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International Marketing Plan

Submitted to: Dr. Robert Jack

Prepared by: Mohammad Parvez Naim &


Gagandeep S Kaintal.

Date of submission: 31st Oct 2008

1
Executive Summary

The Plan is to launch Maaza in to the Australia market by exporting the


product from India to Australia in contract with Coca Cola Amatil Ltd. The soft
drink market in Australia is growing at a very good rate and more so of fruit
drinks as more and more people are getting health conscious also the
growing Asian immigrants is the reason for launching Maaza in to the
Australian Market.

We will take help of Coca Cola Amatil, as Coca Cola Amatil is an old player in
the Australian beverages market and also licensed bottlers of Coca Cola
Company Ltd.

The product would come with same taste and contents while the packing
would be done following the Australian norms and standards. The Quality of
the product will remain same because it already complying with Australia
Norms of Fruit drinks. The Price of the product will be competitive as per the
market. The Packaging of the product will be according to the Australian
standards and patterns. We will promote our product through almost all kind
of Advertising and promotional programme like TV ad, Radio, internet,
Hoardings, Billboards, celebrities endorsements etc

Budgets are allocated separately for different activities with a total budget of
A$ 1690,000. We will also monitor the performance of our product on both
financial and non financial parameters on a regular basis. The bottom line
contribution of Maaza in Australia would be significant over a period of time
and would play a critical role in capturing good market share in soft drink
segment for us.

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Table of Content

1 ORGANISATIONAL PROFILE……………………………………………….4

2 SITUATION ANALSIS……………………………………………………….…5

2.1 Business Environment…………………………………………………...5

2.2 Overseas Market and Industry anlysis…………………………………...5

2.3 Organisational resources and capabilities ……………………………….6

3 MARKETING STATEGY……………………………………………………….7

3.1 Market entry Strategy……………………………………………………..7

3.2 Segmentation, Targeting and Positioning…………………………………7

3.3 Critical success Factor……………………………………………………..8

4 MARKETING OBJECTIVES…………………………………………………...10

5 MARKETING MIX STRATEGY……………………………………………….11

6 BUDGET…………………………………………………………………………..17

7 IMPLEMENTATION…………………………………………………………….18

8 EVALUATION AND CONTROL……………………………………………….20

9 LIST OF REFRENCES…………………………………………………………..21

10 APPENDICES ………………………………………………………………..…21

3
1 ORGANISATIONAL PROFILE

Coca-Cola is the giant of the beverage industry worldwide. The Coca Cola
Company was started in 1886 and since then has been world’s largest soft drink
concentrates company. Coca-cola is market leader in beverages market since its
launch. Today coca cola is active in over 200 countries including India and
Australia. The Coca-Cola Company engages in the manufacture, distribution,
and marketing of nonalcoholic beverage concentrates and syrups worldwide. The
Coca-Cola Company produces concentrate syrup which is then sold to various
bottlers throughout the world who hold a Coca-Cola franchise or Coca-Cola
bottlers, who hold territorially exclusive contracts with the company.
Coca Cola has a subsidiary in India as Coca Cola India Ltd and has an iconic
status in the minds of the consumers in India just like it has in other parts of the
world. Coca-Cola serves in India some of the most recalled brands across the
world including names such as Coca-Cola, Diet Coke, Sprite, Fanta, Thumps Up,
Limca, Maaza and Kinley (packaged drinking water).
In Australia, Coca-Cola Amatil (CCL) is a participant in the beverage industry and
is the principal Coca-Cola licensee in Australia, Oceania, and Indonesia. The
company is responsible for the manufacturing, marketing and distribution of
Coca-Cola and related brands throughout these regions.

Maaza is a Coca-Cola fruit drink brand marketed in India and Bangladesh


We Plans to launch Maaza into the Australian market. Maaza was launched in
1970 in India by Parle- Bisleri and in 1993 it was acquired by coca cola India. In
the early eighties Maaza’s success story spread across the borders. Today
Maaza can truly be called a world brand and has seen success in Belgium,
France, Netherlands, Pakistan, United States, United Kingdom and Bangladesh
(Maaza website)
http://www.investsmart.com.au/shares/asx/Coca-Cola-Amatil-CCL.asp
http://www.coca-colaindia.com/mazza/default.asp

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2 SITUATION ANALYSIS

2.1 Business Environment, 2.2 Overseas Market and Industry

analysis

The soft drink market has been growing steadily over the years and is expected
to grow at a good rate in coming future as well. According to the DATAMONITOR
report which was published on Sep 2006, the market share owned by the fruit
drinks/juices was 19% of the total beverage market which is currently at 22%.

