Professional Documents
Culture Documents
Marketing Project
Launch of Loca Lime
Contents
Contents................................................................................................................ 2
Executive Summary:..............................................................................................4
CURRENT MARKET SITUATION:..............................................................................5
Mission Statement:.............................................................................................6
MARKET DESCRIPTION:.......................................................................................6
BRANDS OF COCA-COLA:....................................................................................7
COMPETITOR REVIEW:........................................................................................7
MACRO ENVIRONMENT OF PEPSI AND COKE.......................................................9
Demographic Forces........................................................................................9
Economic Forces..............................................................................................9
Natural Forces................................................................................................. 9
Technological Forces.......................................................................................9
Political and Legal............................................................................................9
Cultural Forces................................................................................................ 9
DISTRIBUTION REVIEW.......................................................................................9
SWOT Analysis.....................................................................................................10
Strength of company........................................................................................10
Coca-Cola’s Promotion Initiatives:.................................................................11
Strengths of the product...................................................................................12
Weaknesses......................................................................................................13
Opportunities....................................................................................................13
Threats............................................................................................................. 14
Objectives:........................................................................................................... 14
Building a Healthier Image:..............................................................................15
Wider Brand Recognition:.................................................................................15
Capturing the juice market:..............................................................................16
Expanding the Product.....................................................................................16
Issues:.................................................................................................................. 16
Giving people a USP.........................................................................................16
The Time Factor................................................................................................17
Lack of choice: .................................................................................................17
Product Life Cycle:...............................................................................................18
3
Executive Summary:
For the past century Coca-Cola has had the distinct privilege of operating as one
of the premier organizations of the beverages industry. Through consistent
market re-alignment, Coca-Cola has consistently found solutions to bridge and
mitigate the gap between that which consumers yearn for and those things that
are readily available to them. Having found a way to fill this void, Coca-Cola has
managed to position its bran amongst those few elite who hold a special
impenetrable bond with their consumers. This is evidenced through their higher
market share.
Inherent in all products and services is the concept of birth, growth, maturation
and eventual demise. However organizations often times create and launch new
products and/or services that ensure the organization’s long term viability in the
marketplace, as such Coca-Cola Company has taken the decision to create,
launch and establish a new brand known as loca lime. The purpose for
diversification is to ensure consumer relevancy and the never ending pursuit of
achieving growth targets.
Loca lime embodies the re-birth marketing strategy for Coca-Cola in the following
ways:
• Coca cola Company can make use of a first mover’s advantage by being
the first company among its competing firms to launch a new product line
with a special emphasis on health.
The SWOT analysis of the Coca-Cola Company and its current market situation
are described in detail in this report, moreover in this report the marketing
strategy required to successfully launch the new product is extensively
discussed. The goals of launching the new product and the issues that the
company might face in achieving its set out targets are also discussed.
Additionally the exact method in which the company will go about launching and
monitoring the product is also deliberated upon. Furthermore this report includes
the focus on the cost side and the side that deals with price setting as well, along
with this the company’s short and long term objectives regarding the revenue
generation from the product are also discoursed. Hence we can see a thoroughly
laid out plan in this report which will be used by the Coca-Cola Company to make
the launch of the juice Loca Lime a success.
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Mission Statement:
Coca Cola Mission Statement has always been very clear.
MARKET DESCRIPTION:
Being the largest company in the soft drink industry, Coca Cola enjoys
the highest market share and controls about 59% of the world market.
The target market for Coca-Cola is all consumers worldwide. Coke’s
commercials basically focus on younger generations, because they want
to represent Coke with the youth and energy but they also consider
older people which they then take as a co-market. According to the
Coca-Cola Company
Among the Asian countries, Japan has the highest percentage of around
42% followed closely by Pakistan, India and Bangladesh where the
average consumption exceeds day by day. Coca-Cola has a 35% market
share in Pakistan while its competitor Pepsi dominates with 65%.
