Marketing Management Unit Code: MBA 403 Assignment 02 Name: Mohammed Fouzan Wahab UWIC/MBA/MT/12/21 UWIC ID No.

20023793

Marketing Plan: Minute Maid (Sri Lanka)

Assignment 2
Select a Company with a significant marketing problem or opportunity and present a marketing plan for this company that will address the problem or takes advantage of the opportunity (refer below for some examples). The

problem or opportunity that you select should have significant performance implications for the company. You are supposed to clearly show using Key

Performance Indicators of the Company as to how the problem has led to impacting performance. You are expected to critically analyze the reasons behind marketing problem and quantify the impact on the company in terms of top-line, bottom-line, and market share. In case of an opportunity, you would need to quantify the

opportunity and assess the strategic fit considering the resources / know-how (core competencies) of the organization. You are required to visit the selected company and liaise with the companys marketing team. You are also required to present facts and figures that have led to the marketing problem or created the opportunity. Your marketing plan should then clearly spell out how you intend to address the key issues identified in order the take advantage of the opportunity or to address the problem(s). Some examples of

marketing problems would include: lack of market segmentation, targeting and positioning, lack of competitor and or customer understanding that has led to missed marketing opportunity, or lack of a structured NPD process that has resulted in a delay in introducing new products to market. You could use any of the four Ps (product, price, place, promotion, people, process, physical evidence and ambience) but students are advised to select a problem or opportunity that is strategic in nature with implications for driving future growth or threatening the organizations survival. In addition, a lack of a strategic marketing planning process may have also contributed to problems.

Statement of Originality of Submitted Work I; Mohammed Fouzan Wahab Student Id No: UWIC/MBA/MT/12/21 Module Name: Marketing Management I hereby confirm that the work presented here in this report and in all other associated material; is wholly my own work. And I agree to be assessed for plagiarism. Signature: ....

Date:

Acknowledgement
First of all I would like to thank Allah S.W.T Who gave me the courage, health and energy to complete this assignment. I would also like to express my deepest gratitude to the Lecturers Mr. Chris Kariyawasam, Mr. Ravi Liyanage & Mr. Ravi Jayawardena for the invaluable information provided. Finally, an honourable mention goes to my family and friends for their continuous support.

Executive Summary
This report discusses the marketing plan for Minute Maid over the next three years (2013 - 2015). The marketing plan takes into account the opportunities of the growing fruit juice industry to grow the brand. Prior to discussing the marketing plan there are many areas which need to be discussed. Hence, I have first carried out a situational analysis. This includes a brand audit, market summary and the external environment. Following this, I have discussed on the fruit juice industry itself and its performance by using Porters five forces. Having looked at that, a SWOT analysis was done to understand the business, its resources and environment. Once I have done this, I have reviewed the Segmentation, Targeting & Positioning of the brand together with its competitive advantage by using Porters Generic Strategy and Ansoff Matrix. Having reviewed all these aspects, I discuss on the marketing plan for the next three years and ending the report with a conclusion.

Table of Contents Section Title

Acknowledgement Executive Summary 1 2 3 4 5 6 7 8 Introduction Situational Analysis Industry Outlook SWOT Analysis Market Segmentation, Targeting & Positioning Competitive Advantage - Evaluation Using Strategies Marketing Plan for the Next 3 Years Conclusion References Appendix - Images

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1. Introduction
The Minute Maid Company was purchased by The Coca-Cola Company in 1960. It was in 1945 that after three years of experimentation the National Research Corporation (NRC) of Boston, Massachusetts (which setup the Florida Foods Corporation) developed a flavourful orange juice powder from real, delicious oranges in response to the U.S. Army issuing an open order for 500,000 pounds of powdered orange juice. It was made using the same "highvacuum process" used to dehydrate and prolong the life of such things as penicillin. With the end of the war in sight, the U.S. Army contract was cancelled but the company moved ahead, beginning construction on a full-scale processing plant. Converting the powdered orange juice into a commercial product proved to be trickier than planned. The solution was an intermediate step frozen orange juice concentrate which had a rich, fresh-squeezed taste. Now, the product needed a name. From the city famous for its Minutemen militia, a Boston advertising agency came up with the name "Minute Maid" reflecting the convenience and ease of preparation. Just a few years later, the Florida Foods Corporations was renamed The Minute Maid Company to reflect the success of the product. In 2007, the Coca-Cola Company launched its Minute Maid brand in Sri Lanka as part of their strategy to provide beverages which met the different needs of consumers, for all occasions. It also fitted well with the companys strategic direction. Since the Sri Lankan fruit juice market was a new and developing one, CocaCola wanted to make a mark in this segment. This market also included corner shop vendors who had some dominance. However, the consumers were becoming more health conscious and improving their lifestyles - As a result they are moving towards quality fruit juices.

