Case Study Bout Virgin Cola

8/14/2019 Case Study Bout Virgin Cola

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Project in Marketing

Submitted by:

Azurin, Paula Beatriz L.

Baylon, JocelynCamba, Denise B.De Mesa, Ayana ThereseDellosa, Mark Kevin U.Diola, Ina Patricia B.

Submitted to:

Sir Bob Torres


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Marketing Plan


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The marketing

plan for Virgin Cola

has been created bythe 2LM team for an

effective formal full-

entry strategy for

Virgin Cola in the

Philippine soft drink

market.

Executive Summary


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Although the Virgin Cola has alreadybeen launched in the Philippine market

years before, the firm has lacked sufficient

efforts in promoting brand awarenesswhich led to its subsequent failure.

Executive Summary


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Effective brand

positioning, influentia

l advertising andpersuasive

promotions will

actually be of big

help in competing

with the well-known

local cola brands.

Executive Summary


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With these at

hand, Virgin Cola

will be expected to

increase its market

share, win new

customers, and

maintain brandloyalty to Virgin

Cola over the next 5

years.

Executive Summary


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Table of Contents

I. Introduction

Background Information

History

MissionVision

Product Virgin Cola in the Philippines

II. Situational Analysis

MarketMarket Size Size

Beverage Market in the Philippines

Market Demographics

Market Trends

Market Share

Soft Drink Brands in the Philippines

SWOT Analysis

Consumer Behavior in the Philippines


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Table of Contents

III. Marketing Strategies

Strategy Pyramid

Marketing Objectives

Marketing Goals

Market Segmentation

Target Marketing

Repositioning

Repackaging

Marketing Mix

o Pricing

o Promotion

o Channels ofChannel of Distribution

Distribution


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Table of Contents

IV. FinancialAnalysis

Expense Forecast

Profit Forecast

V. Controls

Implementation Milestone


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1. Introduction


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Virgin ColaType Cola

Manufacturer Virgin Drinks Silver Spring

Country of Origin United KingdomYear Introduced 1994

Variants Diet Virgin Cola

Local RelatedProducts

Coca-ColaPepsiPop ColaRC Cola


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History Virgin Cola was first released

in 1994 in UK by RichardBranson, to compete with

Coca-Cola and Pepsi.

It was actually set up duringthe early 1990s in conjunction

with Cott, a CanadianCompany that specializes inbottling own-label drinks.


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With a few months of its release, Virgin Cola had a 50%market share in the outlets that sold it. It went to belaunched in France, Belgium and South Africa.

In the US, Virgin Cola was first introduced in 1998. Forthe launch, Richard Branson rode in New York TimeSquare atop a tank promising a battle with Coca-Cola andPepsi.


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Richard Branson decided to grant the local bottling

franchise of Virgin Cola to Lucio Tans InterbevGroup.


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Companys Mission (UK)

The Virgin Colas mission is to be the consumerchampion with the help of their brandvalues, which are value for money, goodquality, brilliant customerservice, innovative, competitively challengingand fun.


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Virgin Group Brand Values Fun enjoyment and humor, not offensive and incompetent

Value for Money Simple, not cheap

Quality Attention to detail, not expensive for the sake of it

Innovation challenging convention, not different for the sake of being

different

Competitive Challenge responding to consumer needs, not being irrelevant

Brilliant Customer Service empowered, not unprofessional people


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Brand Name The brand name "Virgin" arose when

Branson and a partner were starting

their first business, a record shop.They considered themselves virgins inbusiness.


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Product

Virgin Cola is the flagship cola of the VirginDrinks.

It is a carbonated cola soft drink launched in1994. It is available in cans and bottles.

It comes in different flavors.


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Virgin Cola Flavors


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Virgin Cola (Original)

List of Ingredients

Carbonated water Caffeine

Sugar Acesulfame -k

Phosphoric acid Phenylalanine

Sodium Benzoate Phenylketonurics

Aspartame Natural Flavoring

Color = Caramel


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Virgin Cola (Orange)

List of Ingredients

Carbonatedwater

Citric Acid

Sugar

Stabilizers:

Acacia Gum Flavoring

Preservative: Sodium Benzoate

Orange Coloring


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Taste Virgin Cola has a sweet taste that

is not as gassy as other brands. It

does not leave an aftertaste.


