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Pre Call Report for Coca Cola to Moxie’s Presented to: Charles Boulianne Course: Personal Selling (Wednesdays) Date: November 14 th , 2012 Group Members Crisp, Shannon Tan, Audrey

Pre CallReport for Coca Cola to!! Moxie’s · Coca"Cola! to!! Moxie’s!!!!! ... advantage.!Itpointed!its!marketing!direction!towards!well"known ... juice/juice!drinks,!softdrinks,!sports!drink,!tea

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Page 1: Pre CallReport for Coca Cola to!! Moxie’s · Coca"Cola! to!! Moxie’s!!!!! ... advantage.!Itpointed!its!marketing!direction!towards!well"known ... juice/juice!drinks,!softdrinks,!sports!drink,!tea

 

 

       

   

Pre-­‐Call  Report  for  Coca-­‐Cola    

to    Moxie’s    

                     Presented  to:   Charles  Boulianne  Course:   Personal  Selling  (Wednesdays)  Date:   November  14th,  2012        

 

 

 Group  Members  Crisp,  Shannon  Tan,  Audrey      

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TABLE  OF  CONTENTS  

1   Memo  to  Sales  Manager  .......................................................................................................................  3  2   Macro  Environment  and  Trends  ...........................................................................................................  4  

2.1   Demographic  Factors  .....................................................................................................................  4  2.2   Environmental  Factors  ...................................................................................................................  5  2.3   Competitive  Factors  .......................................................................................................................  5  2.4   Regulatory  Factors  .........................................................................................................................  6  2.5   Economic  Factors  ...........................................................................................................................  6  2.6   Technological  Factors  .....................................................................................................................  6  2.7   Social  Factors  .................................................................................................................................  7  2.8   Current  Trends  ...............................................................................................................................  8  

3   Company  Background  ...........................................................................................................................  9  3.1   Company  Information  ....................................................................................................................  9  3.2   Reputation  &  Image  .....................................................................................................................  10  3.3   Company  Polices,  Practices,  and  Procedures  ...............................................................................  10  

4   Products  and  Services  .........................................................................................................................  12  4.1   Products/Services  Offered  ...........................................................................................................  12  4.2   Features/Advantages/Benefits  ....................................................................................................  12  4.3   Supporting  Evidence  ....................................................................................................................  13  

5   Competition  ........................................................................................................................................  14  5.1   List  of  Competitors  .......................................................................................................................  14  5.2   Competitive  Comparison  .............................................................................................................  14  

6   Customer  Information  .........................................................................................................................  15  6.1   Customer  Profile  ..........................................................................................................................  15  6.2   Customer  Needs  ...........................................................................................................................  15  6.3   Decision-­‐Making  ...........................................................................................................................  15  

7   Objectives  and  Presentation  Plan  .......................................................................................................  16  7.1   Objective  ......................................................................................................................................  16  7.2   Value  Proposition  .........................................................................................................................  16  7.3   Presentation  Plan  .........................................................................................................................  17  

8   References  ..........................................................................................................................................  21  

   

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1 MEMO  TO  SALES  MANAGER  

   

MEMORANDUM      

DATE:     November  14,  2012    TO:       Charles  Boullianne,  Professor,  Personal  Selling    FROM:      Shannon  Crisp  and  Audrey  Tan    SUBJECT:    NOS  Energy  Drink  in  Moxies  Classic  Grill  Restaurants      Moxies  Classic  Grill  can  increase  sales  and  maintain  the  energetic  atmosphere  of  the  restaurants  with  NOS  Energy  drinks  on  their  menu.    Their  current  product  is  deficient  in  certain  aspects  that  are  necessary  to  improve  sales  and  profits  in  a  restaurant.  There  is  an  Increase  in  food  costs  with  the  inability  to  reseal  an  open  can,  causing  waste  for  drink  recipes  that  don’t  require  the  whole  can.  The  lack  of  variety  in  flavors  also  causes  a  problem  for  those  consumers  who  describe  the  taste  as  medicinal.  Please  keep  in  mind  the  following  benefits  that  can  be  expected  from  our  product:    

1. Re-­‐sealable  packaging  in  different  sizes.  

2. Different  flavors  for  a  variety  of  drink  recipe  options  

3. Coca  Cola  brand  loyalty,  discount  in  purchase  order  

 Taking  advantage  of  these  benefits  will  save  money  and  allow  improvement  to  the  drink  menu  and  profits.  Contact  us  if  you  have  any  product  requests  or  inquires.              

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2 MACRO  ENVIRONMENT  AND  TRENDS  

2.1 DEMOGRAPHIC  FACTORS  

 Targeted  Ontario  Age  Groups  (Population):14  

 15  to  24  years   1,716,540  25  to  34  years   1,615,485  35  to  44  years   1,768,410  45  to  54  years   2,062,015  

 Demographic      Age   Ages  18+  Gender   Male,  female  Family  life  cycle   Young  single,  young  married,  with  children,  

without  children,  adult  married,  adult  single  Family  size   Single,  couple  Education   High  school  graduate,  college/university  

graduate  Occupation   Student,  professional  employed,  unemployed  Religion   Protestant,  Catholic,  Jewish,  others.  Income   Under  $10,000;  $10,000+  Ethnic  background   White;  Black;  Asian;  British;  French;  Chinese;  

German;  etc.        

