Description
"
It describes the Presentation on Coca Cola and its strategy for launch of Xplode.It describes the current situation faced by the company. It describes the drivers for the energy drinks in India.It then describes the advertisment expenditure, promotion timeline and the distribution channels"
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Present in 200 countries Annual Sales of 1.6 billion units A Healthy Growth to The Indian Economy Creating Enormous Job Opportunities- 6000 + 125000 Revenues in 2009 rose 9% to $8.39 billion. Products
Market People who drink beverages
Target Market People who drink aerated and carbonated beverages
Segment
Geographic ? ? ? Urban Rural
Target Segment •Geographic •Rural •Semi Urban •Income •Medium to High •Customer Type •Farmer(Self) •Self employed •B to C •Size of farm •Medium to big
Semi Urban Income ? ? ? High Medium Low
Gender ? ? Male Female
Customer Type • Individual (B to C) • • Contractor Corporate
Behavioral
• • Occasions Benefits
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?
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Product Price - Penetration Pricing Promotion Place Ad Budget($ Billion)
3.5 3 2.5 2 1.5 1 0.5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ad Budget($ Billion)
SOBE No Fear Adrnaline Private 1% Venom 1% SOBE NOS Label Vitamin Lean Energy Jolt 1% 1%0% 0% Doubleshot 2% 1% 2% Full Throttle 4%
AMP 8%
Chart Title
Go Girl 0%
Red Bull 42%
Rockstar 13%
Moster 24%
Increasing party-going segment Increasing expenditure on trendy beverages Alternate to alcoholic beverages Nascent market, CAGR of 25% over past 3 years Market to reach Rs.400 Crore by 2014 Youngsters want to try out something different
Market All people who drink beverages
Target Market People who consume energy drinks
Segments Age -Children -Young people -Middle aged -Aged Gender -Men -Women Geographic -Urban -Rural Occupation/Hobbies -Executives -Sports-persons -Corporate employees -Govt. Employees -Army personnel Income Group -High -Medium -Low
Target Segments -Young people -Middle aged people -Men -Urban -Executives -Sports-persons -Corporate employees -Army personnel -High -Medium
•Current competitor products highly priced and narrowly focused •Position Coca Cola’s product as an affordable energy drink for regular usage
•For executives , sportsmen and young professionals rather than just concentrating on sports
PRODUCT LINE
PRODUCT TYPE
Caffeinated energy drink Less caffeine <145 ppm
Non-alcoholic soft drink
Packaging in tin cans SKU standard size of 250 ml Brown coloor
Sudden change in state
High impulse
Xplode
Trendy
Simple
•
Capacity installed = 4 lac cans/day increases from 80% to 100% capacity utilisation over period
•Production
of 6 years. Investment is only new equipment cost and rest is available from Coke’s existing facilities.
• •Selling
& admin and advertising expenses are a percent of sales expenses are varying over the period
•Advertising
•Variable
cost is nearly same as that of Redbull and Cloud 9
•NPV
technique of appraisal used for decision making
Capital Budgeting Calculations
(lacs) Capital Budgeting Initial Cashflow Sales and other Revenue Variable Costs(RM+Power+labour) Contribution Contribution/unit Depreciation Advertising Spends Selling and Administration Cost Interest on Loans Operating Profit Tax Cashflows Net Present Value of Cash Inflows Initial Investment NPV of cashflows Year 1 -20000.0 40880.0 17520.0 13875.8 11.9 2000.0 8176.0 8993.6 2000.0 2190.4 722.8 -16532.4 20384.9 -20000.0 384.9 2.0 3.0 4.0 5.0 6.0
46720.0 17520.0 19949.4 17.1 2000.0 8409.6 8409.6 2000.0 8380.8 2765.7 7615.1
52560.0 19710.0 23231.5 17.7 2000.0 7884.0 9460.8 2000.0 11505.2 3796.7 9708.5
52560.0 19710.0 23231.5 17.7 2000.0 7884.0 9460.8 2000.0 11505.2 3796.7 9708.5
65700.0 21900.0 30791.4 21.1 2000.0 11826.0 11826.0 2000.0 16148.0 5328.8 12819.2
65700.0 21900.0 30791.4 21.1 2000.0 11826.0 11826.0 2000.0 16148.0 5328.8 12819.2
Since NPV>0 the project undertaking is feasible Also the project is breaking even in the first year itself with the payback period being Breakeven sale units 197902933.3
2.91 years
?
Personal Selling
By Distributor In Pubs Others
Sales Promotion
Student as brand managers Coupons Rodeshows
? ?
Networking Sites Search engines
?
? ? ?
Advertising
TV- all sports channels, MTV, Zoom Sponsoring Events – IPL, Common wealth games etc. Sponsoring TV shows
Expenditure
Posters,Coupons 5% Magazine&NewsPapers 15%
Road shows&others 13%
TV 67%
Chart Title
180 160 140 120 Axis Title 100 80 60 40 20 0 March TV Magazine Out of Home Transit
April
May
June
Xplode’s Urban Distribution Channel
Plant Warehouse Depot Warehouse
Production
Distribution
Warehouse
Retail Stock
Retail Shelf
Consumer
Super Markets, Departmental Stores
Key Accounts
Production Plant Warehouse Depot Warehouse Distribution Warehouse Key Accounts
Large quantities of a product in one single transaction Adequate credit period Clubs, Gyms, fine dine restaurants, hotels, Corporate houses
THANKYOU
doc_632788083.pptx
"
It describes the Presentation on Coca Cola and its strategy for launch of Xplode.It describes the current situation faced by the company. It describes the drivers for the energy drinks in India.It then describes the advertisment expenditure, promotion timeline and the distribution channels"
?
