Virgin Cola Case Analysis

To Challenge Pepsi and Coca Cola? It was daring. Richard Branson's Virgin Group boss has done by launching a competing drink and exploding. 50 cl bottle is inspired by the forms of chubby Pamela Anderson, star of the series "Baywatch." After Great Britain in 1994, the drink has landed in France in 1996. And now it is ready to conquer the United States.

VIRGIN megastore stores through an airline (Virgin Atlantic), financial products (Virgin Direct), cinemas (Virgin Cinemas) and space vehicles travel (Virgin Galactic), Virgin has no less than 200 companies around the world.

Richard Branson, the boss has the same objective: apparently keyed markets, conquer innovative way of challenge. The empire displays €183 million profit for a turnover of €3 billion. In Britain, Virgin Cola is elbow to elbow with Pepsi, Tesco the leading supermarket chains. In France, the Company has taken five years to become the No. 2 market.

In fact, the leader Coca Cola, with 80% of the French market, has perhaps not much to worry about. But Pepsi, which is struggling to recover from the losses in 1996, it may, worrying. For the drink Branson score points. Latest success, Virgin Cola is now referenced in 70% of the supermarkets in France. Monoprix, where he was first 18 years ago, Virgin sells more than Pepsi: 10% against 7% of sales. What drink did she get these results? First, by adopting a clever marketing position, then pushing up power gradually its sales offensive, finally knowing how to cheaply promotion.

The positioning of Virgin Cola is the first asset. Just like the TV star's sponsor, its packaging, unlike the Pepsi just turn blue, takes the color code imposed globally by the U.S. giant Coca Cola red and white. But the British brand differentiates intelligently Coca Cola cans by placing one of its female star of the 50s, which gives a past, a story it did not start.

The taste of the drink? The brand commissioned a survey to a famous design office britanniqueen March 1996. Following a blind test results show that 50% of consumers prefer Virgin, 47% coke. The results are identical to Pepsi face. As for its price, it is less than an average of 15 to 20% in the other two. Finally, the last trump, Virgin has the outset strong reputation Virgin: through Megastore and record label. Over 80% of 15-24 year olds know the brand, and this age group is the heart of the target.

The distribution development manager of the Virgin Group in France has made contact with some chains hypermarkets and supermarkets. The great chain of hypermarkets Auchan refused to distribute the product, it was distributed at Monoprix, which concerned rejuvenate its image did not hesitate to participate in the product launch. From June 2, 1996 the product was put into a test radius of 6 months. The results were satisfactory.

In its beginnings, the company has no sales persons, meanwhile Coca Cola and Pepsi employed eache