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â ´Bubble Buzzµ will be marketed as unique functional
drink while striving to reinforce the company·s status as
the leader.
â The marketing strategies will enable to reach a market
size of an estimated 7 million people (targeted) with a
forecasted sales growth prospect of 15% over the next 4
years.
â Success will be reflected by a sizeable capture of market
shares within this market, Export potential will be
considered in China.
 åå  



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â The Coca-Cola Company·s core undertaking is to benefit and
refresh everyone it reaches.
â Founded in 1886, we are the world·s 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.
â Our corporate headquarters are established in Atlanta, and we
are holding local operations in over 200 countries around the
world.
â Our activities cover all sectors of the beverage industry. We are
the second leading player in functional and Asian specialty
drinks, while ranking number one in value for the ready-to-
drink tea sector.
O

 





 
 












 
â ´Bubble Buzzµ will be positioned as the only && 

!!
. The beverage will have a green tea base with
enhanced fruit flavors as well as tapioca pearls. The strategic role
of Bubble Buzz focuses on three objectives:
1.To stay at the forefront as the market leader in innovative product
introductions and successful product launches;
2.To strengthen and satisfy the needs of consumers with a new eye-
catching and functional product;
3. To become the market leader in the functional drinks segment
with increased market shares.
 ååå 



å 
 !
 
 
Consumption analysis. Segment identification
Trend analysis. Segment needs
SWOT analysis
Segment trends
Strengths
Weaknesses


 
Opportunities
Treats
Barriers to entry
'


'


â According to BIA, Taiwan's beverage market was worth
almost US$1.5 billion in 2006 which represented 3.1
percent growth over 2005. Tea products were most
popular, with sales of more than US$600 million or 42
percent of the total market.
â A Web site of the privately run Food Industrial Research
and Development Institute indicated that 32 beverage
manufacturers launching new products in 2006 focused
on tea drinks and out of 327 new "ready-to-drink"
products were introduced, 119 were tea drinks,
predominantly green, milk and fruit-flavored teas.
!'

 



p Through the early 1960s, soft drinks were synonymous with ´colasµ in the
mind of consumers.
p In the 1980s and 1990s, however, other beverages became more popular.
Coca-Cola and Pepsi responded by expanding their offerings through
alliances.
p Today, while the soft drink industry·s value has increased in 2004, the
volume sales of carbonated soft drinks has declined due to a large
proportion of consumers
p Companies have been actively engaged in new product developments in
order to counter the growing concerns about negative health impacts of
high-fructose drinks, but also to increase the demand in a market where
product offerings are quickly maturing.
p New flavor introductions and health-conscious formulations have been
launched in an attempt to offset the decline in carbonated soft drink sales.


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ÊNew product introductions ÊStrong competition
ÊBrand is attractive to global partners ÊPotential health issues
ÊFree trade


 
o
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â The Coca-Cola brand is unarguably one of the most
recognizable brands in the 200 countries where it
sells its products. The strong brand name is one of
the basis for the company·s competitive advantage
on several of its core markets.
 
  

â Coca-Cola has partnered with several companies in
order to increase the ability to react to demands and
changes in the markets of iced tea, coffee and juices.
´ 

In 2008, Total revenues approximately $31.9
billion, an 10.7% increase from 2007. Gross
profit totaled $20.6 billion in 2008. The
company generated $8,446 million from its
operating activities and re-invests heavily into
its business. The ability to generate significant
cash flows is one of the its key
strengths.
 0)
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Coca-Cola has operations

worldwide and is well established
in its distribution channels
Therefore, a new product launch
can typically rely on the existing
distribution system in order to
reach the majority of its target
market while requiring no major
supply / delivery developments.
 ± 
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p Coca-Cola is relying on brand extensions increase sales in specific
lines, particularly its long-time carbonated soft drink.
$

 
 !
 
p The long-time presence of Coca-Cola·s beverage has established this
particular line as a flagship product. While the core Coke products
bring a solid base of sales and loyalty to the company, consumers·
expectations also become more and more anchored and single-lined.
  

