1 I. Executive Summary
Jan 03, 2016
2
In a market saturated with cola brands, there came Virgin Cola. It’s the
brainchild of rebel billionaire Richard Branson, who leads the empire of Virgin-
branded products. Upon it’s launching in 1994, his intensions were clear: he
wanted the brand to be as well-known around the world as market leader Coca-
Cola.
Virgin Cola launched amid huge publicity and expectations to match.
Branson teamed up with Cott Corporation, a Canadian private-label soda maker,
in a 50/50 equity joint venture to produce cola under the Virgin banner. Following
a modest start in Britain, in 1998 Branson took his cola brand to the US where he
sought to create a major rival to Coca-Cola and Pepsi, who he called the ‘cola
duopolists’.
Branson launched the product in the US lavishly and advertise it through
New York Times. Virgin Cola also enjoyed high-profile celebrity endorsements in
its early days. When the 500ml bottles launched, they were marketed as “The
Pammy”, as their curves were designed to resemble Pamela Anderson who was
at the height of her popularity in the UK and USA at the time. Immediately, there
were raised eyebrows among those who understood the market. John Sicher,
publisher of the US trade publication Beverage Digest, was instantly dismissive.
Even before the high-profile US launch, there were serious problems: Virgin
Cola’s relationship with Cott Corporation broke down due to a dispute over
strategy, and Branson bought Cott’s stake in the company shortly before the US
launch. It quickly became clear that Virgin Cola was struggling to compete with
its more established rivals.
3
As Branson himself acknowledged, the Virgin brand has usually
succeeded in other areas by exploiting competitors’ weaknesses. But as the
Coca-Cola sensed the potential of Branson’s company, they responded to the
launch of Virgin by immediately doubling its advertising and promotion budget.
A major reason Virgin Cola found it difficult to compete in the UK was problems
with distribution. At the first place, in Britain, Virgin Cola was gradually dropped
by supermarkets and smaller chains, leaving its presence largely confined to
Asda stores, who only stocked it in large, two litre bottles, costing between 20-
30% less than their rivals. But Asda, its distributor continued to stock Virgin Cola
until August 2009 because of its poor sale. Asda said that they have to stop
selling unpopular products to make a new room for better ones that are really in
demand. Therefore, Virgin Cola has been discontinued due to poor sales across
Asda. The following month, its manufacturer, Silver Spring, entered
administration, which caused production and distribution to cease in UK.
Due to unsuccessful battling of Virgin Cola to beverage market, Branson’s team
opt to pull out Virgin Cola’s in UK and US earlier in 2009 leaving its existence
only to the Philippines and Nigeria, where it is produced and sold under profitable
licence. It was until 2012 when the production was ceased at all in the Philippines
resulting negative profit.
The marketing plan has been created for an effective formal full-entry
strategy for Virgin Cola in the Philippine soft drink market. It aims to revive the
product especially in the Philippine market and make it as the most dominant
beverage internationally.
4
The firm has lacked sufficient efforts in promoting brand awareness which
led to its subsequent failure, and finally pulled out off the market. Effective brand
reasoning, influential advertising and persuasive promotions will actually be of
big help in competing with the well-known local cola brands. With these at hand,
Virgin Cola will be expected to increase its market share, win new customers,
and customers, and maintain brand loyalty to Virgin Cola over the next 5 years.
6
HISTORY
Virgin Cola was first launched in Britain in 1994. Business tycoon Lucio
Tan is set to give US soft drinks Coca Cola and Pepsi Cola a competition with his
tie-up with British soft drinks “Virgin Cola”. Virgin Cola would be positioned as a
lower-priced alternative to the more established and pricier Coke and Pepsi.
InterBev, a Tan subsidiary, is investing about P1 billion to secure the license to
manufacture Virgin Cola in the Philippines.
According to Hubert Tan, InterBev vice president for sales and marketing,
the P1-billion investment would also be used for additional facilities for the Virgin
Cola soft drinks line to be manufactured at Asia Brewery’s existing 100-hectare
plant in Cabuyao, Laguna. Tan disclosed that an agreement had actually been
reached last April 2004 with the Virgin Group owned by British billionaire Richard
Branson.
The lower-priced soft drinks category, according to Tan, is the fastest
growing segment in the soft drinks market. Tan admitted that the Tan Group has
always wanted to enter the soft drinks business, but there was no opportunity in
terms of branding.
Before Virgin Cola’s launch, Coke reportedly had a commanding share of
66 percent, followed by Pop Cola with a 21 percent share, while Pepsi has only
12 percent share and one percent by RC Cola. InterBev, Tan revealed, is aiming
for a 10 percent market share from the P5.5 billion Philippine soft drinks market.
