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Gillian Shelleyon 4 April 2014
Transcript of Marketing Plan
7% Alcohol content beverage
Bacardi White Rum and Original Coca-Cola taste (highest sellers)
High Quality, Affordable Prices
One-stop shopping, convenience
Contains Vitamin C & electrolytes
Rejuvenation to jump-start your day
Differentiation, first to attack needs of individuals battling a hangover
Mid-day energy beverage
Infused with caffeine and ginseng
Academic success, perfect for studying
Uniquely designed to target the life of university students & young adults
Line of products capable of facilitating balance
Reinforcing self-concept university students strive for
Quick & deep market entry
Low original prices
Appeal to frugality of target market
Increase brand awareness & customer loyalty
Optimistic to break even the first year
Failure to break-even NOT detrimental
Large economies of scale allow for sacrifices to gain customer loyalty
Homogenous Competitive Pricing Strategy
Competitors' pricing IS important when pricing Rated-R
Target population cares about prices due to low disposable income
Rage: $3.99, Recovery:$2.49, Replay: $2.49
Slogan: “Be a Star with Rated-R”
Wide range of TV commercials: "Your Life, Starring You"
Begin in mid-August to create brand recognition
Young adults struggling to find a balance
between studious and fun pursuits
Begin in September 2014
Advertise the Rated-R trio, then individual advertisement
Sports Illustrated and Cosmopolitan Magazine
"Graduated from high school" life event
"Starting at university" life event
Targeted Google Analytics Online Behavioral Advertising
Spring Break Contest
Release Rated-R in stores in
Price Evaluation in October 2014
Sales Promotion in August 2014
Osheaga & Frosh/Orientation Week (McGill & Concordia)
Personal selling strategy, giving out samples
Opportunity to collect media materials
Future possibility of sponsorship
11 Universities, 170,000 Students PLUS CEGEP students
Low Drinking Age
Wide-spread availability of alcoholic products in stores
Remain with Coca-Cola’s model based on their current success
Use their current partnerships with bottling partners (wholesalers)
Indirect Distribution Model
Manufactured Concentrates -> Bottling Partners -> Retailers -> Customers (sometimes retailers are cut out)
Retailers: Grocery stores, convenience stores, movie theaters, vending machines (Rage limited to corner stores and SAQ liquor stores)
Push Distribution Strategy
Combination of push/pull currently used by Coca-Cola
Additional Communication between manufacturer and wholesalers
Pull Distribution Strategy
Direct Communication between manufacturer and customer through mass media advertising
Vertical Conflict: Retailers vs. Wholesalers
Both Retailers and wholesalers distribute directly to consumers, exist at different levels of the Channel
Horizontal Conflict: Price Ceiling, Retailers vs. retailers, driving price down
Foreign Entry Potential & Recommendations
First Expand to:
Greater Toronto Area
Edmonton and Calgary
Vancouver and Victoria
If Profitable, Expand to USA:
New York (355,072 students)
Chicago (158,838 students)
Philadelphia (120,700 students)
Boston (115,620 students)
Los Angeles (112,679 students)
San Diego (91,083 students)
Direct Investment Strategy
Coca-Cola has reached economies of scale
Local scale manufacturer holding 275 bottling partners
High degree of control
Lower costs from cheaper transportation and raw materials
Product Adaptation Strategy
Customized new product that will fit the needs of the new market
Same promotion approach that Coca-Cola has used to sell their most successful products
Children & High School Students
Not of legal drinking age
Have less freedom, still live with parents
Not as prominent a focus on academics
Adults & the Elderly
More concerned about health
Have greater responsibility
Conscious of the examples they are setting for younger children
Drinking is a social activity, not drinking to feel the effects of alcohol
Academics are typically a top priority
Are old enough to drink or are reaching the legal drinking age
Very well-distributed segment
Minimal health risks
Market Segmentation & Targeting
Affordable on a student budget
Product line acts as a three-step system
Classified as "unhealthy"
Expanding beyond Montreal
Selling product to larger establishments
Expansion of the product line
Plethora of energy drink competitors
Brand loyalty, smaller market share
Legal drinking age
Competition (Porter's 5 Forces)
Threat of New Entrants
Soft drink market is attractive to enter: expected to generate $310 billion in sales by 2015
Customer loyalty to Coca-Cola
Brand equity obtaining high level of commercial value
Threat of Substitute Products
Substitutes that help hangovers, but none that directly target them
No exact substitutes for canned rum and coke
Many competitors in energy drink market
Bargaining Power of Buyers
The Coca-Cola Company reaches large consumer base
Individual buyer has next to no bargaining power over Coca-Cola Company
Bargaining Power of Suppliers
Nearly no pressure attributed to this threat
Caffeine, carbonated water, sweeteners, phosphoric acid, white rum
Undifferentiated products, large variety of suppliers
Rivalry Among Existing Firms
Two biggest competitors: Kraft Foods & Pepsi Co.
Kraft Foods does not specialize in beverages
Loyal consumer base to Pepsi & Coca-Cola Company assumed to remain fairly stagnant
Group 5 Marketing Plan Presentation
By: Victoria Lechner-Sung, Gillian Shelley, Mariana Hinestrosa, John Justinich, Hillary Muller & Daniel Chaim
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