Marketing Plan: Enviga
Marketing Plan: Enviga
SUMMARY:
The following marketing plan is formed to introduce the new generation of Enviga, Enviga +, the product by Coca Cola Company in partnership with Swiss food giant Nestle SA, previously already hitting the tea market in 2006 and 3 years later being convicted for its controversial claims. The current analysis outlines the successful strategies the company can use to revive the position of Enviga in the tea market. Initially, Enviga positioned itself as a unique green tea-based drink to burn calories by speeding up the drinkers metabolism. However, the Center for Science in the Public Interest stood up against the claim and sued Coca Cola and Nestle for marketing a weight-loss product without verification. Therefore, the marketing strategies used in this plan will help to reposition Enviga and reach the cold tea market size of an estimated 7.5% during the first year. The expected success will be reflected by capturing the market share within the tea market, while at the same time carrying up Coca Cola and Nestle CA to the top as market leaders in the functional drinks sector of soft drinks.
PRODUCT DESCRIPTION:
In November 2006, two giant leading companies in food and beverages, Coca Cola and Nestle SA, hit the weight-loss industry with a carbonated green tea, Enviga, which strongly claimed to burn calories.
According to Beverage Digest, cold tea (ice tea) was the fastest growing non-carbonated beverage segment in the first half of 2006, while at the same time the Beverage Marketing Corporation researched that “nutrient drinks shot up more than 240% over the past five years, topping $1 billion at wholesale”, but Coca Colas share in both of these markets was rapidly declining at that period. The primary goal for the company, hence, became not only to save the share, particularly during this period, but by boosting the sales to carry itself to the top spot as a market leader in soft drinks.
As a result, in 2006, the joint venture of two partners in Beverage Partners Worldwide, Coca Cola and Nestle SA, marketed the first carbonated green-tea, Enviga, containing an active antioxidant epigallocatechin gallate (EGCG) and caffeine. By promoting Enviga as a calorie-burning drink, both marketers were planning to reach the largest target in the U.S.: people suffering from overweight. According to American Obesity Association, this number reached, in 2006, “64.5% of overweight adults with 30.5% of them being obese”. Dr. Rhona Applebaum, the Coca Cola Companys chief scientist stated in one of her interviews: “Enviga increases calorie burning. It represents the perfect partnership of science and nature”. This fast stimulation of calorie burning is an effect from combination of 900mg. of EGCC with 100 mg. of caffeine in the individual 12-oz. can. Thus, during the marketing, Coca Cola claimed that three of such 12-ounce cans can burn from 60 to 100 calories in 18-35 years old. Enviga came in three flavors: green tea, peach, and berry, and were available at the retail in New Jersey in individual cans as well as in 6- and 12-can packs. The original price of the can was $1.49, which is equal to the price of other drinks of its kind. However, in 2009, right 3 years after Envigas appearance in the market, the Center for Science in the Public Interest stood up against the claim and slogan, “Be Positive. Drink Negative”, and sued Coca Cola and Nestle for marketing a weight-loss product without verification. As a response to this accusation, in her several interviews, Dr. Applebaum pointed out that the problem was caused by the wrong interpretation of the slogan by the majority of the consumers. The most vital, according to the scientist, is that the consumption of Enviga accompanied with daily exercises in order to have an effect. Nevertheless, the respondents had to pay $650,000 to all of the consumption states and remove Enviga from the market.
However, later Enviga, now called Enviga+, will be repositioned in the market at the same price, $ 1.49 per can, but will consider following changes and improvements:
– Based on the new claim, the drink will heavily attract health conscious population;
-Secondly, the details of consumption of the drink and its effects will be clarified in all its promotion materials, including TV ads and description on the can itself, to avoid misunderstandings and over expectation of the product;
– Before releasing the product in the market, several studies would be conducted, which would involve as many segments (based on age and weight) as possible in order to see the effect of the drink. As a result, it is going to be no need to target people from only 18 to 35;
– More flavors of the product will be introduced: cherry, raspberry,