Student Names & ID Juairia sharmin Misti (0930010) Mamta Sultana (0930226) Refat sultana (0930054) Jakiya Sultana

Sreeti (0930237) Nafizul Haque Niloy (0930007) Buland Shahjahan zeb(0930337)

Course Information
MKT-201 (Sec-3) Faculty: Md. Rajib Rahman

Date of submission: , May, 11, 2011 ACKNOWLEDGEMENTS

We want to give our thanks to our faculty, Md. Rajib Rahman who has supported us to prepare our assignment properly and guided us, as well. Because of his assist and support we could complete our assignment. In this report we have included the data that contains marketing plan for Namingos new brand of product(Bubble buzz)

The following marketing plan forms the basis for the introduction of an innovative new product by the NamingoCompany. The analysis allows us to outline the best strategies to follow for the achievement of the companys strategic goals. Bubble Buzz will be marketed as a unique functional drink while striving to reinforce the companys status as the leader in innovation and successful product launches. The marketing strategies will enable to reach a market size of an estimated 8,688,300 people (targeted) with a forecasted sales growth prospect of 7.3% over the next 4 years ($243,029.47 profits), while satisfying the needs of the still-unnerved market for ready-to-drink bubble tea. Success will be reflected by a sizeable capture of market shares within this market, while strategically carrying the company up to the top spot as the market leader in the functional drinks segment of soft drinks.

Mission Statement: As we are launching new product our first target is to satisfy the customer. Bangladesh is a Muslim country and its product is non alcoholic. So it is very easy to capture the market & also compete with other products. Also we want to serve our customer at a reasonable price & make the product affordable. Our main mission is satisfying our customer with this product & earns revenue. 2

The objectives of the marketing plan are strategically centered around 3 criteria: to create a strong consumer awareness towards a completely new bubble tea product from Namingo, to establish a wide brand recognition through the capture of market shares in

the functional drinks segment, and to become the top market leader in that particular segment within the forecasted sales figures.

Brief description of the company The Namingo Companys core undertaking is to benefit and refresh everyone it reaches. Founded in 2011, we will be the worlds leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, which are used to produce nearly 2- 3 beverage brands that make up for our wide portfolio. Our corporate headquarters are established in Bangladesh, and we are holding local operations in over bangladesh around the world. 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 .

Brief description of the new product, & strategic role in the future position of the company

Bubble Buzz will be a bottled beverage and will be positioned as the only ready-todrink Bubble Tea product available on the market. The beverage will have a green tea base with enhanced fruit flavors (passion fruit, strawberry and lime) as well as tapioca pearls. It will bring an entirely unique drinking experience to its consumers. It will present itself as a funky and unusual 2

alternative to traditional tea while providing the great taste of authentic fruit juice in an attractive and convenient packaging. The strategic role of Bubble Buzz for The Namingo Company is centered around three objectives: To stay at the forefront as the market leader in innovative product introductions

and successful product launches; To strengthen and satisfy the needs of the more adventurous Generation Y

consumers with a new eye-catching and functional product; To become the market leader in the functional drinks segment with increased

market shares.

COMPETITION
Namingo top competitors for the soft drinks industry are PepsiCo (31.6%) and CadburySchweppes (15.8% of market), which combined, represent about 48% of the total market (ref.9). Naming is leading with 43.7% of the total soft drinks market.In the functional drinks sector, PepsiCo is the current market leader with 60.5% of the market shares in 2011. . Bubble Buzz will launch into a currently unnerved subset of that market (RTD Ready-ToDrink Bubble Tea), which is until now unexacting. It is anticipated that the following brands

could potentially compete with Bubble Buzz in the functional drinks market: Brisk, Lipton Iced Tea, Sobe (owned by PepsiCo), as well as Snapples and Hawaiian Punch (owned by Cadbury/Schweppes). Bubble Buzz also creates a potential situation for cannibalism with Naming very own brands of iced tea and other functional drinks. The current market for traditional Bubble Tea is fragmented, since the distribution is restricted to local outlets and selling points such as counters and small Bubble Tea shops in 3 scattered locations across bangladesh. However, direct competition from these local players is not anticipated, since the marketing roll-out will initially emphasize on product awareness and both sales channels do not reach or serve the same market (retailing vs. counter/restoration). A strong distribution system already exists with namingo, since

partnerships and channels are already in place. This will facilitate the products reach into its target market. Further data concerning competing market shares and distribution channels are available in Appendix D(1-3).