â The tremendous amount of brands and new product being
introduced could diminish the value and differentiating strength
of each product that is being manufactured.
 

%%
& 
 
â The Coca-Cola Company is a truly global multinational business
giant. While some categories of products are distributed in many
areas of the globe geographical needs already require that these
global brands are heavily adapted to their target region.

 
%
 !
%
 

â Difficulty increase in the soft drinks segment to innovate and
create new products due to a lot of brands available .
â Analysis of the industry has shown that growth in the soft drinks
market becomes difficult and challenging when the conditions
and consumer trends cause a market demand that stays stagnant.
 



 
 
â The functional drinks market is one that particularly allows
more innovation opportunities and gives greater freedom for
creativity in the design, production, manufacturing,
distribution, promotion and retailing choices and processes.
 

  

!
  
â Coca-Cola enjoys a strong purchasing power over its suppliers,
and also attracts large partnerships with various levels of
consumer reach.
â Existing brand awareness also provides an international playing
field for powerful marketing strategies.


$
 

â Coca-Cola is competing in a global market that is characterized by an
oligopoly between several competitors. The fight for market shares
and sales in crowded markets becomes a complex one.
$
))

â Over the last few years, concerns over health issues have risen in the
media through an expanded and ever-growing network of ´knowledge
outputsµ .
â The move of the younger generation towards a healthier lifestyle call
for careful planning and decision-making in new product
developments.
$# 
 

â marge international competitors can come out with comparative
advantages.
â Trade organizations are also faced with public pressure which can
disrupt operations in one or more areas of the company.
 



Source: Beverage-
Beverage-Digest.com
 In 2008, Coca-Cola·s top competitors for the %
  industry
are PepsiCo (30.8%) and Pepper Snapple (15.3% of market). Coca-
Cola is leading with 42.7% of the total soft drinks market. Bubble
Buzz will launch into a currently unserved market which is until
now unexisting.

Pearl milk tea is the most popular beverage in Taiwan; However, people
know that pearl milk tea is including very high calorie and that is not
suitable of people nowadays => seeking some beverage that lower
calorie => we have an idea that mix juice and pearl will give a flash
sense to consumer and healthier.

The current market for   Bubble Tea is fragmented, since the
distribution is restricted to local outlets and selling points such as counters
and small Bubble Tea shops (Yoyo) in scattered locations across Taiwan.
  



Business practices Manufacturing

®Due to the number of ®Producing bottled Bubble Tea

competitors, it will be hard to requires sizeable 

prevent 
!)    for the specific needs
(especially from PepsiCo) of the manufacturing chain (from
ingredients to final packaging
®Given the wide array of brands specifications)
(  in the soft drink
market), it becomes a challenge for ®The marketing campaign to make
this unknown brand popular requires
Bubble Buzz to stand out
more  
 
than a traditional brand extension
  
  







 
%  Å A shift way from junk
Å RTD (Ready-to- Å ) foods and carbonated
drink) bottled needs drinks to a growing
Bubble Tea, to be Å

 interest for healthier or
established within beneficial products for the
the Functional mind and body.
Drinks sector.
 
å!""#
p `&*+
 ,
16.7% (male
1,996,905/female
1,844,611)
p *-&.+
 , 72.6% (male
8,416,300/female
8,267,675)
p .-
 

  , 10.7%
(male 1,183,382/female
1,265,474)
 
  
 $$ 
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®The only RTD bottled bubble tea available.

®Funky & eye-catching bottle
®Functional packaging,
®Premium-priced,
®Cool, new and unusual, unique drinking experience,
®Aspects of play (tapioca pearls, oversized colored
straw),
®Variety of flavors, sweet, refreshing, for hip & young
people, healthier alternative to heavy-sugar drinks.
å
& 



A. Marketing Objective
B. Marketing Program
Product Strategy.
Price Strategy.
Promotion Strategy.
Place (distribution) Strategy.
  &
& 
 '


The Objective of the marketing plan are
strategically centered around 3 criteria:
p To create a strong consumer awareness towards a
completely new bubble tea product from Coca-
Cola,
p To establish a wide brand recognition through the
capture of market shares in the functional drinks
segment,
p And to become the top market leader that
particular segment within the forecasted sales
figure.
  &
& 






)
 ,

â Bubble Tea beverage in a plastic bottle, ready-to-drink format.