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2.2 ENVIRONMENTAL  FACTORS  

 The temperature trend graph below shows that winter temperatures have been at or above normal since 1997. The red dashed linear trend line indicates winter temperatures have warmed over the last 65 years by 3.2°C.5

 

2.3 COMPETITIVE  FACTORS  

 Name  Brand  Ties:  

Having  the  energy  drink  NOS  named  after  Nitrous  Oxide  (a  chemical  additive  used  to  boost  cars  during  races),  it  concentrated  its  brand  positioning  within  the  racing  world  to  gain  strategic  advantage.  It  pointed  its  marketing  direction  towards  well-­‐known  racers  such  as  Chris  Forsberg  and  Ricky  Stenhouse  JR.  to  advertise  their  product.  9  

 Positioning  within  the  X  and  Y  Generations:  The  image  NOS  wanted  to  portray  was  that  it  has  a  “no  nonsense  high-­‐performance”  image  and  recently  signed  GSP  (Georges  St-­‐Pierre),  a  worldwide  known  UFC  (Ultimate  Fighting  Championship)  Canadian  fighter  in  October  2012.  He  is  to  be  their  first  sport  sponsor  and  

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spokesperson  because  he  has  was  the  perfect  fit  to  play  that  role  considering  his  performance  is  based  on  focusing  on  mental  focus  and  high  performance  energy.  Considering  that  UFC  is  the  largest  mixed  martial  arts  company  in  the  world  that  essentially  targets  anyone  within  ages  17-­‐35,  Coca-­‐Cola  positioned  NOS  within  the  right  segment.8  

 

2.4 REGULATORY  FACTORS  

 There  is  a  continuous  debate  whether  or  not  to  ban  alcoholic  and  non-­‐alcoholic  energy  

drinks  in  Canada,  there  is  no  timeline  on  this  debate.  Canada  has  allowed  these  caffeinated  alcoholic  energy  drinks  to  be  sold  in  liquor  stores  if  the  caffeine  in  them  is  derived  from  a  natural  source,  like  guarana  or  yerba  mate.2  

   

2.5 ECONOMIC  FACTORS  

 Canadian  Dollar  vs.  US  Dollar  (using  the  month  of  October  for  consistency)  15  

 

October  2010   October  2011   October  2012  

0.9602   0.9638   1.0219  

 Average  Income  After  Tax  By  Economic  Family  Types13  

 

  2009   2012  

Economic  Families    (two  people  or  more)  

76,400   76,600  

Unattached  Individuals   31,900   32,100  

 

2.6 TECHNOLOGICAL  FACTORS  

 Technology  Trends  in  Restaurants  1.  Digital  Signage  is  an  electronic  display  for  various  media,  including  TV,  graphic  displays  and  different  types  of  information  within  a  closed  environment.  It’s  effective  in  many  venues,  including  restaurants.  Despite  the  upfront  expense,  leveraging  this  technology  properly  can  increase  sales,  brand  awareness  and  overall  customer  satisfaction.    

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 2.  Social  Media  including  Facebook,  Twitter,  and  YouTube  open  up  numerous  ways  to  engage  your  guests  while  promoting  your  brand,  at  a  fraction  of  the  cost  of  traditional  advertising.  In  a  recent  survey  by  Market  Force,  86%  of  consumers  said  they  had  ‘liked’  a  restaurant  chain  in  the  past  90  days.  According  to  a  recent  NRA  survey,  28%  of  guests  are  already  using  Facebook  to  choose  a  restaurant  today.    Little  surprise  that  in  that  same  survey,  95%  of  restaurant  operators  said  they  would  be  on  Facebook  within  the  next  two  years.      3.  Online  Ordering;  restaurants  are  seeing  a  sizable  percentage  of  delivery  and  carryout  orders  coming  from  online  ordering  sites.  Now  there  is  the  introduction  of  a  convenient  web-­‐marketing  dashboard  that  drives  orders  to  the  POS  from  more  digital  and  social  channels.                                4.  Become  a  Hotspot  with  free  WiFi,  restaurants  have  been  slower  to  jump  on  this  trend.  Today,  wireless  Internet  access  plays  a  significant  role  in  guest  satisfaction  and  retention.  WiFi  access  can  attract  new  guests  and  generate  more  revenue.  Recent  studies  have  shown  that  restaurants-­‐turned-­‐hotspots  have  experienced  a  boost  in  sales  of  as  much  as  8%.      5.  Mobile  Apps  are  driving  business  to  restaurants  in  every  area.  According  to  the  NRA,  3  in  10  consumers  have  viewed  or  posted  reviews  on  Yelp,  UrbanSpoon,  or  similar  sites.  Even  if  you’re  not  crazy  about  their  sales  methods,  you  can’t  afford  to  ignore  them  completely.11  

 

