Project in Marketing

Submitted to:
Sir Bob Torres
Submitted by:
Azurin, Paula Beatriz L.
Baylon, Jocelyn
Camba, Denise B.
De Mesa, Ayana Therese
Dellosa, Mark Kevin U.
Diola, Ina Patricia B.
Marketing Plan
Executive Summary

The marketing
plan for Virgin Cola
has been created by
the 2LM team for an
effective formal full-
entry strategy for
Virgin Cola in the
Philippine soft drink
market.
 Executive Summary
Although the Virgin Cola has already
been launched in the Philippine market
years before, the firm has lacked sufficient
efforts in promoting brand awareness
which led to its subsequent failure.
 Executive Summary
Effective brand
positioning, influentia
l advertising and
persuasive
promotions will
actually be of big
help in competing
with the well-known
local cola brands.
Executive Summary
With these at
hand, Virgin Cola
will be expected to
increase its market
share, win new
customers, and
maintain brand
loyalty to Virgin
Cola over the next 5
years.
 Table of Contents
I. Introduction
• Background Information
• History
• Mission – Vision
• Product
• Virgin Cola in the Philippines
II. Situational Analysis
• MarketMarket Size Size
• Beverage Market in the Philippines
• Market Demographics
• Market Trends
• Market Share
• Soft Drink Brands in the Philippines
• SWOT Analysis
• Consumer Behavior in the Philippines
 Table of Contents
III. Marketing Strategies
• Strategy Pyramid
• Marketing Objectives
• Marketing Goals
• Market Segmentation
• Target Marketing
• Repositioning
• Repackaging
• Marketing Mix
o Pricing
o Promotion
o Channels ofChannel of Distribution
Distribution
 Table of Contents
IV. Financial Analysis
• Expense Forecast
• Profit Forecast
V. Controls
• Implementation Milestone
1. Introduction
 Virgin Cola
Type Cola
Manufacturer Virgin Drinks Silver Spring
Country of Origin United Kingdom
Year Introduced 1994
Variants Diet Virgin Cola
Local Related Coca-Cola
Products Pepsi
Pop Cola
RC Cola
 History
• Virgin Cola was first released
in 1994 in UK by Richard
Branson, to compete with
Coca-Cola and Pepsi.

• It was actually set up during

the early 1990’s in conjunction
with Cott, a Canadian
Company that specializes in
bottling own-label drinks.
• With a few months of its release, Virgin Cola had a 50%
market share in the outlets that sold it. It went to be
launched in France, Belgium and South Africa.

• In the US, Virgin Cola was first introduced in 1998. For

the launch, Richard Branson rode in New York Time
Square atop a tank promising a battle with Coca-Cola and
Pepsi.
• Richard Branson decided to grant the local bottling
franchise of Virgin Cola to Lucio Tan’s Interbev
Group.
Company’s Mission (UK)
• The Virgin Cola’s mission is to be the consumer
champion with the help of their brand
values, which are value for money, good
quality, brilliant customer
service, innovative, competitively challenging
and fun.
 Virgin Group Brand Values
• Fun
• enjoyment and humor, not offensive and incompetent
• Value for Money
• Simple, not cheap
• Quality
• Attention to detail, not expensive for the sake of it
• Innovation
• challenging convention, not different for the sake of being
different
• Competitive Challenge
• responding to consumer needs, not being irrelevant
• Brilliant Customer Service
• empowered, not unprofessional people
 Brand Name

• The brand name "Virgin" arose when

Branson and a partner were starting
their first business, a record shop.
They considered themselves virgins in
business.
 Logo

• The Virgin logo was originally sketched on

a paper napkin and remains largely
unchanged from the original style used.
 Product

• Virgin Cola is the flagship cola of the Virgin

Drinks.
• It is a carbonated cola soft drink launched in
1994. It is available in cans and bottles.
• It comes in different flavors.
Virgin Cola Flavors
 Virgin Cola (Original)
List of Ingredients
Carbonated water Caffeine
Sugar Acesulfame -k
Phosphoric acid Phenylalanine
Sodium Benzoate Phenylketonurics
Aspartame Natural Flavoring

