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Transcript of marketting
GROUP 10
Audrey Jolin-LessardAïsha BrillantCindy ChengGeneviève LeblancNicolas MurciaVicki TianJean-Louis Nguyen
Audrey Jolin-Lessard
Cindy Cheng
Nicolas Murcia
Jean-Louis Nguyen
Our Presentation STRUCTURE
Marketing Objectives
Company Profile
What is Bubble Buzz?
Overview of the industry
Competition, Target Market & Customer Analysis
Marketing Mix (4Ps)
Financial Projections, Implementation Plan
Export Potential
Introductory VIDEO
What are our intentions?
Launch and market a completely unseen-before beverage product, in order to achieve the following:
Create strong consumer awareness for Bubble Buzz through the 4 P’s
Become the market leader in the
functional drinks segment through sizeable market
shares
Re-affirm the company’s title of market leader in
product innovation and successful product
launches.
3 MARKETING OBJECTIVES
Company Profile – In case you don’t know, who are we?
Cindy’s part on Company profile + quick product description (1min)
Industry Analysis – Where does the product stand?
FOOD & BEVERAGE
SOFT DRINKS
Carbonates
Fruit/Vegetable Juice
Bottled Water
Functional Drinks
Concentrates
RTD Tea
RTD Coffee
Industry Analysis – The Functional Drinks Market
Segments of the functional drinks marketEnergy drinksNutraceutical drinksSports drinksSmoothies (Milk & Juice Drinks)RTD Bubble Tea
Industry Analysis – Soft drink sales breakdown
Off-Trade Sales of Soft Drinks by Sector: Value 1999-2004
C$ million 1999 2000 2001 2002 2003 2004
Carbonates 4,651.40 4,726.30 4,828.20 4,991.10 4,959.60 4,938.90
Fruit/vegetable juice 2,135.20 2,239.60 2,347.00 2,454.60 2,497.60 2,613.10
Bottled water 385.9 447.3 551.2 666.8 763 859.4
Functional drinks 296.7 312.1 318.1 324.7 327.4 342.2
Concentrates 193 186.5 171.3 166.5 159.2 161.9
RTD tea 234 257.4 265 275.4 286.8 307.4
RTD coffee 0.2 0.4 0.6 0.8 0.9 1.1
TOTAL 7,896.40 8,169.60 8,481.30 8,879.90 8,994.50 9,224.10
Industry Analysis - Trends
Only 3.7% of the total soft drink sales. However…
Sales: $342.2 millions in sales in Canada in 2004
Current growth: 13.5% sales increase since 1999
Future growth: 7.3% sales & 11.0% volume increase by 2009.
Consumption: 3.94 Liters per capita, a 4% increase since 1999
Growth and profitability potential due to consumer trends.consumer trends.
Industry Analysis – Consumer Trends
Portfolio diversification through alliances, acquisitions, R&D
Trend towards healthier alternatives in the functional segment
Concerns about negative health impacts of carbonated drinks
Quick maturation in the core segments
Trend towards new flavours and trendier products
Industry Analysis - Strengths, Weaknesses, Opportunities, Threats
Strengths:Strengths:
Brand name
Effective presence in new markets
Results of operations
Strong existing distribution channels
Weaknesses:Weaknesses:
Relying upon brand extensions
Relying upon particular carbonated drinks
Brand dilution
Difficulties when entering non-core categories
Saturation of carbonated soft drinks segment
Industry Analysis - Strengths, Weaknesses, Opportunities, Threats
OpportunitiesOpportunities
New product introductions
Brand is attractive to global partners
Threats:Threats:
Strong competition
Potential health issues
Free trade
Competition, Target Market, Customer Analysis
Cindy’s part on Competition, Target Market, Customer Analysis (3 min)
Bubble Buzz Price: $2Bubble Buzz Price: $2
Consumer demandConsumer demand
The product lifecycleThe product lifecycle
Potential substitutesPotential substitutes
Price strategy should consider the following 3 aspects :
Marketing Mix – Price Strategy
Marketing Mix – Price Strategy
Consumer demand:Consumer demand:
driven by tastes and income;
availability of others similar products;
“The higher the price, the higher the value.”
customer unwilling to pay premium price
Marketing Mix – Price Strategy
The product lifecycle:The product lifecycle:
the newer the product the higher the price;
high profit margin;
recover development costs quickly;
gives a certain prestige to the product
Marketing Mix – Price Strategy
Potential substitutes: Potential substitutes:
competitors attracted by high profit margin; only two “serious” competitors;
unique for now;
easy to imitate;
Marketing Mix – Product Strategy
Marketing Mix – Product Strategy
Brand personality:Brand personality: energy, funky, cool, functional, original, funny, healthy, etc.
Product modification: Product modification: introducing an existing beverage but with a more convenient package
Benefits of Green Tea: Benefits of Green Tea: cancer, rheumatoid arthritis, cholesterol, cardiovascular disease, infections, quit smoking, weight loss, etc.
