COCONUT WATER MARKETING

PLAN BY
VITI KEI ROTUMA CORPORATION

GROUP 12 MBA
437
RUSIELI MUA
KELERA WHIPPY
LANIETA TAGICAKIBAU
1. INTRODUCTION
COMPANY PROFILE
VISION
ORGANIZATION STRUCTURE

2. SITUATION ANALYSIS
MARKET DEMOGRAPHICS
NEEDS
TRENDS
GROWTH & SIZE

3. MACROENVIRONMENT
COMPETITION
PERFORMANCE INDICATORS
SWOT ANALYSIS
4. MARKETING STRATEGIES
STATEMENT
PLAN OBJECTIVE
TARGET MARKET
POSITIONING STRATEGY
MARKET MIX
5. FINANCIAL ANALYSIS
BREAK-EVEN
SALES FORECAST
EXPENDITURE FORECAST

6. IMPLEMENTATION CONTROL
APPROACHES
STRATEGY
MARKETING ORGANIZATION
CONTINGENCY PLAN
DIFFICULTIES & RISKS
ETHICS AUDIT

7. REFERENCE

8. DISCUSSION
1. INTRODUCTION

. COMPANY PROFILE :
VKR Corporation is owned by four [4] women who
are from two ethnic groups of Fiji, namely Fiji and
Rotuma.

We are a partnership entity registered under the

Companies Act of the Republic of Fiji based in
Lautoka and will be operating from a leased
property of 20 acres in Matawalu, Lautoka through
land tenure agreements of 50 to 99 years lease.
Our 20 acre property will be run from foreshore to
the hills of mataqali land of Matawalu Village.

VKR Corporation aims to promote our product Fiji

Coco H2O first to primary schools within the
urban and peri-urban areas of Lautoka.
 VISION :
The premier producer of the drink that
sustains health and wealth in you

ORGANIZATION STRUCTURE : FLAT

MARKETING MARKETING FINANCE MARKETING

ANALYST CONTROLLER CONTROLLER AUDITOR
2. SITUATION ANALYSIS

MARKET DEMOGRAPHICS:
Market segmentation divided into two well defined slices to
understand population and behavioral traits.

In 2012 Lautoka had a total of 84 primary schools

(1 government, 80 non-government, and 3 private schools)
MOE Annual Report 2012.

Classes 1-4 lower classes (Ages 6-9)

Classes 5-9 upper classes (Ages 10-13)

Primary school distributions within Lautoka are:

39 schools within urban areas

24 schools in rural areas and;
21 schools in remote areas.
Corporation will focus on the 39 Primary
schools located in the Urban areas:

Net enrolment per class: 35 students (Approx.)

Minimum No of streams: 3 x (8 classes) =24

(Approx.)

Total students per school: 840

Target Market (39 schools): 32,760

(approx.: 26.4% of potential target market)

Potential Market: 24,187

Study on dietary patterns in Fijian children
concluded that almost all adolescents
frequently consume sugar sweetened beverages
(SSB), low intake of fruit and vegetables and
high fat/salt snacks after school.
(Wate, Snowdon, Millar, Nichols, Mavoa, Goundar, Kama and Swinburn
(2012) )

Nearly one quarter of sample reported irregular

breakfast during school days with Indo Fijians
more likely to regularly consume breakfast, but
had an unhealthy SSB and snack consumption.
(Wate et.al.)

Fiji Coco H2O will be a healthier choice of

product that can substitute such SSBs and
fizzy drinks to improve health and wellbeing.
 NEEDS :

The Academy of Nutrition and Dietetics said coconut water is

healthier than fruit juice, as long as its unflavored and doubles the
calories of coconut water and potassium level that help prevent stroke
and heart attack.

Singh, R (2009) argued that coconut water can be used for whole
body rehydration, reduce nausea and no stomach upset, but fullness
when consumed which suits target market, considering their high
activities trait.

Further Athukorale D.P. (2008) pointed out that coconut water has
higher ratio of amino acid, arginine, alanine, cisteina (essential) and
serina, greater than those found in cows milk, a perfect natural
isotonic which reinstitutes energies, dissolve kidney stones, protect
against cancer, balances sugar relieves constipation, improves blood
circulation, lowers high blood pressure, posses anti-aging properties
and enhances immune function.
(COCOINFO International Journal, Vol. 19, No.2, 2012)
Coconut water is said to be rich in essential electrolytes.
Electrolytes are minerals in your blood and other body fluids that
carry an electric charge. They have an effect on the amount of
water in your body, your blood pH, and muscle function.
Common electrolytes include:

Bicarbonate
Calcium
Chloride
Magnesium
Phosphorous
Potassium
Sodium

Potassium is one of the most important electrolytes there is and its

functions in the body include regulation of fluids and mineral
balance in cells, maintaining of blood pressure and transmission of
nerve impulses as well as muscle functions.