Color = Caramel
 Virgin Cola (blue)

List of Ingredients
Carbonated water Flavorings
Sugar Sodium Citrate
Citric acid
Antioxidant = Ascorbic Acid
Preservative = Sodium Benzoate
 Virgin Cola (Orange)
List of Ingredients
Carbonated Citric Acid
water
Sugar
Stabilizers:
Acacia Gum Flavoring
Preservative: Sodium Benzoate
Orange Coloring
 Taste
• Virgin Cola has a sweet taste that
is not as gassy as other brands. It
does not leave an aftertaste.
 Packaging
Can Bottles
- The bottle which contained the
- Virgin Cola is packaged in red
cola was designed with curves to
colored can with the Product’s
resemble Pamela Anderson’s sexy
name in white bold letters.
body who was at the height of
her popularity in the UK at the
time of the Virgin Cola’s release.
 Product Range
Size Unit per case Type Flavour

500 ml 12 Sparkling Cola

500 ml 12 Sparkling Diet Cola

500 ml 6 Pack 18 Sparkling Cola

500 ml 6 Pack 18 Sparkling Diet Cola

2L 6 Sparkling Cola
2L 6 Sparkling Diet Cola
Virgin Cola in the Philippines

• Lucio Tan’s Interbev Group was granted

the local bottling franchise of Virgin Cola in
the Philippines.
• The Virgin Cola is distributed to all Lucio
Tan’s businesses.
• It could also be found in some stores like
7/11.
2. Situational
Analysis
 Current Situation

Virgin cola has long been existent

in the Philippine market. Its formal
launching was in 2004, backed by
Lucio Tan injecting Php. 1 B into the
launching project. However, due to
lack of aggressive follow through
advertisements the product line’s
market presence was diminished.
 As of now the carbonated soft drink
industry faces the perils of a new trend among
consumers. It is the trend of healthy living and
how readily and easily the market accepted it.
Virgin Cola is not immune from this threat.
Not only must Virgin Cola reintroduce itself to
the market it must be able to deal with this
trend along with competing with other market
competitors.
 Market Size
• According to the National Statistics Office
(NSO), the Philippine population is
projected at 88.6 million for 2008 with an
average growth rate of 2.32%. Over 60 %
of the population is between 14 to 60 years
old, which means that the Philippine
beverage market is at mass.
 Beverage Market
• According to the National Statistical Coordination
Board, 46.58 % of the total family expenditure are used
for food and beverage (includes consumption at
home, school and work).
Family Expenses
Food

House Rental
18.32%
Transportation and
3.83% Communication
46.58%
6% Electricity, Water, Fuel

7.52% Education

16.80%
Other needs
 Market Demographics
• Population: 88,574,614
• Gender:
– Male – 45,483,100
– Female – 44,974,100
• Age structure
– 0-14 years: 35.5% (male 17,392,780/female 16,708,255)
– 15-64 years: (male 28,986,232/female 29,076,329)
– 65 years and over: 4.1% (male 1,682,485/female 2,215,602)
• Median age
– total: 22.3 years
– male: 21.8 years
– female: 22.8 years
• Population growth rate - 2.04%
• Birth rate - 26.42 births/1,000 population
• Death rate - 5.15 deaths/1,000 population
Market Demographics
• Age Group (NSO)

0–4 9,669,502 45 - 49 3,330,054

5–9 9,694,781 50 - 54 2,622,316
10 – 14 8,949,614 55 - 59 1,903,649
15 – 19 8,017,298 60 - 64 1,633,150
20 – 24 7,069,403 65 - 69 1,138,843
25 – 29 6,071,089 70 - 74 797,970
30 - 34 5,546,294 75 – 79 505,356
35 – 39 4,901,023 80 and over 490,241
40 - 44 4,163,494
 Market Trends
• There is a rise of health consciousness as well
as the fitness trend.
• The product’s/products’ after taste, strategic
packaging, flavor and ingredients are key sales
considerations
• Filipino soft drinks companies go international
by pursuing expansion
• Use of sports as marketing tool
Soft drink Brands in the Philippines