2.7 SOCIAL  FACTORS  

 Ontario’s  Growing  Population  (with  immigration  values  included):  2011             2012  Q3   Q4   Q1   Q2   Q3  13,366,294   13,415,805   13,438,807   13,464,470   13,505,900    Due  to  the  aging  population,  food  manufacturers,  producers  and  retailers  will  have  to  review  issues  such  as  how  food  is  marketed  to  this  population,  how  it's  delivered,  how  easy  food  labels  are  to  read,  how  easy  nutritious  foods  are  to  prepare,  and  if  there  is  a  way  to  supply  pureed  foods,  for  instance,  with  more  nutritional  value.1  

 Convenience  Trends  Convenience  products  are  becoming  more  popular  for  time-­‐starved  consumers.  Canadian  consumers  expect  to  be  provided  with  easy  yet  healthy  meal.  Convenient  products  will  be  on  the  rise  as  the  cost  of  a  meal  becomes  less  important  in  shopper  decision  making,  as  reported  in  the  recent  9th  annual  edition  of  "NPD  Eating  Patterns  in  Canada"  report. "Today's  consumers  are  time  strapped  and  it  is  not  surprising  that  convenience  products  and  services  are  at  an  all-­‐time  premium.  Independent  grocers  are  at  the  forefront  of  customizing  

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their  offerings  to  meet  this  growing  trend,"  says  John  Scott,  president  and  CEO  of  the  Canadian  Federation  of  Independent  Grocers.12  

2.8 CURRENT  TRENDS  

Energy Drinks and Sports Drinks

In 2011, retail sales of sports and energy drinks grew by 8% (value) and 4% (volume), reaching just over 194 million litres valued at $827 million. The Increase in demand for a quick and convenient source of energy, particularly among younger consumers, as well as recent innovation in branding of sports drinks fuelled overall category growth.6

Unusual Locations

The price and availability of prime real estate is forcing many restaurant owners in the quick and table service industry to relocate outside of traditional venues such as downtown or in tourist areas. Quick service restaurants are opening in locations such as airports, campuses, and office buildings. Table-service restaurants are opening off main streets and intersections and choosing to move to developing neighborhoods. While traffic may be slower in these locations, owners are able to focus on developing the brand while saving on rent as well as seeing a reduction in competition.7 Healthier, Local and Environmentally Friendly Choices

Government regulation and consumer trends are behind the move in the industry towards healthy eating. Since this trend has emerged, changes have progressed to include eliminating trans fats, artificial colors, excessive salt and anything unnatural out of ingredient lists for both quick service and table service restaurants. Restaurant owners are also choosing to use local and ethically sourced foods in menu items, favoring ingredients that are certified organic. In addition, restaurants are providing its guests with biodegradable and recyclable products as part of the dining experience7

 

   

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3 COMPANY  BACKGROUND  

3.1 COMPANY  INFORMATION  

 Within  126  years  in  the  business,  Coca-­‐Cola  has  over  146,200  employees  worldwide  with  3,500+  kinds  of  beverages  enjoyed  in  over  200  countries.  It  is  the  most  popular  and  biggest-­‐selling  soft  drink  in  history,  as  well  as  the  best-­‐known  product  in  the  world.  4  

 Within  the  market,  Coca-­‐Cola  owns  or  license  and  market  more  than  500  non-­‐alcoholic  beverage  brands  (primarily  beverages)  but  not  limited  to  others  such  as  energy  drinks,  juice/juice  drinks,  soft  drinks,  sports  drink,  tea  &  coffee  and  water.  They  own  and  market  4  of  the  world’s  top  5  non-­‐alcoholic  sparkling  beverage  brands:  Coca-­‐Cola,  Diet  Coke,  Fanta  and  Sprite.4  

 Mission  statement:    “To  refresh  the  world...  To  inspire  moments  of  optimism  and  happiness...  To  create  value  and  make  a  difference.”4  

 With  that,  Coca-­‐Cola  strives  on  creating  great  rapport  with  their  customers,  whether  they  are  current  and  ongoing  customers  or  new  potential  prospects.    Coca-­‐Cola’s  Financial  Data:4  

 Year  Ended  December  31  

2011   2010   2009   2008  

Summary  of  Operations  (In  Millions)  

       

Net  Operating  Revenues  

$46,542   $35,119   $30,990   $31,944  

Operating  Income  

$10,154   $8,449   $8,231   $8,446  

Net  Income  to  Shareowners  of  The  Coca-­‐Cola  Company  

$8,572   $11,809   $6,824   $5,807  

Per  Share  Data          Basic  Net  Income   $3.75   $5.12   $2.95   $2.51  

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Diluted  Net  Income  

$3.69   $5.06   $2.93   $2.49  

Cash  Dividends   $1.88   $1.76   $1.64   $1.52  Balance  Data  Sheet  (In  Millions)  

       

Total  Assets   $79,974   $72,921   $48,671   $40,519  Long-­‐Term  Debt   $13,656   $14,041   $5,059   $2,781    

3.2 REPUTATION  &  IMAGE  

 Coca-­‐Cola  Company  is  the  world’s  largest  beverage  company  and  its  reputation  and  

brand  is  known  all  throughout  different  areas  of  the  world.  Considering  that  Coca-­‐Cola  is  respected  in  over  200  countries  worldwide  and  is  the  most  popular  and  biggest-­‐selling  soft  drink  in  history,  they  are  committed  to  local  markets,  paying  attention  to  what  people  from  different  cultures  and  backgrounds  like  to  drink,  and  where  and  how  they  want  to  drink  it.  They  adapt  to  the  cultures’  trends  and  create  something  accordingly.    

