Launch of Green cola Part ii ( submitted at S.P.Jain)

INDIVIDUAL REFLECTIVE PAPER – STRATEGIC BRAND MANAGEMENT??

TABLE OF CONTENTS:??

1.How to increase Market share, focus on Asia – Taiwan, South Korea, India??

2.Global Trend for non-aspartame zero calorie sodas.?

3.Brand Audit: Use of social listening tools. (Use of Brand Audit &CBBE model)?

4.Landscape competitive analysis.?

Coke Zero, Pepsi?

5.POP/POD analysis?

6.Positioning statement for green cola?

7.Identification of Target audience.?

8.Brand Ladder Process?

Page 2?

As the Asia pacific brand manager, you must increase market share of the company with a focus on Asia.??

Countries in Asia Pacific will be growing fast. 87% APAC consumers are taking all measures to reduce or moderately consume products that contain sugar.?

66% of APAC are concerned with obesity. Likewise, 66% of the population are concerned with Diabetes (source: Global data consumer survey – 2019)?

Taiwan was among the few countries which continued to grow primarily since there was a global demand for its technological exports despite the Pandemic. Taiwan supplies hardware products to companies overseas.??

The Country’s overall economy has seen year on year growth for the last 2 decades with a GDP (Gross Domestic Product) per capita of $ 59573 in 2021. Hence if Green Cola has the bandwidth, then we want to launch in Taiwan and South Korea simultaneously.?

Coke has faced some issues in Taiwan with regards to methylparahydroxybenzoate being present in a batch concentrate of coke, back in 2011, however all batch concentrates have not had this problem.?

Hence at Green Cola if we can achieve stringent quality standards, we can aim to Launch in Taiwan even before the mainland (China) since China faces supply chain issues due to stringent government interventions to keep the country Covid Free.??

South Korea. Launch of Green Cola: Facts and Statistics??

?Population 50 million??

Fourth largest economy in Asia and 12th. largest in the world.?

Marketing objective of Green Cola: As a Brand Manager for Green Cola, it is critical to ask the Question Where do we want to Go???

The Answer is We are clear in our mind that as part of the Marketing Mix, we want to launch Product Green Cola in South Korea Home plus stores, start off with an online presence??

Reference: https://en.wikipedia.org/wiki/Homeplus.?

Details received on their website https://front.homeplus.co.kr/search?entry=direct&keyword=coke%20zero.?

Screenshot was shared for sake of details?

Online Research at HomePlus store – South Korea on Coke and Pepsi alternatives like Coke Zero, Coke Zero sugar are detailed in the grid below. (From the screen shot above)?

HOMEPLUS STORE - SOUTH KOREA: Data from online - 11th.Sept 2022?

Interestingly people in Seoul- south Korea are still consuming Pepsi regular which has sold 7003 cases (HomePlus has its headquarters in Seoul)?

The Next question which we need to address is How do we get there (South Korea – HomePlus stores – online/ ecommerce).?

?As the Asia Pacific Brand Manager for Green cola, it is important that I carry out the Market Analysis in South Korea – evaluate the 4C's??

About the Company: Green Cola was launched in Greece in late 2011. The Company has extended its operations to Cyprus, Estonia, Germany, United Kingdom, Spain, Latvia, Lithuania, Malta, Romania, Middle East, Slovenia, and Poland??

?Customer Segmentation in South Korea:? The consumers in South Korea are highly educated, having a better standard of living and prefer healthy and nutritional non-carbonated drinks. According to a Nielsen report family in South Korea are making 6% less shopping trips to retail stores to buy groceries because of the pandemic. South Koreans spend 2193 annual hours at an average working and since they have long hours at work, they prefer to purchase weekly groceries online.?

?HomePlus in South Korea is the second largest retailer, a Korean discount store having 140 stores, use Technology as a marketing tool to reach their target customers??

Target: Working population in Seoul who are increasingly taking interest in being health conscious, are nutrition driven, this helps to drive the market for Green Cola in South Korea.?

The current belief is that all Cola beverages are the same.?

Current Actions: Currently, South Koreans are buying drinks that are manufactured by Coke, Pepsi that have very less sugar or regional brands that support non aspartame claims for the nutrition conscious customer?

