LAVANYA MANGAL VAIBHAV KAVTIYAL

SUSHMITA VAZIRANI UTKARSH RATHI

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Packaged fruit-based beverages INDUSTRY OUTLOOK Perceptual map of non-alcoholic beverage industry
Market size - 142 billion rupees (‘17), projected to grow
B Natural needs to position itself as Healthy yet Trendy through
at ~16% over the next 3 years Source: CRISIL Research marketing & packaging transformations
Still Drinks Nectars Fruit Juices
TRENDS AFECTING THE INDUSTRY High Health
10-20% fruit 20-99% fruit 100% fruit
content content content
Increasing population of working women Huge Potential

MAJOR PLAYERS IN THE JUICE INDUSTRY

Tetra packs still aren't a substitution for fresh
local vendors, actual fruits
Low Trendiness High
Growing millenial population with busy work Trendiness
schedules
Nuclear families and bachelors residing in metros
for study or employment purpose
Low Health

B Natural Brand Journey

Brand launched with a tagline
of ‘Can’t hide the taste’
2015 Duopoly market of Real &
Tropicana, B Natural entered
with no distinct differentiation &
hence didn’t work as well as it
hoped
What would we have done differently?
Packaging, name, campaigns, flavours were
Evolved positioning to
all characteristic of a “me-too” brand rather Utilized only the manufacturing
than that of a potent challenger
‘Not from Concentrate’ 1 capabilities of Balan Natural Foods
There were no reasons to switch from
existing brands
Exploited strong presence in
2016 2017 2018 2 Southern India
Consumers unaware about
the importance of NFC
Positioning sharpened proposition. Evolution of the Maintained one single, strong
around ‘Zest for life’ RTB is a slow process 3 positioning & brand strategy
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Research Objective To understand the perceptions, apprehensions & decision-making criteria for consumers to purchase packaged juice; problems faced by retailers

Target Group Secondary Research Primary Research

People from metros, Tier -1 & Tier-2 cities Reports of MarketLine on Beverages in In-depth interviews with 18 retailers,
(of all age groups) India, CRISIL research report on non- surveys with 115 respondents, blind
Retailers & supermarket stores in Indore city alcoholic beverages tests with 10 individuals

Factor 1
• 50% respondents say no Factor Analysis for Segmentation of
customers Impulse driven millennials
particular time to have juice
• Need to educate them to boost Think juices are good
usage stress buster & have
relaxing effects
Factor 2
• B-Natural Buyers: Skeptical parents
▪ 40% to try something new Consume juices from
▪ 32% due to others unavailable local vendors, believe
▪ 14% considered it healthier it is fresher & has no
preservatives
Factor 3
Health seekers
• 45% felt Maaza/Frooti has
more fruit content Believe juices contain
• 61% youngsters prefer having nutrients & are
juices without straw satisfactory
alternative to a meal
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BLIND ‘TASTE’ TEST SUPERMARKET STORES

REAL juices placed together in stores

to create colour coded hotspots as all
brands of orange variants have similar packaging
juices were used
B Natural has a different colored pack
for each variant
Preferred B Natural in terms of taste
from the perceptual discrimination test Incoherent brand identity

Brand name causes bias during sensory All flavors are not kept together in
evaluation of juices stores.

Colour skews people's taste for juices

due to the visual appeal

Pulpy taste is perceived to be much

better for health
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TOC Model for analysis distribution

STRATEGY

Lower numeric distribution of 25% as Low weighted distribution of 40% as

compared to 55% of key competitor compared to 90% of key competitor
Stock the brand in
Not all retailers in market stock B Natural the beginning of the
month in stores
Differentiate the product
Strong footprint of Product has 6-month expiry, stock through renewed
competitor brands reaches 4 months after production positioning
Change packaging of
Durability of packaging is lower product with different
Competitors stock shops than other brands SKUs

with excess stocks Stock rotation of product Provide incentives to retailers

& salespersons for stocking
the brand at most retail stores

Brand that stocks first gets Low demand

an advantage

Retailer stocks 1-2 brands at Higher demand for other

bulk brands

Limited cash with retailers Product differentiation is low

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Impulsive millennials
• Age 15-30, Student/Early Jobbers, variety seeking
• Impulse buyers, Loyal to trends, Informed buyers
• Seek variety & health, Buy when tired/stressed

Sceptical Parents
• Age 30-45, Working professionals, Stressed
• Uninformed buyers, Regular buyers, Value Loyal
• Use as nutrition supplement, Health Booster

Health Seekers
• Age 30+, sedentary jobs, healthy lifestyle • Impulsive Millennials
• Extreme regular purchases, Primary Target • By associating B natural with trendiness
• Seek variety & health, Buy when tired/stressed

• Skeptical Parents and Health Seekers

Secondary Target • Launch new SKUs for kids, associate
with fitness industry
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Growth by expanding usage of category

Increase quantity of consumption Increase frequency of consumption

Build a portfolio of loved variants

PET bottles
for the adventurous millennials For every occasion or “beverage need state”

To improve digestion
Vending machines Family tetra pack with meals
in office cafeterias & college canteens
Usual tea breaks Juice breaks
PET bottle for rejuvenation
after boring lectures/meetings

Augmenting on-trade sales

collaboration with McDonalds, Pizza Hut For kids to fulfil their
daily nutritional requirements
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Growth by brand association

By bolstering fading associations Creating new positive associations

Association of B Natural Juices with trendiness for the social media savvy
12th August
1 month – only 2 additional
followers
The journey of a fruit
from a field to a
11th September
consumer’s hand

Instagram page – not

verified, does not give it the
authenticity required

Collaborate with

1 3
food bloggers:
Get the
To garner more
page
followers &
verified
generate
#thankafarmer campaign Attract more Share videos

