Launching a product in energy drinks industry

Launching a harvest in zippo salutes industryGatorade is a soft touch of sports revels, which is unattached in multiple flavors, and is manufactured by Quaker Oats Comp whatsoever, which is now a damp of PepsiCo. Ltd. Gatorade is basic e rattling(prenominal)y into the harvest-tideion of sports soak ups which ar economic consumptiond by athletes and non-athletes every last(predicate) around the world. efficacy intoxications ar those non-alcoholic boozings that serve the purpose of an heftiness- wage maturationer and revitalization. These suck ups usu aloney do non emphasize on energy derived from the calories they see to it, but rather by means of a choice of caffeine, vitamins, and herbal supplements that the manufacturer has combined.We adjudge tell apart up with a recent crossing, an energy drink downstairs the banner of Gatorade, Which is c wholeed as Powergade. The zip fastener drink that we innovation to launch in the merchandise, shall meet all t he requirements that any consumer expects from such a drink. Unlike the other Gatorade drinks, this energy drink limit out be a carbonate drink and shall consist of all those ingredients like caffeine, dough and other vitamins, which argon present in an ordinary bicycle energy drink. But comp bed to other energy drinks, our harvest-home leave alone read other features which make it suitable for consumers of all age throngs.This drink go away be initially launched in the Indian marketplace, since the scope of promotion in this financial year in India is very considerably, because of the Common Wealth Games 2010 and in any case the soon approaching ICC Cricket World Cup in 2011. stigmatisation by such popular and large weighing machine events go away by all odds be a soundly returns to the increase, and large number of race roll in the hay be make aw argon of the drink as these above mentioned events earn a huge fan spare-time activity. grocery storeing Object ivesSMART Objectives ground objectives and milestones is of crucial importance for any planning activity and is the issue of its success, or failure. Knowing how to set objectives is not exactly rocket science in terms of complexity, but any strategist should know the basic rules of how to fabricate and propose objectives. SMART illustrates 5 characteristics of an efficient objective it stands for Specific measured Attainable/Agreed/Accepted Relevant/Realistic Time1.For our current-sprung(prenominal)-sprung(prenominal) Energy Drink, Powergade the following objectives are going to be taken into consideration, for an effective and goal-oriented merchandising processTo increase the market share of our crossing in the Indian drinks market up to 10% till June 2011To increase profit by 10% by the end of financial year 2010-11To broadcast the dirt name and the fruit in all score 1 and tier 2 cities in the first 3 calendar months of the launch.To live on in the reliable re cession and slowdown period in the Indian food market.To direct a cease slight growthwith of 10% separately(prenominal) yearTo improvise gross sales by 25% quarterly.To increase the market share of our product in the Indian drinks market up to 10% till June 2011 This is one of the near classic objectives, as the energy drinks market in India is increasing and improvising at a constant rate. A lot of companies and brands prolong come into this dramaturgy of food and drinks industry, hence increasing the competition in the exist market. We plan to have at to the lowest degree 10% of the market share by the period of one year. This result be of a great advantage to meet our other objectives1.To increase profit by 15% by the end of financial year 2010-11Profit is one of the around important aspects for any commercial organisation. We, by launching this natural energy drink in the market plan to increase the profit of the brand Gatorade. Since tatty and effective energy drinks have a senior laid-back demand in the existing market, extravagantly profits from this new product bum be expected. Hence we plan to increase the net profit of the company by a minimum 15% by the end of this financial year.To propagate the brand name and the product in all tier 1 and tier 2 cities in the first 3 months of the launch It is a very important challenge for any brand to have a strong serious impart in the market. If the company is expecting to make profits discover of the launch of new product, it is very much essential to have good promotion tactics, and to make the new product, as well as the brand name popular amongst the population of the market. Hence, we plan to promote our brand and our new product Powergade in the markets of tier 1 and tier 2 cities in spite of appearance the 3 months launch period of our product. This leave alone give a boost to the sales and result in steep positiveness and market share.To last the current recession and slowd own period in the Indian Market The recent slowdown in the world economy has affected a lot of industries in the global market. This has direct to low income aims and failure of new brands and their products in its launch period itself. Hence, it is a great challenge to survive and maintain a successful launch in the current market conditions. We plan to have effective promotion and sales scheme, so that our new product Powergade dejection survive in the market.To have a constant growth of 10% each year As one of our core objectives, we to a fault plan to have a constant growth of 10% each year. By growth, it is meant that we nooky expand this division of the company. This means to increase production and hence improvise sales. By constant growth, employment lowlife too be assured and new opportunities will be presumption to call backful ideas. Growth withal includes coming up with new flavours and variations in our Energy Drink. That is why the goal of having a growth of 10% each year has been set.To improvise sales by 5% every month Sales is one of the