A NEW DRINK "SLOW COW", OFFERS CALMNESS AND RELAXATION, CAN IT FIND A

SUCCESS AS A NICHE ALTERNATIVE TO ENERGY DRINKS LIKE RED BULL IN UK?

Module Code: MG 3123 (Final Project)

Student Number: 0837185

Department: Brunel Business School

Degree: Business and Management (Marketing)

Supervisor: Dr May Seitanidi

Submission date: 9th March 2010

Word Count: 9200

1

Acknowledgments

First and most importantly I would like to thank all the participants who took part in my

data collection and professional people who helped me in the primary research, without

them the task would have been extremely difficult to complete. Secondly I would like to

thank Dr May Seitanidi, who has guided, supported and encouraged me with great advice

right at the beginning of my project, she was an excellent mentor.

I would like to thank my family members for the endless amount of support and

encouragement throughout the times of pressure and a special thanks to my most

important friend Siraj Patel for having faith in me, encouraging, helping and supporting

me throughout the project.

Last but not least I would like to thank the one who gave me courage and brought me this

far ‘Allah’, I thank you God for providing me with willpower to tackle the most valued

year in my studies.

Thank You

2

Abstract

Purpose This report discusses the progress of the Slow Cow brand and evaluates the anti-energy

drink market, using both primary and secondary research, to find the most successful strategic

marketing plan for a new product.

Literature Review – This section assess the different stages of the marketing plan and which

according to the nature of Slow Cow, would be the most successful marketing strategies to launch

a new product in to the same market.

Methodological approach – For primary research, this includes Questionnaire, Concept

testing and screening model. This report will investigate the aspects of the marketing mix which

are appropriate to design the promotional campaign. Secondary research will be used to analyse

the best way to which these marketing mix aspects can be optimised for success.

Findings and Discussion – Key findings include the assurance that the launch for a new

product is both feasible and desirable. The most relevant theories have been analyzed in this part.

Research limitation – This research is limited in terms of sample size and area which

does not represent the whole population of UK. Above all it mostly compares with Red

Bull and does not incorporate the newest discounter range introduced as a fight back to

discounter retailers.

3

Contents

1. Introduction Page 8

1.1 Background Page 8

1.2 Rational Page 9

1.3 Aims & Objective Page 12

1.4 Project Synopsis Page 13

2. Literature Review Page 14

2.1 Marketing Planning Process Page 14

2.2 Marketing Audit Page 15

2.3 Marketing Strategies Page 18

3. Methodology Page 24

3.1 Introduction Page 24

3.2 Primary Research Page 24

3.2.1 Screening Model Page 25

3.2.2 Concept Testing Page 26

3.2.3 Questionnaire Page 27

3.2.4 Pilot Testing Page 28

3.3 Alternative Research Page 29

3.4 Secondary Research Page 30

3.5 Ethical Consideration Page 31

3.6 Limitation of Research Page 31

4. Findings & Discussion Page 32

4.1 Introduction Page 32

4.2 SWOT analysis Page 32

4.3 PEST analysis Page 34

4

4.4 Marketing Segmentation Page 35

4.5 Marketing Mix Page 41

4.6 Branding Page 49

4.7 Budgeting Page 50

5. Conclusion & Recommendation Page 52

5.1 Conclusion Page 52

5.2 Recommendation Page 53

6. References Page 54

6.1 Books Page 54

6.2 Journals Page 56

6.3 Websites Page 58

7. Appendices Page 59

7.1 Appendix A Page 59

7.2 Appendix B Page 61

7.3 Appendix C Page 63

5

Contents of Figures

Fig 1 Slow Cow Page 8

Fig 2 Different Products Page 9

Fig 3 UK Health sales Page 10

Fig 4 Planning Process Page 14

Fig 5 Porter’s Five Forces Page 17

Fig 6 Market Segmentation Page 19

Fig 7 Branding Page 21

Fig 8 AIDA Model Page 23

Fig 9 Questionnaire Findings Page 23

Fig 10 Questionnaire Findings Page 32

Fig11 Questionnaire Findings Page 37

Fig 12 Questionnaire Findings Page 39

Fig 13 Questionnaire Findings Page 46

Fig 14 Questionnaire Findings Page 49

6

Chapter1: Introduction

(FIGURE 1)

1.1 Background

Red Bull Gmbh was started in 1987 and was set up by Mateschitz and Chaleo

Yoovidhya. The innovative idea came from Mateschitz when he visited Thailand in 1982.

He wanted to take this product into the global market, which later he did giving it a brand

name ‘Red Bull’. This simplistic view to business transcended to be what Red Bull is

now, a company viewed to be successful, pioneer of energy drinks.

In 1987, when Red Bull was started there was little competition; the energy drink

industry was virtually non-existent. There were few energy drinks but those were not

marketed appropriately. Energy drinks like Red Bull has risen to be one of the most

globally recognised brands in little more than twenty years (Mellentin, 2008).

Considering Red Bull’s success, the number of competition has increased. However, the

major threat as a competition currently is an anti-energy drink known as ‘Slow Cow’

which has an exactly opposite reaction to energy drinks. It has been launched in Canada

in December 2008.

7

(www.shaesdg.com/tiy45/3433v/df.html) (FIGURE 2)

1.2 Rationale behind choosing the company

Red Bull’s success is obviously centred on the brand on which the company is built. In

2008, nearly 3 billion cans were consumed in 130 countries. This energy drinks holds

more than 60% of the market share worldwide in energy drinks and 19.1% market share

in UK. (Mintel, 2009) The word natural is becoming increasingly popular with

consumers as many look for health benefits essential to the drink instead of something

that has been fortified. Diet and health is the most important topic at the forefront of the

public issue in the UK driven by increasing obesity level. Healthy eating has shifted to

the mainstream; since 2003 food and drink market as a whole has recorded double the

growth rate of healthy alternatives. The manufacturers are forced to think something

unique and invest high levels of the product development for these products as there has

been a great performance of healthy eating.

8

Indexed growth in UK retail value sales of ‘healthy’ food and drinks by type, for the

period 2003-08 (Mintel, 2009)

(FIGURE 3)

The figure above represents a fast change in the attitude of consumers towards healthy

diet which has also lead manufacturers to improve their product selections through

acquisitions or by renovating the current brands.

The ingredients included in the energy drink are usually formed by mixing carbonated

water, Vitamin, Caffeine, taurine and sugar. Red Bull, which is the Britain’s best selling

energy drink has caffeine equivalent to a strong cup of coffee while Relentless containing

twice the amount of caffeine than Red Bull. An energy drink known as Cocaine which is

about to be introduced in UK has 280mg of caffeine which is more than double the

amount in Relentless. However few of them do not label the amount of caffeine in a

250ml can while few have warnings about potential health risks. It has been

acknowledged by the World Health Organization that intoxication of caffeine is known as

a medical condition.

Greater consumption of energy drinks is related to toxic behaviour which could be

proved dangerous and abusive actions like unprotected sex, violence and abusive

behaviour are reported by New York Times. However in few countries these energy

drinks are prohibited due to the health issues attached to it. Norway and Denmark are few

9

countries who have banned Red Bull. A school in UK has requested the local shops to

stop selling Red Bull to under 18’s as the high level of caffeine could be prove risky for

students. (http://www.independent.co.uk)

On the other hand, the latest buzz is for anti-energy drink which aims to distress and get

you relaxed yet focused on what you are doing. As stated earlier this drink was launched

in late 2008. It had struck with success at the launch of this drink, with the smart thinking

and packaging of the product similar to its rival but yet providing the opposite effect. It is

expected to be available in all of Canada and US by the end of December 2008. It is

claimed to provide you with a relax frame of mind and it helps in releasing stress. It is

expected to be launched in UK soon. Ingredients such as chamile, valerian and passion

flower which are present to calm you down without making you feel dizzy are used in

this anti energy drink. Other key ingredients include Theanine.

