THE COLA TRAP

SUBMTTED BY SUBMTTED BY
K.N.JAKANTHAN K.N.JAKANTHAN
NTRODUCTON NTRODUCTON
Dewrell ndia is a famous soft drink manufacturer,
manufactures
Toff (orange drink) & Quench (lemon drink).
ndian cola market is now in hands of two big
American companies Dappy & Bart.
Viren mitta CEO of Dewrell ndia.
Arun Kurien Old CEO of Dewrell ndia.
Vishvesh vaidya Marketing manager of D
KEY SSUES
Dappy and Bart were running Orange and
Lemon segment also.
Because of that Kurein was doubtful in Dewrell's
orange and lemon segment.
Kurien desired to enter into COLA segment,
where Dappy and Bart in peak to beat them in
soft drink market.
Now, mitta starts Perron cola and there is some
other reasons to enter into Cola segment.
Dewrell's reasons going for COLA
Dewrell should compete with Dappy and Bart because
they are obstructing Dewrell in soft drink manufacturing.
Since they are in peak in cola segment, Dewrell has to
pull down them, so Dewrell choosed the strategy to
enter into cola segment.
Cola segment is moreover a youth segment, if Dewrell
covers this youth segment it automatically raise their
brand loyalty in soft drink market.
Cola segment occupies 50% of soft drink market, so to
complete the companies range, Dewrell likes to enter
into cola segment.
Cola segment also increases bottlers and distributors
volume, through retail shops
n international portfolio (parent company in Greece)
they are using a cola brand Perron.
DEWRELL'S ACTON OVER
COLA SEGMENT
Each and every segment products has three sales
attributes : Product, image, price differentiations.
Product differentiation is not easy - create new.
mage differentiation is also cost so high, Dewrell
cant afford that.
Price differentiation surely work well in ndian
market, so Dewrell launched Rs.6 300ml Perron
cola 25 % cheap than rival (where rival products
are Rs.8 300ml )
Vaidya wants visibility and awareness, since all
medium are so expensive, he choose hoading
medium (Cheapest medium) hired 150 hoading for
long term.
Cont.,
At the same time, Mitta don't want dewrell to lose its
premium image, so they put dewrell's name in small
letter in hoarding and then they removed the name
completely.
Dewrell introduced parron as it is exclusively made
for ndian economy market.
To tackle the Dappy and Bart consumer, Dewrell
has to pull down rivals brand image so it promotes
as " A cola is a cola is a cola.
Dewrell exposed parron cola as fun brand and by
above methods it encourage the consumer to rebel
against its rivals
Defects
Both Dappy and Bart are leading manufacturers in
cola segment, so we have observe their growth and
image.
Price differentiation can be easily tackled by them
by using a strategy Rs.6 200 ml (To cover the
non loyal consumers).
t is not easy to push their images down by insisting
"don't take image seriously but they always says "
Take image seriously.
Media labelled perron as unoriginal, copycat.
All Dappy and Bart drinkers feel them as Americans
but dewrells Low price itself expose it as " am not
branded, trendy and am not westernised.
Cont.,
Moreover youth segment never mind of
spending Rs.2 or 3 extra for their brand and
feel.
mage of Dappy and Bart are made
stronger by ambassadors like Shahruk
khan, Sachin Tendulkar. ts not easy to
demolish their image.
Consumer don't want to have cheaper cola.
This cause perron cola a discernible
slowdown.
Retailer's voice
Dewrell's image has gained in leaps and bounds
on the strength of its orange drink, Toff.
Cola segment is main in soft drink market,
perron cola will surely slowdown the volume of
Dappy and Bart products and bottlers.
Retailers are forced to distribute orange and
lemon products of Dappy and Bart Cola
Manufacturers.
Even though Dappy and Bart priced Rs.8,if it
served chilled at Rs.9 10 to those who are in
image feel, they don't mind it, so it really expose
the difference between Rs.6 and 9
Cont.,
Vidya wooed retailers because they
enthusiastically stocked Perron.
With the image of Toff and quincer, retailer
sells Dewrell's cola product at Rs.8,it will
really increase the Margin value, it will
lead to more distribution of perron.
Consumer Behaviour
n our economic ndia, consumer eye will be
always on Price, so this Price differentiation will
really works.
Even though the American company lowers their
price by 25% it automatically lowers its quantity
by 33%.(Rs.6 200ml)
f Perron is sold for Rs.8(chilled),consumer will
change to Parron because for Rs.8 they can
only feel warm American feel.
Ex., Tamilnadu sales and marketing corporation
(state Official liquor suppliers - ndia)
Cont.,
ndians are fun lovers, they surely loves to try to
be like a American in ndian economy, so they
surly accept Parron.
Brand loyalty stands until the product retains its
image. For Rivals mage is made by big
celebrities, if they once advertise Perron,
consumer will change to perron.
Consumers are aware of toff and quench taste
and brand, so when they come to know perron a
product from Dewrell they really accept it and
vice versa.
Youth always like to taste new brands.
conclusion
The main objective of Dewrell to launch cola is not
of market leadership, they just want to have more
bottlers and retailers to get volumes and to get a
complete portfolio.
At the same time, it has to satisfy the retailer (by
allowing to sell at Rs.8),customers(quality at low
price).
General liquidity crisis also affects soft drink industry
too, because of that there is 35-40 % increase in
price. At this time this Perron will really worthy.
A cola is a cola is cola will really works.
Marketers are not black, orange, white they are
adults, teenagers or children. Toff will shines
because of this perron cola strategy.
Thank you !!! Thank you !!!