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PackagingCan

- Virgin Cola is packaged in redcolored can with the Productsname in white bold letters.

Bottles

- The bottle which contained thecola was designed with curves toresemble Pamela Andersons sexybody who was at the height of

her popularity in the UK at thetime of the Virgin Colas release.


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Product Range

Size Unit per case Type Flavour

500 ml

500 ml

12

12

Sparkling

Sparkling

Cola

Diet Cola

500 ml 6 Pack

500 ml 6 Pack

18

18

Sparkling

Sparkling

Cola

Diet Cola

2 L

2 L

6

6

Sparkling

Sparkling

Cola

Diet Cola


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Virgin Cola in the Philippines

Lucio Tans Interbev Group was grantedthe local bottling franchise of Virgin Cola in

the Philippines. The Virgin Cola is distributed to all Lucio

Tans businesses.

It could also be found in some stores like7/11.


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2. SituationalAnalysis


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Current Situation

Virgin cola has long been existentin the Philippine market. Its formal

launching was in 2004, backed byLucio Tan injecting Php. 1 B into thelaunching project. However, due to

lack of aggressive follow throughadvertisements the product linesmarket presence was diminished.


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As of now the carbonated soft drinkindustry faces the perils of a new trend amongconsumers. It is the trend of healthy living andhow readily and easily the market accepted it.

Virgin Cola is not immune from this threat.Not only must Virgin Cola reintroduce itself to

the market it must be able to deal with thistrend along with competing with other marketcompetitors.


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Market Size According to the National Statistics Office

(NSO), the Philippine population is

projected at 88.6 million for 2008 with anaverage growth rate of 2.32%. Over 60 %of the population is between 14 to 60 yearsold, which means that the Philippine

beverage market is at mass.


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Beverage Market According to the National Statistical Coordination

Board, 46.58 % of the total family expenditure are usedfor food and beverage (includes consumption at

home, school and work).Family Expenses

46.58%

18.32%

16.80%

7.52%

6%

3.83%

Food

House Rental

Transportation andCommunication

Electricity, Water, Fuel

Education

Other needs


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Market Demographics Population: 88,574,614

Gender: Male 45,483,100

Female 44,974,100

Age structure 0-14 years:35.5% (male 17,392,780/female 16,708,255)

15-64 years:(male 28,986,232/female 29,076,329)

65 years and over:4.1% (male 1,682,485/female 2,215,602)

Median age total:22.3 years

male:21.8 years female:22.8 years

Population growth rate - 2.04%

Birth rate - 26.42 births/1,000 population

Death rate - 5.15 deaths/1,000 population


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Age Group (NSO)

04 9,669,502

5

9 9,694,7811014 8,949,614

1519 8,017,298

2024 7,069,403

2529 6,071,089

30 - 34 5,546,294

3539 4,901,023

40 - 44 4,163,494

45 - 49 3,330,054

50 - 54 2,622,31655 - 59 1,903,649

60 - 64 1,633,150

65 - 69 1,138,843

70 - 74 797,970

7579 505,356

80 and over 490,241

Market Demographics


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Market Trends There is a rise of health consciousness as well

as the fitness trend.

The products/products after taste, strategicpackaging, flavor and ingredients are key salesconsiderations

Filipino soft drinks companies go international

by pursuing expansion Use of sports as marketing tool


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Soft drink Brands in the Philippines Coca-Cola leading soft drink in the market

Pepsi

Sarsi - a Sarsaparilla rootbeer originally made byCosmos Bottling, now part of Coca-Cola

Jaz Cola - a low-cost cola flavored beverage madeby Coca-Cola

Pop Cola - a low-cost cola flavored beverage fromCosmos

Cheers - a low-cost citrus flavored soda fromCosmos


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Soft drink Brands in the Philippines Royal - the first CSD in the country, made in 1922 by

San Miguel Corporation, now a Coca-Cola brand

Lift - a citrus flavored soda by Coca-Cola

Zest-O Corporation - produces various drinks including aFruit soda, Cola, Root beer, a calamansi-flavored sodaand a dalandan-flavored soda.