Justification for this new product into the UK market lies closely to the fact that ‘Slow

Cow’s success in this industry is already deeply proven, therefore creating opportunity to

sell a product in a different market place. With such rare but favourable media timing (the

current climate is infatuated with the health attitudes of the UK population and the effects

of lifestyle and diet on British people) there is no better time to launch a product of such

nature.

10

1.3 Aims & Objectives

The aim of this project is to produce a Marketing plan that will enable the introduction of

Slow Cow into the UK market. This project is an attempt to bring comprehensive

discussion on the health issues related to Red Bull and the potential of Slow Cow into the

UK market.

Slow Cow drink will be analysed in terms of how it would perform in

the UK market if it will be launched here.

Plan suggests what Slow cow should do in relation to what segment –

geographical, demographical it should target , what pricing strategy it

should adopt, types of promotion, in order to become a

successful/popular/profitable brand in the UK.

Examine which marketing strategies would be effective in helping the

company achieve success within the UK market.

11

1.4 Project Synopsis

Chapter 1: Introduction - This chapter has already explained in detail the purpose of

study; it has outlined considerable amount of understanding of the topic and the rationale

to undertake this area of study.

Chapter 2: Literature review - This chapter will start with an in-depth and extensive

understanding of marketing plan and relevant topics through academic journals in regards

to the influence of marketing strategies and marketing tools. This study will further

deepen as theories will be incorporated with the research.

Chapter 3: Methodology - This chapter will cover the introduction to research, primary

and secondary methods which will be used to gather highly relevant information to

support the project. Finally to conclude, it will have possible limitations and problems

encountered during the project and will outline ethical limits.

Chapter 4: Research Findings & Discussion - This chapter will present the findings

which have been made available through the research conducted to specify the target

market and will identify key findings whilst analysing and discussing in relation to the

literature and research objectives defined.

Chapter 5: Conclusion – This chapter will start with concluding the outcome of the

research carried out and objectives achieved. It will be followed by the recommendation

and prospect for future research.

12

Chapter 2: Literature Review

2.1 Introduction

A literature review is a “critical analysis of a segment of a published body of knowledge through

summary, classification, and comparison of prior research studies, reviews of literature, and

theoretical articles.” (Wisconsin, 1998) This literature review will be based on a marketing

plan and some marketing strategies.

2.2 Marketing Planning Process

Fig 4. The Planning Process

13

These ten stages allow a marketer to analyse the activity in the chosen from the viewpoint of a

particular company, (West, 2006) As a result of this analysis the project will aim to identify the

correct product that will increase growth and sales for the company and then finally devise a

promotional programme to introduce the new product. Although marketing plan appears to be an

easy step-by-step process but in reality it is a versatile, difficult activity that goes through every

aspect of an organizational life. (Griffin & Mahon 1997) “Failing to plan is planning to

fail.”(A.Lakin, 1985)

2.3 Marketing Audit

Marketing audit is the most essential part of the marketing planning process which is not only

conducted at the beginning but at a series of points during the planning process. There are number

of tools and technique used, for example SWOT analysis, PEST and Five forces analyses.

Weitz (1998, pg8) believes that the marketing audit is a systematic appraisal of all the external

and internal factors of an organization that have an effect on the company’s performance. These

factors comprises of the identification of the opportunities and threats that may occur due to the

change in the Political, Economical, Social and Technological factors. It also allows analyzing the

strengths and weaknesses of the business than its competitors.

The strengths and weaknesses specified to which the business can make use of the environmental

opportunities and fade away the threats was in the view of Mintzberg(1985, pg77) The

competitive analysis can play a vital role in these aspects of the situation.

SWOT Analysis

This marketing tool helps to identify the strengths and weaknesses of a company and the

opportunities and threats in the environment. Kolstad (2007) believes having recognized

the factors, strategies could be developed with the help of strengths which could help

eliminate the weaknesses and take advantage of opportunities to counter the threats.

There are two types of appraisal, internal appraisal which identify strengths and

weaknesses and external appraisal which identify opportunities and weaknesses.

14

Freidman’s (1972) and Davis (1975) views on being productive is only achieved by

defining an objective.

If a clear objective has been recognized, SWOT analysis could then be used to track the

objective. However, De Witt and Meyer (1998) argue that SWOT, introduced at an early

time, does not provide with few subtler aspects of latest strategic theory, such as trade-

offs.

PESTEL Analysis

The P.E.S.T.L.E analysis is a framework where you can scan the external macro-

environment in which a business operates. According to Auger et al (2003) an

organization has to take into account this analysis as it might have certain factors which

can go against them by anyone in the environment. There are certain factors which are

beyond the control of a business, however are significant when doing product

development and business planning. (Wilson, 1997)

PESTEL is a useful tool when introducing a new product or service. It helps the company

to come up with numerous assumptions, which then helps the organization to quickly

adapt to the reality of the current environment. Kauffman (1999, pg 179) argues that this

tool only identifies the external environment and the findings need to be considered with

other factors, such as the organisation itself, within its industry and competitors.

Porter’s Five Forces

Porter’s five forces is the essential step in considering a company’s competitive position.

It is a tool to identify opportunities and risks when entering a new territory in any market.

Vermon (1998, p4) analyses the five forces as a guidance to assess and manage the long-

term attractiveness of an industry, it also explains the relationship between the five forces

that affect an industry’s performance that are:

15

(FIGURE 5)

(Solomon et al 2006) discusses the importance of discovering the relationships within the

model, which could also change due to shift in the external environment. This guideline

will help the plan to achieve the most desired forces against those in the industry.

Drummond (2003, Pg12) also takes into account the competitors who should be a priority

for a successful marketing plan.

“A further approach is to anticipate shifts in the factor basic the forces and to respond to them,

thus exploiting change by choosing strategy suitable to the competitive balance before

competitors recognise it”. (McDonald, 1998) This type of bold thinking is crucial in the beverage

industry in which cultural characteristics directly affect suppliers. A criticism on this tool is

bought by Kevin P. Coyne (1992) who states that the information gained from this is too

limited.

16

2.4 Marketing Objectives & Strategies

(Matten, 2004) states that “An objective is what you want to achieve and a Strategy is

how you plan to achieve your objective.” However the most vital thing about marketing

objective is that it’s only about products and markets. In this scenario the marketing

objective should be new product for new market. Aaker (1991, pg 189) defines marketing

strategy is something that guides companies to achieve marketing objectives. Marketing

objectives helps in achieving corporate objectives and furthermore, corporate objectives aim to

achieve a competitive advantage over competitors.

Market Segmentation

McDonald (1996) states “Market segmentation consists of a group of customers within a market who share a similar level of interest in the same, or comparable, set of needs.” A company seeks to gain a differential advantage over its competitors by the means of market segmentation. There are certain criteria concerned of what constitutes a market segment which are:

Many of the criteria shown above are obvious when we consider them; in reality practicing market segmentation is one of the most difficult strategies. (Kapfeer, 1997 )

17

(http://www.4tmc.co.za/images/Marketing_Mix_Grafic.jpg&imgrefurl) (FIGURE 6)

Marketing Mix

Marketing mix is made of certain elements which are four P’s (Product, Place, Price, and

Promotion). West (1998, pg 234) defines marketing mix as a marketing tool used by the

marketers to find out what customers want, once that has been found it then helps them

charge a price for the product, after considering the product and the price then they have

to create an awareness of the product, finally they have to make the product land in

customers hand. Getting the right product at the right place with the right promotion is an

art which all businesses are not successful at. (Bevan, 2007) It stresses the “mixing” of

certain decision factors in a way that both objectives are achieved.