BRANDS OF COCA-COLA:
The product portfolio of Coca-Cola comprises of a vast number of brands
which are currently being sold throughout the world. In addition to their
staple carbonated drinks Coca-Cola has dabbed into fruit juices, sports
juices and mineral water markets as well worldwide. The major brands
of Coca-Cola sold in Pakistan include:
1. Coca-Cola
2. Sprite
3. Fanta
4. Minute Maid
5. Kinley Water
COMPETITOR REVIEW:
Coca-Cola’s major competitor is Pepsi Co. that occupies 60% of the
Pakistani soft-drink market. In Pakistan, Pepsi started their operations
in 1970 by establishing their regional office in Lahore which monitors all
the operations carried out in South West Asia. They currently have a
product portfolio that competes with Coca-Cola on every level. The
products of Pepsi sold throughout Pakistan include:
1. Pepsi
2. Mirinda
3. 7UP
4. Mountain Dew
5. Aquafina
Threats posed by Pepsi are also price-related. When the price goes
beyond a certain level it effects the consumption of the soft drinks. At
higher prices, consumers are more likely to substitute Pepsi with Coke
and vice versa. In short, it can all be traced down to customer’s
perception. In the last two years, when Pepsi has been dominating the
market, Coca-Cola has made an aggressive comeback mainly by brand
differentiation, effective advertising and attractive brand initiatives.
Moreover, Coca-Cola is an ‘Us’ brand because they believe in
togetherness; people as well as communities, and this is the nature
they target in Pakistan. Pepsi on the other hand is a ‘Me’ brand as they
emphasise of personal development and individual struggle which is
clearly emphasised through their advertising.
Income: As for the income levels, Coke and Pepsi target customers from
the middle class to the upper class.
Economic Forces
When the economy is in recession, the real incomes fall and the
expenses are high so the consumers move towards the product that
they can afford. During this time, the pricing strategies of Pepsi and
Coke would have a very major influence on the overall sales volume
Natural Forces
During a natural disaster, like an earthquake for instance, the markets
or suppliers might encounter shortages in the supply which will affect
the sales of soft-drinks.
Technological Forces
There is a huge amount of investment coming from the government to
develop the infrastructure and to exploit the market opportunities to
create new products in order to revive the market that might have
reached the maturity level. This will majorly affect the sales of the soft-
drinks as a greater product portfolio will definitely mean a larger
customer base and subsequently higher revenues.
Cultural Forces
Every country has a different culture. In Pakistan, due to the Islamic
Cultural values people prefer to use products made from Halal
ingredients. As a result, Coke and Pepsi have to be vigilant to use only
the ingredients acceptable in an Islamic country in order to avoid bad
publicity and controversies.
DISTRIBUTION REVIEW
The Coca-Cola Company offers their product in different bottle sizes
which include:
1. Direct Selling
2. Indirect Selling
Direct Selling – In direct selling they supply their products in the shops
by using their own transport. In this type of selling the Coca-Cola
Company has more profit margins.
SWOT Analysis
Strength of company
Coca cola is one of the most popular brands in the world. Sold in over 200
countries and offering around 400 brands coca cola is one of the most renowned
companies. The famous products that coca cola offer are Coke classic, Fanta,
Sprite etc. Coca Cola’s popularity is a strength for the company. When launching
new products Coca cola can use its popularity to sell its product. The new
product, in our case, ‘Loca Lime’ can easily establish itself in the market. Some
people prefer coca cola products and buy it so that they can be a part of the
Coca Cola family.
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Another major strength of the Coca-Cola Company is its brand loyalty. Coca cola
is right now earning 80% of its profit by its 20% loyal customer for whom coke is
not a beverage, it’s an addiction.
Coca cola has majority of the market share in the soft drink industry making
them the major players in the beverage industry and giving them a control over
the market; winning automatic preference of the consumers through its
reputation Coca-Cola has improved its revenues generously. The total profits of
coca cola company were up to $2.37bn (£1.56bn), up 16% from a year ago and
slightly above forecasts of $2.3bn. Improving its quality and winning more of the
market share. According to BBC Coca-Cola has reported strong second-quarter
profits, beating market expectations, thanks to rising international sales. . With
increasing revenues yearly Coca-Cola now can invest more in Research and
Design and help the company in better performance and will lead to further
innovations.
Coca-Cola’s headquarters are in Atlanta USA but all the management is handed
to the country itself. Like in Pakistan, Coca-Cola Beverages Pakistan Limited
(CCBPL) is managing and marketing the whole production distribution process.
Through this decentralized channel the company is ensuring a smooth and
efficient flow of the process which increases the performance of the company.
We can see around us that almost every store has a Coca Cola refrigerator. This
means that the product is highly available in the market. This has a huge impact
both financially for the firm and psychologically over the customer’s mind.
