case study- virgin cola 2lm
TRANSCRIPT
Project in Marketing
Submitted by:
Azurin, Paula Beatriz L.Baylon, Jocelyn
Camba, Denise B.De Mesa, Ayana ThereseDellosa, Mark Kevin U.Diola, Ina Patricia B.
Submitted to:
Sir Bob Torres
Marketing Plan
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.
Executive Summary
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
Products
Coca-Cola
Pepsi
Pop Cola
RC Cola
History
• Virgin Cola was first releasedin 1994 in UK by RichardBranson, to compete withCoca-Cola and Pepsi.
• It was actually set up duringthe early 1990’s in conjunctionwith Cott, a CanadianCompany that specializes inbottling 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 belaunched in France, Belgium and South Africa.
• In the US, Virgin Cola was first introduced in 1998. Forthe launch, Richard Branson rode in New York TimeSquare atop a tank promising a battle with Coca-Cola andPepsi.
• 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 consumerchampion with the help of their brandvalues, which are value for money, goodquality, brilliant customerservice, innovative, competitively challengingand 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 whenBranson and a partner were startingtheir first business, a record shop.They considered themselves virgins inbusiness.
Logo
• The Virgin logo was originally sketched ona paper napkin and remains largelyunchanged from the original style used.
Product
• Virgin Cola is the flagship cola of the VirginDrinks.
• It is a carbonated cola soft drink launched in1994. 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
water
Citric Acid
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.
PackagingCan
- Virgin Cola is packaged in redcolored can with the Product’sname in white bold letters.
Bottles
- The bottle which contained thecola was designed with curves toresemble Pamela Anderson’s sexybody who was at the height ofher popularity in the UK at thetime of the Virgin Cola’s release.
Product Range
Size Unit per case Type Flavour
500 ml
500 ml
12
12
Sparkling
Sparkling
Cola
Diet Cola
500 ml 6 Pack
500 ml 6 Pack
18
18
Sparkling
Sparkling
Cola
Diet Cola
2 L
2 L
6
6
Sparkling
Sparkling
Cola
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 LucioTan’s businesses.
• It could also be found in some stores like 7/11.
2. Situational
Analysis
Current Situation
Virgin cola has long been existentin the Philippine market. Its formallaunching was in 2004, backed byLucio Tan injecting Php. 1 B into thelaunching project. However, due tolack of aggressive follow throughadvertisements the product line’smarket presence was diminished.
As of now the carbonated soft drinkindustry faces the perils of a new trend amongconsumers. It is the trend of healthy living andhow readily and easily the market accepted it.Virgin Cola is not immune from this threat.Not only must Virgin Cola reintroduce itself tothe market it must be able to deal with thistrend along with competing with other marketcompetitors.
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 CoordinationBoard, 46.58 % of the total family expenditure are usedfor food and beverage (includes consumption athome, school and work).
Family Expenses
46.58%
18.32%
16.80%
7.52%
6%
3.83%
Food
House Rental
Transportation and
Communication
Electricity, Water, Fuel
Education
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
• Age Group (NSO)
0 – 4 9,669,502
5 – 9 9,694,781
10 – 14 8,949,614
15 – 19 8,017,298
20 – 24 7,069,403
25 – 29 6,071,089
30 - 34 5,546,294
35 – 39 4,901,023
40 - 44 4,163,494
45 - 49 3,330,054
50 - 54 2,622,316
55 - 59 1,903,649
60 - 64 1,633,150
65 - 69 1,138,843
70 - 74 797,970
75 – 79 505,356
80 and over 490,241
Market Demographics
Market Trends
• There is a rise of health consciousness as wellas the fitness trend.
• The product’s/products’ after taste, strategicpackaging, flavor and ingredients are key salesconsiderations
• Filipino soft drinks companies go internationalby 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
Strength1. Extensive bottling
system
2. Packaging
3. Brand Strength
1. Brand Strength
2. Effective stride in new
markets
3. Strong existing
distribution channels.
1. Low price
2. Concentrated Brand
Identity
3. Focused on Mass
Market
1. Low price
Weakness1. Health issues 1. Reliant upon line
extensions.
2. Reliant upon particular
carbonated drinks.
3. Brand dilution entrance
into non core
categories.
4. Saturation of
carbonated soft drink
segment.
1. Does not cater to
upper class market
2. Selective advertising
3. Not available in most
fast food areas
1. Does not cater to
upper class market
2. selective advertising
3. not available in most
fast food areas
4. Health issue
Coca Cola Pepsi RC Pop Cola
Opportunities1. Extensive target
market
1. Further
expansion of
market share
2. Brand is
attractive to
global partners
1. Expansion of
target market to
international
areas
1. More bottling
systems for further
expansion into the
local market
Threats1. Other alternative
beverages
1. Strong
competition
2. Potential health
issues
1. Strong
competition
Other alternative
beverages
SWOT of Virgin Cola’s
Competitors
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 cheapestcola brands being sold in the Philippine market.The image being propagated by the brand isnot wholesome especially seen in the shape ofthe bottle which was patterned after PamelaAnderson’s body.