As it is able to help draw water into cells and into the blood, the body
is thus able to rehydrate quickly.
Drinking water can hydrate you, but it does not have that
speed of hydration [of coconut water] because it doesnt
have the electrolytes in it. Electrolytes can also prevent
muscles from going into cramps and spasms.

For breast-feeding mothers, young coconut water also

contains lauric acid, which is similar to that found in
breast milk. Its anti-fungal, antibacterial and antiviral
properties help keep diseases at bay in mother and baby.

It is has been suggested that coconut water, extracted

from a nut that has no cracks or damage, is sterile hence
has been used as blood plasma substitute.
Coconut water intravenous (IV) therapy has been in use
for more than 60 years, as far back as World War II.

There are reports dated up to 1976, which documented

similar usage when coconut water was effectively used
in emergency situations as a temporary alternative
where standard medical supplies were not readily
available.
These health benefits greatly suit both target and potential market,
which is supported and promoted by government as targeted in
three out of the eight Millennium Development Goals.

Fiji Coco H2O is a Fijian natural drink that is familiar and

consumed by all ethnicities cultures, age and communities.
TRENDS:
Fiji, is an island paradise. However there is trouble in paradise. Its
people are dying prematurely of lifestyle diseases known as non-
communicable disease [NCDs] arising from changes in their diets
or the lack of good nutrition in their foods and healthy living.

It is believed that non-communicable diseases [NCD] can be

minimized through consumer behavior.

The available data and information on the health status of our

nation, presents an opportunity for our corporation to assist in
addressing this problem.
 TRENDS:

In our marketing research we looked at consumer behavior at

childhood level has been proven that [NCDs] is the result of
unhealthy diets from younger days. The research on Diet of
children in Urban and Rural Fiji by [Sinead Katherine Kado BSc,
MBBS] and its relevance to non insulin dependent diabetes
[NIDDM], concluded that children in the urban areas consumed
more imported foods with a higher intake of saturated fats,
protein and refined sugar, in comparison with the rural group of
children who ate mainly Fijian produce.

It is postulated that these differences in diet form a risk factor in

development of NIDDM. This has many implications for the
health of Fijians where diabetes is becoming more prevalent. The
Fijian government should continue its health programme in
schools, monitor the promotion of refined foods and instigate a
policy for selling of food in schools. Fijians should also be
encouraged to return to their traditional food as much as
possible.
 TOTAL NEW CASES 2013/2014
(WESTERN DIVISION)
3000
2588
2500

2000

1500
1131 1181
1000
610
500
267
129
39 15
0
Diabetes Hypertension Dual RHD
2013 Column1
 TOTAL REGISTERED CASES IN THE WEST 2013-2014
8000
7421
7062
7000

6000
5149
5000 4697

4000

3000 2853 2825

2000

1000
491 333
0
Diabetes Hypertension Dual RHD
2013 Column1
 MARKET GROWTH & SIZE:

Coconut water is the new trend in soft drinks and is one of the
fastest growing water in the United States and the United Kingdom
due to mass appeal to ethical and health conscious consumers and
those leading an activity lifestyle, with sprouting predictions that it
could overtake orange juice sales (as in Brazil), with 250 companies
having beverages with some form of coconut water in its content
Arnold C. (2012).

Corporations current portfolio and desired sales indicate strategic

planning gap where VKR Corporation will identify opportunities to
build or acquire business related to current product (integrative
opportunities) such as aligning itself to market leader in the future,
such as Fiji Water and adding attraction to unrelated businesses
such as introduction of healthy food (diversification opportunities).
3. MACROENVIRONMENT

Fiji Coco H2O falls under the oligopoly market where few
markets dominate and highly concentrated market is shared
between firms (UK Business Economics online). Although
only a few firms dominate it is possible a small firm such as
VKR Corporation may operate in the market. VKR
Corporation works out range of possibilities when
competitors react by observing strategies launched by rivals
and improving on such strategies or undermining them with
better innovative strategies. Fiji Coco H2O product due to its
uniqueness within the countrys borders explore economies
of large scale production to create strong brand that creates
loyalty and locks in customers by extensive advertising and
direct marketing.
 COMPETITION:
o Coca Cola
o Pepsi
o Fiji Water
o Rewa Dairy
o Roadside vendors

