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I. Executive Summary

In a market saturated with cola brands, there came Virgin Cola. Its the brainchild of rebel billionaire Richard Branson, who leads the empire of Virginbranded products. Upon its launching in 1994, his intensions were clear: he wanted the brand to be as well-known around the world as market leader CocaCola. 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 Pame la 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 Colas relationship with Cott Corporation broke down due to a dispute over strategy, and Branson bought Cotts 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.

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 Bransons 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 2030% 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, Bransons team opt to pull out Virgin Colas 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.

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.

II. Current Marketing Situation

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 Brewerys 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 Colas 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.

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 lines 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 nonalcoholic beverages (includes consumption at home, school and work).

Family Expenditures
Food 21.97 42.6 3.66 14.56 12.88 Transportation and Communication Education Other Needs Electricity, Water, and Fuel

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)

Median age Total: 22.9 years Male: 22.4 years Female: 23.4 years Population growth rate1.873% 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 products 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.

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PSYCHOLOGICAL A persons buying choices are further influenced psychological by four major

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

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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 buyers 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

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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 consumers behavior also is influenced by social factors, such as the consumers 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.

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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 buyers decisions also are influenced by personal buyers characteristics age and such as the

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 lifecycle 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.

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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.

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B. PRODUCT REVIEW Virgin Cola Type Manufacturer Country of Origin Year Introduced Variants Local Related Products Cola Virgin Drinks Silver Spring United Kingdom 1994 Diet Virgin Cola Coca-Cola Pepsi Pop Cola RC 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.

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Virgin Cola (Original) List of Ingredients Carbonated water Sugar Phosphoric acid Sodium Benzoate Aspartame Caffeine Acesulfame-k Phenylalanine Phenylketonurics Natural flavorings

Virgin Cola (Blue) List of Ingredients Carbonated water Flavorings Sugar Sodium Citrate Citric acid Antioxidant = Ascorbic Acid Preservative = Sodium Benzoate

Virgin Cola (Orange) List of Ingredients Carbonated water Sugar Stabilizers Acacia Gum Orange Flavoring Citric Acid

Flavoring

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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 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%.

Market Shares
3% 2% 15% Coca-Cola Pepsi Cola 80% RC Cola Others

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Competitors assessment Coca-Cola Pepsi RC Pop Cola

Strengths

Weakness

1.Brand 1.Extensive Strength 1.Low price bottling 2.Effective 2.Concentrated system stride in new Brand Identity 2.Packaging markets 3.Focused on 3.Brand 3. Strong Mass Market Strength existing distribution channels. 1. Reliant upon line extensions. 2. Reliant upon 1.Does not particular cater to upper carbonated class market 1.Health drinks. 2.Selective issues 3. Brand dilution advertising entrance into 3.Not available non-core in most fast categories. food areas 4. Saturation of carbonated soft drink segment. 1.Further expansion of market share 2.Brand is attractive to global partners

1.Low price

1.Does not cater to upper class market 2.selective advertising 3.not available in most fast food areas 4.Health issue

Opportunities

1.Extensive target market

1.Expansion of target market to international areas

1.More bottling systems for further expansion into the local market

Threats

1.Other alternative beverages

1.Strong competition 2.Potential health issues

1.Strong competition

1.Strong competition

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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. 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.

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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 o Can Virgin Cola is packaged in red colored can with the products name in white bold letters.

o Bottles The bottle which contained the cola was designed with curves to resemble Pamela Andersons sexy body who was at the height of her popularity in the UK at the time of the Virgin Colas release. PRODUCT RANGE
Size 500 ml 500 ml 500 ml 6 Pack 500 ml 6 Pack 2L 2L Unit per case 12 12 18 18 6 6 Type Sparkling Sparkling Sparkling Sparkling Sparkling Sparkling Flavor Cola Diet Cola Cola Diet Cola Cola

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D. DISTRIBUTION REVIEW

Sales Volume
100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2009 2010 2011 2012 48,566 Sales Volume 67,494 93,910 76,805

Sales Review (2012)

Month January February March April May June July August September October November December TOTAL 2012 4,945 4,494 5,888 6,365 7,668 5,836 4,600 3,961 4,809 0 0 0 48,566

Due to Virgin Colas unfavorable sales during 2012, the Interbev Group opted to cease the production of the said product.

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E. CHANNELS REVIEW 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.

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III. Strengths, Weaknesses, Opportunities, and Threats Analysis

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Virgin Colas 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 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. already taken by Pepsi. This leaves Virgin out of

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OPPORTUNITIES: 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

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IV. Objectives and Issues

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OBJECTIVES 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

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these costs and find ways of lowering them to make the product more 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

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markets until the projected profit margin is attained. Profit is the surplus 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.

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V. Marketing Strategy

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STRATEGY PYRAMID

Strategy

Tactics

Program
The Strategy Pyramid emphasizes the practical importance of building a solid marketing plan structure. Most marketing plans are developed from the toplevel 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

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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 brands 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.

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Repackaging The trademark shape of the bottle will be retained. However, the labels 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 customers attention but also to give it a feel of sophistication.

