Brand Management

Paper Boat Brand Positioning

TRIM-V

Submitted By Group 2:
Arunima Gahlot – 80012100949
Atharva Iwarkar – 80012100957
Vidhi Pabuwal- 80012100951
Arjya Chandra-80012100761
Prajwal Shetty- 80012100948
Shubho Roy – 80012100713
 ❖ Market Overview:

The non-carbonated beverages segment has grown exponentially due to improved health
consciousness among consumers and increased affordability. The market is driven by the health
beverages and the increasing consumption by millennials. The study identifies the increasing
urbanization and changing consumer lifestyles as one of the prime reasons driving the health
beverages market growth in India during the next few years.

By 2026, 9% of spending and 3% of volume consumption in the Juices segment will be attributable
to out-of-home consumption (e.g., in bars and restaurants). In the Juices segment, volume is
expected to amount to 1,752.5ML by 2026. The Juices segment is expected to show a volume
growth of 2.2% in 2023. The average volume per person in the Juices segment is expected to
amount to 1.14 L in 2022. On the other hand, India’s non-alcoholic beverages market is expected
to grow at a compound annual growth rate of 8.7% to reach ₹1.47 trillion by 2030. The non-
carbonated beverages segment was valued at INR 153.33 billion in FY 2020, and is expected to
reach INR 781.88 billion by FY 2027, expanding at a CAGR of ~20.52% during the FY 2022-FY
2027 period.

The leading players are showing their presence in each segment by launching new products in each
variant but these players are working rigorously on a fruit drink that contains 100% juice content
where they can charge a premium price. Fruit drinks showcased a dominating share of 66% in
2021 but the increasing awareness about the deteriorating health due to such drinks is expected to
decline in the coming five years. Rapid urbanization, surging income and increasing health
consciousness would further drive the Indian Juice market.

FMCG firms leveraging the trend of consumer preference for Health and
Wellness goods:

As per McKinsey’s study on “A new model for the consumer-goods industry”, 12 trends were
identified which are disrupting the traditional consumer packaged goods industry.
E.g. 1: HUL merged with GSK, giving it access to health food drinks brands, such as Horlicks,
Boost and Maltova “HUL to build a sustainable and profitable F&R business in India by leveraging
the megatrend of health and wellness”

E.g. 2: PepsiCo’s increased focus towards Health food and drinks products showcased on their
website
E.g. 3: Marico acquires majority stake in digital-first healthy breakfast & snacks brand ‘True
Elements’
“True Elements will expand our total addressable market in the healthy foods segment.”

❖ About Paper Boat

Hector Beverages was founded in 2009 by Neeraj Kakkar. Before launching Paper Boat, Hector
Beverages launched 'Frissia', a protein drink, followed by the energy drink 'Tzinga' in 2011. They
were good products but did not perform well, the company has hit the right category of the
beverage segment but needed the right product. After then, The Paper Boat company was launched
in 2013.

The idea for the brand is said to have taken birth during one of the office lunches that the co-
founders would have together in the early years. Mishra's mother would pack him a flask of Aam
Panna every day and once while reaching out for the drink, as they were mulling over business
ideas, a brain wave to commercially produce ethnic Indian drinks that were hitherto unavailable in
the market struck. And the idea for Paper Boat was born.

With the launch of Paper Boat juice company, in 2013, Hector Beverages shifted its focus to the
traditional Indian drinks segment. Paper Boat became India’s fastest-growing non-carbonated
drinks consumer brand today, selling 11 different traditional-nostalgic Indian foods and beverages
such as Aam Panna, jaljeera, chikki, and much more. The drinks were initially offered in a single
serving, flexible pouches; the company has since then expanded to one litre Tetra Pak cartons as
well.
The company aims to preserve traditional recipes while using innovation to make the Indian drinks
accessible to an urban market. Paper Boat does not use artificial coloring or preservatives in its
products.

Buyer Persona

Demographics:

Product is for both male and females. Age range for paper boat is 25 to 28, generation which grew
up in the late 90s. Living in metros and leading a modern lifestyle but still connected with their
roots and were conscious of their traditions. Paper boat also targeted, individuals who left their
native place in search for jobs to different countries but long for Indian drinks which were a part
of their growing up days.

