cola (Original)

List of Ingredients

Virgin Cola (Blue)

List of Ingredients

Carbonated water FlavoringsSugar Sodium Citrate

Citric acidAntioxidant = Ascorbic Acid

Preservative = Sodium Benzoate

Carbonated water CaffeineSugar Acesulfame-k

Phosphoric acid PhenylalanineSodium Benzoate Phenylketonurics

Aspartame Natural flavorings

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Virgin Cola (Orange)

List of Ingredients

Carbonated water Citric AcidSugarStabilizersAcacia Gum FlavoringOrange Flavoring

C. REVIEW OF COMPETITION

Soft Drink Brands in the Philippines

1. Coca-Cola – leading soft drink in the market

2. Pepsi – Pepsi has evolved from being a cola drink to a brand

that stands firmly for the youth.

3. Sarsi – a Sarsaparilla rootbeer originally made by Cosmos

Bottling, now part of Coca-Cola.

4. Pop Cola - a low-cost cola flavored beverage from Cosmos.

5. Royal - the first CSD in the country, made in 1922 by San

Miguel Corporation, now a Coca-Cola brand.

6. RC cola - the cheapest soft drink in the market.

Market Shares

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As of 2010, the leading brand of carbonated drinks is Coca-Cola

with 80%; followed by Pepsi Cola with 15%, RC Cola with 3% and

other brands with 2%.

Competitors’ assessment

Coca-Cola Pepsi RC Pop ColaStrengths

1.Extensive bottling system

2.Packaging3.Brand Strength

1.Brand Strength

2.Effective stride in new

markets3. Strong existing

distribution

1.Low price2.Concentrate

d Brand Identity

3.Focused on Mass Market

1.Low price

80%

15%3% 2%

Market Shares

Coca-ColaPepsi ColaRC ColaOthers

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channels.

Weakness1.Health issues

1. Reliant upon line extensions.2. Reliant upon

particular carbonated

drinks.3. Brand dilution

entrance into non-core

categories.4. Saturation of carbonated soft drink segment.

1.Does not cater to upper class market2.Selective advertising

3.Not available in most fast food areas

1.Does not cater to

upper class market

2.selective advertising

3.not available in most fast

food areas4.Health

issue

Opportunities

1.Extensive target market

1.Further expansion of market share

2.Brand is attractive to

global partners

1.Expansion of target market

to international areas

1.More bottling

systems for further

expansion into the local

market

Threats1.Other

alternative beverages

1.Strong competition2.Potential

health issues

1.Strong competition

1.Strong competition

Product Quality

VIRGIN GROUP BRAND VALUES

1. Fun - Enjoyment and humor, not offensive and incompetent.

2. Value for Money – Simple, not cheap

3. Quality – Attention to detail, not expensive for sake of it.

4. Innovation – Challenging convention, not different for the sake

of being different.

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5. Competitive Challenge – Responding to consumer needs, not

being relevant.

6. Brilliant Customer Service – Empowered, not unprofessional

people.

BRAND NAME

The brand name “Virgin” arose when Branson and a partner

start where starting their first business, a record shop. They

considered themselves virgin in business.

LOGO

The Virgin logo was

originally sketched on a paper

napkin by graphic designer Trevor

Key and remains largely

unchanged from the original style

used.

TASTE

Virgin Cola is a sweet tasting cola that lacks the gassiness of

the Yankee brands. It is fizzy, but not too much, which makes it

especially good as a mixer. For the same reason it's more

refreshing to drink if you're thirsty.

PACKAGING

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o Can – Virgin Cola is packaged in red colored can with the

product’s name in white bold letters.

o Bottles – The bottle which contained

the cola was designed with curves to

resemble Pamela Anderson’s sexy

body who was at the height of her

popularity in the UK at the time of the

Virgin Cola’s release.

PRODUCT RANGE

Size Unit per case Type Flavor500 ml500 ml

1212

SparklingSparkling

ColaDiet Cola

500 ml 6 Pack500 ml 6 Pack

1818

SparklingSparkling

ColaDiet Cola

2L2L

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SparklingSparkling

Cola

D. DISTRIBUTION REVIEW

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2009 2010 2011 20120

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

67,494

93,910

76,805

48,566

Sales Volume

Sales Volume

Sales Review (2012)

Month 2012

January 4,945

February 4,494

March 5,888

April 6,365

May 7,668

June 5,836

July 4,600

August 3,961

September 4,809

October 0

November 0

December 0

TOTAL 48,566

Due to Virgin Cola’s unfavorable sales during 2012, the Interbev Group

opted to cease the production of the said product.