New Cover for Bottles

New Can Design

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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 Size 8 ounce 12 ounce 1.5 liter Coca Cola Php. 10.00 Php. 12.00 Php. 45.00 Virgin Cola Php. 8.00 Php. 10.00 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.

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Our group chose a sole retailer for Virgin Cola in its launch:

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 Colas existence in the market. 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.

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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 publics awareness about the existence of Virgin Cola.

Vendo Machine Vendo Machine of Virgin Cola products will also be launched. These machines will be put on public places such as schools and hospitals.

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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 Colas 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. 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

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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

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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. 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

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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 girls section of the train. Because he doesnt 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 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.

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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 Colas target market too.

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 Peoples Journal and Pilipino Star Ngayon, so that more people would be aware of the products existence.

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Cebu Pacific We opt to use Virgin Cola and Asian Brewery Beverages to be the only available drinks in Cebu Pacific.

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.

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Vehicle Advertisements Vehicle Advertisements include Virgin Colas Advertisements on LRTs, MRTs, jeepneys, tricycles, taxies, buses, pedicabs, and private-owned cars.

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

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entrepreneurial seminars to the students. Afterwards, notebooks, ball pens, fans, pins with I Heart Virgin Cola written on them and other stuffs 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.

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F. MARKETING RESEARCH Market Segmentation Geographic Segmentation Variables World Region Country Cities Density Climate Demographic Segmentation Variables Age Gender Family Size Family life cycle Income Class Income Education Race Nationality Psychographic Segmentation Variables Social Class Lifestyle Behavioral Segmentation Variables Occasions Benefits User Status Loyalty Status Readiness Stage

Data Asia Philippines All major cities of Philippines Rural Wet and Dry

Data 15-35+ Male, Female 5 Married, Single B and C Php. 2,045,000 Elementary to College Asian Filipino

Data Classes A to D

Data Anytime Thirst quencher First time users Brand loyal to market leader Unaware

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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 1535 for the year 2012

population 2010 population 2012

ages15-35 2010 ages15-35 2012

94,013,200 101,833,938

33354300 (2010) 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

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G. MARKETING ORGANIZATION

Carlos Brito CEO

Franciso S Zone President Latin America South

Luiz Fernando Edmond Zone President North America

Sabine Chalmers Chief Legal & Corporate Affairs Officer

Felipe Dutra Chief Financial Officer

Jo Van Biesbroeck Zone President Western Europe & Chief Strategy Officer

Joo Castro Neves Zone President Latin America North

Claudio Garcia Chief People & Technology Officer

Tony Milikin Chief Procurement Officer

Michael Doukeris Zone President Asia Pacific

Stuart MacFarlane Zone President Central & Eastern Europe

Bernardo Pinto Paiva Chief Sales Officer

Claudio Braz Ferro Chief Supply Officer

Miguel Patricio Chief Marketing Officer

Marketing Organization- Interbev according to its function

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VI. Actions and Programs

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Collaborations with NGOs We would like to retain the wholesomeness and live out the products name since the youth is our target market. Thats why we are thinking of collaborating with NGOs like Gabriella to have awareness seminars regarding social justice or of the rights of women especially during March which is Womens 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 countrys virgin forests. Since we would like to live out the products 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 companys charity work. This,

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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

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there but also influential celebrities to attract people. This can be held in Boracay. A budget of 4M is appropriated for this.

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VII. Budget

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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 20142015, 5% for 2015-2016, 7% for 2016-2017 and 10% for 2017-2018 Computations:
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 Magazine 7978176 8137740 8544627 9142751 10057026 Newspaper 18185148 18548851 19476294 20839635 22923599 Posters 4800000 4896000 5140800 5500656 6050722 Internet 14400000 14688000 15422400 16501968 18152165 Radio 36000000 36720000 38556000 41254920 45380412 Television 72000000 73440000 77112000 82509840 90760824 Artwork and 50000000 51000000 53550000 57298500 63028350 Production Billboard 14400000 14688000 15422400 16501968 18152165 Transport 2400000 2448000 2570400 2750328 3025361 Total Cost for 220,163,324 224,566,591 235,794,921 252,300,566 277,530,624 Advertisement

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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 Mens 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

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EXPENSE FORECAST Promotions and Scholarship will increase 2% every year. 2013-2014 Promotions Cash Rewards Automobile Rewards Gadgets Rewards Free Taste Mall Tours Sponsorship University Events Concerts Musicfest Sportsfest
310,000,000

2014-2015
316,200,000

2015-2016
322,524,000

2016-2017
328,974,480

2017-2018
335,553,970

250,000,000

255,000,000

260,100,000

265,302,000

270,608,040

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 Endorsers 300,000,000 306,000,000 312,120,000 318,362,400 324,729,648 9,000,000 9,090,000 9,180,900 9,272,709 9,365,436

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Collaboration with NGOs 4,000,000,000 will be given to NGOs 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 Sales
17,522,259,840

2014-2015
17,522,259,840

2015-2016
17,522,259,840

2016-2017
17,522,259,840

2017-2018
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

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VIII. CONTROLS

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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.

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IX. References

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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