GROUP 10

Audrey Jolin-LessardAïsha BrillantCindy ChengGeneviève LeblancNicolas MurciaVicki TianJean-Louis Nguyen

Audrey Jolin-Lessard

Cindy Cheng

Nicolas Murcia

Jean-Louis Nguyen

Our Presentation STRUCTURE

Marketing Objectives

Company Profile

What is Bubble Buzz?

Overview of the industry

Competition, Target Market & Customer Analysis

Marketing Mix (4Ps)

Financial Projections, Implementation Plan

Export Potential

Introductory VIDEO

What are our intentions?

Launch and market a completely unseen-before beverage product, in order to achieve the following:

Create strong consumer awareness for Bubble Buzz through the 4 P’s

Become the market leader in the

functional drinks segment through sizeable market

shares

Re-affirm the company’s title of market leader in

product innovation and successful product

launches.

3 MARKETING OBJECTIVES

BubbleBuzzA simple plan to success

Company Description

• 2nd leading player in functional and Asian specialty drinks• 1st in value for the ready-to-drink (RTD) tea sector

Product Description

• It is a bottled beverage• It is the only READY TO DRINK

bubble tea on earth!• It gives you an UNIQUE experience~

(Let’s get the buzz!)• It is a funky and unusual alternative

to traditional tea

Industry Analysis – Where does the product stand?

FOOD & BEVERAGE

SOFT DRINKS

Carbonates

Fruit/Vegetable Juice

Bottled Water

Functional Drinks

Concentrates

RTD Tea

RTD Coffee

Industry Analysis – The Functional Drinks Market

Segments of the functional drinks marketEnergy drinksNutraceutical drinksSports drinksSmoothies (Milk & Juice Drinks)RTD Bubble Tea

Industry Analysis – Soft drink sales breakdown

Off-Trade Sales of Soft Drinks by Sector: Value 1999-2004

C$ million 1999 2000 2001 2002 2003 2004

Carbonates  4,651.40 4,726.30 4,828.20 4,991.10 4,959.60 4,938.90

Fruit/vegetable juice  2,135.20 2,239.60 2,347.00 2,454.60 2,497.60 2,613.10

Bottled water  385.9 447.3 551.2 666.8 763 859.4

Functional drinks  296.7 312.1 318.1 324.7 327.4 342.2

Concentrates  193 186.5 171.3 166.5 159.2 161.9

RTD tea  234 257.4 265 275.4 286.8 307.4

RTD coffee  0.2 0.4 0.6 0.8 0.9 1.1

TOTAL 7,896.40 8,169.60 8,481.30 8,879.90 8,994.50 9,224.10

Industry Analysis - Trends

Only 3.7% of the total soft drink sales. However…

Sales: $342.2 millions in sales in Canada in 2004

Current growth: 13.5% sales increase since 1999

Future growth: 7.3% sales & 11.0% volume increase by 2009.

Consumption: 3.94 Liters per capita, a 4% increase since 1999

Growth and profitability potential due to consumer trends.consumer trends.

Industry Analysis – Consumer Trends

Portfolio diversification through alliances, acquisitions, R&D

Consumer trends that affect the market (past & forecast)

Industry Analysis - Strengths, Weaknesses, Opportunities, Threats

Strengths:Strengths:

Brand name

Strong existing distribution channels

Weaknesses:Weaknesses:

Brand dilution

Saturation of carbonated soft drinks segment

Industry Analysis - Strengths, Weaknesses, Opportunities, Threats

OpportunitiesOpportunities

New product introductions

Brand is attractive to global partners

Threats:Threats:

Strong competition

Free trade

CompetitionOthers, 8.9%

Coca-Cola Co., 43.7%

Pepsi Co., 31.6%

Cadbury-Schweppes,

15.8%

Soft Drink IndustrySoft Drink Industry

Competition

Functional Drink Sector

Coca-Cola Co., 32.8%

Others, 6.7%Pepsi Co.,

60.5%

Competition

Traditional Bubble Tea…

• A battle between retailing vs. counter/restoration

• We have a strong distribution sys ---partnership + channels

Target Market

• Segment ID: RTD bottled bubble tea

• Needs: physiological hydrating & nutritional social a social, fun drink w/n group

• Trends: 1. away from junk foods & carbonated drink2. growing interest for healthier product3. on-the-go products for active lifestyle4. personalization

• Size: 8,688,300 people (10-29 y.o. in Canada) a total of 329,600 L of consumption in functional drink

Target Market

• Geographic: National wide

• Demographic: 10-29 years old

• Psychographic: Brand conscious, popular culture;

• Behavioral : Benefit sought~

Functional– healthier than soft drink Perceptual– Quality/Premium price Usage rate~ Seasonal (peak in summer)

Segmentation Variables & Breakdowns

Bubble Buzz Price: $2Bubble Buzz Price: $2

Consumer demandConsumer demand

The product lifecycleThe product lifecycle

Potential substitutesPotential substitutes

Price strategy should consider the following 3 aspects :

Marketing Mix – Price Strategy

Marketing Mix – Price Strategy

Consumer demand:Consumer demand:

driven by tastes and income;

availability of others similar products;

“The higher the price, the higher the value.”

The product lifecycle:The product lifecycle: the newer the product the higher the price; high profit margin;

Potential substitutes: Potential substitutes: competitors attracted by high profit margin; easy to imitate;

Marketing Mix – Product Strategy

Marketing Mix – Product Strategy

Brand personality:Brand personality: energy, funky, cool, functional, original, funny, healthy, etc.