The change in lifestyle of the urban consumers, increased urbanization, population growth together with the modernization of this industry signified a huge potential for the fruit juice segment. During this period there were competitors such as SMAK (market leader), MD Canneries, Kist and Edinborough. Coca-Cola requires a significant amount of market share by introducing more natural flavours into the market. Initially, Minute Maid was launched in 20,000 outlets in the main towns of Colombo, Negombo, Chilaw, Ratnapura, Gampaha and across the western coastal areas up to Galle. Coca-Cola also targets on achieving higher margins and maintaining a close relationship with the farmers, distributors and retailers in order to achieve their objectives. On top of this, since they already possess the knowledge on the culture and lifestyles, they capitalized on it. Minute Maid was advertised with the slogan "refreshingly orange, surprisingly pulpy", and sold in 200ml returnable glass bottles. This report discusses on how Minute Maid should capitalize on the significantly growing fruit juice market.

2. Situational Analysis
Brand Market External Environment Brand Audit Vision & Mission: Minute Maid vision & mission is inline with the Coca-Cola Company: Vision: People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization. Mission:

To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference.

Brand Values Quality Healthy refreshment Simple Mixture of modern and traditional values

Brand Image - Natural goodness - Fresh - Youthful Brand Personality - A modern traditional brand - Brand for youth which has wholesome values Brand Purpose - To create healthy younger generation

Market Summary Target Market Fruit juice is considered by consumers to be a healthy drink and a refreshing alternative to carbonated soft drinks. As mentioned above since individuals are getting health conscious, they do not mind spending on products which would improve their health and lifestyle. It should be noted that more youth are becoming concerned on their health when compared to youth 20 years ago. So the target market for drink which is healthy and refreshing shall be youth. Market Demographics Geographical Variables Metropolitan cities, small cities, towns Density of area - Urban and rural Climate - Tropical

Market Needs & Trends About five years ago, if you go into a supermarket you cannot find many varieties or brands of juices. Now, this has changed with many juice varieties with attractive packaging and various juice brands being stacked on the shelves. This shows somewhat of how the fruit juice market has changed over time with many new suppliers entering the market and increasing the choice for the consumers.

Consumers when selecting fruit juices look for the following: Taste Raw juice content Brand power Safety Health benefits Price Packaging

Over 50% of people give priority to taste and only when there is no difference in taste between the products, they will look at the brand. Another group of people are the fashionable young ones who focus more on packaging and products. This attributes to the fact that Minute Maid is capturing the youth although its priced relatively higher than other soft drinks. As specified earlier, the health benefits in consuming fruit juices has been highlighted to the public. This aspect is being used my companies as a powerful marketing tool. It should also be noted that one of the key reasons for individuals to be interested in fruit juices is because of the addition of minerals and vitamins which provides good health and energy this is called functional beverages. This is causing more Sri Lankans to use these beverages for their daily use in order to improve their health. As a result, the fruit juice market is growing rapidly and still has great potential to grow further. Market Growth Sri Lankas economy has grown significantly, averaging over 8% in 2011. GDP per capita increased to US$ 2864 (estimate from IMF- World Economic Outlook Database) in 2011, compared to US$ 1,244 in 2005. The income patterns of consumers show that more people can now afford to purchase and consume fruit juices. However, the increasing inflation rates are reducing the disposable incomes of the consumer and hence hindering the market growth. It should be noted that increasing heath consciousness and increasing disposable incomes are the key growth drivers in the fruit juice market.

