MARKETING MIX

SUBMITTED BY: ESHIKA SHARMA MONALI WANI RIDHI NAHATA SONAL MARWAH SWATI RAWAT

Introduction
Introduction of an innovative new ready to drink flavoured tea in the Chinese market in collaboration with Ting-Hsin International Group. The product already has a presence in India and is well established. T-BuzZz will be marketed as a unique green tea based functional drink while striving to be the leader in innovation and successful product launches.

The marketing strategies is to satisfy the needs of the still-un served market for ready-to-drink flavoured tea.

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 consumers with a new eye-catching and FUNctional product; To become the market leader in the functional drinks segment with increased market shares and providing unconventional flavors to meet the changing needs of the consumers. Focusing on providing healthier options in functional drink segment.

Situational analysis

Industry Analysis
Where does the product stand?
FOOD & BEVERAGE

Carbonates RTD Coffee

Fruit/Vegetable Juice

SOFT DRINKS

Concentrates

RTD Tea Bottled Water Functional Drinks

Industry Analysis
The Functional Drinks Market

Segments of the functional drinks market

Energy drinks Nutraceutical drinks Sports drinks Smoothies (Milk & Juice Drinks) RTD tea (T-BuzZz)

Industry Analysis

Consumer Trends

Trend towards healthier alternatives in the functional segment. Concerns about negative health impacts of carbonated drinks. Quick maturation in the core segments. Trend towards new flavours and trendier products.

Industry Analysis - Strengths, Weaknesses,

Opportunities, Threats Strengths: Unique product. Preferential drink. Well established network of the collaborating brand. Strong existing distribution channels of Uni-president group and co.

Weaknesses: New to the market. Limited experience of consumers Relying upon others.

Industry Analysis - Strengths, Weaknesses,

Opportunities, Threats
Opportunities Introduce new type of iced-tea. Create curiosity and be the first to bring it to mainstream. Declining markets for other beverages such as soft drinks. Greater awareness of health benefits of tea. Increased disposable incomes. Threats: Major competition from market leader Uni-President Group Co., Ltd and other big manufacturers. Prospect of rejection in finding distribution partner or retailer unwilling to take on new product. There can be a chance of cultural clashes.

ENVIRONMENTAL ANALYSIS
WHY CHINA? The liberalization of China s distribution sector in the last few years has opened a new vista of choices to foreign companies looking to move and sell their goods in the country. Offers foreign manufacturers and their agents new convenient distribution channels and test-marketing platforms for their goods. The rise of supermarkets and hypermarkets with their highvolume ordering has forced radical changes on the old distribution system.

DEVELOPMENT OF CHINESE BEVERAGE INDUSTRY

A continued growth in production and sales. In 2009, China produced 80.862 million tons beverage. The average annual growth rate is 24% in past five years. Active foreign investment. In the first half of 2009, the number of foreign investment projects in Chinese beverage industry reached 41 with total investment $ 611.48 million, of which 10 projects are involving the categories of tea drinks and other soft drinks, with investment $ 288.24 million, accounting for nearly 50% of total investment.

 Enhancing market concentration. The top 10 production in Chinese beverage industry include Coca-Cola, Wahaha, Ting Hsin, etc.; the top 10 sales companies are Coca-Cola, Ting Hsin, Pepsi, etc., which sales value accounted for 42.70% of the total sales in the country in 2004 and increased to 55% in 2009. The market concentration is ever-increasing. Improving health concept of products. The categories contributing to the largest production include bottled water, fruit & vegetable juice and drinks and carbonated drinks. Bottled water dominates Chinese market in long-term; the productions of fruit & vegetable juice and health drinks and carbonated drinks are not very different. But in 2007, fruit & vegetable juice and health drinks exceeded carbonated drinks with a faster growth rate

Categories

Annual growth 2009 (million rate predicted tons) 10% 20% 20% 10% 25% 15% 20%

2015predicted ( million tons) 2200 4300 9400 1700 500 6000 24000

Carbonated drinks 1254 Fruits & vegetable 1448 juice and drinks Bottled water Tea drinks Canned herb tea drinks Other drinks Soft drinks 3159 941 167 1118 8086

PEST ANALYSIS
Political factors: Central govt s stimulus package and various strategies have strong influence towards domestic demand and national consumption. It is very likely people s intention to consume would increase as a result.

Economical factors: .China has enjoyed rapid economic growth in the past decades with an annual GDP growth rate of 9.2% from 1979-2008. Increase in purchasing power.

 Social factors: Highly influenced by west. Healthy trends are accepted.

Technological Factors New and improved techniques of production, storage, transportation etc. Cheaper as well.

