Nirvana Dominique F.

Bulacan
BS Econ IV
Mgt 170

TABLE OF CONTENTS

Executive Summary ------------------------------------------------------------------------------------------2

Situation Analysis
Market Analysis ---------------------------------------------------------------------------------- 3
Consumer Analysis ------------------------------------------------------------------------------ 3
Environmental Analysis
Economic -------------------------------------------------------------------------------- 3
Technological --------------------------------------------------------------------------- 4
Political/Legal --------------------------------------------------------------------------- 4
Socio/Cultural --------------------------------------------------------------------------- 5
Natural ------------------------------------------------------------------------------------ 5
Opportunity and Issue Analysis
Opportunities and Threats Analysis ------------------------------------------------------------ 5
Strength and Weaknesses Analysis ------------------------------------------------------------ 6
Objectives ----------------------------------------------------------------------------------------------------- 7
Marketing Strategy
Target Market Strategy ----------------------------------------------------------------------------- 7
Positioning Strategy ---------------------------------------------------------------------------------- 7
Marketing Mix
Product Strategy ----------------------------------------------------------------------------------7-8-9
Price Strategy ---------------------------------------------------------------------------------------- 9
Place Strategy -------------------------------------------------------------------------------------- 10
Promotion Strategy -------------------------------------------------------------------------------- 10
Financial Objectives ----------------------------------------------------------------------------------- 10-11

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170

I. Executive Summary

The Coke brand is a worldwide product which embraced by many people around the
world. It is manufactured by one of the largest manufacturing company - the Coca-Cola
Company. A pharmacist in Atlanta, Dr. John Pemberton invested in this kind of product and
known to be the "soft drink of the world". Coca-Cola has been expanded from different sub-
brand of beverages such as Dr Pepper, Fanta, Sprite, Oasis and PowerAde. It reaches across the
globe and selling products to more than 312 countries according to the 2005 report of the
company. In 2010, the company has a revenue of US$ 35 billion and an income earned of US$
11.8 billion. This inflows were due to the phenomenal brand of coca-cola which is recognized
around the world.

The mission of Coca-Cola Company is to:

• To Refresh the World... in body, mind, and spirit.

• To Inspire Moments of Optimism... through our brands and our actions.
• To Create Value and Make a Difference... everywhere we engage
(thecocacolacompany.com)

In line with these, the company come up with this innovative idea to have a flavored soda
which is the Flavored Coke. This gives a twist of "cherry" and "vanilla" flavored coke drink.
With these product differentiation, consumer who are loyal to Coke will be more interested to
have this kind of taste. Moreover, the innate taste of Coke is still present with cherry and vanilla
surprise. This product is usually available in cans but the company sought to come up with the
idea of Flavored Coke available in powder where it will be in the form of powder soda. This new
packaging of the flavored coke will be segmented in the whole regions in the Philippines
targeting young adults from 12-29 years old coming from high or middle income groups.

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170

II. Situation Analysis

A. Market Analysis

Coca-cola is the leading company when it comes to beverages and has been part
of culture and lifestyle of everybody in the world. Products of the company were sold to
different stores and outlets worldwide. The product also concentrates in selling it to restaurants
and food chains. It was expanded to major manufacturers in different continents which North
America, Europe, Australia and Asia has the largest Coca-Cola Enterprises. In continents Eurasia
and Africa the unit case volume increased by 7% in 2013. However, in Europe there is a decline
of 1% unit case volume while Asia has a unit case volume growth of 3% unit case volume
growth in the same year.

B. Consumer Analysis

It is a part of the Filipino culture to hold celebrations or festivities hence there is

always a family gathering and reunion. Soft drinks are usually the beverage and Coke is the
usually picked. Since, the trademark of Coke brand is established it was then a consumers' choice
when it comes to soda drink. Thus, the flavored coke is a new venue to explore from an ordinary
flavor of soda drink to a unique one.

C. Competitive Analysis

The Coca-cola brand has been very competitive when it comes to beverages
especially the soft drinks. Hence, introduction of the new product form of flavored coke will
bring a new competitive product in the market. The flavored coke is an existing product of the
company but will be delivered in its new form which is in powdered form. This new form
induced a new variety of powdered drink with soda flavor. Though powdered drink is not new in
the market this will also induced competition among the various companies selling powdered
drink given it has a new set of flavors and it is from a known brand of beverage. This also first
time to offered in the country where a powdered drink is a soda flavored with the twist of cherry

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170

and vanilla flavors. The competitive brand has always been an

advantage of the Coca-cola brand in the market. Hence, this new product form will compete with
other company offering powdered drink and also other soft drink company. This also attracts
competition given this will be offered in a much lower price compared to the usual flavored coke
in cans.

