10 step marketing
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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
www.danielberroya.blogspot.com
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
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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”
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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
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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
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“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.
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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.
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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
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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.
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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.
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3a. Coconut water is the
newest and hottest drink with
many indirect competitors.
Direct: (new players)
Indirect: (new players)
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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.
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Madonna campaigns…
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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.
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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.
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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/
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5a. Coconut water estimated
market size based on inquirer and
Philippine Coconut Authority.
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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.
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“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.
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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.
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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.
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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.
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6a. Vita Coco superior display
and potential local leader.
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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)
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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
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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.
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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
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8a. Vita Coco commercial with
fresh, natural and “real”
experience.
Vita Coco “real” customer experience
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8a. Vita Coco endorsed by POP
ICON. (commercial)
Vita Coco RIHANNA
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8a. Vita Coco as a Miracle Drink
(commercial)
Vita Coco is a Miracle Drink
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8a. Vita Coco as an Energy Drink and
helps lose weight. (commercial)
Vita Coco “hydration”
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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.
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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.
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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.
www.danielberroya.blogspot.com
The 10 Step Marketing Plan
i-PLAY NYEL BERROYA Ateneo Graduate School of Business
February 28, 2012
2012 Edition
www.danielberroya.blogspot.com