2 4
interesting
followers: content of creating
Sponsored party drinks
advertisements using B
& contests Natural
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Branded House Approach B Natural Benefits other than health, product to

have more than just a core benefit

Value Proposition:
Being healthy is now Healthy along with trendy will establish
trendy differentiation of the product

For Kids For young adults: For family Future category extensions: Aim to establish this product as a style
Small SKUs with Trendy PET consumption: Fruit & Veggies (for winter statement for the chosen segment
transparent back bottles 4pm drink Tetra packs with consumption)
so that mothers transparent slit Smoothies (for a more filling
can see the as meter drink) Drive Juice consumption for taste and
goodness inside Coconut water (great potential,
fragmented market) freshness due to people’s inclination

B Natural for kids B Natural PET Bottle B Natural Tetra packs

Can be given in tiffin boxes for the youth at GYM for cocktail parties

JUICE REVOLUTION OF INDIA

‘There is one for everyone’
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Why should ITC enter still drinks category? Why B Natural should not treat still drinks as a range extension?

➢ 50% HH penetration ➢ B Natural has a value proposition of being healthy and pure.

➢ Lower price makes it more accessible to rural as well as urban ➢ Adding still drinks to its portfolio will lead to incoherence in the
consumers brand architecture of B Natural

➢ Migration from CSDs to still drinks is only going to increase, ITC can
cash in on this lucrative market
➢ Still drinks are popular amongst kids & the young due to the indulgent
nature of the product
➢ Lead to confusion amongst the consumers w.r.t its health benefits
➢ Still drinks as a range extension very risky for the brand equity of B
Natural; Low level of discrimination between Still Drinks and Juices
amongst consumers

Sunfeast
Why Sunfeast is a good fit?

Happiness, ➢ Sunfeast with the Brand Essence "Spread the Smile“

pleasure & fun
filled
indulgence ➢ Moreover, Sunfeast already has brands like “Dark fantasy” with the
indulgence positioning. A mango drink (as it is the most popular
flavour) can be built on similar lines followed by others
Biscuits & Yippee Splash!
cookies noodles Fruit drinks
➢ ‘Splash!’ can be an endorsed brand just like Sunfeast ‘Yippee’
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1
❖Improving brand health Disha Patani as brand ambassador
to enhance brand recall

Two-pronged approach
WHY?
She is a fitness freak
❖Focussing on trade
marketing & distribution She is trendy & young
She is loved by people of all ages
2 especially our target segment

3 Train wraps: Metro trains will be completely wrapped

with ads of our brand, 2 trains each on Blue and Yellow
lines, giving us a total number of 18 lakh eyeballs daily

4 College Sponsorships: Fests with biggest footfalls to

Billboards with cheeky slogans on
social media, pubs & clubs of Delhi,
and traffic signals
associate B Natural with trendiness and health –
Rendezvous (IIT Delhi), Crossroads (SRCC), Moksha
(NSIT), Engifest(DTU)
5 Prominent Hoardings: To create brand awareness with
catchy slogans at Rajendra Nagar, Connaught Place, Hauz
Khas, Kashmiri Gate & Vishwavidyalaya
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Assumptions Expenses
❖Focussing on trade Marketing Budget
Disha Patani Brand Endorsement fee 1 day required for shooting an ad ₹ 1,30,00,000
marketing & distribution Train Wrap (4 months)
Total 4 trains ( 2 on Blue line and 2 on Yellow) for 7000 sq ft per train Rs 25 lakhs/month/train
Expenses for 4 months 4 ₹ 4,00,00,000
Sponsorships for college fests (Winter festive season)
Health and Beverage partners of IIT Delhi fest (Rendezvous) ₹ 8,00,000
3 Fest partnerships with fests like Crossroads (SRCC), Moksha (NSIT), Engifest (DTU) etc 2.5 lakhs each ₹ 7,50,000
Hoardings (6 months)
5 prominent locations (Rajendra Nagar, Connaught Place, Hauz Khas, Kashmiri Gate,
Vishwavidyalaya) 200000 per month
Current Numeric Target Numeric Expenses for 6 months ₹ 60,00,000
Distribution Distribution Drink & Drive campaign (4 months)
Campaign costs for 4 months on social media, at pubs & clubs 50000 per month ₹ 2,00,000
Total Marketing costs ₹ 6,07,50,000
Incentives to salesmen: Trade Marketing and Distribution Budget
1. Per outlet addition – Rs. 10 per Total Stores in Delhi 680000
Target Numerical Distribution 35%
outlet Target Covered Stores 238000
2. Repeat billing incentive – Rs. 40 Current Covered Stores 24% 163200
per quarter per outlet Numerical increase in stores required 74800
Incentive to Salesman
3. Top Outlet Bonus – top 5% Outlet Addition (threshold amount per bill is 12*17=204) 10 per outlet 748000
outlets Repeat Billing Incentive ( 1 bill each month for a quarter, threshold amount per bill is
30*17=510) Rs 40 per quarter per outlet 897600
Top Outlet Bonus ( Top 5% Outlet with sale of minimum 300 equivalent units of 200ML
Incentives to retailers: per month) Rs 1000 per month 11900000
1. Stocking Bonus – 12% of total Stocking Bonus ( Stocking the outlet with Visibility, 12%of total stores, min 300 equivalent
units of 200 ML) Rs500 ₹ 1,42,80,000
stores Visibility Payout ( 2% to top 15%outlets on minimum sale of 150*17=2550) ₹ 18,20,700
2. Visibility Payout – 2% to top Point-of-sale material Covering all stores ₹ 71,40,000
Total distribution costs ₹ 3,67,86,300
15% outlets
Total expenses ₹ 9,75,36,300
Left for miscellanous costs ₹ 24,63,700