7
InterBev, Tan further disclosed, plans to introduce Virgin Cola at a
competitive price of P5.5 per bottle, 50 centavos lower than Pop Cola.
Virgin Cola would be available in three flavors – regular, diet and lemon
lime. It would be initially available in Metro Manila and Southern Luzon where
InterBev has actually started testing the new softdrink. The Tan Group already
manufactures several beverages including beer, fruit juices, spirits and water
through Asia Brewery.
At present, due to lack of aggressive follow through advertisements, the
product line’s market presence was diminishing, and soon after, pulled out of the
Philippine Market.
A. MARKET DESCRIPTION
Market Size
According to the CIA World Factbook, the Philippine
population is projected at 101.83 million for 2012 with an average
growth rate of 1.873%. Over 60% of the population is between 15
to 64 years old, which means that the Philippine beverage market is
at mass.
Beverage Market
According to the National Statistical Coordination Board,
42.60% of the total family expenditure are used for food and non-
alcoholic beverages (includes consumption at home, school and
work).
8
Market Demographics
Population: 101,833,938
Gender:
Male – 50,980,051
Female – 50,853,887
Age Structure
0-14 years: 34.6% (male 17,999,279/female 17,285,040)
15-64 61.1% (male 31,103,967/female 31,097,203)
65 years and over: 4.3% (male 1,876,805/female
2,471,644)
42.6
12.8814.56
3.66
21.97
Family Expenditures
FoodElectricity, Water, and FuelTransportation and Commu-nicationEducationOther Needs
9
Median age
Total: 22.9 years
Male: 22.4 years
Female: 23.4 years
Population growth rate–1.873%
Birth rate - 24.98 births/1,000 population
Death rate - 24.98 births/1,000 population
Market Trends or Market Needs
1. There is a rise of health consciousness as well as the fitness
trend.
2. The product’s after taste, strategic packaging, flavor and
ingredients are key sales considerations.
3. Filipino soft drinks companies go international by pursuing
expansion.
4. Use of sports as marketing tool
Factors That Affect Marketing Environment
In the decision making process, a business must take into
consideration the factors that may influence the consumers’ choice.
Several factors influence consumer choice. These are
psychological, cultural, social, and personal.
10
PSYCHOLOGICAL
A person’s buying choices are further
influenced by four major
psychological factors: motivation,
perception, learning, and beliefs and
attitudes.
Motivation - The level of motivation
also affects the buying behavior of
customers. Every person has different needs such as physiological needs,
biological needs, social needs etc. The nature of the needs is that, some of them
are most pressing while others are least pressing. Therefore a need becomes a
motive when it is more pressing to direct the person to seek satisfaction.
Perception - Selecting, organizing and interpreting information in a way to
produce a meaningful experience of the world is called perception. There are
three different perceptual processes which are selective attention, selective
distortion and selective retention. In case of selective attention, marketers try to
attract the customer attention. Whereas, in case of selective distortion,
customers try to interpret the information in a way that will support what the
customers already believe. Similarly, in case of selective retention, marketers try
to retain information that supports their beliefs.
Beliefs and Attitudes - Customer possesses specific belief and attitude towards
various products. Since such beliefs and attitudes make up brand image and
11
affect consumer buying behavior therefore marketers are interested in them.
Marketers can change the beliefs and attitudes of customers by launching
special campaigns in this regard.
CULTURAL
Cultural factors exert a broad and deep
influence on consumer behavior. Marketers
need to understand the role played by the
buyer’s culture, subculture, and social class.
Culture - Basically, culture is the part of every
society and is the important cause of person
wants and behavior. The influence of culture
on buying behavior varies from country to
country therefore marketers have to be very careful in analyzing the culture of
different groups, regions or even countries.
Subculture - Each culture contains different subcultures such as religions,
nationalities, geographic regions, racial groups etc. Marketers can use these
groups by segmenting the market into various small portions. For example
marketers can design products according to the needs of a particular geographic
group.
Social Class - Every society possesses some form of social class which is
important to the marketers because the buying behavior of people in a given
social class is similar. In this way marketing activities could be tailored according
12
to different social classes. Here we should note that social class is not only
determined by income but there are various other factors as well such as: wealth,
education, occupation etc.
SOCIAL
A consumer’s behavior also is influenced by
social factors, such as the consumer’s small
groups, family, and social roles and status.
Reference Groups - Reference groups have
potential in forming a person attitude or
behavior. The impact of reference groups
varies across products and brands. For example if the product is visible such as
dress, shoes, car etc then the influence of reference groups will be high.
Reference groups also include opinion leader (a person who influences other
because of his special skill, knowledge or other characteristics).
Family - Buyer behavior is strongly influenced by the member of a family.
