Case Study: 1(15 Marks) Brand Management Submission Date: 4th August,12, Submission Time: 12:00 PM Consumers want

function, flavor and simplicity. This has been the ongoing trend since carbonated beverages peaked a few years ago and were still seeing it. Consumers want to know a beverage is good for them and to see the positive results of that goodness. Flavor is personal, of course. The above statement perfectly captures the paradigm shift in the mindset of customers worldwide and the driving force when they are selecting their food products. Beverage industry has been witnessing this trend in India as well since last one decade or so when the customers started shifting their preference from carbonated drinks to fruit juices and other healthier options. The trend started by Real has got hold of almost all the major Multinational Corporations working in India leading to introduction of many global brands like Tropicana Twister and Minute Maid to tickle Indian taste buds. Indian market has always been interesting, profitable and puzzling for marketers. India is a land marked with many rich traditions and its diverse culture, and their exists tremendous opportunities and trends which may be successfully leveraged for marketplace success. The reason for decline of carbonated drinks can at least partially be attributed to growing fears over the healthiness of certain juices. The backlash against the carbonated beverages industry may prove to be a warning to juice companies that consumers are becoming more aware of the amount of sugar that a beverage contains. With record levels of obesity and diabetes prevalent in society (something also widely reported in the mass media), it is little wonder that consumers are looking to moderate or eradicate the consumption of products which are deemed too sugary. The West, at not its Best in Beverage Market: The following table briefly captures the beverage market sentiments of US market:

The table clearly indicates that after moving away from carbonated drinks, the picture is not too rosy for the juice makers as well, the consumer preference is shifting towards 100% fruit juice and vegetable juices. In their pursuit for growth the marketers keep on exploring new avenues and opportunities for growth. One such stride was launch of coconut water in US markets. The size of the coconut water category itself is estimated at between $60m and $72m, with this figure expected to comfortably surpass $100m within three years. It is therefore the case that coconut water is still very small in relation to the overall size of the juice market (, but it is the rapid rate of growth which is generating considerable buzz in the industry, including among the core stakeholders. The popularity of coconut juice is largely attributed to the immense health benefits associated with same. The various health benefits associated may be summarized as under:

In some markets of the world, Coconut water brands are integral to a beverage company portfolio. They are positioned on health platform, on taste, unique flavors etc. In many cases it has been positioned as a health supplement for athletes and sportsperson, As a professional puts it, Although not considered primarily a sports nutrition product (certainly not compared to isotonic drinks), the benefits of coconut water closely align with that of a product designed for athletes. In particular, it is said to effectively rehydrate the consumer, making it suitable for post-exercise consumption. In recent times, industry players have attempted to shift the perception of coconut water as a suitable product for all sportsmen and sportswomen In June 2010, US tennis player John Isner contested the longest ever tennis match at Wimbledon, breaking several world records and earning plaudits for his endurance. After the match, Isner told the LA Times: Coconut water helps me rehydrate really well. Years past, I'd have issues with cramping. But ever since I've started drinking it the night before, I've nipped that problem in the bud. The products are also becoming increasingly popular in the NFL (American football) and NBA (basketball), both of which have an extremely high viewership in the US. The juice has been dubbed a natural sports drink by some, as it is said to aid energy levels, being high in both potassium and electrolytes. Apart from the health benefits and celebrity endorsements coconut water market has witnessed many innovations in terms of flavor and other interesting propositions. For example in US market Bacardi launched Bacardi Rock Coconut and claiming it to be the first coconut rum infused with rock melon and coconut water. In France Nestle launched 50% coconut water in one of their functional drink with following variants: a) Equilibre (Balance): targeting young adults, containing lemon and Vitamin C b) Protect: targeting seniors, containing zinc, pomegranate and selenium c) Vitalise: targeting children, containing vitamin D and milk. Some brands came up with their organic offering, while some started offering coconut water with added minerals, vitamins, anti aging benefits etc. A snapshot of major US players in coconut market is as follows:

Vita Coco happens to be the market leader in US with a market share of 60% , it has also launched flavored coconut water in US market as well with pineapple, lemon, and orange as few popular flavors in its kitty. It is the first coconut water brand sold at US airports and in-flight. Considering the enormous growth potential Pepsico and Coca Cola have also invested in this markets through O.N.E and ZICO respectively. Coconut: The revered tree in India, Unlocking the hidden potential: The Coconut Palm (Cocos nucifera Linn.) is supposed to be one of the five legendary Devavrikshas and is eulogised as Kalpavriksha - the all giving tree - in Indian classics. Coconut is grown in more than 86 countries worldwide, with a total production of 54 billion nuts per annum. India occupies the premier position in the world with an annual production of 13 billion nuts, overtaking Indonesia and the Philippines, the other two prominent coconut-growing countries. The coconut palm is a versatile tree crop; no other tree crop grown can match coconut palm in its versatility. It provides nutritious food and a refreshing drink, oil for edible and non-edible uses, fibre of commercial value, shell for fuel and industrial uses, thatch, an alcoholic beverage, timber and a variety of miscellaneous products for use as domestic fuel In India, coconut is cultivated mainly in the coastal tracts of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Orissa, West Bengal, Pondicherry, and Maharashtra and in the islands of Lakshadweep, Andaman and Nicobar. Of late, coconut cultivation has been introduced to suitable locations in non-traditional states including Assam, Gujarat, Madhya Pradesh, Rajasthan, Bihar, Tripura, Manipur, and Arunachai Pradesh and in the hinterland

regions of the coconut growing states. Kerala is the main coconut growing state with an area of 10.20 lakh hectares and production of 5911 million nuts, followed by Tamil Nadu (3.20 lakh hectares and 3716 million nuts), Karnataka (2.87 lakh hectares and 1493 million nuts) and Andhra Pradesh (0.95 lakh hectares and 780 million nuts). These four southern states together account for 90 % of the total production in the country. In productivity too, India ranks number one among other coconut growing countries in the world. The average productivity of coconut in the country is 6898 nuts per ha. Among the four major coconut growing states, Tamil Nadu has the highest productivity (11 620 nuts/ha), Andhra Pradesh has a productivity of 8296 nuts/ha, followed by Kerala (5793 nuts/ha) and Karnataka (5204 nuts/ha). All India estimates of coconut production is as follows:
2007-2008 (Revised)
States /Union AREA ('000Production Hectares) (Million nuts) Territories
Productivity (Nuts/ha)

2008-2009 (Final)
AREA ('000Production Productivity Hectares) (Million nuts) (Nuts/ha)

Andhra Pradesh 101.32 Assam Goa Gujarat Karnataka Kerala Maharashtra Nagaland Orissa Tamil Nadu Tripura West Bengal A & N Islands Lakshadweep Pondicherry All India 19.00 25.50 16.40 405.00 818.80 21.00 0.90 51.00 383.37 5.80 28.60 21.60 2.70 2.20 1903.19

1119.26 136.00 127.60 138.30 1635.00 5641.00 175.10 0.20 275.80 4968.20 11.40 355.50 80.60 53.00 26.60 14743.56

11047 7158 5004 8433 4037 6889 8338 222 5408 12959 1966 12430 3731 19630 12091 7747

104.00 18.80 25.61 15.98 419.00 787.77 21.00 0.92 51.00 389.60 5.80 28.60 21.69 2.70 2.10 1894.57

970.00 147.10 128.18 157.42 2176.00 5802.00 175.10 0.55 275.80 5365.00 11.40 355.50 82.00 53.00 30.70 15729.75

9327 7824 5005 9851 5193 7365 8338 598 5408 13771 1966 12430 3781 19630 14619 8303

India enjoys a very strong position in terms of coconut production but has not taken commercial leverage of the same. The coconuts are transported from one part of the country to another and are sold on hand driven carts or

other retail outlets. But there exists a huge potential to leverage the opportunity of selling coconut water in the country. The health benefits of coconut water are well established but still its consumption is limited, none of the beverage organisation has made an attempt to commercialize and capitalize on the benefits of coconut water. The recently witnessed backlash against the carbonated beverages industry may prove to be a warning to juice companies that consumers are becoming more aware of the amount of sugar that a beverage contains. With record levels of obesity and diabetes prevalent in society, it is little wonder that consumers are looking to moderate or eradicate the consumption of products which are deemed too sugary. It is telling that the only sub-category which has grown both historically and in forecast is juice, which is typically regarded as the healthiest of the available options regarding ingredients and formulation. An Indian beverage company is contemplating with the idea of introducing packaged coconut juice in market. Suggest the positioning platform for the product, create a brand identity, decide the core values of the brand and decide on programs to communicate the same, how you will differentiate your offering from others, and how you will build relationship with customers? Instructions for Submission: The assignment may be submitted in group of 2. Not more than 2 students are permissible in one group, although if the student desires he may submit individually. The groups may be inter-sectional as well. Clearly hand written in not more than five (5), A-4 sheets both sides written. In case of any strange similarity of answers between two groups, any instance of copying will invite a penalty of zero marks to the groups involved. No clarification in this reference will be seeked or entertained. No request for the extension of submission time or date will be considered under any circumstances.