TARGET MARKET
Segment identification: RTD (Ready-to-drink) bottled Bubble Tea, to be established within the Functional Drinks sector Segment needs: The product will cater to both physiological needs (hydrating and nutritional value) and social needs (perception of a social, fun drink with a sense of belonging within peer consumer groups) Segment trends: The current trends include a shift away from junk foods and carbonated drinks, a growing interest for healthier / beneficial products for the mind and body (ref. 10), the trend towards the availability of on-the-go products for those with an active

lifestyle, as well as the trend for personalization through customization (or for beverages, through variety-seeking in a wide introduction of flavours Segment growth potential: Statistical reports anticipate a segment growth of 1.72% over the next 9 years (2020) for the 10-29 years old subsets

Size of the segment (population): 8,688,300 (329,600 L). . 4

SEGMENTATION BUBBLE TEA

MAIN DIMENSIONS

VARIABLES AND BREAKDOWNS FOR

VARIABLES BREAKDOWNS

CANADIAN

CONSUMER MARKET OF

Region

Area size Density Climate Age Gender Income Occupatio n Education Race Home ownership Personality

Nationwide (all provinces and territories) with emphasis on urban / metropolitan areas, and adapted strategies for all geographical groups 5000-19,999 to 4,000,000+ Urban, suburban All (East, West) 10-29 years old (teenagers, studying age and young adults) Male and Female All under $30,000 Students; new graduated; new workers; young professionals Elementary 4th grade, High school, CEGEP and University All: Asian, Black, White, Native; other; with adapted strategy for Asian consumers already familiar with Bubble Tea Renting apartment/condo, living with parents (Highly discretionary in personal spending) Brand conscious, anchored in popular culture, inclined for differentiation and sophistication, very tolerant towards multiculturalism and internationalism (open-minded), quick maturation with modern products Most of them dependent on parents, no major responsibilities, highly influenced by peer groups, active life, importance of school, work and social life COMMUNICATION BENEFITS -Nutritional information -Informational text on history of product FUNCTIONAL BENEFITS -Healthier than soft drinks -Convenient, easy to take out PERCEPTUAL BENEFITS -Quality/Premium price -Social standing/good-looking Seasonal (peak in summer), daily-basis, weekly basis Non-user, regular user (current user through existing bar-shops) None, medium, strong

Lifestyle

Benefits

Usage rate User status Loyalty status

Positioning strategy: 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.

High Price

Non Flavor Flavor

Low price
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CUSTOMER ANALYSIS Profile: Name: mamun Date of Birth: 25.03.85 Age: 20 Occupation: University Student Country: Bangladesh Needs: Healthy lifestyle/Social belonging People: Roommate/Friends/Family Places: Clubs/Coffee shops/University/Gym Activities: Basketball Team Due to his active and quick-paced life, mamun wakes up at 6:30AM every morning. Today, he puts on his trendy Lacoste Polo and Diesel Jeans, and of course, he always has his Puma shoes on. After having called his friends with his new Samsung camera phone, he leaves his apartment and goes to his gym by metro, while listening to his favourite music that he downloaded to his iPod. Mamun usually likes to work out before he has to head to University. That way, he feels he has more energy and feels ready to confront his busy day attending courses and getting things done. On his way to school, Mamun knows he is thirsty and he feels the need for something very refreshing. He stops at a convenience store next to the gym. Standing in front of all the choices in the beverages aisle, one particular bottle catches his sight. And he instantly recognizes the brand. He knows that this is a bottle of Bubble Buzz, because not only does his other friends often drink it, but he also heard them talk about this brand new product that Namingo just launched. He also previously saw Bubble Buzz ads when he surfed on his favourite websites. He grabs a bottle, and takes a closer look at the nutritive information label. He is very pleased to see that the new drink is more nutritive and definitely healthier than the 7

