M02 · Introductory
M02 · Applied project
Launch plan for Lantern Cold Brew
Fictional case
Ana Lim is about to launch Lantern Cold Brew, a 250 ml can of cold brew, in Harbour City. She has asked you for a launch plan: which liquid and range, what price, which channels and how to spend the promotion budget, with a one-page recommendation she can take to her board. Lantern, Harbour City, its retailers and its competitors are all fictional, and so is every figure.
The market file sets the facts. About 4,800,000 cans of ready-to-drink coffee are sold in Harbour City a year, 25% more than an average quarter in the third quarter (summer) and 15% fewer in the first and fourth. Three brands share the shelf: Summit Brew (premium, $3.79, taste score 8, known to 60% of category buyers), Arcadia Coffee (mid-priced, $2.89, score 6, 50%) and Daily Grind RTD (value, $2.29, score 4.5, 75%). Only 12% of category buyers know Lantern. Lantern can use the Classic blend (score 6, $0.58 a can), the Single-origin (7.5, $0.74) or the Organic single-origin (8.5, $0.88), in one flavour or three (three add $12,000 a year of production cost). Launch overhead is $60,000 a year whatever you choose.
| Channel | Share of category cans | Trade keeps | Listing fee per flavour a year | Brands on the shelf |
|---|---|---|---|---|
| Supermarkets | 45% | 32% of shelf price | $9,000 | Summit, Daily Grind, Arcadia |
| Convenience stores | 30% | 40% | $4,000 | Summit, Daily Grind |
| Natural and specialty grocers | 15% | 38% | $2,000 | Summit, Arcadia |
| Lantern cafés and online shop | 10% | none ($0.45 a can fulfilment; $6,000 a year) | — | Lantern only |
You will work through the plan one decision at a time in the Marketing Mix Simulator, check its numbers by hand, test your whole plan against two alternatives and write the recommendation. Your plan and the simulator’s results are saved in this browser as you go, so you can use them in the write-up.
What you will produce
- A launch plan for Lantern Cold Brew: liquid and range, shelf price, channels, and a promotion budget split across the four vehicles.
- Hand calculations that support it: the price build-up in each chosen channel, the break-even volume and the volume change any price move would need.
- A comparison of your plan with at least two alternatives on the same measures, recorded from the simulator.
- A one-page recommendation to Ana (about 350–450 words) that states the plan, the evidence, the risks and what to test before committing the whole budget.
Loading the project…