Therefore marketers are trying to find the roles and influence of the husband,
wife and children. If the buying decision of a particular product is influenced by
wife then the marketers will try to target the women in their advertisement. Here
we should note that buying roles change with change in consumer lifestyles.
13
Roles and Status - Each person possesses different roles and status in the
society depending upon the groups, clubs, family, organization etc. to which he
belongs. For example a woman is working in an organization as finance
manager. Now she is playing two roles, one of finance manager and other of
mother. Therefore her buying decisions will be influenced by her role and status.
PERSONAL
A buyer’s decisions also are influenced by
personal characteristics such as the
buyer’s age and life-cycle stage,
occupation, economic situation, lifestyle,
and personality and self-concept.
Age - Age and life-cycle have potential
impact on the consumer buying behavior. It is obvious that the consumers
change the purchase of goods and services with the passage of time. Family life-
cycle consists of different stages such young singles, married couples, unmarried
couples etc which help marketers to develop appropriate products for each
stage.
Occupation - The occupation of a person has significant impact on his buying
behavior. For example a marketing manager of an organization will try to
purchase business suits, whereas a low level worker in the same organization
will purchase rugged work clothes.
14
Economic Situation - Consumer economic situation has great influence on his
buying behavior. If the income and savings of a customer is high then he will
purchase more expensive products. On the other hand, a person with low income
and savings will purchase inexpensive products.
Lifestyle - Lifestyle of customers is another import factor affecting the consumer
buying behavior. Lifestyle refers to the way a person lives in a society and is
expressed by the things in his/her surroundings. It is determined by customer
interests, opinions, activities etc and shapes his whole pattern of acting and
interacting in the world.
Personality - Personality changes from person to person, time to time and place
to place. Therefore it can greatly influence the buying behavior of customers.
Actually, Personality is not what one wears; rather it is the totality of behavior of a
man in different circumstances. It has different characteristics such as:
dominance, aggressiveness, self-confidence etc which can be useful to
determine the consumer behavior for particular product or service.
15
B. PRODUCT REVIEW
Virgin Cola
Type ColaManufacturer Virgin Drinks Silver Spring
Country of Origin
United Kingdom
Year Introduced
1994
Variants Diet Virgin Cola
Local Related
Products
Coca-ColaPepsi
Pop ColaRC Cola
Virgin Cola Flavors
Virgin Cola is a carbonated cola drink launched in 1994. It is
available in cans and bottles. It comes in different flavors.
16
Virgin Cola (Original)
List of Ingredients
Virgin Cola (Blue)
List of Ingredients
Carbonated water FlavoringsSugar Sodium Citrate
Citric acidAntioxidant = Ascorbic Acid
Preservative = Sodium Benzoate
Carbonated water CaffeineSugar Acesulfame-k
Phosphoric acid PhenylalanineSodium Benzoate Phenylketonurics
Aspartame Natural flavorings
17
Virgin Cola (Orange)
List of Ingredients
Carbonated water Citric AcidSugarStabilizersAcacia Gum FlavoringOrange Flavoring
C. REVIEW OF COMPETITION
Soft Drink Brands in the Philippines
1. Coca-Cola – leading soft drink in the market
2. Pepsi – Pepsi has evolved from being a cola drink to a brand
that stands firmly for the youth.
3. Sarsi – a Sarsaparilla rootbeer originally made by Cosmos
Bottling, now part of Coca-Cola.
4. Pop Cola - a low-cost cola flavored beverage from Cosmos.
5. Royal - the first CSD in the country, made in 1922 by San
Miguel Corporation, now a Coca-Cola brand.
6. RC cola - the cheapest soft drink in the market.
Market Shares
18
As of 2010, the leading brand of carbonated drinks is Coca-Cola
with 80%; followed by Pepsi Cola with 15%, RC Cola with 3% and
other brands with 2%.
Competitors’ assessment
Coca-Cola Pepsi RC Pop ColaStrengths
1.Extensive bottling system
2.Packaging3.Brand Strength
1.Brand Strength
2.Effective stride in new
markets3. Strong existing
distribution
1.Low price2.Concentrate
d Brand Identity
3.Focused on Mass Market
1.Low price
80%
15%3% 2%
Market Shares
Coca-ColaPepsi ColaRC ColaOthers
19
channels.
Weakness1.Health issues
1. Reliant upon line extensions.2. Reliant upon
particular carbonated
drinks.3. Brand dilution
entrance into non-core
categories.4. Saturation of carbonated soft drink segment.