Product modification: Product modification: introducing an existing beverage but with a more convenient package

Benefits of Green Tea: Benefits of Green Tea: cancer, rheumatoid arthritis, cholesterol, cardiovascular disease, infections, quit smoking, weight loss, etc.

Marketing Mix – Promotion Strategy

Objectives:

To initiate strong awareness about Bubble Buzz throughout Generation Y consumers as well as their parents.

To win market shares over our top functional drinks competitor, PepsiCo.

Marketing Mix – Promotion Strategy

The message:

Bubble Buzz is a healthy drink for sporty and young people who simply enjoy taking care of their body and life. It is a drink for the out-of-the-ordinary individuals who like to challenge themselves

Be Bold, Be Original, Be Different, Be Yourself

Marketing Mix – Promotion Strategy

Target Market:Target Market: Generation Y only give partial attention to media and typically use more than one media at a time. Solution:Solution: Use a great variety of targeted promotional tools.

Media selection: Media selection:

TelevisionRadio Magazines Internet Outdoors Personal Selling Public relations Publicity

Marketing Mix – Promotion Strategy

Television:Television:

•Only media that can reach 99% of the homes in Canada

•We have the budget to cover the high costs

Radio: Radio:

•Over 900 radio stations in Canada,

•Average student is a surprisingly heavy radio listener

Marketing Mix – Promotion Strategy

Magazines: Magazines:

about 500 consumer magazines in Canada,

good color production create strong images,

each magazine’s readers often represent a unique profile.

Marketing Mix – Promotion Strategy

Internet:Internet: official promotional website: www.BubbleBuzz.ca, visual audio and video message,banners on selected websites, Outdoors:Outdoors: low cost and

flexible alternative, campuses, bus, metro, tourist areas, malls, etc.

Marketing Mix – Promotion Strategy

Promotional Mix: Consumer orientationContests:Contests: “Win another Bubble Buzz flavour”, secret code underneath the bottle cap log on the website to win, increase consumer purchases / involvement

Samples:Samples: to avoid product resistance, low risk for consumers since they get it for free.

Point-of-purchase:Point-of-purchase: in supermarkets to reach the parents of generation Y

Product PlacementProduct Placement :: in TV shows in subsequent years,

Marketing Mix – Promotion Strategy

Allowances and discounts:Allowances and discounts: case allowance, encourage retailers to buy more of the product to get a certain amount for free

Cooperative advertising:Cooperative advertising: encourage retailers to buy our product and to maintain high level of advertisement

Advertising:Advertising: pulse scheduling, emphasized before and during summer

Promotional Mix: Trade orientation

Marketing Mix – Promotion Strategy

Intermediary:Intermediary: Push strategy, in order to gain retailer’s cooperation in ordering and stocking the product, personal selling.

Ultimate consumer:Ultimate consumer: Pull strategy: to direct our promotional mix at ultimate consumers in order to encourage them to ask retailers for Bubble Buzz, mass media.

Marketing Mix – Place Strategy

Supermarkets Convenience stores Independent food stores Discount stores Multiple grocers Vending machines Direct sales

Financial Projections Projected Financial Performance

Revenues $597,124.00 Based on sales @ different channel’s price

COGS $214,964.64 Based on weighted average percentage in past data

C.M. $382,159.36 Revenues - COGS

Fixed Costs :    

SG&A cost : $113,453.56 Half of the O/H costs estimated, based on past data

Capital expenditures :

$25,676.33 4.3% of revenue, based on past data

Profits $243,029.47 CM – SG&A – Capital expenditures

Pre-launch preparation:

Focus on organising resources to implement the Bubble Buzz.

Go / No-Go stage: should we continue product implementation ?

Launch:

April 1st Bubble Buzz is freshly on the shelves (no joke) !

Advertising campaign through promotion schedule.

Post-launch (monitor and control):

Assess feedback from sales revenue, and customers.

Maintain positive dynamic by training managers & staff, and by upgrading the web site.

Implementation Plan

“Step by Step”: Advertising campaign:

Create awareness of the brand

Reach target market (10 – 29)

Develop mass consumption

Enhance distribution

Charismatic and ethical sponsorship

Suggest excitement about the brand

Maintain communication with media

Promotion Schedule

Step Output Period of time

1 Personal selling February to September

2 Radio spots February to April

3 Magazines ads Mid-March to June

4 Television spots April to September

5 Sample distribution April to September

6 Point of purchase April and September

7 Outdoors May to September

8 Public Relations May to September

9 Contest August to end of September

10 Publicity All the time

Export Potential

Close to the origin of bubble tea---Taichun, Taiwan in 1983

Export Potential

**China’s Picture

**Population picture/chartChina--- total 1,313,015,000 in 2005 target market= 327,714,000Canada--- total 304,453,000

Where?

Export PotentialWe are the top sponsor for

2008 Beijing Olympic

** Sample of banner to be put around arena

Export Potential

---Entry Strategy---

Licensing!

Export Potential

---Some Changes--

**Price

**Name

**Flavor

**Promotion strategy (Billboard, outdoor display screen, ads in subway sys)

Export Potential

• Ads around public transportation---

SUBWAY

Export Potential

• Ads around public transportation---OUTDOOR DISPLAY

Conclusion

Jean-Louis’ conclusion and call for questions