BARRIERS TO ENTRY:
Business practices Manufacturing
 Due to the number of  Producing bottled competitors, it will be Bubble Tea requires hard to prevent sizeable capital imitation behaviour investments for the (especially from Ting specific needs of the Hsin International manufacturing chain Group) (from ingredients to  Risk of competing with final packaging emerging private labels specifications) (e.g. President s Choice)  The marketing  Given the wide array of campaign to make this brands (saturation in unknown brand popular the soft drink market), requires more it becomes a challenge promotional for Bubble Buzz to expenditures than a stand out traditional brand extension

STP

SEGMENTATION
GEOGRAPHIC 1) Country 2) Region China Shanghai, Hong Kong, Beijing,

DEMOGRAPHIC 1) Age 2) Income 3) Qualification 10-35 years All income groups Students, graduates and young professionals

PSYCHOGRAPHIC 1) Personality EXperimentative, openminded, free spirited, energetic , health conscious, quick maturation with modern products. Highly influenced by peer groups, active life, importance of school, work and social life

2) Lifestyle

TARGET MARKET

The product will cater to both physiological needs that is, hydrating and nutritional value and social needs that is, perception of a social, fun drink with a sense of belonging within peer consumer groups. 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 .

POSITIONING
The only ready to drink bottled T- BuzZzTM available. Funky & eye-catching bottle, functional packaging, premiumpriced, cool, new and unusual. Unique drinking experience, aspects of play, variety of flavors, sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks.

Product T-BuzZz will be a bottled beverage and will be positioned as the only ready-to-drink Tea product available in the market. The beverage will have a green tea base with enhanced flavors. It will bring an entirely unique drinking experience to its consumers. It will present itself as a funky and unusual alternative to traditional tea in an attractive and convenient packaging. The flavors which we will introduce are Mango Green Tea Lemon Black Tea Cinnamon Honey Tea Peach White Tea

PRODUCT
Develop other flavours that would attract the local market. Since milk based bubble tea sell better in China, we will add in this product line. Also, we will avoid using too many artificial colors as they are not appreciated . Moreover, people in China are becoming more and more health concerned, especially the amount of sugar and additives added in the drinks. We will make some changes in the ingredients used to appeal the local market, i.e. less sugary drinks.

PRODUCT STRATEGY
The core T-BuzZz is a tea beverage in a pre-bottled, ready-todrink format. The actual product Branding: colorful, aspect of play, round shaped, prominent T-Buzz logo written in modern font, catchphrases such as Get Your Buzz . Trade name: T-BuzZz , a TATA product. Brand personality: energy, funky, cool, functional, original, funny, healthy, etc.

PRICING STRATEGY
Price strategy should consider :
Consumer demand The product lifecycle Potential substitutes

T-Buzz prices in Indian Market

Tetra Pack (150 ml) Rs. 10 PET Bottle (300 ml) Rs. 16

CONSIDERATION IN PRICING STRATEGY

A major constraint would be not to set a price that is too high because competitors will be attracted by potential profits and will follow by a lower price.

PRICING STRATEGY ADOPTED

Penetration Pricing
It will result in fast diffusion and adoption of the product. This may be able to achieve high market penetration rates quickly and take the competition by surprise, not giving them time to react. It will create goodwill among the early adopters segment and will create more trade through word of mouth. It will create cost control and cost reduction pressures from the start, leading to greater efficiency. It discourages the entry of competitors. Low prices will act as a barrier to entry. It may create high stock turnover throughout the distribution channel. This can create critically important enthusiasm and support in the channel.

PLACE
We are presently targeting the main Asian country that is China

PLACE

Business to Business Business to Consumers

Airlines Hotels Supermarkets Convenience stores Independent food stores Discount stores Multiple grocers Vending machines Direct sales

PROMOTION
OBJECTIVES: To initiate strong awareness about the launch of T- BuzZzTM Throughout generation between the age of 10-35 years old consumers. To win market shares over our top functional drinks.

MESSAGE: The promotional outputs will convey the clear message that T- BuzZzTM is a healthy drink for sporty and young people who simply enjoy taking care of their body and life. CONCEPTS: Get your buzZz : 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.

ADVERTISING
Output Television Radio Magazines Examples MTV, CFTV, CETV, CCTV Easy FM 88.7 MHz FM, 91.5 MHz FM For girls: Cosmo, Elle For boys: Sports Illustrated (or Kids edition) Asia Times, Next, China View

Internet

Outdoor

Banners on select websites (gaming, sports, etc.) Official promotional website: www.TBuzZz.com Billboards and prints in select areas including: Campuses, transportation (airlines, bus, train stations) Tourist areas in high seasonal periods Outskirts of key cities in geographical reach

Public Relations

Publicity

Stands or special displays and events in schools, malls, sports events, sponsorship activities Conferences, press releases (print and online), buzz marketing through TV coverage

PROMOTIONAL MIX
CONSUMER ORIENTED: Contests Samples: distributed in supermarkets, school/universities. Point-of-purchase Others: In subsequent years, engage in product placement in TV shows or movies.

TRADE ORIENTED: Allowances and discounts Cooperative advertising: to encourage retailers to buy our product and to maintain our high level of advertisement. OTHER CONSIDERATIONS: Scheduling of the advertising: Pulse scheduling that is, promotional presence year-round, but emphasized and intensified before and during summer. Integrated marketing communication.

Thank you!