)

 

â  : colorful, round shaped, prominent Bubble Buzz logo
written in modern font, catchphrases such as ´Think outside the
Bubbleµ and ´Get Your Buzzµ.
â  
: Bubble BuzzŒ, a Coca-Cola product
â  
 : energy, funky, cool, functional, original,
funny, healthy, etc.
â  
/: Coca-Cola provides a quality, consistent, innovative
and accessible soft drink reputation.

(
 & 



8  
%
:
Bubble Buzz is a low-learning product. With a strong marketing
campaign, ´sales will begin immediately and the benefits of the
purchase are readily understood. Since Bubble Buzz is prone to
product imitation, Coca-Cola·s strategy is to broaden
distribution quickly, which is currently feasible thanks to the
company·s high manufacturing capacity.

8 #
)(). ·
Food & beverage 8 Soft Drinks 8 Functional Drinks.
Bubble Buzz follows the practice of product modification. Coca-
Cola is introducing an existing beverage (bubble tea) but
redefines the drink with a new, more convenient package.
Bubble Tea will now become a widely available drink in multiple
retailing (distribution) channels.




The price strategy that will be undertaken should
consider the following aspects:
®Consumer demand
®The product lifecycle
®Potential substitutes
 



!"   

Å To initiate strong Å The promotional Å ´Think outside the

awareness about outputs will bubbleµ: Be old,
the launch of convey the clear Be riginal, Be
Bubble Buzz (10- message that ifferent, and Be
60 years old) ´Bubble Buzz is a 0ourself.
consumers. healthy drink for Å ´A good spirit in a
Å To win market sporty and young good body.µ
shares over our people who simply Å ´For the out-of-
top functional enjoy taking care the-ordinary
drinks competitor, of their body and individuals who
PepsiCo. life.µ like to challenge
themselves.µ


 



a. Product life cycle of Bubble Buzz:
â Bubble buzz is at its å  stage; we thus must inform consumers
in an effort to increase their level of awareness. Awareness is our primary
promotional objective. Then the following months after the launch of
Bubble Buzz, in its 1 ) stage, Coca-Cola will have to persuade the
consumer to buy the product, to gain preference and to solidify the
distribution.

b. Product Characteristics:
â 
â $

c. Stage of Buying decision:

â Our target consumer are at the pre-purchase stage: advertising is more
helpful at this stage instead of personal selling because advertising informs
the potential customer of the existence of the product and the seller, but in
this case the seller is already well known.
 


 !"2"
( 5(( # 
,(

 Personal selling
eb o ep
 Radio spos
eb o pr
Magazines/Newspaper
 Mid-Mar o n
ads
$ Television spos pr o ep
9 ample disribion pr o ep
: Poin of prchase pr and ep
 Odoors May o ep
 Pblic Relaions May o ep
 Road show g o end of ep
 Pbliciy nerne ll he ime
 


 !"2"
2  ! )

p To make Taiwanese p Radio is the most listened
retailers aware of Bubble media by students (based
Buzz so they can order it in on researches); the target
time for Summer time market would hear our
radio spot several times a
day. This will ease the
recognition of Bubble Buzz
in future promotion tools.
 


 !"2"
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p The target market will p To send a widespread
then match an image with message over Taiwan that
the name of the product Bubble Buzz is now
more easily. The available. Critical step in
recognition of Bubble Buzz the promotion.
will be faster.
 


 !"2"
ƒ 


  
 

p To get potential buyers to p Making a special section
try Bubble Buzz and to for the Bubble Buzz in
create an addiction to it. Grocery store will help the
new potential buyers to
find our product faster and
more easily.
 


