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Marketing Plan

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Gillian Shelley

on 4 April 2014

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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

Promotes productivity

Academic success, perfect for studying
Product: Rated-R
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

Sold separately

Financial Analysis
Penetration Strategy
Quick & deep market entry

Low original prices

Appeal to frugality of target market

Increase brand awareness & customer loyalty

Break-Even Analysis
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

Individual Pricing

Rage: $3.99, Recovery:$2.49, Replay: $2.49

Print Advertisements
Ad Targeting
Sales Promotion
Product Launch
TV Commercials
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

Print Advertisements
Begin in September 2014

Advertise the Rated-R trio, then individual advertisement

Sports Illustrated and Cosmopolitan Magazine

Ad Targeting

"Graduated from high school" life event

"Starting at university" life event

Targeted Google Analytics Online Behavioral Advertising
Transactional Selling

Spring Break Contest

Product Launch
Release Rated-R in stores in
Mid-July 2014

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

Implementation Schedule
Montreal, Quebec
11 Universities, 170,000 Students PLUS CEGEP students

Low Drinking Age

Wide-spread availability of alcoholic products in stores
Channel Management
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
Channel Conflict
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
(166,400 students)

Edmonton and Calgary
(136,400 students)

Vancouver and Victoria
(79,000 students)
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
University Students
(Young Adults)
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"

Promotes intoxication

Environmental externalities
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
“Carbonated Soft Drinks”. Euromonitor International. Web. 31 Mar. 2014. <http://www.portal.euromonitor.com.proxy1.library.mcgill.ca/Portal/Pages/Search/SearchResultsList.aspx>

The Coca-Cola Company. "Our Company: The Coca-Cola System." The Coca-Cola Journey. The Coca-Cola Company, 2013. Web. 31 Mar. 2014. <http://www.coca-colacompany.com/our-company/the-coca-cola-system>.

Cosmopolitan 2013 Rate Card. London: Hearst Digital Media, 2013. Cosmopolitan Magazine. Hearst Communications Inc., Dec. 2013. Web. 28 Mar. 2014.

Das, Tanmoy. Operations Management: Success Factors of Soft Drinks Manufacturers In Bangladesh. Thesis. Bangladesh, n.d. San Fransisco: Academia Edu, 2014.Academia.edu. Web. 28 Mar. 2014. <http://www.academia.edu/1807854/Success_Factors_of_Soft_Drinks_Manufacturers_In_Bangladesh>.

"eINFO." Professional Programs. Web. 31 Mar. 2014.

Hearst Digital Media. "Advertise Online." Cosmopolitan. Hearst Communications Inc., 2014. Web. 26 Mar. 2014. <http://www.cosmopolitan.com/about/advertise-online>.

“Global Carbonated Soft Drinks”. Marketline. Web. 31 Mar. 2014.

Kligman, Rob. "How to Advertise with SI.com." Sports Illustrated. Time Warner Company, 2013. Web. 26 Mar. 2014. <http://sportsillustrated.cnn.com/adinfo/>.

New York Stock Exchange. "Coca-Cola Company (The) Common Stock." Yahoo! Canada Finance: KO Profile. Morningstar Inc. Web. 29 Mar. 2014. <https://ca.finance.yahoo.com/q/pr?s=KO>.

"Montréal is Canada’s largest university city." News of the Palais des congrs de Montral RSS.. Web. 31 Mar. 2014. <http://congresmtl.com/blog/montreal-is-canadas-largest-university-city/>.

Paul, Pinak. Project Report on Marketing Strategies of Coca-Cola. Diss. Manav Rachna International University, n.d. Faridabad: Human Resource at Eli Research India, 2013. Print.

Sports Illustrated Sales & Marketing Information Center. "Sports Illustrated - Rate Card." Sports Illustrated - Rate Card. Time Warner Company, 2014. Web. 29 Mar. 2014. <http://sportsillustrated.cnn.com/adinfo/si/ratecardframe.html>.

Statistics Canada. "Focus on Geography Series, 2011 Census." Statistics Canada. Government of Canada, 18 Jan. 2013. Web. 27 Mar. 2014. <http://www12.statcan.gc.ca/census-recensement/2011/as-sa/fogs-spg/Facts-csd-eng.cfm?LANG=Eng&GK=CSD&GC=2466023>.

Tanner, Dianne. "Manufacturing." Managerial Accounting. Jacksonville: University of North Florida, 2007. 1-5. Managerial Accounting. University of North Florida, 28 Dec. 2007. Web. 26 Mar. 2014. <http://www.unf.edu/~dtanner/dtch/dt_ch29.pdf>.

United States Securities And Exchange Commission. "Products and Distribution for Coca-Cola Company." Wikinvest. Wikinvest, 26 Feb. 2009. Web. 26 Mar. 2014. <http://www.wikinvest.com/stock/Coca-Cola_Company_%28KO%29/Products_Distribution>.

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