Group Assignment

(Individual)
DBM/11/M6/2821

Submitted to the
Department of Business and Information Management
Sri Lanka Institute of Information Technology

Lecture in charge:
Mrs. Nishanthi Kariyapperuma

Sri Lanka Institute of Information Technology

October 2011, Colombo

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Introduction of the Company

Coca-Cola Company Profile

Coca-Cola was invented in 1886 by John Pemberton, a pharmacist in Atlanta, Georgia, who
originally brewed the syrup. The Coca Cola Company is the world’s largest manufacturer,
marketer and distributor of non-alcoholic beverage concentrates and syrups. The Coca-Cola
Company is the world’s leading seller of soft drinks. In Great Britain, the company offers over
20 brands (nearly 80 products), including Oasis, Sprite and, of course, its best seller, Coca-Cola.
It sells a range of products to meet a broad range of consumer needs. The Company and its
subsidiaries employ nearly 34000 people around the world. Syrups concentrates and beverage
bases for Coca –Cola, the flagship brand, and over 230 other soft drink brands are manufactured
and sold by the Coca-Cola Company in nearly 200 countries around the world.

Coke and Sri Lanka

In Sri Lanka, the brand debuted in April 1961, when Coca-Cola was introduced in 300-millilitre
packs. Since then, Sri Lankan consumers have embraced Coca-Cola as their favorite soft drink,
and the popularity of the brand and its sales have enjoyed rapid growth. The local operation set
up new production facilities with modern technology in Kaduela and Biyagama to meet the
increasing demand. Emphasizing the need to provide an ice-cold Coca-Cola, the Sri Lankan
operation introduced Visit Coolers for the first time in 1990. This was followed by the launch of
Coca-Cola in 175-millilitre packs, in February 1993. This pack grew in popularity and volume,
as it addressed the vital need for affordability. Today, the pack is fondly known as the Buddy
pack. With more consumers embracing Coca-Cola, the packs have grown to also include take-
home versions.

Coca-Cola beverages Sri Lanka ltd (CCBSL), located in Biyagama 18 Km north-east of

Colombo, is the only Coca-Cola bottling plant in Sri Lanka.

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It has 443 employees. The company operates through a distributor network approximately 70
distributers, who distribute the product across the country through an indirect distribution
system. Coca-Cola beverages Sri Lanka was formed in March 1995, under the name pure
beverages company ltd., through the acquisition of the Ceylon fruit drinks & Table Water
Company. The bottling plant was situated in heart of Colombo. Its journey with Coca-Cola in
1960, when the franchise agreement with the Coca-Cola exports cooperation was signed.

CCBSL produces and sells over 10-million unit cases of carbonated soft drinks (both still and
sparkling) per annum. It operates through a countrywide distributor network, consisting of about
128 distributors.

About the Minute Maid Brand

The Minute Maid Brand is owned by the Coca cola Company. This is the Natural Fruit and
vegetable soft Drink Sector of the Coca cola Company. It is the World’s Largest Market of
Natural Juices and Drinks. Minute Maid was the first company to introduce Natural Orange
juice. Now this Brand has become world famous and a Trusted Brand of the world famous Coca
cola Company. Already Sri Lankan Coke Company has introduced three main Fruit Juices which
are Mango, Orange and Apple.

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Introduction of the Carrot Juice

An Increasing Demand for traditional and in recent years for tropical juices has been observed
globally, with a corresponding growth in the juice Industry using different fruits and valuable
Ingredients with High technology in processing and packaging.

The world fruit/vegetable juice sector has encountered two diverse sources of growth. Many
developing markets have focused on products such as natural juices. This has become the Most
Dynamic one.

The juice sector mainly aims on a healthy life style of consumers and a better place for the
natural fruits and vegetables none other than artificial drinks like Cokes, sodas and many other
substitutes.

Carrot juice is produced by using Carrot, it is one of the best healthy drinks seen in other
countries. Carrot juice has a high content of B-carotene and high in Vitamin A, Vitamin B and
Complex Vitamins like Folate and also Calcium, copper, Magnesium, Potassium, Phosphorus
and High source of Iron.