other soft drinks that were available on the shelves next to it. The higher price of product doesnt bother him, since he perceives Bubble Buzz as a high-quality, functional product, which is manufactured by a well renowned company. Plus, he did not feel like simply buying bottled water, or carbonated soft drinks. Because of his inclination towards more sophisticated tastes, and because he likes to try new products on his own, he thinks this bottle is worth the price. Because of his busy schedule, Mamun prefers to save time as much as he can. Thus, he decides to buy two bottles. One to quench his immediate thirst, and another one that he wants to save for later in the day. He sees that the packaging is so convenient and easy to carry, and so when he exits the store, he puts the second bottle in his backpack. He attends all of his classes. During his break, he always hangs out with his friends. A lot of them are drinking from different Bubble Buzz flavours. He opens his second bottle, since he had such a great experience with the first one. He liked that the beverage was so unusual, yet refreshing. The drink surpassed many of his expectations. He has no doubt about it. Mamun will continue to buy Bubble Buzz for its good taste, and also because at his age, he sees it is the coolest trend right n

PRODUCT STRATEGY The core

o Bubble Tea beverage in a pre-bottled, ready-to-drink format.

The actual product o Packaging and labeling: see figure below o Branding: colorful, aspect of play, round shaped, prominent Bubble Buzz logo written in
modern font, catchphrases such as Think outside the Bubble and Get Your Buzz

o Trade name: Bubble Buzz, a Namingopro o Brand personality: energy, funky, cool, functional, original, funny, healthy, etc Augmented product o Nutritional information, Status (social drink), Features promoting the website, Health
benefit of a green tea base (ref.17)

Marketing considerations o Product life cycle: 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 (ref.11, p.301). Since Bubble Buzz is prone to product imitation, Naming strategy is to broaden distribution quickly, which is currently feasible thanks to the companys high manufacturing capacity.

o Product class: Food & beverage Soft Drinks Functional Drinks (refer to
Appendix D2 for a break-down of the functional drinks market).

PRICE STRATEGY The price strategy that will be undertaken should consider the following aspects: 1. Consumer demand 2. The product lifecycle 3. Potential substitutes

Customer demand Customer demand is a crucial factor which is driven by tastes, income and availability of others similar products at a different price (mentioned later in the potential substitutes section). For a lot of consumers, value and price are highly related: the higher the price, the higher the value. Consequently, Naming intention to position Bubble Buzz as a unique, innovative and attractive product gives it a certain control over Bubble Buzz price. To be able to implement higher pricing though, the minimization of the non-monetary costs to customers should also be include along with awareness of the product (notably (benefits) . The product lifecycle The company should take advantage also to the fact that the newer the product and the earlier in its lifecycle the higher the price can usually be. It ensures a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly and it also brings a certain prestige to the product. 10 Potential substitutes Naming is constrained by the monopolistic market in which it competes. The main characteristic however is product differentiation. by advertising) and value

PROMOTION STRATEGY Objectives: To initiate strong awareness about the launch of Bubble Buzz throughout Generation Y (10-29 years old) consumers as well as their parents. To win market shares over our top functional drinks competitor, PepsiCo. Message: The promotional outputs will convey the clear message that Bubble Buzz is a healthy drink for sporty and young people who simply enjoy taking care of their body and life. Concepts: Think outside the bubble: Be Bold, Be Original, Be Different, Be Yourself. A good spirit in a good body. For the out-of-the-ordinary individuals who like to challenge themselves.

Media selection:
Before choosing the appropriate medias, it is important to note that Generation Y consumers only give partial attention to media. However, they can be reached through integrated programs. They are typically using more than one communication media at a time; a behaviour that is often called multitasking. This group of consumers doesnt give its full attention to one single message, but rather uses continuous partial attention to scan the media. Marketers can still communicate with Generation Y by using a variety of targeted promotional tools. Another important tactic to reach our target market is through Viral or Buzz marketing, which Naming will heavily use in this campaign (campus, contests). 11

