Calavenna Juices International Marketing Plan

Calavenna Juices, Incorporated
International Marketing Plan

International Marketing Management

Professor Susan P. Douglas

May 3, 2009

Joseph Calavenna

Susan Chen

Rogelio Plasencia

Erica Swallow

Nan Zhang

CALAVENNA JUICES COMPANY BACKGROUND

The Story

In the beginning (Year 2001), Team Calavenna drank orange juice during late night meetings. And
Team Calavenna said, “Let there be lychee juice”; and there was lychee juice. And Team Calavenna saw
that the lychee juice was good; and they combined the two and concocted a wondrous juice blend and a
business idea.

The Product

Our products are ultra premium 100% juices made with exotic fruits to be sold in 1 Liter and 1.75 Liter
bottles, positioned for home use. We will use high-quality, transparent PET plastic for the bottles.
Transparency is key as it will enable us to utilize a sleek, trendy design. All of the packages will exhibit
a uniform aesthetic language. We will not use fruit imagery, but instead will let the vibrant fruit juice
hues speak for themselves behind our transparent bottling. The juices will be flash-pasteurized to
preserve quality and taste. We selected these liter amounts since merchants and consumers are already
used to handling these sizes.

Bottled fruit juice serves a consumer who is on the go, health conscious, or who wishes to make a
statement. Though this product type is not a new sight, our exotic fruit ingredients, a competitive
advantage, add a special twist to a proven consumer goods product. Additionally, the exotic fruit
continues to fulfill the expectations our consumer already has of this product category.

The Company

Calavenna Juices is an environmentally conscious company focused on selling a premium offering to a
discerning consumer. We eschew the typical orange juice product and embrace individuality and
experience. Every creation we put out will have a focus on an ingredient not commonly consumed in
that market. Customer interaction continues after point-of-purchase by combining official recycling
kiosks with deposit incentive programs at neighborhood grocery stores.

We are a young, “green” company in tune with consumer tastes and blessed with angel investors. Our
financial backing provides us flexibility in exploring ways to provide that “yumm...” moment of bliss to
our customer in an environmentally responsible manner.

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INTERNATIONAL MARKETING STRATEGY

Having great success in the United States, Calavenna Juices would like to conduct research into
international marketing expansion. The following section describes four stages of research conducted in
order to discover our next country for entry. These states include: a preliminary screening, an overview
of country indicators, a product marketing screening, and a market infrastructure analysis.

Stage 1: Preliminary Screening

This first stage is a general sifting of countries in order to reduce our consideration set to a manageable
few that fit the most basic target criteria.

Population > 20million

In order to guarantee a large market for our product, we have selected to only consider countries with a
population greater than 20million. A large population will offer the opportunity to develop a consumer
base large enough for success.

PPP per Capita < 10,000

To ensure a wealthier consumer market for our premium juice product, we will only consider countries
with a purchasing power parity of $10,000 (international dollars). This measure of standard of living
and individual wealth is vital because we need to enter a market that is responsive to up-market
products.

Urbanization > 60%

The success of our product depends on access to a sizeable, highly urban market. Urban markets are
characterized by lower price sensitivity and a greater proclivity for premium food products.
Additionally, our entry strategy will initially penetrate this market, and aim to achieve a sizable presence
and a good reputation before attempting to expand to suburban markets.

Conclusion: This initial elimination process has narrowed our focus to 18 countries of sufficient size
and development: Argentina, Australia, Canada, France, Germany, Iran, Italy, Japan, Korea, Mexico,
Poland, Russian Federation, Saudi Arabia, Spain, Turkey, United Kingdom, United States, Venezuela
(See Exhibit A).

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Stage 2: Country Indicators

The general condition of a country has a great impact on the success of our product. We paid especially
close attention to economic factors, political turmoil, and various other risk assessments that could
unnecessarily impede our organization from functioning efficiently.

Six-Year Average GDP Per Capita Growth Rate (> 1%)
We chose an average growth rate of one per cent as we wanted a country that was not only growing, but
growing at a respectable pace. Note that the six-year time frame of the calculation allows for minor
fluctuations in economic growth, as our group was largely interested in the greater economic trends
within a country. This is crucial, as we are entering the market with a premium-positioned product and
expect to do best in a country with a healthy and one could say exuberant economy. Note that all of the
countries entering this phase of consideration passed this requirement except for Italy.

Inflation Rate (< 5%)
Closely related to the rate of GDP growth is inflation, as high GDP growth coupled with high inflation
may make it appear on paper that a country is doing well when in reality it is faltering economically.
Iran is one of the prime examples of this, and incidentally did not pass this requirement. Russia, Turkey,
Venezuela were excluded from further consideration as a result. Moreover, a low inflation rate means
greater stability in various finance-related aspects of business.

Gini Index (< 50)
The Gini Index, or Gini coefficient, is a numerical representation of a country’s income inequality where
a lower value means greater income equality. Greater income equality is beneficial to our strategy as we
are selling a perishable product that aspires to a significant degree of market penetration. Extremely high
income inequality would mean that we would only be able to target a very small portion of the
population, perhaps not enough to maintain a viable enterprise. All of the countries in this phase
qualified using the above cutoff, although Saudi Arabia did not have a published Gini coefficient and
was thus exempted.

Macroeconomic and Political Risk Ratings Better than BBB
Risk is something we are doing our best to manage, so we took into account the following facets of risk
—currency, banking sector, political, economic structure, and country. Combined, they give a view of
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which countries we can expect to have a measure of stability with regards to both its economy and the
political forces that ultimately provide the legal framework. Notably, the two counties here that did not
qualify based on risk factors both have tricky governments openly hostile to Western interests: Iran and
Venezuela.

Overall Risk Rating (<40)
A more holistic picture of risk than the various factors mentioned above, this is a broader measure of
risk that led to a greater number of countries failing to pass. Many of those that had a risk rating above
forty would have been considered to be potentially troublesome places to operate via anecdotal and
other qualitative measures.

Overall Business Environment (> 6)
On a ten point scale, this provides an assessment of how friendly the country is to business. Especially
important to our venture, as our offering has a limited shelf life and will most likely have to be imported,
making it especially sensitive to corruption, bureaucracy, and other issues involved in operating a
business in certain countries.

Conclusion: Ten countries remain: Australia, France, Germany, Japan, Korea, Mexico, Poland, Saudi
Arabia, Spain, and the United Kingdom (See Exhibit B).

Stage 3: Product Market Indicators

Having narrowed down the list of possible countries for the expansion of Calavenna Juices, it is crucial
that an in-depth analysis be carried out to determine which countries present the best fit for our product.
Accordingly, ten indicators were strategically chosen based on our product segment and the current
market conditions in each country. By gathering indicator data on each foreign market we were able to
come up three countries whose market conditions and consumer tastes match our product segment.

