COCONATURA

Rejuvenating Life
Vision
“Promoting health and happiness through our offerings all over the world”

Mission
“To quench the thirst of every Indian in a purely Natural and Healthier way”

USP
“Super-Hydrating Life Enriching Nuts from Nature”

SWOT analysis
 Strengths

• 100% natural product with no artificial additives

• Healthy drink in packaged form made available at all places without any obstacles of
waste and space

• Can reach tropical regions with absolutely no coconut cultivation

• Better shelf life

• Extracted from best quality coconuts

• Uniform taste

• True value for money- Uniform quantity

 Weakness

• Lesser margin.

• Limited shelf life.

• Smaller target market.

• Lack of expected benefits compared to natural coconut- Malai.

 Opportunities
 • To position as easily absorbing mineral supplement.

• To position as Lowest calorie contained quencher(Ex-water).

• To became a part of healthy diet.

• A perfect substitute for powdered mineral supplement.

• Perfect low waste substitute for coconut water.

• To sell malai with existing product.

• To add new products by including different flavours

 Threats

• Local “Coconutwala”(Anna)

• Competition from Unbranded players

• Indirect competitors

• Traditional ideas – resistance to change.

• Competitors entering with superior products

• Unexpected increase in raw material cost

STP



Segmentation

• According to business segments

Targeting

Phase 1 Explained:
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In the initial phase, we would enter the market slowly and gradually and target markets
which require least advertising campaigns. We are going to target the corporate canteens
and educational institutes with canteens. We would also go to the various event organizers
who would place our product in their list of items.

Phase 2 explained:

In the second phase, we would make the product available to the masses as a whole. Along
with retailers, we would target various other institutional buyers who would require our
product.

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Institutional Buyers

Retailers

Positioning

Gyms, Spas, Yoga Centers

Hotels, Airlines, IRCTC

Hospitals, Health Clinics

Railway Canteens

Make available the product to each and every customer

 Our product would be positioned as a Healthy Thirst Quencher

Marketing Objectives
 To position ourselves as the most sought after nutritious thirst quencher

 To switch customers from buying natural coconut water to buying Tetra packs

 To be a healthy substitute for carbonated drinks

 To reach wherever customer needs it, whenever customer needs it

Research Objectives
 To find out the feasibility of the new product

 To find out the demand for the new product

 To find out the different markets in which the new product could be launched

Marketing Research
 Marketing Research

 Questionnaire for food contractors

• It is attached in the appendix section. The survey was not conducted due to insufficient
resources.

 Evaluating the following potential markets

• Corporate Canteens as well as Canteens in Educational Institutes

• Railway canteens

• Hospitals

• Hotels

• Gyms and Spas

• Event Organizers

• Others
 Action Plan
 Communication

 Product

 Packaging

 Promotions

 Pricing

 Distribution

PRODUCT

PACKAGING

PROMOTIONS
 Promotional Campaigns- Phase 1

• Objective:

 Avoiding huge promotions and passing the benefit to the food contractors so
that they push our product

• Tie up with the corporate reading rooms and canteens for promotions

• Providing Ice Box to the canteens

• Variable Offers over bulk purchase

 Promotional Campaigns-Phase 2

• Smart Nuts of India Contest

 Win a trip to Brazil, the Coco Land

• Campaign in association with WHO to safeguard people against Dehydration

• Radio Program Sponsored by CocoNatura

 Fresh Songs to be played depicting freshness of our product

• Booklet along with 500ml depicting Health benefits and recipes of Coconut Water
 • Brochures and posters in Hospitals, at health clinics

• Print Ads in Newspaper and Health Magazines

• Posters depicting Health as well as fitness at Gyms, Hospitals, Dispensaries, Hotels

• Covert Advertising in Sports events and films

• Social Marketing: Creating buzz about CocoNatura

PRICING

 Fixed Cost

Fixed Cost Rupees

Land and building 25,00,000

Plant and Machinery 30,00,000

Preliminary
3,00,000
Expenses

Working Capital 10,00,000

R&D 5,00,000

Contingencies 2,00,000

Total 70,00,000

 Phase 1 Pricing Structure

 Variable Cost per unit=Rs 7.75

 Selling Price to the Food Contractors= Rs. 12

 Selling Price to the Consumers= Rs15(MRP)