Message for South Koreans: Green Cola does not have sugar, artificial sweeteners, calories. The beverage is sweetened with the help of stevia extract which comes from a plant and hence natural.?

Desired Belief: Green Cola is better than Coca Cola and Pepsi having less sugar or less calories like Coke Zero or Coke Zero sugar or any other regional beverage with Non aspartame claims?

Desired Actions: Consumer beliefs are extremely hard to change Various actions must be taken by the Brand manager to bring about a change in behaviour of a consumer who has an attitude and habit of being brand loyal to either Pepsi or Coke and are now drinking these beverages with lower sugar content. He needs to run regular promotions on weekends sampling of green cola in HomePlus brick and mortar stores and other Malls since South Koreans shop on weekends to build relationship with new customers regarding his brand by creating awareness that stevia is a natural sweetener compared to Coke and Pepsi that still contain some amounts of sugar.??

Targetting health-conscious individuals in south Korea we need to build the emotional connect that green cola is a health beverage and can be consumed by all. This is how the emotional connection can be built; brand manager must address the rational and emotional reactions of consumers to Green Cola to reach the final stage of Intense and active Loyalty.?

We can even apply the Theory of Reasoned Action in this context. It is important to consider the attitude of the target customer and peer pressure to purchase Coke or Pepsi (subjective norm).?

Hence, we can safely say that Intention to buy Green Cola by a South Korean will depend on his beliefs and attitudes plus the subjective norm (what will his friends think of him if he switches to green cola when launched.?

Hence attitude = Belief + effect + Behaviour in short Attitude will drive purchasing intent of the target customer??

Once Green Cola has been introduced in south Korea after 1 year the Brand Manager may want to carry out online research or research with the help of a Market research agency and apply the Know, Accept, Like, Love, Exclusive love Model?

Know / Awareness after 1 year – 20 – 30%?

Accept – 25%?

Like – 20%?

Love – 10%?

Exclusive love – 5%.?

This Model will be more suitable in countries where Green Cola is already a dominant player in the Cola segment like in Greece, UAE etc.?

?

Brand Attributes: Green Cola??

The stevia sweetener used in green cola is natural because it is obtained from a South American shrub which has been used as a commercial sweetener in Japan and other countries in Asia. Hence Asians are familiar with stevia as a natural sweetener and will like the taste once green cola is launched there. We will also have to develop different flavours of Green Cola suitable for the Working consumers in South Korea.?

As a Brand Manager of Green Cola, I will need to meet with Home Plus ‘Retail category management team, make a presentation on all the Benefits of Green Cola.?

Discussions and Negotiations conclude with the Terms of Trade drawn up between Green Cola and HomePlus?

Margin Percentage to be paid by Green Cola to HomePlus?

Placement of Green cola in HomePlus virtual stores, consumers must scan the QR codes with the help pf their smart phones and groceries along with green cola will get delivered to their homes. HomePlus has reported that they receive enormous number of orders at 10am and 4 pm when busy South Koreans are either going or returning from work.?

To fix promotions and pricing strategy it is important to study the promotions that Coke and Regional brands are carrying out online, along with their pricing strategy??

As the Brand manager selling green cola in HomePlus’ virtual stores in South Korea helps to reinforce the value proposition and Image perception that the south Korean consumer holds in his mind. Along with extreme convenience HomePlus can hold onto its consumers by providing easy to use technology, excellent quality of products and mostly same day delivery services to households in South Korea.?

Setting the context (Pestle): Technological + Social?

• According to a Mckinsey report broadband penetration is exceedingly high in South Korea.?

• One among every 5 south Koreans use a smartphone, there are 10 million smartphone users in South Korea.??

• The customer in South Korea prefers multichannel – online and mobile seeking convenience more than lower prices.??

?

Global Trend for non-aspartame zero calorie sodas.?

Globally consumers want to move away from aspartame, they want natural products with no sugar because they are health conscious and are worried about diabetes and obesity.?

NEW ZEALAND is the first country to launch 100% stevia sweetened coke?

SOUTH KOREA: Regional beverage players: Clearly shows how consumers in south Korea are moving towards non aspartame beverages to be healthy, fit. This also indicates that green cola will fit very well targeting the health-conscious individuals in south Korea?

Company: Lotte Chilsung??