Current Branding
The branding strategy adopted by VirginCola in its launch in the Philippines is themanufacturer’s brand strategy wherein theproducts carry the name of the company withcertain differentiating elements added orattached to the name. One example of this isVirgin Red, Virgin Blue Spirit, etc.
Current Packaging
Packaging’s primary purpose is to preserveand protect the contents of the product until itarrives in the hands of the final consumer. It hasadded use of including the brand informationsuch as the label, size, and nutritional value ofthe product, if any is possible. The focus of thepackaging is on the expansion of distribution bymeans of offering Virgin Cola in a variety ofcolors and sizes while maintaining the signatureshape of the Virgin Cola bottle.
Current Pricing Strategy
In the Philippines, Virgin Cola is under InterBevwhich is owned by Lucio Tan. InterBev in turn isunder Asia Brewery. Virgin Cola is limited to only tobusinesses owned by Lucio Tan such as thePhilippine Airlines. It has a minimal market share inthe country. It is targeted at the younger generationbut it can be consumed by different age groups. Todate, 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 thatit can be applied to a vast range of businesses.
• In other countries, the Virgin brand has been applied toradio stations, record companies, retailers, airlines (such asVirgin Atlantic, Virgin Blue), mobile phonecompanies, broadband ISPs (Virgin Media), trainservices, motor vehicle sales, credit cards, loans, lifeinsurance, car and pet insurance, homeinsurance, mortgages, pensions, savings andinvestments, music festivals, recreational experiences (suchas using a sheep dog to herd a flock of sheep, and nowspace travel), network marketing businesses (e.g. VirginCosmetics), and much more.
• In the Philippines, Virgin Cola sponsors TV programs like ABSCBN’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 informationin order to insure the efficiency and differentiation of the new plan fromthe previous one.
Virgin Cola has done two aspects of market research namelyexploratory research, which tries to address problems encountered by thecompany, and descriptive research, which identifies the market potentialof the product and the target market’s characteristics and how to bestcope with the ever changing market.
However, further research will be conducted after marketpenetration to sustain the product against intense competition especiallyduring the growth and maturity stage.
Factors Influencing Consumer
Choice in the Philippines
In the decision making process, abusiness must take into considerationthe factors that may influence theconsumers’ choice. Several factorsinfluence consumer choice and theseare psychological, socio cultural,economic, and political.
Psychological
Conservatism isprevalent mindsetof the Philippinesociety and is aprime factor thataffects theconsumer’s choice.
Socio cultural
Filipino societyplaces muchimportance onfamily andreligion. It is acommunalsociety.
Economic
The retailprice of Virgincola is adaptedto the currenteconomicsituation of thecountry.
Political
New lawsregarding thepackaging anddistribution of theproducts as well asimposition ofadditional taxes.
Philippine Laws
• In the Philippines, there are certainlaws which limits the freedom of thesoft drink companies or manufacturerin the market.
R.A. No. 3720
• An act to ensure the safety and purity of foods,drugs, and cosmetics being made available to thepublic by creating the food and drug administrationwhich shall administer and enforce the lawspertaining thereto.
• Chapter VII or the Definition and Standards for Foodpromulgates regulations fixing and establishing forany food, under its common or usual name so far aspracticable, a reasonable definition and standard ofidentity, a reasonable standard of quality, and/orreasonable standards of fill of container
R.A. No. 623
• An Act to regulate the use of duly stampedor marked bottles, boxes, casks, kegs,barrels and other containers.
The Virgin Cola is subjected to this lawsince they make use of cans and bottles ascontainers of their product.
R.A. No. 6361
• An act providing for the fixing of themaximum selling price of essential articlesor commodities, creating the price controlcouncil, and for other purposes.
Section 1.(2) states that essential food andfoodstuffs including milk, soft drinks andother beverages are included.
3. Marketing
Strategies
Strategy Pyramid
Strategy
Tactics
Program
Strategy Pyramid:
The Strategy Pyramid emphasizes thepractical importance of building a solidmarketing plan structure. Most marketingplans are developed from the top-levelstrategy 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 thePhilippines are Filipinos between 15-35years of age belonging to classes B and C.Secondary Market will include class D.
• Based on the Marketing demographicspresented in the beginning of thepresentation, the target market is13,017,909 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 targetmarket, product definition) has been decidedupon by the company, the positioning processcan now take place. Positioning is the processof creating a product image that will stick tothe minds of the consumers relative to theother competitors in the market. It helps theconsumers identify and differentiate one brandfrom another by remembering the uniquecharacteristics of each brand.
Virgin Cola will bank on symbolicpositioning wherein it will identify itself withPhilippine society and adhere to its norms andtrends. This is the approach that worked forits competitor, Coca Cola. By managing toposition itself in line with the Filipino conceptof family, it has successfully penetrated thePhilippine market and thus takes up majorityof the Philippine market share.