1.Does not cater to upper class market2.Selective advertising
3.Not available in most fast food areas
1.Does not cater to
upper class market
2.selective advertising
3.not available in most fast
food areas4.Health
issue
Opportunities
1.Extensive target market
1.Further expansion of market share
2.Brand is attractive to
global partners
1.Expansion of target market
to international areas
1.More bottling
systems for further
expansion into the local
market
Threats1.Other
alternative beverages
1.Strong competition2.Potential
health issues
1.Strong competition
1.Strong competition
Product Quality
VIRGIN GROUP BRAND VALUES
1. Fun - Enjoyment and humor, not offensive and incompetent.
2. Value for Money – Simple, not cheap
3. Quality – Attention to detail, not expensive for sake of it.
4. Innovation – Challenging convention, not different for the sake
of being different.
20
5. Competitive Challenge – Responding to consumer needs, not
being relevant.
6. Brilliant Customer Service – Empowered, not unprofessional
people.
BRAND NAME
The brand name “Virgin” arose when Branson and a partner
start where starting their first business, a record shop. They
considered themselves virgin in business.
LOGO
The Virgin logo was
originally sketched on a paper
napkin by graphic designer Trevor
Key and remains largely
unchanged from the original style
used.
TASTE
Virgin Cola is a sweet tasting cola that lacks the gassiness of
the Yankee brands. It is fizzy, but not too much, which makes it
especially good as a mixer. For the same reason it's more
refreshing to drink if you're thirsty.
PACKAGING
21
o Can – Virgin Cola is packaged in red colored can with the
product’s name in white bold letters.
o Bottles – The bottle which contained
the cola was designed with curves to
resemble Pamela Anderson’s sexy
body who was at the height of her
popularity in the UK at the time of the
Virgin Cola’s release.
PRODUCT RANGE
Size Unit per case Type Flavor500 ml500 ml
1212
SparklingSparkling
ColaDiet Cola
500 ml 6 Pack500 ml 6 Pack
1818
SparklingSparkling
ColaDiet Cola
2L2L
66
SparklingSparkling
Cola
D. DISTRIBUTION REVIEW
22
2009 2010 2011 20120
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
67,494
93,910
76,805
48,566
Sales Volume
Sales Volume
Sales Review (2012)
Month 2012
January 4,945
February 4,494
March 5,888
April 6,365
May 7,668
June 5,836
July 4,600
August 3,961
September 4,809
October 0
November 0
December 0
TOTAL 48,566
Due to Virgin Cola’s unfavorable sales during 2012, the Interbev Group
opted to cease the production of the said product.
E. CHANNELS REVIEW
23
1. Virgin is a brand whose customer franchise is so strong that it can be
applied to a vast range of businesses.
2. Virgin Colas can be made available in vending machines stationed at
schools, hospitals, cities and other public vicinities.
3. Virgin Colas may also be offered by fast food chains.
25
Virgin Cola’s strength, weaknesses, opportunities and threats are
as follows:
STRENGTHS:
The power of the brand name; and
Economical
Innovation through image and packaging.
WEAKNESSES:
Too much dependence and emphasis on the brand name
Lack of promotion and advertisement
Virgin wants to be perceived as an alternative to coke, however
this space is already taken by Pepsi. This leaves Virgin out of
the loop
Virgin does not have an established distribution channel, this
will make it hard for Virgin Cola to break out of selected
supermarkets and enter mainstream channels.
Incongruence between strategic and tactical levels; and
Too reliant upon too few distribution outlets.
OPPORTUNITIES:
26
Return of Virgin Cola products in the market
Diversification into new ranges of Virgin Cola products
Increasing consumption levels of soft drinks
The ability to gain more market share
THREATS:
Intense competition (the cola wars)
US saturated soft drinks market
28
A. MARKETING OBJECTIVES
We have set achievable objectives for the first year of the market entry:
1. To restore Virgin Colas in the Philippine Market
2. To penetrate the Philippine market by making the products visible,
accessible and suitable to the Filipino taste and preference
3. To encourage brand shifting to our brand
4. To achieve maximum consumer satisfaction
5. To achieve 10% market shares in five years
B. FINANCIAL OBJECTIVES
Revenue
For a company, revenue is the total amount of money received by
the company for goods sold or services provided during a certain time
period. One of the devise we should use to generate revenue is through
various advertising and sales methods. Revenue objective that the
company intends to generate is 17 billion in sales during the
predetermined time frame that the marketing plan is in effect.
Costs
The projected costs are made up of the elements required to
manufacture and distribute the product including material costs, shipping
costs and personnel costs. The objective of this marketing plan is to track
these costs and find ways of lowering them to make the product more
29
prices competitive in the marketplace. The financial objective with costs is
to find that balance which will allow the company to create a product that
meets company standards, but does so at the best possible price. The
total cost that the company would like to incur to manufacture and
distribute the product is almost 5 billion in 2013.