COMPETITOR PRODUCT & PRICES

Company Product & Bottle Capacity Price

Coca Cola Fiji Pulpy : 375 mls $2.30

Frubu: 500 mls $2.00
Can coke 375 mls $1.60
Coke bttle 600 mls $2.00
Jucy bttle* 1 litre $2.30
[*new coconut flavor]

Fiji Water 500ml $2.00

1.25 ltrs $2.25
1.5ltrs $2.50
Rewa Dairy Fun Flavour : 250mls $1.20
Roadside vendor selling fresh coconut juice 1 nut: 200mls to 1 litre $2-$3.00
 PERFORMANCE INDICATORS:

DUE TO THE POPULARITY OF OUR FIJI COCO H2O

INTO THE MARKET WE WERE ABLE TO ATTRACT A
LARGE MARKET SHARE

AT INITIAL STAGE, WE HAVE ATTRACTED A LOT OF

BUYERS INTO THE MARKET, ONCE WE HAVE
ESTABLISHED WELL AND APPROACHING OUR
MATURITY STAGE WE WILL STRATEGIZE OUR MARKET
TO TARGET OTHER POTENTIAL CONSUMERS IN THE
VARIOUS GEOGRAPHIC LOCATION IN OUR DOMESTIC
ZONE
 SWOT ANALYSIS:
STRENGTHS
LOW PRODUCTION COST
YEAR ROUND AVAILABILITY
OF RAW MATERIAL
PRODUCT SUPPORTS GOVT
INITIATIVE
PRODUCT IN LINE WITH GOVT
DEVELOPMENT PROGARMME
OPPORTUNITIES
TARGET NCD CASES IN
LAUTOKA
WHEN SMALL CAN MAINTAIN
QUALITY,PRICE & GROW
MARKET STEADILY
EXTENDING PRODUCT
BOUNDARY
IMPROVE & INCREASE
CULTIVATION OF FIJI SHORT NUTS
IN STRATEGIC FARM PLANS
WEAKNESS
COCONUT VARIETY
EXISTING DETERANT TO
ACHIEVING FORECASTED
SALES
VKR CORP NEW AND
SMALLER THAN EXISTING
BEVERAGE INDUSTRIES
THREATS
CLIMATE CHANGE
PESTS & DISEASES
LOCATION MOST COCONUT
TRESS VULNERABLE TO RISE IN
SEA LEVEL
COMPETITION FROM WITHIN THE
COCONUT INDUSTRY ON BY-
PRODUCTS
SUBSTITUTE PRODUCTS-
BEVERAGES
4. MARKETING STRATEGIES
. STRATEGY STATEMENT:
Making Fiji Coco H2O a drink that brings health & wealth

. MARKETING PLAN OBJECTIVE:

We will create Fiji Coco H2O offering to serve unmet or
even unknown customer need. VKR Corporation proposes
to weekly capture 1.2-1.7% of target population within a
school (10 -15 bottles per week in a school roll of
approximately 840) for its first 2 year launch. From the 3rd
year VKR

Corporation will target 3.5% of target population per

school, 4.4% in the 4th year, 4.6% in the 5th year and 5% in
the 6th year and 5.3% in the final year, with increased
revenue after the launch. We intend to penetrate the target
population (10%) within 7 years through intensive
marketing and lengthening maturity stage of product cycle
by introducing natural flavors (diversification) to attract
potential markets.
 PROPOSED POSITIONING STRATEGY:

Primary target market is 26.4% of total population (primary

schools in the whole of Fiji) and later on to the secondary
schools with target population of 68, 425 (Ministry of
Education 2012 Annual Report).

We plan to penetrate secondary school segment with an

initial size of 10% from the 5th year after launch which will
initially rake in additional revenue of $6,8425.50 and 0.4%
yearly increase thereon. In the long run, we will eventually
target whole population and aim to gain 10-15% market
share of 837,271 (Fiji 2007 Census Fijis total population)
with initial minimum projected sale and revenue of
$83,727.10 per quarter.