Interests:

Spending their weekends in pubs, going on backpacking adventures during vacations and reading
old classics. They may have friends who listen to English songs, but they prefer Hindustani songs.

Stage of life:

Young adults who just graduated and have started earning. They are in their late 20s and early 30s
working in mid manager level positions.

Values:

Despite living in tier 1 or 2 cities living a fast-paced modern life, they have held on to their roots.
They know their culture and are comfortable about where they come form. The ideas of liberalism
and independence appealing to him/ her. He/ she would support legalization of marijuana,
upgradation of archaic laws, homosexuality, personal autonomy etc.

Pain points:

● Nostalgic towards their past and childhood

● They prefer authenticity over modernization
 ● They look for ethnic taste in drinks as compared to others preferring carbonated water
● Even though they live in modern societies and work in MNCs, they want to hold on to their
roots
● Culture is an integral part of their lifestyles

Brand positioning of Paper Boat

In the very competitive market for fruit-based beverages, Paper Boat has been successful in carving
out a space for itself. The company fills the gap in the beverages category for ethnic Indian
beverages, drinks that our mothers and grandmothers used to prepare. Paper Boat had seen this
need, filled it, and very appropriately chosen "innocence" as their positioning.

Paper Boat has mainly focused on innocence of childhood memories and nostalgia. They rely on
taste and smell's ability to stir up emotions and memories. The warmth of the memory is then
contrasted with the present person, who is distant from home and craves the comfort of such
memories, in these experiences. An Aamras commercial shows a father teaching his son the right
way to enjoy a juicy mango, while another Anar commercial captures an innocent and affectionate
moment between a mother and her daughter.

Their emotional and nostalgic marketing strategies play a main role in this. Paper boat has worked
on developing customer’s brand loyalty. They have invested in customer research to find out
information related to price sensitivity, taste preferences and health consciousness. This would
allow them to find desired features and include that in their products and advertising campaigns.
The campaigns mainly rely on the stimuli that include childhood and vivid flavors which
incorporate multiple social factors like nostalgia and innocence.
Competitors Overview:

Price
Emotional Fruit Varieties
Brands Range Functional Attributes
Attributes Content Available
(200ml)

Dabur India- Most trusted by 100% Natural 3% to

20/- 12
Real consumers Ayurveda 20%

It is a smart Rich Source of Vitamin

PepsiCo- choice, if you C
20/- 20-45% 12
Tropicana want to be No Added Sugar
healthy No Added Colour

B- Natural- No Emotional 100% Indian Fruit 0%

20/- 3-10% 7
ITC Attribute Concentra

Celebrates the
Minute Real Orange Pulp
Good in Every
Maid- Coca 25/- Vitamins 10-50% 6
Family
Cola Zero Sugar

Family’s
Nouirshco-
wellness attached Premium drinking water
Tata and 0% 7
to consumption brand
Pepsico
of the product

All Natural. No
Artificial. All Taste. No
Simple,
Raw Added Sugar. All Real 30% to
60/- authentic, edgy 19
Pressery Ingredients. No 50%
and fun
Concentrate. All Fresh.
No Preservatives.
 ❖ Problem Statement

The goal of this project is to reposition the paper boat brand by bridging the perception gap
between customers and self-perception. This project aims to map the paper boat in the ethnic drinks
category and position it with a value advantage strategy when plotted in a value positioning map
using primary and secondary research. It will also aid in retargeting and entering previously
untapped markets.

The meaning of alive for Paper Boat is it is contemporary, young, fashionable, and cool. And
authenticity is innocent, pure, and natural. For Paper Boat, it has always been a mixture of these
two things. Its packaging and stories are alive, and the drinks and its ingredients are authentic.
These two words define Paper Boat’s journey.

It gave Paper Boat the idea for festival drinks and appointment drinks. So for Holi, Paper Boat
launches Thandai, for Ram Navami, it launches Panakam, for Ramzan, it launches Sarbat, and
more.