Advertising
Marketing plans do not only map out advertising strategies, they
also monitor advertising costs to try and find the best value possible for
future marketing campaigns. The advertising schedule set up in a
marketing campaign is done using historical data of past campaigns and
research done into new advertising costs. To be able to get more
customers, the company would like to promote the product through
magazines, newspapers, posters, internet, radio stations, televisions,
billboard ads and etc. The total cost for these advertisements allotted is
250 million in 2013.
Profit
Profit projections are a significant part of the revenue projections in
a marketing plan, and profit is also monitored just as closely as revenue.
Profit is not just a function of how low the company can get the cost to
deliver product, it is also based on how much the company can raise the
asking price. Prices are constantly altered and changed in various target
markets until the projected profit margin is attained. Profit is the surplus
30
remaining after total costs are deducted from total revenue, and the basis
on which tax is computed and dividend is paid. It is the best known
measure of success in an enterprise. For 2013, the company is expecting
that there will be a 12 billion profit.
ISSUES
In relation to the product re-launch, our major issue is the ability to
establish a well-regarded brand name. We will have to invest heavily in
marketing to create a distinctive brand image projecting innovation, quality, and
value. We must also create product awareness among consumers so we can
adjust our marketing efforts as necessary.
32
STRATEGY PYRAMID
The Strategy Pyramid emphasizes the practical importance of building a
solid marketing plan structure. Most marketing plans are developed from the top-
level strategy first.
A. POSITIONING
Positioning is the process of creating a product image that will stick
to the minds of the consumers relative to the other competitors in the
market. It helps the consumers identify and differentiate one brand from
another by remembering the unique characteristics of each brand.
Virgin Cola will bank on symbolic positioning wherein it will identify
itself with Philippine society and adhere to its norms and trends. This is
the approach that worked for its competitor, Coca Cola. By managing to
position itself in line with the Filipino concept of family, it has successfully
Strategy
Tactics
Program
33
penetrated the Philippine market and thus takes up majority of the
Philippine market share.
The societal context that Virgin Cola has to work in is full of hurdles
not only because of intense competition but also the conservative mindset
of people. Virgin Cola may have a strong image and brand name. As
stated earlier. It is one of their strengths, however, in the Philippine
context; it can be the brand’s weakness as well. It needs to position itself
in a subtle manner while maintaining its trademark look and brand name.
B. PRODUCT STRATEGY
New Flavors
For the launch of Virgin Cola we opt to introduce new flavors.
These are Black Premium Cola, Cherry Cola, Blonde Vanilla Cola, and
Jade Lime Cola.
34
Repackaging
The trademark shape of the bottle
will be retained. However, the label’s design
was given a makeover. From the plain red
color that it used to carry, patterns and
other colors such as pink and blue were
added. This is not only to attract the
customer’s attention but also to give it a feel
of sophistication.
New Cover for Bottles
New Can Design
C. PRICING STRATEGY
In the Philippines, we will
have a virgin-to-coke ratio of 8:10. Psychological pricing is the strategy to
be adopted because Filipino consumers have a tendency to patronize
products that are cheaper even if it is only less a peso.
Suggested Retail Price
35
Size Coca Cola Virgin Cola
8 ounce Php. 10.00 Php. 8.00
12 ounce Php. 12.00 Php. 10.00
1.5 liter Php. 45.00 Php. 36.00
D. DISTRIBUTION STRATEGY
Channel of Distributions
Product-Retailer-Customer
The retailer is the only middleman involved in this channel of
distribution wherein the producer let the big retailers sells his product to
consumers.
Why choose this channel?
Only a few middlemen may be required in launching a product that
needs promotional efforts in its initial stage. The nature and type of
middlemen also counts, for a good retailer can help maximize the volume
of sales of a product.
Our group chose a sole retailer for Virgin Cola in its launch:
36
SM Malls
Why SM?
1. It is the biggest mall chain the country.
2. It attracts a large number of potential consumers.
3. It would be the best retailer of Virgin Cola because it could be a great
help in its fast penetration in the market.
After the Launch we expect:
1. The people become aware of Virgin Cola’s existence in the market.
37
2. Asia Brewery can now retail in different stores, particularly in the
provinces.
3. We chose not concentrate that much in Metro Manila because competing
with Coca-cola, the no. 1 soft drink product in the city, would not be easy.
4. Virgin Cola will first get the larger part of the market, if not monopolize, in
the provinces while penetrating slowly towards the centre, which is Metro
Manila.
Fast Food Chains
Virgin Cola will also be available as beverage at different fast food chains
such as Jollibee, McDonalds and others. This will help in increasing the public’s
awareness about the existence of Virgin Cola.
Vendo Machine
38
Vendo Machine of Virgin Cola products will also be
launched. These machines will be put on public places such as
schools and hospitals.
