Marketing Management Basic

Group 5

Industry: Foods and Beverages

Product: Paperboat Drinks

Presented by: Aman Yadav (07), Harshit Sharma(18), Krishna Dhoot (22), Vasishta
Lolla (56), Vihaa Shah (57), Yash Patil (59)
 Background
Diffusing Innovation through “Drinks and Memories “

• Paperboat is a brand of traditional Indian beverage and foods produced and

marketed by Hector Beverages. The company's first product was a protein
drink called Frissia, later shifted its focus to the ethnic drinks segment.

• This young and vibrant brand has made an emotional connect with consumers
in a short span of time.

• In the new era of marketing, Paperboat engaging content for storytelling has
not only made brand awareness but also an emotional contact with its target
audience.

• Nutritious benefits: Natural ingredients & functions, Indian traditional

ingredients and Great packaging & hygienic
 Market research
• Paper Boat adopted a "blue ocean strategy," creating a niche category by
branding traditional Indian drinks. It capitalizes on nostalgia by leveraging ethnic
flavour.

• Partnerships with food manufacturers with large distribution networks like Indo
Nissin Foods have enhanced Paper Boat's product reach immensely.
• Attractive packaging enhances visual identity and helps to achieve product
differentiation.
• While Paper Boat made 235 crore INR in the current financial year, its
expenses rose to 325 crore INR.

• The company earned INR 235 Cr in FY2020 by selling fruit-based drinks

and traditional snacks, compared to INR 189.5 in FY2019.

• Pretty much the entire revenue growth in the year has been from sales,
which indicates just how deep the Paper Boat brand has penetrated in
the retail space.
 PEST Analysis
Political: Challenging year due to
FSSAI regulations. Waste
management becomes crucial.
Additional duty of excise at five per
cent on aerated waters containing
added sugar seen as a negative
decision for the industry.
Social-cultural: Age is an important
criterion for consumption. Celebrity
endorsements and attractive
commercials become more
important to the younger generation
in their product decision. Social
media keeps brand connected.
Economic: Due to pandemic, the soft
drinks industry experienced many
shocks and forecast to settle down in
some months. The industry is
growing at a CAGR of 5% in volume
with Mango, Apple and Orange
dominating market share.
Technology: High cost of technology
can be a barrier to a new entrant but
PB has surpassed this hurdle with
unique design building and high
producing capacity.
 Need gap Analysis of Paperboat
Paper Boat has successfully created a niche for itself. There was always a need gap in the
category for ethnic Indian beverages, drinks that grandmothers used to prepare.

• Paper Boat had identified and adopted ‘Innocence’ as their positioning. Innocence also
caters to the entire gamut of qualities like hope, optimism, purity, curiosity, simplicity and
wholesomeness.

• Paper Boat’s communications like “Mein haq se rahoon bachcha” focused on innocence of
childhood memories and nostalgia.

• Commercial that captures an innocent and affectionate moments between Loved ones.

• They rely on the power of taste and smell to evoke memories and emotions.

• By narrating compelling stories like that are alive, authentic and a reminder of childhood and
innocence, they touch each individual lives and keep alive the hope that ‘life is still
beautiful”
Various Attributes Located To Form The Concept
Standout paper
packaging & A
distinctive shape

Nostalgic variant The childlike

names and simplicity of the
authentic tastes graphics

Its storytelling Social Media

campaigns Presence
 Consumer Profiling
Consumer profiling is summarizing consumer data which include their shopping habits,
lifestyles, income level, preferences, demographics, and psychographics and purchase
behavior patterns.
It offers additional insight into customers and to help to identify and gain a deeper
understanding of the target market.

Market Product to
Business
Consumers

Advantages of Consumer Profiling

Helps to define a better targeting strategy
Stronger customer relationships
Create more successful and relevant marketing campaigns
Generates higher response rates from campaigns
 STDP Analysis of Paper Boat
Segmentation: Paper boat was crafted
with a view to target. Urban India,
particularly aged above 20. The
geographical target was communities
that had left their native homes to other
parts of the country. The Psycho-graphics
target were the people who can return to
an innocent and naive time associating
with the “the good old days”.
Differentiation: Paper Boat’s traditional
Indian flavors and its differentiated
packaging. It’s purity of raw materials. A
no-questions-asked return policy. Its
communication strategy.
Targeting: Paper boat is majorly targeting
people who are: Overwhelmed with
Indian beverages by bringing back
nostalgic memories. Shifting from
aerated drinks to natural drinks. Already
preferring beverages with no
preservatives and high percentage of
natural content.
Positioning: Paper boat has positioned
itself as a brand of traditional Indian
juices and drinks. All its variants have
‘Indianness’ and innocence pouring out
of them which they have beautifully
portrayed through their marketing
campaigns. People can relate to the
drinks and hence give them a sense of
reliving their childhood.
 Step by Step Business Plan
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7

