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Student Names & McGill ID
BRILLANT, Aïsha 260194236
CHENG, Chin-Yun 260014110
JOLIN LESSARD, Audrey 260180785
LEBLANC, Geneviève 260188501
MURCIA, Nicolas 260177704
NGUYEN, Jean-Louis 260078995
TIAN, Yu 260177360
Course Information
Marketing Management I
MCGR 352, Section 005
Professor: Constantina Kavadas
Marketing Plan Part 1: Market and Consumer Profile
Date of submission: Wednesday, March 29th, 2006
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The following marketing plan forms the basis for the introduction of an innovative new product by the Coca-Cola Company. The analysis allows us to outline the best strategies to follow for the achievement of the company’s strategic goals. “Bubble Buzz” will be marketed
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Today, while the soft drink industry’s value has increased in 2004, the volume sales of carbonated soft drinks has declined due to a large proportion of consumers who are opting for the trend towards healthier alternatives in the functional drink segment (energy drinks, smoothies, milk & juice drinks, sports drinks) as well as bottled juices and water (ref.5). Companies have been actively engaged in new product developments in order to counter the growing concerns about negative health impacts of high-fructose drinks, but also to increase the demand in a market where product offerings are quickly maturing (ref.4). New flavor introductions and health-conscious formulations have been launched in an attempt to offset the decline in carbonated soft drink sales (ref.6). The functional market is expected to show sustained growth and consumer interest in the future years as consumption shifts to trendier, healthier and more sophisticated products (ref.7).
Profitability & future growth potential: In 1993, Concentrate Producers earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14%. While the functional drinks sector only accounts for 3.7% of the total soft drinks sales in 2004 (Appendix B), estimates are forecasting a growth of 7.3% in sales and 11.0% in volume consumption by 2009 (ref.4).
SWOT ANALYSIS (Strengths and weaknesses, opportunities and threats)
The soft-drink industry capitalizing on creating the best product. Each product has a different taste, formula, and color to entice the consumer. It is important for the product to remain innovative in order to keep the consumers interested. The suppliers can easily differ, because they do not hold much value or put
Coca-Cola is the provider of carbonated and non-carbonated beverages that can be found in many homes, businesses, and almost everywhere you go in your daily routine. As follows in this plan, Coca-Cola renovates their concept and strategic focus by adding importance to target segments with new and evolving
Increasing customer health consciousness: Most of PepsiCo’s soft drink lines are perceived as unhealthy by consumers (Bhasin, 2017). In an attempt to combat this image PepsiCo under Nooyi’s guidance decided to turn their focus to more health conscious product options (Cooper, 2014). PepsiCo’s move to focus on more healthy products led to startling declines in their U.S. soft drink market share (Cooper, 2014).
Soft drink producers have in the recent past faced stiff competition from upcoming substitute products: bottled mineral water, energy drinks, teas, juices and sport drinks. This trend has thrown companies such Pepsi Co. back to the drawing board to regain their grip on the market. Pepsi Co. recently introduced "Pepsi Next" a mid-calorie beverage in their line of products. Success in attracting demand for the product needs a promotional strategy that incorporates consumer needs embracing the global trends in technology and life style. An understanding of the consumer
Most all sodas or soft drinks consist of the basic, carbonated water, sugar, and caffeine. Colas, in particular, were originally just a mixture of extracts of the coca leaf and the cola nut blended with sugar water (1). Though, nowadays, the natural sugars that were originally used, have been replaced by high fructose corn syrup. According to ConsumerReports.org,in 2009 the average american consumed approximately 35.7 pounds of high fructose corn syrup showing the great prevalence of this overused, unhealthy ingredient (3). Though, why would so many producers put an ingredient so detrimental to the consumer’s health in their products? High fructose corn syrup is not only cheaper than organic sugars, but it is also sweeter meaning much less
The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) collectively hold about 70% of the US market which can making very hard for new entry to succeed in this industry. However, the decline in CSDs consumption has opened a great market for non-carbonated and health conscious drinks. So, LaMarquise intends to take advantage of this opportunity to develop its market of flavored syrups and fruits concentrate juices, also to note that there are very few competitors when it comes to flavored syrups in the U.S. The products are great refreshing drinks for adults and children and contain no preservatives or harmful chemicals. Furthermore, our marketing plans and strategies will offer an opportunity to succeed in this competitive market.