Teem - low cost citrus flavored soda popular in the

1970s Lemo-Lime - low cost citrus flavored soda popular in the

1970s

RC cola - the cheapest soft drink in the market


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Market Share As of 2008, the leading brand of

carbonated drinks is Coca cola

with 80%; followed by Pepsi Cola with 15%, RC Cola with 3% and

other brands with 2%.


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Market ShareSales

Coca - cola

Pepsi Cola

RC Cola

Others


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SWOT Analysis

Virgin Colasstrength, weaknesses, opport

unities and threats are as

follows:


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Strengths: The power of the brand name;

Fierce promotion techniques; and

Innovation through image and packaging.


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Weaknesses: Too much dependence and emphasis on

the brand name

Incongruence between strategic andtactical levels; and

Too reliant upon too few distributionoutlets.


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Opportunities: Diversification into new ranges ofVirgin Cola products

Increasing consumption levels ofsoft drinks

The ability to gain more marketshare


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Threats: Intense competition (the cola wars)

US saturated soft drinks market


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SWOT of Virgin ColasCompetitorsCoca Cola Pepsi RC Pop Cola

Strength1. Extensive bottling

system

2. Packaging

3. Brand Strength

1. Brand Strength

2. Effective stride in new

markets

3. Strong existing

distribution channels.

1. Low price

2. Concentrated Brand

Identity

3. Focused on Mass

Market

1. Low price

Weakness1. Health issues 1. Reliant upon line

extensions.

2. Reliant upon particular

carbonated drinks.

3. Brand dilution entrance

into non core

categories.4. Saturation of

carbonated soft drink

segment.

1. Does not cater to

upper class market

2. Selective advertising

3. Not available in most

fast food areas

1. Does not cater to

upper class market

2. selective advertising

3. not available in most

fast food areas

4. Health issue


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Coca Cola Pepsi RC Pop Cola

Opportunities1. Extensive target

market

1. Further

expansion of

market share

2. Brand is

attractive to

global partners

1. Expansion of

target market to

international

areas

1. More bottling

systems for further

expansion into the

local market

Threats1. Other alternative

beverages

1. Strong

competition

2. Potential health

issues

1. Strong

competition

Other alternative

beverages

SWOT of Virgin ColasCompetitors


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Virgin Colas Current ProductStrategy

Core Benefit:

A refreshing non alcoholic beverage.

Actual Product:

Brand Name:Virgin Cola Quality Level:Excellent

Design and Packaging:

Regular (240 mL)

Feature: Caffeine content, dark coloring (Aspartame and

caramel)

Augmented Product:

Quenching ones thirst, energy drink


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Current Brand PositioningVirgin Cola is currently one of the cheapest

cola brands being sold in the Philippine market.The image being propagated by the brand is

not wholesome especially seen in the shape ofthe bottle which was patterned after PamelaAndersons body.


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Current BrandingThe branding strategy adopted by Virgin

Cola in its launch in the Philippines is themanufacturers brand strategy wherein the

products carry the name of the company withcertain differentiating elements added orattached to the name. One example of this isVirgin Red, Virgin Blue Spirit, etc.


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Current PackagingPackagings primary purpose is to preserve

and protect the contents of the product until itarrives in the hands of the final consumer. It has

added use of including the brand informationsuch as the label, size, and nutritional value ofthe product, if any is possible. The focus of thepackaging is on the expansion of distribution by

means of offering Virgin Cola in a variety ofcolors and sizes while maintaining the signatureshape of the Virgin Cola bottle.


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Current Pricing Strategy

In the Philippines, Virgin Cola is under InterBevwhich is owned by Lucio Tan. InterBev in turn isunder Asia Brewery. Virgin Cola is limited to only to

businesses owned by Lucio Tan such as thePhilippine Airlines. It has a minimal market share inthe country. It is targeted at the younger generationbut it can be consumed by different age groups. To

date, it only has one product offering in the market.Virgin Cola Red 240 mL

Virgin Blue Spirit 240 mL


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Channels Virgin is a brand whose customer franchise is so strong that

it can be applied to a vast range of businesses.