18

However, Peter Doyle (2000) criticizes that marketing mix applied leads to non profitable

decisions as it does not consider the financial objectives for instance; increasing

shareholder value. According to Doyle the criteria used in determining the best marketing

mix has never been transparent.

Branding

The occurrence of branding remains difficult to understand yet complex topic however, it

is a most important aspect of a modern culture. As argued by Kapferer (2008, Pg1)

brands are one of the “strategic assets available to a company that can provide a long-

lasting competitive advantage…”

McDonald (1994) analyzes positioning the brand successfully above the competitors,

companies have to fight for their customers. In order to be an attractive, exclusive, and

give an appropriate message to the current and future customers should develop a brand

proposition. Davidson (1997, Pg 28) states that “You can’t escape your brand. Either you

make the customer experience, or it gets made without you.” This shows how much

importance is given to branding.

However, Criticism has been levelled against the concept and implementation of brands,

much of it associated with the "anti-globalization" movement. Kanuk (1983, pg 404)

further criticizes branding as an increased marketing expenditure and sometimes the

brand creativity does not link with the target audience.

19

(FIGURE 7)

Budget

A marketing budget is an estimated cost of marketing the products or services.Mintzberg

(1983) view on operating an effective marketing plan requires a certain amount of

money, so an organization needs to allocate certain amount of funds from the operating.

The marketing budget will allocate the costs according to the media and campaign

utilized. A Budget is usually set for marketing plan to bear the expenses such as;

advertising and promotional plan

advertising and promotions

advertising and promotional materials

a list of advertising media to be used

20

AIDA Model

Wiertz (2009) view on the AIDA model is that it is important to take into account the

buyer’s determination while launching a product, in buying the productAIDA model

(Wiertz, 2009) which determines the buyer’s readiness is important to take into

consideration while launching any product, most importantly a product which is widely

distributed and catches the attention of the majority.

However, Fulmer & Goodwin (2003 Pg 198) observed that people in every case may not follow

the stages as explained in the model. They may follow the stages in some situations, but many do

jump directly to other stages while ignoring the logical pattern. For example; A child

accompanied by a mother to a grocery store is likely to buy a product without getting into the

stages of the model like getting aware of it, product being attractive to the customer might

persuade them.

(FIGURE 8)

21

Gap in theory and practice

These marketing theories are not practised in industry at a large scale that McBurnie

(1989) states that, “research in the early 1980’s showed that some two-thirds of British

Companies did not have clearly defined market strategies and did not use basic marketing

techniques”. The marketing theories are essential to be adopted in order to be competitive

as they are continuously changing and evolving. During those early years British

company were not successful as they are now, ignoring the techniques usually required

for a successful marketing programme.

2.5 Literature Summary

The literature review has explored the different stages of a marketing plan and the

importance and implementation of those stages in order to produce a successful

marketing plan according to McDonald. Target market has also been looked upon and

examined to investigate which target market/audience will be essential and beneficial.

Supporting theories has also been discussed. In addition to this brand awareness

programme was also included and discussed as creating brand awareness is crucially

important as it leads to consumer recognition and recall. (Gilligan, 1969).

22

Chapter 3: Methodology

3.1 Introduction

Saunders et al (2006) tells, “Is an organized and systematic way of finding answers to

questions.” Research method is divided into two parts Primary research and Secondary

research. Primary research is further divided into Qualitative and Quantitative data, a

research design is chosen based on the project objective.

The researcher in this project uses both qualitative and quantitative data collection

technique in order to fulfil the objective of the project. Qualitative research is a useful

step to explore true consumer perceptions for Slow Cow. Nevertheless quantitative data

would be a follow-up for the qualitative research to get an in-depth insight. (Wilson,

2006)

Furthermore there were two more critical points which had to be stated when conducting

marketing research. These rotate around how the researcher should treat potential and

specific participants of the research and to what extent the activities a researcher can or

cannot partake (Bryman & Bell 2007)

3.2 Primary Research

Primary research data is the one which did not exist before. Primary research designed

for this project is to fulfil the objectives. The Primary research will include a screening

model, concept testing, and questionnaire which will give us an in-depth research of the

product.

3.2.1 Screening Model

23

The aim of this screening model is to judge the important areas of the new product

development such as growth rate, feasibility, market attractiveness, internal strength and

synergy. This model also opens the door or creates more opportunity for a more

expensive detailed investigation of the new development. As according to Kelly and

Storey (2000), screening criteria should be used to consider the category like, does the

new product fits well with the company plan, does it includes ability to deliver, customer

satisfaction or profit could be expected from the new product development or not.

Therefore this model provides consistency between the projects, develops a set of should

meet and must meet criteria. Should meet criteria also includes the rating from 1 to 5

which is also quite useful for the comparison of scores among the ideas. This criterion

was developed by Renis Likert his scale which had a range from 1 to 5, asked to the

participants to state their rating about the product and its launch. (Wilson 2006:176) In

the context of my project it was used to find out if the product had fit well with the

company plan. It is one of the most effective ways of collecting ideas from a variety of

people or team in a little period of time. It is easy to understand and a cost effective

method. This model also ease complex decisions to manageable form and it facilitates the

researcher to learn more about the project.

Limitations of Screening Model

Each model has its own limitations, the limitations of above model include each evaluator

might not able to judge all critical areas equally. Profits are crucial criterion not a product

score. Reliability of composite scores is also one of the limitations and the respondent

might tend to give way neutral scores which could also result in getting inadequate

readings for the project.

However after considering the usefulness and problems of this model, it has been

concluded as, this model has significant importance which helped the researcher to fulfil

the objectives. Therefore, all the above facts stimulate the product development team to

specifically focus on this model and implement this into their project.

24

3.2.2 Concept testing

Concept testing is a process to evaluate consumer response for a product idea by using

quantitative and qualitative method prior to the introduction of the product to the market.

Concept testing during old days was tagged with an inadequate method but in modern

days with the advent of the Internet, concept testing is experiencing resurgence. It

normally involves getting people’s reactions to a statement describing the basic idea of

the product. This shows that this will help the researcher analyze how slow cow will

perform in UK market. Moore and William (1982) supported this testing by claiming that

it helps in identifying very poor concepts so that they could be eliminated and to estimate

the rate and the sales the product will enjoy. Furthermore they said it’s relatively easy to

get customer input and stated that “It can be used as an early screen for new product

ideas.”

Limitations of Concept testing

The rating task may not reflect consumers’ “real” reaction toward the concept. Most

concept testing procedure does not provide the necessary information. Iusom (1994)

suggested that a concept testing procedure “should be prescriptive of ‘how go’ as well as

‘if go’.” There are also often changes in the market place as well as in the legal

environment. These changes may also cause the introduction results to differ from the test

result (Moore, 1982). Moreover Tauber (1972) adds that trial cannot be translated into

adoption depends on satisfaction with the actual product, and a concept test cannot

measure this.

3.2.3Questionnaire

Questionnaire is a way of gathering data from a large number of respondents as it is an

inexpensive method. Chisnall (1991, Pg32) suggests that a well structured questionnaire

25

that is implemented effectively can collect information on both the performances of the

test system and guidance on certain components of the system.

