International Marketing Plan

International Marketing Plan

Submitted to: Dr. Robert Jack Prepared by: Mohammad Parvez Naim & Gagandeep S Kaintal. Date of submission: 31st Oct 2008

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Executive Summary

The Plan is to launch Maaza in to the Australia market by exporting the product from India to Australia in contract with Coca Cola Amatil Ltd. The soft drink market in Australia is growing at a very good rate and more so of fruit drinks as more and more people are getting health conscious also the growing Asian immigrants is the reason for launching Maaza in to the Australian Market. We will take help of Coca Cola Amatil, as Coca Cola Amatil is an old player in the Australian beverages market and also licensed bottlers of Coca Cola Company Ltd. The product would come with same taste and contents while the packing would be done following the Australian norms and standards. The Quality of the product will remain same because it already complying with Australia Norms of Fruit drinks. The Price of the product will be competitive as per the market. The Packaging of the product will be according to the Australian standards and patterns. We will promote our product through almost all kind of Advertising and promotional programme like TV ad, Radio, internet, Hoardings, Billboards, celebrities endorsements etc Budgets are allocated separately for different activities with a total budget of A$ 1690,000. We will also monitor the performance of our product on both financial and non financial parameters on a regular basis. The bottom line contribution of Maaza in Australia would be significant over a period of time and would play a critical role in capturing good market share in soft drink segment for us.

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Table of Content 1 ORGANISATIONAL PROFILE……………………………………………….4 2 SITUATION ANALSIS……………………………………………………….…5 2.1 Business Environment…………………………………………………...5 2.2 Overseas Market and Industry anlysis…………………………………...5 2.3 Organisational resources and capabilities ……………………………….6 3 MARKETING STATEGY……………………………………………………….7 3.1 Market entry Strategy……………………………………………………..7 3.2 Segmentation, Targeting and Positioning…………………………………7 3.3 Critical success Factor……………………………………………………..8 4 MARKETING OBJECTIVES…………………………………………………...10

5 MARKETING MIX STRATEGY……………………………………………….11

6 BUDGET…………………………………………………………………………..17

7 IMPLEMENTATION…………………………………………………………….18

8 EVALUATION AND CONTROL……………………………………………….20

9 LIST OF REFRENCES…………………………………………………………..21

10 APPENDICES ………………………………………………………………..…21

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1 ORGANISATIONAL PROFILE Coca-Cola is the giant of the beverage industry worldwide. The Coca Cola Company was started in 1886 and since then has been world’s largest soft drink concentrates company. Coca-cola is market leader in beverages market since its launch. Today coca cola is active in over 200 countries including India and Australia. The Coca-Cola Company engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates and syrups worldwide. The Coca-Cola Company produces concentrate syrup which is then sold to various bottlers throughout the world who hold a Coca-Cola franchise or Coca-Cola bottlers, who hold territorially exclusive contracts with the company. Coca Cola has a subsidiary in India as Coca Cola India Ltd and has an iconic status in the minds of the consumers in India just like it has in other parts of the world. Coca-Cola serves in India some of the most recalled brands across the world including names such as Coca-Cola, Diet Coke, Sprite, Fanta, Thumps Up, Limca, Maaza and Kinley (packaged drinking water). In Australia, Coca-Cola Amatil (CCL) is a participant in the beverage industry and is the principal Coca-Cola licensee in Australia, Oceania, and Indonesia. The company is responsible for the manufacturing, marketing and distribution of Coca-Cola and related brands throughout these regions. Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh We Plans to launch Maaza into the Australian market. Maaza was launched in 1970 in India by Parle- Bisleri and in 1993 it was acquired by coca cola India. In the early eighties Maaza’s success story spread across the borders. Today Maaza can truly be called a world brand and has seen success in Belgium, France, Netherlands, Pakistan, United States, United Kingdom and Bangladesh (Maaza website) http://www.investsmart.com.au/shares/asx/Coca-Cola-Amatil-CCL.asp http://www.coca-colaindia.com/mazza/default.asp