Cham doo – cereal drink made from 15 grains.?

Dynamic energy drink???

Company :Iihwa Co.?

Ginseng up: ginseng infused health drink?

Hong gee won Juice made from Yong gee mushroom.?

Hi sec grape and orange juices with fruit pieces??

Coke can use a specific part of the stevia leaf as a sweetener which results in a great tasting beverage with a clean aftertaste???

UNITED KINGDOM: COKE LIFE?

Coca Cola has scrapped low sugar coke life in United Kingdom after sales of green cans and bottles started to decline. This drink has half the sugar of full fat Coca cola will stop selling in the UK market from June 2017.?

Coca cola Life was discontinued in many countries in 2020 due to inferior Sales performance. The beverage was sweetened with a combination of stevia and sugar to create a clear demarcation between sugar and sugar free options.?

?

2.Brand Audit: Use of social listening tools.?

2a Google Trend: Sale of Green cola globally?

Greece (country of origin, UAE, Albania, Cyprus, Slovenia top 5 countries selling green cola globally.?

In these 5 countries we are also able to calculate the Customer Lifetime Value =?

Average order value X Purchase Frequency Rate X Average Customer Lifetime. (Since there will be customers purchasing Green Cola for many years, almost 11 years in case of people in Greece).?

In these countries, the Brand Manager will focus on Customer Relationship Management to keep customers who will purchase and rebuy leading to brand Loyalty. Customer is an Asset for the Brand. You simply do not lose a customer, but Customer Lifetime Value associated with the customer. Hence CLV is an exceptionally good indicator of Brand Equity.?

?

Google Trends – Coca cola zero sugar and Pepsi zero sugar trend has been captured worldwide. Sales of Coca cola zero sugar are higher than Pepsi Zero sugar worldwide.?

? 2b on social searcher.com?

Mentions for Green cola is 612. Users: 349.Sentiment: 9:1.?

One tweet posted on September 4, 2022, said that taste and benefits of green cola come from natural ingredients Sweetness comes from stevia??

Sentiment Analysis: Helps us as the Brand Manager to understand customers’ emotions with respect to Green Cola??

Positive 231 (38% of total) (The customer is aware, accepting and satisfied with Green Cola),???

Negative 27 (4% of total) The customer is dissatisfied and will not accept Green Cola as a substitute. They are Brand loyal to Pepsi or Coke??

Neutral 354 (58% of total).??

The Neutral sentiment expressed by the consumers are indicative of the fact that 58% of the total consumer base that tweeted on Green Cola are not very aware of green cola beverage in the market and the salient features of the Brand.??

These people are at the lowest stage of Brand positioning & Values???

The Brand Manager needs to check out 354 consumers to see if they fit into his target base. The Brand manager can invite these 354 consumers to a mall at the weekend and do a free sampling offer of Green Cola or get them to try the brand at a discounted price.??

Alternatively, he can even send an online Google/ Microsoft survey to these consumers with a promised home delivery of 4 bottles of green cola (number of bottles will depend on family members who are willing to try out a new Healthy Beverage. An avid Coke or Pepsi user will find it difficult to switch to green cola because of the taste??

The Positive response of 231 respondents should be Analyzed by the Brand Team at Green cola to affirm that the Target audience that the Brand manager has created for his brand, if any of them qualify to be in the target audience since they are already consuming Green Cola??

?

2c. To measure social norm impact as a brand manager we carry out Sentiment analysis on?? https://www.csc2.ncsu.edu/faculty/healey/tweet_viz/tweet_app/?

We type green cola in keywords. There are 166 positive tweets, sentiments expressed indicated by words like calm, relaxed, serene, contented by consumers who like drinking green cola.?

Tag Cloud also shows some positive responses like green cola is a responsible company trying to save the environment.?

Timeline Evaluation shows that there are 166 tweets on green cola, consumers have posted relaxed and happy tweets, the green bars indicate the emotions that the consumers are happy and relaxed from September 1st to September 6 and on August 30 there are 6 unhappy customers who have tweeted about Green cola and 9 unhappy customers who have tweeted on September 6, 2022.?

Brand Manager should ensure that these negative tweets about Green Cola should not increase. He must take concrete action to appease people who have negative things to say about Green Cola, this will hurt the image and brand perception of Green Cola??