A questionnaire was designed which had a total of eleven questions, all of them were

close questions. The reason for keeping the questions close ended was, people here in UK

had very little knowledge about the product, as it has not yet been launched in UK. They

were total of sixty respondents who were handed out the question in Uxbridge Town

centre. The questions also included demographic questions, which were used to link the

performance and were approved with the test system among people. The purpose of

doing the questionnaire in town rather than in the university itself was to acquire a big

target market and to know the potential of the product. The findings of the questionnaire

will help in guiding the company to know about the consumer’s perception of Slow Cow

in UK and at what price would they be willing to buy the drink. The primary role of a

questionnaire is to provide the information required for management decision making.

(McDaniel, 2003) In related to this project it can be identified that questionnaires are one

of the most important method of collecting the data as it allows the collection of data

regarding consumers perception of the product ‘Slow Cow’ and will it be successful if

launched in UK market. This information was extremely important to the project’s aims

and objectives. Stokes & Bergin (2006, Pg27) said, “It is important to remember that a

questionnaire should be viewed as a multi-stage process beginning with definition of the

aspects to be examined and ending with interpretation of the results.”

26

Limitation of Questionnaires

The participants were told about the information being collected and how the result

would benefit them. They were asked to reply sincerely, the questionnaire did not

require the name of the participant.

27

3.3 Pilot testing

Introduction

Pilot testing is usually a test of the procedures and instrument that is planned to use. It

also prevents from landing with costly mistakes. Wright and Crimp (2000) discusses the

purpose of pilot testing is to find the weaknesses and alter them before they prove to be

costly. This testing is usually used while collecting primary data, and will also inform

how difficult would it be to complete. Identifying the mistakes early can even change

what way you collect information.

Questionnaires

The researcher had six questions designed for the testing which was handed out to friends

and relatives to get an overview of the questionnaire. By carrying out the pilot test,

gradually the problems were identified with a few questions regarding the slow cow

perception which lead to change the question which then could be understood by the

participants, however the construction of the questionnaire was done fast comparatively

which forced a higher response rate.

Concept testing

Researcher also carried out a pre-test of concept testing to ensure that the testing with the

students would be easy and would result in an effective manner to support the objectives

of the project. By carrying out the trial concept testing which helped in identifying the

alterations required in the testing methods.

3.4 Alternative Research Methods

Alternative research methods which could have been used in relevance to this project are

best described by Cox & Brittain (2004) which is shown below in a table;

28

Table.1 – Alternative data collection tools

3.5 Secondary Research

Data which is gathered by someone else and is ready to be used comes in secondary

research. The expense incurred during secondary research is low comparatively to

primary research. According to McDaniel & Gates (2003, pg42) the data gathered

previously might be out dated which could bring inadequate result.The research included

information gathered from newspaper, articles and journals which were accessed from

Brunel University. Databases such as Mintel, GMID and Emerald were used in research.

The information gathered from the different sources was useful in providing the detailed

reports in this industry. Additionally, secondary research will also include an interview

which was carried out by a professor of City University London in 2009 of the owner of

Slow Cow drink.

3.6 Ethical Considerations

29

3.7 Limitations of Research

During research many barriers are likely to be placed, which need to be sorted out

properly for successfully achieving the project. Some of them are as listed below:

Time management: Time always play a major in every routine of life, it will be

a key constraint for this project because a lot of time can be spent on primary

research such as distributing questionnaires and assess their results. Therefore the

researcher needs to be organised to submit the project on time.

Access to resources: During the Christmas break university library will not be

functioning so in that period, students will be unable to borrow books.

Access to information: the value of any research findings depend critically on

the accuracy of the data collected.

Cooperation: As part of the primary research process, support from organizations

and participants will be required. Furthermore, access to experts for editing,

proofreading, and guidance will be needed.

30

Chapter 4: Findings & Discussion

4.1 Introduction

This chapter will help us examine the research findings and will include a critical

discussion to justify the aims and objective of the project.

4.2 SWOT Analysis

As the analyses show that the company has clinch to a good initial brand image, which

has a calming effect and is made of natural ingredients. Due to the recent recession it

could delay company’s intention to launch in UK, but they have the ability to develop

themselves by evolving opportunities into strengths. According to the reports in Mintel

(2009), it is estimated that half of the UK population to be overweight by 2050. So they

could persuade people to lead a healthy life and be physically fit. During recent time the

health and fitness centres are offering one month free access which then encourages

people to live healthy. Below are the few strengths, weaknesses, opportunities and threats

that were analyzed after doing the secondary research.

31

(Table 2)

32

4.3 PESTEL Analysis

(Table 3)

33

4.4 Marketing Segment

Slow cow is an anti-energy drink that helps a person to relax. This beverage helps the

person to calm down which in-turn improves their memory, learning capacity and

concentration without causing the person to feel sleepy (www.slowcowdrink.com). The

packaging of the product is just like Red Bull, which is an energy drink, but it is a “balm

that soothes people and takes the edge of stress” due to its healthy nature and complexity

(Totheroh, 2009).

 

L-Theanine is a key ingredient of Slow Cow, which is found in tea plants (White, 2009).

Due to this key ingredient Slow Cow has a de-stress effect, which is similar to green tea.

“It’s like a new way to have tea… instead, we want people to say let’s have a Slow Cow”

claims Mr.Lino Fleury (Wiertz, 2009). Slow Cow can be considered a subsidiary for tea

in North America as stated by Lyon, “The quality of tea we get here is often very poor

compared to say, Japan. Where their tea is actually rich in L-Theanine, ours has a very

small amount of it” (Totheron, 2009). On the other hand, it could not compensate for tea.

Drinking tea in the UK is a custom and it is irreplaceable. Slow Cow has to take this into

consideration before entering the UK market. Hence, it would be better for Slow Cow not

to base its predictions on the tea segment of the market in the United Kindom.

It is argued that Slow Cow is a healthy drink for consumers, whereas people who are

health conscious would substitute Slow Cow with Vitamin water or multi vitamin juice

due to the blue, carbonated water. Slow Cow would have to be launched in the UK under

the category of relaxation or Anti-Energy drink. This would be appealing to customers

who have a stressed routine, such as students, professionals and sport enthusiasts. The

main target for Slow Cow would be customers aged 18-45; hence it would have to be

launched in the adult soft drink market. The biggest benefit that Slow Cow would reap

from this move is that the adult soft drinks market is the fastest growing sector in the soft

34

drinks market. The growth rate has been up 84% since 2000 for the adult soft drinks

market (Mintel, 2006). Slow Cow is more comparable to iced tea. Sales in volume had an

impressive growth as it trebled between 2000 and 2005 (Mintel, 2006) (Refer to

Appendix II)

            Products like iced tea have already gained a lot of popularity in the US and

continental Europe (Mintel, 2006). On the other hand, again, due to tea being a major part

of the culture in the UK, even products like iced need tea to get accepted by the British

customers. Slow Cow is no iced tea but it has a similar appeal to that of tea. Therefore,

Slow Cow needs to be promoted as a natural and healthy product rather than promoting it

as a substitute for tea, in order to be successful.

(FIGURE 9)

Therefore the adult soft drink market would be a more appropriate sector to base Slow

Cow’s market potential on. As you can see on the above figure that more than 50% of

participants that were aged 18-25 had the good news for Slow Cow is that the adult soft

drinks sector is one of the fastest growing in the soft drinks market. The growth rate

35

continues to expand since 2000 and has an 84% increase in volume since then (Mintel,

2006). Even though it is the flavored water that holds most of the market share currently,

iced tea, which Slow Cow is more comparable to, is a newly emerging sector. Sales in

volume had an impressive growth as it trebled between 2000 and 2005 (Mintel, 2006).