According to USAtoday.com Coca Cola teamed up with Santa Clause and donated
$120,000 to Toys for Tots. Cola life an independent NGO is using Coca cola’s
established distribution channels (franchised distribution channel) to provide
simplest medicines at the remotest areas. This way Coca Cola once again is
strengthening its image in the eyes of the world.
Moreover Coca-Cola has amazingly marketed its product with eye catchy
commercials and celebrated brand ambassadors. Ali Azmat was their brand
ambassador and for the youth of Pakistan he is someone that they idolize,
endorsements like these can have a major role in strengthening Coca-Cola
position in the mind of the customer. Seeing their favourite celebrities drinking
coke, the fans are most definitely influenced. Based on our research following
results were found.
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(Figures in Percentage)
Coke Studio one of the most watched shows in Pakistan is basically Coca-Cola’s
unique way of marketing their product. A show adored by a huge number of
music lovers. This helps in establishing brand loyalty, indirectly leading to higher
sales. Furthermore Coca-Cola was a sponsor for the FIFA 10 world cup as well.
Additionally we know that English Football is the most watched football league all
over the world. Coca cola has been a major sponsor of football over there and
the first division league is known as Coca Cola Championship. This way Coca-
Cola has been able to drive its sales and it has been able to create positive
publicity. It also has shaped consumers attitude towards the brand. All of these
unique ways of promotion of Coca-Cola are a major strength for the Company
with regard to the competition it faces.
Weaknesses
In the past decades coca cola has fought a lot of lawsuits defaming the image of
the company.
Allegations like
• Discrimination
• Drinks containing benzene(used in the production of drugs)
• Assassination of 470 unionist since 2002
These cases did lead to a minute fall in the sales of coca cola and was a minor
blow to the company.
Coca cola has a strong competition from Pepsi Co. Products like Pepsi, 7-up, Slice
are direct substitutes of Coke Classic, Sprite and Minute Maid. In Pakistan Pepsi
co.’s brand ambassador is Shahid Afridi the Pakistani cricket team captain.
Cricket is the most played game and through generations Pepsi has driven its
marketing campaigns by choosing brand ambassadors like Wasim Akram, Javed
Miandad etc. and via this Pepsi has been able to capture a larger portion of the
market than Coca-Cola.
Flop brands are another general weakness of the coca cola company. Heavy R
and D cost which was not repaid by revenues led to loss. Weak products or
brands are the weakness of the company. These products are the Dogs in the
BCG matrix. These brands are actually supported by either cash cows or stars
like Coke Classic and Diet Coke. These brands failed because of improper test
marketing and poor product development. Brands like The New Coke and Coke
black are included on the top of the list. These products indirectly decrease the
profit as they increase the operating cost of the company itself.
Opportunities
Coca cola has been sponsoring events which help in brand positioning in the
minds of consumer. Upcoming Cricket world cup is the opportunity that the
company can capitalize upon which may help the company in strengthening its
customer base and increasing its brand loyalty.
Coca cola could have improved its brand image by running a campaign to collect
flood relief revenues for the flood affected in Pakistan. This way they could have
helped the needy and improve their company’s image as well.
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Coca cola is sold over 200 countries but still there are third world countries
where coca cola is not available. The company should start capturing these
markets and spread its distribution worldwide.
Coca cola can expand its product line by product development. This can be done
by buying a restaurant or buying small players in the industry.
Threats
Coca-Cola’s major threat is Pepsi Co. They are the major competitors and every
brand of coca cola is being competed by a product of Pepsi co.
Fanta Mirinda
Sprite 7up
Pepsi co. although has been beaten at times but they still pose a threat to Coca
Cola company because they are the perfect substitutes of each other.
A decrease in the GDP of the country means lower purchasing power. This will
lead to a decrease in the sales of coca cola.
People have become more health conscious and this may tend to decrease the
sales of the company.
Coca Cola had also suffered before when American products were boycotted by
Muslim around the globe because of the Iraq war. This meant that coke was also
boycotted. This happened in 2008. This is a threat to company as these events
could repeat once again and could lessen the company’s sales.
Objectives:
We are launching loca lime with our minds set around four core criteria:
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1) We want to build a healthier image of the brand coca cola among the local
population, through the launch of our health-friendly lemon juice.
2) To get an even wider brand recognition and acceptance among the people
of Pakistan.
