marketing strategy process of virgin drinks

7/28/2019 Marketing Strategy Process of Virgin Drinks

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Marketing Strategy

Process ofVirginDrinks.


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Our Selected OrganizationIs

Global Beverage Company(GBCL)Virgin Drinks


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Introduction In age youth does matter. In apparel so does YOUTH

GROUP. This is what Youth Group says about itself.The group now takes to its wing a sweeping windgenerated by the twelve units of diverse industrialentities down under its trend setting enterprise.

The units of Youth Group at present are-

Youth Fashion Ltd. Youth Garments Ltd. Fair Deal Enterprise Eastern University

Global Beverage Co. Ltd. Youth Spinning Mills Ltd.

Unicom Textile Mills Ltd. International Holdings Ltd. Chowdhury Apparels (Pvt) Ltd. Multimode Merchandising Ltd.

Islamic finance & InvestmentLtd. Comptex Bangladesh Ltd.


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Global Beverage

GBCL, a concern of youth group isresponsible for revolutionary changes ofsoft drinks market in this country. Virgin

drinks were launched here under afranchise arrangement with VirginEnterprise Ltd. UK Virgin carbonated softdrink brands are extremely popular in the

UK and part of Europe due to its satisfyingcapability. The Virgin brands are alreadyproved to be very much popular inBangladesh.


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Objective Of The Research

Learning the process of interview and researchfollowed by professional report writing.

Learning to analyze different aspects of businessstrategy and identifying the major role-playing keyfactors to focus on with special effort.

Learning the steps of strategic planning and theircoverage of activities as well as understanding thebasis of company objectives and marketing goals.

Learning the bases of designing a successful businessportfolio.

Learning to define strengths and weaknesses of a

company and how to use/overcome them. Understanding the dimensions of a marketing mix.

Understanding the consumer behaviors and learninghow to turn them into competitive advantages insegmenting and targeting the market.


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Virgin Drinks The Virgin beverages business started its

operation in 1994. Having initially launched withVirgin Cola in the UK, it has grown rapidly byexpanding into new products, packages andterritories. Virgin Drinks now operates in 33

different territories worldwide. Virgin Drinks operates in large and growing

markets (carbonated soft drinks worldwide: 177Billions liters; growing by 2% per annum) and iscurrently present in 3 main products areas: cola,

fruit flavored drinks and energy drinks. At the same time, Virgin Drinks is developing new

soft drink concepts, responding to evolvingconsumer trends and sometimes even creatingnew segments.


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Mission Statement

To delight the consumers with productinnovation.

International premium quality standard.

An affordable and rational pricethat offers them the best value for theirmoney.


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Marketing Objectives

To develop the Virgin brand name within the SoftDrinks Category.

To create initial Brand Awareness and product trials.

To propose a continuous Marketing Activity Plan that

will build consumer awareness and off-take, beyond theinitial launch period.

To reach at least 30% of Brand Awareness for VirginDrinks within Year 1 of getting the account.

To establish a creative positioning and marketingplatform in line with Virgins Core Values that willunderpin all marketing activity and build the image ofVirgin Drinks.


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Marketing Strategy

Market Segmentation.

Geographic Segmentation.

Demographic Segmentation.Psychographic Segmentation.

Product Diversification.

Company Strength and Weakness.


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Geographic Segmentation

Geographic Segmentation calls for dividing themarket into different geographic units such asnations, regions, states, counties, cities or

neighborhoods. GBCL divides the consumermarket of Bangladesh into different geographicunits such as different regions. GBCL hassegmented the Bangladesh market into

different regions like Dhaka, Chittagong andKhulna are their prime targets and Rajshahiand Sylhet are their potential targets.


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Demographic Segmentation Demographic Segmentation divides the

market into groups based on variablessuch as age, gender, family size, family

life cycle, income, occupation, education,religion, race, generation and nationality.Demographic factors are the most

popular bases for segmenting customergroups. One reason is that customerneeds, wants and usage rates often varyclosely with demographic variables.


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Pychographic Segmentation

Psychographic segmentation dividesbuyers into different groups based onsocial class, lifestyle, or personality

characteristic. Through psychographicsegmentation GBCL can get closer totheir target consumers.


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Product Diversification

Virgin company is try to emphasize on theflavor range of their product forpositioning their market. They offersdifferent flavors and colors in the marketexperimentally two years ago inDecember, but it failed for lack of properadvertising and positioning. After thatthey feel the need for diversities. But they

have to be confident about advertisingand orientation of customer needs.

Also, GBCL is recently thinking of enteringthe market of Mineral Water in near

future.


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Company Strength

The main strength Virgin has is that GBCL was the

pioneers of slim can production in Bangladesh. Theywere the first to introduce slim cans for beverageproduction in Bangladesh.