According to my venture report buyer recognition's towards soda pops developed more grounded than any time in recent memory from the pesticide sullying discussion in late 2003, and the early rainstorm in mid-2004 in numerous locales of India, that at one point debilitated to crash development in 2014. Reacting to a progression of activities all through 2004, for example, diminishing pack sizes, presenting new flavors, expanding purposes of offer, situating on the present wellbeing blast and talking point of preference of changing customer inclinations, the aggregate volume of soda pops sold in 2014-15 surpassed four billion liters, enrolling a strong rate of 18%
Boston Beer Company (BBC) is exploring entrance into the hard soda market, and enter-ing this market is justifiable. This market is poised to yield a 175± percent increase in 2016, with 10 million more cases sold compared against the previous year (PY) (Peters, 2016). Finalized 2016 results have not yet been published. The source of this market growth is Millennials*, at-tracted to the sweet flavor profile and “retro" factor of hard soda (Peters, 2016). An analysis performed by Mintel found that two in five U.S. drinkers aged 22+ (particularly Millennials) are interested in trying products with alcoholic soda flavors (Forsyth, 2016).
Soft drink industry is very profitable, more so for the concentrate producers than the bottler’s. This is surprising considering the fact that product sold is a commodity which can even be produced easily. There are several reasons for this, using the five forces analysis we can clearly demonstrate how each force contributes the profitability of the industry.
The Coca-Cola Bottling Company holds true to their values and strategy, thus creating more value within their brand. Business level strategy implements new products that embodies a fun and sociable atmosphere amongst family members and friends. This ambitious quality in a company is what pushes them past the threshold of complacency to move their product. One way they were able manage their brand globally was by using intense advertisements. Adding to their already famous and highly desired beverage, a business level strategy was instituted to add flavors to their cola product. By adding Cherry Coke and Vanilla Coke to their products, they satisfied the taste buds of millions upon millions of consumers here and abroad. Having the corporate level strategy makes the corporation thrive in the global market. It is also viewed as staying relevant or competitive, by developing more products that would best serve everyone who enjoys their product.
In recent years, Coke has been focusing on micromarketing (local marketing and individual marketing in details). In 2010, their “The happiness machine” video had became viral and changing the game of marketing. It does not tell how good their cola is but it brings truly happiness for people. That vending machine was travelled around the world and gives the college student shock, amazement, giggling via its unpredictable products ejected, or “Share a Coke” campaign. This unique campaign has gained a lot of fame for Coke this year. It is first launched in Australia in 2011 and has since rolled out in more than 50 countries, invites fans to find their names, and the names of family members, friends… on bottles of Coke, Diet Coke and Zero across the U.S. For teenagers, especially Millennial, personalization is not a fad, it’s a way of life and Coke has caught that need. The need of self-expression, individual storytelling and staying connected with friends. While the battle over links between soft drinks and obesity had declined Coke eleven years in US, a two percent rise in sales in the US (the Wall Street Journal reports) has switching Coke back to its standard
The Coca-Cola organization has made exemplary strides mainly to offer a variety of products to its clients even with the competitive nature of the market. Consumers’ choice gets based on the brand aspect in which the organization wins most customers' heart against its rivals. Even though a significant number of people deny cases to having inclination picking between Coca-Cola items or its rivals', many have a strong desire in some way. Many inclines toward Coca-Cola products since the organization has more than hundred years of history and predictable brand image. This picture is engraved in a lot of people subsequently end up purchasing their beverages. It is out rightly conspicuous in the company’s high market share in the field of soft drinks.
Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many
In modern society cold drinks have become a popular consumable with many people drinking more cold drink than water. This is an issue because of the growing health issues relating to obesity, diabetes and many more in society, thus making it a worthwhile topic to research because so many people consume cold drinks such as Sprite and Coke on a daily basis and are unaware of the nutritional content and the effects of this lifestyle habit on their health. People are also unsure as to whether Sprite is healthier to drink than Coke. With the pressures of looking good and eating healthy becoming more and more prevalent in
Coca-Cola has been around for generations with the same iconic taste, logo and symbolism. Its brand has represented family and the memories of good times, celebrations and comfort of being with those we love. Unfortunately, the company has not made good marketing decisions in the recent past and has lost relevancy. The purpose of this essay is to assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management.