To: Festus
From: Harry
Subject: Develop a coherent marketing mix for a new product or service
Date: 12/05/2016
In this assignment I am going to create a coherent marketing mix for a new product. The
product I have created is intended for Coca-Cola to adopt, Coca-Cola Energy is standard
cola with added caffeine.
Level 1 - The core product or benefit of the product is the added caffeine. Caffeinated soft
drinks are popular with young teens as they give extra energy that can help while playing
sports or other physical activities.
Level 2 - The actual product will be very similar to regular cola in taste, looks and branding
but with extra ingredients and a different name. The product needs to be kept similar to
regular cola to attract loyal customers and keep the brand's history.
Level 3 - This doesn't really apply to this product as delivery is dealt with by suppliers like
grocery shops and warranties do not apply to consumable goods.
The price of Coca-Cola energy should be the same as usual cola at first. This will encourage
customers who regularly buy normal cola to try the new product. It will also be competitive to
other similar products in the market to entice new customers. Once the product has been in
stores for a few months the price should be increased. The initial price will help to gain
market share for the product before gaining more profits with a higher price. This is called
penetration pricing, where a product is initially sold at a low price to gain market share before
the price is increased to gain profit.
Coca-Cola Energy will use an indirect method of distribution. The main place customers
purchase products in this market is from supermarkets, convenience stores or news agents.
Therefor it will need to be distributed to wholesalers as they will then sell it on to these
stores. Using indirect distribution will mean the control over price could be lost; unless it's
printed on the label, however it will mean that Coca-Cola’s profits will be predictable based
on the number of sales to wholesalers. The online presence for this market is also through
supermarkets. So Coca-Cola wouldn't benefit from direct distribution this way as the cost of
the delivery process could damage profit.
Coca-Cola Energy will be promoted via advertising and sales promotions, Coca-Cola are
already well known from their advertising through sponsoring large events, like the Olympics
and having celebrities like Taylor Swift endorse their products. It is important for Coca-Cola
Energy to be advertised on its own as well to gain sales for the product. This can be done
through different types of media like television, magazines, billboards and the internet. The
product can also be advertised with sales promotions, for example free samples given out to
people in high streets and in supermarkets. Sales promotions will help to gain a spike in
sales for the first few months the product is out, however with the use of other promotional
methods it should provide long term growth in popularity.
From: Harry
Subject: Develop a coherent marketing mix for a new product or service
Date: 12/05/2016
In this assignment I am going to create a coherent marketing mix for a new product. The
product I have created is intended for Coca-Cola to adopt, Coca-Cola Energy is standard
cola with added caffeine.
Level 1 - The core product or benefit of the product is the added caffeine. Caffeinated soft
drinks are popular with young teens as they give extra energy that can help while playing
sports or other physical activities.
Level 2 - The actual product will be very similar to regular cola in taste, looks and branding
but with extra ingredients and a different name. The product needs to be kept similar to
regular cola to attract loyal customers and keep the brand's history.
Level 3 - This doesn't really apply to this product as delivery is dealt with by suppliers like
grocery shops and warranties do not apply to consumable goods.
The price of Coca-Cola energy should be the same as usual cola at first. This will encourage
customers who regularly buy normal cola to try the new product. It will also be competitive to
other similar products in the market to entice new customers. Once the product has been in
stores for a few months the price should be increased. The initial price will help to gain
market share for the product before gaining more profits with a higher price. This is called
penetration pricing, where a product is initially sold at a low price to gain market share before
the price is increased to gain profit.
Coca-Cola Energy will use an indirect method of distribution. The main place customers
purchase products in this market is from supermarkets, convenience stores or news agents.
Therefor it will need to be distributed to wholesalers as they will then sell it on to these
stores. Using indirect distribution will mean the control over price could be lost; unless it's
printed on the label, however it will mean that Coca-Cola’s profits will be predictable based
on the number of sales to wholesalers. The online presence for this market is also through
supermarkets. So Coca-Cola wouldn't benefit from direct distribution this way as the cost of
the delivery process could damage profit.
Coca-Cola Energy will be promoted via advertising and sales promotions, Coca-Cola are
already well known from their advertising through sponsoring large events, like the Olympics
and having celebrities like Taylor Swift endorse their products. It is important for Coca-Cola
Energy to be advertised on its own as well to gain sales for the product. This can be done
through different types of media like television, magazines, billboards and the internet. The
product can also be advertised with sales promotions, for example free samples given out to
people in high streets and in supermarkets. Sales promotions will help to gain a spike in
sales for the first few months the product is out, however with the use of other promotional
methods it should provide long term growth in popularity.