Average Personal Disposable Income (> $10,000)
It is important to know how much disposable income consumers have to better understand how likely
they are to buy up-market natural juice drinks. The higher the disposable income, the better chance they
will purchase pricier juices instead of settling for cheaper and lower quality substitutes. As a result, we
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chose to pass only countries that have an average disposable income of over $10,000 to better ensure
that consumers in the market will be able and willing to buy our juices.

Consumer Expenditure on Non-Alcoholic Beverages for 2008 (> $6,000 million)
A good impression of how much consumers spend on beverages can help to shape our understanding of
both the importance consumers place on beverages and their potential willingness to purchase premium
natural juices. It also gives us an impression of consumer budget allocation for beverages; the higher the
allocation the more likely they will be to purchase our juices. Accordingly, we set our scale high at
$6,000 to weed out countries whose consumers might be less willing to purchase our juices.

Annual Per Capita Fruit Consumption (> 60kg)
Considering the nature of our product, it is essential that consumers in our foreign expansion market
exhibit a taste for fruit. As a result, we have chosen to analyze the annual consumption of fruit per
person. We are using this indicator mainly to provide information about consumer interest in fruit, not
how attractive heath foods are to local consumers; we understand that fruit can fill different dietary
positions in different cultures. Accordingly, we have set our scale high at 60kg.

Cola Carbonate Off-Trade Liters per Capita Y-O-Y Growth for 2007-08 (> 3%)
The recent growth rates in cola consumption are important because colas tend to be cheap and appeal to
a broad consumer base. With this measure we are trying to determine how saturated markets are with
colas and how likely consumers might be to start looking to substitutes. Accordingly, we are interested
in moving into markets where the cola industry either exhibits low growth or contraction. We have set
our scale low, at 3% recent growth, to eliminate countries where the cola consumption is still growing
rapidly.

100% Juice Off-Trade Liters Per Capita Consumption in 2008 (> 8 Liters)
To get a better idea of how popular premium 100% juices are and how likely markets are to already be
saturated we looked at per capita consumption in 2008. It is important that we enter a country that
exhibits a mid-ground between saturation and low consumption. To do this we chose to set our scale at
more than 8 liters consumption per person to help us settle on a country that exhibits an interest in
premium juices and growth opportunity in the segment.

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100% Juice Off-Trade Liters per Capita Y-O-Y Growth for 2007-08 (> 0%)
It is important that we get a good idea of likely growth in our product segment and whether or not the
local market is already saturated. To do this we set our scale at greater than 0% growth to eliminate any
countries that exhibit contractions in the premium juice market and highlight countries where
consumption per person is increasing.

Per Capita Vitamin Expenditure for 2008 (> $2)
Per Capita Vitamin Expenditure helps us identify countries whose consumers are interested in health and
wellness. While not many of our countries exhibited high levels of vitamin usage all of them did have
vitamin usage to some degree. We decided to set our scale at $2 because it identifies countries where
consumers are interested in health and wellness but not overly stimulated to the point where they won’t
see the benefit in our natural and healthy juices.

Still Bottled Water Off-Trade Liters Per Capita Y-O-Y Growth for 2007-08 (< 3%)
The recent growth of per person consumption of bottled water helps us to better understand market
conditions. Much like the growth of cola consumption, this indicator illustrates how saturated the
market is with bottled water and how likely consumers are to start switching to substitutes, like juice. It
also shows an interest in health and wellness; consumers will likely move from low priced colas to mid-
priced bottled water. This shift helps us determine how ready consumers might be to take the next step
into premium health-centered drinks. As a result, we chose a low growth scale to eliminate countries
where the market for bottled water is still growing and identify countries where it is contracting.

Fortified/Functional Beverages Y-O-Y Growth for 2006-07 (> 10%)
Growth in this market segment illustrates an increased consumer interest in health, wellness and
beverages that are similar in nature to our premium natural juices. Knowing that a country is
experiencing growth in beverages similar to ours helps us to identify countries whose consumers are
interested in the advantages of our juices. We set our scale at 10% to ensure that we pick a country that
allows us to better capitalize on this segment growth.

Fortified/Functional Beverages Market Size (> $550 million)
Just because a market illustrates growth does not mean that it is a good market to enter. To ensure that
we are not let astray by the growth in fortified/functional beverages we have included an indicator that
eliminates small markets. Accordingly, our $550million scale will weed out all markets that are too
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small and leave only markets that are large enough to risk entering into.

Conclusion: After applying our product indicators and scales we narrowed our list of ten possible
countries into three that fit our product positioning: France, Spain, and the United Kingdom (See Exhibit
C).

Stage 4: Market Infrastructure and Final Choice
After a preliminary screening and reviewing the country and product marketing indicators for each
country that passed through each stage, we conducted further research to determine the market
infrastructure. Ease of advertising will be based on media connectivity, which includes internet,
television, satellite, and mobile phone subscribers. Distribution considerations will be based on the
development of a paved road network.

2008 Internet Connectivity (> 50% of population)
As a modern company, Calavenna Juices will make great use of the internet for information
dissemination, product promotions, commercial advertising, and social networking. As a result, we have
set our internet connectivity rate rather high at 50% of the country population.

2008 TV Connectivity - Color TVs per household (> 2)
As our promotional plan will include a decent amount of television advertising, we must make sure that
the majority of our chosen country’s population owns a television set. We have cutoff of two television
sets per household. This number was based on the fact that the average number of TVs in the U.S.
household is 2.24.

2008 Digital satellite Pay-TV subscribers (> 5 million)
As we hope to market our product as a premium product for a specific high-end consumer base, we want
to target consumers with access to premium channels. Therefore, we have chosen to look at data on
digital satellite subscriptions. This will allow us to advertise on very targeted satellite channels. We have
set our threshold at 5 million subscriptions.

2008 Mobile Phone Subscribers (> 50 million)
As a tech-savvy company, Calavenna Juices has a mobile internet website and wishes to participate in
mobile advertising in any country that we enter. As a result, we must enter a country with a relatively
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high mobile phone subscription rate. We have set our threshold at 50 million subscribers.

Annual Newspaper Circulation (> 10 million)
Newspaper circulation becomes very important for promotional reasons. Therefore, we looked for
countries with high newspaper circulation rates. Total newspaper circulation must be no lower than 10
million subscriptions for all combined publications.

Density of Road Network (km/km² of land) (> 1.5)
For distribution reasons, we have decided to analyze the density of the road network in each country.
We chose a density of 1.5, which relative to the world, is much higher than average.

Proportion of Paved Roads as Percentage of Total Road Network (> 95%)
Although we will enter in urban areas first, in the case of expansion, we want to make sure that the road
network within our chosen country can sustain our distribution demands. Thus, we demand that the
proportion of paved roads must be over 95%.

