Upload
zonayetgazi
View
217
Download
0
Embed Size (px)
Citation preview
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
1/26
Student Names & ID
Juairia sharmin Misti (0930010)
Mamta Sultana (0930226)
Refat sultana (0930054)
Jakiya Sultana Sreeti (0930237)
Nafizul Haque Niloy (0930007)
Buland Shahjahan zeb(0930337)
Course Information
MKT-201 (Sec-3)Faculty: Md. Rajib Rahman
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
2/26
Date of submission: , May, 11, 2011
ACKNOWLEDGEMENTS
We want to give our thanks to our faculty, Md. Rajib
Rahman who has supported us to prepare ourassignment properly and guided us, as well. Becauseof his assist and support we could complete ourassignment. In this report we have included the datathat contains marketing plan for Namingos new
brand of product(Bubble buzz)
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
3/26
The following marketing plan forms the basis for the introduction of an innovative new
product by the NamingoCompany. 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 ($243,029.47 profits),
while satisfying the needs of the still-unnerved 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.
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
4/26
Mission Statement:
As we are launching new product our first target is to satisfy the customer.
Bangladesh is a Muslim country and its product is non alcoholic. So it is
very easy to capture the market & also compete with other products. Also
we want to serve our customer at a reasonable price & make the product
affordable. Our main mission is satisfying our customer with this product &
earns revenue.
2
The objectives of the marketing plan are strategically centered around 3 criteria: to create
a strong consumer awareness towards a completely new bubble tea product from
Namingo, to establish a wide brand recognition through the capture of market shares in
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
5/26
the functional drinks segment, and to become the top market leader in that particular
segment within the forecasted sales figures.
1
Brief description of the company
The Namingo Companys core undertaking is to benefit and refresh everyone it reaches.
Founded in 2011, we will be the worlds leading manufacturer, marketer, and distributor
of non-alcoholic beverage concentrates and syrups, which are used to produce nearly 2- 3
beverage brands that make up for our wide portfolio. Our corporate headquarters are
established in Bangladesh, and we are holding local operations in over bangladesh
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 .
Brief description of the new product, & strategic role in the future position of the company
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
6/26
Bubble Buzz will be a bottled beverage and will be positioned as the only ready-to-
drink Bubble Tea product available on the market. The beverage will have a green tea
base with enhanced fruit flavors (passion fruit, strawberry and lime) as well as tapioca
pearls. It will bring an entirely unique drinking experience to its consumers. It will
present itself as a funky and unusual
2
alternative to traditional tea while providing the great taste of authentic fruit juice in an
attractive and convenient packaging. The strategic role of Bubble Buzz for The
Namingo Company is centered around three objectives:
To stay at the forefront as the market leader in innovative product introductions
and successful product launches;
To strengthen and satisfy the needs of the more adventurous Generation Y
consumers with a new eye-catching and functional product;
To become the market leader in the functional drinks segment with increased
market shares.
COMPETITION
Namingo top competitors for the soft drinks industry are PepsiCo (31.6%) and Cadbury-
Schweppes (15.8% of market), which combined, represent about 48% of the total market
(ref.9). Naming is leading with 43.7% of the total soft drinks market.In the functional drinks
sector, PepsiCo is the current market leader with 60.5% of the market shares in 2011. .
Bubble Buzz will launch into a currently unnerved subset of that market (RTD Ready-To-
Drink Bubble Tea), which is until now unexacting. It is anticipated that the following brands
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
7/26
could potentially compete with Bubble Buzz in the functional drinks market: Brisk, Lipton
Iced Tea, Sobe (owned by PepsiCo), as well as Snapples and Hawaiian Punch (owned by
Cadbury/Schweppes). Bubble Buzz also creates a potential situation for cannibalism with
Naming very own brands of iced tea and other functional drinks.
The current market for traditional Bubble Tea is fragmented, since the distribution is
restricted to local outlets and selling points such as counters and small Bubble Tea shops in
3
scattered locations across bangladesh. However, direct competition from these local players
is not anticipated, since the marketing roll-out will initially emphasize on product awareness
and both sales channels do not reach or serve the same market (retailing vs.
counter/restoration). A strong distribution system already exists with namingo, since
partnerships and channels are already in place. This will facilitate the products reach into its
target market. Further data concerning competing market shares and distribution channels are
available in Appendix D(1-3).