(Refer to Appendix II)

Products such as iced tea have already gained much popularity in US and continental

Europe (Mintel, 2006). However, again, as tea is part of the British tradition, even

products such as iced tea still need to acquire acceptance among the consumers in the

UK. Slow Cow is not an iced tea as such but its appeal is similar to one of a tea. Hence in

order to successfully market this product in the UK, Slow Cow strongly needs to be

promoted as a healthy (e.g. low-calorie) and natural (e.g. natural ingredient) product

rather than a substitute for tea.

(Figure 10)

The above figure illustrates that 73% of participants were health conscious

Health issues have been a recent focus for British consumers. Media campaigns covering

issues such as obesity and heart disease for instance have raised awareness immensely,

then forcing most consumers to become more health conscious; this has lead to a change

in their attitudes towards what they consume then leading to a change in their lifestyle as

36

well. Consumers are making rapid shifts from drinks with high sugar content to drinks

with more natural ingredients. The above figure illustrates that 73% of participants were

health conscious The percent of carbonated soft drinks such as colas consumed decreased

between 2002 and 2004 (Mintel, 2006). Drinks with more juice content such as J20 are

now more appealing to the consumers. One particular change in consumers’ attitudes has

been not just to go for a low-calorie or low sugar drink but actually place an increased

focus on the products’ ingredients and their functionality. Slow Cow has a great deal of

these ‘healthy ingredients’ that promote a healthier image and more importantly creates a

“sophisticated” image (Mintel, 2006). This then adds value to the product to justify its

premium charge.

Target Market Approach and Psychographic/Demographic profile of the target customers

The business needs to target a few markets rather than going for a mass marketing

strategy. Adopting a segmentation approach can be very advantageous for the business as

it helps in effective resource allocation, customer analysis, effective market planning,

expanding the market and it also makes it easier for the business to fully analyze and

understand its competitors. The target market for Slow Cow is the middle to high class

segment of the population. This is because they are the most willing to spend and try

something new. Also it is mainly students and people with stressful jobs that may require

a drink like Slow Cow to relax them. Based on our own survey carried out on individuals

above 18, the majority of energy and anti-energy drink consumers earn an income of

£1500 or over per month. A change in the British demographics may particularly benefit

sales for Slow Cow. Consumers at the upper end of the market in 2004 were also

predicted to increase by 5% by 2009 (Mintel, 2006). They, along with the middle-class

are usually the main consumers of adult soft drinks. Consumers are predicted to maintain

their willingness to spend. A rise in consumer expenditure is specifically anticipated in

the 15-24 years old age group (Mintel, 2006). Also as the target costumer for our product

37

is between 18-45, they may also profit from the increased ageing population in the UK.

Adults aged over 20 increased by 2.2% in 2 years from 2002 and augmented to 45

million adults in 2004 (Mintel, 2006).

Apart from that the older generation should not be overlooked. After the gym, Slow Cow

can be used by this segment of consumers, men or women who can enhance the

experience of a relaxing spa with the drink. Moreover, the older generation is the working

generation and should be targeted because of their high levels of stress and pressure that

they go through in their work and daily lives. For a hardworking employee who has a

hectic and fast paced job, a drink such as “Slow Cow” that promotes the idea of

relaxation, can be quite useful.

Characteristics of Targeted Customers

Benefits/Needs sought by the market

The market needs reasonable pricing. Due to recession, consumers are becoming

increasingly price-conscious. Nobody is willing to buy an overpriced product. Along with

that, the society is becoming more health conscious and Slow Cow should lay more

emphasis on its natural ingredients. Very few drinks promote the idea of relaxation;

therefore, Slow Cow should focus on differentiating itself from the clutter of existing

products by emphasising on its many benefits which include relaxation, concentration,

reducing nervousness, treating insomnia and decreases fatigue.

Product Usage

As already mentioned Slow Cow has a lot of benefits which can used by the masses.

Everyone needs a bit of relaxation and calmness. The product can be used at anytime and

anywhere by consumers who want to embrace slowness. (www.slowcowdrink.com)

38

(FIGURE 11)

Product Positioning

Slow Cow is challenging and is playing with Red Bull’s name and logo

(www.creativematch.com), yet at the same time it creates the opposite effect. The figure

above shows the energy drink consumed by the participants where at least 40% people

use to consume energy drink once a week, whereas total of 72% of participants have

energy drinks once a week. The company is focusing on a differentiation strategy. It is

positioning itself as the opposite of Red Bull and other energy drink with a focus on

calmness. In other words, Slow Cow is not necessarily capturing Red Bull customers, but

instead it is attracting more potential customers to functional beverages in general and

developing the market further. It could be positioned as a “cooler” version of tea and

juices. As far as the UK, market is concerned Slow Cow should position itself as an Anti

Energy drink as customers today are open to new imaginative and useful products.

Purchasing Process

Slow Cow will be introduced as an anti energy drink which is a completely new segment.

Much of the marketing for the product will be done by the consumers itself. The

39

company will have to rely heavily on word of mouth or “buzz” marketing. The company

will have to focus on getting the word out through playing on association with relaxation,

calmness and de-stress. The company will have to look at the decision making process of

the buyers and analyse their needs and consumption pattern.

Consumers will not buy Slow Cow based on impulse. The buying will be based on a

detailed and well researched or planned consumer decision process. This is because

consumers always look at the side effects associated with such drinks. Peer pressure and

other environmental or group pressures do encourage the consumption of products such

as Slow Cow, but consumers who actually need the product will make the purchase

themselves.

4.5 Marketing Mix

40

.

41

(FIGURE 12)

Promotion

Slow Cow promotion should be centred on the promotion of its benefits that include its

ability to calm consumers, to help consumers concentrate and to provide natural energy.

After stating the benefits of Slow Cow it shows that 71% of participants would try the

drink after the information provided to them.The drink is aimed to target people who live

a busy lifestyle, are health conscious and often anxious. The drink should be promoted

mainly at spas, gyms, universities and work related areas. The promotion campaign will

comprise of three main promotional methods, advertising, sales promotion, Buzz and

Viral Marketing.

42

Advertising

The Company can hire eco-vans from promobikes (www.promobikes.co.uk) to promote

the drink around 3 cities in the UK. The vans have visual appeal and will attract customer

attention.

43

(FIGURE 13)

Sales Promotion

The sales promotion boosts sales during promotion period because of the incentive effect.

The company can offer the drink at various universities, work areas and spas at an

introductory offer at “Half the price” of the original can. The company can also distribute

flyers and display posters around UK. The above figure explains that people would like

to consume most in university which is 40% where the work load and stress is more. As

you can see that there is much less likelihood that people will have Slow cow at the Spa

as you will already be having a relaxing session.

44

45

Vertical Indirect Channel

(FIGURE 14)

At a launch of a new product, an intensive distribution should be applied, since the

product should be as widely available as possible. (Brassington and Pettitt) In the

presence of an intensive distribution, the product is placed in as many outlets as possible

where availability may be just around the corner. This type of distribution usually

involves long chain distribution mentioned above (producer-wholesaler-retailer-

consumer) where the product is widely distributed. (Refer to Appendix III).

The types of retailers in which Slow Cow should be sold and where the target consumers

would be found are:

1. Large Supermarkets

2. 24 Hour shops and fuel stations where people might need the relaxation at night

after a stressful working day. Demand would peak at night and/or weekends.

3. Universities (vending machines) in induce relaxation in students as well as

improve their concentration.