• Coca-Cola – leading soft drink in the market

• Pepsi
• Sarsi - a Sarsaparilla rootbeer originally made by
Cosmos Bottling, now part of Coca-Cola
• Jaz Cola - a low-cost cola flavored beverage made
by Coca-Cola
• Pop Cola - a low-cost cola flavored beverage from
Cosmos
• Cheers - a low-cost citrus flavored soda from
Cosmos
Soft drink Brands in the Philippines

• Royal - the first CSD in the country, made in 1922 by

San Miguel Corporation, now a Coca-Cola brand
• Lift - a citrus flavored soda by Coca-Cola
• Zest-O Corporation - produces various drinks including a
Fruit soda, Cola, Root beer, a calamansi-flavored soda
and a dalandan-flavored soda.
• Teem - low cost citrus flavored soda popular in the
1970s
• Lemo-Lime - low cost citrus flavored soda popular in the
1970s
• RC cola - the cheapest soft drink in the market
 Market Share
• As of 2008, the leading brand of
carbonated drinks is Coca – cola
with 80%; followed by Pepsi Cola
with 15%, RC Cola with 3% and
other brands with 2%.
Market Share
Sales

Coca - cola
Pepsi Cola
RC Cola
Others
 SWOT Analysis

Virgin Cola’s
strength, weaknesses, opport
unities and threats are as
follows:
 Strengths:
• The power of the brand name;

• Fierce promotion techniques; and

• Innovation through image and packaging.

 Weaknesses:
• Too much dependence and emphasis on
the brand name

• Incongruence between strategic and

tactical levels; and

• Too reliant upon too few distribution

outlets.
 Opportunities:
• Diversification into new ranges of
Virgin Cola products
• Increasing consumption levels of
soft drinks
• The ability to gain more market
share
 Threats:
• Intense competition (the cola wars)

• US saturated soft drinks market

 SWOT of Virgin Cola’s
Competitors
Coca Cola Pepsi RC Pop Cola

1. Extensive bottling 1. Brand Strength 1. Low price 1. Low price

Strength system 2. Effective stride in new 2. Concentrated Brand
2. Packaging markets Identity
3. Brand Strength 3. Strong existing 3. Focused on Mass
distribution channels. Market

1. Health issues 1. Reliant upon line 1. Does not cater to 1. Does not cater to
Weakness extensions. upper class market upper class market
2. Reliant upon particular 2. Selective advertising 2. selective advertising
carbonated drinks. 3. Not available in most 3. not available in most
3. Brand dilution entrance fast food areas fast food areas
into non core 4. Health issue
categories.
4. Saturation of
carbonated soft drink
segment.
 SWOT of Virgin Cola’s
Competitors
Coca Cola Pepsi RC Pop Cola
1. Extensive target 1. Further 1. Expansion of 1. More bottling
Opportunities market expansion of target market to systems for further
market share international expansion into the
2. Brand is areas local market
attractive to
global partners

1. Other alternative 1. Strong 1. Strong Other alternative

Threats beverages competition competition beverages
2. Potential health
issues
Virgin Cola’s Current Product
Strategy
Core Benefit:
A refreshing non alcoholic beverage.
Actual Product:
– Brand Name: Virgin Cola
– Quality Level: Excellent
– Design and Packaging:
• Regular (240 mL)
– Feature: Caffeine content, dark coloring (Aspartame and
caramel)
Augmented Product:
Quenching one’s thirst, energy drink
Current Brand Positioning