D. Environmental Analysis

1. Economic

The Philippines GDP growth is worth 272.02 billion US dollars in 2013

and a per capita of US$ 1 581.01. The economy continued to grow with 6.1% expansion in 2014.
It implies that there is increase in consumption, investment, government spending and net
exports. The increase private consumption and consumer spending contributed to an increase
GDP with 60% and 5.4% respectively. It was also projected that GDP will increase by 6.4% in
2015 and in 2016 it will accelerate by 6.3%. Other factors that contributed to GDP boost are
employment growth, modest inflation and higher inflows of remittances. This implies an increase
in purchasing power of consumers. This continued upraising of the economy will induced a
higher demand in the long run.

2. Technological

Innovation accompanies technology which supports the brand in advertising,

packaging and distributing. Coca-cola used every kind of medium of communication in
informing and promoting the product. The internet which is the most efficient way to reach the
consumers around the world is a great avenue for promotion and advertising of the powdered
Flavored Coke for instance. The different way packaging of coca-cola products also contributes
to technological advancement such as availability of the beverage from glass bottles to cans and
to sachet. Efficiency is achieved given these applications which could be essential for the
product however, if technology could not support the product condition it may have a negative
implication, take for example the Flavored Coke is best served when it is cooled but those who

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170
do not have access in electricity may consume a little because they
lack of technology for cooling purposes.

3. Political/Legal

Since beverage is the product it has several regulations and policies when it
comes to food regulation. The FDA Act states that “Health products” means food, drugs,
cosmetics, devices, biologicals, vaccines, in-vitro diagnostic reagents and household/ urban
hazardous substances and/or a combination of and/or a derivative thereof. It shall also refer to
products that may have an effect on health which require regulations as determined by the FDA.

4. Socio/Cultural

The Filipino celebration always brings the family bond stronger accompanied by
food and drinks. Coke become a part of the Filipino family gathering especially in special
occasions such as Christmas and New Year. However, Coke has also issues on health because of

its sugar content. Health conscious people may be the reason for declining of demand of soda.
Nevertheless, consumers prefer soda as a thirst quencher given of its accessibility to
supermarkets and food chains.

5. Natural

Coke have enormously level-up from glass bottles to plastic bottles and cans. Though,
Flavored Coke are mostly available in can these cans can be recycled. Furthermore, powdered
Flavored will be packaged using recycled paper sachets.

E. Product Analysis

Nowadays, everything is an instant thus Coca-cola developed a new product form where
a soda drink is in a form of powdered drink. It has two interesting flavors cherry and vanilla.
What makes this interesting is its availability in a 4 gram sachet where it will be easily pour into
a bottle of water. Unlike any other powdered drink this offered a taste of real soda with vanilla
and cherry flavor. For soda lover this is a good alternative for a much cheaper price. Moreover,

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170
its price really will entice buyers since it is much cheaper compared
to flavored coke which is usually offered in cans. The packaging of this product is another factor
for creating a new packaging because it is made of recycled paper sachets. It is more
environment friendly and

affordable. Thus, this offers the customer an alternative for the flavored coke into a powdered
form which is more affordable, handy and cheaper compared to the original flavored coke which
is available in the market.

III. Opportunity and Issue Analysis

A. Opportunities and Threats Analysis

1. Opportunities

 Powdered Flavored Coke is an innovative invention and a product differentiation where

in new product is introduced in an existing market with a well established brand.
 It is an additional product differences among other competitors in beverages.
 The public tend to be interested with new products given an established brand.
 It is also an investment on flavored soda drink which enable to help a growing market.
 Coca-cola products will also be even better known by consumers by promoting this new
type of product form

2. Threats
 There is a strong competition towards other companies who offers beverages products.
 Changing trends on consumers preference may occur given that Powdered Flavored Coke
is new product and people tend to be more traditional and stick to the usual flavor of
soda.
 Substitutes of flavored soda drinks is also another risk because of other types of
beverages like tea and milk.

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170
 Consumers judgments on price of a product is very essential
and people tend to switch to other brand of soft drink if they find it very expensive

B. Strength and Weaknesses Analysis

1. Strength

 The strong brand of Coke is the main strength of the product. When you think of soft
drink, what comes to mind is Coke. Other stuff and souvenirs displayed the Coke brand
truly has an impact on people's mind.
 Coca-Cola As one of the largest manufacturer of soft drinks and beverages, economies of
scale is achieved in terms of producing a large scale of operations that lowers the cost of
production but also make profits.
 The advertisement of Coke also become its strength wherein people relate the image of
good life, and happiness for instance. Moreover, theme songs that were used in the
advertisement serve as a reminder for every people whenever it is played.

