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10 STEPMarketing Plan forCool and Clean (C2) Green Tea Cabunillas, Michelle Hao, Lady Morales, Joseph Serrano, Mira Villamor, Ivy June 2011

2. DisclaimerThis 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungrias AGSB marketing management class.The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.When appropriate, data are masked so as not to create unexpected conflicts.The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

3. Steps 1 to 5 Cool and Clean for a dynamic Lifestyle1. C2 primary target market are the Generation Y who wants healthy-living2. Healthy living for Every-BODY3. C2 positions as the dominant brand in the market using Blue Ocean Strategy4. Gap is the option for healthy drink, well distributed at affordable price5. Market size is Php 7B, C2s share is Php 5.19B (71%)

4. Steps 6 to 10 Tea for healthy better life6. C2: Imitated Never Intimidated7. C2 is 3% cheaper than Real Leaf and is 19% cheaper than One White Tea8. C2 effectively communicates its product through ADVERTISING, EVENTS AND EXPERIENCES, and WORD OF MOUTH9. C2 is available nationwide, even globally10. C2 Differentiated its Product, sold at affordable price created a niche for an untapped market share!

5. 1. C2 primary target market arethe Generation Y who wantshealthylivingDemographics:Age range: 10 45, Single or Marriedmiddle class income earnersClients of A, B, CWorks in Multinational firms, Private organizations and EntrepreneurFamily size of 1-4 kidsCity-based family or individuals, expats

6. 1. C2 primary target market arethe Generation Y who wantshealthylivingPsychographics:Travelers, Primarily Western beliefHealth-conscious / Weight watchers: goes to the gym and enrolled in different classes for

fitnessReaders of articles about health (man or womans health, blogs or internet)Has a trendy and exciting lifestyleActivities & Interests: sports, physical fitness and shoppingAttitudes & Beliefs: environmentalist, health and security consciousGo-getters individuals 7. 1. C2 primary target market arethe Generation Y who wantshealthylivingBehavioral:Individuals who are: independent, free spirited, has broad perspective and holistic view on their health.Concerned about the physical appearance and aging.Energetic and on-the-go people.Well-informed and well read about the latest trends in fitness and health. 8. 2. PTM needs to stay healthy inboth mind and body. Self-Actualization I am happy if I develop a healthier lifestyle Needs (Self-Development & Realization) Esteem Needs I want to be recognized for having (Recognition, Status) a healthy and fit mind and body. Social Needs (Sense of belongingness, love) I want a drink that increases immunity, reduces cholesterol, and prevent certain cancers Safety Needs (Security, Protection)I need a drink that has anti-oxidants and variety Physiological Needs (Food, Water, Shelter) of vitamins and minerals 9. 2. Healthy living for Every-BODY!!NEEDS: fit, lean and healthy; satisfaction for oneself to be accepted my society-physically.WANTS: affordable, refreshing and delicious drink who will quench the thirst of gym buff individuals and go- getters individuals.DEMANDS: readily available drink that will meet and exceed the expectations and needs of individuals who are living in a fast-paced lifestyle. 10. 2. Generation Y havecertain needs, wants, &demandsGeneration Y needs to have anti-oxidants, vitamins, and minerals to have protection against certain diseases, gain recognition for having healthy and fit mind and body, and develop a healthy lifestyleGeneration Y prefer C2 green tea over tea drinks in the market because of Taste, Ingredients, Packaging, Price, Brand Image, Variety, Quality, Brand Promise of a healthier lifestyle, BFAD approvalGeneration Y demands natural ingredients, refreshment,

