Executive Summary: The following marketing plan forms the basis for the introduction of an innovative new product

by the Coca-Cola Company. The analysis allows us to outline the best strategiesto 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 asthe leader in innovation and successful product launches. The marketing strategies wille n a b l e t o r e a c h a m a r k e t s i z e o f a n e s t i m a t e d 8 , 6 8 8 , 3 0 0 p e o p l e ( t a r g e t e d ) w i t h a forecasted sales growth prospect of 7.3% over the next 4 years ($243,029.47 profits),while satisfying the needs of the still -unserved market for ready -todrink bubble tea.Success will be reflected by a sizeable capture of market shares within this market, whiles t r a t e g i c a l l y c a r r y i n g t h e c o m p a n y u p t o t h e t o p s p o t a s t h e m a r k e t l e a d e r i n t h e fu nctional drinks segment of soft drinks. Export potential will be considered in China. Brief description of the company The Coca-Cola Companys core undertaking ist o b e n e f i t a n d r e f r e s h e v e r y o n e i t r e a c h e s . Founded in 1886, we are the worlds

leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, which are used to produce nearly 400 beverage brands that make up for our wide portfolio. Our corporate headquarters areestablished in Atlanta, and we are holding local operations in over 200 countries aroundthe world. Our activities cover all sectors of the beverage industry. We are the secondleading player in functional and Asian specialty drinks, while ranking number one in value for the ready-to-drink tea sector (ref.1, p.1).3

3.94 liters, which represents a 4.0% increase compared to 1999 (ref.3). The growth of this particular market is largely due to a slow shift in consumer trends. Trends: Through the early 1960s, soft drinks were synonymous with colas in the mindof consumers. In the 1980s and 1990s, however, other beverages (from bottled water to tea) became more popular. Coca-Cola and Pepsi responded by expanding their offeringsthrough alliances (e.g. Coke & Nestea) and acquisitions (e.g. Coke & Minute Maid), butalso by focusing efforts on portfolio diversification. Today, while the soft drink industrysvalue has increased in 2004, the volume sales of carbonated soft drinks has declined duet o a l a r g e p r o p o r t i o n o f c o n s u m e r s w h o a r e o p t i n g f o r t h e t r e n d t o w a r d s h e a l t h i e r alternatives in the functional drink segment (energy drinks, smoothies, milk & juicedrinks, sports drinks) as well as bottled juices and water (ref.5). Companies have beenactively engaged in new product developments in order to counter the growing concernsabout negative health impacts of high-fructose drinks, but also to increase the demand ina market where product offerings are quickly maturing (ref.4). New flavor introductionsand healthconscious formulations have been launched in an attempt to offset the declinein carbonated soft drink sales (ref.6). The functional market is expected to show sustainedg r o w t h a n d c o n s u m e r i n t e r e s t i n t h e f u t u r e y e a r s a s c o n s u m p t i o n s h i f t s t o t r e n d i e r , healthier and more sophisticated products (ref.7). Profitability & future growth potential: In 1993, Concentrate Producers earned 29% pretax profits on their sales, while bottlers earned 9% profits on their sales, for a total industry profitability of 14%. While the functional drinks sector only accounts for 3.7%of the total soft drinks sales in 2004 (Appendix B), estimates are forecasting a growth of 7.3% in sales and 11.0% in volume consumption by 2009 (ref.4).5

SWOT ANALYSIS(Strengths and weaknesses, opportunities and threats)S t r e n h s W e a e s s e s

g k n

Brand strengthEffective stride in new marketsResults of operationsStrong existing distribution channelsReliant upon line extensionsReliant upon particular carbonated drinksBrand dilutionEntrance into difficult non-core categoriesSaturation of carbonated soft drink segment O p p o r t u n i t i e s T h r e a t s New product introductionsBrand is attractive to global partnersStrong competitionPotential health issuesFree trade Explanations in APPENDIX C COMPETITION Coca-Colas 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). Coca-Cola 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 2004. CocaCola Co is second with 32.8% (ref.2, see Appendix D1). BubbleBuzz will launch into a currently unserved subset of that market (RTD Ready-To-DrinkBubble Tea), which is until now unexisting. It is anticipated that the following brands could potentially compete with Bubble Buzz in the functional drinks market: Brisk, Lipton IcedT e a , S o b e ( o w n e d b y P e p s i C o ) , a s w e l l a s S n a p p l e s a n d H a w a i i a n P u n c h ( o w n e d b y Cadbury/Schweppes). Bubble Buzz also creates a potential situation for cannibalism withCocaColas very own brands of iced tea and other functional drinks.The current market for traditional Bubble Tea is fragmented, since the distribution isrestricted to local outlets and selling points such as counters and small Bubble Tea shops inscattered locations across Canada. However, direct competition from these local players isnot anticipated, since the marketing roll-out will initially emphasize on product awarenessa n d b o t h s a l e s c h a n n e l s d o n o t r e a c h o r s e r v e t h e sa me m a rke t (re t a iling vs. 6

counter/restoration). A strong distribution system already exists with CocaCola, since partnerships and channels are already in place. This will facilitate the products reach into itstarget market. Further data concerning competing market shares and distribution channels areavailable in Appendix D(1-3). Barriers to entry:B u s i n e s s p r a c t

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Due to the number of competitors, it will be hard to prevent imitation behaviour (especially from PepsiCo) Risk of competing with emerging private labels (e.g. Presidents Choice) Given the wide array of brands( saturation in the soft drink market), it becomes a challenge for Bubble Buzz tostand out Producing bottled Bubble Tea requiressizeable capital investments for thespecific needs of the manufacturing chain(from ingredients to final packagingspecifications) The marketing campaign to make thisunknown brand popular requires more promotional expenditures than atraditional brand extension TARGET MARKETSegment 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 andnutritional value) and social n e e d s ( p e r c e p t i o n o f a s o c i a l , f u n d r i n k w i t h a s e n s e o f belonging within peer consumer groups) (ref.11, p.127). Segment trends: The current trends include a shift away from junk foods and carbonateddrinks, 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 lifestyle, as well as the trend for personalization through customization (or for beverages,through variety-seeking in a wide introduction of flavours ref.6). Segment growth potential: Statistical reports anticipate a segment growth of 1.72% over the next 9 years (2015) for the 10-29 years old subsets (ref.12). Refer to Appendix E.7

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