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2 SITUATION ANALYSIS 2.1 Business Environment, 2.2 Overseas Market and Industry analysis The soft drink market has been growing steadily over the years and is expected to grow at a good rate in coming future as well. According to the DATAMONITOR report which was published on Sep 2006, the market share owned by the fruit drinks/juices was 19% of the total beverage market which is currently at 22%. The Australian market has already started changing as consumers are shifting toward healthier drinks. According to Euromonitor the market share of three major products; carbonates, vegetable juices/ fruit juice and concentrate will decline in future and come under 75% volume share. [ref: http://www.euromonitor.com/Soft_drinks_in_Australia] The total fruit juices and health drinks market has grown strongly over the past 5 years, in terms of both value and volume. In 2006, the total market was worth an estimated £2.77bn at retail selling prices (rsp), having grown by 30.7% since 2002. In 2006, fruit juices, health drinks and fruit drinks accounted for 40.6% of the total soft drinks market in terms of volume sales. Fruit juices and health drinks have benefited from their healthy image, particularly in comparison with other, less healthy, drinks, such as carbonates. The Fruit juice sector has gained market share over the past 5 years, as consumers switch away from alternative soft drinks towards the healthier products. The fruit drinks market of Australia is continuously growing so, the prospects of market is very good. The changing trends of people towards healthier drinks will help us to gain the market share.

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[ ref:http://www.datamonitor.com/industries/research/?pid=DBCM2096 and. http://www.researchandmarkets.com/index.asp]

2.3 Organisational Resources and Capabilities SWOT Analysis for Coca-Cola

The strengths and weaknesses will be internal to Coca-cola and the opportunities and threats will be external to Coca-Cola. The strengths, weaknesses, opportunities and threats of Coca-Cola Company are as follows; Strengths

• Most recognized brand name in the world • various types of packaging • Consumer loyalty • Largest market share in the soft drinks market Weaknesses • High sugar and caffeine content • Declining trend in profits • Some large retailers have exclusive contracts with Pepsi and don't stock Coke i.e. KFC Opportunities • Expansion into third world countries where there is no current presence • Healthy energy drinks i.e. to compete with Lucozade Threats • Middle east boycotting US brands • Western attitude against capitalism • New cheaper brands of cola i.e. Virgin Cola [Ref: http://www.fratfiles.com/essays and http://www.coca-colaindia.com/media] 6

3 MARKETING STRATEGY

3.1 Market Entry strategy

We will launch Maaza in to the Australian market by exporting the finish products from India. The Coca Cola Amatil Pvt. Ltd. will be responsible for the promotion and distribution of the Brand Maaza. We would use Coca Cola amatil warehouse to store our product. Coca Cola Amatil has mother warehouse in Sydney and other in Melbourne, Brisbane, Geelong etc. We will have an initial contract of 3 years for promotion and distribution with the Coca cola Amatil Pvt Ltd who owns 7 bottling plants in Australia and has a strong distribution and retail network throughout Australia. So, we can use their experts and skills in order to penetrate in to the market. Under the Contract Coca Cola Amatil will be paid by fixed fee for three years and a 4% share in profit if any

3.2 Market Segmentation, Targeting and Positioning

SEGMENTATION We have segmented our market in to two major segmentations. They are Geographically and Psychographic

Geographically: We have segmented Australian market in to three major states which are New South Wales, Victoria and Queensland. The Brand Maaza is not limited to any age group, profession, religion etc. Firstly, we will launch Maaza in to these three major cities and if the consumer response will be good then we will expand our market to the whole Australia.

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Psychographic: Maaza will cater the whole population of Australian market belongs to any age, profession, life style and attitude.

TARGET MARKET  Target three major cities. They are Sydney, Melbourne, and Brisbane.  Target schools and Universities students  Maaza will be targeted at fruit drink consumers as a new fruit drink which is not available in the market  Target health conscious consumers who prefer to have healthier products like fruit juices, fruit drinks, energy drink, etc.

POSITIONING  Maaza will be made of Indian Mangoes which are very famous in the world.  Coca Cola as a Parental company will have some Psychological effect on consumer which force consumers to taste Maaza at least one.  Maaza has planned to position itself as a healthy drink which could be used as a median drink between carbonated drinks and fruit juices.  Maaza will use Coca Cola brand’s goodwill to position itself.

3.3 CRITICAL SUCCESS FACTOR

Brand Name:

Today Coca Cola is a very huge brand in non alcoholic

beverages, operating in more than 200 countries and owes more than 400 brands. Although, Coca Cola is active in the world market for more than 100

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years and it has expertise in marketing, distribution and promotion. So, it is an added advantage with brand Maaza.

Cost Factors: We will keep our product’s cost competitive as compared to others Fruit juices brand. So that fruit juice consumers prefers to try our brand due to its low cost.

