1. with calcium Heather Aycock Paula Braden Jennifer Jose Rachel McInnis

2. Overview Key Marketing Challenge Environmental Analysis Marketing Goals & Objectives Marketing Strategies Marketing Controls Financial Analysis Summary with calcium

3. Key Marketing Challenge 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 with calcium

4. Internal Analysis 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 with calcium

5. External Analysis 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 with calcium

6. U.S. Per Capita Beverage Consumption Source: Beverage Digest with calcium

7. Customer Environment Potential Customers - all health conscious individuals Targeted Demographics ’ Women ages 18 - 65 ’ Educated ’ Middle Class ’ Primary Grocery Shopper Year-Round Consumption with possible seasonality with calcium

8. SWOT Analysis Strengths ’ customization ’ four C’s ’ 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 with calcium

9. Marketing Goals & Objectives 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% with calcium

10. Marketing Strategies 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 with calcium

11. Product Powdered Drink Mix ’ 3 Refreshing Flavors ’ 2 Convenient Sizes Benefits ’ The 4 C’s with calcium

12. Benefits of Calcium 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 with calcium

13. Price & Place 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 with calcium

14. Place with calcium

15. Promotion Promotion Types: ’ Advertising: Women’s television and magazine ads ’ Sales Promotion: In-store demos, free giveaways ’ Public Relations: Press releases, speeches, educational packets with calcium

16. Promotion 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 KraftRetailer Consume r Push Pull with calcium

17. Marketing Controls 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 with calcium

18. Financial Analysis with calcium

19. Summary with calcium ’ 90% of American women do not get their daily requirement of calcium ’ 25 million American women suffer from osteoporosis ’ Our hopes for the future June 2002 Sept 2002 June 2003 June 2004 June 2005 3 State Roll-Out in CA, FL, TX Introduce new ad campaign Southern Expansion (Market Development Strategy) Convenience Product Development Diversify Target to include Men

20. Questions ? with calcium