Grappo fizz project - report on launch brand PDF

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report on launch brand...

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EXECUTIVE SUMMARY: Global Beverage Co. Ltd. Bangladesh is preparing to launch a new carbonated grape juice; Grappo Fizz in Bangladesh’s matured beverage market. Our product is the only of its kind as there is no other carbonated fruit flavored drink in the market. It has a unique flavor. It will be competing with CocaColla, Pepsi, 7-up, Mojo, Frutika etc. Our main target market is the youth. We are planning to launch the product in a highly fashionable and classy way. The product has a unique packaging that will instantly attract target consumers. The primary marketing objective is to achieve maximum market share and to create product awareness among all youths of the country. The primary financial objective is to attain TK.50, 000,000 of sales revenue and keep losses to a minimum.

CURRENT MARKET SITUATION: Global beverage co. Ltd was established in 1999. It was the first to introduce virgin drinks in Bangladesh. Since its inception it has introduced a wide verity of beverages in this country. With a well established factory located in Gajipur Dhaka Research shows that maximum numbers of youths are attracted to carbonated drinks rather than fruit juice or any other type of drinks. Competition is intense in this market as a wide verity of products hold the market share. For instance Coca-Colla is the global leader in the beverage industry and heavily consumed carbonated beverage in our country. Holding the 2nd largest market share in the global market is Pepsi co. In spite of this, noteworthy mentioning products are Sprite, Fanta, 7-up, Merinda, Mojo, and Frutika etc. To gain market share in this dynamic environment, Grappo Fizz is targeted at the youth who are constantly looking for new options in the drinks market. http://www.indiaprwire.com/pressrelease/food/2009040923161.htm http://www.ahlbd.com/gbcl/ MARKET DESCRIPTION :

Grappo fizz’s market consists of the youth of Bangladesh .It basically goes around the age group starting from 16-25. This group includes teenagers, students in schools and colleges, adults in university and professional life. Table A1.1 shows how Grappo fizz addresses the needs of targeted segment.

Table | A1.1 Segment needs and corresponding features/benefits of Grappo fizz

Targeted segment

Customer Need

Corresponding Feature/Benefit

Students (School& College)

They need a refreshing and tasty beverage which will support their daily Tiffin or lunch food.

Grappo fizz is a carbonated grape juice that is always palatable .It will serve the refreshing and taste needs of the students.

Teenagers

Teenagers look for a classy, easy to carry, attractive, fun and pleasant drink.

It is purple-red in color and comes in a premium PET pack shaped like a champagne bottle. The color of the drink adds to the fun quotient of Grappo Fizz and makes it the perfect fun drink .The grape flavor is uncommon in carbonated drinks and has a pleasant taste. It comes in a 300ml bottle that is easy to carry.

Adults (university)

Similar to teenagers, adults in university look for attractive and tasty drinks to have in between their classes .They have a higher consumption rate than teenagers.

For them grappo fizz is available in the 500ml bottles.

Adults (professional)

This group would demand a refreshing as well as energizing drink in between their work breaks .but they would probably drink with their colleagues and work mates. This means they would have an even higher consumption rate.

Grape itself is a refreshing element and being carbonated it helps serve the refreshing and energizing purpose .since they have a higher consumption rate Grappo fizz is available in a 1 liter bottle .

Product review: Our product, Grappo fizz offers the following features:  It is the only of its kind, carbonated grape juice  It has unique packaging, champagne shaped bottle  Grape flavor  Available in 300ml,500ml and 1liter bottles

Competitive review: If we take a look at the Bangladesh soft drink industry, we can notice that at present, there are more than 19 soft drink manufacturers operating in Bangladesh. But the competitors we consider threat to Grappo fizz are: http://www.studymode.com/essays/Bangladesh-Beverage-Industry-202660.html

1. Coca Cola:

Cola which uses Caffeine (2.9 mg per 100 ml) and Natural flavorings.

2. 7UP:

Caffeine free lime and lemon flavored Carbonated Beverage

3. Pepsi:

Cola which uses Caffeine, high fructose corn syrup and Natural

4. Clemon:

Lemon Flavored Carbonated Beverage

5.Mojo:

A local cheap brand offers cola with attractive package

6.RC lemon:

Cloudy lemon flavored CSD. It is a popular product of Royal Crown

Despite the strong competition, Grappo Fizz can gain popularity and recognition among the target market segment as it is the only of its kind. Our unique carbonated grape juice flavor is a curtail differentiation. Also offering our champagne shaped bottle and attractive labeling which is intended towards the youth.

Channels and logistics review: We wish to distribute our product through a series of wholesalers and retailers, who will bring our product to our target market segment. Among the retailers we will emphasize on the following:     

Supermarkets Departmental stores Fast food Restaurants School, collage, and university canteens Cafeterias of organizations

Strengths, Weaknesses, Opportunities and Threat Analysis: Grappo fizz has several powerful strength for itself, but our major weakness is the price which is higher then the average price of our competitors. Grape is a neglected flavor in the Bangladesh market. There are virtually no grape based drink in Bangladesh except for some 100% fruit juice brands and Frutika grape. Grappo is trying to fill in such a gap and this is a huge opportunity for us. Our major threat is intense competition in the beverage industry. Strengths  Only of its kind, carbonated grape juice  Grape flavor

Opportunities  Filling a gap for grape based drink

Weaknesses  Price skimming strategy, higher price than other carbonated drinks  Dependent on a specific target segment

Threats  Highly competitive market  Every one may not like the grape flavor

Objectives and Issues: We have set long term and short term objectives for Grappo Fizz.

