kik cola marketing Communication planing,

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KIK COLA
Prepared By
P.T.M.Subasinsana
Reg.No. D116S33-1
Synergizing Marketing Communication- Managerial Level
June 2012 Examination
Diploma in Marketing
SRI LANKA INSTITUTE OF MARKETING
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Contents
1.Executive Summary ............................................................................................................................. 3
2. Background ......................................................................................................................................... 4
3. Segmentation, Targeting, Positioning Analysis .................................................................................. 6
5. Marketing Communication Strategies ................................................................................................ 8
5.1 Strategy 1 ...................................................................................................................................... 8
5.2 Strategy 2 ...................................................................................................................................... 8
6. Key Message ....................................................................................................................................... 8
6.1 For Strategy 1 ................................................................................................................................ 8
6.2 For Strategy 2 ................................................................................................................................ 8
7. Communication Mix ........................................................................................................................... 9
7.1 For Strategy 1 ................................................................................................................................ 9
7.2 For Strategy 2 .............................................................................................................................. 10
8. Budget ............................................................................................................................................... 11
9. Promotional Time Table/Schedule.................................................................................................... 13
10. Measures of Performance................................................................................................................ 15
10.1 Controls/Evaluations ................................................................................................................. 15
10.1.1 Quantitative Measures........................................................................................................ 15
10.1.2 Qualitative Measures.......................................................................................................... 15
11. Conclusion ...................................................................................................................................... 16
12. Reference ........................................................................................................................................ 17
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1. Executive Summary
KIK cola is a carbonated drink and it is a kind of a cola introduced by Elephant house.KIK
cola come up with a unique design both buddy and pet bottles. In order to increase sales KIK
cola marketing team needs to define anintegrated communication plan.
KIK cola is segmented toyounger and younger adults’age between 10 to 35 and both male
and female.And also KIK cola can further segment to middle and upper social classes. It is
targeted through mass distribution (undifferentiated targeting strategy). To give a KIK cola to
superior image in consumer mind KIK cola position as “Lankan to the last drop”.
Corporate, Marketing and Marketing communication objectives set in order to develop a
communication plan. When setting objectives KIK cola marketing team developed marketing
and marketing communication objectives for both consumer and trade. There are two
strategies used in the communication plan. Push strategy for consumers and Pull strategy for
trade.They set 60% for push strategy and 40% for pull strategy from overall promotional
budget.
Communication mix uses for both consumer and trade in the communication plan.They use
advertising, public relation, sales promotion and personnel selling communication mix
elements for consumers and advertising,direct marketing, sales promotion and personnel
selling communication mix elements for trade as well.
They set the Rs.30 million budgetfor this communication plan. When setting budget it is
assumed that 14% of the total net profit is allocated to the marketing communication
budgetPeriod of the budget is from 1st of January to 31st of December in 2013.Most portion of
this budget isacquiredby TV advertising.They useobjective and task method for setting the
advertising budget.
To evaluate the performance of the campaign they have to measure qualitative and
quantitative measurements. ROI, ROCE and Variance analysis, increase sales volume and
gained market share are quantitative measurements and Market research, focus groups,
feedback from the company website, feedback of the customer about the KIK cola are
qualitative measurements are being used to evaluate the this communication plan.
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2.Background
Late in 2010, One of Sri Lanka’s most respected iconic indigenous soft-drink manufacturer
elephant house launched a new cola called KIK cola. The drink, which was launched after
much preparation, had gone through heavy research and development and has successfully
passed all the market tests.
KIK cola is a carbonated drink like most of elephant house drinks. But this is an unique drink
from other elephant house soft drinks because this is akind of a cola .KIK cola come up with
a both buddy and petbottles and is competitively priced, adding that the unique bottle design
alone will add to a brand new experience.
KIK Cola has been positioned directly to represent their iconic status and aspirations of the
youth. And also elephant house wanted to position their cola as onewith an international
class flavor and boast of strong local values .KIK cola tag line is “Lankan to the Last Drop’”.
After elephant house introduced KIK cola they could distribute it over 90 000 outlet in the
island. Their sales wereover one million liters within a few weeks.
They have taken the best possible approach even in producing their communication
campaign, which has been possibly one of the biggest productions that Sri Lanka has seen
thus far – a world class television commercial – including over 800 artistes and highly
acclaimed creative and production support. And also they considered a well-planned 360
degree communications campaign; the public over the past month have been spectators to
over 120 innovative hoardings and eye-catching shop branding, which clearly emphasize
their presence in the market. In addition to that Many more social events has done to build
that youth culture associated with our brand and we invite them to join this culture and
experience the world of KIK.