Language Barrier
A language barrier is a minimal deterrent, but we considered this factor for final evaluation. The United
Kingdom trumps Spain and France, as English is the national language.

Conclusion: Based on our full analysis, the United Kingdom is the best candidate for international
expansion. We discovered that the UK has everything we are seeking: our target market (affluent,
health-conscious consumers), an ideal business environment, highly-developed mass communication
channels, and a developed distribution network (See Exhibit D).

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PRIMARY OBJECTIVES

Our primary objective is to enter the United Kingdom market with our ultra premium 100% fruit juices.
We represent a health-conscious and passionate point of view that we hope to bring to the UK market.

In the short term, Calavenna Juices hopes to achieve high brand awareness and brand knowledge. This
will be possible as we are optimizing distribution through large grocery stores. Furthermore, as time
progresses, we will make a strong effort to increase availability in order to increase visibility and
opportunities for repurchase. We hope that our marketing campaigns will prove fruitful and lead to high
penetration in London, our initial entry market. In the case of successful penetration in London, we will
enter our secondary markets of Birmingham and Glasgow.

With this initial strategy in mind, Calavenna Juices hopes to expand into other developed European
nations where the demand for ultra premium 100% fruit juices is greatest. We will utilize the knowledge
we gain from entering the UK market to further expand into other international markets.

Positioning and Benefits
Our positioning strategy is to position Calavenna Juices as ultra premium 100% juices made with exotic
fruits. Along with this all-natural, healthy position, we hope to achieve status as a lifestyle brand. Along
these lines, we hope to position Calavenna as a juice that you can drink throughout the entire day. Some
consumers treat fruit juices as morning beverages or desserts, but we hope to position Calavenna as a
multi-purpose juice that is all-natural, refreshing and healthy. We will focus on at-home consumption
but will not limit its usage situations.

Furthermore, in order to differentiate ourselves from other conservative and seemingly boring juice
brands, we will use provocative imagery and suggestive advertising to catch the attention of younger
audiences. Our commercials will feature beautiful, healthy people with a true passion for life and
Calavenna Juices. Our communications will focus more on the lifestyle benefits of drinking Calavenna
while highlighting the natural, healthy products that we offer.

We feel that this positioning strategy is unique as most other juices seem to only focus on the health
benefit that juices offer. Very few fruit juices have found themselves in the lifestyle brand arena, as they
do not position themselves holistically in the lives of their consumers. Calavenna Juices is dedicated to
taking a full-circle approach to surrounding our consumers in the Calavenna lifestyle.

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Target Market

Our target market is 25-34 year old young professionals who are health-conscious and environmentally-
friendly. The 25-34 year old age demographic accounts for 14% of the UK population, at about 8
million people. Based on a study conducted by BBC, 25-34 year olds are more up-market than the rest
of the UK population. They are characterized as big spenders who are self-reliant and self-indulgent. As
far as relationships and commitment go, 25-34 year olds are not rushing out to get married and have
kids. Some are settling down, but others remain single. The average age for marriage is 28 for females
and 30 for males. Thus, 25-34 is an age of mixed values, between those of being young and single and
those of starting a family. In essence, this age bracket is in a stage of transition.

The more affluent consumers in this age bracket watch less television, still listen to the radio (especially
during peak listening hours during morning and evening commutes to and from work), shop online, surf
the net, and cannot live without cell phones.

MODE OF ENTRY

Initial Entry Market

After running through our screening criteria, we have selected the United Kingdom as our target
country. Not only was it an attractive market across all facets of our decision-making process, but it fits
our positioning of bringing exciting and exotic juices to a dreary market that has had very little exposure
to such a product.

The largest market within the United Kingdom by a significant margin is the greater London
Metropolitan Area, with a population of nearly 7.2 million. It will be our main entry market for the
product and the focus of the majority of our in-store and outdoor promotional efforts. Secondary markets
are Birmingham and Glasgow, the two next-largest cities with populations of almost 1 million and over
620,000, respectively. While our television and other broad-reach media advertisements will receive
exposure throughout the country, the sheer size and density advantage of London makes it the only
viable target for the various innovative promotional activities we have envisioned.

Distribution

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As an ultra-premium product designed for at-home consumption, we will be solely reliant on sales
through grocery retailers opposed to sales for on-premise consumption at restaurants and bars or sales
through convenience stores or small vendors. Our offering was specifically designed to exclude single-
serving sizes as would be offered at many of the aforementioned venues.

Our product will be distributed through an already-established beverage distributor with an aim of
reaching most major supermarket chains and an especial emphasis on the more up-market grocers such
as Marks & Spencer and Whole Foods. While we would not object to wider distribution of our product,
our in-store promotional efforts will be held at those stores that are most compatible with our image. The
advantage of this arrangement is that the already-established distributor has pre-existing relationships
with the supermarkets, and we will be able to rely on their expertise and knowledge of market conditions
to obtain the best retail placement. Moreover, creating a distribution arm—especially in a foreign
country—is an incredibly difficult and time-consuming process and not an aspect of business we are
ready or willing to involve ourselves in given the myriad other responsibilities that entail a product
launch.

International Operations

Our United States headquarters are in Half Moon Bay, California. All marketing campaigns and sales
promotions are created and distributed from our U.S. headquarters. We have chosen not to set up a
headquarters office in the United Kingdom as we are neither producing fruit juices nor managing
distribution channels from within the country. However, our business relied strongly on sea shipping.
We have two production plants throughout the world (See Exhibit S).

• Santos, Brazil Concentration Production Plant: Our Santos, Brazil production plant is
conveniently located near the Porto de Santos, the largest shipping port in Latin America. We
have strategically located our plant in Santos to take advantage of the port, as well as the
abundant supply of exotic fruits grown in Brazil and neighboring countries. All exotic fruits
grown in the area will be shipped by land to our Santos factory and concentrated.

• Trieste, Italy Reconstitution Product Plant: Our Trieste, Italy production plant is located
within the Free Trade Zone at the Port of Trieste. As the Trieste plant will be used as a
transshipment plant, we are excited to take advantage of the relaxed transshipment regulations
and lack of customs duties in the special economic zone. The concentrated fruit powder will be
shipped to the Trieste plant, where it will be reconstituted using locally-procured 100% pure
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white grape juice. Because all of our ingredients are made from 100% fruit juices, and not
reconstituted using water, we are still able to label our juices as 100% natural fruit juice. After
the juice is reconstituted and packaged, we will ship it via sea to the Port of London Authority,
where it will then be distributed (See Exhibit H for Shipping Costs).