Virgin Cola is currently one of the cheapest

cola brands being sold in the Philippine market.
The image being propagated by the brand is
not wholesome especially seen in the shape of
the bottle which was patterned after Pamela
Anderson’s body.
 Current Branding
The branding strategy adopted by Virgin
Cola in its launch in the Philippines is the
manufacturer’s brand strategy wherein the
products carry the name of the company with
certain differentiating elements added or
attached to the name. One example of this is
Virgin Red, Virgin Blue Spirit, etc.
 Current Packaging
Packaging’s primary purpose is to preserve
and protect the contents of the product until it
arrives in the hands of the final consumer. It has
added use of including the brand information
such as the label, size, and nutritional value of
the product, if any is possible. The focus of the
packaging is on the expansion of distribution by
means of offering Virgin Cola in a variety of
colors and sizes while maintaining the signature
shape of the Virgin Cola bottle.
Current Pricing Strategy
In the Philippines, Virgin Cola is under InterBev
which is owned by Lucio Tan. InterBev in turn is
under Asia Brewery. Virgin Cola is limited to only to
businesses owned by Lucio Tan such as the
Philippine Airlines. It has a minimal market share in
the country. It is targeted at the younger generation
but it can be consumed by different age groups. To
date, it only has one product offering in the market.
Virgin Cola Red– 240 mL
Virgin Blue Spirit – 240 mL
 Channels
• Virgin is a brand whose customer franchise is so strong that
it can be applied to a vast range of businesses.
• In other countries, the Virgin brand has been applied to
radio stations, record companies, retailers, airlines (such as
Virgin Atlantic, Virgin Blue), mobile phone
companies, broadband ISPs (Virgin Media), train
services, motor vehicle sales, credit cards, loans, life
insurance, car and pet insurance, home
insurance, mortgages, pensions, savings and
investments, music festivals, recreational experiences (such
as using a sheep dog to herd a flock of sheep, and now
space travel), network marketing businesses (e.g. Virgin
Cosmetics), and much more.
• In the Philippines, Virgin Cola sponsors TV programs like ABS
CBN’s morning talkshow “Ruffa and Ai.”
 Market Research Done by the
Interbev Group

Whenever a business attempts to implement a new marketing

plan, it must first address its target market and gather relevant information
in order to insure the efficiency and differentiation of the new plan from
the previous one.

Virgin Cola has done two aspects of market research namely

exploratory research, which tries to address problems encountered by the
company, and descriptive research, which identifies the market potential
of the product and the target market’s characteristics and how to best
cope with the ever changing market.

However, further research will be conducted after market

penetration to sustain the product against intense competition especially
during the growth and maturity stage.
Factors Influencing Consumer
Choice in the Philippines
In the decision making process, a
business must take into consideration
the factors that may influence the
consumers’ choice. Several factors
influence consumer choice and these
are psychological, socio cultural,
economic, and political.
 Psychological

Conservatism is
prevalent mindset
of the Philippine
society and is a
prime factor that
affects the
consumer’s choice.
Socio cultural

Filipino society
places much
importance on
family and
religion. It is a
communal
society.
 Economic

The retail
price of Virgin
cola is adapted
to the current
economic
situation of the
country.
 Political

New laws
regarding the
packaging and
distribution of the
products as well as
imposition of
additional taxes.
 Philippine Laws

• In the Philippines, there are certain

laws which limits the freedom of the
soft drink companies or manufacturer
in the market.
 R.A. No. 3720

• An act to ensure the safety and purity of foods,

drugs, and cosmetics being made available to the
public by creating the food and drug administration
which shall administer and enforce the laws
pertaining thereto.

• Chapter VII or the Definition and Standards for Food

promulgates regulations fixing and establishing for
any food, under its common or usual name so far as
practicable, a reasonable definition and standard of
identity, a reasonable standard of quality, and/or
reasonable standards of fill of container
 R.A. No. 623

• An Act to regulate the use of duly stamped

or marked bottles, boxes, casks, kegs,
barrels and other containers.