3.3 COMPANY  POLICES,  PRACTICES,  AND  PROCEDURES    

 Pricing  &  Discount  Policies:  Coca-­‐Cola’s  pricing  varies  within  companies  and  re-­‐sellers.  Whether  the  company  is  a  small  or  large  business,  they  will  have  a  designated  monthly  quota  to  reach  in  order  to  acquire  Coca-­‐Cola’s  discounted  price  and  amenities.      Terms  of  Sale  &  Delivery  Terms:  Coca-­‐Cola  will  have  a  set  contract  with  the  business  in  terms  of  discounted  prices,  monthly  quotas  to  reach  and  available  delivery  times  and  days  for  the  area.  Once  that  agreement  has  been  reached,  delivery  intervals  per  month  can  be  altered  at  any  time  as  long  as  that  quota  is  reached.      Procedure:  The  sales  representatives  will  call  in  once  a  month  to  place  the  company’s  order  and  will  have  the  business’  “regular  items”  populated  on  file.  The  reps  will  then  inform  the  customer  of  any  new  products  or  other  products  to  try  in  order  to  keep  the  customer  in  the  loop  for  anything  new  or  different.    Once  the  order  has  been  placed,  it  will  then  prompt  the  delivery  day  of  the  week  as  per  agreement.  The  customer  can  then  choose  to  alter  it  at  that  time  to  prepare  for  the  delivery.      

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Customer  Support  and  Assistance:  Customer  support  and  assistance  is  available  24  hours  a  day,  7  days  a  week  for  any  inquiries.  The  individual  sales  rep  that  is  dedicated  to  taking  care  of  the  specific  business  is  available  according  to  their  individual  availability  (usually  at  any  time  of  the  day  in  order  to  ensure  clients’  strong  relationship  with  Coca-­‐Cola).      

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4 PRODUCTS  AND  SERVICES    

4.1 PRODUCTS/SERVICES  OFFERED  

   Coca-­‐Cola  has  over  3,500  products  worldwide.  Its  main  categories  of  products  are  Energy  Drinks,  Juices/Juice  drinks,  Soft  Drinks,  Sport  Drinks,  Tea  and  Coffee,  and  Water.  Under  that  product  list  width  comes  with  an  extensive  product  list  depth  with  subcategories  of  flavours  within  brands:4  

 Energy  Drinks   Full  Throttle,  Burn,  NOS,  etc.  Juices/Juice  Drinks   Minute  Maid,  Simply,  Fuze,  etc.    Soft  Drinks   Fanta,  Diet  Coke,  Coke,  Sprite,  etc.  Sport  Drinks   Fuze,  Powerade,  Glaceau  Vitamin  Water,  etc.  Tea  and  Coffee   Illy,  Georgia,  Honest  Tea,  Far  Coast,  etc.  Water   Dasani,  Malvern  Water,  Spring!  By  Dannon,  

etc.    Asides  from  distribution  of  its  goods,  Coca-­‐Cola  has  also  extended  its  services  into  vending  services  where  they  would  place  Coca-­‐Cola  vending  machines  within  business  locations  and  re-­‐fill  and  service  them  accordingly.  In  addition,  they  also  offer  rentals  on  their  machines  and  provide  24-­‐hour  technical  services  in  case  of  support  maintenance.    

4.2 FEATURES/ADVANTAGES/BENEFITS  

 Features   Advantage   Benefits  

-­‐  Comes  in  different  flavors  (NOS  Sugar  Free,  NOS  Fruit  Punch,  NOS  Grape,  NOS  Powershot,  NOS  Loaded  Cherry,  NOS  Charged  Citrus)    -­‐  Delicious  and  smooth          -­‐  Comes  in  different  sizes  

-­‐  More  choices  within  the  product  line  to  for  drink  mixes          -­‐  Minimal  after-­‐burn  compared  to  competing  products      -­‐  You  have  options  unlike  the  

-­‐  Ability  to  produce  more  variety  in  drinks,  enabling  the  easy  expansion  of  drink  menu  keeping  customers  happy  (more  selections!)    -­‐  Customers  won’t  feel  uneasy  (Increase  Sales,  profits,  customer  satisfaction  -­‐-­‐  less  complaints)    -­‐  Convenience  for  easy  

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               -­‐  Buy  100  cases  

other  brands  -­‐-­‐  2  sizes  (re-­‐sealable  bottle  and  can)              -­‐  Reduces  out-­‐of-­‐stocks  

storage  within  the  bar  and  ability  to  reseal  product  means  less  waste  in  product  disposal,  and  easy  serving  to  customers  to  easily  take  it  home  (less  money  used  for  a  to-­‐go  cup)    -­‐  Customer’s  past  sales  and  personal  guarantee  