MARKETING MIX

Product

Calavenna Juice is an ultra premium 100% juice product made with only the finest of exotic ingredients.
Our product is available in six flavors that are both delicious and healthy, playing to the health conscious
nature of our target market. Our juices are not only delicious and healthy but they are made with the
finest exotic fruits and because of that we are making no changes to our flavors for the United Kingdom
market. None of the fruits our juices are based around are native to the United Kingdom and so the
introduction of these flavors into the market, while not completely novel, do not need changing (See
Exhibit F for Calavenna Juices Product Flavor Assortment).

Packaging

All Calavenna Juices are housed in sleek and trendy transparent plastic bottles that are easy to hold and
pour. The bottle graphics on each bottle are simple and uniform making for an elegant yet approachable
aesthetic. Additionally, there will be no fruit imagery on the the bottles allowing the rich and vibrant
colors of the juices, visible through the bottle, speak for themselves set off by the plain lettering of the
company and juice name. They come in two different sizes: 1 and 1.75 liters because they are designed
to be taken home and enjoyed slowly, not as a grab-and-go indulgence. While not ergonomically
designed, the circumference of the bottle is designed to make it easy for one to pour out the contents into
a glass. We have chosen to use PET plastic specifically because of its excellent performance as a liquid
barrier, its varied and long list of recycled uses, as well as its excellent candidacy for thermal disposal.
These recyclable qualities of PET are especially important because of the correlation between health
conscious and environmentally conscious consumers (See Exhibit E for Product Packaging).

Distribution

The best placement approach for Calavenna Juices is to most heavily target higher end grocery stores
like Marks & Spencer and Whole Foods. We will participate in direct distribution with these two stores
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and provide trade discounts. These relationships will allow us to most efficiently solidify our products as
high-end premium quality products. Additionally, they will be placed in the juice section adjacent other
off-premise-consumption 100% juices, not with grab-and-go style juices. It is important that we
illustrate to the market that we provide a higher quality product that is worth the higher price.

Price

Our pricing strategy will be very similar to other premium juices, such as Pom, Naked and Odwalla. On
shelf prices will be £6 per Liter and £9 per 1.75 Liter. Our direct prices to distributors will be 20% less
than shelf prices, placing direct prices at £4.80 per Liter and £7.20 per 1.75 Liter. We will offer trade
discounts to premium grocery stores, such as Marks & Spencer and Whole Foods.

Promotion

As our first excursion outside of the United States and as the initiation of our entry into the UK and the
broader European market, our promotional activities are very important. First, we aim to build
awareness for our product aimed at stimulating trial and purchase. More importantly, however, we are
also very serious about establishing our brand personality in this new market. We face strong
competition in our product segment, and we understand that a differentiated brand is essential to our
growth and survival.

Country Factors Effecting Media Outlets

The UK is a very developed national market which was key to our entry decision, but also poses
complications in itself. Our target market is well-represented and avenues for mass communication are
plentiful. However, we must be conscious of the increasing ineffectiveness of such mass media outlets,
including television and newspaper. While our promotion strategy includes such outlets, we are aware of
other media options and plan to fully utilize alternative forms of advertising.

Keeping this in mind, our promotion strategy will be highly reliant on non-traditional advertising, as we
see high potential in social networking, online, and guerilla marketing. Our website will be full of
information on our company and products, as well as lifestyle information. We will also attempt to
engage our online audience through mediums, such as YouTube, Facebook, Twitter, and related blogs.

We will also lend vast resources towards in-store promotions to increase product visibility. And lastly,
we will feature some traditional advertising to increase product awareness and knowledge levels, such as
magazine, newspaper and television promotions.
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Message

Our promotional communication will highlight two main features of Calavenna: Natural and Cool. Our
products are 100% juice and every blend includes a different exotic fruit offering. We feel that by
developing a direct association between Calavenna and “natural” we will get consumers to focus on the
unique beverage blend variety our product line offers. Furthermore, this direct association has the added
quality of automatically garnering Calavenna juices the subconscious associations of healthy and fresh
that consumers normally make with “natural.” Our message also focuses on transmitting the youthful,
trendy, and fun brand personality of Calavenna. In essence we aim to create a “Cool” factor. The
individuals in advertising must represent a young and hip consumer, and the presentation of the product
must be lively and appealing.

Additionally, we remained constantly aware about the immense importance of breaking through the
clutter of advertisement for our communication to have any effect. To address this, all our
communication is developed with an emphasis on “standing out”. For Calavenna, “standing out” means
using a different approach to communicate our message than that which is typical for the juice industry.
Our advertisements will consist of edgy humor and racy imagery to deliver our message interestingly
and capture the viewer’s attention. By creatively utilizing edgy and racy characteristics we also hope to
create buzz around our brand which we can use in viral promotional efforts to speed the spread of
awareness in the market.

Commercials

We have sketched five video commercials. Below you will find the synopses of these commercials.

1) Adam and Eve

Synopsis: A very attractive Eve is convinced by the snake to pick from the Tree of Wisdom. She returns
to Adam, and offers him what she’s picked. She hand’s Adam a bottle of Calavenna. “Calavenna all
natural juice, that will quench all your desires.” (See Exhibit Q).

2) Garden

Synopsis: In an English county-side setting, an attractive wife tells her husband she will be picking
something fresh and different for him. She goes out to their garden with a basket, exchanging sultry
glances with her handsome husband. She reaches into the dirt and with a little struggling, pulls a
Calavenna bottle out of the ground placing it in her basket.
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3) School Boy

Synopsis: A young boy ponders about what he can get his teacher. Suddenly he leaves his friends,
running toward a tree in the opposite direction from his school bus. He Arrives last to his class and is
greeted by his very attractive teacher, whose desk is covered in apples. Confidently, he mentions he
“picked” her a “different” gift, and hands her a bottle of Calavenna. The teacher is impressed, and
smiles.

4) Brazilian Fruit Merchant

Synopsis: A handsome young merchant emerges from a fruit jungle with a basket on his head. The
proceeding shots show him walking along a road, and finally through a crowded fruit market. An
attractive young girl asks him what he has to offer her. The young man replies, “Only the freshest” and
reveals he has been carrying Calavenna (See Exhibit R).

5) Indian Market

Synopsis: A young Indian woman wonders through a busy fruit market with vendors trying to sell her a
variety of “fresh fruits.” She makes eye contact with a handsome young vendor. He whispers to her I
have something more exotic, and pulls back a tarp to reveal a Calavenna display.

These advertisements play on the suspense of hiding the “fruit” to later reveal that the unique and fresh
fruits being picked are actually bottles of Calavenna. The viewer is expected to make the conclusion
that the juice is just as “natural” as real fruit. By implying this association and having the viewer make
the connection themselves, the viewer is more likely to retain the association. By utilizing Eve and
Adam as characters in our first commercial we hope to establish an edginess that should translate to
cool. The commercials will be followed with the line, “Try something new, fresh, and exotic. Pick a
bottle of Calavenna,” Reemphasizing the natural quality, highlighting exotic in reference to our fruit
selection, and reinforcing a trial of the product. The videos will be featured in television spots and on
our YouTube channel. We hope that they go viral via YouTube. These video commercial will also be
transitioned to print formats that still play with “picking” the product and the brands edgy and racy
character.