For Women Carrot Juice is Very important for their Beauty. Especially it helps to give a Shiny
Golden Glow and make their skin soft and beautiful. And Carrot is used for lot of Beauty

Products like Face washes, Cream, Scrubs and even for Medicine.

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 Minute Maid Carrot Delight

Production Description

We have heard about Only Fruit Juices or Fruit juices Mixed with One or Two vegetables. But
our Product contains only 100% Vegetable which is carrot Juice and it is a RTD drink.

We are introducing Carrot Soft Drink (Minute Maid Carrot Delight) as a sub product of the Coca cola
Beverages Company. Coca Cola Company is well-known for soft drinks and other beverages in Sri Lankan
market. This Company is Popular for beverages presently include carbonated soft drinks and beverages known
in the whole world as energy drinks and natural beverages.
Carrot juice has a high content of B-carotene and high in Vitamin A, Vitamin B and Complex Vitamins like
Folate and also Calcium, copper, Magnesium, Potassium, Phosphorus and High source of Iron which can be
named as a Mountain of Nutrition’s. For Women Carrot Juice is Very important for their Beauty. Especially it
helps to give a Shiny Golden Glow and make their skin soft and beautiful.
MINUTE MAID CARROT DELIGHT will be a bottled beverage and will be positioned as the only “READY
TO DRINK” product available on the market. The beverage will contain Natural Carrot Juice base. It will
present itself as a natural, juicy, healthy and unusual alternative to traditional drinks while providing the great
taste of authentic fruit juice in an attractive and convenient packaging from the Minute Maid Family of Coca
Cola Company.

The Main Logo

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 Target Market

We plan to distribute MINUTE MAID CARROT DELIGHT among all the people living in all the provinces in
Sri Lanka which includes /more Targeted Specially Children and Women. Our main target market is the
population between the ages of 15 -45 (estimated as 15 million).The main reason behind this selection is that
women are so fond of the vegetable Carrot because it has lot of Nutrients which helps to keep them healthy and
beautiful by giving them a smooth, glowing and beautiful skin. And if we take young children it helps to give
them all in one Nutrients which is good for strong and healthy bones, immunization of blood and for the brain
because it is high in Iron, vitamins and Minerals.

Positioning Statement

MINUTE MAID CARROT DELIGHT, a drink to quench your

thirst of having a Beautiful Glowing Skin with natural
Carrot and a Mountain of Nutrients to make you feel fresh
and active.

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MARKETING PROGRAM

PRODUCT STRATEGY

1. The Core Product:

MINUTE MAID Carrot Delight ready to drink bottled Beverages.

2. The Actual Product:

 Branding: Orange and Green Colors to symbolize the colors of Carrot, The Square
shaped angle, Minute Maid logo, the wordings ‘A Delightful taste of Carrot’ which
gives the consumer a Delightful feeling, The funny Image of the Carrot which shows
how Strong it is(symbolizes the Nutrient inside the Product).
 Trade name: CARROT DELIGHT TM. A Coca cola product.
 Brand Personality: Nutritious, functional, original, Natural, healthy, etc.
 Brand Equity: Coca cola gives you the Fun and the Refreshing Experience through
their Beverages.
 Packaging and Labeling

3. Augmented Product:
 Nutritional information, status, Health Benefits of Carrot juice.

4. Marketing Considerations
Product Lifecycle: Carrot Delight is a low-learning product. With a strong marketing
campaign, “sales (will) begin immediately and the benefits of the purchase are readily
understood”.

5. Product Class:
 Food & Beverage > Soft drinks

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 6. Product Modification:
 Coca cola is introducing a Delightful beverage (Carrot Delight) with a new Taste,
New look and with a more convenient packaging system. Now Carrot Delight will be
widely available as a Coca cola Minute maid Beverage.

This is just an Ad

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BRANDING OF CARROT DELIGHT

A Brand is” an asset of differentiating promises that links a Product to its customers.”
It consists of all the relevant information relating to the product.
 Its own Brand Name (CARROT DELIGHT).
 The Colorful picture which explains the nature the drink Attractively,
 The Brand Logo (Minute Maid).