The Australian market has already started changing as consumers are shifting
toward healthier drinks. According to Euromonitor the market share of three
major products; carbonates, vegetable juices/ fruit juice and concentrate will
decline in future and come under 75% volume share. [ref:
http://www.euromonitor.com/Soft_drinks_in_Australia]

The total fruit juices and health drinks market has grown strongly over the past 5
years, in terms of both value and volume. In 2006, the total market was worth an
estimated £2.77bn at retail selling prices (rsp), having grown by 30.7% since
2002. In 2006, fruit juices, health drinks and fruit drinks accounted for 40.6% of
the total soft drinks market in terms of volume sales. Fruit juices and health
drinks have benefited from their healthy image, particularly in comparison with
other, less healthy, drinks, such as carbonates.

The Fruit juice sector has gained market share over the past 5 years, as
consumers switch away from alternative soft drinks towards the healthier
products.

The fruit drinks market of Australia is continuously growing so, the prospects of
market is very good. The changing trends of people towards healthier drinks will
help us to gain the market share.

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[ ref:http://www.datamonitor.com/industries/research/?pid=DBCM2096 and.
http://www.researchandmarkets.com/index.asp]

2.3 Organisational Resources and Capabilities

SWOT Analysis for Coca-Cola

The strengths and weaknesses will be internal to Coca-cola and the


opportunities and threats will be external to Coca-Cola. The strengths,
weaknesses, opportunities and threats of Coca-Cola Company are as follows;

Strengths

• Most recognized brand name in the world


• various types of packaging
• Consumer loyalty
• Largest market share in the soft drinks market

Weaknesses
• High sugar and caffeine content
• Declining trend in profits
• Some large retailers have exclusive contracts with Pepsi and don't stock Coke
i.e. KFC
Opportunities

• Expansion into third world countries where there is no current presence


• Healthy energy drinks i.e. to compete with Lucozade

Threats

• Middle east boycotting US brands


• Western attitude against capitalism
• New cheaper brands of cola i.e. Virgin Cola

[Ref: http://www.fratfiles.com/essays and http://www.coca-colaindia.com/media]

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3 MARKETING STRATEGY

3.1 Market Entry strategy

We will launch Maaza in to the Australian market by exporting the finish products
from India. The Coca Cola Amatil Pvt. Ltd. will be responsible for the promotion
and distribution of the Brand Maaza. We would use Coca Cola amatil warehouse
to store our product. Coca Cola Amatil has mother warehouse in Sydney and
other in Melbourne, Brisbane, Geelong etc.
We will have an initial contract of 3 years for promotion and distribution with the
Coca cola Amatil Pvt Ltd who owns 7 bottling plants in Australia and has a strong
distribution and retail network throughout Australia. So, we can use their experts
and skills in order to penetrate in to the market.
Under the Contract Coca Cola Amatil will be paid by fixed fee for three years and
a 4% share in profit if any

3.2 Market Segmentation, Targeting and Positioning

SEGMENTATION

We have segmented our market in to two major segmentations. They are


Geographically and Psychographic

Geographically: We have segmented Australian market in to three major


states which are New South Wales, Victoria and Queensland. The Brand Maaza
is not limited to any age group, profession, religion etc. Firstly, we will launch
Maaza in to these three major cities and if the consumer response will be good
then we will expand our market to the whole Australia.

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Psychographic: Maaza will cater the whole population of Australian market
belongs to any age, profession, life style and attitude.

TARGET MARKET

 Target three major cities. They are Sydney, Melbourne, and Brisbane.
 Target schools and Universities students
 Maaza will be targeted at fruit drink consumers as a new fruit drink which
is not available in the market
 Target health conscious consumers who prefer to have healthier products
like fruit juices, fruit drinks, energy drink, etc.

POSITIONING

 Maaza will be made of Indian Mangoes which are very famous in the
world.
 Coca Cola as a Parental company will have some Psychological effect on
consumer which force consumers to taste Maaza at least one.
 Maaza has planned to position itself as a healthy drink which could be
used as a median drink between carbonated drinks and fruit juices.
 Maaza will use Coca Cola brand’s goodwill to position itself.

3.3 CRITICAL SUCCESS FACTOR

Brand Name: Today Coca Cola is a very huge brand in non alcoholic

beverages, operating in more than 200 countries and owes more than 400

brands. Although, Coca Cola is active in the world market for more than 100

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years and it has expertise in marketing, distribution and promotion. So, it is an

added advantage with brand Maaza.