Print

Building off the imagery of the commercials, we will place print advertising in local London
newspapers, and in targeted women’s interest magazines. We have detailed our print allocations in
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Exhibit M(a). Reach data for print was acquired from ABC Group, and price estimates were found via
selected sources quoted averages. The choices were made to maximize our targeted goals for reach.
Our newspaper advertisements will be place in The Times (London) and The Daily Telegraph, which
didn’t have the highest reach but were more prestigious publications with a closer alignment to our
target. We will begin our magazine placements with Vanity Fair, British Vogue, and Cosmopolitain.
These magazines were selected for their specific target of wealthier affluent women, and their ability to
propel consumer trends.

Print advertisement will be a variation of the commercial advertisements mentioned above. They will
emphasize natural and cool in the messages, and retain the exotic, seductive, and “juice as fruit” themes
of the television commercials. All print advertising must prominently display our logo and feature the
actual product (Exhibit R).

Web Presence

Calavenna’s product launch will be accompanied by a very strong web presence. We strongly support a
web promotional campaign as consumers are tending to be less affected by traditional advertising, and
because the interactive, opt-in nature of web marketing is much better at capturing consumers. A very
thorough and sleek website will present the Calavenna product line and highlight the natural and exotic
contents of the product. Upon launching our television commercials, these videos will also be made
available on the site, sent to key bloggers and uploaded to social networking sites, such as Facebook,
Twitter and YouTube. By spreading the videos virally through these sites, we can drive potential
consumers to our website where they can have a more engaged experience through which to learn about
the product. The website will include images from promotional events (at which people will be referred
to the site), postings about future events, and information for contests in the future. We will also launch
a Twitter account in which various company representatives will update fellow Tweeters of company
news, product launches, upcoming events and promotions. This will also spur referrals to our website.
(See Exhibits N and O for Social Networking Page Examples)

Alternative Marketing

To forge through the clutter of traditional media outlets, Calavenna will also launch alternative
campaigns. While these will include advertising in London’s Tube using CBS Outdoor, we will focus
on sample and point-of-purchase ads. As a signature to major public installations, we will have a large
artificial tree from which Calavenna bottles will hang in the place of fruit, and from below which

Calavenna 17

samples or other promotional material can be distributed. This can be installed at locations like
Piccadilly Circus in London, or other high traffic, trendy sites (See Exhibit P). As we had mentioned,
these events will be tied back to the website, by collecting photographs of people sampling the product,
and directing them to the website for viewing. The same “juice as fruit” concept will be used in point-
of-purchase advertising. We will set up similar tree installations in aisle next to our product. Though
this may prove more expensive than anticipated, we are strongly support point-of-purchase advertising,
as research has shown, that consumers most frequently make their purchase decision in store.
Additionally, the increase of point-of-purchase advertising requires an daring and ostentatious in store
ad in order to grab a consumers attention. The alternative marketing campaign budget is left open in
order to stimulate more ideas over time in response to consumer reactions to initial campaign and to stay
current with promotional activities.

Money

Funding for Calavenna Juices will come from angel investors and venture capital investors. Although a
slight more “expensive” form of capital than pure debt, we believe having investors who are
knowledgeable about the packaged foods and beverages industry will give us invaluable advice and
provide essential connections to suppliers, distributors, and retailers. We do not foresee the availability
of financing being a problem, as the company does not have extensive capital requirements. Moreover,
our assets in Brazil and Europe are not highly specialized facilities, which means a relatively simple
liquidation process if it should come to that.

Measurement

To measure the effectiveness of our advertising campaigns, Calavenna Juices will aim to measure public
opinion and knowledge of Calavenna Juices and our various product offerings. We will administer
surveys during our first month of entry and quarterly. Furthermore, we will track sales data and use it to
determine necessary changes in promotion strategy. Measurement will be an ongoing endeavor in order
to adjust marketing allocations to mediums or sources that will be more effective or reach new segments
of our target.

Calavenna 18

FINANCIAL PROJECTIONS

Sales Revenue

To calculate sales revenue, we calculated sales forecasts for our two product sizes. This total was
calculated in Pounds Sterling (GBP) and converted to dollars (USD), in order to match the currency in
which our business generally operates. The UK juice products and health drinks market is around $4.4
billion USD. Based on our projections, by the year of 2019, Calavenna Juices will hold 2% market
share. Our sales will roughly begin at $39.6 million USD with a 0.9% market share and will eventually
grow to $88.2 million USD by 2019 (See Exhibits I and J).

Expenses

In determining our selling, general and administrative expenses (SG&A), we examined the income
statements of our closest competitors, Odwalla and Naked Juice and extrapolated Calavenna Juices’
expenses. Based on our observations, we calculated our Cost of Goods Sold (as a percentage of revenue)
to be 49% and our SG&A (as a percentage of revenue) to be 47%. These were both averages among our
competitors in similar operating conditions to ours. Our Cost of Goods Sold expense includes all
production and labor costs related to production, while our SG&A expense includes combined payroll
costs and advertising expenses.

Analyzing our sales data, we calculated the kilograms sold each year for our two products – the 1 Liter
and 1.75 Liter bottles. The combined weight was used to find shipping costs from our Santos, Brazil
factory to our Trieste, Italy factory and from Trieste, Italy to London (See Exhibit H). For the first year,
our shipping costs totaled $455,000 USD.

Based on industry averages, our marketing budget was set at $4.5 million USD. We will base our future
marketing expenses on sales successes, but expect a 5-6% increase in marketing expenses each year in
order to maintain our premium branding position (See Exhibits L and M).

Cash Flows

During our first year of operations in the UK in 2010, we have a net loss of just over $2.5 million USD.
This loss was anticipated due to the need for us to buy the 30,000 feet2 Trieste, Italy factory at a hefty
price of $3 million USD. However, in our second year of income, we begin to slowly recover and break
even at just over $647,000 USD. From there, our profits gradually increase each year. By 2019, our net

Calavenna 19

income is projected to be over $1.5 million USD. With an assumed interest rate of 5%, Calavenna
Juices’ Net Present Value is $4,354,377 (See Exhibits I and J).