 !"2"
  

p Putting products in specific
places where people hang
out will create an increased
)

awareness of Bubble Buzz.
,  
p We will use special events
(sports and others) to
promote Bubble Buzz and
also to get in touch with
our potential market. It
will allow Coca-Cola to
interact with our
Consumers.
 


 !"2"
# )
When the summer 2"  


will come to its
Use of conferences and news
end, we will use
to make the general public
contest to give a
aware of the existence of
second "push" to
Bubble Buzz.
the sales of the
Bubble Buzz.
 '

 
-



 
2' 

Television Commercial 10,000,000 expense for TV per 15 seconds = 500,000 NT
Radio 3,600,000 NT 400,000/month x 3 months x 3 stations
Internet 420,000 Yahoo.tw, 12 months x NT 35,000/month
300,000 Yahoo Messenger Taiwan 12 months x NT 25,000/month
240,000 Yam 12 months x NT 20,000/month
Road show 1,200,000 Taipei, Taizhong, Kaohsiung, Hualian= 4 x NT
300,000/place during 2 months
Sales Promotion 6,800,000 2 months during road show activity, NT100,000
samplings/place, Cost per 1 sample = NT 17
Other Media 20,000,000 Such as personal selling, publicity, public relation, etc
Total 42,560,000 However, this amount is subject to change.
 
.

/



Bubble Buzz will be distributed through these channels:

®supermarkets,
®convenience stores,
®independent food stores,
®discount stores,
®multiple grocers,
®vending machines.

-å++å(
) 0å +
'

å
 

 
!"2"
. +/
Total Revenue (NT 25 @ 85,000,000 bottles 414 ml) 2,125.0
Sales disc. & Allow. (10%) 212.5
Net Sales 1,912.5
Cost of Sales (35.19%)-assume variable cost 673
Contribution Margin 1,239.5
Fixed Cost (38.23%) 731.1
Operating Profit 508.4
Other Expense / Income (1.96%) 37.5
Earnings before Tax 470.9
Tax Expense (assume 20%) 94.2
Earnings After Tax (Net Profit) 376.72





&3
  
%
,
X

 

 



6 = 35.19%.

  

 = 38.23%,
  
 
! 

= 1.96%
p Number of people in Taiwan (15-64 years old) = 16,683,975
p Market share for Coca cola = 42,7% (in 2008)
8 Market share in number of people = 16 mio x 42,7% = 7,124,057 people
p Assuming in the first year every customer will consume 12 bottle/year =
85,000,000 bottles (rounded)
$/ 
%

,
p C.M. per bottle = 673,000,000 / 85,000,000 = 7.92 NT
p  & : Fixed Cost / CMU = 731,100,000 / 7.92 = 92 million bottles
p 


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Based on the aforementioned analysis, Bubble Buzz
appears to be a profitable and innovative product with a strong
outlook for market share presence and segment growth
opportunity. Upon implementation of the marketing plan, the
Coca-Cola Company will regain increased market shares and
claim its targeted situational position of market leader in the
functional drinks segment as well as keeping its long-standing
consumer recognition for innovative and successful product
launches in diversified markets. Projected profits will be NT
377 million (see financial projections).
)

â The Coca-Cola Co. (Company Profile). Global Market Information Database
(Euromonitor). Jul 20, 2005. Accessed Feb 08, 2006.
â COSGROVE, Joanna. The 2005 Soft Drink Report. Beverage Industry. Mar 2005;
96; 3; p.22. Accessed via ABI/INFORM Global. Feb 08, 2006.
â The Coca-Cola Company. (Company Profile). Datamonitor. Jun 2005. Accessed Feb
08, 2006.
â John W.Mullins,Orvill C. Walker Jr and Harper W. Boyd Jr,Marketing
Management,sixth edition
â Kotler et al, Marketing Management ,fifth edition
â www.Beverage-Digest.com
â http://www.netmba.com/marketing/market/segmentation/
â http://www.reuters.com/article/healthNews/idUSSYD5846120080815
â Source: http://finance.aol.com/financials/the-coca-cola-
company/ko/nys/income-statement
â Source: www.indexmundi.com/Taiwan/Demographics_profile.html