The Virgin Cola is subjected to this law

since they make use of cans and bottles as
containers of their product.
 R.A. No. 6361

• An act providing for the fixing of the

maximum selling price of essential articles
or commodities, creating the price control
council, and for other purposes.

Section 1.(2) states that essential food and

foodstuffs including milk, soft drinks and
other beverages are included.
3. Marketing
Strategies
Strategy Pyramid

Strategy

Tactics

Program
 Strategy Pyramid:

The Strategy Pyramid emphasizes the

practical importance of building a solid
marketing plan structure. Most marketing
plans are developed from the top-level
strategy first.
 Marketing Objective:

• The Marketing team of the Interbev

Group seeks to penetrate the Philippine
market by making the products
visible, accessible and suitable to the
Filipino taste and preference
 Marketing Goal:

• The Marketing team of the Interbev

Group seeks:
– To top the Philippine market for
beverages and encourage brand shifting
to our brand. And;
– To maintain brand excellence and achieve
maximum consumer satisfaction.
– To achieve 10% market share in five
years.
Market Segmentation
Segmentation Variables Data

Demographic
Age 15-35+
Gender Male; Female
Family size 5
Family life cycle Married; Single
Income Class B and C
Income Php. 2, 045,000
Education Elementary to College
Religion Roman Catholic, Muslim
Race Asian
Nationality Filipino
Segmentation Variables Data
Psychographic
Social Class Classes A to D
Lifestyle
Behavioral
Occasions Any time
Benefits Thirst quencher
User Status First Time User
Loyalty Status Brand loyal to market leader

Readiness Stage Unaware

 Target Market

• The target market of Virgin Cola in the

Philippines are Filipinos between 15-35
years of age belonging to classes B and C.
Secondary Market will include class D.

• Based on the Marketing demographics

presented in the beginning of the
presentation, the target market is
13,017,909 Filipinos.
Computation for the Target Market

• Population = 88,574,614
• Ages 15 to 35 = 34.91%
• Classes B and C = 42.1%

• Computation
88,574,614 x 0.3491 = 30,921,398
30,921,398 x 0.4210 = 13,017,909
 New Product Strategy
• For the launch of Virgin Cola, we opt to introduce
the basic product which is Virgin Red. New
flavors will be introduced after three years which
are Virgin Blue and Virgin Orange.
• Virgin Blue will be launched on a summer
because the color suggests „a refreshing and
thirst-quenching‟ feeling
• Virgin Orange, on the other hand, will be
introduced on Halloween because the color
suggest that of a pumpkin and thus is very fitting
to the event.
 Repositioning

Once the market segmentation (i.e target

market, product definition) has been decided
upon by the company, the positioning process
can now take place. Positioning is the process
of creating a product image that will stick to
the minds of the consumers relative to the
other competitors in the market. It helps the
consumers identify and differentiate one brand
from another by remembering the unique
characteristics of each brand.
 Virgin Cola will bank on symbolic
positioning wherein it will identify itself with
Philippine society and adhere to its norms and
trends. This is the approach that worked for
its competitor, Coca Cola. By managing to
position itself in line with the Filipino concept
of family, it has successfully penetrated the
Philippine market and thus takes up majority
of the Philippine market share.
 The societal context that Virgin Cola has to
work in is full of hurdles not only because of
intense competition but also the conservative
mindset of the people. Virgin Cola may have a
strong image and brand name. As stated earlier,
it is one of their strengths, however, in the
Philippine context, it can be the brand’s
weakness as well. It needs to position itself in a
subtler manner while maintaining its trademark
look and brand name.
 Repackaging

The trademark shape of the bottle will be

retained. However, the label’s design was
given a makeover. From the plain red color
that it used to carry, patterns and other
colors such as black and white were added.
This is not only to attract the customer’s
attention but also to give it a feel of
sophistication.
 Sizes