During the 7th year, VKR Corporation will explore modifying

product to suit tourism market (total population of 859,540)
with targeted additional 5-10% sales projection during and
after launch.
 MARKETING MIX

1. PRODUCT SERVICES
Fiji Coco H2O will be differentiated through packaging and design
and customized to suit each segment providing higher quality for
less money.

Product hierarchy points toward Need Family to highlight core

need that justifies existence of product.
Proposed new product development will promote Product Family
level where all new diversified products will satisfy core need
effectively in order for VKR Corporation to strengthen brand and
create positive impact.

General guarantee will be printed on package where unsatisfied

customers may return, exchange product or can ask for refund.

These general statements suggest high quality and customers may

perceive company to be dependable, which is helpful for products
which are of superior quality than that of competitors.
2. PRICING:

VKR Corporation will use a mixture of pricing objectives -

survival, maximum current profit and maximum market share in
order to cover variable and some fixed cost when intense
competition arises in the short run, choose realistic price
(considering target markets buying power) that produces
maximum current profit, cash flow or rate of return on
investment.
We will use the target return pricing method where we decide
price that yields rate of return on investment. Mark-up pricing will
be used in tourist markets due to buying power. We anticipate
reaching break even volume within the 3rd year (after launch).

There will not be any price discounts and allowances due to its
low pricing method to maintain desirable return, however we will
explore channel pricing where prices may slightly differ depending
on whether customer purchases product at a hotel, fine
restaurant or vending machine. Although we intend to dominate
market with lower costs, we aim to promote quality, health and
wealth to create strong brand.
3. PROMOTION:

VKR Corporation will use the following consumer promotion

tools to promote product offer;

4. Samples offer free amount of product through direct,

door to door.

2. Prizes (sweepstakes) to win a free carton of Fiji Coco

H2O if they purchase product and win the draw.

3. Free trials -Inviting prospective customers to try free

product at major supermarkets in Lautoka in hopes that
they would eventually purchase product.
4. DISTRIBUTION:

VKR Corporation will adopt the integrated marketing channel

system where it will place Fiji Coco H2O in school canteens.

This will include all Lautoka city primary schools, and to retailers
to increase market share by running campaigns informing
prospects about product through advertising, taking part in health
and wellbeing programmes and choosing the best communication
marketing mix to optimize coverage, customization and control
while minimizing cost and conflict.
 5. FINANCIAL ANALYSIS
. BREAK-EVEN ANALYSIS:

Year Target per Target Unit of Total Nuts TVC $ TFC Total Cost

school production & Required $

Revenue $ or 39

sch.

Launch 1 420 16,380 8,190 20,337.50 11,500 31,837.50

Launch 2 630 24,570 12,285 25,756.25 11,500 37,256.25

1 1358 52,962 26,481 43,601.25 11,500 55,101.25

2 1554 60,606 30,303 48,478.75 11,500 59,978.75

3 1638 63,882 31,941 50,626.25 11,500 62,126.25

4 1764 68,796 34,398 53,797.50 11,500 65,297.5

5 1890 73,710 36,855 56,968.75 11,500 68,468.75

 REVENUE, BREAK EVEN PROJECTION
80,000

70,000

60,000

50,000
Revenue
VC
FC
$$ 40,000 TC

30,000

20,000

10,000

0
launch 1 launch 2 yr 1 yr 2 yr 3 yr 4 yr 5
 SALES FORECAST:

Launch Launch 1st term 2nd term 3rd term 2nd year 3rd year 4th year 5th year

1st yr 2nd (14 32 35 37 39 42 45

10 bott year weeks) bottles bottles bottles bottles bottles bottles

x 42 15 bott 30 bott per per per per per per

wks x 42 per wk week week week week week week

EXPENDITURE:
wks
420/sch 630/sch 420/sch 448/sch 490/sch 518/term 546/term 588/term 630/term
 EXPENDITURE FORECAST:
TENTATIVE BUDGET

Variable Costs
Salary (1 operator, I Laborer) $19,000 (9,500/staff)

Cost of Raw material 26,481nuts x $1.25= $33,101.25

Preservatives Cost (Pottasium sorbate $500 ($400 during launch yrs)

and sodium metabisulfite) Plus $100 additional/per volume/yr

Fuel/Maintenance/Insurance $10,000/yr

Fixed Cost
$30,000 Building
$25,000 Land Total: $115,000
$60,000- complete automatic Repayment: $11,500/year
coconut water plant machine
6. IMPLEMENTATION CONTROL

7. Annual Plan Control in order to examine achievements of

desired results. This would be conducted by Ms. Rusieli
Mua, who will analyze sales and market share by using market
metrics to measure performance weekly, monthly, quarterly and
annually, in order to capture sales to expense ratios and financial
analysis.