4. Promotion at Sports events such as Golf/chess tournaments.

5. Spas where consumers would need to relax and enjoy their treatment.

The geographic location of these retailers should be however based in the city rather than

in rural areas. Due to the hectic and stressful City life, there would be a larger proportion

of people suffering from stress and needing methods of relaxation, without deterioration

in concentration or drowsiness. The wide distribution of the product, in the locations

where our target consumers should be located, will increase brand awareness, curiosity

46

Manufacturer

Wholesaler

Retailer

Consumer

and the urge to try the product. The product was launched in December 2008 in Canada

and is believed to be available in all large upmarket supermarkets in Canada such as

Costo’s, Seven Eleven, Petro Canada etc by the end of this year, as well as over 1,500

independent convenience stores. (Wahlgren, 2009)

The launch of the drink in the UK should undertake the same approach, through the

distribution in large, regularly visited supermarkets primarily, since with this approach,

the overall sales between December 2008 and August 200 have hit over 1.2 million cans.

This distribution approach should however be expanded into the numerous locations

mentioned above.

(FIGURE 15)

Pricing

Pricing is an important factor for determining profits. Pricing can make or break the

success of a product. It directly impacts revenue and acts as a competitive weapon. When

determining the price a manager needs to remember that prices one set are very difficult

to change. The Q4 of the questionnaire states that 62% of the participant fall in the £500-

£1000 category which means the cost of a can of Slow Cow should be relatively less.

Ever since energy drinks such as Red Bull took the world by storm, beverage makers

have been looking for the next big thing. Datamonitor, the market research company, has

tipped relaxation drinks as a trend to watch in 2009. The products are hitting the market

47

in mid-recession, as sales of energy drinks - the fastest-growing segment of the $50

billion non-alcoholic beverage market with 300 product launches between 2003 and 2008

— are leveling off. (Times, 2009)

The following factors determine the price of Slow Cow:

Product Slow Cow is concerned. The researcher did a direct price response survey for

the product.

£ 1.69 £ 1.79 £1.89

Definitely would buy it 65% 45% 40%

Probably would buy it 20% 20% 10%

48

Probably wouldn’t buy it 10% 20% 28%

Definitely wouldn’t buy it 5% 15% 22%

(Refer to Appendix A for survey)

As the customers expect a low price, researcher has set the price at £1.69 per can which is

part of our penetration pricing strategy (Bovay, 2008). The researcher’s aim is to achieve

a large market share. As the company faces competition, it can raise its prices

accordingly. The other strategy which we have tried to implement is psychological

pricing strategy by setting a price ending with the 9 digit number. In addition, Slow Cow

could also promote price bundling, by offering 4 can packets at stores like Tesco and

Sainsbury, which attracts customers as they assume they are getting better value for

money and customers.

4.6 Branding

Branding is of great value to consumers since strong brands can show the function of the

product and help consumers judge whether it is their sort of product. (Brassington and

Pettitt, 2007) The brand name should be simple, familiar and distinctive as well as

meaningful. ‘Slow Cow’ relates too much to Red bull and since the target market should

not assume it’s a competitor to Red bull, the name would be recommended to be changed

to Slow Cow, which clearly communicates the products effects and benefits and is an

appealing name which could attract consumers simply because of its unique and

uncommon name. Furthermore, Slow Cow would be similar to Blue Cow which has been

launched on the “West Coast of the America in 2005, containing the key ingredient of

Suntheanine, a patented formulation based on L-theanine” (Times, 2009) and is due to be

launched in the UK in 2010.

4.7 Budgeting

Since Slow Cow is in the pre-launch phase of the product life cycle, and is competitive to

other energy drinks which dominate the market such as Red Bull, the right promotion

49

techniques need to be implemented. A promotion mix of mass media such viral

marketing and internet advertisement as well as publicity through PR is vital to introduce

the product effectively to the market. The AIDA model (Wiertz, 2009) which determines

the buyer’s readiness is important to take into consideration while launching any product,

in particular a product which is widely distributed and is attractive to the majority of the

population.

(FIGURE 16)

50

Researcher has have relied on ‘eco trucks’ (www.promobikes.co.uk) which will cost

£290 per day. (Refer to Appendix D) it would recommend hiring five trucks. Three trucks

could drive around Zone 1 and Zone 2 in London, 1 truck in Birmingham (student area)

and 1 truck at Bath (particularly known for its spas).

they will be distributing flyers and putting up posters all around the UK. The cost

incurred for 50,000 flyers and 20,000 posters will be £20,390.

(http://www.walesprint.com/)

The remaining balance of £186,110 will be used to offer or promote the drink at spas,

gyms, universities and work related areas at an introductory offer at “Half the drinks

price” as well as cover the costs of the staff used to promote the product.

51

Chapter 5: Conclusion & Recommendation

5.1 Conclusion

This project analyzed the development of the Slow Cow brand, its product and customers

by using primary and secondary research. Consumers concluded that this was the product

which stood out to them, and that the most important aspect of this was the innovation of

the product and the company’s dedication to resolve public issue which was health

eating.

 

Concept testing analyzed and illustrated that consumers would be more than willing to

accept an anti-energy drink with natural ingredients over all other possibilities. It also

suggested that the participants were enthusiastic about the product launch in UK.

Questionnaires suggested that people specifically eighteen and above were willing to try

the product. It also illustrated that people were more health conscious.

Finally, the discussion showed that the marketing plan took into consideration the

expectations of the consumers and the demand of Slow Cow drink. The increasing

eagerness to have a healthier lifestyle will boost the growth of new products. The target

market has been set. The price which is comparatively low is achievable by Slow Cow

due to its cheap packaging material. It is essential to invest into extensive marketing

strategies at the introductory level of the product lifecycle to increase the brand

awareness.

52

5.2 Recommendation

53

Chapter 6: REFERENCE LIST

6.1 Books:

i. Bevan, J. “Energy drinks and its success” 3rd edition (2007)

ii. Baker, J. “Marketing Strategy and Management” 2nd edition Macmillan Press

(1992)

iii. Gilligan, J. and Wilson, M.S. “Strategic Marketing Planning” British Library

(2003)

iv. Drummond, G. Ensor, J. and Ashford, R. “Strategic Marketing Planning and

Control” 2nd edition Elsevier (2001)

v. Lambin, J. and Jean “Strategic Marketing Management” McGraw Hill (1997)

vi. Kottler “ Principles Of Marketing” (1997)

vii. Jewel, B. “An introduction to Business Studies” Second Edition. Financial Times.

Pearson Education.(1999)

viii. McDonald, Malcolm “Strategic Marketing Planning” (1938)

ix. Mullins, J. “Management and Organisational Behaviour” 2nd edition Prentice Hall

(2005)

x. Brassington, F. and Pettitt, S (2007). Essentials of Marketing. Harlow, England: Pearson Education Limited.

xi. Lamb, Charles W., Hair Joseph F Jr., McDaniel, Carl. (2009). Essentials of Marketing, 6th edition, South Western Cengage learning, pp: 137-204

xii. Wiertz 2009: Handbook lecture notes

xiii. Carter; Meg (2004, June). Opportunity beckons. Marketing, 36-37.  Retrieved

October 29, 2007, from ABI/INFORM Research database. (Document

ID: 656709331).

xiv. Emily Rogers (2004, January). Packaging integrity to be key branding

issue. Marketing, 10.  Retrieved October 29, 2007, from ABI/INFORM

Research database. (Document ID: 525699081).

54

xv. Daniel B Honigman (2007, October). 10 MINUTES WITH EXPERIENTIAL

MARKETING GURU BERND SCHMITT. Marketing News, 41(17), 26-30. 