 

4.3 SUPPORTING  EVIDENCE  

 Testimonial    “In  my  line  of  business  within  the  vending  world,  it’s  important  to  keep  up  with  the  trends  when  it  comes  to  snacks  and  beverages.  The  first  time  I  tried  to  place  the  energy  drink  NOS  into  my  vending  machine,  my  customers  loved  it  because  of  its  re-­‐sealable  convenience.  It  was  easy  for  me  to  provide  them  with  different  flavours  because  of  the  wide  variety  NOS  has  to  offer.  I  would  recommend  this  product  to  anyone!”  Manuel  Tan  Owner  of  A-­‐One  Services  Vending    Statistics    According  to  Energy  fiend  at  www.energyfiend.com,  NOS  makes  it  into  the  top  5  energy  drink  brands  when  looking  at  its  dollar  sales  in  2012  and  continues  to  rise  up  on  the  charts  when  comparing  the  top  8  sales  in  2011.3  

 

 

Energy  Drink  Top  8  

Based  on  Dollar  Sales  2012  

Red  Bull   $2.95  Billion  Monster   $2.6  Billion  Rockstar   $.78  Billion  Amp   $.30  Billion  NOS   $.25  Billion  Full  Throttle   $.14  Billion  Xyience  Xenergy     $.04  Billion  VPX  Redline   $.02  Billion  

Energy  Drink  Top  8  

Based  on  Dollar  Sales  2011  

Red  Bull   $2.3  Billion  Monster   $1.9  Billion  Rockstar   $.66  Billion  Amp   $.33  Billion  Doubleshot   $.25  Billion  NOS   $.22  Billion  Full  Throttle     $.13  Billion  Xyience  Xenergy   $.03  Billion  

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5 COMPETITION  

5.1 LIST  OF  COMPETITORS  

The  2  main  competitors  are  Red  Bull  and  Pepsi  Co,’s  AMP  Boost  Energy    

5.2 COMPETITIVE  COMPARISON  

    NOS  Energy  Drink   Red  Bull   Pepsi  Co.’s  AMP    

Boost  Energy  Feature:  Different  Flavors  Advantage:  More  options  Benefits:  Cheaper  option  when  making  drinks  

Comes  in  6  different  flavors:  NOS  Sugar  Free,  NOS  Fruit  Punch,  NOS  Grape,  NOS  Powershot,  NOS  Loaded  Cherry  and  NOS  Charged  Citrus  

Comes  in  only  1  flavor   Comes  in  Cherry,  Grape,  Original  

Feature:  Delicious  and  smooth  Advantage:  Minimal  after-­‐burn  Benefit:  Happier  customers  =  increased  sales  

Yes,  it’s  both  delicious  and  smooth  as  it  comes  with  minimal  after-­‐burn  

It’s  delicious  but  harsh  when  going  down    

It’s  delicious  but  harsh  when  going  down  

Feature:  Different  packaging  options  Advantage:  Options  in  sizes,  one  of  them  re-­‐sealable  Benefit:  Less  cost,  less  un-­‐used  product  wasted,  easy  take-­‐home  bottle  

Comes  with  2  sizes:  -­‐ 650mL  re-­‐

sealable  bottle  -­‐ 473mL  tall  can    

Comes  in  a  250mL  can   Comes  in  a  473mL  tall  can  

Feature:  100  Cases  Advantage:  Reduces  out-­‐of-­‐stocks  at  less  cost  Benefit:  Past  sales  and  personal  guarantee  for  cheap  

Have  the  ability  to  offer  cheaper  prices  when  ordering  in  bulk  and  with  package  deals  paired  with  existing  an  already  existing  supply  

Deal  strictly  for  energy  drinks  with  no  combo-­‐deals  

Have  the  ability  to  offer  cheaper  prices  when  ordering  in  bulk  and  with  package  deals  paired  with  an  existing  product  supply  

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6 CUSTOMER  INFORMATION  

6.1 CUSTOMER  PROFILE  

 Moxie’s  focuses  on  exceptional  standards  in  food  quality,  exceptional  service  and  prices,  

creating  great  value  for  guests.  The  atmosphere  provides  an  upscale  casual  dining  experience  that  has  been  neglected  by  most  major  sit-­‐down  restaurant  groups.  The  upscale  ‘non-­‐themed'  approach,  coupled  with  superior  quality  food  offerings  and  service,  has  proven  to  be  highly  successful.  

 Moxie's  restaurants  average  approximately  225  seats  and  are  open  seven  days  a  week  for  

lunch  and  dinner,  late  night  dining,  and  weekend  brunch,  with  all  locations  serving  a  full  liquor  menu.  They  have  a  diverse  menu  with  a  variety  of  salads,  sandwiches,  steaks  and  mains,  appetizers,  desserts,  brunch  items  and  coffees.  They  also  offer  constantly  changing  features  including  seasonal  soups  and  other  promotions  to  welcome  new  taste  palates  to  the  menu.    

 Moxies  believe  the  most  strategic  competitive  advantage  is  the  company's  culture.  The  

culture  is  built  on  the  foundation  of  great  people  serving  fabulous  fresh  food  in  an  upbeat  and  stylish  environment.    

