In the UK, the company was impacted by a solid operating results driven by a balanced volume and a pricing growth characterized by a strong marketplace execution and a moderate of goods increase. A continued strong performance by abbey well mineral in UK also contributed to great margins of profits. The company’ Europe operations in Europe delivered a strong solid performance during the year 2009 with a growth percentage of 5% and a pricing growth of 4 %. The cost of sales increased slightly due to increased cost of bottle and packaging costs by 1.5% while we expect the same increase in 2010 due to increased value for raw materials. During 2009, the operating expenses were $1.5 billion compared to an operating loss of $6.3 billion los in 2008.
The type of data that we used to conduct this research was mainly secondary sources of information by use of books, online research and journals about the UK market. We also did give out questionnaires to sample of the population while we interviewed some customers to know their views and wishes. We realized that many of them wanted to stay healthy and thus we insisted on giving them a healthy drink.
To realize our dreams of making novida a healthy drink, we have to have a marketing strategy centered on creating consumer awareness on healthy living, to establish a wide novida brand recognition and become the top leader in the healthy drinking sector. To achieve all the above we need to have a marketing program that encompasses product strategy, a promotional strategy and a distribution strategy.
The core of the novida drink is in a pr-bottled and ready to drink format. The product will come in a green bottle of 200ml, 500ml and 1 liter package. With the trade name “novida” energy, funky, cool and healthy drink. Market considerations will be based on Coca-Cola’s strategy to broaden its distribution quickly.
The price strategy undertaken considered the following; consumer demand, potential substitutes and the lifecycle of the product. Customer demand is driven by tastes, income and availability of similar products at a different price. For Coca-Cola, the intention is to push novida as a unique, attractive and healthy drink. Therefore we intend to have a higher earlier pricing in its lifecycle instead of increasing the price midway. This will also ensure higher profit margins. For the potential substitutes, we intend have product differentiation.
The objectives of the promotion are to initiate a strong awareness about the launch of novida throughout the UK and also win market shares over the top competitor PepsiCo. The message of the promotion will essentially derive the message that novida is a healthy fruit juicy drink for all who want to have a longer life. we decided to use the internet due to increased traffic over the internet, and TV programs with healthy living talks. We will later introduce a promotion for mountain climbing, where the winner will get novida merchandise while runner’s up will be rewarded with half the merchandise. We will give free samples to the contestants during the promotional day. Place of distribution for Novida will be Supermarkets, vending machines, groceries and convenience stores throughout the UK.
Financial projection(for the figures refer on the table below).
C.M per bottle = 382,000/275,000 = ?0.7
Break even= (113,400 + 25 600)/ 0.7 = 198,588
Market share: 198, 588/1,000,000 = 19.8%
This shows that novida will break-even after 198,588 bottles has been sold and then the company will be generating ?0.7 towards profits.
Average COGS= 36%
Targeted market = 1 million bottles
Cost of goods sold: ?597,124*36% = ?214,964
Over Head costs: ?597,124*38% = ?226,907
Expected revenues = ?597,124
We expect that the company will break after 6 months of operation and then we will look into the prospects of exporting novida to American markets before we launch it in China.
The above information contains all that information needed by Coca-Cola UK which will be launching a new product to the market, Novida. The plan outlines all that is needed to successively launch Novida into the market.