As one of the biggest ever national launches of a local brand, KIK Cola is now expected to
throw a fresh challenge at its multi-national competitor.
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2.1 SWOT Analysis
STRENGTHS WEAKNESSES
More than 100 years of company Negative publicity
heritage Decline in taste
Sri Lanka Leading Soft drink
producer
Well trained expert staff
Large Loyal Customer Base
OPPORTUNITIES THREATS
Social Media marketing –Facebook Increase Multinational companies
Market expansion in globally competition
Sponsor in many sports events Increase Socio cultural problems for
this kind of soft drink
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3. Segmentation, Targeting, Positioning Analysis
3.1 Segmentation
3.1.1 Demographic
 Gender – Male & Female
 Age - Between10 to 35
 Income – 25000 upwards
3.1.2 Psychographic
 Lifestyle – Teenage
 Social class – middle &upper
3.1.3 Behavioral
 Occasion - Parties,Weddings,Meetings
 Benefit Sought by consumers
3.2 Targeting
3.2.1 Targeting strategies
Undifferentiated marketing Strategy (Mass)
Undifferentiated marketing relies on mass distribution and mass advertising,
aiming to give KIK cola to a superior image in the minds of consumers.
3.3 Positioning
Position KIK Cola as one with an international class flavor and boast of strong local
values – it is in this effort that the KIK Cola brand name as well as the tag line of “Lankan to
the Last Drop”.
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4. Objectives
4.1 Corporate objectives
To Establish the KIK cola as the leading brand of soft drink in Sri Lanka end of 2013.
Direct Potential to highest potential areas across the different markets.
To give creativity and excitement in order to generate growth across all channels.
4.2 Marketing Objectives
4.2.1 Consumer
Increase market share by 5% per annum
Increase potential customers by 10% within next year.
Increase existing customers’ usage by 20% within next year.
Increase sales by 2% within first 6 months in 2013.
4.2.2 Trade
Increase potential distribution by 15% within next year.
Increase existing distribution by 20% within next year.
4.3 Marketing Communication Objectives
4.3.1 Consumer
Reposition brand as younger and fun.
Increase the brand awareness by 80%of the target customers within 2013.
Secure Brand preference among consumers
4.3.2 Trade
Increase brand loyalty and trust using below the line promotions.
Educating the trade and increasing the distribution
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5. Marketing Communication Strategies
5.1 Strategy 1
Pull based strategy -: To create brand awareness amongst the target group
(Youngers and younger adults), stimulate the interest and demand for the
product at the end user level pull based strategy will be used.
5.2Strategy 2
Push based strategy -: To increase new channel / intermediaries and to
create loyalty and trust among trade push based strategy will be used. In
addition to that the company promotes the product to its channels who in turn
promote it to another channel or tofinal consumers.
6.Key Message
When developing the key messagein integrated marketing communication,according to the
each strategy should carefully select appeal, structure and source to give unique idea to the
target audience.
6.1 For Strategy 1
 Appeal -: Rational appeal is being used. This focus on consumer’s functional,
utilitarian or practical need for particular product. Here product is KIK cola.
 Structure -: “Action to take”message structure will be used.
 Source -: Typical persons(modelers) are used for delivering the message
6.2 For Strategy 2
 Appeal -: Emotional appeal is being used. This focus on here emotional factors such
astrust
 Structure -: “Proof of the claim” message structure will be used. For these structure
testimonials, samples, demonstration can be used.
 Source -: Industry Experts are used for delivering the message.
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7.Communication Mix
7.1 For Strategy 1
 Advertising-: Advertising communication mix element is more important to create
brand awareness and recall the product.
Press advertising -: Advertise Sri Lankan newspapers such as “Tharunaya”
,”Tharuni” and “Go” Magazine.
Billboards – Traditional billboards
Banners –Pubs, Clubs,Buses
ATL-(TV Advertising) -: Sri Lankan channels such as Sirasa,Swarnawahini.
Social media advertising-: Facebook,Twitter,
 SalesPromotion -:Sales promotions are used to create interest, to provide
information about the product and also reinforce the brand.
Sampling -: To get the chance to consumer to trial the product who does not
have consume the product.
Discount price -: Get to know to customers low prices products are released.
This can be done specially in seasonal time.
 PublicRelation -:public relation is to influence specific decision makers to buy
more products and also to reach out to the stakeholders.