TARGET MARKET
Segment identification: RTD (Ready-to-drink) bottled Bubble Tea, to be established
within the Functional Drinks sector
Segment needs: The product will cater to both physiological needs (hydrating and
nutritional value) and social needs (perception of a social, fun drink with a sense of
belonging within peer consumer groups)
S egment trends : The current trends include a shift away from junk foods and carbonated
drinks, a growing interest for healthier / beneficial products for the mind and body (ref.
10), the trend towards the availability of on-the-go products for those with an active
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
8/26
lifestyle, as well as the trend for personalization through customization (or for beverages,
through variety-seeking in a wide introduction of flavours
Segment growth potential: Statistical reports anticipate a segment growth of 1.72% over
the next 9 years (2020) for the 10-29 years old subsets
Size of the segment (population): 8,688,300 (329,600 L). .
4
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
9/26
SEGMENTATION VARIABLES AND BREAKDOWNS FOR CANADIAN CONSUMER MARKET OF
BUBBLE TEAMAIN DIMENSIONS VARIABLES BREAKDOWNS
Region Nationwide (all provinces and territories) with emphasis onurban / metropolitan areas, and adapted strategies for allgeographical groups
Area size 5000-19,999 to 4,000,000+Density Urban, suburbanClimate All (East, West)
Age 10-29 years old (teenagers, studying age and young adults)Gender Male and FemaleIncome All under $30,000Occupatio
nStudents; new graduated; new workers; young professionals
Education Elementary 4
th
grade, High school, CEGEP and UniversityRace All: Asian, Black, White, Native; other; with adapted strategyfor Asian consumers already familiar with Bubble Tea
Home
ownershipRenting apartment/condo, living with parents(Highly discretionary in personal spending)
Personality Brand conscious, anchored in popular culture, inclined fordifferentiation and sophistication, very tolerant towardsmulticulturalism and internationalism (open-minded), quickmaturation with modern products
Lifestyle Most of them dependent on parents, no major responsibilities,highly influenced by peer groups, active life, importance ofschool, work and social life
Benefits COMMUNICATION BENEFITS
-Nutritional information-Informational text on history of productFUNCTIONAL BENEFITS
-Healthier than soft drinks-Convenient, easy to take outPERCEPTUAL BENEFITS
-Quality/Premium price-Social standing/good-looking
Usage rate Seasonal (peak in summer), daily-basis, weekly basisUser status Non-user, regular user (current user through existing bar-shops)
Loyaltystatus
None, medium, strong
5
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
10/26
Positioning strategy: The only RTD bottled bubble tea available. Funky & eye-catching
bottle, functional packaging, premium-priced, cool, new and unusual, unique drinking
experience, aspects of play (tapioca pearls, oversized colored straw), variety of flavors,
sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks.
High Price
Non Flavor
Flavor
Low price
6
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
11/26
CUSTOMER ANALYSIS
Profile :
Name: mamunDate of Birth: 25.03.85Age: 20
Occupation: University StudentCountry: BangladeshNeeds: Healthy lifestyle/Social belongingPeople: Roommate/Friends/FamilyPlaces: Clubs/Coffee shops/University/GymActivities: Basketball Team
Due to his active and quick-paced life, mamun wakes up at 6:30AM every morning.
Today, he puts on his trendyLacoste Polo andDieselJeans, and of course, he always has
hisPuma shoes on. After having called his friends with his new Samsungcamera phone,
he leaves his apartment and goes to his gym by metro, while listening to his favourite
music that he downloaded to his iPod. Mamun usually likes to work out before he has to
head to University. That way, he feels he has more energy and feels ready to confront his
busy day attending courses and getting things done. On his way to school, Mamun knows
he is thirsty and he feels the need for something very refreshing. He stops at a
convenience store next to the gym. Standing in front of all the choices in the beverages
aisle, one particular bottle catches his sight. And he instantly recognizes the brand. He
knows that this is a bottle of Bubble Buzz, because not only does his other friends often
drink it, but he also heard them talk about this brand new product that Namingo just
launched. He also previously saw Bubble Buzz ads when he surfed on his favourite
websites. He grabs a bottle, and takes a closer look at the nutritive information label. He
is very pleased to see that the new drink is more nutritive and definitely healthier than the
7
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
12/26
other soft drinks that were available on the shelves next to it. The higher price of
product doesnt bother him, since he perceives Bubble Buzz as a high-quality,
functional product, which is manufactured by a well renowned company. Plus, he did not
feel like simply buying bottled water, or carbonated soft drinks. Because of his
inclination towards more sophisticated tastes, and because he likes to try new products on
his own, he thinks this bottle is worth the price. Because of his busy schedule, Mamun
prefers to save time as much as he can. Thus, he decides to buy two bottles. One to
quench his immediate thirst, and another one that he wants to save for later in the day. He
sees that the packaging is so convenient and easy to carry, and so when he exits the store,
he puts the second bottle in his backpack. He attends all of his classes. During his break,
he always hangs out with his friends. A lot of them are drinking from different Bubble
Buzz flavours. He opens his second bottle, since he had such a great experience with the
first one. He liked that the beverage was so unusual, yet refreshing. The drink surpassed
many of his expectations. He has no doubt about it. Mamun will continue to buy Bubble
Buzz for its good taste, and also because at his age, he sees it is the coolest trend right n
PRODUCT STRATEGY
The core
o Bubble Tea beverage in a pre-bottled, ready-to-drink format.