lowers cholesterol, fight aging, to slim down, have a sexy and fit body, and live strong, long, and well for a healthy tomorrow. 11. 3a. Competing with the leading brand..DIRECT RTD(ready-todrink)TEA: One White Tea, Lipton, Alo, Real Leaf, Nestea, Sunkist, FitN Right, SolaINDIRECT: Powdered Iced Tea, Juices, RTD Coffee, Energy drinks, Water, Flavored-water drinks, Sodas, Sports Drink, Milk, Yoghurt DrinksVARIABLES: Price, packaging, taste, flavors, availability, health benefits and nutritional facts, brand, 100% natural product, variants, promotion, quality, brand promise of a healthier lifestyle 12. 3b. C2 positions itself as thedominant brand in the market as of 2011 Price /Age Matrix 0-15 yrs 16-30 yrs 31-49 yrs Real Leaf One High Nestea Price C2 Lipton Low Alo Price 13. 3c. C2 utilizes a blue ocean strategy as of 2011 Benefit Positioning vs. Brand Matrix C2 C2 Sugar C2 Nestea Diet Nestea Lipton Functional Benefit Green Real Leaf Alo One Free Envidia Green Tea Green Tea Green Tea Tea Offered in re- sealable bottles Variety of flavors Variety of sizes Sugar Free Slimming power Bottled the same day increase focus Increase immunity Cholesterol Reduction Prevention of Certain deceases Brewed from 100% natural tea leaves Save more 14. 4. Pre-C2: No product tosatisfy NWDsPrior to C2s entry, there was NO product that satisfied the PTMs NWDs.Healthy drinks were either expensive or does not taste good. 15. 4. URC took advantage of theHEALTH & WELLNESS TrendC2 was the FIRST ready to drink tea in the Philippines, which was widely accepted by the consumers because of its health benefits, taste, affordability and availability 16. 4. Number 1 option for ahealthier drink.C2 is the only RTD green tea That goes through the unique process of capturing the purest and most natural green tea That is brewed and bottled the same day That

contains Camellia sinensis and Catechin Who captures the Yin and Yang nature with its soothing and relaxing component For generation Y 17. 4. C2 positions itself with flavor variants and wide distribution channels. Comes with sugar and sugar free choices In 12 fruit flavor variants known to Pinoy taste Reasonable Price, below competitor price Is distributed locally, down the street up to supermarket shelves, and internationally (now in 32 countries and territories) 18. 4. C2 positions itself asmarket leader.Brighter, Healthier tomorrowIts easy to stay refreshed, positive, and thankful for the best things in life when C2s around.C2 share, C2 refreshing, C2 immuniTEA, C2 sarap Source: C2life / Universal Robina website 19. 4. Do the customers know all NWDs where being addressed in the C2 products?...C2 trying to eliminate gap thru customer experiences C2 captures that special bond Filipinos have with their favorite green tea drink with its new campaign, C2 Expressions. Focusing on slices of life of different Pinoys, the ad campaign highlights how C2 drinkers from all walks of life create special experiences daily with their drink of choice, C2 Green Tea 20. 5a. Estimate the market size usingZest-O Corporation Data Zest-O Corporation is not included in the publicly listed company per PSE website Thus, financial data is not publicly available. 21. 5a. Estimate the market sizeusing RFM Financial Datasame with URC DataRFM Financial data does not show direct attribution to totalsale the contribution of its Real Leaf green tea product. Onlymarket ratio is shown in the financial statement which wasobtained from same source (AC Nielsen) with that of C2. 22. 5b. Market size is Php 7B, C2s share is Php 5.19B (71%)CompareRFM data aswell as URCdata toarrive at thetotal marketof green tea.

23. 5b. Market size is Php 7B, C2s share is Php 5.19B (71%) 24. 5b. Market size is Php 7B, C2s share is Php 5.19B (71%) 25. 5b. Estimate market share using companys data and independent source The increase in BCFG Division where C2 is included was stated to have been diluted by tampered flattish sale of other items in the product line. To be conservative with the computation, we assumed that increase in Sales was attributable to increase of C2.