Cost Factors: We will keep our product’s cost competitive as compared to


others Fruit juices brand. So that fruit juice consumers prefers to try our brand
due to its low cost.

Changing Trends: Nowadays, more and more consumers are getting health
conscious which is by the fact that the fruit juices and drinks market of Australia
is continuously increasing. According to DATA monitor report, the market share
own by fruit juices and drinks were 19% in 2006 which is currently at 23%.
So, our product would be having an advantage of being a non carbonated fruit
drink.

Increasing consumption: According to the recent statistics, Australia is the


largest consumer of fruit juices as Australia's per capita consumption of juices
and nectars is growing steadily with no end in sight. Currently Australia drinks 35
litres every year placing it ahead of both the USA and UK.

Increasing immigration: Australia is experiencing a large number of Asian


immigrants which are familiar with the Brand Maaza, which would provide us a
variety of potential consumers. As Maaza is already a well established brand in
many Asians countries.

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No Direct Competition: Currently Maaza not having any kind of direct
competition in the Australian market. However it has some kind of indirect
competition with the fruit juice manufacture like golden circle. As Maaza do not
have any direct competition in the market it will help Maaza in penetrating the
market.

4 Marketing Objectives:

Our main objectives with respect to launch of Maaza in Australia are as


follows:

 To penetrate the market and achieve a market share of 5% by the end


of 2nd year and of 7% by end of 3rd year.

 Achieve profit by 3rd year and breakeven by end of 2 nd year of the launch
of Maaza.

 We like to launch Maaza into the Australian market by associating it with


some Celebrity. May be sports person or Film personality

 If the Response of the consumer will be good then we will expand our
market to the whole Australia.

 Once we cross breakeven and run into profits, we will share part of our
profits with a cause associated with saving environment

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5 MARKETING MIX STRATEGIES

Product, Price, Place and Promotion

Product

As far as the product is concern few things of the product will be standardized
and other would be adapted according to the Australian standards.

 Company will not change the core value of the product like Quality and
Taste of Maaza.

 Company plans to launch the product in three different size i.e 250 ml, 500
ml and 1 litre.

 Product will come in two different packaging, which will be in Tetra packs
and Plastic bottle in all three sizes. Steel cans will be introduced after 6
months in order to maintain the curiosity of the consumers.

 Product packaging will be according to the Australian consumers who


prefer to hang with the drinks. So, our product packaging will be small,
easy to carry and good looking.

 Augmentation will be provided to customers by customer care, services,


returns and reusability of bottles for other tacks.

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Pricing

Existing market of soft drinks is very competitive and also there is small
percentage of Fruit drinks consumers. So, in order to increase the percentage of
fruit drink consumer and to penetrate in to the market, company planned to come
up with low cost leadership strategy which often proof effective in gaining market
share in short period of time.

The Low cost leadership strategy will force consumers to taste/try our product
without any second thought.

Pricing of our product will be as follows:

PLASTIC BOTTLE

Size Price
250ml $ 2.25
500ml $ 3.45
1 litre $ 6.10

TETRA PACK

Size Price
250ml $ 2.35
500ml $ 3.55
1 litre $ 6.20
Distribution

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The product will be manufacture in India and will be exported to Australia.
The finish product will be sent to mother warehouse of Coca Cola Amatil for
storage purpose which is in Sydney and from mother warehouse finish
product would be further forwarded through Carriage and Forwarding Agent.

PRODUCTION IN
INDIA

Mother Warehouse in
NSW

CFA
CFA NSW CFA VIC
QUNSLND

Coles,
Safeway, etc. Distributors Hotels

Whole
seller/Retailer

Consumer Consumer Consumer


s s s

Distribution in All 3 States


Promotion

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 Marketing plan starts with the free sampling in every CBD area of city, trail
by an icebreaker, children competition, fun games for elders and other
stuff. The main purpose is to conduct an activity for whole family.

 ADVERTISING: For Advertising company is planning to use television,


billboards, internet, radio, posters.

1. Company will associate Michael Clark with the product Maaza by


taking Michael Clark in Ad films, posters etc.
2. Michael Clark posters will be used on Billboards, magazines and
Newspaper ads.
3. Company will use electronic billboards (JCDecaux) at major train
stations and areas.

Electronic Billboard Ad. Hoarding

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Celebrities Endorsements

Road side Posters Newspaper Advertisement

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 Personal selling: professional sales team will contact 5 star hotels,

fast food shops, restaurants and other multinational franchises e.g. Mac

Donald’s, Nando’s, KFC etc

 Direct marketing: Company will use direct marketing like mails, e

mails, internet ads, and telemarketing at initial stage to aware consumers

about the product.