The actual product
o Packaging and labeling: see figure below
o Branding: colorful, aspect of play, round shaped, prominent Bubble Buzz logo written in
modern font, catchphrases such as Think outside the Bubble and Get Your Buzz
o 8
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
13/26
o
o Trade name: Bubble Buzz, a Namingopro
o Brand personality: energy, funky, cool, functional, original, funny, healthy, etc
Augmented product
o Nutritional information, Status (social drink), Features promoting the website, Health
benefit of a green tea base (ref.17)
Marketing considerations
o Product life cycle: Bubble Buzz is a low-learning product. With a strong marketing
campaign, sales [will] begin immediately and the benefits of the purchase are readily
understood (ref.11, p.301). Since Bubble Buzz is prone to product imitation, Naming
strategy is to broaden distribution quickly, which is currently feasible thanks to the
companys high manufacturing capacity.
o Product class: Food & beverage Soft Drinks Functional Drinks (refer to
Appendix D2 for a break-down of the functional drinks market).
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
14/26
PRICE STRATEGY
The price strategy that will be undertaken should consider the following aspects:
1. Consumer demand
2. The product lifecycle3. Potential substitutes
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
15/26
Customer demand
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, Naming 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
(notably by advertising) and value
(benefits) .
The product lifecycle
The company should take advantage also to the fact
that the newer the product and the earlier in its lifecycle the higher the price can usually
be. It ensures a high profit margin as the early adopters buy the product and the firm
seeks to recoup development costs quickly and it also brings a certain prestige to the
product.
10
Potential substitutes
Naming is constrained by the monopolistic market in which it competes. The main
characteristic however is product differentiation.
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
16/26
PROMOTION STRATEGY
Objectives:
To initiate strong awareness about the launch of Bubble Buzz throughout
Generation Y (10-29 years old) consumers as well as their parents.
To win market shares over our top functional drinks competitor, PepsiCo.
Message:
The promotional outputs will convey the clear message that Bubble Buzz is a healthy
drink for sporty and young people who simply enjoy taking care of their body and life.
Concepts:
Think outside the bubble: Be Bold, Be Original, Be Different, Be Yourself.
A good spirit in a good body.
For the out-of-the-ordinary individuals who like to challenge themselves.
Media selection:
Before choosing the appropriate medias, it is important to note that Generation Y consumers
only give partial attention to media. However, they can be reached through integrated
programs. They are typically using more than one communication media at a time; a
behaviour that is often called multitasking. This group of consumers doesnt give its full
attention to one single message, but rather uses continuous partial attention to scan the media.
Marketers can still communicate with Generation Y by using a variety of targeted
promotional tools. Another important tactic to reach our target market is through Viral or
Buzz marketing, which Naming will heavily use in this campaign (campus, contests).
11
Advertising:
Output Examples
Television Btv. Channel i. ntv
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
17/26
Radio 89.6,88.0 Universities
Magazines For girls: Cosmo, ElleFor boys: Sports Illustrated (or Kids edition)
Internet Banners on select websites (gaming, sports, etc.)Official promotional website: www.BubbleBuzz.ca
Outdoors Billboards and prints in select areas including: Campuses, transportation (bus, metro, stations)
Tourist areas in high seasonal periods
Outskirts of key cities in geographical reach
Others Not relevant
Personalselling
Direct contact with retailers, sales kit strategies to beexplained later in the text.
Publicrelations
Stands or special displays and events in schools, malls,sports events (i.e. 2008 Beijing Summer OlympicGames), sponsorship activities
Publicity Conferences, press releases (print and online), buzz
marketing through TV coverage
Promotional Mix:Consumer oriented:
Contests: Win another Bubble Buzz flavour, Uncover a secret code underneath
the bottle cap and win sporting goods and electronics by logging on the website, Win a
trip for the 2012 2020 cricket worldcup (Arguments: It will increase consumer purchases
and encourage consumer involvement with the product).