8 ounce 12 ounce 1.5 L

New Cover for bottles
 Bottle Caps

For Plastic Bottles For Glass Bottles

New Can Designs
 New Pricing Strategy

We will follow the strategy of the US

based Virgin Cola Company which is a
dollar less than Coke. In the Philippines, it’ll
be a peso less than Coke. Psychological
pricing is the strategy to be adopted
because Filipino consumers have a
tendency to patronize products that are
cheaper even if it is only less a peso.
 Suggested Retail Price

Brand

Size Coca Cola (SRP) Virgin (SRP)

8 ounce P8.00 P 7.00

12 ounce P11.00 P 10.00

1.5 P 36.00 P 35.00

Promotions
 Free Taste
• Upon its re-launch, Virgin Cola would be
available in all SM Malls wherein free taste
promotion would be conducted for a week.
 Press Conference

 There would be a Press conference for the re-launched

product wherein press people and famous people would
be invited and asked for their opinion about the product
(publicity).
Sponsorships in Local Events

Since we are planning to intensify Virgin Cola‟s

appeal to the market, particularly in the
provinces, which are not yet media corrupted, we are
planning to conduct activities sponsored by Virgin
Cola. Such would be Musicfests, Pa-Binggong
Bayan, Sportsfests, hosting Barrio fiestas, etc.
Product Endorser
 In relation to the previous entry, we
have decided to get an endorser
and spokesperson for the product.
She should be someone who would
serve as an epitome of the
character that Virgin Cola wants to
show the people- refreshing, pure,
desirable. And with these, we
thought of the perfect endorser for
the product- Sarah Geronimo. Just
like Virgin Cola, she is wholesome
enough to make the youth look up
to her.
Mysterious Billboards

Mysterious
and interesting
billboards will
be put in key
locations
before the
grand launch
of the product
to arouse
curiosity.
Other Billboard Designs:
Are you ready to
experience the
mystery within?
Other Billboard Designs:
Women aren’t the only ones that are
virgins... forests too. Let’s all help
save them.
Other Billboard Designs:

Anytime, anywhere,
YOU ARE ALWAYS IN..
Other Billboard Designs:

always

Heart
Other Billboard Designs:
I‟m
extremely
Selfish
Protective
Possessive
With my
Other Billboard Designs:

A WIFE
for my
HEART..
A

for
my thirst.
Other Billboard Designs:

How lucky could humans be?

 Suggested Tags:

• You’ll never go wrong with a Virgin.

• What else could come close? When you’ve
already got the Virgin
• No one else comes close. Virgin.
• Cola meets Virgin
• Satisfaction within. Virgin.
• Virgin cola, - kasama mo sa puyatan
• Always in- Virgin
Television Commercials

Lively and effective TVCs will be aired in the major TV

stations- ABS-CBN, GMA7, QTV11, TV5 and Studio
23 particularly during noontime, when everyone would
be craving for a refreshing drink to quench their thirst
caused by the summer heat.
Sample 1 T.V. Commercial
• A male astronaut was
exploring Mars when a big
ugly monstrous alien
approached him. The alien
was frightening and seemed
angry. The astronaut was
scared and took a bottle of
virgin cola out of his bag and
handed it to the alien. The
alien drank it and
transformed to a very
beautiful, elegant, „virgin
like‟ woman. She smiled and
said “thank you”. Then she
walked away.
Sample 2 T.V. Commercial

• A student was having a hard time

studying his history book. He rests
for a while and drank his virgin cola.
He smiles while drinking and his
sweat disappears. (the camera will
turn black and white, light waves
cover the screen,). After drinking
his virgin cola, he opens his eyes
and sees katipuneros running
towards him. He panics and to try to
stop them from attacking him by
offering his Virgin cola. The leader
of the group tastes it and gave some
to his subordinates. At first , the
student thought he had established
peace but instead, the katipunero‟s
wanted more and ran after him.
Sample 3 T.V. Commercial

• Sarah and John are having

their shooting for a very sweet
movie. When the kissing
scene came and John’s lips
are already very close to
Sarah’s, Sara immediately
blocked his kiss with a cold
virgin cola bottle. The camera
will focus to the Virgin Cola
bottle, then Sarah drinks and
smiles at John, stopping the
kiss.
Magazine and Newspaper
Advertisements
 There would be also print Ads in
glossy magazines, particularly in
magazines like
Candy, Seventeen, and the likes
since their readers are mostly the
youth, which is Virgin Cola’s
target market too.