In other countries, the Virgin brand has been applied toradio stations, record companies, retailers, airlines (such as Virgin Atlantic, Virgin Blue), mobile phonecompanies, broadband ISPs (Virgin Media), trainservices, motor vehicle sales, credit cards, loans, lifeinsurance, car and pet insurance, homeinsurance, mortgages, pensions, savings andinvestments, music festivals, recreational experiences (suchas using a sheep dog to herd a flock of sheep, and nowspace travel), network marketing businesses (e.g. VirginCosmetics), and much more.

In the Philippines, Virgin Cola sponsors TV programs like ABSCBNs morning talkshow Ruffa and Ai.

M k t R h D b th
http://www.virgin.com/AboutVirgin/WhatWeAreAbout/WhatWeAreAbout.aspx


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Market Research Done by theInterbev Group

Whenever a business attempts to implement a new marketing

plan, it must first address its target market and gather relevant informationin order to insure the efficiency and differentiation of the new plan fromthe previous one.

Virgin Cola has done two aspects of market research namelyexploratory research, which tries to address problems encountered by thecompany, and descriptive research, which identifies the market potentialof the product and the target markets characteristics and how to bestcope with the ever changing market.

However, further research will be conducted after marketpenetration to sustain the product against intense competition especiallyduring the growth and maturity stage.


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Psychological

Conservatism isprevalent mindset

of the Philippinesociety and is aprime factor that

affects theconsumers choice.


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Socio cultural

Filipino societyplaces muchimportance onfamily andreligion. It is a

communalsociety.


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Economic

The retailprice of Virgincola is adaptedto the currenteconomic

situation of thecountry.


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Political

New lawsregarding thepackaging anddistribution of theproducts as well as

imposition of additional taxes.

P L


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Philippine Laws

In the Philippines, there are certain

laws which limits the freedom of thesoft drink companies or manufacturerin the market.


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R.A. No. 3720

An act to ensure the safety and purity of foods,drugs, and cosmetics being made available to thepublic by creating the food and drug administration

which shall administer and enforce the lawspertaining thereto.

Chapter VII or the Definition and Standards for Foodpromulgates regulations fixing and establishing for

any food, under its common or usual name so far aspracticable, a reasonable definition and standard ofidentity, a reasonable standard of quality, and/orreasonable standards of fill of container


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R.A. No. 623

An Act to regulate the use of duly stampedor marked bottles, boxes, casks, kegs,

barrels and other containers.

The Virgin Cola is subjected to this lawsince they make use of cans and bottles as

containers of their product.


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R.A. No. 6361

An act providing for the fixing of themaximum selling price of essential articles

or commodities, creating the price controlcouncil, and for other purposes.

Section 1.(2) states that essential food and

foodstuffs including milk, soft drinks andother beverages are included.


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3. MarketingStrategies


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Strategy Pyramid

Strategy

Tactics

Program


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Strategy Pyramid:

The Strategy Pyramid emphasizes thepractical importance of building a solid

marketing plan structure. Most marketingplans are developed from the top-levelstrategy first.


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Marketing Goal:

The Marketing team of the Interbev

Group seeks:

To top the Philippine market forbeverages and encourage brand shifting

to our brand. And;

To maintain brand excellence and achieve

maximum consumer satisfaction.

To achieve 10% market share in five

years.

M k t S t ti


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Market Segmentation

Segmentation Variables Data


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Demographic

Age 15-35+

Gender Male; Female

Family size 5

Family life cycle Married; Single

Income Class B and C

Income Php. 2, 045,000

Education Elementary to College

Religion Roman Catholic, Muslim

Race Asian

Nationality Filipino



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Psychographic

Social Class Classes A to D

Lifestyle

Behavioral

Occasions Any time

Benefits Thirst quencher

User Status First Time User

Loyalty Status Brand loyal to market leader

Readiness Stage Unaware

T M k


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Target Market

The target market of Virgin Cola in thePhilippines are Filipinos between 15-35

years of age belonging to classes B and C.Secondary Market will include class D.

Based on the Marketing demographics

presented in the beginning of thepresentation, the target market is13,017,909 Filipinos.


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Computation for the Target Market

Population = 88,574,614

Ages 15 to 35 = 34.91%

Classes B and C = 42.1%

Computation

88,574,614 x 0.3491 = 30,921,39830,921,398 x 0.4210 = 13,017,909


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RepositioningOnce the market segmentation (i.e target

market, product definition) has been decidedupon by the company, the positioning process

can now take place. Positioning is the processof creating a product image that will stick tothe minds of the consumers relative to theother competitors in the market. It helps the

consumers identify and differentiate one brandfrom another by remembering the uniquecharacteristics of each brand.


