Coca Colas New Product Implementation Plan

Contents

Brief summary

Overview SWOT

Market Strategy objectives

Implementation Plan

Actio plan Coordination Personnel

Evaluation & Monitoring

Timeline

Brief summary
The following implementation plan forms the basis for the introduction of an innovative new product (Bubble Buzz) by the Coca-Cola Company. The analysis allows us to outline the best strategies to follow for the achievement of the companys strategic goals. Bubble Buzz will be marketed as a unique functional drink while striving to reinforce the companys status as the leader in innovation and successful product launches. The marketing strategies will enable to reach a market size of an estimated 8,688,300 people

(targeted) with a forecasted sales growth prospect of 7.3% over the next 4 years, while satisfying the needs of the stillunserved market for ready-to-drink bubble tea. Success will be reflected by a sizeable capture of market shares within this market, while strategically carrying the company up to the top spot as the market leader in the functional drinks segment of soft drinks. In addition, export potential will be considered in China.

Overview
Brief description of the company
The Coca-Cola Companys core undertaking is to benefit and refresh everyone it reaches. Founded in 1886, we are the worlds leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, which are used to produce nearly 400 beverage brands that make up for our wide portfolio. Our corporate headquarters are established in Atlanta, and we are holding local operations in over 200 countries around the world. Our activities cover all sectors of

the beverage industry. We are the second leading player in functional and Asian specialty drinks, while ranking number one in value for the ready-to-drink tea sector. Situation analysis INDUSTRY ANALYSIS Consumption: The sales volume for the functional drinks segment (ref. D2) in Australia 3.94 liters, which represents a 4.0% increase compared to 1999. The growth of this particular market is largely due to a slow shift in consumer trends. Trends: Through the early 1960s, soft drinks were synonymous with colas in the mind of consumers. In the 1980s and 1990s, however, other beverages (from bottled water to tea) became more popular. Coca-Cola and Pepsi responded by expanding their offerings through alliances (e.g. Coke & Nestea) and acquisitions (e.g. Coke & Minute Maid), but also by focusing efforts on portfolio diversification. Today, while the soft drink industrys 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. 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. New flavor introductions and health-conscious formulations have been launched in an attempt to offset the decline in carbonated soft drink sales. 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. 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.

SWOT ANALYSIS

(Strengths and weaknesses,

opportunities and threats) strengths Brand strength Effective stride in new markets Results of operations Strong existing distribution channels weakness Reliant upon line extensions Reliant upon particular carbonated drinks Brand dilution Entrance into difficult noncore categories opportunities New product introductions Brand is attractive to global partners threats Strong competition Potential health issues Free trade

Market objectives
The objectives of the marketing plan are strategically centered on 3 criterias:

To create a strong consumer awareness towards a completely new bubble tea product from Coca- Cola,

To establish a wide brand recognition through the capture of market shares in the functional drinks segment,

To become the top market leader in that particular segment within the forecasted sales figures.

Marketing Strategy
The new product-Babble Buzz will focus on three geographical markets: Australia, USA and China, and in limited products segments: Bubble Tea beverage in a pre-bottled, ready-todrink format.

DISTRIBUTION: Bubble Buzz will be distributed through these channels: supermarkets, convenience stores, independent food stores, discount stores, multiple grocers, vending machines, direct sales.

The target customer is usually the young generation who are curious with new products. Customer demand is a crucial factor which is driven by tastes, income and availability of

others similar products at a different price (mentioned later in the potential substitutes section). For a lot of consumers, value and price are highly related: the higher the price, the higher the value. Consequently, Coca-Colas intention to position Bubble Buzz as a unique, innovative and attractive product gives it a certain control over Bubble Buzz price. To be able to implement higher pricing though, the minimization of the non- monetary costs to customers should also be include along with awareness of the product

Implementation Plan

Coordination Personnel
This communication plan was designed by marketing team, which is we are going to using promotional strategy. One is targeting on ages between 5 to 18 years and other one is targeting on regular adults drinkers. The main purposes is to knowledge them what is the new product and

Action plan
Action Plan Person Resource Cost Responsi s ble Required Marketin g manager and Advertisi ng Compani es Marketin g manager and Sale staff Marketin g Manager, Marketin g Assistant Marketin g Manager Creative agency

Date

Task

Complet ed

10/12/ 10

1/1/11

28/2/1 1

Introduce the products and Increase target perceptio n. Differenti ate from its competito r Conduct survey on customer s

TV adv. $4000.00 & Movie Theatre Pre-show Advertisi ng

Rebates, $1000.00 Catalogu es and product models Mail $2000.00 outs, Talk to custome rs Compute $600.00 r, sales

1/3/11 Evaluate sales of the day 15/3/1 Make VIP 1 cards to encourag e customer

Design for card

$500.00

s to return

Timeline
Promotion Schedule Step 1 Personal selling February to September To make Canadian retailers aware of Bubble Buzz so they can order it in time for Summer time 2 Radio spots February to April Radio is the most listened media by students (based on researches); the target market would hear our radio spot several times a day. This will ease the recognition of Bubble Buzz in future promotion tools 3 Magazines ads Mid-March to June The target market will then match an image with the name of the product more easily. The recognition of Bubble Buzz will be faster.

4 Television spots April to September To send a widespread message that Bubble Buzz is now available. 5. Sample distribution April to September To get potential buyers to try Bubble Buzz and to create an addiction to it. 6 Point of purchase April and September Making a special section for the Bubble Buzz in Grocery store will help the new potential buyers to find our product faster and more easily. 7 Outdoors May to September Putting adds in specific places where Generation Y hangs out will create an increased awareness of Bubble Buzz 8 Public Relations May to September We will use special events (sports and others) to promote Bubble Buzz and also to get in touch with our potential

market. It will allow Coca-Cola to interact with our Generation Y Consumers. 9 Contests August to end of September When the summer will come to its end, we will use contest to give a second "push" to the sales of the Bubble Buzz. 10Publicity All the time Use of conferences and news to make the general public aware of the existence of Bubble Buzz.