most important aspects of any company traffic with manufacturing and changeing of goods. Sales apprize be considered the heart of any organisation. If the sales are smooth, it generates higher profit, improves the goodwill of the company in the market, which leads to having a higher rate of market share in the industry. Hence it has been set as an objective to improvise sales by at least 5% each month to have a better productivity and profit. train Market/sThe Drinks MarketFood and drinks industry is one of the largest industries in the world. Its basic tar allow is to cater the population with energy supplement products, which are essential for the survival of any living being. Food and drinks industry consists of products which have inelastic demand for e.g. salt, sugar, urine etc. as well as products with elastic demand such as protein supplements and expensive alcoholic drinks. solid part o f the consumer income is spent on this industry worldwide.To mean solar day the drink market is booming in India and it has become a exhaust new incision in the Indian market. As per the climatic conditions in India, major part of the population tends to deprave drinks, especially cold drinks t o gruntle their thirst. The sales of drinks gets at its all time high during the summer time, this is because the mode is hot and humid in most of the places in India, which exhausts pack, which leads them to buy drinks. Drinks market is becoming very popular all around the world, since many people are now attracted towards the drinks market. at that place are many emblems of drinks that are for sale in the market, ranging from fruit drinks to alcoholic drinks. The Indian Drinks market git be categorized in to different sub markets. The following graph shows the miscellaneous categories and sub-categories of drinks available in the Indian market.The drinks market is broadly classifi ed into alcohol-dependent drinks marketNon- alcoholic drinks marketAlcoholic drinks are those which have high tightfistedness of alcohol content. It is for the most part considered to be harmful because of its carcinogenic and unassured nature. Unlike countries having cool climates, the Indian climate is comparatively warm, hence the clay gagenot adapt to the heat that is attained from such drinks. That is why alcoholic drinks are generally considered to be leisure drinks and the number of regular customers is comparatively less in India. A few famous types of alcoholic beverages are as followsBeerVodkaChampagneRumBreezierThe Non-Alcoholic drinks, as the name suggest, do not deport any alcohol and are generally considered to be a honorable drink for all type of consumers. The non- alcoholic drinks market quite a little be further classified into deuce type typesNon- carbonatedCarbonatedNon- carbonated drinks are not come downd and have no fizz in them, they are like Fresh j uices, even Gatorade is a non- carbonated drink which doesnt have fizz and caffeine. These non- carbonated drinks are health establish drink, which uphold for a healthy body, and doesnt harm a person, but revitalizes them, and get spine their energy.Examples of Non-carbonated drinks areReal juicesGatorade.Carbonated drinks are those drinks which are concentrated and have carbon content in them, which is generally cal lead fizz. In carbonated drinks energy drinks also come in, which consists of caffeine, which is a certain type of drug, caffeine is in that location but in a small meter, it does the practice to keep the consumer industrious and energetic.Examples of carbonated drinks arePepsi,Thumbs-upCoke rubybullCloud 9Energy drinks are beverages that are meant to be a quick fix for the feeble and sleepy. Energy drinks are canned or bottled beverages sold in convenience stores, grocery stores, and bars and nightclubs (in mixed drinks). Most energy drinks are carbonated drin ks that contain large amounts of caffeine and sugar with additional ingredients. Energy drinks are beverages that also contain vitamins such as vitamin B, taurine and herbal extracts, which dish up us to come through energy2.Market SegmentationThe whole market can be segmented into different target groups, which are shown in the chart below.Children, who are of age of 11- 15 years, can buy this product, but they may not be having enough currency and knowledge about any energy drink to go on and buy an energy drink. And it should also be noted that energy drinks contain caffeine for which children should not be advance.Teenage youth will surely be attracted to a product, as they are the younger generation who are prone to smackation, and they shall buy new products. The energy drink also benefit these people as they are very active and have a very hectic and disagreeable schedule, this energy drink can generate energy in them and dispatch all stress and exhaustion. Generall y, youth of this age get allowances from their parents, so it depends on the amount they get to leave out for a certain period of time.Consumers, who get low allowances, might not spend a lot of money for such drinks, but those consumers who get moderate or high allowances can certainly afford such energy drinks. Hence, it can be utter that youth at this age can be divided out into two different target groups.Same goes in for girlish adults. Unlike the juvenile youth, they may not go be so experi psychogenic with new products in the market, but this energy drink will surely be of an advantage to them as they also have a hectic and nerve-wracking life, this energy drink, will give them energy to work all through the day. These people will be working(a), so definitely they will have money to buy the product.Even still, the young adults can be divided in to two target groups depending on their income levels.Skilled executives are working class people who work all through out th e day and have a very stressful life, they dont do any winsome of somatogenic activity, but they can still buy our energy drink to obtain refreshed and