E. CHANNELS REVIEW

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1. Virgin is a brand whose customer franchise is so strong that it can be

applied to a vast range of businesses.

2. Virgin Colas can be made available in vending machines stationed at

schools, hospitals, cities and other public vicinities.

3. Virgin Colas may also be offered by fast food chains.

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III.

Strengths, Weaknesses, Opportunities,

and Threats Analysis

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Virgin Cola’s strength, weaknesses, opportunities and threats are

as follows:

STRENGTHS:

The power of the brand name; and

Economical

Innovation through image and packaging.

WEAKNESSES:

Too much dependence and emphasis on the brand name

Lack of promotion and advertisement

Virgin wants to be perceived as an alternative to coke, however

this space is already taken by Pepsi. This leaves Virgin out of

the loop

Virgin does not have an established distribution channel, this

will make it hard for Virgin Cola to break out of selected

supermarkets and enter mainstream channels.

Incongruence between strategic and tactical levels; and

Too reliant upon too few distribution outlets.

OPPORTUNITIES:

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Return of Virgin Cola products in the market

Diversification into new ranges of Virgin Cola products

Increasing consumption levels of soft drinks

The ability to gain more market share

THREATS:

Intense competition (the cola wars)

US saturated soft drinks market

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IV.

Objectives and

Issues

OBJECTIVES

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A. MARKETING OBJECTIVES

We have set achievable objectives for the first year of the market entry:

1. To restore Virgin Colas in the Philippine Market

2. To penetrate the Philippine market by making the products visible,

accessible and suitable to the Filipino taste and preference

3. To encourage brand shifting to our brand

4. To achieve maximum consumer satisfaction

5. To achieve 10% market shares in five years

B. FINANCIAL OBJECTIVES

Revenue

For a company, revenue is the total amount of money received by

the company for goods sold or services provided during a certain time

period. One of the devise we should use to generate revenue is through

various advertising and sales methods. Revenue objective that the

company intends to generate is 17 billion in sales during the

predetermined time frame that the marketing plan is in effect.

Costs

The projected costs are made up of the elements required to

manufacture and distribute the product including material costs, shipping

costs and personnel costs. The objective of this marketing plan is to track

these costs and find ways of lowering them to make the product more

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prices competitive in the marketplace. The financial objective with costs is

to find that balance which will allow the company to create a product that

meets company standards, but does so at the best possible price. The

total cost that the company would like to incur to manufacture and

distribute the product is almost 5 billion in 2013.

Advertising

Marketing plans do not only map out advertising strategies, they

also monitor advertising costs to try and find the best value possible for

future marketing campaigns. The advertising schedule set up in a

marketing campaign is done using historical data of past campaigns and

research done into new advertising costs. To be able to get more

customers, the company would like to promote the product through

magazines, newspapers, posters, internet, radio stations, televisions,

billboard ads and etc. The total cost for these advertisements allotted is

250 million in 2013.

Profit

Profit projections are a significant part of the revenue projections in

a marketing plan, and profit is also monitored just as closely as revenue.

Profit is not just a function of how low the company can get the cost to

deliver product, it is also based on how much the company can raise the

asking price. Prices are constantly altered and changed in various target

markets until the projected profit margin is attained. Profit is the surplus

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remaining after total costs are deducted from total revenue, and the basis

on which tax is computed and dividend is paid. It is the best known

measure of success in an enterprise. For 2013, the company is expecting

that there will be a 12 billion profit.

ISSUES

In relation to the product re-launch, our major issue is the ability to

establish a well-regarded brand name. We will have to invest heavily in

marketing to create a distinctive brand image projecting innovation, quality, and

value. We must also create product awareness among consumers so we can

adjust our marketing efforts as necessary.

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V.

Marketing Strategy

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STRATEGY PYRAMID

The Strategy Pyramid emphasizes the practical importance of building a

solid marketing plan structure. Most marketing plans are developed from the top-

level strategy first.

A. POSITIONING

Positioning is the process of creating a product image that will stick

to the minds of the consumers relative to the other competitors in the

market. It helps the consumers identify and differentiate one brand from

another by remembering the unique characteristics of each brand.