E. MARKETING COMMUNICATIONS STRATEGY
Promotions
Upon its re-launch, Virgin Cola would be available in all SM Malls
wherein free taste promotion would be conducted for a week. Posters and
billboards will also be posted in public places.
Press Conference
There would be press conference for the re-launched product
wherein press people and famous people would be invited and asked for
their opinion about the product (publicity).
Sponsorships in Local Events
Since we are planning to intensify Virgin Cola’s appeal to the
market, particularly in the provinces, which are not yet media corrupted,
we are planning to conduct activities sponsored by Virgin Cola. Such
would be MusicFest, Pa-Binggongbayan, Sportsfest, hosting Barrio
fiestas, etc.
39
Product Endorser
In relation to the previous entry, we have decided to get an
endorser and spokesperson for the product. She should be someone who
would serve as an epitome of the character that the Virgin Cola wants to
show the people ─ Coleen Garcia. Just like Virgin Cola, she is wholesome
enough to make the youth look up to her.
Catchy Billboards and Posters
Creative and interesting billboards and posters will be put in key
locations such as main roads to arouse awareness to the general public.
Other Billboard Designs
41
Suggested Tags
Satisfaction within Virgin No one else comes close. Virgin Be Pure, Be Virgin Classic Taste of Refreshment Like a Virgin Feel the Drift till the Last Sip Drink it. Live it.
Television and Commercials
Lively and effective TVCs will be aired in the major TV stations ─
ABS-CBN, GMA 7, QTV 11, TV5 and Studio 23 particularly during
noontime, when everyone would be craving for a refreshing drink to
quench their thirst caused by the summer heat.
42
Sample 1
A student was having a
hard time studying his history
book. He rests for a while and
drank his virgin cola. He smiles
while drinking and his sweat
disappears (the camera will turnout black and white, light waves cover the
screen). After drinking his virgin cola, he opens his eyes and sees
katipuneros running towards him. He panic and tries to stop them from
attacking him by offering his Virgin Cola. The leader of the group tastes it
and gave some to his subordinates. At first, the student thought he had
established peace but instead, the katipuneros wanted more and ran after
him.
Sample 2
A man hurriedly picks up his
Virgin Cola and step up at the train
before it closes. When he entered
the train all passenger stared at him
and he realized he entered at the
girl’s section of the train. Because he
doesn’t know what to do, he drank his Virgin Cola and made a sound of
“Brrrrr”. Everyone in the train laughed at him. When the passengers get down
43
the train they also buy their own Virgin Cola and simultaneously made the
sound of “Brrrr”.
Sample 3
All boys fell in love with a
beautiful lady who will be played by
Coleen Garcia. They do everything to
make her fall in love with them. Some
gave her chocolates, flowers and
teddy bears but no one can capture her attention. Then came a guy with a Virgin
Cola in his hand. He offered it to Coleen and when she tasted it she suddenly
liked the taste and fell in love with the guy.
Magazines and Newspaper Advertisements
There would also print ads in glossy magazines, particularly in magazines like
Candy, Seventeen and the likes since their readers are mostly the youth, which
is Virgin Cola’s target market too.
44
Likewise, print ads in newspapers would be available, particularly in
broadsheets such as Philippine Star and Philippine Daily Inquirer and in decent
tabloids such as People’s Journal and Pilipino Star Ngayon, so that more people
would be aware of the product’s existence.
Cebu Pacific
We opt to use Virgin Cola and Asian Brewery Beverages to be the only
available drinks in Cebu Pacific.
45
Internet Advertisements
Internet Advertisements (Facebook, Yahoo, Google, Twitter and
Entertainment websites) are cost-efficient and very effective when it comes to
reaching the target market.
Vehicle Advertisements
Vehicle Advertisements include Virgin Cola’s Advertisements on LRTs, MRTs, jeepneys, tricycles, taxies, buses, pedicabs, and private-owned cars.
46
Radio Advertisements
Radio Advertisements will be made available in radio stations such as Love Radio, WRR, Star FM, LSFM, and Energy FM.
University Caravans
Virgin Cola caravans in different universities could also help in the
promotion of the product by simply sponsoring leadership or
entrepreneurial seminars to the students. Afterwards, notebooks, ball
pens, fans, pins with “ I Heart Virgin Cola” written on them and other stuffs
47
with Virgin Cola logos could be given away for these help the market
remember the product.
Bottle Cap Freebies
An effective promotional gimmick would be “tansan contest”.
Written under selected tansans would be: “free movie entrance”,
“free discount coupons on selected restaurants”, “free discount on
selected salons”, “free tickets to big concerts to be sponsored
Virgin Cola”, “free items with Virgin Cola logos (thermos, bags,
shades, coin purse, shirts etc.)” and the like.