Prior to introducing Minute Maid, the growth of the fruit juice market was 12% per annum, but now it has increased up to approx. 20% per annum. According to an analysis, the growth of national output of fruit juices will overtake the growths of carbonic acid drinks and bottled water. Importantly, fruit juices with raw juice content of over 50% will become the focus of market competition. Analysis of the External Environment (PEST Factors) Social & Cultural Factors Strong public awareness programs regarding health issues caused by consuming carbonated drinks has impacted the beverage industry. One cause for diabetes and obesity is considered to be soft drinks. Therefore, individuals are moving to fruit juices as an alternative to carbonated soft drinks. Economic Factors As per the World Economic Forum, its latest Global Competitiveness Report ranks Sri Lanka at 52nd place in 2011 2012 compared to 62nd and 79th position over the last couple of years. The potential to spend has increased as a result of the increase in the GDP. The middle class is growing. Political Factors Although, the economy is growing, the trust in the politicians held by the public is decreasing hence the government is unstable. Difficult to get approvals from the government due to the bureaucratic structure. Technological Factors Improvements in technology. Increasing R & D programs sponsored by the government.

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3. Industry Outlook
For the analysis of the industry, Porters 5 Forces shall be used. Threat of new entrants: There arent many significant barriers to entry in the fruit juice industry. Most beverage manufacturers can easily add fruit juices into their product base since manufacturing fruit juice from concentrate does not require specific equipment or manufacturing knowledge. For manufacturers who want to enter the market with differentiated fruit juice products, the barriers to entry are stronger.

Threat of substitutes: Threat of substitute products is quite high in the fruit juice industry since fruit juice needs to compete with soft drinks, sports drinks, iced tea, etc. The fact that fruit juices offer distinct nutritional benefits, creates a competitive advantage. Consumers can be educated about the nutritional claims obtained through research to improve the consumers understanding of the health benefits brought about by consuming fruit juices.

Bargaining power of suppliers: The main suppliers are the fruit suppliers (farmers). Since plenty of farmers are available to supply fruits, they do not have high bargaining power. Also, the Coca-Cola company size & strength ensures that the supplier does not have much power to bargain.

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Bargaining power of buyers: This is a major factor which affects competition in the industry. It is known that most juice is sold through retail food stores. The retail chains exert high bargaining power on the suppliers. This is because these retail chains are well established. Due to the large choice of brands available and the low switching cost, the bargaining power of the customer is high.

Competitive rivalry: The industry is growing with an emphasis on price competition among nonvalue added products and few main players. Growth and price competition intensify rivalry within the industry. Also, the lower switching cost associated with the nature of the product intensifies the competition. However, the beverage sector is attractive to companies and offers the potential for significant growth.

4. SWOT Analysis

Strengths
Brand Strength Strong Distribution Channels Corporate Identity Innovation Knowledge on culture & Tastes

Weaknesses
Reliant upon Line extensions Brand Dilution

Opportunities
New Product Introduction Growing Market Catering to Health Conscious People Attractive Brand to Global Partners

Threats
Competition Health Drinks Potential Health Issues Political Instability

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5. Market Segmentation, Targeting & Positioning

Segmentation: Coca-Cola is a company known for its sparkling beverages, they are also market leaders in many countries when it comes to other categories in the non-alcoholic ready-to-drink beverages, including juices and water. The aim of launching Minute Maid to the portfolio was to align with the aim of the main brand Coca-Cola - providing a beverage that suits the various needs of the consumers such that they have a beverage for all occasions, throughout the day. The introduction of fruit juice based beverages Minute Maid fits well with the companys strategic direction. After clearly establishing a consumer demand for an orange based juice drink, Minute Maid Orange was launched with a 200ml returnable bottle supported with a 360 degree communication campaign. Subsequently two other flavours have been launched Mango & Apple to cater to different segments of the market.

Targeting: For any juice segment, the target market is quite broad. However, a core target audience could be identified by looking at the communication platform of the brand. This would be youth, both male & female who want refreshment & nourishment as a part of their daily routine.

Positioning: The global positioning of the brand is such that it conveys the healthy refreshment & great product intrinsic values of the Minute maid. The brand ability to stay within the global platform and land in Sri Lanka with a locally relevant twist is very commendable.