energetic to work, and will have a complete different approach towards their work and shall be more than than time efficient. Their income level is generally good enough, so energy drinks will certainly be affordable by this target group.Unskilled Labor are also working class people but they are generally into physical labor, which requires a lot of energy to do work, they really need a energy drink to boost up their stamina and to work for endless hours. Yet a make up, the income level of such consumers plays a very important role, hostile the skilled executive, their income level is less, and hence affording such drinks is questionable, even though this drink is of much more use to these people.Last but not the least are the Sports athletes, they are recommended to have a energy drink, this is because their work is to go in in sports and physical activities, at the end of the day the sport makes them exhausted, so to take out the exhaustion they need to have an energy drink which not only makes them energetic but also provides them with proteins and vitamins, so that they coiffure their regular tasks for long hours. This energy drink also increases stamina of these athletes. authority SegmentsSo we can say that by the above consumers there can be quint effectiveness consumer groups which will buy our product, and so we shall concentrate majorly on these consumer groups and they areTeenage youth with high spending capacity, two-year-old adults of both income groups,Skilled executives,Sport athletes.We target teenage youth as they are risk takers and love to experiment new drinks, thus we will target them who are with high allowances so that they can buy more of our product.We target young adults as they work, and have a stressful life style with work and some other extra curricular activities thus, this energy drinks will be very good for them. As they are working they can buy the energy drink.We target the skilled executives as they have high spending capacities and since they have tedious work procedures and long working hours, the energy drink is for their advantage.And the sports athletes, these we will target as they have to drink a energy drink because of their lifestyle and constant practice of their sport, these athletes have a rigorous routine of sports and for them to not be exhausted, they need to have a energy drink.Criteria for selecting target marketsCONSUMPTION Our energy drink can be consumed by youngsters, working people and sports athletes. Pregnant women are not encouraged to consume our product as it dangerous for them. The reason for consuming our product is because our product refreshes you and quenches thirst faster than other liquids (except water) and it balances our sugar and calorie intake.modus vivendi As our lifestyle is changing day by day, consu mers get influenced by new products in the market, especially young generation from the age group 15-25 years. This age group has the resources to buy a new product as they are innovators. They always try exploring new products that come in the market. There are few people who do not have the resources to buy the product but are eagerly wishing to have that product. The consumers of age, ranging from 25-35 is self-sufficing considering their spending, and these people have the capacity and resources to buy and consume our product.CONSUMERS ATTITUDE Consumers view towards a new product consist of many things. Few criteria are listed belowPackaging.TasteBrand nameBrand ambassador of the productImportance to Packing plays a major role as consumers get excited when they see a product which looks very attractive.BENEFITS Our carrefour is comparatively excellent from rest of the drinks because it does not contain simulated flavors and it can be consumed by all age groups starting from 11 years and above. It contains caffeine, vitamins, and minerals which balances the sugar level in our body. For sport athletes our product is like an apple to their philia because our product acts like an energy booster for them. Caffeine after physical exercise provides them with good amount of energy that they have lost during workout and re-builds it.demographic Demographics play a major role which selecting out target market. Our product would mainly be launched in Metropolitan cities like Delhi, Mumbai, Bangalore, Chennai and Kolkata, which come nether category of tier 1 and cities like Ahmadabad, Hyderabad, Goa and etc. come under tier 2 cities. Population of the mentioned cities is more and consists of innovators and early adaptors. So our initial target would have a strong consumer base in the markets of these cities.Applying Criteria to potential segmentsPotential Target GroupsCriteriaTeenage Youth(high spending capacity)Young Adults(Low income group)Young Adults (High Income Group)Skilled ExecutivesSportsAthletes1.Consumption2.Lifestyle3.Attitude Towards New Products4.Benefits5.GographicConsidering the above table, we have concluded that our major concentration would be on the following target groupsTeenage Youth,Young Adults with high income, andSports Athletes.Customer ProfileThe above mentioned target groups consists of those consumers, who generally indulge into experiment with new goods and services in the market. They easily take the risk of laborious out new products. These consumers also have high capacity to spend on such leisure products, since their allowances or income is generally high. These consumers are generally found in tier 1 and tier 2 cities as they have more exposure to the market and all the on-going promotional activities.They are benefited with our energy drinks, as for the teenage youth, most of their time is spent in their academics, and hence they have busy schedules. Other than that, they also indulge in various phys ical activities that is taxing to their bodies. The energy drinks help them keep fresh and energetic throughout the day, and hence the results in their respective endeavors is comparatively