2. Profitability Control to be monitored by the financial

controller, Ms. Kelera Whippy who will examine where company is
generating revenue and identify areas where it is losing money.
Specifically, she will use this approach to measure profitability of
product, localities, customer segments, trade channels and order
sizes from each segment to determine opportunities for expansion,
reduction and marketing activities.
3. Efficiency Control - To be conducted by marketing
controllers, Ms. Lanieta Tagicakibau who will examine
adherence to profit plans, measure efficiency of
promotions, analyze media production costs, evaluate
customer and geographic profitability, and train future
marketing staffs on financial implications of marketing
decisions.

4. Strategic Control Marketing auditor, Ms. Ruth Atu, will

conduct a comprehensive, systematic and periodic
examination of companys marketing environment, objectives
strategies and activities, to determine weakness,
opportunities and giving recommendations for improving
performance.
 STRATEGY:

Strategy 1: Company will position product by offering the best quality

through extensive marketing to satisfy and retain a delighted target
market. Marketing team which consists of company founders will be
tasked with marketing programmes which will take place before and
during and after launch. Each person will target the ten schools each,
depending on location by conducting direct marketing, advertising,
conducing testers in major supermarkets of Lautoka and supporting
health and community programmes such as Health Walk activities. This
will strategically create awareness and also position brand for potential
market in the long run.

Strategy 2: Company will investigate competitors in the market to

compare value and satisfaction by value offering and position product
by offering the best quality through marketing research and survey. The
top four management will be responsible by periodically analyzing and
monitoring strategic steps taken by competitors and comparing sales
volume to determine value added conviction from each segment. This
will strategically allow team to innovatively surprise target and potential
market with new product development consistent with brand.
 MARKETING ORGANIZATION
In the long run, company anticipate tapping into different user groups
which comprises of distinct users with different buying preference and
practices, for example tourism market, health conscious customers and
traditionalist target markets., thus market centered organization is desirable
for company, with a horizontal structure that will encourage
empowerment, higher accountability of overall quality of relationships and
employees freedom to take actions in satisfying customers individually
(Kotler and Keller, 2012).

Manager

Market Communication Sales Distribution Finance Engineer

researcher specialist manager specialist specialist

Horizontal Team (Kotler and Keller, 2012)

 Contingency Planning:

Insurance and Contingency farming

Difficulties & risks (in the first three years)

1. Lack variety of Fiji Short

2. OHS risks injuries (high risks)
3. Labor intensive (initially)

Ethics Audit
1. Review VKR Corps formal code of ethics
2. Ethnic training programme of compliance policies
3. Look into past breaches of ethics and address it.
4. Speak with employees regarding their impressions of the VKR
Corp commitment to ethics.
7. REFERENCE
Kotler P., Keller K. L. (2012), Marketing Management 14th Edition

High Commission of the Republic of the Fiji Islands, London Media Report ()

Fiji TV Annual Report 2011

Ministry of Education, National Heritage Culture and Arts 2012 Annual Report

Ministry of Agriculture 2013 Annual Report

Rakesh K. (2002) MBA CUSAT Business Plan.Retrieved [03.10.14] from the World Wide Web
http://www.fijitimes.com/story.aspx?id=234913

Kado S. K. () Diet of Children in Urban and Rural Fiji, Pacific Health Dialog Vol. 6. No. 1.

Wate T. J., Snowdown W., Limmar L., Nichols M., Mavoa H., Goundar R., Kama A., Swinburn B., (2013)Adolescent Dietary
patterns in Fiji and their relationships with standardized Body Mass: Retrieved [03.10.14] from the World Wide Web
http://www.ijbnpa.org/content/10/1/45

United Nations Educational Scientific and Cultural Organisation Education for All Mid-Decade Assessment Report (2008).

UNICEF 2011 Report on Children in Fiji: An Atlas of Social Atlas

Fiji Bureau of Statistics 2007 Census Report

Tropical storm in the food and drink market: launches of coconut water quintuple over the past five years Published on
May 31st, 2013, Mintel
 CONCLUSION

The ITaukei saying Vinaka Vaka Niu means that this

product is PERFECT We present to you the best part of the
coconut, the coconut water, take Fiji Coco H2O.
DISCUSSION !!