6.2 CUSTOMER  NEEDS  

 Customer  needs  regarding  energy  drinks  to  make  cocktails  include:  

• Affordability  in  order  to  keep  costs  of  goods  low.  • Variety  of  flavors  to  have  the  opportunity  to  increase  mix  cocktail  menu  with.    • The  consumer  must  find  it  desirable,  affordable  and  flavorful,  and  want  to  purchase  it  

again.      

6.3 DECISION-­‐MAKING  

 Paul  Randle,  Director  of  Operations  for  Moxie’s  franchisees,  would  make  the  buying  

decisions  for  all  franchisees.  Working  for  Moxie’s  for  7  years,  he’s  involved  in  all  parts  of  the  business  and  has  opened  5  restaurants  within  13  months.  Residing  out  West,  Paul  Randle  will  be  communicating  with  franchisees  through  e-­‐mailing  and  telephone  calls  in  order  to  keep  them  updated  with  any  new  products.          

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7 OBJECTIVES  AND  PRESENTATION  PLAN  

7.1 OBJECTIVE  

 1. To  have  Moxies  purchase  at  least  50  cases  of  Coca  Cola’s  NOS  energy  drink  by  the  end  of  

the  sales  presentation  to  close  the  deal.  2. To  persuade  Moxies  that  the  NOS  energy  drink  is  a  better  option  than  their  current  

provider  due  to  its  variety  in  flavour  and  purchase  at  least  2  different  flavours  by  the  end  of  the  meeting.  

 

7.2 VALUE  PROPOSITION  

 For  high-­‐quality  restaurants  like  Moxies,  fighting  with  the  high  cost  and  product  

variation,  Coca  Cola’s  NOS  Energy  Drink  can  improve  efficiency  as  well  as  cutting  costs  by  its  availability  of  energy  drink  flavours  and  its  product  packaging  options.  Unlike  all  other  energy  drink  brands,  our  product  has  a  smooth  taste  and  comes  in  all  sorts  of  flavours,  providing  options  when  mixing  into  the  drink  menu  instead  of  using  other  fruit  juices.  Customers  chooses  NOS  as  their  energy  drink  not  only  for  its  taste  but  also  their  packaging  as  it  comes  in  a  re-­‐sealable  bottle  asides  from  the  regular  can.  Backed  by  a  strong  and  reputable  company  known  worldwide  for  its  name  within  the  beverage  industry,  Coca  Cola  always  ensures  that  their  products  are  high  quality,  meeting  all  standards  for  all  customers.  With  that,  they  have  the  ability  to  offer  restaurants  a  great  and  affordable  price  in  terms  of  purchasing  in  bulk  as  well  as  special  deals  for  those  who  are  already  loyal  companies  to  their  soft  drink  brands.      

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7.3 PRESENTATION  PLAN  

 Topic   Seller   Buyer  1. Approach   • Approach  with  introduction  with  

referral  then  Showmanship  • General  Manager  of  Moxies  • Welcomes  Seller  

2. Needs  Analysis    

 

• How  often  and  what  are  your  energy  drinks  used  within  your  menu?    

• How  many  flavors  does  it  come  in?  

• What  kind  of  customers  do  you  target  when  using  it?  

• Does  it  come  in  different  sizes?  • How  does  your  supplier  provide  you  with  a  good  deal  when  purchasing  the  product?  

• We  use  Redbull  energy  drink  within  our  cocktail  menu  for  only  2  different  drink  options.  As  well  as  providing  the  can  itself  as  a  drink  option.    

• It  comes  in  1  flavor,  which  is  available  in  regular,  sugar-­‐free,  and  0  calorie,  we  only  purchase  regular.  The  lack  of  variety  in  flavors  is  why  we  can  only  incorporate  it  into  2  cocktails.  

• We  target  19-­‐mid  30s  who  need  an  energy  boost  to  keep  the  atmosphere  lively  on  weekend  evenings,  or  its  an  option  for  our  staff  to  keep  energized  on  long  shifts  while  on  the  go.  

• We  only  have  1  size  of  Redbull  on  our  drink  menu,  its  355mL.  

• We  have  used  the  same  supplier  of  Redbull  since  we’ve  opened,  and  have  a  strong  loyalty  to  their  company.  

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Topic   Seller   Buyer  3. Features,  

Advantages,  and  Benefits  

• NOS  comes  in  6  different  flavors  such  as  cherry,  grape,  and  more.  Keep  in  mind,  just  like  all  other  large  successful  companies,  who  doesn’t  want  the  opportunity  to  have  the  ability  to  expand  your  menu  while  saving  money?        

• Our  product  is  not  only  for  almost  all  ages,  it  ensures  minimal  after  burn  for  all  your  customers  compared  to  the  competitors    

• Have  options  where  customers  can  have  it  in  the  standard  355ml  can  or  in  a  re-­‐sealable  bottle  -­‐-­‐  ability  to  even  take  it  home  to  go  

• With  that,  I’ve  taken  into  account  that  you’ve  been  loyal  to  Coca-­‐Cola  carbonated  products  and  would  like  to  offer  this  new  product  in  addition  to  our  successful  relationship  for  a  great  price.  -­‐-­‐  Then  respond  to  the  concern  

• That’s  great,  I  like  that  idea.  Having  the  ability  to  increase  our  cocktail  menu  gives  us  the  opportunity  to  increase  sales.    