Samples: distributed in supermarkets, school/universities. Samples are a way to avoid
product resistance since people are not used to find bubbles in their drinks. Arguments: It
will encourage new product purchases and it represents low risk for consumers since they
get it for free. They have nothing to loose by trying it.
Point-of-purchase: in supermarkets (to reach the parents of generation Y).
Arguments: It is also a mean to increase product trial and provides a good product
visibility.
Allowances and discounts: case allowance (Arguments: The free goods approach
will be used so it can encourage retailers to buy more of the product to get a certainamount for free).
12
Cooperative advertising: to encourage retailers to buy our product and to maintain
our high level of advertisement that consumers expect from namingo
Other considerations:
http://www.bubblebuzz.ca/http://www.bubblebuzz.ca/7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
18/26
Scheduling of the advertising: Pulse scheduling (promotional presence year-round,
but emphasized and intensified before and during summer).
IMC (integrated marketing communication)
Target Audience:
Intermediary: personal selling will be more often used
Ultimate consumer: Naming will use more of mass media because the amount of
potential buyers is large.
PLACE (DISTRIBUTION STRATEGY)
Bubble Buzz will be distributed through these channels: supermarkets, convenience
stores, independent food stores, discount stores, multiple grocers, vending machines,
direct sales.
Strong existing distribution channels
Naming has operations worldwide and is well established in its distribution channels (such as
store retailers or vending machines). Therefore, a new product launch can typically rely on the
existing distribution system in order to reach the majority of its target market while requiring no
major supply / delivery developments.
WEAKNESSES
Relying upon line extensions
Naming is relying on brand extensions increase sales in specific lines, particularly its long-time
carbonated soft drink products (i.e. the introduction of Vanilla helped maintain sales for the core
Cola beverages). However, there is a strong risk of cannibalizing existing sales in the long term
(for example, Bubble Tea might deter on sales for iced tea).
Reliant upon particular carbonated drinks
The long-time presence of Namingo beverage has established this particular line as a flagship
13
product. While the core tea products bring a solid base of sales and loyalty to the company,
consumers expectations also become more and more anchored and single-lined, taking away
freedom in the areas of line diversification and product modifications (taste, packaging, price).
Brand dilution
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
19/26
The tremendous amount of existing brands and new product being introduced by the company
could diminish the value and differentiating strength of each product that is being manufactured.
Entrance into difficult non-core categories
The Namingo Company is a truly global multinational business giant. While some categories of
products are distributed in many areas of the globe (Coke, PowerAde, etc.), geographical needs
already require that these global brands are heavily adapted to their target region. Furthermore,
many smaller and diversified product lines are more or less popular in one particular region over
another. Therefore, the process of diversifying the production and marketing each product
involves costly investments. These capital requirements typically increase as the product becomes
heavily focused (for example, since the Namingo brand is highly recognizable worldwide,
marketing a bottle of Coke in Japan would be less difficult than marketing a bottle of Qoo in
that same country Qoo being a lesser-known non-carbonated drink which was one of Naming
newest brand introduction in 1999).
Saturation of carbonated soft drink segment
Due to the countless number of brands available on the market, it becomes increasingly difficult
in the soft drinks segment to innovate and create new products that genuinely stand out from their
competition. And as we have seen, an analysis of the industry has shown that growth in the soft
drinks market becomes difficult and challenging when the conditions and consumer trends cause
a market demand that stays stagnant.
OPPORTUNITIES
New product introductions
The functional drinks market is one that particularly allows more innovation opportunities and
gives greater freedom for creativity in the design, production, manufacturing, distribution,
promotion and retailing choices and processes.
Brand is attractive to global partners
Because of the companys size (including value, brand name and operating revenues) and wide
portfolio base, Naming enjoys a strong purchasing power over its suppliers, and also attracts large14
partnerships with various levels of consumer reach (e.g. Burger King, movie studio promotions,
sponsorship agreements, etc.). Existing brand awareness also provides an international playing
field for powerful marketing strategies.
THREATS
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
20/26
Strong competition
Naming is competing in a global market that is characterized by an oligopoly between several
(but few in numbers) competitors. The fight for market shares and sales in crowded markets
becomes a complex one.