The societal context that Virgin Cola has towork in is full of hurdles not only because ofintense competition but also the conservativemindset of the people. Virgin Cola may have astrong image and brand name. As stated earlier,it is one of their strengths, however, in thePhilippine context, it can be the brand’sweakness as well. It needs to position itself in asubtler manner while maintaining its trademarklook and brand name.
Repackaging
The trademark shape of the bottle will beretained. However, the label’s design wasgiven a makeover. From the plain red colorthat it used to carry, patterns and othercolors such as black and white were added.This is not only to attract the customer’sattention but also to give it a feel ofsophistication.
Sizes
8 ounce 12 ounce 1.5 L
New Cover for bottles
For Plastic Bottles For Glass Bottles
Bottle Caps
New Can Designs
New Pricing Strategy
We will follow the strategy of the USbased Virgin Cola Company which is adollar less than Coke. In the Philippines, it’llbe a peso less than Coke. Psychologicalpricing is the strategy to be adoptedbecause Filipino consumers have atendency to patronize products that arecheaper 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.
There would be a Press conference for the re-launchedproduct wherein press people and famous people wouldbe invited and asked for their opinion about the product(publicity).
Press Conference
Since we are planning to intensify Virgin Cola‟sappeal to the market, particularly in theprovinces, which are not yet media corrupted, we areplanning to conduct activities sponsored by VirginCola. Such would be Musicfests, Pa-BinggongBayan, Sportsfests, hosting Barrio fiestas, etc.
Sponsorships in Local Events
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.
Product Endorser
Mysteriousand interestingbillboards willbe put in keylocationsbefore thegrand launchof the productto arousecuriosity.
Mysterious Billboards
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
Lively and effective TVCs will be aired in the major TVstations- ABS-CBN, GMA7, QTV11, TV5 and Studio23 particularly during noontime, when everyone wouldbe craving for a refreshing drink to quench their thirstcaused by the summer heat.
Television Commercials
• 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 1 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 2 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.
Sample 3 T.V. Commercial
Magazine and Newspaper
Advertisements
There would be also print Ads inglossy magazines, particularly inmagazines likeCandy, Seventeen, and the likessince their readers are mostly theyouth, which is Virgin Cola’starget market too.
Likewise, print ads innewspapers would beavailable, particularly inbroadsheets such as PhilippineStar and Philippine DailyInquirer, and in decent tabloidssuch as People’s Journal andPilipino Star Ngayon, so thatmore people would be aware ofthe 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 indifferent universities couldalso help in the promotion ofthe product by simplysponsoring leadership orentrepreneurial seminars tothe students.
Afterwards, notebooks, ballpens, fans, pins with “I HeartVirgin Cola” written onthem and other stuffs withVirgin Cola logos could begiven away for these helpthe market remember theproduct.
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
We would also like to retain the wholesomeness andlive out the product‟s name since the youth is ourtarget market. That‟s why we are also thinking ofcollaborating with NGOs like Gabriela to haveawareness seminars regarding social justice or of therights of women, especially during thismonth, March, which is Women‟s month.
Collaboration with NGO’s
We are also thinking of teaming up with groups that aim tosave our country‟s Virgin forests. Since we would like tolive out the product‟s name, we are planning to help thesegroups preserve our forests by giving donations. Virgincola would promote the protection and rehabilitation ofthese forests for longer lifespan and future proper utility.This would be the company‟s charity work. This, at thesame time, would lower the taxes of the company.
Virgin Forests Preservation
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 requiredin launching a product that needs greatpromotional efforts in its initial stage.
The nature and type of middleman alsocounts, for a good retailer can help maximizethe 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‟sexistence in the market.
Asia Brewery can now retail in differentstores, particularly in the provinces.
We chose not to concentrate that much in MetroManila because competing with Coca-cola, the no.1soft drink product in the city, would not be easy.
Virgin Cola will first get the larger part of themarket, if not monopolize, in the provinces whilepenetrating slowly towards the center, which is MetroManila.
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
Years67,828,944,800.0
0
Expenses Forecast
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
Gabriela
CATW-Asia Pacific
10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
VIRGIN FOREST
DENR
GENESSYS
Haribon Foundation
25,000,000 25,000,000 25,000,000 25,000,000 25,000,000
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 ChildrenCampaign 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
Gabriela
CATW-Asia Pacific
10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
VIRGIN FOREST
DENR
GENESSYS
Haribon Foundation
25,000,000 25,000,000 25,000,000 25,000,000 25,000,000
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 ChildrenCampaign 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
Sponsorship 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000
Cash RewardsAutomobile Reward
Gadgets RewardFree TastesMall Tour
University EventsConcertsMusicfestSportsfest
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
2009-2010 2010-2011 2011-2012 2012-2013 2013-1014
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
Total 5,180,000,000 5,180,000,000 5,180,000,000 5,180,000,000 5,180,000,000
2009-2010 2010-2011 2011-2012 2012-2013 2013-1014
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