Advertising:
Output Television Examples Btv. Channel i. ntv

Radio Magazines Internet Outdoors

Others Personal selling Public relations Publicity

89.6,88.0 Universities For girls: Cosmo, Elle For boys: Sports Illustrated (or Kids edition) Banners on select websites (gaming, sports, etc.) Official promotional website: www.BubbleBuzz.ca Billboards and prints in select areas including: Campuses, transportation (bus, metro, stations) Tourist areas in high seasonal periods Outskirts of key cities in geographical reach Not relevant Direct contact with retailers, sales kit strategies to be explained later in the text. Stands or special displays and events in schools, malls, sports events (i.e. 2008 Beijing Summer Olympic Games), sponsorship activities Conferences, press releases (print and online), buzz marketing through TV coverage

Promotional Mix: Consumer oriented: Contests: Win another Bubble Buzz flavour, Uncover a secret code underneath
the bottle cap and win sporting goods and electronics by logging on the website, Win a trip for the 2012 2020 cricket worldcup (Arguments: It will increase consumer purchases and encourage consumer involvement with the product).

Samples: distributed in supermarkets, school/universities. Samples are a way to avoid

product resistance since people are not used to find bubbles in their drinks. Arguments: It will encourage new product purchases and it represents low risk for consumers since they get it for free. They have nothing to loose by trying it.

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

Arguments: It is also a mean to increase product trial and provides a good product visibility.

Allowances and discounts: case allowance (Arguments: The free goods approach

will be used so it can encourage retailers to buy more of the product to get a certain amount for free). 12

Cooperative advertising: to encourage retailers to buy our product and to maintain

our high level of advertisement that consumers expect from namingo

Other considerations:

Scheduling of the advertising: Pulse scheduling (promotional presence year-round, IMC (integrated marketing communication)

but emphasized and intensified before and during summer).

Target Audience:
Intermediary: personal selling will be more often used Ultimate consumer: Naming will use more of mass media because the amount of

potential buyers is large.

PLACE (DISTRIBUTION STRATEGY) Bubble Buzz will be distributed through these channels: supermarkets, convenience stores, independent food stores, discount stores, multiple grocers, vending machines, direct sales.
Strong existing distribution channels Naming has operations worldwide and is well established in its distribution channels (such as store retailers or vending machines). 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. WEAKNESSES Relying upon line extensions Naming is relying on brand extensions increase sales in specific lines, particularly its long-time carbonated soft drink products (i.e. the introduction of Vanilla helped maintain sales for the core Cola beverages). However, there is a strong risk of cannibalizing existing sales in the long term (for example, Bubble Tea might deter on sales for iced tea).

Reliant upon particular carbonated drinks

The long-time presence of Namingo beverage has established this particular line as a flagship 13 product. While the core tea products bring a solid base of sales and loyalty to the company, consumers expectations also become more and more anchored and single-lined, taking away freedom in the areas of line diversification and product modifications (taste, packaging, price).

Brand dilution

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

Entrance into difficult non-core categories

The Namingo Company is a truly global multinational business giant. While some categories of products are distributed in many areas of the globe (Coke, PowerAde, etc.), geographical needs already require that these global brands are heavily adapted to their target region. Furthermore, many smaller and diversified product lines are more or less popular in one particular region over another. Therefore, the process of diversifying the production and marketing each product involves costly investments. These capital requirements typically increase as the product becomes heavily focused (for example, since the Namingo brand is highly recognizable worldwide, marketing a bottle of Coke in Japan would be less difficult than marketing a bottle of Qoo in that same country Qoo being a lesser-known non-carbonated drink which was one of Naming newest brand introduction in 1999). Saturation of carbonated soft drink segment Due to the countless number of brands available on the market, it becomes increasingly difficult in the soft drinks segment to innovate and create new products that genuinely stand out from their competition. And as we have seen, an 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. OPPORTUNITIES New product introductions 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. Brand is attractive to global partners Because of the companys size (including value, brand name and operating revenues) and wide portfolio base, Naming enjoys a strong purchasing power over its suppliers, and also attracts large 14 partnerships with various levels of consumer reach (e.g. Burger King, movie studio promotions, sponsorship agreements, etc.). Existing brand awareness also provides an international playing field for powerful marketing strategies. THREATS

Strong competition
Naming is competing in a global market that is characterized by an oligopoly between several (but few in numbers) competitors. The fight for market shares and sales in crowded markets becomes a complex one.