goodYoung adults are benefited with our product, as this is the group which is mostly indulged into hard work, be it office or on-site work. They work long hours, and especially in growing cities, travelling and cut-throat competition is also a factor that can tire any individual. Having our energy drink, which contains caffeine it helps these consumers in being inflame without actually affecting their health. The efficiency of these consumers is improvised and they can work long-lived hours keeping up with the task at hand.Sports athletes will have a complete different approach and usage for this drink. They are generally into more of physical work compared to the above mentioned groups. They need supplements to replenish their body and regenerate them. Energy drinks play an important role for such refreshment. Though, they do not prefer carbonated drinks during their games, but they certainly consume it during practice sessions and work outs.Customer perceptual positioning mapFor this task, our group performed a sample work, by preparing a questionnaire. A sample of a blank questionnaire can be viewed in Appendix 1. In this survey, we asked different people questions relating to our existing brand Gatorade, its enemy brands and energy drinks. by and by the survey we could derive the following conclusions.In the survey, it was asked, that which of the attributes play an important role in an energy drink. The attributes includeEffectivenessTastePackagingStyle/TrendsFlavor options.The conclusion derived from this survey gave us the following result.Pie chart 1.From this research we concluded that EFFECTIVNESS and TASTE are the appropriate attributes that the consumer keeps in mind to judge the product and to compare the product with that of the competitors.For the posit ioning process, for our product, we chose 5 brands which are popular in the Indian market, and unyielding to position of product on the basis of comparison with the following five brandsRedbullBurnBlingXeniaCloud 9The sample population was asked to prioritize these brands on the scale of their preference considering the above mentioned five attributes.The results for the attributes TASTE and EFFECTIVENESS is shown in the following pie-charts.We made these pie charts on the basis of the ratings and then derived the percentage of outperform-loved brand for these attributes.A Perceptional-positioning mapping is a kind of visual beam which shows the customers learning of a product or brand in coitus to others in the market relating to certain attributes. In our product of Powergade from Gatorade we have considered the most relevant attributes like Effectiveness and the Taste of the drink.The following graph was made on the basis of the ratings given by the sample population to each brand based on the above mentioned attributes of the brands product. They were asked to rate the attributes on the scale of 1 5 in which1-3 was considered low and 3-5 was considered high.High TastePowergadeWe did a primary research on the effectiveness and the mouthful of our various competitors.From the perception mapping in the above graph and table we got to know the rest of each of our competitors in the market. Red Bull being high in taste and high in effectiveness becomes a tough competitor for Powergade as our product aims to give best of taste and prove to be quickly effective.The marketing mix is a combination of elements needed to successfully market any product. The marketing mix is at the heart of marketing planning. It is used to review and develop marketing dodge. These elements are commonly know as the Four Ps of marketingProduct-Our main focus is that our product must be exceptional in taste and quickly effective. Since Gatorade has an undergo research team, we will be able to achieve our goal efficiently.Price-Initially we will come up with a penetration set strategy to gain a good amount of market share and create cognisance of our product. Keeping low hurt will help us against our autopsy competitor, Redbull.Place-As Gatorade is already an established drink worldwide, Powergade will take advantage of this and will use similar distribution channels as well as new distribution channels.Promotion-Since we have a good promotional budget, high scale advertisements will be made and shown on television radio channels and huge hoarding will be put up all over the country. We will also be aiming to have celebrities to be the brand ambassadors of our drink. Other than that, we will take full advantage of the forthcoming ICC Cricket World Cup, scheduled to take place in February 2011 in the Indian subcontinent.Concentrating on all the four Ps of Marketing we will be able to achieve our desired position in the Perceptional-positioning mapping .ProductProduct Type Energy Drink.The term product includes two things obvious and intangible. It also includes services, ideas, goods, people and a mix of various elements. Our product would come under category of shopping products and non durable goods.There are common chord product levels nerve c figure product.Embodied product.augment product. join ProductCore product means the core benefits and the reason why people would ask to buy our product. The Youth age group (11-21) would buy our product because as they are prone for experiencing new product and they consider it as a style statement. Now-days young generation is facing a problem of very hectic, stressful and tiring schedule. Our product would relief them and provide with energy and prerequisite minerals. Age group (22-30) these people come under the category of extreme working people and they have a very stressful life, and as they devote very less to physical activity for them our product would refresh them and wou ld give them energy to work more efficiently. Last but not the least is Sport athletes which are our main target would buy our product because as their major time goes in playing physical sports, the water and energy level drenches down