CONTINGENCY PLAN

Because this is our company’s first move into the international market, we are prepared for a less than
enthusiastic market. In case this happens, we will conduct careful market research into possible causes,
whether it be our marketing approach, distribution channels, ingredients mix, etc. If further attempts to
sell our premium beverage in London do not take off, we shall simply move downmarket. We will
reposition our product from a premium beverage into a middle market one, simply by adding more water
or grape juice as necessary. In accordance, our marketing costs would decrease as this type of consumer
does not demand expensive and exciting advertising to believe that our product makes them unique.
Our beverage would be positioned as an inexpensive fruit drink with a tinge of exotic ingredients. This
reaches the consumer who views our product like an affordable luxury, much in the same way Starbucks
coffee is viewed by the majority of its middle class consumers. For the possibility of this modified
beverage not selling well, we shall pull out of our European operations completely. We will sell our
operations and our factory in Italy to another fruit juice company or interested buyer. Finding a buyer
helps ensure we recoup as much of our initial costs as possible.

FUTURE

As stated in our primary objectives, Calavenna Juices hopes to use London as a jumping off point into
expansion into the UK. Beginning our international operations in just one city means we have room to
make adjustments to the market as we learn more about our target market. If our business in London
proves successful, we shall expand into Birmingham, England and Glasgow, Scotland, since both of
these cities have one of the highest populations in the UK. Expansion into these two cities hinges on
market research to ensure that we would be operating in a similar business environment. We realize that
simply doing well in London does not guarantee success throughout the rest of the UK, so we will limit
distribution to these two cities. This small-scale expansion does not call for major costs, as we will be
utilizing pre-existing shipping and distribution channels. We will simply need to accost for road delivery
from London to the respective cities – a negligible cost. Refrigerated transportation to Glasgow should
Calavenna 20

not pose a great hindrance, since an established road infrastructure already exists. Additionally,
expanding into two other cities calls for re-allocation of company resources, should one city under
performs much more than the other two.

If our businesses in these two cities are successful as well, we shall consider the three UK cities a good
enough exposure for us to expand tentatively into Western Europe, in select cities. Expansion into the
European continent will depend on cities with an adequate interest in our premium product along with
the many other indicators we used to reach London during Calavenna’s extensive screening process.
Further exhaustive market research will determine the similarities and disparities between consumer
preferences and the appropriate marketing approach.

Calavenna 21

EXHIBITS

Exhibit A: Preliminary Indicators

Population (thousands) PPP per capita (int'l
Country >20 million dollars) < 10,000 Urbanization > 60%
Argentina 39,503 12,990 88
Australia 21,017 33,340 91
Canada 32,976 35,310 79
France 61,707 33,600 76
Germany 82,268 33,530 88
Iran, Islamic Rep. 71,021 10,800 65
Italy 59,375 29,850 67
Japan 121,733 34,600 79
Korea, Rep. 48,530 24,750 83
Mexico 105,281 12,580 75
Poland 38,061 15,330 63
Russian Federation 141,983 14,400 73
Saudi Arabia 24,196 22,910 87
Spain 44,879 30,820 78
Turkey 73,888 12,350 66
United Kingdom 61,034 33,800 90
United States 301,621 45,850 77
Venezula, RB 27,467 11,920 87

Countries Reviewed: 209
Countries Passed: 18

Source: World Development Indicators database, World Bank, revised 17 October 2008

Exhibit B: Country Indicators

6 Year Inflation Banking Economic
Average GDP Rate < Gini Index < Sovereign Currency sector risk Political structure Country Overall Risk Overall Business
Country Per Capita 5% 50 risk > BBB risk > BBB > BBB risk > BBB risk > BBB risk > BBB Rating < 40 Environment > 6
Argentina 8.45 a a CCC B B B B B 48 6
Australia 3.10 a a BBB BB BBB AA BB BB 36 8
Canada 2.38 a a AA AA AA AAA AA AA 17 9
France 1.78 a a A A BBB AAA A A 19 8
Germany 1.43 a a AA A BBB AA AA A 18 8
Iran, Islamic Rep. 5.78 a B B CCC CCC BB B 55 4
Italy 0.80 a a BBB A BBB A A BBB 32 7
Japan 1.62 a a BBB A A AA BBB A 23 7
Korea, Rep. 3.12 a a BBB BBB BB BBB BBB BBB 34 7
Mexico 5.10 a a BBB BBB BBB BBB BBB BBB 34 7
Poland 7.10 a a BB BB BB BBB BB BB 37 7
Russian Federation 5.17 a BBB BB B B BB BB 43 6
Saudi Arabia 4.08 a NA BBB BBB BBB B BBB BBB 31 6
Spain 3.13 a a AA A BBB A A A 27 8
Turkey 6.18 a BB B BB BB BB B 50 6
United Kingdom 2.37 a a AA A BBB AAA A A 24 8
United States 2.48 a AA A BBB AA A A 24 8
Venezula, RB 7.58 a B CCC CCC CCC B CCC 61 5

Countries Passed: 10

Source: CIA World Fact Book, EIU CountryData, EIU Risk Service

Calavenna 22

Exhibit C: Product Market Indicators

Consumer 100% Juice Still Bottled Fortified/
Expenditure on Cola Carbonate Off-Trade 100% Juice Off- Water Off- Functional
Average Non-Alcoholic Off-Trade Liters Liters Per Trade Liters Per Per Capita Trade Liters Per Beverages Fortified/
Country Personal Beverages for Annual Per Per Capita Y-O- Capita Capita Y-O-Y Vitamin Capita Y-O-Y Y-O-Y Functional
Disposable 2008 Capita Fruit Y Growth for Consumption Growth for Expenditure Growth for Growth for Beverage
Income (> $6,000 Consumptio 2007-08 in 2008 2007-08 for 2008 2007-08 2006-07 (> Market Size
(> $10,000) million) n (> 60kg) (≤ 3%) (> 8L) (> 0%) (> $2) (< 3%) 10%) (> $550million)
Australia 26,037 5,944.90 67.1 -4.8 23.4 -5 17.9 2.1 26.5 999.6
France 29,469 16,626.90 87 2.3 13.3 1.6 4.5 -6.1 10.4 573.1
Germany 28,610 28,857.80 65.4 5.1 15.7 -5.8 5.1 9 7 1568.8
Japan 24,256 23,291.50 56.1 7.1 7.4 -5.2 43.4 7.6 -1.1 8137.6
Korea, Rep. 6,769 21,918.80 91.9 -1.1 2 13.6 5 5 10.3 1827.4
Mexico 8,799 5,590.50 39.4 10.3 7 -0.6 4.7 4.2 10.8 1189.7
Poland 5,817 8,352.60 35 3 12.2 4.4 1.8 5.5 40.6 421.2
Saudi Arabia 11,122 3,658.90 63.1 1 2.4 -3.4 11.8 2.8 5.3 505.9
Spain 22,665 7,918.10 102.6 -1.2 8.8 0.1 2.3 -2.4 21.8 827.1
United Kingdom 28,351 18,887.00 65.2 -0.4 20.8 0.7 6.9 1.6 20.2 3636.7