• I  like  the  idea  of  minimal  burn  because  it  will  be  easier  for  staff  to  drink  on  the  go  during  a  busy  shift,  and  it  will  be  more  appealing  to  customers  to  drink  making  them  want  to  stay  longer  and  order  more,  increasing  restaurant  sales.  

• Having  different  sizes  is  an  okay  idea,  but  its  the  re-­‐sealable  bottles  I  find  appealing  because  it  means  smaller  food  costs  when  making  certain  cocktails  that  don’t  require  the  full  energy  drink  to  make.  

• Better  price  is  nice,  but  what  about  delivery  times  and  days?  Working  at  a  busy  restaurant  there  is  a  small  window  of  opportunity  to  have  time  to  unload  a  delivery.  

4. Competitor  Comparison    

• Competitor:  Redbull  • Number  one  or  two  energy  drinks  brand  in  many  countries  around  the  world  

• Sponsorship  of  events  such  as  Formula  1  and  American  soccer  help  position  the  brand  as  an  energy  drink  for  adventurous  consumers.  

• Increasing  value  and  volume  sales  despite  growing  competition.  

• Weaknesses:  Limited  choice  of  flavors  -­‐  original  or  sugar-­‐free  and  taste  is  described  as  medicinal  by  some  consumers  

• Most  recognizable  energy  drink,  customers  know  what  to  expect  when  they’re  purchasing  

• Sponsorship  of  events  such  as  Formula  1  and  American  soccer  that  is  recognized  in  a  bar  in  which  these  events  are  shown,  increasing  sales  with  ads.  

• Despite  increased  competition,  its  still  the  most  popular  energy  drink  and  what  consumers  are  looking  for  when  wanting  an  energy  drink,  increasing  these  sales  within  the  restaurant.  

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Topic   Seller   Buyer  5. Value  

Proposition  • More  flavors  to  increase  menu  • Options  different  sizes  (re-­‐sealable  packaging)  

• Smooth  flavor  with  minimal  burn  • Loyalty  discount  to  reduce  costs  

 

6. Proposal    

• Considering  we’ll  be  able  to  improve  and  expand  the  company  menu  at  a  cheaper  price,  don’t  you  think  it’s  a  great  idea  to  put  this  plan  into  action?  

• Response:  as  per  mentioned  earlier,  we  can  give  you  lower  prices.  $30/case  ($1.25  at  cost)  and  if  you  purchase  more  than  30  cases  a  month,  we  can  offer  your  company  $25/case  instead.  Every  case  offered  comes  with  24  cans/bottles  and  has  1  flavor  per  case.  Mix  and  match.  

• Greater  return  on  investment  for  my  company  as  well  as  increase  in  brand  image  with  the  larger  variety  of  drinks,  but  what  will  you  do  if  I  buy  from  you?  

7. Visual  Aids  &  Supporting  Evidence  

• Bring  testimonials  from  other  companies  who  has  used  the  product    

• Consumer  testimonials  • Have  the  product  itself  for  the  person  to  try  

• Testimonials  are  great,  I  like  to  see  who  has  used  the  product  and  what  they  thought  of  it,  as  well  as  having  first  hand  opinions  from  consumers  

• Getting  to  taste  the  product  is  great,  it  will  allow  me  to  taste  the  quality  of  the  product  

• Requests  further  information  informally  so  the  presentation  has  a  natural  flow  

8. Demonstration   • Have  the  product  to  try   • An  energetic  atmosphere  with  consumer  satisfaction,  and  increased  profits  for  the  company.  

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Topic   Seller   Buyer  9. Objections   • Notice  that  you’re  also  loyal  to  

Coca-­‐Cola  products  • Delivery  times  can  be  the  same  time/day  as  regular  convenient  days  as  your  Coca-­‐Cola  shipment.  Less  time  out  of  your  busy  schedule  

• The  cost  of  the  1-­‐time  expense  for  training  and  changing  the  menus  will  be  worth  it  considering  the  fact  that  acquiring  NOS  will  profit  a  great  deal.  

• Moxies  have  been  loyal  to  Redbull  since  the  company  started,  and  they  offer  us  a  great  deal.  

• Moxies  is  a  busy  restaurant  with  a  small  window  of  opportunity  to  accept  deliveries,  what  days  and  times  do  you  deliver?  

• Having  more  drink  options  is  great,  but  new  cocktails  on  the  menu  will  require  training  staff  and  bartenders,  as  well  as  printing  new  menus.  