 Likewise, print ads in

newspapers would be
available, particularly in
broadsheets such as Philippine
Star and Philippine Daily
Inquirer, and in decent tabloids
such as People’s Journal and
Pilipino Star Ngayon, so that
more people would be aware of
the product’s existence.
Philippine Airlines

We opt to continue

using Virgin Cola and
Asian Brewery
Beverages to be the
only available drinks
in Philippine Airlines.
Internet Advertisements
Internet
Advertisements
(Friendster, Yahoo, Go
ogle, Multiply and
Entertainment
Websites) are cost-
efficient and very
effective when it
comes to reaching the
target market.
Vehicle Advertisements
Vehicle
Advertisements
(Virgin Cola
advertisements on
LRTs, MRTs, jeepney
s, tricycles, taxies, b
uses, private-owned
cars)
Radio Advertisements

• LoveRadio,
• WRR,
• StarFM,
• LSFM,
• EnergyFM
 University Caravans
Virgin Cola Caravans in
different universities could
also help in the promotion of
the product by simply
sponsoring leadership or
entrepreneurial seminars to
the students.
Afterwards, notebooks, ball
pens, fans, pins with “I Heart
Virgin Cola” written on
them and other stuffs with
Virgin Cola logos could be
given away for these help
the market remember the
product.
 Bottle Cap Freebies
 An effective promotional gimmick would be “tansan
contest”. Written under selected tansans would be:
– Free movie entrance
– Free discount coupons on selected restaurants
– Free discount coupons on selected salons
– Free tickets to big concerts to be sponsored by Virgin
Cola
– Free items with Virgin Cola logos
(thermos, bags, shades, coin purse, shirts etc.)
– …and the like.
 Consumers can redeem the prizes in selected retail
outlets.
Public Relations
Collaboration with NGO’s
We would also like to retain the wholesomeness and
live out the product‟s name since the youth is our
target market. That‟s why we are also thinking of
collaborating with NGOs like Gabriela to have
awareness seminars regarding social justice or of the
rights of women, especially during this
month, March, which is Women‟s month.
Virgin Forests Preservation

 We are also thinking of teaming up with groups that aim to

save our country‟s Virgin forests. Since we would like to
live out the product‟s name, we are planning to help these
groups preserve our forests by giving donations. Virgin
cola would promote the protection and rehabilitation of
these forests for longer lifespan and future proper utility.
This would be the company‟s charity work. This, at the
same time, would lower the taxes of the company.
Campaign with the Religious Sects

• Campaign with the Religious Sects and

donations for them, to support the fight for
VIRGINITY. Filipino society places much
importance on family and religion. It is a
communal society.
Channel of Distribution
Channel of Distribution

• Producer-Retailer-Customer
The retailer is the only
middleman involved in this channel
of distribution wherein the producer
lets the big retailers sell his
products to the consumers.
Channel of Distribution

Why Choose this Channel?

Only a few middlemen may be required

in launching a product that needs great
promotional efforts in its initial stage.

The nature and type of middleman also

counts, for a good retailer can help maximize
the volume of sales of a product.
Channel of Distribution

• Our group chose a sole retailer for

Virgin Cola in its launch:

• SM Malls
Why SM?