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The societal context that Virgin Cola has towork in is full of hurdles not only because ofintense competition but also the conservative

mindset of the people. Virgin Cola may have astrong image and brand name. As stated earlier,it is one of their strengths, however, in thePhilippine context, it can be the brands

weakness as well. It needs to position itself in asubtler manner while maintaining its trademarklook and brand name.

R k i


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Repackaging

The trademark shape of the bottle will beretained. However, the labels design was

given a makeover. From the plain red colorthat it used to carry, patterns and othercolors such as black and white were added.This is not only to attract the customers

attention but also to give it a feel ofsophistication.


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N C f b l


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New Cover for bottles

B ttl C


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For Plastic Bottles For Glass Bottles

Bottle Caps

N C D i


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New Can Designs

N P i i St t


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New Pricing Strategy

We will follow the strategy of the USbased Virgin Cola Company which is a

dollar less than Coke. In the Philippines, itllbe a peso less than Coke. Psychologicalpricing is the strategy to be adoptedbecause Filipino consumers have a

tendency to patronize products that arecheaper even if it is only less a peso.


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Promotions

Free Taste


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Free Taste

Upon its re-launch, Virgin Cola would be

available in all SM Malls wherein free taste

promotion would be conducted for a week.

Pr C f r


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There would be a Press conference for the re-launchedproduct wherein press people and famous people wouldbe invited and asked for their opinion about the product(publicity).

Press Conference

S hi i L l E t


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Since we are planning to intensify Virgin Colasappeal to the market, particularly in the

provinces, which are not yet media corrupted, we areplanning to conduct activities sponsored by VirginCola. Such would be Musicfests, Pa-BinggongBayan, Sportsfests, hosting Barrio fiestas, etc.

Sponsorships in Local Events

Product Endorser


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In relation to the previous entry, we

have decided to get an endorser

and spokesperson for the product.

She should be someone who would

serve as an epitome of thecharacter that Virgin Cola wants to

show the people- refreshing, pure,

desirable. And with these, we

thought of the perfect endorser for

the product- Sarah Geronimo. Justlike Virgin Cola, she is wholesome

enough to make the youth look up

to her.

Product Endorser

Mysterious Billboards


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Mysteriousand interestingbillboards will

be put in keylocationsbefore thegrand launch

of the productto arousecuriosity.

Mysterious Billboards


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Other Billboard Designs:


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Are you ready toexperience the

mystery within?



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Women arent the only ones that are

virgins... forests too. Lets all help

save them.



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Anytime, anywhere,

YOU ARE ALWAYS IN..



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always

Heart



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Im

extremely

Selfish

ProtectivePossessive

With my



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A WIFE

for my

HEART..A

formy thirst.



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How lucky could humans be?

Suggested Tags:


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Suggested Tags:

Youll never go wrong with a Virgin. What else could come close? When youve

already got the Virgin No one else comes close. Virgin. Cola meets Virgin Satisfaction within. Virgin. Virgin cola, - kasama mo sa puyatan Always in- Virgin

Television Commercials


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Lively and effective TVCs will be aired in the major TVstations- ABS-CBN, GMA7, QTV11, TV5 and Studio23 particularly during noontime, when everyone wouldbe craving for a refreshing drink to quench their thirstcaused by the summer heat.

Television Commercials

Sample 1 T.V. Commercial


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A male astronaut was

exploring Mars when a big

ugly monstrous alien

approached him. The alien

was frightening and seemed

angry. The astronaut wasscared and took a bottle of

virgin cola out of his bag and

handed it to the alien. The

alien drank it and

transformed to a very

beautiful, elegant, virginlike woman. She smiled and

said thank you. Then she

walked away.




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A student was having a hard time

studying his history book. He rests

for a while and drank his virgin cola.

He smiles while drinking and his

sweat disappears. (the camera will

turn black and white, light wavescover the screen,). After drinking

his virgin cola, he opens his eyes

and sees katipuneros running

towards him. He panics and to try to

stop them from attacking him by

offering his Virgin cola. The leader

of the group tastes it and gave someto his subordinates. At first , the

student thought he had established

peace but instead, the katipuneros

wanted more and ran after him.