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The platform used for the communication and positioning strategy was feel the real pulp (renu). This was a great USP since there was no other product in the market which was offering a similar benefit. Furthermore, in order to be relevant to the core TG of youth, the brand tied up with youth icons Malith Perera and Pradeep Rangana. The television ads also clearly communicate the product to the consumers The ad for the orange shows the feel of real orange in the mouth whereas the mango focuses on bringing back the refreshing childhood memories of having actual mangoes when living in the rural areas. The newest variant is the apple juice by Minute Maid. Its USP is well put out to the consumer by the tagline - Jeewithayata Rasayak - Taste of Life.

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6. Competitive Advantage Evaluation Using Strategies

According to Michael Porters Generic Strategy, Coca Cola Company is using the differentiation strategy to market the Minute Maid brand. This is being done by providing a unique product which adds more value to the customers in order to create an edge over the competitors, which have been illustrated above.

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7. Marketing Plan for the Next 3 years (2013 2015)

The marketing plan for Minute Maid for the next 3 years will look at each P of the marketing mix elements. MARKETING OBJECTIVES To increase the market share to 50% by Dec 2015 (current market share is 40%). To increase sales by 15% by Dec 2015 using aggressive advertising and promotion strategies and brand building. To maintain the same profit margins during the 3 years from 2013 to 2015 as focus would be more on advertising, promotion and brand building.

Marketing Mix Strategies Product Since its launch in 2007 with the Orange pulp mix, Minute Maid has launched 2 more flavours being Mango in 2009 and Apple flavour in 2011. The strategy behind in launching the different mixes at regular intervals was to gain an incremental market share. This helps in countries like Sri Lanka, because we have very polarized taste buds. Introducing the three different variants has helped Minute Maid gain market share year on year to 40% where it now has the highest share in the fruit juice market. Taking the brand forward for the next three years, it is important that we look at the segments that we will targeting, as of now we have the standard 200ml glass bottle with each variant with one standard ingredient list.

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As consumer need and expectations keep changing in the market their expectations in the fruit juice segment will also evolve and will expect more, looking at these trends the following product range is expected to increase consumption and market share: Year 2013 Flavour Pineapple Fruit punch Grape *These flavours are already available in other countries 2014 2015 Special editions seasonal fruits Sugar free range (already All target groups available youth and adults concerned of sugar related diseases. Males and females involved in Fruit based energy drink sport between ages of 15 to 35. Target Audience All target audiences

flavours)

2013 will be a year where Minute Maid will look to cover the main flavours that consumers expect to have in a fruit juice market. This would ensure that we have a good portfolio. 2014 would be a year of innovations and new product development in the market where we would look to launch special editions mixes where we will launch fruits of the season to keep the excitement in the category and ensure that the incremental volumes would come in. 2015 Minute Maid will look at a different target market, by introducing a sugar free juice to appeal to the youth and adults who are concerned of sugar related diseases. In addition to this the brand would target the youth involved in sport with a fruit based healthy energy drink.

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Price Minute Maids pricing strategy is to serve their products in the market at an optimum price so as to create a huge demand from the customers and to maintain its position in the market and to compete with other competitors. Currently Minute Maid is served at Rs.40/- on the 200 ml bottle that is to keep in line with the: 1. Market rates to be competitive and be price sensitive towards the consumer. 2. Maintain Glass bottle It is an extremely expensive factor in the mix as glass bottle maintenance is very high in cost, and replenishing logistics are equally complicated. Looking at the next three years Minute Maid would look at taking the right price points by: 1. Introduction of new SKU which will help play price ladder game. 2. Raw material & supply chain costs to be managed through local sourcing hence will help pay reduced taxes, and payments would be in local currency. 3. As the market leader would be able to demand a premium on the fruits of the season range and the Sugar free fruit drinks as consumers would see the value for what they are paying for.

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Place Minute Maid goes to 65000 outlets which is 67% of what Coca Cola goes in to.

1st objective in the next three year plan for Minute Maid is to match the Coca Cola distribution as this would help us be available and visible in the market place. Ensure the same outlet is covered on two different days where each brand would get its due focuses and a fare share of spendable budget of the dealer. Clear segmentation of sales channels. Currently the same sales team covers General Trade, Eating Houses, Hotels. Ensure dealer pull strategies are more appropriate and more attractive to suit their best needs. Launch of reward schemes for retail dealers based on volume purchased and provide incentives.