Virgin Cola will bank on symbolic positioning wherein it will identify

itself with Philippine society and adhere to its norms and trends. This is

the approach that worked for its competitor, Coca Cola. By managing to

position itself in line with the Filipino concept of family, it has successfully

Strategy

Tactics

Program

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penetrated the Philippine market and thus takes up majority of the

Philippine market share.

The societal context that Virgin Cola has to work in is full of hurdles

not only because of intense competition but also the conservative mindset

of people. Virgin Cola may have a strong image and brand name. As

stated earlier. It is one of their strengths, however, in the Philippine

context; it can be the brand’s weakness as well. It needs to position itself

in a subtle manner while maintaining its trademark look and brand name.

B. PRODUCT STRATEGY

New Flavors

For the launch of Virgin Cola we opt to introduce new flavors.

These are Black Premium Cola, Cherry Cola, Blonde Vanilla Cola, and

Jade Lime Cola.

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Repackaging

The trademark shape of the bottle

will be retained. However, the label’s design

was given a makeover. From the plain red

color that it used to carry, patterns and

other colors such as pink and blue were

added. This is not only to attract the

customer’s attention but also to give it a feel

of sophistication.

New Cover for Bottles

New Can Design

C. PRICING STRATEGY

In the Philippines, we will

have a virgin-to-coke ratio of 8:10. Psychological pricing is the strategy to

be adopted because Filipino consumers have a tendency to patronize

products that are cheaper even if it is only less a peso.

Suggested Retail Price

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Size Coca Cola Virgin Cola

8 ounce Php. 10.00 Php. 8.00

12 ounce Php. 12.00 Php. 10.00

1.5 liter Php. 45.00 Php. 36.00

D. DISTRIBUTION STRATEGY

Channel of Distributions

Product-Retailer-Customer

The retailer is the only middleman involved in this channel of

distribution wherein the producer let the big retailers sells his product to

consumers.

Why choose this channel?

Only a few middlemen may be required in launching a product that

needs promotional efforts in its initial stage. The nature and type of

middlemen also counts, for a good retailer can help maximize the volume

of sales of a product.

Our group chose a sole retailer for Virgin Cola in its launch:

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SM Malls

Why SM?

1. It is the biggest mall chain the country.

2. It attracts a large number of potential consumers.

3. It would be the best retailer of Virgin Cola because it could be a great

help in its fast penetration in the market.

After the Launch we expect:

1. The people become aware of Virgin Cola’s existence in the market.

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2. Asia Brewery can now retail in different stores, particularly in the

provinces.

3. We chose not concentrate that much in Metro Manila because competing

with Coca-cola, the no. 1 soft drink product in the city, would not be easy.

4. Virgin Cola will first get the larger part of the market, if not monopolize, in

the provinces while penetrating slowly towards the centre, which is Metro

Manila.

Fast Food Chains

Virgin Cola will also be available as beverage at different fast food chains

such as Jollibee, McDonalds and others. This will help in increasing the public’s

awareness about the existence of Virgin Cola.

Vendo Machine

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Vendo Machine of Virgin Cola products will also be

launched. These machines will be put on public places such as

schools and hospitals.

E. MARKETING COMMUNICATIONS STRATEGY

Promotions

Upon its re-launch, Virgin Cola would be available in all SM Malls

wherein free taste promotion would be conducted for a week. Posters and

billboards will also be posted in public places.

Press Conference

There would be press conference for the re-launched product

wherein press people and famous people would be invited and asked for

their opinion about the product (publicity).

Sponsorships in Local Events

Since we are planning to intensify Virgin Cola’s appeal to the

market, particularly in the provinces, which are not yet media corrupted,

we are planning to conduct activities sponsored by Virgin Cola. Such

would be MusicFest, Pa-Binggongbayan, Sportsfest, hosting Barrio

fiestas, etc.

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Product Endorser

In relation to the previous entry, we have decided to get an

endorser and spokesperson for the product. She should be someone who

would serve as an epitome of the character that the Virgin Cola wants to

show the people ─ Coleen Garcia. Just like Virgin Cola, she is wholesome

enough to make the youth look up to her.

Catchy Billboards and Posters

Creative and interesting billboards and posters will be put in key

locations such as main roads to arouse awareness to the general public.