Retrieved November 5, 2007, from ABI/INFORM Research database. (Document

ID: 1370247301).

xvi. Drummond, Ensor, Ashford (2003) Strategic Marketing Planning & Control,

Elsevier Butterworth Heinemann Pg27

xvii. Duffy, Neill. John Wiley & sons c2003 Passion branding

xviii. Gilligan. Wilson, Strategic Marketing Planning, 2003; Butterworth Publishing,

Oxford

xix. Greenley, Gordon E. 1990 The strategic and operational planning of

marketing Prentice Hall, Devon

xx. Grundy (2006). Rethinking and reinventing Michael Porters five forces

model. Strategic Change, 15(5), 213.  Retrieved October 29, 2007, from

ABI/INFORM Research database. (Document ID: 1165588081).

xxi. Hooley, Graham, Saunders, John, Piercy, Nigel Marketing Strategy and

Competitive Positioning, Third Edition 2004 Pearson Education Limited,

Prentice Hall

xxii. John Simmons (July 2006) Great Brand Stories Building a brand from nothing but

fruit CYAN London ID: 139781905736041

xxiii. Karen Rothwell (2007, July). What Tools Are in Your Tool Kit? Competitive

Intelligence Magazine, 10(4), 55-57.  Retrieved October 29, 2007, from

ABI/INFORM Research database. (Document ID: 1309178511).

xxiv. Lambin, Jean-Jacques, 1933- Market-driven management : strategic and

operational marketing

xxv. McDonald, Strategic Marketing Planning, Cranefield Management, 1996, Second

Edition, Pentonville Road; London

xxvi. Mintzberg, Quinn, Ghoshal; The Strategy Process, European Edition; 1998

Prentice Hall, Devon

xxvii. Robert Chapman Wood (2007). How strategic innovation really gets

started. Strategy & Leadership, 35(1), 21-29.  Retrieved October 29, 2007, from

ABI/INFORM Research database. (Document ID: 1177703971).

55

xxviii. Wilson, Gilligan. Strategic Marketing Planning, 2003; Butterworth Publishing,

Oxford

xxix. West; Douglas, Ford; John, Ibrahim; Essam, Published; 2006, Oxford University

Press, Oxford

xxx. West, Ford, Ibrahim (July 2006) Strategic Marketing, Creating Competitive

Advantage pg 101-177 Strategic marketing decisions.

xxxi. Whittington, Richard, 1958-.What is strategy - and does it matter?

xxxii. Anon: Study Text; Professional Post-Graduate Diploma in Marketing 2005-2006

June Examination period. Paper 10 Strategic Marketing Decisions.

6.2 Journals:

i. Whitehead, M. “Britain’s Leading Retailer: Quality and Value Worldwide”

Management Decision, Vol. 32 No. 3, 1994, pp. 38-41 MCB University Press,

0025-1747

ii. Springs, A. “The internal auditor” Vol. 64, iss 5: pg: 73, 3 pgs

iii. Milford, M. “Retail and services Marketing Energy drinks” (2003)

iv. Green, M. “UK organic in higher demand” (2006)

v. Jones, P. and Comfort D. “Healthy eating and the UK’S major food retailers: a case study in corporate social responsibility” British Food Journal, Vol. 107 No. 6, pp. 423-35.

vi. Mintel, “Energy Drinks UK-November 2004” Mintel, London (2004)

vii. Mintel, “Functional Drinks UK-November 2005” Mintel, London (2005)

viii. Strategic Direction “Slow Cow giving competition to Red Bull Vol. 2 NO. 9, pp.

28-31, Emerald Group Publishing Limited, ISSN 0258-0543 (2005)

ix. Mintel (2006, January). Adult Soft drinks - UK. Retrieved from http://0-academic.mintel.com.wam.city.ac.uk/sinatra/oxygen_academic/search_results/show&/display/id=173695

x. Mintel (2008, September), “Healthy Eating and Drinking- UK” Retrieved on December 7, 2009

xi. Totheroh, G (2009, January 13) “Feeling a Little unfocused? Try a Cup of Tea”. Retrieved on December 1, 2009

56

xii. White, M. (2009, May 6) “Calm down by sipping a Slow Cow”. Retrieved on

December 7, 2009 from Canwest News Service

xiii. Andrew Saunders (2000, March). How the world fell for a bunch of

smoothies. Management Today, 76-79.  Retrieved October 29, 2007, from

ABI/INFORM Research database. (Document ID: 50836396).

xiv. Carter; Meg (2004, June). Opportunity beckons. Marketing, 36-37.  Retrieved

October 29, 2007, from ABI/INFORM Research database. (Document

ID: 656709331).

xv. Emily Rogers (2004, January). Packaging integrity to be key branding

issue. Marketing, 10.  Retrieved October 29, 2007, from ABI/INFORM

Research database. (Document ID: 525699081).

6.3 Websites:

i. Benefits (2009). Retrieved December 4, 2009, from Slow Cow, An acupuncture session: http://www.slowcowdrink.com/slowcow_en.asp?no=262

ii. Bovay, K. (2008). Market Penetration Pricing - A Quick Market Entry Pricing Strategy. Retrieved December 8, 2009, from http://ezinearticles.com/?Market-Penetration-Pricing---A-Quick-Market-Entry-Pricing-Strategy&id=1341563

iii. “Slow Cow” Brand Differentiation Strategy. (2009). Retrieved December 6, 2009, from Creative Match: http://www.creativematch.com/viewNews/?97559

iv. Times, T. (2009, September 8) Blue Cow is poised to take Red Bull by the horns. Retrieved December 8, 2009, from Times Online: http://business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article6825334.ece

v. Wahlgren. E, (2009, October 7) “Adios, Red Bull? Anti-energy drinks seek to soothe frazzled Americans”. Retrieved December 5 from http://www.dailyfinance.com/2009/10/07/anti-energy-drinks/

vi. Williams, H. “Energy drinks: Do they work?” ( 2009, October 20) retrieved November 29 from http://www.independent.co.uk/life-style/health-and-families/features/energy-drinks-do-they-work-1805598.html

57

vii. Wilson, D. R. (2000, January 1). The Six Simple Principles of Viral Marketing. Retrieved December 7, 2009, from http://www.wilsonweb.com/wmt5/viral-principles-clean.htm

viii. www.promobikes.co.uk (Retrieved December 8, 2009)

ix. http://www.walesprint.com (Retrieved December 8, 2009)

58

Chapter 7: Appendices

7.1 Appendix A

59

60

61

7.2 Appendix B

Screening Model

Must Meet Criteria (Circle the best option)

62

Should Meet Criteria (rate the following questions from 1 to 5)

63

Total: ______

64

Appendix C

Concept Testing

A beverage manufacturer would like to get your reaction to an idea for a new anti energy drink. Please read the description below before answering the questions.

65

Slow CowHere is a tasty beverage that makes you relax and calm, yet focused on. It releases your stress. It helps in many ways and the ingredients found in this drink are 100% natural, it comes in a similar packaging to Red Bull and it costs £1.69.

Appendix D

UK retail sales of RTD tea and coffee, volume and value, 2000-05

m litres Index £m Index

2000 6 100 8 100

2001 7 117 10 125

2002 9 150 12 150

2003 12 200 16 200

2004 14 233 18 225

2005 17 283 22 275

Appendix E – Intensive Distribution

Total number of outlets covered Maximum

Number of outlets per region As many as possible

Distribution focus Maximum availability

Type of consumer product Convenience

Number of potential purchases High

Purchase frequency Often

Level of planned purchases by consumers Low

Typical price Low

( Brassington and Pettitt 2007)

Appendix F - Labeling

NO ARTIFICIAL

66

Colours

Sweeteners

Appendix G - Budgeting

Promotion Methods Total cost

Advertising Eco Trucks: 5 trucks at

£290 a day for 1 month

£43,500

New Introductory offer at

“half the price” at Locations

Spas/Gym&

Yoga/Universities/ Office &

Work areas

£186,110

Posters and Flyers at Tube

stations,Universities,

Shopping Malls

50,000 flyers at £590 and

20,000 posters at £19,800

£20,390

67

Preservatives

Flavourings

Appendix H

The cost of £ 290 will be incurred through the use of advertisement on vans since the

duration of the campaign will be 1 month.

