GROUP 10

Audrey Jolin-Lessard
Aïsha Brillant
Cindy Cheng
Geneviève Leblanc
Nicolas Murcia
Vicki Tian
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:

3 MARKETING OBJECTIVES
Become the market Re-affirm the
Create strong consumer leader in the company’s title of
awareness for Bubble functional drinks market leader in
Buzz through the 4 P’s segment through product innovation and
sizeable market successful product
shares launches.
BubbleBuzz
A 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

Carbonates
RTD Coffee

SOFT DRINKS Concentrates

Fruit/Vegetable Juice

RTD Tea

Bottled Water
Functional Drinks
 Industry Analysis – The Functional Drinks Market

Segments of the functional drinks market

Energy drinks
Nutraceutical drinks
Sports drinks
Smoothies (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.

 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:
Brand name
Strong existing distribution channels

Weaknesses:
Brand dilution
Saturation of carbonated soft drinks segment
 Industry Analysis - Strengths, Weaknesses, Opportunities, Threats

Opportunities
New product introductions
Brand is attractive to global partners

Threats:
Strong competition
Free trade
Competition Soft Drink Industry
Others, 8.9%
Coca-Cola
Co., 43.7%

Pepsi Co.,
31.6%
Cadbury-
Schweppes,
15.8%
 Competition
Others, 6.7%
Coca-Cola Co., Pepsi Co.,
32.8% 60.5%

Functional Drink Sector

 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 drink
2. growing interest for healthier product
3. on-the-go products for active lifestyle
4. 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

Segmentation Variables & Breakdowns

• 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)
 Marketing Mix – Price Strategy

Price strategy should consider the following 3 aspects :

Consumer demand

The product lifecycle

Potential substitutes

Bubble Buzz Price: $2

Marketing Mix – Price Strategy
Consumer demand:
driven by tastes and income;
availability of others similar products;
“The higher the price, the higher the value.”

• The product lifecycle:

the newer the product the higher the price;
high profit margin;

Potential substitutes:
competitors attracted by high profit margin;
easy to imitate;
Marketing Mix – Product Strategy
Marketing Mix – Product Strategy

• Brand personality: energy, funky, cool, functional, original, funny,

healthy, etc.
• Product modification: introducing an existing beverage but with a
more convenient package
• 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: Media selection:

Generation Y only give
partial attention to Television
media and typically use Radio
more than one media at Magazines
a time. Internet
Outdoors
Solution: Personal Selling
Use a great variety of Public relations
targeted promotional Publicity
tools.
 Marketing Mix – Promotion Strategy
Television: Radio:
•Only media that can reach 99% •Over 900 radio stations in Canada,
of the homes in Canada
•Average student is a surprisingly
•We have the budget to cover the heavy radio listener
high costs
 Marketing Mix – Promotion Strategy

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: official
promotional website:
www.BubbleBuzz.ca, visual
audio and video message,
banners on selected
websites, Outdoors: low cost and
flexible alternative,
campuses, bus, metro,
tourist areas, malls, etc.
Marketing Mix – Promotion Strategy
Promotional Mix: Consumer orientation
Contests:
“Win another Bubble Buzz flavour”,
secret code underneath the bottle cap log on the website to win,
increase consumer purchases / involvement

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

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

Product Placement :
in TV shows in subsequent years,
 Marketing Mix – Promotion Strategy
Promotional Mix: Trade orientation

Allowances and discounts: case allowance, encourage retailers to

buy more of the product to get a certain amount for free

Cooperative advertising: encourage retailers to buy our product and

to maintain high level of advertisement

Advertising: pulse scheduling, emphasized before and during

summer
 Marketing Mix – Promotion Strategy
Intermediary: Push strategy, in order to gain retailer’s cooperation in
ordering and stocking the product, personal selling.

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 $25,676.33 4.3% of revenue, based on past data
expenditures :
Profits $243,029.47 CM – SG&A – Capital expenditures
Implementation Plan
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.
 Promotion Schedule

Step Output Period of time

“Step by Step”: 1 Personal selling February to September

Advertising campaign: 2 Radio spots February to April

• Create awareness of the brand 3 Magazines ads Mid-March to June

• Reach target market (10 – 29) 4 Television spots April to September

• Develop mass consumption

5 Sample distribution April to September

• Enhance distribution
6 Point of purchase April and September
• Charismatic and ethical sponsorship
7 Outdoors May to September
• Suggest excitement about the brand
8 Public Relations May to September
• Maintain communication with media
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

Where?

**China’s Picture

**Population picture/chart
China--- total 1,313,015,000 in 2005
target market= 327,714,000
Canada--- total 304,453,000
 Export Potential
We 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