Other Billboard Designs

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Suggested Tags

Satisfaction within Virgin No one else comes close. Virgin Be Pure, Be Virgin Classic Taste of Refreshment Like a Virgin Feel the Drift till the Last Sip Drink it. Live it.

Television and Commercials

Lively and effective TVCs will be aired in the major TV stations ─

ABS-CBN, GMA 7, QTV 11, TV5 and Studio 23 particularly during

noontime, when everyone would be craving for a refreshing drink to

quench their thirst caused by the summer heat.

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Sample 1

A student was having a

hard time studying his history

book. He rests for a while and

drank his virgin cola. He smiles

while drinking and his sweat

disappears (the camera will turnout black and white, light waves cover the

screen). After drinking his virgin cola, he opens his eyes and sees

katipuneros running towards him. He panic and tries to stop them from

attacking him by offering his Virgin Cola. The leader of the group tastes it

and gave some to his subordinates. At first, the student thought he had

established peace but instead, the katipuneros wanted more and ran after

him.

Sample 2

A man hurriedly picks up his

Virgin Cola and step up at the train

before it closes. When he entered

the train all passenger stared at him

and he realized he entered at the

girl’s section of the train. Because he

doesn’t know what to do, he drank his Virgin Cola and made a sound of

“Brrrrr”. Everyone in the train laughed at him. When the passengers get down

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the train they also buy their own Virgin Cola and simultaneously made the

sound of “Brrrr”.

Sample 3

All boys fell in love with a

beautiful lady who will be played by

Coleen Garcia. They do everything to

make her fall in love with them. Some

gave her chocolates, flowers and

teddy bears but no one can capture her attention. Then came a guy with a Virgin

Cola in his hand. He offered it to Coleen and when she tasted it she suddenly

liked the taste and fell in love with the guy.

Magazines and Newspaper Advertisements

There would also print ads in glossy magazines, particularly in magazines like

Candy, Seventeen and the likes since their readers are mostly the youth, which

is Virgin Cola’s target market too.

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Likewise, print ads in newspapers would be available, particularly in

broadsheets such as Philippine Star and Philippine Daily Inquirer and in decent

tabloids such as People’s Journal and Pilipino Star Ngayon, so that more people

would be aware of the product’s existence.

Cebu Pacific

We opt to use Virgin Cola and Asian Brewery Beverages to be the only

available drinks in Cebu Pacific.

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Internet Advertisements

Internet Advertisements (Facebook, Yahoo, Google, Twitter and

Entertainment websites) are cost-efficient and very effective when it comes to

reaching the target market.

Vehicle Advertisements

Vehicle Advertisements include Virgin Cola’s Advertisements on LRTs, MRTs, jeepneys, tricycles, taxies, buses, pedicabs, and private-owned cars.

46

Radio Advertisements

Radio Advertisements will be made available in radio stations such as Love Radio, WRR, Star FM, LSFM, and Energy FM.

University Caravans

Virgin Cola caravans in different universities could also help in the

promotion of the product by simply sponsoring leadership or

entrepreneurial seminars to the students. Afterwards, notebooks, ball

pens, fans, pins with “ I Heart Virgin Cola” written on them and other stuffs

47

with Virgin Cola logos could be given away for these help the market

remember the product.

Bottle Cap Freebies

An effective promotional gimmick would be “tansan contest”.

Written under selected tansans would be: “free movie entrance”,

“free discount coupons on selected restaurants”, “free discount on

selected salons”, “free tickets to big concerts to be sponsored

Virgin Cola”, “free items with Virgin Cola logos (thermos, bags,

shades, coin purse, shirts etc.)” and the like.

Consumers can redeem the prizes in selected retail outlets.

F. MARKETING RESEARCH

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Market Segmentation

Geographic

Segmentation Variables DataWorld Region Asia

Country PhilippinesCities All major cities of Philippines

Density RuralClimate Wet and Dry

Demographic

Segmentation Variables DataAge 15-35+

Gender Male, FemaleFamily Size 5

Family life cycle Married, SingleIncome Class B and C

Income Php. 2,045,000Education Elementary to College

Race AsianNationality Filipino

Psychographic

Segmentation Variables DataSocial Class Classes A to D

Lifestyle

Behavioral

Segmentation Variables DataOccasions AnytimeBenefits Thirst quencher

User Status First time usersLoyalty Status Brand loyal to market leader

Readiness Stage Unaware

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Target Market

The target market of Virgin Cola in the Philippines are Filipinos

between 15-35 years of age belonging to classes B and C.