4) Expand into numerous flavours in the long term with the product line
trademark as “Loca” a name that would portray the healthier side of the
Coca-Cola company (loca apple, loca mango etc. ,similar to minute-maid)
Issues:
Achieving the above mentioned objectives won’t be easy and the main issues we
are expected to face in the pursuit of our goals would be as follows:
1) Getting people to switch from their current preferred juice company would
need either a unique selling proposition (USP) or some extensive
marketing.
2) Changing a brand image takes time hence in the short run our product
might not be as appealing to the health conscious segment.
choice. We can provide that reason but for that we need to think out of the box,
both in terms of the quality of our product and also in terms of the marketing
strategy of the product. We can provide people with a USP that will surely get
them to switch to our product. But providing a USP isn’t all that easy, especially
for a commodity like our juice. However this USP can be provided by maybe
giving the people a price that is within the range of most of the general public, or
through formulating a unique taste for a lemon juice, which isn’t all that realistic
since taste is a very subjective term. Nevertheless what we do have control over
is how we choose to promote our product, and that exactly could be our USP,
marketing our product in a way that we can attract the maximum number of
people would be how we will get the people to actually switch to loca lime.
Moreover the people who are already a part of our loyal customer base would be
easier to persuade since for them it would be a matter of trying the new product
launched by their trusted brand.
Lack of choice:
In addition to all of this the final core fear that could be there in terms of how the
new product performs in the market is that the initial lack of options in flavour
would pose a threat to our goal to become a leading name in the juice industry in
Pakistan. However the answer to this possible issue is that we do plan to launch
several other flavours based on the response of the consumers to loca lime,
moreover we do understand that in order to become a leading name in the juice
market as well we need to be able to offer several flavours, hence in the long
term we will be launching other flavours to continue the healthy trend of juices
that loca lime will start. Therefore we believe that launching a sole flavour in
market initially isn’t a bad idea since this will develop interest among our brand
followers as well as among the new consumers, and will give us an idea about
how to shape our marketing strategy in an even better way so as to perform
better while launching other flavours. Also this solo launch of loca lime will help
us in identifying our target market segment.
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So we can see that there will be impedances in our attempt to reach our
objectives with this product but through properly thought out marketing plans
we can overcome almost any issue that may pose a threat to the success of our
new product, however in any case we need to be proactive rather than reactive
we have to be ready for even the issues that we don’t currently even consider as
something that could be pose a threat.
In the long run, all existing products and services that have ever been
placed before consumers are destined to perish. For example, the automobile
industry witnessed the birth the Ford Cortina, a model that was so fundamentally
successful, it formed the basis of industry benchmarks. However, the Cortina fell
away into obscurity only to be followed by the Sierra and then the Mondeo. The
concept of products being born, growing, maturing and dying thus lie in the
never-ending need for innovation and advancement. Taking this a predeceasing
step further, the very act of commercial modernization is a reaction to the
consumer itch inherent in all of us for something ‘new’ and ultimately, different.
Its overall sustainability is commanded by how effectively the product or service
delivers on its pledged benefits. As such, organizations are actively creating,
launching and withdrawing products and service in a process known as the
Product Life Cycle.
Coca Cola’s success has always revolved around the secrecy with which it
values and withholds its formula and it has maintained this culture of
confidentiality since its inception. However, this does not mean the organization
has fallen prey to regurgitation of dated product ideas or stagnation in its ability
to develop. In fact, it is Coca Cola’s uncanny ability to constantly develop a
product or brand with timely and subtle ‘tweeks’ in formula that have allowed
the organization to extend its product lifecycles. Most significantly, Coca Cola
focuses on consistently reinforcing its core product benefits of taste and
refreshment to ensure the brand is continuously achieving new peaks.
Product:
The new product set for launch is essentially a refreshing, fresh lemon
juice drink under the added brand ‘Loca Lime’. It is differentiated against the
market in that it is a non-carbonated drink. It is to be packaged in both 250ml
glass returnable bottles and 500ml, as well as1.5litre plastic disposable bottles.
This is in keeping with industry standards.