❖ Findings from Survey

We did a primary survey using questionnaires for understanding the customer perception regarding
the NARTD segment and how Paperboat is positioned in the market. We took 50 survey responses
for the same. The notable insights that are generated from the survey can be listed as follows:
 1. Demand:

Which beverage do you purchase the most?

Occupation Carbonated Fresh juices/ Hot beverages like RTD (Ready to

drinks drinks tea/ coffee Drink) juices
Home maker 2 1
Student 13 4 5 9
Working 4 4 7 2
Professional

There is a heavy demand for carbonated drinks and RTD in the student population that is in the
age bracket of 20-30. The consumers prefer such drinks due to their ease of usage and the likeness
they have towards the product.
2. Pricing Trend:
 Are you willing to spend more on NARTD beverages if they have
additional health benefits?
How much would you
spend on one NARTD
beverage of 200 ml? Maybe No Yes
(tetra pack or mini
bottle)
Rs. 10-20 7 4 5
Rs. 21-40 11 4 13
Rs. 41-60 2 1 3
Rs. 60 Above 1

The most desired price range is Rs 21 to 40 but the respondents can pay an additional amount if
the product gives them health benefits. Currently the consumers in the market are very health-
conscious and they prefer healthy drinks over any other criteria and won’t hesitate to pay extra
for healthy products
 How often do you consume NARTD (Non-Alcoholic Ready to Drink) beverages?
How much 1-2 times Do not Multiple Multiple Once a Once a week
would you a month consume times a times a day
spend on at all day week
one
NARTD
beverage of
200 ml?
(tetra pack
or mini
bottle)
Rs. 10-20 4 1 2 2 2 5
Rs. 21-40 12 1 1 8 1 5
Rs. 41-60 3 1 1 1
Rs. 60
1
Above
We can observe that customers who have consumed NARTD Beverages in any of the categories
of consumption pattern they fall in, majority of them prefer to spend Rs. 21-40 for the beverage.
3. Inertia Loyalty:

This pertains to the situations where the customers prefer the same product they have purchased
previously. According to the survey, the customers in the market prefer products from the 2-3
brands that they admire and don’t pay attention to the other brands in the market.
In the market there are not many brands that play on the nostalgic feeling of the customers and
serve them with many varieties. The value positioning of the other brands is different from that of
the PaperBoat. The ad campaign and the positioning of the brand is very strong on the nostalgia
factor, giving them an edge over the competitors.
In order to leverage the inertia loyalty of the customers already associated with the brand, we can
optimize the market share of the brand again.
The inertia loyalty consumers are driven by comfort and convenience, so it is important for the
brand to optimize their barriers of exit in order to make the switch to any other brand difficult for
the customers.
 ❖ Proposed Strategy
Target Segment
Paperboat should expand its target segment from the current segment of 25-32 year old working
professionals and liberals with traditional roots to all urban families with traditional roots. Thus,
they should target all the people in the age group of 20 above living in tier 1 and 2 cities who
would have enjoyed these ethnic drinks during their childhood days but don’t have the time to
make these drinks from scratch everyday and prefer a safe and hygienic option instead of roadside
stalls.
At the same time, they should also target the children of these groups and give their children the
chance to enjoy the same taste that their parents did, with the added benefit of a healthy alternative
for their regular consumption.

Defining shopper groups for beverages based on survey:

Not all Shoppers are the same. With shoppers segmented based on their propensity to buy RTD
beverages, We can draw on how they engage with our category and brands.
High Frequency Buyers: Buys one or more times a day
● Consumed RTD beverages regularly as part of meals and daily routines
● Buys for self and the family
● Value seeking & price sensitive
● More likely to try new offerings
● High Brand Loyalty

Medium-Low Frequency Buyers: Buys one or more times a week

● Small basket shopper
● More likely to buy for occasions like social gatherings, watching movies etc.
● Not sensitive to price
● Premium offerings sought after
● More likely to stick to 2-3 brands rather than trials
Low Frequency Buyers: Buys 1-2 times a month
● Non-buyer but doesn’t mean a non-drinker
● More likely to stick to 2-3 brands rather than trials
● Not sensitive to price
● Low Brand loyalty