Based on the marketing demographics presented in the beginning

of the presentation, the target market is 15,210,295 Filipinos

Computation for the Target Market

Population= 101,833,938(2012) and 94,013,200(2010)

Ages 15-35= 33354300 (2010)

Ratio and Proportion will be used to get the estimated ages 15-

35 for the year 2012

population 2010 = ages15-35 2010

population 2012 ages15-35 2012

94,013,200 = 33354300 (2010)

101,833,938 ages 15-35 2012

Ages 15-35 2012 = 101833938 x 33354300 ÷ 94013200

= 36, 128, 966

According to Bureau of Internal Revenue, 42.1% of Filipinos

belongs to classes B and C

Computation

36, 128, 966x 0.421 = 15,210,295

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G. MARKETING ORGANIZATION

Marketing Organization- Interbev according to its function

Carlos BritoCEO

Franciso SáZone PresidentLatin America

South Jo Van Biesbroeck

Zone President Western Europe &

Chief Strategy OfficerMichael

DoukerisZone

President Asia Pacific

Joäo Castro NevesZone

President Latin America

NorthStuart

MacFarlane

Zone President Central & Eastern Europe

Sabine ChalmersChief Legal &

Corporate Affairs Officer

Claudio Garcia

Chief People & Technology

Officer

Bernardo Pinto Paiva

Chief Sales OfficerMiguel Patricio

Chief Marketi

ng Officer

Felipe DutraChief Financial

Officer

Tony MilikinChief

Procurement Officer

Claudio Braz Ferro

Chief Supply Officer

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VI.Actions

and Programs

52

Collaborations with NGO’s

We would like to retain the wholesomeness and live out the product’s

name since the youth is our target market. That’s why we are thinking of

collaborating with NGO’s like Gabriella to have awareness seminars regarding

social justice or of the rights of women especially during March —which is

Women’s Youth month. Our very own endorser Ms. Coleen Garcia could serve

as our collaborator and representative for this project. 4B can be placed for this

project.

Virgin Forest Preservation

We are also thinking of teaming up with groups that aim to save our

country’s virgin forests. Since we would like to live out the product’s name, we

are planning to help these groups preserve our forest by giving donations. Virgin

cola would promote the protection and rehabilitation of these forests for longer

lifespan and future proper utility. This would be the company’s charity work. This,

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at the same time, would lower taxes of the company. We should allot at least

3Mfor this project.

Campaign with Religious Sects

As our brand name is close enough to sacredness; we decided to adjoin

with religious sects. Filipino society places much importance on family and

religion. It is a communal society. A budget of 3M should be appropriated for this.

Musicfest

A musicfest is expected to uphold during summer wherein Virgin Cola is

the main sponsor. The event can be open to all persons but may require

purchasing virgin cola products which will serve as the entrance fee. Contests

and food galore can also be injected to this event. Not only popular bands must

54

there but also influential celebrities to attract people. This can be held in Boracay.

A budget of 4M is appropriated for this.

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VII.

Budget

56

SALES FORECAST

Projected Sales for a Year

Assuming that all target market will buy 12 ounce Virgin Cola for P8.00

thrice a week for a year:

Target Market: 15,210,295

Frequency per week: 3

Number of weeks in a year: 48 weeks

Price: P8.00

Projected Sales: 15,210,295 x 3 x 48 x 8 = P 17,522,259,840.00

Projected Sales in 5 years

P 17,522,259,840.00x 5 = P 87,611,299,200.00

ADVERTISING FORECAST

In each advertisement there will be an increase of 2% in the year 2014-2015, 5% for 2015-2016, 7% for 2016-2017 and 10% for 2017-2018

Computations:

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018Magazine 7978176 8137740 8544627 9142751 10057026

Newspaper 18185148 18548851 19476294 20839635 22923599Posters 4800000 4896000 5140800 5500656 6050722Internet 14400000 14688000 15422400 16501968 18152165Radio 36000000 36720000 38556000 41254920 45380412

Television 72000000 73440000 77112000 82509840 90760824Artwork and Production

50000000 51000000 53550000 57298500 63028350

Billboard 14400000 14688000 15422400 16501968 18152165Transport 2400000 2448000 2570400 2750328 3025361