26. 5c. Estimate the market sizeusing customer dataAssumptions: Say for every case there is 14 bottles 94 M million Philippine population in 2010; 11 million in NCR where 63.6% voting (more than 18) = 6.9MComputation:# of bottles 14 x 16,318 sold bottles in 2010 = 228,452 bottles# of bottles consumed in NCR=228,452*63.6%= 145, 295.47 / yr.Sales for 230 ml (21% base on company data) = Php 275K 145,295.47 X 21% x P 9 (see price list)Sales for other (79% ave of P21.79/bottle) = Php 2.5 M 145,295.47 X 79% x P 21.79(see price list)Total Sales in NCR = Php 2.8 MTotal Sales in Philippines (divided by 63.6%) = Php 4.4 M http://blog.cathcath.com/total-population-of-the-philippines-in-2010-andthe- presidential-election-when-the-presidential-candidate-needs-only-afew-millions-to- win-6965.html http://www.census.gov.ph/

27. 5. Market size for Green Tea Market is at Php 7.3B amounts in1. Competitor data = Php millionZest-O Corp for One White TeaNot availableRFM for Real Tea - same source withURC =71% for C2 while 10% for Nestea2. Company data = Php 7.3 B3. Customer Usage data= Php 4.4 M Company data is chosen due to more precise and reliable data gathered. The choice however is also made based on the best judgment.

28. 6a. C2: ImitatedNever Intimidated C2 Sugar-free C2 on the shelves C2 Litro C2 Solo C2 Envidia

29. 6a. Competitors scrambled toreplicate C2s success Direct Competitors Real LeafOne White Tea Lipton Ice Tea

30. 6a. C2s Indirect Competitors Captures Its Part of the MarketCoke Sunkist Del Monte Pineapple Lipton Hot Tea Del Monte Nestea Iced Tea Fit n Right

31. 6b. C2s Refreshing Variants and Sizes Sizes Flavors 230 ml 355ml 500ml 1L 1.5LPlain Green TeaLemonPeachOrangeAppleForest FruitsStrawberryMixed BerriesPine-OrangeLegends:C2 Green TeaSugar FreeC2 Envida

32. 6b. C2 Green Tea in Different Flavors and Sizes C2 is made from natural green tea leaves of Camellia sinensis, brewed and bottled on the same day. C2 Green Tea comes in a variety of flavors, ranging from classic and comforting to exotic and exciting. Savor Plain Green Tea, Lemon, Peach, Orange and Apple in their original brew. C2 Green Tea is available in 230ml, 355ml, 500ml, 1000ml and 1500ml pack sizes

33. 6b. C2 Sugar-free, ZeroCalories! C2 Green Tea Sugar-free Apple is the new line extension of C2 that caters to the health-conscious market since it is sugar-free and it has zero calories. is available in 355ml and 1500ml pack-sizes

34. 6b. C2 Envidia Slims Down Fats in 6 weeks! C2 Envidia, a deliciously refreshing health drink can help provide that extra fat- burning boost that aids in ensuring a fit and healthy body contains L-Carnitine and EGCG (Epigallocathecin gallate) that gives it two times the slimming power of other fat- burning drinks has zero sugar It comes in three delectable flavors: Apple, Mixed Berries, and Pine-Orange

35. 6b. The C2 Differentiating Formula As-It-Is Ready-to-drink green teabased Brewed from fresh natural green tea leaves of Camellia sinensis which contains antioxidants called Catechins that are known for their numerous health benefits: increased immunity, cholesterol reduction, and the prevention of certain cancers. Brewed and bottled on the same day to ensure that each sip retains its healthy nutrients and flavorful goodness. Comes in variety of flavors palatable to Pinoy tongue and loved by the