Changing Trends: Nowadays, more and more consumers are getting health conscious which is by the fact that the fruit juices and drinks market of Australia is continuously increasing. According to DATA monitor report, the market share own by fruit juices and drinks were 19% in 2006 which is currently at 23%. So, our product would be having an advantage of being a non carbonated fruit drink.

Increasing consumption: According to the recent statistics, Australia is the largest consumer of fruit juices as Australia's per capita consumption of juices and nectars is growing steadily with no end in sight. Currently Australia drinks 35 litres every year placing it ahead of both the USA and UK.

Increasing immigration: Australia is experiencing a large number of Asian immigrants which are familiar with the Brand Maaza, which would provide us a variety of potential consumers. As Maaza is already a well established brand in many Asians countries.

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No Direct Competition: Currently Maaza not having any kind of direct competition in the Australian market. However it has some kind of indirect competition with the fruit juice manufacture like golden circle. As Maaza do not have any direct competition in the market it will help Maaza in penetrating the market.

4 Marketing Objectives: Our main objectives with respect to launch of Maaza in Australia are as follows:



To penetrate the market and achieve a market share of 5% by the end of 2nd year and of 7% by end of 3rd year.

 Achieve profit by 3rd year and breakeven by end of 2 nd year of the launch of Maaza.  We like to launch Maaza into the Australian market by associating it with some Celebrity. May be sports person or Film personality  If the Response of the consumer will be good then we will expand our market to the whole Australia.  Once we cross breakeven and run into profits, we will share part of our profits with a cause associated with saving environment

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5 MARKETING MIX STRATEGIES Product, Price, Place and Promotion Product As far as the product is concern few things of the product will be standardized and other would be adapted according to the Australian standards.  Company will not change the core value of the product like Quality and Taste of Maaza.  Company plans to launch the product in three different size i.e 250 ml, 500 ml and 1 litre.  Product will come in two different packaging, which will be in Tetra packs and Plastic bottle in all three sizes. Steel cans will be introduced after 6 months in order to maintain the curiosity of the consumers.  Product packaging will be according to the Australian consumers who prefer to hang with the drinks. So, our product packaging will be small, easy to carry and good looking.  Augmentation will be provided to customers by customer care, services, returns and reusability of bottles for other tacks.

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Pricing Existing market of soft drinks is very competitive and also there is small percentage of Fruit drinks consumers. So, in order to increase the percentage of fruit drink consumer and to penetrate in to the market, company planned to come up with low cost leadership strategy which often proof effective in gaining market share in short period of time. The Low cost leadership strategy will force consumers to taste/try our product without any second thought. Pricing of our product will be as follows:

PLASTIC BOTTLE

Size 250ml 500ml 1 litre

Price $ 2.25 $ 3.45 $ 6.10

TETRA PACK

Size 250ml 500ml 1 litre

Price $ 2.35 $ 3.55 $ 6.20

Distribution

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The product will be manufacture in India and will be exported to Australia. The finish product will be sent to mother warehouse of Coca Cola Amatil for storage purpose which is in Sydney and from mother warehouse finish product would be further forwarded through Carriage and Forwarding Agent.

PRODUCTION IN INDIA

Mother Warehouse in NSW

CFA NSW

Coles, Safeway, etc.

CFA VIC

Distributors

CFA QUNSLND

Hotels

Whole seller/Retailer

Consumer s

Promotion

Consumer s

Distribution in All 3 States

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Consumer s

 Marketing plan starts with the free sampling in every CBD area of city, trail by an icebreaker, children competition, fun games for elders and other stuff. The main purpose is to conduct an activity for whole family.  ADVERTISING: For Advertising company is planning to use television, billboards, internet, radio, posters. 1. Company will associate Michael Clark with the product Maaza by taking Michael Clark in Ad films, posters etc. 2. Michael Clark posters will be used on Billboards, magazines and Newspaper ads. 3. Company will use electronic billboards (JCDecaux) at major train stations and areas.

Electronic Billboard Ad.

Hoarding

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Celebrities Endorsements

Road side Posters

Newspaper Advertisement

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 Personal selling: professional sales team will contact 5 star hotels, fast food shops, restaurants and other multinational franchises e.g. Mac Donald’s, Nando’s, KFC etc

 Direct marketing: Company will use direct marketing like mails, e mails, internet ads, and telemarketing at initial stage to aware consumers about the product.