Long –Term Objectives: Our main objective is long term, which is intended toward creating a brand image and loyalty for Grapo Fizz among the youth.

Short-term Objectives: It is to attain maximum market share among the targeted market segments.

Issues: The major issue for us is to create a brand image and make our product distinct among all the other products. We intend to invest heavily in promotion and marketing of our product to create a memorable and distinct brand image. We should also be focused on measuring awareness and customer response and do time to time market survey in order to make our product a success in the market.

Marketing Strategy: Our marketing strategy is based on product differentiation. Our primary targeted consumers are university adults, teenagers and student in schools and colleges who search for a refreshing drink. More over teenagers look forward towards classy and attractable products. Our secondary customers are professional adults. Who would demand a refreshing as well as energizing drink in between there work breaks .but they would probably drink with their colleagues and work mates.

Positioning: Using product differentiation, we are positioning Grappo fizz as the only of its kind being a carbonated grape juice. The grape flavor is not common in the carbonated beverage market, hence it is also a differentiating item.

Product Strategy: Building the brand image is a crucial part of our product strategy. The brand name and logo will be displayed on the product itself and reinforced by its prominence in the introductory marketing campaign. Pricing strategy: Grappo fizz will be introduced at a price of TK.40 for 300ml,TK.50 for 500ml and TK100 for 1 liter. It is higher than any other soft drink’s price in the market. We will be using the price skimming strategy and lowering the price eventually as the product steps up to its maturity stage in its product life cycle. Distribution Strategy:

Our channel strategy is to use selective distribution at first. We will be distributing through Super markets, Departmental stores, Fast food restaurants, School college and University canteens, Cafeterias of organizations. We will be observing sales for the first year, if we meet our sales objectives we will then start to distribute through every nooks and corners of the country. Marketing Communications Strategy: Our messages will primarily be communicated through television commercials, we will focus on the brand name and main features of product differentiation. The advertisement will appear frequently to maintain brand awareness and communicate various differentiation messages. We will also be advertising through billboards placed near our target segment, which will be eyecatching and attractive . This way will be able to create brand awareness and recognition. Marketing Research:

Marketing Organization: Mohammad Yusuf is chief marketing officer for the company. He holds overall responsibility for all of Global Beverage Co. Ltd’s products. The hierarchy chart below, in figure. A2.2 shows the structure of the Six-person marketing organization.

Figure | A2.2 Marketing Organization Structure

S R A M l a o n s i r h d h f g a y e u m d R b m R u a N h la d h im m z a Y A M n la u m ,s a n ,u m e f ,P e P r , m A o ,r o d m m v o o e t S t r i a o lit o in e n s i& A n m n g A a r a d n e lA v a g y n e C ig s a r h e o t li r n y ie a f ls t i n M S g a lr M k e a e s n t a i g n e g r O f f i c e

Action Programs: Grappo fizz will be introduced next year, January 2013. Following are the summaries of the action programs that we will use in selective months throughout the year. January we target to introduce the Grappo Fizz among our target market segment through a series of TVC. Grappo fizz will be introduced as a cousin of Appy Fizz who comes from UK to visit his cousin. Our main target is to create the tag line of “Another cool drink to hang out with.” We will give free samples to our customers by mobile vans and other temporary outlets in specific places, especially universities and youth hangouts. March by this month we plan to make the product more familiar to consumers by creating Radio advertisements. We will place our advertisement with the most popular radio station among the youth. The advertisement will have a Humor theme and the name Grappo fizz will be repeatedly told. June by this time our product will be more or less prominent among the consumers. We will organize sponsored events and programs in different universities and schools of our country so that the youth gets a clear idea of our product and we could persuade them into buying it. August at this point we will offer a special discount, buy 3 get one free . By this our customers will be more attracted to our product and they may prefer to buy it just because of the offer. October in this month we plan to create a new TVC for our customers, in this case we will feature and target the youths specifically. We will create a new tag line for our product.. “The coolest drinks to hang out with.

Budgets:

Total sales revenue for the first year is expected to be TK.50 million. Variable cost per unit is TK 20 if 1,250,000 units are produced and estimated fixed cost for the first year is TK20million. We are predicting losses to be at TK 2,000,000 in the first year. In the second year, our break-even analysis assumes per unit revenue of TK40, variable cost per unit of TK 20 and fixed costs of TK 10,000,000. Based on these assumptions, the break-even calculation for the second year is: 10,000,000 ÷ tk 40−tk 20=500,000 units

Controls: We will keep a close eye on sales level and quality. If sales level decreases, we will check our quality to look for any problems that may occur and if there is any then we will take corrective actions. Other things that will be checked constantly to make sure there is no drifts from the plan include monthly expenses, monthly sales, advertising efficiency report and reports from the mobile vans and temporary stalls....