world C2 reflects the dynamic lifestyle of the cyber age. C2 has a brand promise of a brighter, healthier tomorrow. 36. 7. C2 prices at storeoutlets in your friendlyneighborhoodBased on observation of 1 super market (Puregold Delpan), 2 convenient store, 3 sari-sari store in Makati. 37. 7. C2 prices in comparison with Direct Competitors C2 used combination of promotional pricing and economy pricing is used to be at par with competitors.Based on observation of 1 super market (Puregold Delpan), 2 convenient store, 3 sari-sari store in Makati. 38. 8a. C2 effectively communicates its product through ADVERTISING, EVENTS AND EXPERIENCES, and WORD OF MOUTH.#1#2 #3 39. 8a. The C2 brand has itsown website http://thec2life.com/ Regularly updated Comprehesive info about the brand 40. 8a. C2 on Facebookhttp://www.facebook.com/C2CoolandClean C2 has a fanpage in Facebook Regular updates for customers to be informed 41. 8a. Every-BODY, Every reasonand Everywhere!! The C2 Life! Malls, supermarkets, beach and booths. 42. 8a. C2 Sarap ng Summer Baguio 2011 Like Baguios rejuvenating atmosphere, C2 gives its users a refreshed feeling with the benefits of green tea 43. 8a. C2 Sarap ng Summer Boracay & Puerto Galera 2011 People prepare to be lean, fit, and sexy when they go to the beach so they can wear the killer bikini or show off their 6- pack abs. Living the C2 life will give you that result. 44. 8a. C2 @ UA&P SchoolOpening C2s booth at UA&P last June 8 Promote health & wellness to the youth

45. 8a. C2 be read! Newspapers/Magazines 46. 8a. C2 be heard! Radio Advertise latest promos, products, and events through radio

47. 8a. C2 has no top celebrityendorser This simply proves that C2 does not need a top celebrity to influence PTM.

48. 8a. C2 says take care of your body to carryon what passion you have now in achievingfutures sweet achievements C2 TVCs showcase various types of individuals, which can be found across all PTM social classes

49. 8a. Be fit, fab and loaded with Sarap mag-C2, Sarap maging Milyonaryo promo Most recent promo from C2. Duration was from May 131, 2011

50. 8b. Real Leafs (Coca-Cola)challenges C2 with honey and greentea for better concentration Real Leaf has its own Facebook page.

51. 8b. Real Leaf Recent TVCs TVCs of Real Leaf, 2 of the 3 endorsed by celebrities

52. 8b. Real Leaf MostRecent Promos Promo duration was March April 2011.

53. 8b. Lipton Iced Tea (Pepsi)Static Communication No ongoing promos No ongoing TV ads No own local website unlike C2

54. 8b. One White Tea (Zest-O) Last Update was 2008 Despite the brand having its own website, last update was 2008. C2 updates its website regularly which makes them more advantageous in reaching out to PTM who regularly surfs the internet. No ongoing promos

55. 9. C2 is availablenationwide, evenglobally C2 is available in the Supermarkets, sari-sari stores, convenience outlets, drugstores nationwide

56. 9. C2 across 32 countries and territoriesSource: http://thec2life.com/c2-global-locator/

57. 10. C2 Differentiated its Product,sold at affordable price created aniche for an untapped market share! Low Cost Producer Supply and Distribution Leverage Differentiation Niche Focusing on the product differentiation gives the C2 the edge and untapped market share since its product launch in 2004. Pricing strategy was low for more affordable healthy drink. C2 created a niche which its competitors are scrambling to conquer. Although they also have price low prices, what makes them stay as the market leader is the availability and supply of the products at any type of market.

58. SUMMARY 59. Steps 1 to 5 Cool and Clean for a dynamic Lifestyle1. C2 primary target market are the Generation Y who wants healthy-living2. Healthy living for Every-BODY3. C2 positions as the dominant brand in the market using Blue Ocean Strategy4. Gap is the option for healthy drink, well distributed at affordable price5. Market size is Php 7B, C2s share is Php 5.19B (71%)

60. Steps 6 to 10 Tea for healthy better life6. C2: Imitated Never Intimidated7. C2 is 3% cheaper than Real Leaf and is 19% cheaper than One White Tea8. C2 effectively communicates its product through ADVERTISING, EVENTS AND EXPERIENCES, and WORD OF MOUTH9. C2 is available nationwide, even globally10. C2 Differentiated its Product, sold at affordable price created a niche for an untapped market share!