Report on Marketing of  Cocola Instant Noodles
Subject: Business, Marketing | Topics:

Executive Summary
This document portrays the current status of Cocola Instant Noodles and recommendations to improve the product to generate more demand for it. First, the history of Cocola Food Products Ltd. has been briefly discussed. Then the market for instant noodles is reviewed using the information collected by Nielsen. The market for instant noodles is growing at 40% MAT. Then, the product portfolio of Cocola has been evaluated to find whether they conform and which markets they have targeted to serve. Then a competitor review was shown to pinpoint Cocola’s strategic location and the strategic positions taken by its competitors.
Then, the market has been segmented using two variables: demographic and geographic. Cocola can serve the niche markets at present provided by the B2B prospects and also use its brand reputation to create awareness for Cocola Instant Noodles (CIN). Cocola have around 200 distributors in Bangladesh and this is one of their strengths since they can make all their general purpose distribution carry this item. So, their main challenge is create awareness, interest and desire among the target market. Till now, they have not been successful to communicate to major portion of their target market about CIN. The primary target market for Cocola is children between the ages 7-12. And secondary target market is mothers who make the purchase in most case.
Then, analyses were done to find out the strengths and weaknesses of Cocola instant noodles, Maggi instant noodles and Fu-Wang instant noodles. The market for this product is growing and this product itself is in growth stage. This calls for large promotional spending in order to capture maximum market share. Cocola have higher resource constraint compared to Nestlé, which is a MNC. Thus, Cocola has to be content with follower strategy at present. PEST analysis revealed a trend of dual working parents rising in Bangladesh. Thus, the need for quick snack items is growing. Using conjoint model, the most important wants of consumers were identified as taste and price.
After analyzing the current situation, the marketing objectives were set and they include all the 7Ps of marketing mix. Product differentiation will be not only in terms of packaging and labeling but also in terms of taste. Tastemaker is the most significant point of differentiation now. So, giving the target market the taste they desire most will attract and create a loyal customer base. Price will no longer be set at going-rate but value pricing will be used. Consumers must feel that the value provided by this product created delight for them. Meeting their expectations in terms of quantity and quality is not enough. Providing different tastes will make consumers feel they have a choice.
From time to time, promotional efforts in terms of discounts and gifts will create delight. Cocola needs to make sure that they have a separate shelf in supermarkets as that is where most sales volume can be achieved. Also, the sales force will no longer be working on a straight commission basis. They will be given commission based on the number of accounts they create and sales volume they generate. It will be communicated to the sales force clearly and firmly with no room for misunderstanding.
Finally, a control system has been incorporated in the marketing objectives to guide the future actions to be taken. Feedback from the sale of product re-launch after first three months will be used to determine the demand for each product variant. That will determine the number of manufacturing lines that will be operated from the fourth month. Suppliers of the tastemakers will initially be given a small order to cover three month production. Then, the demand for each variant will determine how much of each will be bought. Again, packaging costs will be same but the different colors will mean different manufacturing lines have to be run for each or they have to be packaged alternatively. Thus, training the workers so that the right tastemaker is put in the packet will be given. This will be easy as different colors will be used for each taste. The package of the cake and tastemaker will have the same color to make learning easy. This is a two-year marketing plan and the results and feedback from this plan will provide insights to prepare the next marketing plan.

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