 Points of Purchase: Sales and marketing team will take care of shelves of shops to make sure that product should be in front position. Moreover, Company will make sure the availability of the product in the vending machine at major stations, school canteen, universities.

 The company will launch a Maaza’s official website especially for the Australian region.

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5 BUDGET Separate budgets are allocated for completion of formalities of contract, setting up of warehouse, distribution costs, internet related costs, advertising costs that will include promotion in Cinemas, T.V, Radio, Newspapers, Magazines, Hoardings. Budget is also allocated for other sales promotion activities like personal selling, free samples at public gatherings, promotion in malls, etc. Transportation and product launch will also be given separate budgets.

Given below are the allocated budgets for each item along with date of completion.

Item

Date Completion

Cost(AUD)

Contract agreement formalities

10th Nov, 2008

$ 450,000

Setting up of Warehouses

25th Nov, 2008

$ 200,000

Distribution cost

29th Nov, 2008

$ 20,000

Website builiding

05 Dec, 2008

$ 70,000

Paid search engine advertisement to 05,Dec, 2008

$ 50,000

increase exposure Advertising Cost (includes Magazines, 10 Dec, 2008

$ 310,000

Newspapers etc.) Other Sales promotion activities

10 Dec, 2008

$ 90,000

Transportation Cost

20 Dec, 2008

$ 100,000

Product Launch

25th Dec, 2008

$ 400,000

TOTAL

$ 16,90,000

6 IMPLEMENTATION 17

The Implementation of the Marketing plan will take as follows:  The Contract and all other formalities like distribution, storage, promotion etc will be negotiated with Coca Cola Amatil Pvt Ltd Australia and this contract should be finalised by 10 nov 2008. This would be done by Board of directors and marketing manager of both companies.  With the help of Coca Cola Amatil, a Mother warehouse would be set up in Sydney. We will be using Coca Cola Amatil’s warehouse managers’ expertise in setting up our mother warehouse and other warehouses in other parts of Australia. This should be done by 15th nov2008. We will be giving a buffer time of 5 days and expect all warehouses to be set up by 25th Nov 2008  The Proper distribution network will be established by 1st Dec 2008. For this we will use Coca Cola Amatil expertise.  Marketing managers of Coca Cola India in assistance with marketing manager of Coca Cola Amatil will decide on using different advertising sources. This is supposed to be completed by 10th Dec 2008.  After finalizing the advertisement and sales promotion, the Coca Cola India will start the production of the Syrup in Mumbai based 18

manufacturing plant. The syrup then will be exported to the Sydney based mother warehouse. First set of export is expected to reach Sydney by 20th Dec 2008.  We are expecting that our Advertising and sales promotion programme would create a good brand awareness by 24 th Dec 2008 and we will launch our product on 25th Dec 2008. The company will launch the product on the day of Christmas this would provides a good opportunity for our product to get familiar with the Australian people and culture.

SCHEDULED ACTION PLAN Contract agreement and other formalities 10th Nov 2008 Setting up Mother and other warehouses in Australia 25th Nov 2008 Distribution set up (appointing distributors and tie-up st 1 Dec 2008 with wholesalers) Advertisement campaign and sales promotion activity 10th Dec 2008 Production and exporting to the mother warehouse 20th Dec 2008 Sending of products from mother warehouses to 23rd Dec 2008 25th Dec 2008

other warehouses Product launch in the market place

7 EVALUATION AND CONTROL We will evaluate our performance on two parameters; Financial and non financial parameters.

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The financial parameter like sales figure, market coverage, market share, cash flow, and profit and loss will be assessing on monthly basis. The non-financial performance of the product would be measured on qualitative

parameters

such

as

quality,

customer

satisfaction,

and

effectiveness of marketing activities. The qualitative parameters would be measured on a quarterly basis by engaging an external agency such as a market research company. There will be a visit of Coca Cola India experts once in a two month to assess the performance of the product.

8 REFRENCES

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1http://www.investsmart.com.au/shares/asx/Coca-Cola-AmatilCCL.asp 2 http://www.coca-colaindia.com/mazza/default.asp 3http://www.datamonitor.com/industries/research/?pid=DBCM2096. 4 http://www.researchandmarkets.com/index.asp. 5 http://www.euromonitor.com/Soft_drinks_in_Australia 6 http://www.fratfiles.com/essays 7 http://www.coca-colaindia.com/media

9 APPENDICES

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