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Heather Aycock Paula Braden
Jennifer Jose Rachel McInnis
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Overview

• Key Marketing Challenge
• Environmental Analysis
• Marketing Goals Objectives
• Marketing Strategies
• Marketing Controls
• Financial Analysis
• Summary

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Key Marketing Challenge
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• Increase market share in the beverage industry
• Address consumers needs for a nutritious
  flavored drink by offering the following
  product attributes
• low calorie
• non-carbonated
• caffeine-free
• calcium-enriched
• Increase knowledge of health issues concerning
  calcium deficiencies

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Internal Analysis
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• Mission To provide an alternative source of
  calcium by offering a nutritious healthy flavored
  drink at an affordable price.
• Manufactured by Kraft
• Line extension of existing product

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External Analysis
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• Immense amount of competition of beverage
  industry
• Highly Segmented Markets
• Direct Competitors
• Kool-Aid
• Country Time
• Gatorade
• Indirect Competitor
• Soft Drinks - Coca-Cola
• Juices - Minute Maid
• Milk Water

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U.S. Per Capita Beverage Consumption
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Source Beverage Digest
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Customer Environment
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• Potential Customers - all health conscious
  individuals
• Targeted Demographics
• Women ages 18 - 65
• Educated
• Middle Class
• Primary Grocery Shopper
• Year-Round Consumption with possible seasonality

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SWOT Analysis
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• Strengths
• customization
• four Cs
• Kraft

• Weaknesses
• convenience
• distinct target market
• weak market image

• Opportunities
• new uses of product
• aging population
• rapid growth in industry

• Threats
• Kraft brand competition
• increasing direct substitutes
• high failure rate

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Marketing Goals Objectives
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• Overall Goal To revive sales by increasing
  consumer awareness of our Better For You
  beverage.
• Major Objectives
• Gain product acceptance in 35 of our target
  market
• Increase current sales of Crystal Light by 6
• Increase share of fruit drink mix market to 20

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Marketing Strategies
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• Growth strategy Product development/Line
  Extension
• Involves the development of new products for
  existing markets to meet changing consumer needs
• Product
• Price and Place
• Promotion

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Product
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• Powdered Drink Mix
• 3 Refreshing Flavors
• 2 Convenient Sizes
• Benefits
• The 4 Cs

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Benefits of Calcium
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• Calcium is a mineral that primarily functions in
  your body by making bones and teeth hard. It
  helps muscles contract, blood clot, and helps the
  nervous system work properly.
• Reduces risk of osteoporosis
• Lowers risk of kidney stones
• Helps maintain normal blood pressure in pregnant
  women

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Price Place
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• Price
• Based on cost of production, including Research
  Development costs and demand estimations
• Psychological pricing strategy Odd-Even
• Price 2.99 and 3.29 per package
• Place
• Utilize current Kraft distribution channels
• Three state introductory roll-out

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Place
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Promotion
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• Promotion Types
• Advertising Womens television and magazine ads
• Sales Promotion In-store demos, free giveaways
• Public Relations Press releases, speeches,
  educational packets

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Promotion
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• Promotion strategy of Kraft as the manufacturer
• PUSH-PULL STRATEGY
• Push Use leverage of Kraft name to dominate
  shelf space cooperative advertising with
  retailers
• Pull In-store promotion through sampling,
  demos, free giveaways of shakable containers

Consumer
Kraft
Retailer
Pull
Push
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Marketing Controls
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• Pre- Implementation
• Ensure resources are allocated to top selling
  stores first
• Verify capital is available for the increase in
  expenditures for R D
• Actual Process
• Management commitment
• Follow Up

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Financial Analysis
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Summary
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• 90 of American women do not get their daily
  requirement of calcium
• 25 million American women suffer from
  osteoporosis
• Our hopes for the future

Southern Expansion (Market Development Strategy)
3 State Roll-Out in CA, FL, TX
Introduce new ad campaign
Convenience Product Development
Diversify Target to include Men
June 2002 Sept 2002
June 2003 June 2004 June
2005
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Questions ?