Marketing Plan Presentation - Jl - 04

GROUP 10 Audrey Jolin-Lessard Aïsha Brillant Cindy Cheng Geneviève Leblanc Nicolas Murcia Vicki Tian 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:

3 MARKETING OBJECTIVES 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.

BubbleBuzz A simple plan to success

Company Description

• •

2nd leading player in functional and Asian specialty drinks 1st in value for the ready-to-drink (RTD) tea sector

Product Description • It is a bottled beverage • It is the only READY TO DRINK bubble tea on earth! • It gives you an UNIQUE experience~ (Let’s get the buzz!) • It is a funky and unusual alternative to traditional tea

Industry Analysis – Where does the product stand? FOOD & BEVERAGE

Carbonates

Fruit/Vegetable Juice

RTD Coffee SOFT DRINKS

Concentrates RTD Tea

Bottled Water Functional Drinks

Industry Analysis – The Functional Drinks Market Segments of the functional drinks market Energy drinks Nutraceutical drinks Sports drinks Smoothies (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

7,896.40

8,169.60

8,481.30

8,879.90

8,994.50

9,224.10

TOTAL

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.

Industry Analysis – Consumer Trends

•Portfolio diversification through alliances, acquisitions, R&D •Consumer trends that affect the market (past & forecast)

Industry Analysis - Strengths, Weaknesses, Opportunities, Threats Strengths: Brand name Strong existing distribution channels

Weaknesses: Brand dilution Saturation of carbonated soft drinks segment

Industry Analysis - Strengths, Weaknesses, Opportunities, Threats Opportunities New product introductions Brand is attractive to global partners Threats: Strong competition Free trade

Competition

Soft Drink Industry Others, 8.9%

Coca-Cola Co., 43.7%

CadburySchweppes, 15.8%

Pepsi Co., 31.6%

Competition Coca-Cola Co., 32.8%

Others, 6.7%

Pepsi Co., 60.5%

Functional Drink Sector

Competition Traditional Bubble Tea…

• A battle between retailing vs. counter/restoration • We have a strong distribution sys --partnership + channels

Target Market • Segment ID: RTD bottled bubble tea • Needs: physiological  hydrating & nutritional social  a social, fun drink w/n group

• Trends:

1. away from junk foods & carbonated drink 2. growing interest for healthier product 3. on-the-go products for active lifestyle 4. personalization

• Size: 8,688,300 people (10-29 y.o. in Canada) a total of 329,600 L of consumption in functional drink

Target Market Segmentation Variables & Breakdowns • Geographic: National wide • Demographic: 10-29 years old • Psychographic: Brand conscious, popular culture;

• Behavioral : Benefit sought~ Functional– healthier than soft drink Perceptual– Quality/Premium price Usage rate~ Seasonal (peak in summer)

Marketing Mix – Price Strategy Price strategy should consider the following 3 aspects : Consumer demand The product lifecycle Potential substitutes

Bubble Buzz Price: $2

Marketing Mix – Price Strategy Consumer demand: driven by tastes and income; availability of others similar products; “The higher the price, the higher the value.” • The product lifecycle: the newer the product the higher the price; high profit margin; Potential substitutes: competitors attracted by high profit margin; easy to imitate;

Marketing Mix – Product Strategy

Marketing Mix – Product Strategy

• Brand personality: energy, funky, cool, functional, original, funny, healthy, etc. • Product modification: introducing an existing beverage but with a more convenient package • Benefits of Green Tea: cancer, rheumatoid arthritis, cholesterol, cardiovascular disease, infections, quit smoking, weight loss, 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 outof-the-ordinary individuals who like to challenge themselves

Be Bold, Be Original, Be Different, Be Yourself

Marketing Mix – Promotion Strategy Target Market: Generation Y only give partial attention to media and typically use more than one media at a time. Solution: Use a great variety of targeted promotional tools.

Media selection: Television Radio Magazines Internet Outdoors Personal Selling Public relations Publicity

Marketing Mix – Promotion Strategy Television:

Radio:

•Only media that can reach 99% of the homes in Canada

•Over 900 radio stations in Canada,

•We have the budget to cover the high costs

•Average student is a surprisingly heavy radio listener

Marketing Mix – Promotion Strategy Magazines: 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: official promotional website: www.BubbleBuzz.ca, visual audio and video message, banners on selected websites,

Outdoors: low cost and flexible alternative, campuses, bus, metro, tourist areas, malls, etc.

Marketing Mix – Promotion Strategy Promotional Mix: Consumer orientation Contests: “Win another Bubble Buzz flavour”, secret code underneath the bottle cap log on the website to win, increase consumer purchases / involvement Samples: to avoid product resistance, low risk for consumers since they get it for free. Point-of-purchase: in supermarkets to reach the parents of generation Y Product Placement : in TV shows in subsequent years,

Marketing Mix – Promotion Strategy Promotional Mix: Trade orientation Allowances and discounts: case allowance, encourage retailers to buy more of the product to get a certain amount for free Cooperative advertising: encourage retailers to buy our product and to maintain high level of advertisement Advertising: pulse scheduling, emphasized before and during summer

Marketing Mix – Promotion Strategy Intermediary: Push strategy, in order to gain retailer’s cooperation in ordering and stocking the product, personal selling. 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 : Capital expenditures : Profits

$113,453.56 Half of the O/H costs estimated, based on past data $25,676.33 4.3% of revenue, based on past data $243,029.47 CM – SG&A – Capital expenditures

Implementation Plan 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.

Promotion Schedule Step

Output

Period of time

“Step by Step”:

1

Personal selling

February to September

Advertising campaign:

2

Radio spots

February to April

• Create awareness of the brand

3

Magazines ads

Mid-March to June

• Reach target market (10 – 29)

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

• Develop mass consumption • Enhance distribution • Charismatic and ethical sponsorship • Suggest excitement about the brand • Maintain communication with media

Export Potential

Close to the origin of bubble tea--Taichun, Taiwan in 1983

Export Potential

Where?

**China’s Picture

**Population picture/chart China--- total 1,313,015,000 in 2005 target market= 327,714,000 Canada--- total 304,453,000

Export Potential We are the top sponsor for 2008 Beijing Olympic

** Sample of banner to be put around arena

Export Potential

---Entry Strategy---

Licensing!

Export Potential

---Some Changes-**Price **Name **Flavor **Promotion strategy (Billboard, outdoor display screen, ads in subway sys)

Export Potential

• Ads around public transportation---

SUBWAY

Export Potential

• Ads around public transportation--OUTDOOR DISPLAY

Conclusion

Jean-Louis’ conclusion and call for questions