Events -: Young activities such as Musical shows, Camps
Sponsorships- Sports, Films ,Visuals
Charity
 PersonnelSelling -:Personal selling means when a customer and supplier meet face
to face to complete the transaction. Sales message can be specially targeted to
individual’s prospect.
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7.2 For Strategy 2
 Advertising-: Advertising communication mix element is more important to
stimulate interest among trade along with sales promotion such as trade
competition and in store support work.
 SalesPromotion -: Sales promotions are used to create interest, to provide
information about the product and also reinforce the brand.
Buying Allowance -: It is the discount for the purchase of promoted product
during the specified period.(period buying minimum quantity of product)
Incentives -: Incentives to the members of the trade including variety of tactics
such as travel, gift, cash bonus.
Sales Training Program-: Training programs for retail store persons.
Trade shows -: products are displayed and demonstrate members of trade.
 PersonnelSelling -: Personal selling means when a customer and supplier meet face
to face to complete the transaction. Sales message can be specially targeted to
individual’s prospect.
Internal selling -:product to the existing customer
Entertaining -: Give the trader to opportunity come to hotel for lunch or later
and introduce a product.
 DirectMarketing -:Selling the product directly to the trade.
Direct Mail -: To keep dear informed and updated with news and to get
information about the market.
Telemarketing -: Provide sales ordering route to trade members.
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8. Budget
Activity Amount(Rs)
Advertising 9,800,000
Buying Allowance 900,000
Incentives 700,000
Trade
Sales Training Programs 400,000
Trade shows 400,000
Personnel selling 500,000
Direct Marketing 700,000
Press Advertising 1,150,000
TV Advertising 10,250,000
Online Advertising – (Facebook,company 350,000
website)
Banners 675,000
Consumer Bill Boards 1,075,000
Sampling 300,000
Discount price 600,000
Events 700,000
Sponsorships 400,000
Charity 300,000
Personnel selling 800,000
Total 30,000,000
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Budget will be determined on objective and task method. Table in the below describes
percentages of the budget allocation to push and pull strategy in 2012 as well as 2013.
Strategy 2012 2013
Pull 70% 60%
Push 30% 40%
Total 100% 100%
It is assumed that 14% of the total net profit is allocated to the marketing communication
budget.
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9. Promotional Time Table/Schedule
Activity Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Trade X X X X X X X X X X X X
Advertising
Buying X X X X X X X X X X X X
Allowance
Intensives X X X X X X X X X
Sales X X X
Training
programs
Trade X X X
Shows
Direct X X X X X X X X X X X X
Marketing
Press X X X X X X X
Advertising
TV X X X X X X X X X X X X
Advertising
Online X X X X X X X X X X X X
Advertising
Banners X X X X X
Bill Boards X X X X X
Sampling X X X X X X X X
Discount X X X X X
Price
Event X X X X
Sponsorship X X X X X X
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Charity X X X X
Personnel X X X X X X X X X X X X
Selling
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10. Measures of Performance
10.1 Controls/Evaluations
10.1.1 Quantitative Measures
Quantitative measures rely primarily on as the main unit of analysis. Quantitative measures
based on marketing objectives. There are some of quantitative measurement are given below.
Return onInvestment (ROI) -: This is used to evaluate efficiency of an investment or
compare the efficiency of a number of a different investment.
ROI= (Gain from Investment – Cost of Investment)
Cost of Investment
Return on Capital Employed (ROCE) -: This is used to measure efficiency and
profitability of capital investments.
ROCE = EarningsBefore Interest and Tax
Total Assets - Current Liabilities
Increase Sales Volumes
Gain Market share
10.1.2 Qualitative Measures
This is focused on the non-numerical data. Qualitative measures investigates why and how
the decision making of consumers.Informal feedback through the sales force and formal
measures of customer satisfaction will be conducted and analyzed.
Focus Groups -: This is used to evaluate key variables such as awareness level of a
brand, Perception of the brand.
Market Research -: This is used to evaluate performance of campaign of consumer
market.
Feedback from company’s web site.
Feedback from customers about the product.
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11. Conclusion
This communication plan is outline for 2013 year. And alsothis plan will be updated each and
every year. Using this communication plan elephant house can archive its objectives by
improving KIK cola consumers and developing distribution in Sri Lanka.
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12. Reference
(n.d.). Retrieved from KIKCola: http://www.kikcola.lk/
(n.d.). Retrieved from Elephant House: http://ccs.lk/
CLow, K. E., & Baack, D. (n.d.). Integrated Advertising,Promotion and Marekting Commnication.
Dorling Kindersly india.
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