Executive Beverage Overview of our Beverage product Marketing Strategy Operational Financial
Summary Industry beverage business Plan planning
Overview Product description Target customer
Business history profile analysis Human
Competitive advantage resources
Objective, Mission, of product Positioning strategy plan
Vision
Sales literature Marketing goal Supply and
SWOT Analysis inventory
Sourcing Marketing mix management
Ownership
Structure Future product Promotional plan Production
and
Communication distribution
planning

Evaluation and
adjustment
 Product
Paper boat offers a vast variety of food based ethnic drinks such as:

• Jal Jeera
• Aam Panna
• Anar
• Jamun Kaala Khatta
• Chilli Guava
• Nimbu Paani
• Panakkam
• Rose Tamarind
• Kokum
• Santra
 Price
• Paper Boat being a pioneer in traditional drink space has advantage
and eyes the growth in revenue and share market.
• The beverage comes in single pack size of 200ml, 250ml and 1 L. The
cost of single pack is Rs.20-25. And that of 1L is Rs.80-100.
• In the stores like D Mart there are discounts available on the individual
packs. On the e-commerce platform, discount is offered on the bulk
purchase of 6 packs.
 Place
• Paperboat has 2 level distribution channels and has distributors all over
metropolitan cities.
• Their products are available in all the major cities in India. Other markets
for the product are Dubai, Malaysia, UK and USA.
• The majority consumers in these countries are of Indian origin.
• The production units of Paperboat are in two locations in India- Mysuru
and Delhi and have capacity of ten million pouches per day.
 Promotion
• The number one effect promotion means used by Paper Boat is Advertising. It has now
started working on digital media too.
• Paper Boat has been one of the brands who believed in ‘Power of Storytelling’ since its
inception. After narrating stories through illustrations, Paper Boat moved onto creating
short films which depicted nostalgia and innocence.
• The company's aim is to preserve traditional recipes of India using innovation to make
ethnic Indian drinks.
 Evaluating Proper Marketing Strategy
Paper Boat is doing unique marketing by branding traditional Indian drinks. And
Following are some major points where paper boat marketing strategy is
evaluated:
• Storytelling Approach: Fans and Customer shared their childhood memories
and moments.
• Customer Centricity: Focused on their product rather than brand philosophy.
• Social Media Approach: Their presence and their approach towards social
media marketing.
• No Coloring: Helped to target customer who avoid color containing drinks.
• Distribution: Large Distribution Change.
• Packaging: Unique packing which attracts children.
 Evaluating Competitor Scenario
Beverage segment is quite huge sector and upgrowing sector in India as well as in
World. Following are some major competitor of Paper Boat in Indian Market:

• Real Fruit Juice (Dabur)

• B Natural (ITC)
• Maza
• Frooti (Parle)
• Slice (Pepsico)
• Nourishco
• Milk Mantra
• Raw Pressury
 • Big geographical reach.
• Strong Market position &
consumer complete
Satisfaction.
• Effective in accomplish
parents' preference.
• Highly preferred by
children.
• Indian Distribution.
SWOT
• Unexplored rural market.
• Increasing Heath
consciousness.
• Can explore eastern and
western flavors.
• High Internet penetration.
• Increased Coconut Water
Juice Segment.
• Absence of monetary and
technical resources.
• Lack of experience and
knowledge of operating in style.
• Seasonal Fluctuations
• Slightly Higher Priced
• Not Available in tetra packs
Lack of presence in rural
area.
• Government has
announced 100% FDI in
FMCG sector.
• Duplication of
company model.
• Threat from substitutes
like fruit juices.
 Consumer Factor Analysis
• Taste /quality: According to feedback analysis, 35.1% people rated the Paper boat
product to be excellent followed by 32% considering it very good and 29.7%
neutral.
• Value for Money: 51.3% people believe that they are getting value for money. 27%
can be shifted if they can increase the quantity at same price.
• Packaging: 62.1% are attracted with the packaging & 16.2% are not. 21.6% can be
shifted by creating the packaging more elegantly.
• Public Reach: 60% through Word Mouth followed by TV advertisements that
composite 27% .
• 46% people found paper boat items to be reliable, 48.5% people recognize it as
unique and 13.5% of people mentioned them as overpriced.
• 67.5% of the targeted audience are likely to repeat & 24.3% don’t like the overall
product and 8.1% can be shifted when offered discounts and control the efficacy.
Thank you!
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