Total Cost for Advertisemen

t

220,163,324

224,566,591

235,794,921

252,300,566

277,530,624

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The cost in 2012 is based on the contract that the companies offer

Magazine is based on the 5 leading magazine in the

Philippines (Cosmopolitan, Yes!, Candy, Metro, and Men’s

Health)

Newspaper is based on the 3 companies in the Philippines

(Philippine Daily Inquirer, Philippine Star and Manila Bulletin)

Poster will offer 30 sheets every week

Internet is based on the 3 websites (Google, Yahoo and

Facebook)

Radio is based on the 5 leading stations in the Philippines

(97.1 Barangay LS, NU 107, 101.9 for Life, 90.7 Love Radio,

and 101.1 Yes FM)

Television is based on ABS-CBN, GMA, Studio23, QTV and

TV5

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EXPENSE FORECAST

Promotions and Scholarship will increase 2% every year.

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018Promotions 310,000,000 316,200,000 322,524,000 328,974,480 335,553,970

Cash Rewards

Automobile RewardsGadgets Rewards

Free TasteMall Tours

250,000,000 255,000,000 260,100,000 265,302,000 270,608,040

Sponsorship

University Events

ConcertsMusicfestSportsfest

60,000,000 61,200,000 62,424,000 63,672,480 64,945,930

Expenses for packaging, labels and endorser:

There will be an increase of 2% in packaging and labels but there will only

be 1% increase for the endorsers.

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Packaging 300,000,000 306,000,000 312,120,000 318,362,400 324,729,648

Labels 300,000,000 306,000,000 312,120,000 318,362,400 324,729,648

Endorsers 9,000,000 9,090,000 9,180,900 9,272,709 9,365,436

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Collaboration with NGO’s

4,000,000,000 will be given to NGO’s every year

Total Expenditures

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Total

5,139,163,324

5,161,856,591

5,191,739,821

5,227,272,555

5,271,909,326

Total Expenses in 5 years: P25,991,941,617

PROFIT FORECAST

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Sales 17,522,259,840 17,522,259,840 17,522,259,840 17,522,259,840 17,522,259,840

Expenditures

5,139,163,324

5,161,856,591

5,191,739,821

5,227,272,555

5,271,909,326

Profit 12,383,096,516 12,360,403,249 12,330,520,019 12,294,987,285 12,250,350,514

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VIII.

CONTROLS

61

The local cola market has been growing steadily over the last few years

due to increases in people's disposable income and opening of the economy.

With this in mind we intend, with our marketing programs, to expand accordingly.

The introduction of quality beverages will enable Asia Brewery to market to

potential customers. We project sales to increase accordingly, though slightly

slower as we establish a reputation for ourselves. With time, a presence on the

Internet and participation in regional trade shows will be key milestones to

expanding sales and marketing potentials through the utilization of new channels

and identification of potential. Throughout the year we intend to undertake

regular evaluations of our marketing programs so as to ensure that we are in-line

with our intended objectives. In summary we intend to undertake the following:

1. Tracking and follow-up: We intend to have the discipline, as an

organization, to track results of the business plan and make sure that we

implement.

2. Market segment focus: We intend to have the discipline to maintain the

market segment focus.

3. Saying no: Though difficult initially, we intend to be able to say no to

special deals that take us away from the target focus and are unprofitable.

4. Penetrate local and international market

5. Promote the Virgin Cola and line this as one of the most dominant colas

all over the country.

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IX.

References

63

References:

History

http://www.asiafinest.com/forum/index.php?showtopic=24286

Demographics

http://www.nscb.gov.ph

http://www.indexmundi.com/philippines/demographics_profile.html

http://www.indexmundi.com/philippines/population_growth_rate.html

Beverage market

http://www.nscb.gov.ph/sna/2012/3rd2012_RevJan2013/2012hfce3_rev.asp

Factors that affect marketing environment

Principles of Marketing, 14th edition by Philip Kotler and Gary Armstrong

Product Review

http://en.wikipedia.org/wiki/Virgin_Cola

Soft drink in the Philippines

http://en.wikipedia.org/wiki/List_of_soft_drinks_by_country#Philippines

Virgin group brand values

http://www.marketingminds.com.au/branding/virgin.html

Virgin group logo and Brand Name

http://en.wikipedia.org/wiki/Virgin_Group

Virgin Cola Taste

http://www.ciao.co.uk/Reviews/Virgin_Cola__5344016