Consumers can redeem the prizes in selected retail outlets.
F. MARKETING RESEARCH
48
Market Segmentation
Geographic
Segmentation Variables DataWorld Region Asia
Country PhilippinesCities All major cities of Philippines
Density RuralClimate Wet and Dry
Demographic
Segmentation Variables DataAge 15-35+
Gender Male, FemaleFamily Size 5
Family life cycle Married, SingleIncome Class B and C
Income Php. 2,045,000Education Elementary to College
Race AsianNationality Filipino
Psychographic
Segmentation Variables DataSocial Class Classes A to D
Lifestyle
Behavioral
Segmentation Variables DataOccasions AnytimeBenefits Thirst quencher
User Status First time usersLoyalty Status Brand loyal to market leader
Readiness Stage Unaware
49
Target Market
The target market of Virgin Cola in the Philippines are Filipinos
between 15-35 years of age belonging to classes B and C.
Based on the marketing demographics presented in the beginning
of the presentation, the target market is 15,210,295 Filipinos
Computation for the Target Market
Population= 101,833,938(2012) and 94,013,200(2010)
Ages 15-35= 33354300 (2010)
Ratio and Proportion will be used to get the estimated ages 15-
35 for the year 2012
population 2010 = ages15-35 2010
population 2012 ages15-35 2012
94,013,200 = 33354300 (2010)
101,833,938 ages 15-35 2012
Ages 15-35 2012 = 101833938 x 33354300 ÷ 94013200
= 36, 128, 966
According to Bureau of Internal Revenue, 42.1% of Filipinos
belongs to classes B and C
Computation
36, 128, 966x 0.421 = 15,210,295
50
G. MARKETING ORGANIZATION
Marketing Organization- Interbev according to its function
Carlos BritoCEO
Franciso SáZone PresidentLatin America
South Jo Van Biesbroeck
Zone President Western Europe &
Chief Strategy OfficerMichael
DoukerisZone
President Asia Pacific
Joäo Castro NevesZone
President Latin America
NorthStuart
MacFarlane
Zone President Central & Eastern Europe
Sabine ChalmersChief Legal &
Corporate Affairs Officer
Claudio Garcia
Chief People & Technology
Officer
Bernardo Pinto Paiva
Chief Sales OfficerMiguel Patricio
Chief Marketi
ng Officer
Felipe DutraChief Financial
Officer
Tony MilikinChief
Procurement Officer
Claudio Braz Ferro
Chief Supply Officer
52
Collaborations with NGO’s
We would like to retain the wholesomeness and live out the product’s
name since the youth is our target market. That’s why we are thinking of
collaborating with NGO’s like Gabriella to have awareness seminars regarding
social justice or of the rights of women especially during March —which is
Women’s Youth month. Our very own endorser Ms. Coleen Garcia could serve
as our collaborator and representative for this project. 4B can be placed for this
project.
Virgin Forest Preservation
We are also thinking of teaming up with groups that aim to save our
country’s virgin forests. Since we would like to live out the product’s name, we
are planning to help these groups preserve our forest by giving donations. Virgin
cola would promote the protection and rehabilitation of these forests for longer
lifespan and future proper utility. This would be the company’s charity work. This,
53
at the same time, would lower taxes of the company. We should allot at least
3Mfor this project.
Campaign with Religious Sects
As our brand name is close enough to sacredness; we decided to adjoin
with religious sects. Filipino society places much importance on family and
religion. It is a communal society. A budget of 3M should be appropriated for this.
Musicfest
A musicfest is expected to uphold during summer wherein Virgin Cola is
the main sponsor. The event can be open to all persons but may require
purchasing virgin cola products which will serve as the entrance fee. Contests
and food galore can also be injected to this event. Not only popular bands must
54
there but also influential celebrities to attract people. This can be held in Boracay.
A budget of 4M is appropriated for this.