Marketing Mix – Product Strategy
Prone to product imitation:Prone to product imitation: solution: broaden distribution quickly
Low-learning product: Low-learning product: consumers can eat while drinking
Avoid product resistance: Avoid product resistance: use more personal selling when dealing with retailers, give more samples to customers, use contests, website, etc.
Marketing Mix – Promotion Strategy
Objectives:
To initiate strong awareness about Bubble Buzz throughout Generation Y consumers as well as their parents.
To win market shares over our top functional drinks competitor, PepsiCo.
Marketing Mix – Promotion Strategy
The message:
Bubble Buzz is a healthy drink for sporty and young people who simply enjoy taking care of their body and life. It is a drink for the out-of-the-ordinary individuals who like to challenge themselves
Be Bold, Be Original, Be Different, Be Yourself
Marketing Mix – Promotion Strategy
Target Market:Target Market: Generation Y only give partial attention to media and typically use more than one media at a time. Solution:Solution: Use a great variety of targeted promotional tools.
Media selection: Media selection:
TelevisionRadio Magazines Internet Outdoors Personal Selling Public relations Publicity
Marketing Mix – Promotion Strategy
Television:Television:
communicates with sight, sound and motion,
only media that can reach 99% of the homes in Canada,
we have the budget to cover the high costs,
select channels for teenagers and young adults
Marketing Mix – Promotion Strategy
Radio: Radio:
already segmented medium,
over 900 radio stations in Canada,
average student is a surprisingly heavy radio listener
Marketing Mix – Promotion Strategy
Magazines: Magazines:
magazines have become a very specialized medium,
about 500 consumer magazines in Canada,
good color production create strong images,
each magazine’s readers often represent a unique profile.
Marketing Mix – Promotion Strategy
Internet:Internet: official promotional website: www.BubbleBuzz.ca, visual audio and video message,banners on selected websites, Outdoors:Outdoors: low cost and
flexible alternative, campuses, bus, metro, tourist areas, malls, etc.
Marketing Mix – Promotion Strategy
Promotional Mix: Consumer orientationContests:Contests: “Win another Bubble Buzz flavour”, secret code underneath the bottle cap log on the website to win, increase consumer purchases / involvement
Samples:Samples: to avoid product resistance, low risk for consumers since they get it for free.
Point-of-purchase:Point-of-purchase: in supermarkets to reach the parents of generation Y
Product PlacementProduct Placement :: in TV shows in subsequent years,
Marketing Mix – Promotion Strategy
Allowances and discounts:Allowances and discounts: case allowance, encourage retailers to buy more of the product to get a certain amount for free
Cooperative advertising:Cooperative advertising: encourage retailers to buy our product and to maintain high level of advertisement
Advertising:Advertising: pulse scheduling, emphasized before and during summer
Promotional Mix: Trade orientation
Marketing Mix – Promotion Strategy
Intermediary:Intermediary: Push strategy, in order to gain retailer’s cooperation in ordering and stocking the product, personal selling.
Ultimate consumer:Ultimate consumer: Pull strategy: to direct our promotional mix at ultimate consumers in order to encourage them to ask retailers for Bubble Buzz, mass media.
Marketing Mix – Place Strategy
supermarkets convenience stores independent food stores discount stores multiple grocers vending machines direct sales
Financial Projections Projected Financial Performance
Revenues $597,124.00 Based on sales @ different channel’s price
COGS $214,964.64 Based on weighted average percentage in past data
C.M. $382,159.36 Revenues - COGS
Fixed Costs :
SG&A cost : $113,453.56 Half of the O/H costs estimated, based on past data
Capital expenditures :
$25,676.33 4.3% of revenue, based on past data
Profits $243,029.47 CM – SG&A – Capital expenditures
Pre-launch preparation:
Focus on organising resources to implement the Bubble Buzz.
Go / No-Go stage: should we continue product implementation ?
Launch:
April 1st Bubble Buzz is freshly on the shelves (no joke) !
Advertising campaign through promotion schedule.
Post-launch (monitor and control):
Assess feedback from sales revenue, and customers.
Maintain positive dynamic by training managers & staff, and by upgrading the web site.
Implementation Plan
“Step by Step”: Advertising campaign:
Create awareness of the brand
Reach target market (18 – 29)
Develop mass consumption
Enhance distribution
Charismatic and ethical sponsorship
Suggest excitement about the brand
Maintain communication with media
Promotion Schedule
Step Output Period of time
1 Personal selling February to September
2 Radio spots February to April
3 Magazines ads Mid-March to June
4 Television spots April to September
5 Sample distribution April to September
6 Point of purchase April and September
7 Outdoors May to September
8 Public Relations May to September
9 Contest August to end of September
10 Publicity All the time
Export Potential
Cindy’s part on Export potential (1min30)
Conclusion
Jean-Louis’ conclusion and call for questions