The design of the bottle is unique and focused on the Go Green routine,
which dictates Coca Cola manufacture and make public packaged bottles that
are in tune with the environmentally friendly theme. Recently, a local Japanese
Coca Cola franchise had reinvented its operational entity through the
introduction of a new brand: ‘I LOHAS’. Following the aforementioned example,
‘Loca Lime’ is to be packaged in ultra-light, ‘crushable’ plastic bottling
mechanism that gives the advantage of a 40% lighter bottle as compared to the
industry standard PET packaging. This added feature in ‘Loca Lime’s’ brand
management encourages consumers to recycle and contribute to Coca Cola
Company’s global Environmental Sustainability Program.
Price:
The basis for Coca Cola’s pricing strategy is pre-existing industry
benchmarks. This would entail glass bottles retailing for 20rs with the condition
of return upon use. As far as targeting of green consumers is concerned, there
would be a 10rs markup on the 500ml bottle as production of environmentally
friendly plastic bottles incurs value-added costs. As a result, 500ml bottles would
retail at 45rs. Such a pricing scheme is based on the very Japanese Coca Cola
franchise that endorsed crushable and recyclable plastic bottles.
(i.e. health benefits, the drink for the athlete). For these reasons, the element of
promotion will be crucial to the success of ‘Loca Lime’.
Place:
Coca Cola Company has the distinct privilege of boasting a highly
sophisticated, world-renowned supply chain system established over decades. It
is significant to note that Coca Cola has come to achieve such an incredibly well-
integrated operations system through constant major restructuring, as well as
the more subtle tweaks required to create an almost self-sufficient producing
machine. Whilst Coca Cola’s organizational capabilities allow for it to launch a
nation-wide release of ‘Loca Lime’, it is wise to observe some amount of
sensibility and austerity.
In light of this, ‘Loca Lime’ will initially commence distribution in the three
major cities of Pakistan; Islamabad, Lahore and Karachi. The metropolitan nature
of these cities is an acid test in itself as far as durable goods are concerned.
ationale dictates that for a product or service to catch on and create a niche for
itself as a competitor for longstanding, well-established companies, it must
become a trend in Lahore. Secondly, for a product or service’s business sense to
be truly tested, it must pass the examination that is Karachi’s scrutiny. Finally, a
brand is only said to be self-sufficient and established if it is consistently earning
profits in Islamabad. However unorthodox the logic, Coca Cola’s philosophy on
the geographies of brand viability ensures that initial test results are examined
without having incurred heavy monetary costs on the supply chain. Particular
significance is given to the three major cities due to their diversity of
demographics and the high sensitivity with which they correlate with their
respective environments.
Promotion:
Although Coca Cola has observed certain cautiousness in terms of the
scale of ‘Loca Lime’s’ launch, the organization is committed to allocating funds in
a more generous manner for the promotional campaign. The strategy involves
three autonomous, con-currently running promotional campaigns, all of which
are to be pursued post-launch.
the Internet through social media websites such as Facebook, Twitter, Youtube,
etc. The end goal is for the act of ‘tagging’ to become a trend/fad for the
younger generation and eventually have this demographic, through their own
will and initiative; take to the streets to express themselves in their own unique
and creative way. Hopefully, with a bit of luck, their messages will have
something to do with Coca Cola. The promotion is tentatively titled “Paint the
Town Red”.
Simultaneously, ‘Loca Lime’ will be pushed into the forefront with Coca
Cola’s promotional campaign “Into the Limelight”. This campaign will feature
Coca Cola traveling and sponsoring various competitive events in educational
institutions around Pakistan. Essentially, students would be encouraged to
contest in competitions that would require them to use ‘Loca Lime’s’ crushable
plastic to construct plastic sculptures. The emphasis once again is placed on the
direct correlation between the younger generation and the need for creative
expression.
Finally, immediately following the launch of the brand, ‘Loca Lime’ wooden
stalls (reminiscent of stands set up in neighborhoods in American culture) would
be set up at all major parks, schools, stadiums and such landmarks for the
purpose of distributing free testers. It would be possibly beneficial to identify
such a campaign with a social cause relevant to the target market of concern.
For example:
• “COCA COLA FOR TEXTBOOKS: PLEASE DONATE A LITTLE, WE’LL GIVE THE
REST!”
Action Plan:
The action plan regarding how the Coca-Cola Company will go about launching
the product can be divided in the following broad categories:
1) Pre-launch marketing
3) Launch Execution
Pre-Launch Marketing:
Our pre-launch marketing would include advertisement mainly on the TV and in
the print media. Advertisements will be played on different popular channels
with reasonable frequency; pre-launch ads would have the objective of raising
interest in the audience. The ads would raise awareness among the public about
23
the product that is coming their way, ads would be made in a way that would
concern the old & young alike, since the purpose of pre-launch marketing would
majorly be to cultivate a sense of anticipation about the general public about
Loca Lime. Similarly ads in print media and Billboards would be made in a way
that would raise curiosity among the people about the product.