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Promotion Since its launch in 2007 Minute Maid has done only main stream communication being very heavy on ATL and BTL done by aggressive sampling to consumers to try the brand, then again this has been done only for the Orange mix and ever since then relied on ATL to do the job. Moving forward while maintaining the right presence on TV and Radio more interactive engagement shall be looked at with the new product ranges coming in to the market. Sampling This still remains to be one of the most effective ways of engaging with the TG where we get them to try the brand. Consumer Activations The brand predominantly targets the youth, so be where they are and engage with them one to one. (Sponsor parties, Be at school events, Have our own road shows, Trade consumer activations at in store) Strategic CSR Do well by doing good to the community, this is not a promotion per say but would have a leg into it. (North & East is an emerging market, help them rebuild schools, Up lift vocational training centres) Packaging The 200ml glass bottle has done wonders so far and managed the race up-todate, but as raw material prices keep going up and retailers and consumers look for convenience, Minute Maid with its new range will go in to: PET packs to serve at different price points plus ease of manufacture and storage for shop keepers. Cans This will also help us gain additional space in Morden trade chains as a separate SKU. Mega Bottle For the larger family since this will not be an impulse but it would be an item on the shopping list.

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8. Conclusion
Looking at the overall Fruit juice market situation, any fruit juice manufacturer will have immense potential to grow in this market noting that market penetration is not very difficult. Minute Maid however, is currently in a very good position in the market place where it has got to number one in just 5 years of launch, but they must remember they are not only competing in the fruit juice segment, they are competing with other beverages as well. The fruit juice segment has been a segment where non of the players have kept consumers excited, to gain that incremental business, incremental volume and most importantly the incremental Market share. Minute Maid will focus in creating that enthusiasm in the market place where it will excite its consumers by offering them with its innovations & new product developments.

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References
Kotler, P. and Armstrong, G. and Saunders, J. and Wong, V. (2005), Principles of Marketing 4th edition, England: Pearson Education Limited Coca-Cola homepage: <http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html> [10 Mar 2012] Minute maid homepage: <http://www.minutemaid.ca/en/inside_story/history.htm> [10 Mar 2012] International Monetary Fund, Sri Lanka GDP data available at: <http://www.imf.org/external/data.htm> [12 Mar 2012] Shamindra Kulamannage (2008), Sri Lankas emerging middle class spend more on convenience, Lanka Business Online, 16 Oct [Online], Available: http://www.lankabusinessonline.com/fullstory.php?nid=1059813770 Bill Bruce (2009), Coca-Cola Sri Lanka Launches Minute Maid Mango, FoodBev.com, 5 Oct [Online], Available: http://www.foodbev.com/news/coca-cola-sri-lanka-launches-minutemaid-mango (2011), Coca-Cola launches Minute Maid Apple flavor, Daily FT, Oct 14 [Online], Available: http://www.ft.lk/2011/10/14/coca-cola-launches-%E2%80%98minute-maidapple%E2%80%99-flavour/ Udeshi Amarasinghe (2009), Minute Maid A Winning Formula, Business Today, [Online], Available: http://www.businesstoday.lk/article.php?article=1846 Gayan Ratnayake (2007), Sri Lanka sees beverage giant Coca-Cola in juice venture, Lanka Business Online, 29 Nov [Online] Available: http://www.lankabusinessonline.com/fullstory.php?nid=2121803867 (2011), New Marketing Plan, Feb 23 [Online], Available: http://www.articlesbase.com/social-marketing-articles/new-marketing-plan-4290857.html Anushka Wijensinha (2011), Sri Lanka Continues Its Rise Up Global Competitiveness Index: Jumps 10 Ranks in 2011-12 World Economic Forum Report, Talking Economics, 07 Sep [Online], Available: http://ipslk.blogspot.com/2011/09/sri-lanka-continues-its-rise-upglobal.html Superbrands The Book: <http://www.cyberstudio.biz/superbrands/brands/elephant_soft.html> [09 Mar 2012]

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Appendix Images

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