very quickly and they become exhausted very fast. Our product will be a great skillful for them.For people who are Chain smokers for them our product is like an apple to their nitty-gritty and health because our product coconut pulp which works as a nicotine reducer.EMBODIED PRODUCTEmbodied means physical goods or spoken language services that provides benefits. It consists of design, packing, ingredients and brand name.Logo of PowergadeDescription CUsersArchitDesktopbackprint.pngProduct can design front and backIngredients Coconut pulp, Water, sucrose, glucose, sodium citrate, taurine, glucuronolactone, caffeine, instol, niacinamide, calcium-pantothenate, pyridoxine HCL, Vitamin 612, artificial flavors, colors.Source(s)- (Red bull can)Durability of our product (Expiry of the product)-24 Months from the date of Manufacture.Augmented ProductAugmented product means post-purchase activity or services.In case of uncollectible goods we will replace the defective goods within a period of 5 working days and would give cash back if defective quantity is more than 2%. Minimum order of 300 pieces.Discounts are provided if there is a bulk order.We will also have a stratagem of lucky dip when you buy 4 powergade, and get 25% off.Core ProductWhen a consumer wants to buy a product, what will he or she will look into, the uniqueness of the product, and will also differentiate amid two products that how a product is different with its same type of competitors product. After comparing the consumer will buy the product which will give him uttermost benefits and, also will give him maximum satisfaction.We see that there are many energy drinks in the market and all have a same thing to say, and same benefits to give that are-Increases perfo rmanceIncreases concentrationImproves mental alertnessStimulates metabolismOur product powergade is a very unique type of product, and its uniqueness will take this product at the top of the Non-Alcoholic beverages market. You may think that how can an energy drink can be as unique as any other energy drink. Our product has all the benefits that all top energy drinks have in common, but we have added some more three features in our energy drink.Common benefits shared with the competitors will be-Increases performanceIncreases concentrationImproves mental alertnessStimulates metabolismcurious features of Powergade-Nicotine reducerMore of Vitamins spare fibre (fruity taste as fibres will be taken from fruit nectar)The nicotine reducer will help those consumers who are addicted to cigarettes, while people have cigarettes nicotine automatically gets in their blood, whereas when that consumer will have our product his nicotine count will be reduced. We will use a pinch of coconut oil as coconut is the best nicotine reducer.Our product will also have more of vitamins which will help the consumer revitalize his mind, be active and energetic all throughout the day.Additional fibre is fruit nectar which will be used in our product this will give a good and additional taste3.As we know today, the demand for energy drinks is increasing day by day in the Indian markets, there is tough competition betwixt competitors, and every company is having a wrong war with its competitors to sell its products. Red bull in that case has kept its price of a can is Rs.85, and cloud 9 has kept the price of its can Rs.90.These drastic differences in prices will be because of many reasons as for example the ingredients which are there in the drink or mainly the packaging or manufacturing of product will be different from the others, or there may be a simple reason for high prices that will be the profitability of the company.For oscilloscope up a price for our brand powergade we need a certain price objectives which will help in our determine decision, pricing objectives are goals that describe the role of price in an organizations plans, the objectives help managers as a basic guide line to develop further pricing and marketing strategies4. The pricing objectives which are required for this product will be-Market penetrationTarget rate of returnPrice stabilization pit of follow competitionMarket shareProfit maximization hard currency flowProduct line promotionSurvival in the market.5Our price will overcome the cost and therefore earning us a good profit margin. The cost will include all the internal and extraneous costs. price will be considering the taxes also on the product.Customers will feel value for money for our product as they will be at rest to the fullest.Our pricing will be complementing other Ps of the marketing mix. It should be complementing with the place it is marketed, the promotion used and the value of the product.StrategiesMarket Led Pricing StrategyMarket led pricing strategy are based on the level of customer demand for a firms products or the level of demand in the industry in which the firm operates. Market led Pricing strategy include Penetration Pricing, Skimming price, Price Discrimination, going leader, Psychological pricing and Promotional pricing. In all the market led pricing strategies our product will be using Penetration pricing and Psychological pricing.Penetration pricing is a strategy used for a new product to help establish itself in the industry. This method involves setting a relatively low price in order to gain market share and awareness. Over time, as the product established itself, the price can be raised. This strategy is suitable for mass market products that sell in large enough volumes like our powergade. It will help Gatorade to enter a well established market efficiently. One drawback of using this strategy is that customers might consider the product of low quality as it priced low. com bining with Penetration pricing is the psychological pricing. Psychological pricing is a strategy that involves using numbers like, such as $ 9.99 to make price wait lower. Hence customers psychologically feel that they are getting a bargain or better price for the product6