10. Closing   •  Can  I  put  you  down  for  50  cases  today?  

 

• Don’t  have  the  purchasing  power  but  is  very  interested  in  the  idea  and  will  make  sure  to  relay  it  and  persuade  the  purchasing  manager  in  order  to  make  the  purchase  ASAP    

       

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8 REFERENCES  

 1.  Anonymous.  Addressing  Canada’s  Aging  Population.  Food  in  Canada.  December  2009.   http://search.proquest.com.library.sheridanc.on.ca/docview/224333327    2.  Anonymous.  Pressure  Grows  To  Regulate  Energy  Drinks.  The  Ottawa  Citizen.  Ottawa,  ON,    

27/01/11  http://search.proquest.com.library.sheridanc.on.ca/docview/84828312    3.  Bevnet.  (2012,  08  10).  The  Top  15  Energy  Drink  Brands.  Retrieved  10  01,  2012  from  Energy    

Fiend:  http://www.energyfiend.com/the-­‐15-­‐top-­‐energy-­‐drink-­‐brands      4.  Coca-­‐Cola.  (2012,  01  01).  The  Coca-­‐Cola  Company.  Retrieved  10  01,  2012  from  Coca-­‐Cola:    

http://www.thecoca-­‐colacompany.com/ourcompany/index.html      5.  Environment  Canada.  Climate  Change  -­‐  Climate  Trends  and  Variations  Bulletin  -­‐  Winter    

2010/2011.  (n.d.).  Environnement  Canada  -­‐  Environment  Canada.  Retrieved  November  13,  2012,  from  http://www.ec.gc.ca/adsc-­‐cmda/default.asp?lang=en&n=8C03D32A-­‐1http://  

 6.  Euromonitor  International.  (2012,  03  01).  Sports  and  Energy  Drinks  in  Canada  .  Retrieved  10    

01,  2012  from  Euromonitor  International:  http://www.euromonitor.com/sports-­‐and-­‐energy-­‐drinks-­‐in-­‐canada/report    

 7.  Halo  ™.  Restaurant  Trends.  (n.d.).  Real  Restaurant  Results  |  Vivonet,  Secure  Internet    

Restaurant  POS.  Retrieved  November  13,  2012,  from  http://www.myhalo.com/restaurant/Resource_Center/Restaurant_Tips/restaurant_trends/  

 8.  MMA  Weekly.  (2012,  09  17).  Georges  St-­‐Pierre  Signs  Endorsement  Deal  with  NOS  Energy,    

Part  of  the  Coca-­‐Cola  Family  .  Retrieved  10  25,  2012  from  MMA  Weekly:  http://www.mmaweekly.com/georges-­‐st-­‐pierre-­‐signs-­‐endorsement-­‐deal-­‐with-­‐nos-­‐energy-­‐part-­‐of-­‐the-­‐coca-­‐cola-­‐family    

 9.  NOS  Energy  Drink.  (2011,  01  01).  NOS  Products.  Retrieved  10  11,  2012  from  NOS  Energy    

Drinks:  http://www.drinknos.com/products.do    10.  Nguyen,  L.  (2011,  01  01).  Regulation  sought  for  energy  drinks.  Retrieved  10  10,  2012  from    

ProQuest:  http://search.proquest.com.library.sheridanc.on.ca/docview/848375891    

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 11.  Restaurant  Trends.    5  Ways  Technology  Can  Keep  You  Ahead  of  the.  (n.d.).SpeedLine    

Restaurant  Point  of  Sale  Systems  |  POS  software.  Retrieved  November  13,  2012,  from  http://www.speedlinesolutions.com/home/speedline_blog/postid/136/restaurant-­‐trends-­‐5-­‐ways-­‐technology-­‐can-­‐keep-­‐you-­‐ahead-­‐of-­‐the-­‐pack.aspx  /postid/136/restaurant-­‐trends-­‐5-­‐ways-­‐technology-­‐can-­‐keep-­‐you-­‐ahead-­‐of-­‐the-­‐pack.aspx>.  

 12.  Stanaitis,  R.  The  Race  for  Convenience.  Canadian  Grocer,  Mar  2007.   http://search.proquest.com.library.sheridanc.on.ca/docview/222848031    13.  Statistics  Canada.  (2012,  06  18).  Average  income  after  tax  by  economic  family  types  .    

Retrieved  10  11,  2012  from  Statistics  Canada:  http://www.statcan.gc.ca/tables-­‐tableaux/sum-­‐som/l01/cst01/famil21a-­‐eng.htm    

 14.  Statistics  Canada.  (2012,  10  07).  Ontario  Population.  Retrieved  9  11,  2012  from  Statistics    

Canada:  http://www12.statcan.gc.ca/census-­‐recensement/2011/dp-­‐pd/tbt-­‐tt/Rp-­‐eng.cfm?TABID=1&LANG=E&APATH=3&DETAIL=0&DIM=0&FL=A&FREE=0&GC=0&GK=0&GRP=1&PID=102014&PRID=0&PTYPE=101955&S=0&SHOWALL=0&SUB=0&Temporal=2011&THEME=88&VID=0&VNAMEE=&VNAMEF=    

 15.  Yahoo!  Finance.  (2012,  10  30).  CAD/USD  (CADUSD=X).  Retrieved  10  30,  2012  from  Yahoo!    

Finance:  http://ca.finance.yahoo.com/echarts?s=CADUSD%3DX#symbol=;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;