Countries Passed: 3

Source: Euromonitor, Global Market Information Database

Exhibit D: Market Infrastructure Indicators

2008 TV 2008 Digital 2008 Mobile Annual Proportion of
2008 Internet Connectivity - Color satellite Pay-TV Phone Newspaper Density of road paved roads - %
Country
Connectivity (% of TVs per household > subscribers Subscribers Circulation network - km per of total road
population) > 50% 2 (millions) (million) > 50 (millions) > 10 sq km of land network > 95%
France 49.1% 2.7 5.47 57.13 14.49 1.9 100
Spain 43.9% 1.6 2.15 49.94 2.15 1.3 99
United Kingdom 65.9% 2.7 8.06 76.57 47.42 1.6 100

Countries Passed: 1

Source: World Development Indicators database, Euromonitor International

Calavenna 23

Exhibit E: Calavenna Juices Product Packaging

Calavenna 24

Exhibit F: Calavenna Juices Product Flavor Assortment

Lychee: Our lychee juice is carefully crafted to preserve the delicious and delicate flavor of the fresh
lychee. It is made with only the freshest hand-picked fruits to retain its exquisite natural flavors.

Passion Fruit: Our passion fruit juice preserves the exotic and delicious flavors of the pulp that
surrounds the black seeds of the passion flower. We carefully extract this pulp from around the seed and
produce an immensely satisfying exotic experience.

Mango: Calavenna Juices use only the freshest Alphonso mangoes, also known as the ‘King of
Mangoes’ to produce this tantalizingly sweet and delicious juice.

Guava: Our guava juice is marvelously aromatic and sweet, providing a high vitamin c content in
addition to other beneficial health properties. This juice is made with both white and pink guavas to
provide the most dynamic and distinctive flavor possible.

Papaya: A sweet and delicious juice with a velvety consistency and rich orange color. Papaya provides
a load of health benefits as a source of antioxidants like Vitamin C and lutein. Calavenna only uses the
finest papaya’s, prepared by experts who carefully remove the peppery black seeds and crush the flesh
to produce our premium juice.

Pomegranate: Calavenna Juice really preserves the mythological history of the pomegranate in this
juice by creating a juice so rich and delicious it is suited for the gods. Each pomegranate is carefully
selected to ensure that only the finest seeds are used to make the best possible pomegranate juice.

Calavenna 25

Exhibit G: Calavenna Juices Logos

Calavenna 26

Exhibit H: Shipping Costs

Shipping Costs
From Trieste, Italy to London

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sold (kg) 5,000,000 8,085,581 8,430,701 9,162,801 9,555,500 10,483,150 10,846,170 11,815,651 12,156,790 13,273,051
Per Box (kg) 50 50 50 50 50 50 50 50 50 50
Boxes Ordered 100,000 161,712 168,614 183,256 191,110 209,663 216,923 236,313 243,136 265,461
Shipping Cost Per Box* $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50 $ 4.50
Total Shipping Cost $ 450,000.00 $ 727,702.72 $ 758,763.60 $ 824,652.67 $ 859,995.32 $ 943,483.74 $ 976,155.62 $ 1,063,409.31 $ 1,094,111.18 $ 1,194,575.19

Shipment Notes
One shipment contains 50,000kg, which is 1,000 boxes
50kg per box
*4.50 quoted by Maersk Line Sea Shipping

Shipping Costs
From Santos, Brazil to Trieste Italy

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Sold (kg) 5,000,000 8,085,581 8,430,701 9,162,801 9,555,500 10,483,150 10,846,170 11,815,651 12,156,790 13,273,051
Concentrate (kg) 500,000 808,558 843,070 916,280 955,550 1,048,315 1,084,617 1,181,565 1,215,679 1,327,305
Per Box (kg) 50 50 50 50 50 50 50 50 50 50
Boxes Ordered 10,000 16,171 16,861 18,326 19,111 20,966 21,692 23,631 24,314 26,546
Shipping Cost Per Box* $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50 $ 0.50
Total Shipping Cost $ 5,000.00 $ 8,085.58 $ 8,430.70 $ 9,162.80 $ 9,555.50 $ 10,483.15 $ 10,846.17 $ 11,815.65 $ 12,156.79 $ 13,273.05

Shipment Notes
One shipment contains 10,000kg, which is 1000 boxes
10kg per box
*4.50 quoted by Maersk Line Sea Shipping

Total Global Shipping Costs

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Trieste to London $ 450,000.00 $ 727,702.72 $ 758,763.60 $ 824,652.67 $ 859,995.32 $ 943,483.74 $ 976,155.62 $ 1,063,409.31 $ 1,094,111.18 $ 1,194,575.19
Santos to Trieste $ 5,000.00 $ 8,085.58 $ 8,430.70 $ 9,162.80 $ 9,555.50 $ 10,483.15 $ 10,846.17 $ 11,815.65 $ 12,156.79 $ 13,273.05
Total Global Shipping Costs $ 455,000.00 $ 735,788.30 $ 767,194.30 $ 833,815.47 $ 869,550.82 $ 953,966.89 $ 987,001.79 $ 1,075,224.97 $ 1,106,267.97 $ 1,207,848.24

Exhibit I: Revenue Forecast 2010-2019

Revenues
2010 2011 2012 2013 2014
$ 39,611,700 $ 43,297,298 $ 47,325,816 $ 51,729,160 $ 56,542,205

2015 2016 2017 2018 2019
$ 61,803,071 $ 67,553,425 $ 73,838,810 $ 80,709,007 $ 88,218,429

Calavenna 27

Exhibit J: Calavenna Juices, Inc. Income Statement

Ending Market Share 2%
Size of Market $ 4,410,921,441
GBP Rate 1.4671
#Yrs to Ending Market Share 10
First Year Sales $ 39,611,700.00
Growth Rate 9%
Cost of Goods Sold %
(as % of Revenue) 49%
SG&A %
(as % of Revenue) 47%
Tax Rate 35%

Year of Operation 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Market Size $ 4,410,921,441 $ 4,410,921,441 $ 4,410,921,441 $ 4,410,921,441 $ 4,410,921,441 $ 4,410,921,441 $ 4,410,921,441 $ 4,410,921,441 $ 4,410,921,441 $ 4,410,921,441
Market Share % Goal 0.90% 0.98% 1.07% 1.17% 1.28% 1.40% 1.53% 1.67% 1.83% 2.00%
GBP rate 1.4671 1.4671 1.4671 1.4671 1.4671 1.4671 1.4671 1.4671 1.4671 1.4671

