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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 ourassignment properly and guided us, as well. Becauseof his assist and support we could complete ourassignment. In this report we have included the datathat contains marketing plan for Namingos new

brand of product(Bubble buzz)


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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.


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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.

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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


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the functional drinks segment, and to become the top market leader in that particular

segment within the forecasted sales figures.

1

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


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Bubble Buzz will be a bottled beverage and will be positioned as the only ready-to-

drink 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

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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 Cadbury-

Schweppes (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-To-

Drink Bubble Tea), which is until now unexacting. It is anticipated that the following brands


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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

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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)

S egment 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


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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). .

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SEGMENTATION VARIABLES AND BREAKDOWNS FOR CANADIAN CONSUMER MARKET OF

BUBBLE TEAMAIN DIMENSIONS VARIABLES BREAKDOWNS

Region Nationwide (all provinces and territories) with emphasis onurban / metropolitan areas, and adapted strategies for allgeographical groups

Area size 5000-19,999 to 4,000,000+Density Urban, suburbanClimate All (East, West)

Age 10-29 years old (teenagers, studying age and young adults)Gender Male and FemaleIncome All under $30,000Occupatio

nStudents; new graduated; new workers; young professionals

Education Elementary 4

th

grade, High school, CEGEP and UniversityRace All: Asian, Black, White, Native; other; with adapted strategyfor Asian consumers already familiar with Bubble Tea

Home

ownershipRenting apartment/condo, living with parents(Highly discretionary in personal spending)

Personality Brand conscious, anchored in popular culture, inclined fordifferentiation and sophistication, very tolerant towardsmulticulturalism and internationalism (open-minded), quickmaturation with modern products

Lifestyle Most of them dependent on parents, no major responsibilities,highly influenced by peer groups, active life, importance ofschool, work and social life

Benefits COMMUNICATION BENEFITS

-Nutritional information-Informational text on history of productFUNCTIONAL BENEFITS

-Healthier than soft drinks-Convenient, easy to take outPERCEPTUAL BENEFITS

-Quality/Premium price-Social standing/good-looking

Usage rate Seasonal (peak in summer), daily-basis, weekly basisUser status Non-user, regular user (current user through existing bar-shops)

Loyaltystatus

None, medium, strong

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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: mamunDate of Birth: 25.03.85Age: 20

Occupation: University StudentCountry: BangladeshNeeds: Healthy lifestyle/Social belongingPeople: Roommate/Friends/FamilyPlaces: Clubs/Coffee shops/University/GymActivities: Basketball Team

Due to his active and quick-paced life, mamun wakes up at 6:30AM every morning.

Today, he puts on his trendyLacoste Polo andDieselJeans, and of course, he always has

hisPuma shoes on. After having called his friends with his new Samsungcamera 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

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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 8


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o

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).


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PRICE STRATEGY

The price strategy that will be undertaken should consider the following aspects:

1. Consumer demand

2. The product lifecycle3. Potential substitutes


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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 by advertising) and value

(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.

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Potential substitutes

Naming is constrained by the monopolistic market in which it competes. The main

characteristic however is product differentiation.


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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).

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Advertising:

Output Examples

Television Btv. Channel i. ntv


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Radio 89.6,88.0 Universities

Magazines For girls: Cosmo, ElleFor boys: Sports Illustrated (or Kids edition)

Internet Banners on select websites (gaming, sports, etc.)Official promotional website: www.BubbleBuzz.ca

Outdoors 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

Others Not relevant

Personalselling

Direct contact with retailers, sales kit strategies to beexplained later in the text.

Publicrelations

Stands or special displays and events in schools, malls,sports events (i.e. 2008 Beijing Summer OlympicGames), sponsorship activities

Publicity 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 certainamount for free).

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

our high level of advertisement that consumers expect from namingo

Other considerations:
http://www.bubblebuzz.ca/http://www.bubblebuzz.ca/


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Scheduling of the advertising: Pulse scheduling (promotional presence year-round,

but emphasized and intensified before and during summer).

IMC (integrated marketing communication)

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

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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


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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 large14

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


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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 ever-

growing 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 decision-

making 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 % Sales

Supermarkets/hypermarkets 30.8

Independent food stores 2.8

Convenience stores 1.5

Discounters 5.9

Direct sales 0

Vending 0.1

Others 58.9

Total 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,rtvArguments: TV communicates with sight, sound and motion, which is needed for BubbleBuzz. It is the only media that can reach 99% of the homes in Bangladesh. Naming hasthe budget to cover the high costs of this media.

-Radio:94.7 FM, 96.9 FMUniversity Radios (radio today, radio foorti.)Arguments: Radio is an already segmented medium. There are over 900 radio stations inBangladesh. The average University or college student is a surprisingly heavy radio

listener and spends more time during the day listening to radio than watching networktelevision (book p.502) We could also use of Interactive radio as Pepsi has alreadydone in the past. (p.503)-Magazines: We should take advantage of the fact that magazines have become a veryspecialized medium. There are about 500 consumers magazines in Bangladesh. Goodcolor production is also an advantage that create strong images which is the purpose ofNaming with its Bubble Buzz brand. Each magazines readers often represent a uniqueprofile.

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 visualmessage. It also has additional advantages , it can also use the audio and videocapabilities. As we are targeting our ads to young outgoing people, sound and movementmay attract more attention from viewers and has the unique feature of being interactive.Interactive media would offer Naming the opportunity to reach younger consumers whohave developed a preference for online communication. Official Website(www.bubblebuzz.ca)

-Outdoor: Billboards in specific geographical area would allow us get a good reach andfrequency. It is a low cost and flexible alternative. (Campus, malls, Bus and metrostations)

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http://www.bubblebuzz.ca/http://www.bubblebuzz.ca/


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Based on the aforementioned analysis, Bubble Buzz appears to be a profitable and

innovative product with a strong outlook for market share presence and segment growth

opportunity. Upon implementation of the marketing plan, the 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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Marketing Plan for a New Brand of Any Product Category(1)

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