 Phase 2 Pricing Structure

 Variable Cost per unit=Rs. 7.75

  Selling Price to the Distributors= Rs. 10

 Selling Price to the Retailers= Rs. 12(MRP)

 Selling Price to the Consumers= Rs. 15

“In Case of Any Functions and during Bulk Orders Company Will be Directly Distributing With out any
Channel Member”

 Variable Cost

Variable Cost Cost per unit (200 ml)

Raw Coconut 4

Processing 1

Labour 0.5

Packaging and Labeling 1

Logistics 0.25

Promotional Activities 1

Total 7.75

 Break even Analysis

 Output per day=2000 liters

 Capacity of one packet=200 ml

 No. of Packets produced per day=10,000

In Terms Of Output = _______Fixed Cost_________

Contribution per unit

(Contribution = Sales/unit – Variable Cost/unit)

In Terms Of Output = 70, 00,000_______

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In Terms Of Output

In Terms Of Output

Therefore 16, 47, 059

Phase 1

Phase 2

Retailers:
=

=
Rs 12 - Rs 7.75

70, 00,000_______

4.25

16, 47, 059 units

units should be produced in order to get the Break-even-point.

Since in 1 day 10,000 units of the product is being produced, then the pay back period would be 165
days

DISTRIBUTION

Institutional Buyers
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fR COMPETITOR’S ANALYSIS
There are currently no organized players in India for this product. However, in USA Vita Coca has
started the trend of selling coconut water in tetra packs in areas where availability of fresh coconut
water is distinct possibility. It is being seen as very big competitors for sports drink section as the
product has high vitamin content.

However, in India there are a few players trying to sell coconut water in packs. However, neither these
players are organized nor the water is fresh. Also, leading beverage supplier Pepsi is going to launch
coconut water in Brazil.

Substitutes for the Product:

Fresh coconut water, other healthy beverages

Few problems with the product:

Coconut water gets spoiled as soon as exposed to air. To maintain the stability of the product,
it has to be stored at a very low temperature (preferably -4 degree Celsius)
People like to eat the Malai that comes with the coconut water. The person using the product
won’t be able to get this added advantage
The quantity of water in the coconuts varies due to which the effective cost of the product
would increase
The margins on the product are much less than the margins that other fruit drinks and
beverages enjoy.
 DECISION OF OUR GROUP:

The main problem with launching the product is its stability and freshness. If our R & D team comes up
with a solution for that, then we are looking forward to go ahead with the product and launch it.

Our company would get the first mover advantage and can easily skim the market with its innovative
marketing ideas.

APPENDIX
 Questionnaire for Food Contractors

1. Name of the firm: - ___________________________

2. Contact No.: - _________________

3. E-Mail ID: - _____________________

4. Average number of clients you service in a day?

5. Major clients include __________________

6. How many bottles of beverages are sold in a day? _______

7. The demand for pure fruit beverages like Minute Maid is more than for carbonated soft

drinks like Pepsi. Do you agree with this statement?

a. Yes

b. No

c. Almost similar demand

8. Which brand of fruit beverage do you supply the most? State the flavor of the same.

___________

9. Have you come across a product which consists of pure coconut water in tetra packs?

a. Yes Please specify the brand:_________

b. No

10. Will you stock such a type of product i.e. pure coconut water in tetra packs in your

stocks?

a. Yes
 b. No

If yes, then how much quantity (units of 200ml) would you order in a month?______

11. How much shelf life would you expect from such a type of product?

a. 10 days

b. 1 month

c. 3 months

12. What would be the right price for 200ml tetra pack as per you knowledge?

a. Rs 10

b. Rs 15

c. Rs 20

13. What is the profit margin expected from such a kind of product?

a. 10%

b. 15%

c. 20%

d. Above 20%

14. Would you push the product from your side?

a. Yes

b. No

15. Any other suggestions? ___________