• It is the biggest mall chain in the

country.
• It attracts a large number of
potential consumers.
• It would be the best retailer of
Virgin cola because it could be of
great help in its fast penetration in
the market.
Channel of Distribution

After the Launch…

The people becomes aware of Virgin Cola‟s
existence in the market.
Asia Brewery can now retail in different
stores, particularly in the provinces.
We chose not to concentrate that much in Metro
Manila because competing with Coca-cola, the no.1
soft drink product in the city, would not be easy.
Virgin Cola will first get the larger part of the
market, if not monopolize, in the provinces while
penetrating slowly towards the center, which is Metro
Manila.
Channel of Distribution
4. Financial Analysis
Sales Forecast
Projected Sales for a Year

• Assuming that all target market will buy 12

ounce Virgin Cola for P10.00 thrice a week
for a year:

• Target Market = 13,017,909

• Frequency per week = 3
• Number of weeks in a year = 48 weeks
• Price = P 10.00
• Projected Sale = 13,017,909 x 3 x 48 x 10
= P 18,745,788,960.00
 Projected Sales in 5 Years
Total Profit in 5 67,828,944,800.0
Years 0
Expenses Forecast
 2009-2010 2010-2011 2011-2012 2012-2013 2013-1014

Advertising 4,245,000,000 4,245,000,000 4,245,000,000 4,245,000,000 4,245,000,000

Magazines 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Newspaper 90,000,000 90,000,000 90,000,000 90,000,000 90,000,000

Posters 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Internet 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Radio 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000

TV 4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000 4,000,000,000

Artwork & Production 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000

Billboard 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Transport Advertising 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000
 2009-2010 2010-2011 2011-2012 2012-2013 2013-1014
VIRGIN PROJECTS
(public relations) 63,000,000 63,000,000 63,000,000 63,000,000 63,000,000

WOMENS 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Gabriela
CATW-Asia Pacific
VIRGIN FOREST 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000
DENR
GENESSYS
Haribon Foundation
VIRGIN
FOUNDATION 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000
*Scholarship for
Deserving Students
*Home for the
Homeless Children
Campaign with
Religious Sects 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
 2009-2010 2010-2011 2011-2012 2012-2013 2013-1014
VIRGIN PROJECTS
(public relations) 63,000,000 63,000,000 63,000,000 63,000,000 63,000,000

WOMENS 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000

Gabriela
CATW-Asia Pacific
VIRGIN FOREST 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000
DENR
GENESSYS
Haribon Foundation
VIRGIN
FOUNDATION 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000
*Scholarship for
Deserving Students
*Home for the
Homeless Children
Campaign with
Religious Sects 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000
 2009-2010 2010-2011 2011-2012 2012-2013 2013-1014

PROMOTIONS 265,000,000 265,000,000 265,000,000 265,000,000 265,000,000

Promos 205,000,000 205,000,000 205,000,000 205,000,000 205,000,000

Cash Rewards
Automobile Reward
Gadgets Reward
Free Tastes
Mall Tour

Sponsorship 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000

University Events
Concerts
Musicfest
Sportsfest
 2009-2010 2010-2011 2011-2012 2012-2013 2013-1014

PACKAGING 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000

LABELING 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000

ENDORSERS 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000

 2009-2010 2010-2011 2011-2012 2012-2013 2013-1014

Total 5,180,000,000 5,180,000,000 5,180,000,000 5,180,000,000 5,180,000,000

25,900,000,000
Profit Forecast
 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

Expenditures 5,180,000,000.00 5,180,000,000.00 5,180,000,000.00 5,180,000,000.00 5,180,000,000.00

Sales 18,745,788,960.00 18,745,788,960.00 18,745,788,960.00 18,745,788,960.00 18,745,788,960.00

Profit 13,565,788,960.00 13,565,788,960.00 13,565,788,960.00 13,565,788,960.00 13,565,788,960.00

5. Controls
Implementation Milestone

• After five years of successful advertising

we opt to minimize the number of
advertisements in order to lessen
expenditures. On the other hand, we
intend to employ international artists as
endorsers.
• Moreover, in the next five years, we
intend to gain 20% market shares.
• Also, to introduce new flavors under the
banner of “Virgin Forest”.
• Also, we would like to showcase
achievements of our sponsored
organizations in our future commercials,
under the banner of „ Virgin Cola Cares‟.
End of Presentation