Values of the Product

 Brand of Coca cola (Minute Maid).
 Non Carbonated Drink Brand
 100% natural Carrot Juice.
 Health friendly product
 Popular brand image.
 Eye catching Colors and Image.
 A Popular Brand Image.
 Sri Lanka’s First Vegetable Juice.
 Natural, Healthy, Nutritious, Refreshing Juice.
 A Mountain of Multi Vitamins, Minerals and with more Nutrients.
 World recognized and Trusted brand.(Minute maid)
 Made out of Women’s best Friend (CARROT).

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 MINUTE MAID LOGO DETAILS OF THE COMPANY AND PRODUCT

QUANTITY 200 ml SLS QUALITY CERTIFICATION

CONTENT OF CARROT JUICE

COCA COLA BRAND

READY TO DRINK CARROT JUICE PRICE AND THE EXPIRE DATE

NUTRITION FACTS

CARROT DELIGHT MAIN LOGO

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 PACKAGING OF THE
CARROT DELIGHT
BEVERAGE
The main purpose of this Packaging
system is to protect the product and
make it convenience for the
Consumer to carry easily with the
light weight and tightly closed cap.
The Attractive look of the bottle with
the Funny Image and eye catching
colors makes the Product more
Valuable.

To produce this bottle they have used

Recyclable and Re-usable Plastic. As
this is Coca cola (Minute Maid)
Brand’s First Vegetable Beverage,
they have used a Different kind of a
Packaging to make it more special
and attract the Consumers which is
important for the product to reach
towards them to enter the Market.

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 PACKAGING OF THE CARROT DELIGHT

 Looks Attractive with the colorful appearance.

 Product is visible, so that consumers can easily see the inside.
 Flexible.
 Reseal able, with the tight cap.
 Recyclable.
 Impacts.
 Shatter proof.
 Easy to carry with the light weight.
 Symbolizes the Natural Color of Carrot through the Package.

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 PRODUCT PRICING

Cost Estimation of the Product CARROT DELIGHT

Per unit/bottle

Estimated selling price Rs 50

Direct variable cost

100% pure Carrot Rs 12

Sugar Rs 5

Stabilizers (440) Rs 2

Acidulates (330,226) Rs2

Permitted color (160d) Rs 2

Carbonated water Rs 3

Direct labor cost Rs 2

Direct other cost

Packaging Rs 3

Labeling Rs 3

Fixed cost

Production overhead cost Rs 3

Non production overhead cost Rs 3

Total manufacturing cost (per unit) Rs 40

Profit Margin 10%

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Pricing Methods

Cost based pricing

We have set the price Regarding the Variable and Fixed Costs Incurred in our Product. The
Reason of using cost base pricing for the product is that it involves determine and attribute total
cost relating to the product and it ensure that product will cover all the cost incurred in
producing and delivering product through adding profit mark up to it.

Competitor based pricing

Competitor based pricing is regarding the other competitors of our Product. After the
introduction stage we hope to introduce a price which can beat our dominant players in the
market. Therefore we have planned to move from cost based pricing to competitor based pricing.
Customer perception is important when pricing the product according to the competitor price.

PRICING STRATEGIES
When coming to the Pricing Strategy we used the Skimming pricing Strategy because at the
Introductory Stage we thought to add the price a higher. The cost Incurred was Rs 40 and we are
selling it for Rs 50. The reason for that is Carrot is a bit Expensive Vegetable and it is the only
high branded Vegetable Health Drink introduced to the Sri Lankan Market. And also we hope we
will be able to get a Huge Demand Specially from Women because it has a lot of Vitamins and
Minerals which helps to get a Glowing Skin and also it is good for children who hate to eat
carrot and because of that they are not getting a high source of Nutrients so it is a good news for
Everyone.

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 External influences on pricing

1. Demand and elasticity, price sensitivity

2. Channels of distribution
3. Competitor pricing
4. Sales taxes and VAT
5. Marketing strategies
6. Types of customers
Pricing objective

Maximize current revenue

The main objective of our product is to maximize sales revenue The revenue maximization will
leads to achievement of overall marketing objectives of profit maximization and market share
growth.

Maximize current profit

Maximize the current profit by estimating the demand and cost associated with alternative prices
and choose the price that maximizes profit.