Potential health issues
The current trend of consumer and consumers groups awareness towards goods and services is
both beneficial and threatening for companies in the food and beverages industry. Over the last
few years, concerns over health issues have risen in the media through an expanded and ever-
growing network of knowledge outputs (journals, TV channels, internet and so on). The move
of the younger generation towards a healthier lifestyle call for careful planning and decision-
making in new product developments. Large companies can also easily become the target of
consumers apprehension.
Free trade
In an era of globalization, large international competitors can come out with comparative
advantages (the constant fight to remain the first mover and market leader in a long-term
spectrum). Issues arise when dealing with price competition and economic growth. Trade
organizations are also faced with public pressure which can disrupt operations in one or more
areas of the company.
D3. Functional Drinks Sales by Distribution Format (2011)Distribution Channel % Sales
Supermarkets/hypermarkets 30.8
Independent food stores 2.8
Convenience stores 1.5
Discounters 5.9
Direct sales 0
Vending 0.1
Others 58.9
Total 100
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
21/26
15
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
22/26
Pricing strategy (Other constraints)
The first possible constraint would be the regulations on pricing. Another constraint
would be that Naming must not set a price that is too high because competitors
will be attracted by potential profits and will follow by a lower price. After
having taken all the important factors into consideration, two price-level fixing
approaches seem appropriate.
1. Profit-oriented approach: Target profit
One of the central objectives of this project being to become the market leader in
functional drinks, Naming is willing to stay among the top competitors, if not becoming
the greater, by achieving a certain target profit. This could be obtained by establish a
price that will largely cover variable and fixed costs while bringing tremendous profits.
2. Competition-approach: Above market
Competitors and potential substitutes prices can also be part of the strategy. Having a
higher price could make customers aware of the additional benefits and the higher quality
of Bubble Buzz.
16
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
23/26
Jastification for advertising selection:
-TV: channels for teenagers and for young adults: channel i, btv,rtvArguments: TV communicates with sight, sound and motion, which is needed for BubbleBuzz. It is the only media that can reach 99% of the homes in Bangladesh. Naming hasthe budget to cover the high costs of this media.
-Radio:94.7 FM, 96.9 FMUniversity Radios (radio today, radio foorti.)Arguments: Radio is an already segmented medium. There are over 900 radio stations inBangladesh. The average University or college student is a surprisingly heavy radio
listener and spends more time during the day listening to radio than watching networktelevision (book p.502) We could also use of Interactive radio as Pepsi has alreadydone in the past. (p.503)-Magazines: We should take advantage of the fact that magazines have become a veryspecialized medium. There are about 500 consumers magazines in Bangladesh. Goodcolor production is also an advantage that create strong images which is the purpose ofNaming with its Bubble Buzz brand. Each magazines readers often represent a uniqueprofile.
Reaching:-Young girls: COSMO-Young women: ELLE-Young boys: Sports Illustrated for kids-Young men: Sports Illustrated
-Internet: Online advertising is similar to print advertising in that it offers a visualmessage. It also has additional advantages , it can also use the audio and videocapabilities. As we are targeting our ads to young outgoing people, sound and movementmay attract more attention from viewers and has the unique feature of being interactive.Interactive media would offer Naming the opportunity to reach younger consumers whohave developed a preference for online communication. Official Website(www.bubblebuzz.ca)
-Outdoor: Billboards in specific geographical area would allow us get a good reach andfrequency. It is a low cost and flexible alternative. (Campus, malls, Bus and metrostations)
17
http://www.bubblebuzz.ca/http://www.bubblebuzz.ca/7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
24/26
Based on the aforementioned analysis, Bubble Buzz appears to be a profitable and
innovative product with a strong outlook for market share presence and segment growth
opportunity. Upon implementation of the marketing plan, the Namingo Company will
regain increased market shares and claim its targeted situational position of market leader
in the functional drinks segment as well as keeping its long-standing consumer
recognition for innovative and successful product launches in diversified markets.
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
25/26
18
7/29/2019 Marketing Plan for a New Brand of Any Product Category(1)
26/26
REFERENCES
1. New Age Beverages in Hong Kong . Data monitor. May 2004. Accessed Feb 05,
2006.
2. Mamuna Tea Direct Mamuna Tea Direct LLC. http://www.mamunateadirect.com.
Date N/A. Accessed Feb 06, 2006.
3. PREVILLE,Philip.BubbleTea.
http://www.geocities.com/hello_tai_tai/bubbletea.html. Accessed Feb 02, 2006.
4. KING, Paul. Will bubble tea burst out across country or go bust?. Nations
Restaurant News. P.24. May 31, 2004. Accessed via Business Source Premier.
Feb 08, 2006.
19