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Sarah and John are having

their shooting for a very sweet

movie. When the kissing

scene came and Johns lips

are already very close to

Sarahs, Sara immediatelyblocked his kiss with a cold

virgin cola bottle. The camera

will focus to the Virgin Cola

bottle, then Sarah drinks and

smiles at John, stopping the

kiss.


Magazine and Newspaper


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Advertisements

There would be also print Ads inglossy magazines, particularly inmagazines likeCandy, Seventeen, and the likessince their readers are mostly theyouth, which is Virgin Colastarget market too.

Likewise, print ads innewspapers would beavailable, particularly inbroadsheets such as PhilippineStar and Philippine DailyInquirer, and in decent tabloidssuch as Peoples Journal andPilipino Star Ngayon, so thatmore people would be aware ofthe products existence.

Philippine Airlines


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Philippine Airlines

We opt to continue

using Virgin Cola and

Asian BreweryBeverages to be the

only available drinks

in Philippine Airlines.

Internet Advertisements


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Internet Advertisements

Internet

Advertisements

(Friendster, Yahoo, Go

ogle, Multiply and

Entertainment

Websites) are cost-

efficient and very

effective when it

comes to reaching thetarget market.

Vehicle Advertisements


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Vehicle Advertisements

Vehicle

Advertisements

(Virgin Cola

advertisements on

LRTs, MRTs, jeepney

s, tricycles, taxies, b

uses, private-owned

cars)

Radio Advertisements


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Radio Advertisements

LoveRadio,

WRR,

StarFM,

LSFM, EnergyFM

University Caravans


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University Caravans

Virgin Cola Caravans indifferent universities couldalso help in the promotion ofthe product by simplysponsoring leadership or

entrepreneurial seminars tothe students.

Afterwards, notebooks, ballpens, fans, pins with I HeartVirgin Cola written onthem and other stuffs with

Virgin Cola logos could begiven away for these helpthe market remember theproduct.

Bottle Cap Freebies


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Bottle Cap Freebies

An effective promotional gimmick would be tansan

contest. Written under selected tansans would be:

Free movie entrance

Free discount coupons on selected restaurants

Free discount coupons on selected salons Free tickets to big concerts to be sponsored by Virgin

Cola

Free items with Virgin Cola logos

(thermos, bags, shades, coin purse, shirts etc.)

and the like.Consumers can redeem the prizes in selected retail

outlets.


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Public Relations

Collaboration with NGOs


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We would also like to retain the wholesomeness andlive out the products name since the youth is ourtarget market. Thats why we are also thinking ofcollaborating with NGOs like Gabriela to haveawareness seminars regarding social justice or of the

rights of women, especially during thismonth, March, which is Womens month.

Collaboration with NGO s

Virgin Forests Preservation


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We are also thinking of teaming up with groups that aim tosave our countrys Virgin forests. Since we would like tolive out the products name, we are planning to help these

groups preserve our forests by giving donations. Virgincola would promote the protection and rehabilitation ofthese forests for longer lifespan and future proper utility.This would be the companys charity work. This, at thesame time, would lower the taxes of the company.

Virgin Forests Preservation

Campaign with the Religious Sects


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C mp gn h h R g S

Campaign with the Religious Sects and

donations for them, to support the fight for

VIRGINITY. Filipino society places muchimportance on family and religion. It is a

communal society.


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Channel of Distribution



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Producer-Retailer-Customer

The retailer is the only

middleman involved in this channelof distribution wherein the producer

lets the big retailers sell his

products to the consumers.



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Why Choose this Channel?

Only a few middlemen may be requiredin launching a product that needs greatpromotional efforts in its initial stage.

The nature and type of middleman alsocounts, for a good retailer can help maximizethe volume of sales of a product.



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Our group chose a sole retailer for

Virgin Cola in its launch:

SM Malls

Why SM?


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Why SM?

It is the biggest mall chain in the

country.

It attracts a large number ofpotential consumers.

It would be the best retailer of

Virgin cola because it could be ofgreat help in its fast penetration in

the market.



