10 step marketing

The 10 Step Marketing Plan

i-PLAY NYEL BERROYA Ateneo Graduate School of Business

February 28, 2012

2012 Edition

www.danielberroya.blogspot.com

2

10 STEP

Marketing Plan for

(Vita Coco “100% pure coconut

water)

NYEL BERROYA

FEBRUARY 2012


This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s 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.

Disclaimer


1. Vita Coco PTM are the active individuals and on-the-go Professionals.

2. Who wants to stay Fit and Healthy.

3. Can choose new players Lipa Buco, Fruitas Buco and among others

4. Keeps the doctor away by boosting nutritional needs & sickness prevention.

5. The potential market size is $37.5 million. Vita Coco niche is $ 15 million

Steps 1 to 5

Fresh, Natural and Energy

Boosting “Thirst Quencher”


6. Vita Coco is stacked with potassium, and is as natural as natural gets (some say it’s like putting a straw in a coconut). Vita Coco is about hydration and healthy living.

7. Price is mid priced, 10%-20% below/above competitors.

Steps 6 to 10

Vita Coco is about Hydration


6. Will Use TV, events & experiences

7. Will be distributed nationwide

8. Uses niche market as generic approach to win.

Steps 6 to 10

Vita Coco is about Hydration


“I love Vita Coco! It’s real coconut water from handpicked coconut. It’s delicious and so good for you.” - RIHANNA

1. Vita Coco PTM are the “Active

individuals” and “On-The-Go”

professionals.

Demographics: Active Individuals (aged: 15-24) and young professionals (aged: 25-34), male and female, social class ABC, single and married.

Lifestyle: “On-The-Go” professionals and trendy/energetic/active individuals.


1. Vita Coco PTM are the “Active

individuals” and “On-The-Go”

professionals.

Behavior: Daily, at least 3x a day, min. of 250ml to 500ml, thirst quenching, energy boosting and with several health benefits.

Relieves headache

Eliminate swelling hands and feet

Boost poor circulation and other more.


Individuals needs to have fun,

hip and healthy lifestyle

9

Self-Actualization Needs

(Self-Development

& Realization)

Esteem Needs (Recognition,

Status)

Social Needs (sense of belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

I enjoy fun and healthy life.

I am hip and belong to healthy peeps


I drink “water of life”

2. Individuals needs, wants

& demands

Individuals needs to be hip with their peers, active-fun lifestyle and healthy life.

Individuals select Vita Coco over other liquid

beverages because of proven health benefits, fresh coconut taste, global credibility, price, ready-to-drink, affordability and endorsed by pop celebrity idols. FDA approved.


Vita Coco celebrities rihanna, madonna, lindsay lohan.

2. Individuals needs, wants

& demands

Individuals demands thirst quenching, fresh and natural coconut taste. Vita Coco water is so nutritious and beneficial that it is said to have everything that is good for you. It is in hip ready-to-drink packaging could last for 12 months refrigerated.

100% NATURAL NO FAT. NO CHOLESTEROL FIVE ESSENTIAL ELECTROLYTES.


3a. Coconut water is the

newest and hottest drink with

many indirect competitors.

Direct: (new players)

Indirect: (new players)


LIPA FRUITAS

3a. Coconut water is the

newest and hottest drink with

many indirect competitors.

Variables: social status, price, packaging, branding, availability, health benefits, Philippine Product – export quality, marketing campaign and promotion.


Madonna campaigns…


Buco water is nutritional for all

ages. Vita Coco dominates for

active individuals due to

promotion.

Price/ Age Matrix

0-13 yrs 13-24 yrs 25-49 yrs 50yrs up

High price

Low Price

Lipa

fruitas

Vita

Price vs. Age Matrix

Lipa

fruitas

Vita

Lipa

fruitas

Vita

Lipa

fruitas

Vita

Example of a benefit positioning

vs. brand map for toothpaste

Benefit Positioning vs. Brand Matrix

as of 2011

Harder to stand out amidst the competitive clutter. www.danielberroya.blogspot.com

4. Vita Coco can be potential

market leader

Vita Coco offers:

1. Attractive yet portable packaging

2. Long shelf-life up to 12 months

3. Endorsed by globally and renown personalities

4. Nutritional benefits

5. Substitute as an energy drink.

6. Fresh, Natural, and “Young-coconut” taste.


4. Vita Coco can be potential

market leader

Vita Coco will come in as a new player and not as a local.

Price is mid priced, 10%-20% below/above local competitors.