Launch Execution:
The initial launch in the last week of January would see the product being
launched in all of the above mentioned cities. At the start the product would be
available in all the super markets in the mentioned cities, where we would set up
exclusive vending stands with the company representative sales personnel
selling the products to the consumer themselves and getting feedback from the
consumers as well. This activity would continue for a week in all the cities after
which the product will be launched city wide, covering most of the retail shops
around each of the city.
Additionally, in our post launch promotion we will also use Coke Studio to
endorse Loca lime that would be a good way to pitch this new product to the
fans of Coke Studio. Apart from all of this we will be continuously on the look for
possible ventures that can add to the customer base and recognition of Loca
Lime.
Budgets:
BRAND ELEMENT
COMMUNICATION STRATEGY
The Coca-Cola Company will use different sources to communicate with their
target market which will include television, newspapers and billboards. When we
launch Loco Limey we intend to use teasers to generate interest in the upcoming
product by the use of the above mentioned forms of media. TVCs will be run on
the prominent TV channels in addition to flyers and banners all across the major
cities of Pakistan like Lahore, Karachi, Islamabad and Quetta so that they
consumers are aware of the fact that Coca-Cola is launching a new product and
generate hype and anticipation. Moreover, Coca-Cola plans to hire Aisam Ul Haq
as the brand ambassador of Loca Lime as he is an embodiment of good energy
that Loca Lime promises to enrich your life with, in addition to being a role model
for the Pakistani youth. Also it is intended to give Loca Lime a healthy image in
the minds of the consumers as it being promoted by a sports figure of Pakistan.
Communication Objective
The Coca-Cola Company uses sources like TV, billboards, newspaper
advertisements and promotional campaigns to attract the customers and create
product awareness about their new products. Coca-Cola tells the customers that
their products give you energy, good taste and a good life to enjoy. It also gives
out the message that the products are good for your health and in addition to
enjoying the taste you are also taking care of your body.
Advertisements on TV channels
One of the major forms of media that Coca-Cola promotes its products through is
through television advertisements as it is the most popular of all forms of media
and is watched by the general public. Hence, it is definitely a good way of
communicating to the target market of Loca Lime in Pakistan. Before deciding on
the timings of the advertisements, Coca-Cola will keep in mind the type of
customers that they wish to attract, the times they watch TV and the timings of
the competitor’s advertisements. In order to reach out to their specific target
market Loca Lime advertisements will be shown on the leading TV channels Geo,
26
ARY, PTV and AAG since these hold the highest rank in terms of popularity
among the youth of Pakistan. Moreover, before the launch the teasers of Loca
Limey will be run on these channels to increase the customer interest and
generate anticipation.
Newspapers
Coca-Cola will also advertise their new product Loca Limey through
advertisements in the newspapers as a large number of the consumer base
reads newspapers on a daily basis. As with the television advertisements, Coca-
Cola will keep take a look at the number and placement of the competitor’s
advertisements in order to occupy a favourable position in the newspapers as to
reach out to their customers more effectively. They’ll also analyse the types of
newspapers that their competitors place their advertisements in so that they can
plan better as to how to fare better than their competitors in terms of
communication. For this purpose, Loca Lime will have advertisements in The
News and Dawn which are two of the most popular newspapers of Pakistan and
are widely read by everyone. Teasers will also be printed in these newspapers
prior to the launch of Loca Lime
Billboards
Coca-Cola also plans to attract their customers through advertising on billboards
in the main cities because it is a highly effective way of reaching out to the
target market. This will be done by placing them in strategic places where there
a large number of customers throughout the day like a public place or near busy
roads etc. 500 sq. ft. billboards will be used in each region in addition to flyers
along the main roads in order to ensure that the maximum number of people see
it on their way to work or when they’re out to have fun. Aisam Ul Haq, our brand
ambassador will be featured on both the teasers and the post-launch
advertisements.