 Points of Purchase: Sales and marketing team will take care of

shelves of shops to make sure that product should be in front position.

Moreover, Company will make sure the availability of the product in the

vending machine at major stations, school canteen, universities.

 The company will launch a Maaza’s official website especially for the

Australian region.

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5 BUDGET

Separate budgets are allocated for completion of formalities of contract, setting


up of warehouse, distribution costs, internet related costs, advertising costs that
will include promotion in Cinemas, T.V, Radio, Newspapers, Magazines,
Hoardings. Budget is also allocated for other sales promotion activities like
personal selling, free samples at public gatherings, promotion in malls, etc.
Transportation and product launch will also be given separate budgets.

Given below are the allocated budgets for each item along with date of
completion.

Item Date Completion Cost(AUD)

Contract agreement formalities 10th Nov, 2008 $ 450,000

Setting up of Warehouses 25th Nov, 2008 $ 200,000

Distribution cost 29th Nov, 2008 $ 20,000

Website builiding 05 Dec, 2008 $ 70,000

Paid search engine advertisement to 05,Dec, 2008 $ 50,000


increase exposure
Advertising Cost (includes Magazines, 10 Dec, 2008 $ 310,000
Newspapers etc.)
Other Sales promotion activities 10 Dec, 2008 $ 90,000

Transportation Cost 20 Dec, 2008 $ 100,000

Product Launch 25th Dec, 2008 $ 400,000

TOTAL $ 16,90,000

6 IMPLEMENTATION

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The Implementation of the Marketing plan will take as follows:

 The Contract and all other formalities like distribution, storage,

promotion etc will be negotiated with Coca Cola Amatil Pvt Ltd

Australia and this contract should be finalised by 10 nov 2008. This

would be done by Board of directors and marketing manager of

both companies.

 With the help of Coca Cola Amatil, a Mother warehouse would be


set up in Sydney. We will be using Coca Cola Amatil’s warehouse
managers’ expertise in setting up our mother warehouse and other
warehouses in other parts of Australia. This should be done by 15th
nov2008. We will be giving a buffer time of 5 days and expect all
warehouses to be set up by 25th Nov 2008

 The Proper distribution network will be established by 1st Dec 2008.


For this we will use Coca Cola Amatil expertise.

 Marketing managers of Coca Cola India in assistance with


marketing manager of Coca Cola Amatil will decide on using
different advertising sources. This is supposed to be completed by
10th Dec 2008.
 After finalizing the advertisement and sales promotion, the Coca

Cola India will start the production of the Syrup in Mumbai based

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manufacturing plant. The syrup then will be exported to the Sydney

based mother warehouse. First set of export is expected to reach

Sydney by 20th Dec 2008.

 We are expecting that our Advertising and sales promotion

programme would create a good brand awareness by 24 th Dec

2008 and we will launch our product on 25th Dec 2008. The

company will launch the product on the day of Christmas this would

provides a good opportunity for our product to get familiar with the

Australian people and culture.

SCHEDULED ACTION PLAN


Contract agreement and other formalities 10th Nov 2008
Setting up Mother and other warehouses in
Australia 25th Nov 2008
Distribution set up (appointing distributors and tie-up st
1 Dec 2008
with wholesalers)
Advertisement campaign and sales promotion
activity 10th Dec 2008
Production and exporting to the mother warehouse 20th Dec 2008
Sending of products from mother warehouses to
other warehouses 23rd Dec 2008
Product launch in the market place 25th Dec 2008

7 EVALUATION AND CONTROL

We will evaluate our performance on two parameters; Financial and non

financial parameters.

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The financial parameter like sales figure, market coverage, market share,

cash flow, and profit and loss will be assessing on monthly basis.

The non-financial performance of the product would be measured on

qualitative parameters such as quality, customer satisfaction, and

effectiveness of marketing activities. The qualitative parameters would be

measured on a quarterly basis by engaging an external agency such as a

market research company.

There will be a visit of Coca Cola India experts once in a two month to assess

the performance of the product.

8 REFRENCES

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1http://www.investsmart.com.au/shares/asx/Coca-Cola-Amatil-
CCL.asp
2 http://www.coca-colaindia.com/mazza/default.asp

3http://www.datamonitor.com/industries/research/?pid=DBCM2096.

4 http://www.researchandmarkets.com/index.asp.

5 http://www.euromonitor.com/Soft_drinks_in_Australia

6 http://www.fratfiles.com/essays

7 http://www.coca-colaindia.com/media

9 APPENDICES

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