56
SALES FORECAST
Projected Sales for a Year
Assuming that all target market will buy 12 ounce Virgin Cola for P8.00
thrice a week for a year:
Target Market: 15,210,295
Frequency per week: 3
Number of weeks in a year: 48 weeks
Price: P8.00
Projected Sales: 15,210,295 x 3 x 48 x 8 = P 17,522,259,840.00
Projected Sales in 5 years
P 17,522,259,840.00x 5 = P 87,611,299,200.00
ADVERTISING FORECAST
In each advertisement there will be an increase of 2% in the year 2014-2015, 5% for 2015-2016, 7% for 2016-2017 and 10% for 2017-2018
Computations:
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018Magazine 7978176 8137740 8544627 9142751 10057026
Newspaper 18185148 18548851 19476294 20839635 22923599Posters 4800000 4896000 5140800 5500656 6050722Internet 14400000 14688000 15422400 16501968 18152165Radio 36000000 36720000 38556000 41254920 45380412
Television 72000000 73440000 77112000 82509840 90760824Artwork and Production
50000000 51000000 53550000 57298500 63028350
Billboard 14400000 14688000 15422400 16501968 18152165Transport 2400000 2448000 2570400 2750328 3025361
Total Cost for Advertisemen
t
220,163,324
224,566,591
235,794,921
252,300,566
277,530,624
57
The cost in 2012 is based on the contract that the companies offer
Magazine is based on the 5 leading magazine in the
Philippines (Cosmopolitan, Yes!, Candy, Metro, and Men’s
Health)
Newspaper is based on the 3 companies in the Philippines
(Philippine Daily Inquirer, Philippine Star and Manila Bulletin)
Poster will offer 30 sheets every week
Internet is based on the 3 websites (Google, Yahoo and
Facebook)
Radio is based on the 5 leading stations in the Philippines
(97.1 Barangay LS, NU 107, 101.9 for Life, 90.7 Love Radio,
and 101.1 Yes FM)
Television is based on ABS-CBN, GMA, Studio23, QTV and
TV5
58
EXPENSE FORECAST
Promotions and Scholarship will increase 2% every year.
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018Promotions 310,000,000 316,200,000 322,524,000 328,974,480 335,553,970
Cash Rewards
Automobile RewardsGadgets Rewards
Free TasteMall Tours
250,000,000 255,000,000 260,100,000 265,302,000 270,608,040
Sponsorship
University Events
ConcertsMusicfestSportsfest
60,000,000 61,200,000 62,424,000 63,672,480 64,945,930
Expenses for packaging, labels and endorser:
There will be an increase of 2% in packaging and labels but there will only
be 1% increase for the endorsers.
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Packaging 300,000,000 306,000,000 312,120,000 318,362,400 324,729,648
Labels 300,000,000 306,000,000 312,120,000 318,362,400 324,729,648
Endorsers 9,000,000 9,090,000 9,180,900 9,272,709 9,365,436
59
Collaboration with NGO’s
4,000,000,000 will be given to NGO’s every year
Total Expenditures
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Total
5,139,163,324
5,161,856,591
5,191,739,821
5,227,272,555
5,271,909,326
Total Expenses in 5 years: P25,991,941,617
PROFIT FORECAST
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Sales 17,522,259,840 17,522,259,840 17,522,259,840 17,522,259,840 17,522,259,840
Expenditures
5,139,163,324
5,161,856,591
5,191,739,821
5,227,272,555
5,271,909,326
Profit 12,383,096,516 12,360,403,249 12,330,520,019 12,294,987,285 12,250,350,514
61
The local cola market has been growing steadily over the last few years
due to increases in people's disposable income and opening of the economy.
With this in mind we intend, with our marketing programs, to expand accordingly.
The introduction of quality beverages will enable Asia Brewery to market to
potential customers. We project sales to increase accordingly, though slightly
slower as we establish a reputation for ourselves. With time, a presence on the
Internet and participation in regional trade shows will be key milestones to
expanding sales and marketing potentials through the utilization of new channels
and identification of potential. Throughout the year we intend to undertake
regular evaluations of our marketing programs so as to ensure that we are in-line
with our intended objectives. In summary we intend to undertake the following:
1. Tracking and follow-up: We intend to have the discipline, as an
organization, to track results of the business plan and make sure that we
implement.
2. Market segment focus: We intend to have the discipline to maintain the
market segment focus.
3. Saying no: Though difficult initially, we intend to be able to say no to
special deals that take us away from the target focus and are unprofitable.
4. Penetrate local and international market
5. Promote the Virgin Cola and line this as one of the most dominant colas
all over the country.
63
References:
History
http://www.asiafinest.com/forum/index.php?showtopic=24286
Demographics
http://www.nscb.gov.ph
http://www.indexmundi.com/philippines/demographics_profile.html
http://www.indexmundi.com/philippines/population_growth_rate.html
Beverage market
http://www.nscb.gov.ph/sna/2012/3rd2012_RevJan2013/2012hfce3_rev.asp
Factors that affect marketing environment
Principles of Marketing, 14th edition by Philip Kotler and Gary Armstrong
Product Review
http://en.wikipedia.org/wiki/Virgin_Cola
Soft drink in the Philippines
http://en.wikipedia.org/wiki/List_of_soft_drinks_by_country#Philippines
Virgin group brand values
http://www.marketingminds.com.au/branding/virgin.html
Virgin group logo and Brand Name
http://en.wikipedia.org/wiki/Virgin_Group
Virgin Cola Taste
http://www.ciao.co.uk/Reviews/Virgin_Cola__5344016