Maximum sales growth

Maximize sales units will be the next main Objective of our Product.

MARKETING CHANNELS/ PLACES

“The place is where you can expect to find your customer and consequently, where the
sale is realized. Knowing this place, you have to look for a distribution channel in order to
reach your customer.”

Place is also known as channel, distribution or intermediary. So marketing channel is interdependent

organization involved in the process of marking a product or service available for use of consumption by the
consumer or business user.

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 Basic channel decisions

1. Direct or Indirect channels

2. Single or Multiple channels.
3. Cumulative length of the multiple channels.
4. Type of intermediary.
5. Number of intermediary at each level.

Among these we used DIRECT AND INDIRECT channels to Distribute CARROT DELIGHT as it is
a normal Consumer goods which is used as a Beverage for Last consumption. For that we use the
Whole seller and the Retailer to distribute our Product.

WHOLE
SELLER RETAILER CUSTOMER

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 DISTRIBUTION SRATEGIES

There are 3 main Distribution Strategies.

1. Intensive.
2. Selective.
3. Exclusive.

CARROT DELIGHT will be available in many places like Normal Retail shops, super markets
and other places that sell beverages. So customers can buy our Product easily. According to that
we selected the INTENSIVE DISTRIBUTION STRATERGY for our product. Availability
and convenience is very important because we are Aiming Customers, so their Satisfaction is
more important.

PROMOTION STRATEGY

Objectives:

 Our main objective is to make the awareness of our Product among the ages of 18 to 45
Girls and women and also overall everyone who cares about Healthy Beverages.
 To become the best Healthy Drink among other functional Drinks like Berri, Sunquick,
Smack, etc.
 To become the best one and only Vegetable Beverage in Sri Lanka.

Promotional Message to the Consumers and others:

The promotional outputs will convey that “CARROT DELIGHT is a healthy Drink with
a High source of Vitamins, Minerals, Iron and more Nutrients, which is good for Young
girls, mid age Women who are concerned about their health and beauty and for all who
loves Carrot.

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Concepts

 Be Delightful with the Creamy, Tasty and Nutritious Carrot Delight.

 Be healthy and Beautiful with Carrot Delight.
 A good source of Delightful Experience for your Mind, Body and Soul with Carrot
Boost.
 ADVERTISING
1. Television- DERANA,SIRASA TV,ITN,TNL,PRIME TV
2. Radio channels-Y FM, NETH FM,SIRASA,SRI FM,E FM,YES FM
3. Internet- www.cocacola.lk, Face book, other internet sites.
4. Magazines- LMD,Women,Tharunaya
5. Newspapers-LAKBIMA, SILUMINA LANKADEEPA, RIVIRA,
SUNDAY OBSERVER, SUNDAY LEADER, SUNDAY TIMES,
DIVAYINA.
6. Personnel selling-Direct Contacts with Retailers.
7. Outdoor Ads- Banners and Posters, Billboards and Prints near Campuses
and On Buses and Bus halts,
8. Special Displays for different events like Sports events, Exhibitions,
School Events. And many more.

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 Promotion Mix

Consumer Oriented:

1. Contests:
 Send 3 Labels of Carrot Delight and win a Trip to Singapore for 3 days and 2 nights.
 SMS the code underneath the Cap of the CARROT DELIGHT bottle and win a chance to
meet Angelo Mathews and win exciting gifts.

2. Samples:
Let the Consumer experience the taste of the product by Distributing Samples at Super
Markets, near Schools, universities and shops. This can help to enter the market and
attract customers to buy our product

3. Others:

There is a new trend in Promoting the Products in the Market buy advertising
their Products in Music Videos which is specially seen in Beverages.

Trade Oriented:

1. Discounts:
By giving Discounts to the Retailers can help to encourage them to
buy/Involve the Product

2. Cooperative Advertising:
To encourage retailers to buy our product by maintaining a high level of
advertisement Schedule.

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APPENDIX
 www.google.com
 Coca cola company Employer-Miss Damayanthi Hewabowala
 www.cocacola.lk
 Marketing Manager of Coca cola Company.
 News Papers-Sunday Times and Sunday Observer.

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