Another major point would be the price-amount-

convenience factor. In this case, Virgins slim cansare worth Tk.15, the volume being 250 ml. In caseof Coca-Cola or Pepsi, the price is Tk.25, and theamount is slightly more, about 350 ml. thus,comparatively we can say that the price ofVirgin

cans in correlation to the amount is cheaper thanthat of its competitors.

A prime factor is quality. As Virgin is a franchise, allproductions are monitored by the foreignmanagement, thus the quality is always maintained

at the top premium level.


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Company Weakness

Insufficient financial support is one ofthe major problems for the virgin.

Virgins distribution channels are weak

compared to that of its competitors. Virgin cannot advertise as much as itscompetitors.

Virgin does not organizes or sponsorsany kind functions, sports festivals ormusic concerts like Pepsi and Coca-Colaand Pepsi usually do. So they lacks in

promotional concepts.


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Competitors

Coca-Cola (Coke)

Pepsi

Royal Crown (RC) Sun Crest

Uro Cola


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Competitive Advantages

Price Tk.5 less.

250 ml disposable andportable metal can.

250 ml disposable,conveniently portable, lightPET bottle.


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Disadvantages Recently other companies also introduced slim

metallic cans in the market. IfVirgin cannot placethe fact in the consumers minds that they are thepioneer to launch this feature, then Virgin can loseits market.

They not yet introduced any 2 Ltr. packages likemany other competitors like RC and Pepsi did.

They dont have any premix machine or fountainglass package.

The factory ofVirgin is outside the boundary ofDhaka City or any other major cities.

Distribution channel is weaker than many othercompetitor companies.

GBCL lacks efficiency in their promotional efforts.Like Sponsorship of programs.


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Business Portfolio(Strategies for Growth and

downsizing)82 81

12 103 0 2 0 2 0

0

20

40

60

80

100

Virgin

Cola

Virgin

Lemon

Virgin

Diet

Virgin

Orange

Cheers

Mango

Production Volume (Highest) %Production Volume (Lowest) %

Market ShareHIGH

Market ShareLOW

MarketGrowth Rate

HIGH

STAR

VirginLemon-Lime

QUESTION MARKVirgin

Orange& Diet Cola

DOG

Cheers Mango Drink

Market

Growth Rate

LOW

CASH COW

VirginLemon-Lime


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Marketing Mix

The marketing mix of any companyconsists of four elements. They are

Product.

Price.

Place.

Promotion.


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Price

GBCL is a volume oriented company .It givepreference to the designed sales growthrate. It also considers the maintenance of astable price as a pricing goal. It wants to

increase its market growth and stabilize themarket. So they maintain loyalty to get theirsupport. they are maintaining an effectivepricing to beat their competition, which is

rationale than their competitors price. Tobeat their competitor they have productdifferentiation, by which they can meet theneeds of different segment of customer.


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Promotion Promotion strategy is concerned with the planning,

implementation and control of persuasivecommunication with customers. These strategiesmay be designed around advertising, personalselling, sales promotion, or any combination of all

these. Virgin has a well-planned strategy for promotion.

Promotion strategy of GBCL is concerned with twofactors. Consumer promotion: Customer satisfaction

and motivate the consumer to buy the productthrough effective and attractive media oroutdoor advertisements.

- Trade promotion: Retailer satisfaction byoffering good profit margins and distribution

commissions.

d


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Communication and Promotionstrategy

Promotions that really work-simple and straight forward withthe focus on the consumer (trendy/cool/different/fun)

Proactive use of PR to create hype and awareness-use RichardBranson as a strategic weapon; however reliance on hisappearance at the launch must be absolutely avoided.

Guerilla/buzz marketing tactics as an integral part of the

strategy-thought provoking ads or fun street events. Marketing spending and activities should be planned to takeinto account the level of distribution in the market. Extensiveabove the Line (ATL) activities should not be undertaken beforereasonable distribution levels are achieved.

Emphasis on Point of Sale (POS) execution in-store is stronglyencouraged as Soft Drinks is an impulse category and has to be

widely distributed and well-merchandised, especially whereteenagers gather areas and convenience stores.

The creativity in all efforts must support the brand core valuesand be flexible to allow for future expansion of the Virgin Brand.


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Conclusion

GBCL has the 3rd largest market share in ourcountry. As a new brand , Virgin products arecomprehensively doing well compare to othernewly introduced beverages. The company hasnot yet built up any proper promotional activities

for the traders, but hey are soon going todevelop one. Although the company has a widedistribution channel, yet the products are not asavailable as Coca-Cola. In the competitivemarket, there are opportunities Global Beverage

to expand its market share and target markets.Virgin strength lies on their skilled personnel,strong back up by the mother concern group andthe quality of their product.


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Thanks

ToAll

marketing strategy process of virgin drinks

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