2. Weaknesses

 Harmful effects of soda is the primary weakness of Coca-Cola products. The image of
being a high sugar content drink is also known to consumer.
 Addiction to carbonated like Coke is bad for the health.
 Failure of some brands also affect sales and revenues.

IV. Objectives

This new product packaging is developed in order to maintain Coca-Cola as the leader of
a soft drink brand thus this Powdered Flavored Coke aims to :

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170

Financial Objective

 To increase sales of Php 500 000 in the first quarter of the year given this new
product form.

Marketing Objectives

 To offer a new kind taste to consumers through promotion and advertising

 To attain a market share of 10% by the end of 2015

V. Marketing Strategy

A. Target Market Strategy

Filipino teens and young adults with ages 12-29 living in the different regions in the
country and those who are fond of Coca-Cola products. This offers a new taste of an ordinary
soda drink with cherry or vanilla twist in its powder form.

B. Positioning Strategy

For those who are loyal to Coke this kind of product will make you curious that you will
taste it. It has this kind of taste that can be distinguish from other soda drink. The flavors cherry
and vanilla are distinctive flavors that the Flavored Coke only has. Health conscious will also
take a leap of faith with this product since it is in powdered form but still the taste of it is innate.
This new product form needs a lot of advertising and promotion. The branding has its advantage
given that Coke is a worldwide phenomenon.

C. Marketing Mix

1. Product Strategy

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170
1.1 Product Objectives

 To establish an innovative product with an establish brand

name.
 To offer consumers with the taste of soda in powder.
 To create a stronger branding to establish rapport between the brand and the consumer.

1.2 Product Mix

This product brings a level-up taste of a ordinary soda drink. These two flavors have two
distinct taste. I has the same ingredients carbonated water, high fructose corn syrup, caramel
color, phosphoric acid, natural flavors, and caffeine. These formula will still applied to powdered
flavor coke. The new packaging will be called "cherry Coca-cochet" or "vanilla Coca-cochet".
This flavored Coca-cochet or "coke in sachet" is a kind of product differentiation which offers

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170
availability of soda in powdered form. It is handy and could be pour
anytime to water and alas you have a flavored soda drink. This unique product form of flavored
coke enables the consumer to taste a powdered soda drink. It is also much cheaper than the
flavored coke in can. The materials of the sachet is made of recycled paper which make it easier
to open. It is available in 25 and 4 grams.

The idea of flavored coke sprung during retro days but it has been evolve into different flavors
just like the coke cherry and coke vanilla. This new form of the flavored coke will adapt the
popular tagline which is "Enjoyed the taste of the 80's".

2. Price Strategy

With this new form of product price penetration will much easy to start in lower cost.
Since, this powdered soda is originally available in cans which cost 30-50 pesos, a lower price
will induced demand which the consumer could afford. Given that demand is price sensitive,
prices of "cherry Coca-cochet" or "vanilla Coca-cochet" should be 70% off compared to original
price in can. The packaging of the product which is bio-degradable should be consider in pricing.
This affordable price may induce higher market sales however may attract competition.

Nevertheless, branding is clearly build-up and customers are mostly meticulous in choosing
brands. The 25 gram Coca-cochet is Php11.50 while the 4 grams is Php6.50.

3. Place Strategy

Coca-cola products are available everywhere hence, "cherry Coca-cochet" or "vanilla

Coca-cochet" should be distributed in groceries, supermarkets and stores nationwide. This direct
selling of the product may also available for restaurants and food chains across the country.

4. Promotion Strategy

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170
This innovative way of packaging of flavored needs promotion and
advertising. The most common medium of communication is through commercials in television
and radios. Interesting advertisements caught people's attention thus Coca-cola products are well
known for its taglines and theme song. A simple statement like "Open Happiness" or "Add color
to life, cherry and vanilla Coca-cochet sums it all!

Product advertisement online is helpful when it comes to advertising. Everyone is hook on social
media sites that ones the consumer encounter the ad it may entice them or make them curious
about the brand. Online advertisement on Facebook, Twitter, Instagram is an effective and

2015 2016 2017 2018

Sales
2000
Unit Sales 1500 1600 1800

Sales Growth(%) -Initial- 3% 6% 10%

efficient way to inform the customers with the new branding.

VII. Financial Objective

Table 1. Sales Forecast

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 Nirvana Dominique F. Bulacan
BS Econ IV
Mgt 170

2000
1500 Sales Forecast
1000
Sales

500
0
2015
2016
2017
2018
Year

Figure 1. Sales Forecast

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