Marketing Budget
TV Budget –
As Loco Lime’s main competitor are Nestle juices who increase their
advertisements during the summers when the juice season is at its peak, Loco
Lime will follow the same pattern, advertising heavily during the summers on TV
channels at different timings. The total advertising expense for TV channels will
be PKR 752,226.
TV Budget
Channel Timing No. of ads Price/mint
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Newspapers –
Coca-Cola will advertise in The News, Dawn and AAG concentrating on the
weekends for their newspaper advertisements. The total advertisement expense
per day for the newspapers would be PKR 2,112,920.
Newspaper Budget
News Papers Size Day Prices
27x
Dawn 4 Sunday PKR 430,920
27x
The News 4 Sunday PKR 1,682,000
Billboards –
Coca-Cola will cover each region with 500 sq. ft. billboard since this is the
strategy employed by their competitor Nestle. All the major cities will have
billboards over flyways and on busy roads to attract customers. The three
different rates of billboards are PKR 40000, 70000 and 125000. The total
estimated cost of billboard advertisements for Loca Lime will come to PKR
2,600,000.
Distribution Costs –
Coca-Cola will also pay its distributors to carry Loca Lime along with the other
products of Coke. High-end retailers will be chosen initially in order to create an
‘exclusive’ image of the brand to position it as healthy in the minds of the
consumers; a product with healthy ingredients. Later on, after the initial launch it
can be expanded to cover more cities in order to cater to a larger customer base
and indulge in mass marketing to generate the maximum revenues. The
distributors of Loca Lime will be provided with freezers and coolers in order to
chill the drink properly prior to its sale. Distributors will also be given incentives
to place Loca Lime at strategic places in the shelf in order to catch the eye of the
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customers. The estimated cost of distribution for Loca Lime in the first year will
be PKR 740,000,000.
Brand Ambassador –
As it is mentioned above, Aisam Ul Haq will be hired as the face of Loca Lime in
Pakistan and the Coca Cola Company will enter into a yearlong contract with him
estimated to cost around PKR 5,000,000.
Price Structure
(Consumer Price)
200ml PKR 20
500ml PKR 35
1000ml PKR 70
CONTROL
There is no planning without control. We plan to use Marketing Control to
manipulate our marketing plans in order to efficiently reach out original goals.
The basic blueprint involves drawing up goals that the campaign is designed to
meet and then drawing up the plans and strategies that are intended to achieve
those goals. If those plans start to fall short of the desired standards, they then
need to be adjusted to get the campaign once again pointed in the right
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direction. Marketingcontrol involves the analysis of where the original plans are
falling short and the steps taken to correct those problems.
There are many methods of achieving marketingcontrol, which can include but
are not limited to;
• Market Research
• Market share analysis.
• Sales analysis.
• Quality controls.
• Budgets.
• Ratio analysis.
• Marketing information systems (MKIS).
• Feedback from customers’ satisfaction surveys.
• Cash flow statements.
• Customer Relationship Management (CRM) systems.
• Sales per thousand customers, per factory, by segment.
• Location of buyers and potential buyers.
• Activities of competitors to aspects of our plan.
• Distributor support.
• Performance of any promotional activities.
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Market Research
We plan to use Marketing research to gather and analyze data to see if Loco
Lime is meeting the needs of the marketplace. Research is the most obvious tool
for identification of how well the marketing campaign is proceeding. We plan to
do it through customer surveys or product testing. Focus groups are another
popular way of ascertaining if our product is hitting its desired target audience or
if the marketing techniques are getting across the desired message. We’ll get to
know if our customers are satisfied with our product and find ways to improve it
by changing the packaging etc. if they are not.
Testing
An important marketing control regarding our new product Loca Lime is test
marketing. Before spending large amounts of money to produce and market
Loca Lime, Coca Cola will test the product on a small scale by using focus groups
or a limited distribution. This can help Coca Cola predict the success or failure of
the Loca Lime.
Budgets
Pricing Strategy
Pricing may need to be adjusted to meet changes in the market or to maintain
profitability. If Loca Lime’s chief competitor implements a significant price
reduction, Loca Lime may be forced to do the same to maintain market share.
Conversely, if production costs rise, Loca Lime may be forced to increase prices
to remain profitable.
Promotion Strategy
We may also need to adjust our promotion or advertising strategy to change
consumer perception and increase sales. For example, if Coca Cola finds out that
the sales of Loca Lime are being lost to a competitor, it can gear up its promotion
strategy to gain back its lost customers.
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