Potential health issues

The current trend of consumer and consumers groups awareness towards goods and services is both beneficial and threatening for companies in the food and beverages industry. Over the last few years, concerns over health issues have risen in the media through an expanded and evergrowing network of knowledge outputs (journals, TV channels, internet and so on). The move of the younger generation towards a healthier lifestyle call for careful planning and decisionmaking in new product developments. Large companies can also easily become the target of consumers apprehension.

Free trade
In an era of globalization, large international competitors can come out with comparative advantages (the constant fight to remain the first mover and market leader in a long-term spectrum). Issues arise when dealing with price competition and economic growth. Trade organizations are also faced with public pressure which can disrupt operations in one or more areas of the company.

D3. Functional Drinks Sales by Distribution Format (2011)

Distribution Channel Supermarkets/hypermarkets Independent food stores Convenience stores Discounters Direct sales Vending Others Total % Sales 30.8 2.8 1.5 5.9 0 0.1 58.9 100

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Pricing strategy (Other constraints) The first possible constraint would be the regulations on pricing. Another constraint would be that Naming must not set a price that is too high because competitors will be attracted by potential profits and will follow by a lower price. After having taken all the important factors into consideration, two price-level fixing approaches seem appropriate. 1. Profit-oriented approach: Target profit One of the central objectives of this project being to become the market leader in functional drinks, Naming is willing to stay among the top competitors, if not becoming the greater, by achieving a certain target profit. This could be obtained by establish a price that will largely cover variable and fixed costs while bringing tremendous profits. 2. Competition-approach: Above market Competitors and potential substitutes prices can also be part of the strategy. Having a higher price could make customers aware of the additional benefits and the higher quality of Bubble Buzz.

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Jastification for advertising selection: -TV: channels for teenagers and for young adults: channel i, btv,rtv Arguments: TV communicates with sight, sound and motion, which is needed for Bubble Buzz. It is the only media that can reach 99% of the homes in Bangladesh. Naming has the budget to cover the high costs of this media. -Radio: 94.7 FM, 96.9 FM University Radios (radio today, radio foorti.) Arguments: Radio is an already segmented medium. There are over 900 radio stations in Bangladesh. The average University or college student is a surprisingly heavy radio listener and spends more time during the day listening to radio than watching network television (book p.502) We could also use of Interactive radio as Pepsi has already done in the past. (p.503) -Magazines: We should take advantage of the fact that magazines have become a very specialized medium. There are about 500 consumers magazines in Bangladesh. Good color production is also an advantage that create strong images which is the purpose of Naming with its Bubble Buzz brand. Each magazines readers often represent a unique profile. Reaching: -Young girls: COSMO -Young women: ELLE -Young boys: Sports Illustrated for kids -Young men: Sports Illustrated -Internet: Online advertising is similar to print advertising in that it offers a visual message. It also has additional advantages , it can also use the audio and video capabilities. As we are targeting our ads to young outgoing people, sound and movement may attract more attention from viewers and has the unique feature of being interactive. Interactive media would offer Naming the opportunity to reach younger consumers who have developed a preference for online communication. Official Website (www.bubblebuzz.ca) -Outdoor: Billboards in specific geographical area would allow us get a good reach and frequency. It is a low cost and flexible alternative. (Campus, malls, Bus and metro stations) 17

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 Namingo 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.

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REFERENCES 1. New Age Beverages in Hong Kong. Data monitor. May 2004. Accessed Feb 05, 2006. 2. Mamuna Tea Direct Mamuna Tea Direct LLC. http://www.mamunateadirect.com. Date N/A. Accessed Feb 06, 2006. 3. PREVILLE,Philip.BubbleTea. http://www.geocities.com/hello_tai_tai/bubbletea.html. Accessed Feb 02, 2006. 4. KING, Paul. Will bubble tea burst out across country or go bust?. Nations Restaurant News. P.24. May 31, 2004. Accessed via Business Source Premier. Feb 08, 2006.

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