Sales (Units of 1L Juice) 1,500,000 2,000,000 2,000,000 2,500,000 2,500,000 2,500,000 3,000,000 3,500,000 4,500,000 5,000,000
Price per Unit £ 6.00 £ 6.00 £ 6.30 £ 6.30 £ 6.62 £ 6.62 £ 6.95 £ 6.95 £ 7.30 £ 7.30
Total Sales (GBP) £ 9,000,000 £ 12,000,000 £ 12,600,000 £ 15,750,000 £ 16,537,500 £ 16,550,000 £ 20,853,000 £ 24,325,000 £ 32,838,750 £ 36,500,000

Sales (units of 1.75L Juice) 2,000,000 3,477,478 3,674,690 3,807,319 4,031,716 4,561,802 4,483,528 4,751,805 4,375,309 4,727,462
Price per Unit £ 9.00 £ 9.00 £ 9.45 £ 9.45 £ 9.92 £ 9.92 £ 10.42 £ 10.42 £ 10.94 £ 10.94
Total Sales (GBP) £ 18,000,000 £ 31,297,298 £ 34,725,816 £ 35,979,160 £ 40,004,705 £ 45,253,071 £ 46,700,425 £ 49,513,810 £ 47,870,257 £ 51,718,429

Total Sales (USD) $ 39,611,700 $ 43,297,298 $ 47,325,816 $ 51,729,160 $ 56,542,205 $ 61,803,071 $ 67,553,425 $ 73,838,810 $ 80,709,007 $ 88,218,429
Cost of Goods Sold (USD) $ 19,409,733 $ 21,215,676 $ 23,189,650 $ 25,347,288 $ 27,705,681 $ 30,283,505 $ 33,101,178 $ 36,181,017 $ 39,547,413 $ 43,227,030
Shipping Costs $ 455,000 $ 735,788 $ 767,194 $ 833,815 $ 869,551 $ 953,967 $ 987,002 $ 1,075,225 $ 1,106,268 $ 1,207,848
Gross Profit $ 19,746,967 $ 21,345,834 $ 23,368,972 $ 25,548,056 $ 27,966,974 $ 30,565,599 $ 33,465,245 $ 36,582,568 $ 40,055,326 $ 43,783,550

SG&A $ 21,617,499 $ 20,349,730 $ 22,243,134 $ 24,312,705 $ 26,574,836 $ 29,047,443 $ 31,750,110 $ 34,704,241 $ 37,933,233 $ 41,462,662
Operating Profit $ (1,870,532) $ 996,104 $ 1,125,838 $ 1,235,351 $ 1,392,137 $ 1,518,156 $ 1,715,135 $ 1,878,327 $ 2,122,092 $ 2,320,889

Taxes $ (654,686) $ 348,636 $ 394,043 $ 432,373 $ 487,248 $ 531,355 $ 600,297 $ 657,415 $ 742,732 $ 812,311
Net Income $ (2,525,218) $ 647,467 $ 731,795 $ 802,978 $ 904,889 $ 986,801 $ 1,114,838 $ 1,220,913 $ 1,379,360 $ 1,508,578
Calavenna 28

Exhibit K: Projected Net Income, 2010-2019

Net Present Value (NPV) = $4,354,377

Calavenna 29

Exhibit M(a): Advertising Mix Summary

Magazine
Average cost per number of
Publication Type Circulation Issue months Total Cost
Vanity Fair Women's Interests:Women's Lifestyle/Fashion 59,337 $17,000 6 $102,000
British Vogue Women's Interests:Women's Lifestyle/Fashion 164,010 $20,000 6 $120,000
Cosmopolitain Advertising Mix Women's Interests:Women's Lifestyle/Fashion 388,023 $22,000 6 $132,000
Final Total $354,000
Magazine
Newspaper
Publicat ion Net Circulation Average Cost per Week Average cost al
# of I ssues Tot number of Total
The Times (London) Publication Type 618,160 Circulation
$70,000 per Issue5 months
$350,000 Cost
The Daily Telegraph Vanity Fair Women's Interests:Women's Lifestyle/Fashion
842,912 $80,000 59,337 $17,000
5 $400,000 6 $102,000
British Vogue Women's Interests:Women's Lifestyle/Fashion 164,010Total $20,000
Final $750,000 6 $120,000
Cosmopolitain Women's Interests:Women's Lifestyle/Fashion 388,023 $22,000 6 $132,000
Final Total $354,000
Television
Station Cost of Slot/30 second slots
Newspaper Total
BBC Publication Net Circulation $200,000 Cost per Week # of Issues
Average Total
Channel 4 The Times (London) $200,000
618,160 $70,000 5 $350,000 * Will be using t
FIVE The Daily Telegraph $200,000 $900,000*
842,912 $80,000 5 $400,000 newspapers in L
* Must factor in estimated $200,000 to produce three commercials in one year. Final Total $750,000 Greater London
Television Northcliff Media
Station Cost of Slot/30 second slots Total * Must factor in
Internet Banner Advrtising
BBC $200,000 estimated $200,000 to
Estimated # of targeted websites Average Cost per month #of months Total Final
Channel 4 $200,000 produce three
10 $1,500 6 $90,000 $190000*
FIVE $200,000 $900,000* commercials in one
*Additional expense on Website personel and Digital Marketers of 100,000
Internet Banner Advrtising
Estimated # of targeted websites Alternative Marketing
Average Cost per month #of months Total Final *Additional expe
Aspect 10 Cost $1,500 6 $90,000 $190000* and Digital Mark
Out Door Installations $400,000
Promotional Material Alternative Marketing $300,000
Aspect
Additional Cost $200,000
Out Door Installations $400,000
Total $900,000
Promotional Material $300,000
Additional $200,000
Total In Store Promotion $900,000
Type Estimated Costs
Shelf Instalation In Store Promotion $600,000
Type
Promotional Materials Estimated Costs $300,000
Shelf Instalation
Final Total $600,000 $900,000
Promotional Materials $300,000
Final Total
CBS Outdoor Advertising Pack $900,000 $500,000
* Negotiable package for bilboard, poster, and subway signage.
CBS Outdoor Advertising Pack $500,000 * Negotiable package for bilboard, poster, and subway signage.

Total Costs
Type of Media Cost Percent of total
Magazine $354,000 8%
Newspaper $750,000 17%
Television $900,000 20%
Internet $190,000 4%
Alternative Advertising $900,000 20%
In-Store Promotion $900,000 20%
CBS Outdoor Advertising $500,000 11%
Total $4,494,000 100%

Calavenna 30

Exhibit M(b): Advertising Mix Summary

Calavenna 31

Exhibit N: Calavenna Juices Twitter Page

Exhibit O: Calavenna Juices Facebook Page

Calavenna 32

Exhibit P: Calavenna Juices Tree

Calavenna 33

Exhibit Q: Adam and Eve Commercial Storyboard

Calavenna 34

Exhibit R: Brazilian Fruit Merchant

Calavenna 35

Exhibit S: International Logistics

Calavenna 36

Calavenna Juices International Marketing Plan

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