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Chann l of Di t ibution

After the Launch

The people becomes aware of Virgin Colasexistence in the market.

Asia Brewery can now retail in differentstores, particularly in the provinces.

We chose not to concentrate that much in MetroManila because competing with Coca-cola, the no.1soft drink product in the city, would not be easy.

Virgin Cola will first get the larger part of themarket, if not monopolize, in the provinces whilepenetrating slowly towards the center, which is MetroManila.



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Chann l f D b n


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4. Financial Analysis


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Sales Forecast

Projected Sales for a Year


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P j S Y

Assuming that all target market will buy 12ounce Virgin Cola for P10.00 thrice a weekfor a year:

Target Market = 13,017,909

Frequency per week = 3

Number of weeks in a year = 48 weeks

Price = P 10.00

Projected Sale = 13,017,909 x 3 x 48 x 10

= P 18,745,788,960.00

Projected Sales in 5 Years


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P j S Y

Total Profit in 5Years

67,828,944,800.00


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Expenses Forecast

Ad i i

2009-2010 2010-2011 2011-2012 2012-2013 2013-1014


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Advertising 4,245,000,000 4,245,000,000 4,245,000,000 4,245,000,000 4,245,000,000

Magazines 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Newspaper 90,000,000 90,000,000 90,000,000 90,000,000 90,000,000

Posters 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Internet 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Radio 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000

TV 4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000

Artwork & Production 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000

Billboard 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Transport Advertising 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000

VIRGIN PROJECTS

(public relations) 63,000,000 63,000,000 63,000,000 63,000,000 63,000,000

2009-2010 2010-2011 2011-2012 2012-2013 2013-1014


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WOMENS

Gabriela

CATW-Asia Pacific

10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

VIRGIN FOREST

DENR

GENESSYS

Haribon Foundation

25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

VIRGIN

FOUNDATION 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000

*Scholarship for

Deserving Students

*Home for theHomeless Children

Campaign with

Religious Sects 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000

VIRGIN PROJECTS

(public relations) 63,000,000 63,000,000 63,000,000 63,000,000 63,000,000

2009-2010 2010-2011 2011-2012 2012-2013 2013-1014


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WOMENS

Gabriela

CATW-Asia Pacific

10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

VIRGIN FOREST

DENR

GENESSYS

Haribon Foundation

25,000,000 25,000,000 25,000,000 25,000,000 25,000,000

VIRGIN

FOUNDATION 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000

*Scholarship for

Deserving Students

*Home for theHomeless Children

Campaign with

Religious Sects 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000

2009-2010 2010-2011 2011-2012 2012-2013 2013-1014


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PROMOTIONS 265,000,000 265,000,000 265,000,000 265,000,000 265,000,000

Promos 205,000,000 205,000,000 205,000,000 205,000,000 205,000,000

Sponsorship 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000

Cash Rewards

Automobile Reward

Gadgets Reward

Free TastesMall Tour

University Events

Concerts

Musicfest

Sportsfest


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PACKAGING 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000

2009-2010 2010-2011 2011-2012 2012-2013 2013-1014

LABELING 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000

ENDORSERS 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000


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Total 5,180,000,000 5,180,000,000 5,180,000,000 5,180,000,000 5,180,000,000

2009-2010 2010-2011 2011-2012 2012-2013 2013-1014

25,900,000,000


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Profit Forecast


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2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Expenditures 5,180,000,000.00 5,180,000,000.00 5,180,000,000.00 5,180,000,000.00 5,180,000,000.00

Sales 18,745,788,960.00 18,745,788,960.00 18,745,788,960.00 18,745,788,960.00 18,745,788,960.00

Profit 13,565,788,960.00 13,565,788,960.00 13,565,788,960.00 13,565,788,960.00 13,565,788,960.00


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5. Controls

Implementation Milestone


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After five years of successful advertising

we opt to minimize the number of

advertisements in order to lessen

expenditures. On the other hand, we

intend to employ international artists as

endorsers.

Moreover, in the next five years, weintend to gain 20% market shares.


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Also, to introduce new flavors under the

banner of Virgin Forest.

Also, we would like to showcase

achievements of our sponsored

organizations in our future commercials,

under the banner of Virgin Cola Cares.

End of Presentation


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Documents

Case Study Bout Virgin Cola