?
? ?
? ?
Present in 200 countries Annual Sales of 1.6 billion units A Healthy Growth to The Indian Economy Creating Enormous Job Opportunities- 6000 + 125000 Revenues in 2009 rose 9% to $8.39 billion. Products
Market People who drink beverages
Target Market People who drink aerated and carbonated beverages
Segment
Geographic ? ? ? Urban Rural
Target Segment •Geographic •Rural •Semi Urban •Income •Medium to High •Customer Type •Farmer(Self) •Self employed •B to C •Size of farm •Medium to big
Semi Urban Income ? ? ? High Medium Low
Gender ? ? Male Female
Customer Type • Individual (B to C) • • Contractor Corporate
Behavioral
• • Occasions Benefits
?
?
? ?
Product Price - Penetration Pricing Promotion Place Ad Budget($ Billion)
3.5 3 2.5 2 1.5 1 0.5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ad Budget($ Billion)
SOBE No Fear Adrnaline Private 1% Venom 1% SOBE NOS Label Vitamin Lean Energy Jolt 1% 1%0% 0% Doubleshot 2% 1% 2% Full Throttle 4%
AMP 8%
Chart Title
Go Girl 0%
Red Bull 42%
Rockstar 13%
Moster 24%
Increasing party-going segment Increasing expenditure on trendy beverages Alternate to alcoholic beverages Nascent market, CAGR of 25% over past 3 years Market to reach Rs.400 Crore by 2014 Youngsters want to try out something different
Market All people who drink beverages
Target Market People who consume energy drinks
Segments Age -Children -Young people -Middle aged -Aged Gender -Men -Women Geographic -Urban -Rural Occupation/Hobbies -Executives -Sports-persons -Corporate employees -Govt. Employees -Army personnel Income Group -High -Medium -Low
Target Segments -Young people -Middle aged people -Men -Urban -Executives -Sports-persons -Corporate employees -Army personnel -High -Medium
•Current competitor products highly priced and narrowly focused •Position Coca Cola’s product as an affordable energy drink for regular usage
•For executives , sportsmen and young professionals rather than just concentrating on sports
PRODUCT LINE
PRODUCT TYPE
Caffeinated energy drink Less caffeine <145 ppm
Non-alcoholic soft drink
Packaging in tin cans SKU standard size of 250 ml Brown coloor
Sudden change in state
High impulse
Xplode
Trendy
Simple
•
Capacity installed = 4 lac cans/day increases from 80% to 100% capacity utilisation over period
•Production
of 6 years. Investment is only new equipment cost and rest is available from Coke’s existing facilities.
• •Selling
& admin and advertising expenses are a percent of sales expenses are varying over the period
•Advertising
•Variable
cost is nearly same as that of Redbull and Cloud 9
•NPV
technique of appraisal used for decision making
Capital Budgeting Calculations
(lacs) Capital Budgeting Initial Cashflow Sales and other Revenue Variable Costs(RM+Power+labour) Contribution Contribution/unit Depreciation Advertising Spends Selling and Administration Cost Interest on Loans Operating Profit Tax Cashflows Net Present Value of Cash Inflows Initial Investment NPV of cashflows Year 1 -20000.0 40880.0 17520.0 13875.8 11.9 2000.0 8176.0 8993.6 2000.0 2190.4 722.8 -16532.4 20384.9 -20000.0 384.9 2.0 3.0 4.0 5.0 6.0
46720.0 17520.0 19949.4 17.1 2000.0 8409.6 8409.6 2000.0 8380.8 2765.7 7615.1
52560.0 19710.0 23231.5 17.7 2000.0 7884.0 9460.8 2000.0 11505.2 3796.7 9708.5
52560.0 19710.0 23231.5 17.7 2000.0 7884.0 9460.8 2000.0 11505.2 3796.7 9708.5
65700.0 21900.0 30791.4 21.1 2000.0 11826.0 11826.0 2000.0 16148.0 5328.8 12819.2
65700.0 21900.0 30791.4 21.1 2000.0 11826.0 11826.0 2000.0 16148.0 5328.8 12819.2
Since NPV>0 the project undertaking is feasible Also the project is breaking even in the first year itself with the payback period being Breakeven sale units 197902933.3
2.91 years
?
Personal Selling
By Distributor In Pubs Others
Sales Promotion
Student as brand managers Coupons Rodeshows
? ?
Networking Sites Search engines
?
? ? ?
Advertising
TV- all sports channels, MTV, Zoom Sponsoring Events – IPL, Common wealth games etc. Sponsoring TV shows
Expenditure
Posters,Coupons 5% Magazine&NewsPapers 15%
Road shows&others 13%
TV 67%
Chart Title
180 160 140 120 Axis Title 100 80 60 40 20 0 March TV Magazine Out of Home Transit
April
May
June
Xplode’s Urban Distribution Channel
Plant Warehouse Depot Warehouse
Production
Distribution
Warehouse
Retail Stock
Retail Shelf
Consumer
Super Markets, Departmental Stores
Key Accounts
Production Plant Warehouse Depot Warehouse Distribution Warehouse Key Accounts
Large quantities of a product in one single transaction Adequate credit period Clubs, Gyms, fine dine restaurants, hotels, Corporate houses
THANKYOU
doc_632788083.pptx