Paperboat should aim to target high frequency buyers in order to increase revenue. Revenue is a
function of both price and volume. As per our survey the highest percentage of people are most
willing to buy in a low-medium price range of beverages and are more value seeking. They also
don’t view paper boat as a premium brand. Thus, we should lower price and change positioning
from niche and premium to target masses and increase volume. This can be done by increasing
the incidence rate of the beverage in shopping occasions. The highest frequency shopping
occasions for RTD beverages are
● Social gatherings or activities away from home- 31.7%
However, if we club the following categories in daily consumption it comes up to a total of 46.7%
● Meals away from home- 21.7%
● Meals at home- 8.3%
● Daily Rituals/ Routines- 16.7%
For daily consumption with meals and daily routines, given that health and wellness is a key
industry trend, people are going to prefer healthy beverages.
Responses in the above chart are an answer to the question ‘How important are the following health
attributes in influencing you to purchase more of a particular food/ food product?

Therefore, paper boat can add functional attributes of health and wellness to its existing emotional
attributes of nostalgia and childhood memories. To communicate our new value proposition, we
created a new Brand Mantra: "A healthy walk down the memory lane." As previously
mentioned, we provide customers more reasons to pick Paper boat than merely being a drink with
ethnic flavors. Our communication would focus on ingredients and its derived nutritional benefits
clearly and attach the nostalgic factor along with it.
Promotions

As we observe that almost 70% of the surveyors have rarely viewed any paperboat promotions
It shows that the brand has been unsuccessful in creating a presence in the minds of the potential
customers.

The advertisements must be shown during prime time slots when the majority of families are
watching together. This will broaden the audience's awareness.Paper can make us of Influencer
marketing strategies to increase brand awareness of it product.

In this digital era, paperboat must create its online presence by running digital campaign to reach
consumers of non-alcoholic beverages.
Accessibilty

The more easily accessible the product, the greater the awareness. According to the study, the
most significant issue with Paper Boat is its availability.

Apart from promotion another factor which led to the failure of Paper boat is that, it is not widely
available, limiting business growth.To reach the greatest number of customers, the company
should adopt the staying true to the persona and concentrate on developing a campaign talking
about easy availability of the products.

Positioning
Paper Boat’s positioning is mostly focused on innocence of childhood memories and nostalgia.
Although this positioning has been helpful in establishing the brand, it has been losing out on its
market share due to a rise in competitors. One of the gaps for the customers have been the lack of
functional benefits being provided by the ethnic drink in terms of nutrition which other brands in
the fruit beverage category are providing (Exhibit 1.)

From the industry trends and survey results, we can conclude that health and wellness is a key
growth driver in NARTD beverage industry. Paper Boat would market itself as an ethnic beverage
with the advantages of the current ingredients like vitamins, fibre, mineral etc. in terms of
functionality. While keeping the main idea and message of nostalgia, our new value proposition
would focus on the benefit that our customers receive from it. With this repositioning, we intend
to draw in potential Paperboat customers who aren't just interested in nostalgia. For instance, Real
and Tropicana both highlighted the pulp content in their juice, which was successful in attracting
customers. Thus, paperboat should fortify its positioning by adding and highlighting functional
attributes of health.

Proposed storyboard perception:

A pre-teen girl comes back from the playground and drinks nimbu paani made by her mother. As
a young adult, she can be seen enjoying jaljeera at a stall near her college. Then she can be seen
serving aam panna to future husband and in-laws during an arranged marriage proposal. The scene
flashes back to the present where she is now packing paperboat in the tiffin for her own daughter.
Then, the tagline flashes "A healthy walk down the memory lane."
❖ Brand Canvas for PaperBoat:
Sources:
• https://www.livemint.com/news/india/nonalcoholic-beverage-market-to-hit-147trillion-
11653673841898.html
• https://www.globenewswire.com/en/news-release/2022/02/11/2383586/28124/en/Non-
Alcoholic-Beverages-Market-in-India-2022-2027-Featuring-Dabur-India-ITC-Hector-
Beverages-Parle-Agro-and-Nestle-India.html
• McKinsey, 2020: A new model for the consumer-goods industry
• Nielsen Health and Wellness in Beverages