68

Appendix I– Slow Cow’s Competitors

(http://www.namedevelopment.com/blog/archives/industry/beverages/default.html)

69

70

Brunel Business School Research Ethics Form

To be completed for all Undergraduate and Postgraduate projects

___________________________________________________PLEASE INDICATE BY A TICK WHICH ONE OF THE

FOLLOWING CATEGORIES YOUR RESEARCH FALLS WITHIN:

1. Human Participant Research Does your research primary data collection directly from humans, for example, through the use of interviews or a questionnaire?

If you tick this box, you will need to prepare a Research Consent Form. Prepare your form using the template provided (Page 5). You do NOT need a consent form if participants: (a) are NOT in one of the categories specified in point 7 of the Guidelines; and (b) are anonymised (i.e. their identities cannot be traced (see point 8 in the Guidelines)).

2. Research using Human Participant data bases This is research where you are using information stored on a database which could be traced back to individuals or groups, such as personnel records

You will need a consent form as above.

3. Organisational Research not requiring human participants or participant-based data bases

This is research where you may be using information in the public domain and which could not be traced directly to individuals or groups, such as company records, research based on academic literature only, or other types of secondary data.

You will NOT need consent if you cannot trace the owners of your intended data.

Please indicate if your research also falls into this category 4. Company Information requiring a Non-Disclosure Form

For use in organisations which require that your dissertation/ project can only be used for assessment purposes, and that the content cannot be released for a fixed period of time. This is sometimes requested if the information is sensitive commercially, or in terms of the reputation of the organisation.

Produce your own version of page 3. Please seek advice from your supervisor.

Name of Student: Shahzad Muhammad Ilyas

71

Student Number: 0837185 Student E-mail: bu07ssm@brunel.ac.uk

Degree Course Title: Business and Management (Marketing)

Module Number and Title: MG3123 issues and controversies in management

Name of Supervisor: May Seitanidi

Title of Research Project: A NEW DRINK "SLOW COW", OFFERS CALMNESS AND RELAXATION, CAN IT FIND A SUCCESS AS A NICHE ALTERNATIVE TO

ENERGY DRINKS LIKE RED BULL IN UK

Please view the podcasts (a) Student Briefing: Research Ethics, and (b) Student Briefing: Research Ethics Clearance Application Process (http://people.brunel.ac.uk/~bustcce/Ethics/)

Read and understood the Brunel University Research Ethics code (http://intranet.brunel.ac.uk/registry/minutes/researchethics/CoEv6.pdf)

Short Project Description (150 words)

The main aim of this project is to find the potentials of the new drink ’Slow Cow’ into the UK market and can it find success in the niche market of energy drinks.

How have energy drinks been successful and its issues? Introduction of the new product ‘Slow Cow’ Marketing plan of the new product and its potential in the UK market. Can it find success?

Specific Risk Factors Involved. You should consider the following and select those areas that are a potential risk factor for your research:

(a) Unnecessary disclosure of interviewee identity(b) Security of storage of data(c) Company confidentiality(d) Copyright infringement

72

(e) Coercion of interviewees into interviewing(f) Are there any others you would add? YES/ NO

If Yes (please specify)

Is a Non Disclosure Agreement required by the organisation being researched YES/ NO

(if YES), please complete a version of the Form on page 3

Student Declaration

I have viewed the podcasts on (a) research ethics and (b) YES/NO

the research ethics clearance application process

I have read through and understood the Brunel University Code of Ethics YES/ NO

I have provided a Research Consent Letter, if required (page 5) YES/NO/n/a

I have provided a Non Disclosure Form, if required (page 3) YES/NO/n/a

I declare that the above is true and any approval will be given based on my answers and project description provided in this form.

Date: 19th Nov 2009

Supervisor declaration

I confirm that the student:

Has confirmed to me that s/he has viewed the research ethics podcasts YES/NO

Has correctly identified the type of research to be undertaken YES/ NO

Has confirmed to me that s/he has read the Brunel University Code of Ethics YES/NO

Has provided a Research Consent Letter, if required (page 5) YES/NO/n/a

73

Has completed a Non-Disclosure Form, if required (page 3) YES/NO/n/a

For Supervisor:

If the ethics form is missing, incomplete or does not meet the Guidelines, the PG Dissertation/UG Project Proposal is referred. The Supervisor may indicate revisions needed as part of her/his written feedback.

Please note that (a) one example of any transcripts/completed questionnaires; (b) a blank copy of the interview questions/questionnaire; and (c) Information Sheet you used must be bound into your final submission. ALL of your transcripts and interview questions MUST be retained by you until you have received formal confirmation of your degree award.

Please note that your supervisor has the right NOT to provide research ethics clearance if you have not completed the process and/ or the forms satisfactorily.

If there are any substantial queries that cannot be dealt with by your supervisor, please contact the Brunel Business School Research Ethics Committee.

74

7.4 Appendix D

Ethical Forms

Brunel Business SchoolResearch Ethics

Participant Information Sheet

1. Title of Research: New product development

2. Researcher: Shahzad Muhammad Ilyas Student on Business and

Management (Marketing), Brunel Business School, Brunel University

3. Contact Email: E-mail: bu07ssm@brunel.ac.uk

4. Purpose of the research: The main purpose of this research develop a

marketing plan that will help in launching Slow Cow in UK.

5. What is involved: Screening Model where 5 people were selected and were

asked to analyze if it was feasible to lunch in UK, Questionnaires were asked to

60 people from Uxbridge Town and then finally concept testing was also carried

out which had 6 participants.

6. Voluntary nature of participation and confidentiality. Data collected will be

kept securely. The data will only be used in an aggregated form in the project

report with no reference to you as an individual. Participation is completely

voluntary and the participant could stop and leave at any time.

75

Appendix E

Brunel Business SchoolResearch Ethics

Participant Consent Form 1

Many thanks for agreeing to participate in my research project. The project has to be completed in part fulfilment of my degree programme and so your assistance is much appreciated.

Consent: I have read the Participation Information Sheet and hereby indicate my agreement to participate in the study and for the data to be used as specified.

Name of participant or informed third party: Richard Mat

Signature: Shahzad Ilyas

Date: 20th February 2010

76

Brunel Business SchoolResearch Ethics

Participant Consent Form 2

Many thanks for agreeing to participate in my research project. The project has to be completed in part fulfilment of my degree programme and so your assistance is much appreciated.

Consent: I have read the Participation Information Sheet and hereby indicate my agreement to participate in the study and for the data to be used as specified.

Name of participant or informed third party: Ahmed Mat

Signature: Shahzad Ilyas

Date: 20 February 2010

77

Brunel Business SchoolResearch Ethics

Participant Consent Form 5

Many thanks for agreeing to participate in my research project. The project has to be completed in part fulfilment of my degree programme and so your assistance is much appreciated.

Consent: I have read the Participation Information Sheet and hereby indicate my agreement to participate in the study and for the data to be used as specified.

Name of participant or informed third party: Rutland Peter

Signature: Shahzad Ilyas

Date: 20 February 2010

78