This is a business case about the launch of a soft drink. Written by Alfonso Gadea for Schweppes International. Only some data are real. See also part 1 and part 2.
4- Dealing issues with bottler.
How to sell it to the bottler:
- Schweppes Antiox is aimed to a need we hadn’t satisfied. Its launch leads to a higher share of throat and share of customer.
- Helps to develop a channel (Gym) and open new ones (Wellness centers, healthfood shops).
- Emblematic product to access current non buyers (future opportunity to sell tonic water and citrics).
- Strong brand support by advertising, refreshing global brand awareness.
- Makes Schweppes brand closer to today’s consumer aspirations and balances market penetration among women vs men.
- More profitable premium price product (consumer willing to pay up to 1.5 times the price of a regular drink) for customers and bottler.
- As it completes the brand portfolio it reduces logistics costs per case.
Proposal to trade
- Activation of POS: materials (quantities adjusted by the bottler).
- Presentation to sales teams and customers.
- Launching the product to all channels at a time. Niche -> image. Supermarkets -> awareness. On Premise -> trial.
- Samplings and parties in top-100 customers (chosen by the bottler).
- Competition among sales teams: win an anti-aging weekend treatment.
- Competitive pricing policy to customers during the launching (e.g. 50% off, sell one flavour, give the other for free; never leave it for free).
- Promotions to consumer:
o Home: Buy 1 flavour, get other free. Limited edition bottles.
o All channels (under the cap/ring): Send a SMS and win a SPA session for 2 people (immediate prize).
How to overcome portfolio issues with bottler (San Benedetto)
- Mineral and flavourde waters (San Benedetto, Primavera, Acqua di Nepi, Guizza, Vivia; Alice): Can be substituted by Schweppes Antiox at home with profit upgrading. On Premise only Alice is substitutive thanks to its elegant shape (PET) but again less profitable.
- Fruit drinks: Battik succoso (children), Tropico (still thirst-quenching –more similiar to Oasis-, not aimed to wellness care).
- Tea (San Benedetto, Guizza): as products may be substitutives but this is a familiar product while Schweppes Antiox is more for an individual and selfish use.
- Carbonated (San Benedetto, Guizza): big format, no worry, party cheap drinks.
- Camomile: baby drink.
- Aperitif Ben’s (bitter, ginger): different consumption time. Some habits to balance in the evening calmly with a Schweppes Antiox.
5 - How to measure success
- Brand awareness, preference and loyalty (TNS).
- Brand positioning: more modern keeping reliable (TNS).
- Advertising recordance (3CAT consumer tracking).
- Market share (Nielsen): total Schweppes brand among soft drinks and Antiox.
- Numeric distribution and, above all, weighted distribution (Nielsen).
- On Premise: number of references bought at the Top-100 (transactional data).
- Home: rotation, out-of-stock, linear centimeters.
6 - Support from the marketing teams.
Support from the global marketing team:
- All the research before, during and after the launch.
- Get the brand name and packaging designed.
- Choose materials, get its decoration designed and negotiate with suppliers.
- Work with the agency to find the core message and create the campaigns.
- Negociate with media buyers.
- Plan every activity (sampling, parties).
- Prepare the presentation to the bottler.
- Coordinate activities with the bottler (customer selection, daily data of the launching results).
- Measure success in person along with the bottler’s sales people.
Support from the partner’s marketing department:
- Select special customers.
- Choose quantities for every material.
- Negotiate the introduction of the new product and promotions with big stores, special On Premise customers, big Gyms or reputable SPA centers.
- Check the materials are properly set on premise / in stores.
- Local permissions for the samplings.
- Invite important customers and VIP to the launching party.
- Extract data about the launching (transactional, Nielsen, IRI).
7. P&L