USA To PHILiPPINES

4. Brand Positioning

“Hydrate Naturally”

Vita Coco is stacked with potassium, and is as natural as natural gets (some say it’s like putting a straw in a coconut). Vita Coco is about hydration. It’s okay if you’re not a marathon runner, a football player or a Tour de France winner. Life is hectic enough, and you should be hydrated while you live it. Go ahead, get hydrated and remember that life is a sport.

Source: http://vitacoco.com/our-products/


5a. Coconut water estimated

market size based on inquirer and

Philippine Coconut Authority.


There is an increasing number of coconut local consumption and export demand for the past years. Annual growth rate is 40%.

5a. Coconut water estimated

market size based on inquirer and

Philippine Coconut Authority.


“Vita Coco will invest 15 million USD in the Philippines for the next 4 years. The market for coco water is increasing by 40% annually.”

5b. Fruit Beverage is 17.2%

sales value share in 2005.


Total Liquid Beverage Industry

Source: Pepsi IPO Prospectus

5b-c. Based Vita Coco data,

there is annual increase of

40%, investment of $15million

1. Vita Coco investment in the Philippines because of opportunity of $15 million.

2. Vita Coco and statistics shows 40% increase annually for buco.

3. Then total coconut potential market size is $15 million/40% = $37.5 million.


Source: Pepsi IPO Prospectus

5c. Consumer data indicates

size of $ 2.5 million (potential)

1. $1 million out of $15 million potentially generated locally.

2. $ 1M / 40% = $2.5 million.


5. Global Potential market

size produced locally in

Dollars.

1. Competitor data= potential of $2.5 million covers local market only.

2. Company data = 37.5 million based on potential market globally produced locally.

3. Customer Usage data = 37.5 million based on potential market globally produced locally.


6a. Vita Coco superior display

and potential local leader.


US display in the supermarket which offers other new buco mixed flavors.

Display in stalls Limited supply

Lipa is distributed limitedly to few food chains while fruitas are in stalls in the malls (both not found in supermarket)

6a. Show how product looks

vs. competition (indirect)


Coffee and children juice drinks

Energy drink and artificial juice drink.

Mineral water

6b. What makes Vita Coco

different as a product?

Only Vita Coco with shelf-life up to 12months.

Only Vita Coco in tetra pack in different sizes and new buco mixed flavors.

Only Vita Coco taste like a fresh, natural and young-coconut taste.

An energy drink with health benefits


7. Vita Coco not locally

available yet. – pricing

Lipa comes with PET bottled and in-canned with price range of 35-45 pesos small servings (200-350ml) While Fruitas served in cups with prices of 30-40 big servings (250-700ml).

Vita Coco is mid priced, 10%-20% below/above local competitors.


8a. Vita Coco will use TV, events

and experiences, and word of

mouth

8a. Vita Coco will come up hip

commercials for active

individuals and “on-the-go

professionals.

Vita Coco Hip Commercial


http://www.youtube.com/watch?v=2zV1QBUBQQc

8a. Vita Coco commercial with

fresh, natural and “real”

experience.

Vita Coco “real” customer experience


http://www.youtube.com/watch?v=VoV3ByVv12M

8a. Vita Coco endorsed by POP

ICON. (commercial)

Vita Coco RIHANNA


http://www.youtube.com/watch?v=grqai8iDEik

8a. Vita Coco as a Miracle Drink

(commercial)

Vita Coco is a Miracle Drink


http://www.youtube.com/watch?v=SFlWxqNpf-8

8a. Vita Coco as an Energy Drink and

helps lose weight. (commercial)

Vita Coco “hydration”


http://www.youtube.com/watch?v=xmaiITTBon4&feature=related

8b. Lipa Buco found in

limited food chains only.

Lipa has different packaging with short shelf-life. It’s distribution is selected food chains only. Weak Promo mix.

8b. Fruitas Buco has some

mall “stall” outlets.

Served in per cupped with very short shelf-life yet it is affordable.

“Stall” outlets in some mall in metro manila and provincial areas.


9. Vita Coco will be distributed

nationwide partnering with giant

distribution networks.

Where is your product available?

Supermarkets, sari-sari stores, convenience outlets, drugstores

Nationwide

Pick up by customers

Cash and Card transactions.


10. Vita Coco is a potential

market leader.

Coconut water market has very big potential market having local SME sized players.

Vita Coco is to dominate target market ages 15-24 = active individuals ; ages 25-35 = young professionals.

It has an excellent marketing programs and strong advertising.

Investments came from US and now to Philippines with $15 million expansion budget.

Channel through stable and expanding distributors.


The 10 Step Marketing Plan

i-PLAY NYEL BERROYA Ateneo Graduate School of Business

February 28, 2012

2012 Edition
