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MARKETING PLAN: VITRI+

(HEALTH DRINK)

SUBMITTED TO:
PROF. PRATIK MODI

SUBMITTED BY:
ARSHIA GUPTA

(32057)

HIMADRI SARKAR

(32068)

LIPSA MISHRA

(32078)

MAYANK TIWARI

(32079)

SHIPRA SHARMA

(32092)

(GROUP 6: SOCIAL LOAFERS)

TABLE OF CONTENTS
Executive Summary ............................................................................................................................... iii

Situation Analysis ................................................................................................................................... 1


Market Need Identification ................................................................................................................. 1
Market Growth and Trends ................................................................................................................. 1
Product and its Characteristics ............................................................................................................ 2
Market Segmentation, Targeting, and Demand Estimation ................................................................ 4
Competitor Analysis ............................................................................................................................... 5
Macro Environment ................................................................................................................................ 6
Customer Profile ..................................................................................................................................... 7
Objectives ............................................................................................................................................... 8
Positioning .............................................................................................................................................. 9
Branding.............................................................................................................................................. 9
Brand Identity ..................................................................................................................................... 9
Packaging .......................................................................................................................................... 10
Pricing ................................................................................................................................................... 10
Distribution ........................................................................................................................................... 11
Promotion.............................................................................................................................................. 13
Communication Mix ............................................................................................................................. 13
Financial Analysis................................................................................................................................. 14
Implementation ..................................................................................................................................... 17
Evaluation and Control ......................................................................................................................... 18

LIST OF ANNEXURES
Annexure I .............................................................................................................................................. v
Annexure II ............................................................................................................................................. v
Annexure III ........................................................................................................................................... vi
Annexure IV........................................................................................................................................... vi
Annexure V ............................................................................................................................................ vi
Annexure VI........................................................................................................................................... vi
Annexure VII ........................................................................................................................................ vii
Annexure VIII ....................................................................................................................................... vii
i

Annexure IX......................................................................................................................................... viii


Annexure X .......................................................................................................................................... viii

LIST OF FIGURES
Figure 1: Functional Beverages Market, 20032013, India .................................................................... 1
Figure 2: People Spending Above Urban Average on Processed Foods and Beverages ........................ 4
Figure 3: Types of Customer Profiles ..................................................................................................... 8
Figure 4: VITRI+ Logo ........................................................................................................................... 9
Figure 5: A Two Level Distribution Channel for Office Canteens and Gyms ..................................... 11
Figure 6: A Two Level Distribution Channel for Departmental Stores ................................................ 12
Figure 7: A One Level Distribution Channel for Super Stores ............................................................. 12
Figure 8: Compact Display Refrigerator (Merchandise) ...................................................................... 13

Figure 9: Pack Design, Tetra Prisma Aseptic Package ........................................................................ vii


Figure 10: Pack Design, Tetra Gemina Aseptic Package ..................................................................... vii
Figure 11: A Need Functionality Matrix for Tetra Aseptic Packages................................................... vii

LIST OF TABLES
Table 1: Initial Marketing Investment on Awareness Creation and Brand Building ............................ 15
Table 2: Projected Operating Income for First Five Years of Operation .............................................. 16
Table 3: Break-Even and ROMI ........................................................................................................... 16
Table 4: Annual Cost of Website Operation ......................................................................................... 17
Table 5: Sales Promotion Cost for First Five years of Operation ......................................................... 17

Table 6: Filtering of Population of Ahmedabad, Anand, and Baroda on the Basis of MPCE ................ v
Table 7: Characteristics of Various Segments (Divided by Age) ........................................................... v
Table 8: Distribution of Population (above MPCE mark of INR 74) in Ahmedabad ............................ vi
Table 9: Estimated Population Consuming atleast One Health Supplement in Ahmedabad ................. vi
Table 10: Population Dissatisfied with Consumption of Beverages in Ahmedabad ............................. vi
Table 11: Consumption (in units) of Our Health Drink in the First Year in Ahmedabad...................... vi
Table 12: Newspaper Rates for the City Edition of TOI + ET for Ahmedabad .................................. viii
Table 13: Number and Types of Departmental Stores in Ahmedabad ................................................ viii
ii

EXECUTIVE SUMMARY
In 2009, a population close to 570 million was calorie sufficient but nutrition deficient in India. This
means that even though people are consuming a sufficient diet, their food lacks essential
micronutrients, thus exposing them to a plethora of non-communicable diseases. Also, with an
increasing pace of life, particularly in urban centres of India, lifestyle related disorders are constantly
on a rise. To cope with such deficiencies and disorders, an external intervention is required in the
form of nutraceuticals. Products such as energy drinks, glucose, and juices constitute functional
beverages, which come under nutraceuticals.
Functional beverages market was INR 6.7 billion in 2008 and is set to grow at approximately 20% to
reach INR 16.6 billion in 2013. The increasing market for gyms, dietary supplements, and energy /
sports drinks indicate a growing awareness about health and an increasing need to consume products
to deal with micronutrient deficiency. The product, VITRI+, thus developed is a health drink
designed to satisfy the daily micro-nutritional requirements of people.
The health benefit a customer gets from just one serving of VIRTI+ would be more balanced than in
any other product. This would provide an edge over current market products which basically contain
limited types ofmicro-nutrients. In addition to this, absence of caffeine makes the drink healthier.
Given the choice of three cities Ahmedabad, Anand, and Baroda Ahmedabad proved to be the
most appropriate market. The population incurring expenditure on processed foods and beverages was
the maximum in Ahmedabad. Also, in 2010, Forbes Magazine classified Ahmedabad as the fastest
growing city in India with a per capita income twice as that of the country.This implies better job
opportunities coupled with an augmented purchasing power in the city, thus a larger market to serve.
Analysing the needs of various age groups, it was found that the product would cater best to the needs
of youth and the middle-aged people, wanting to balance their nutritional requirements to prevent
lifestyle related disorders. The age group targeted, thus, ranges between 2050 years.Making use of
surrogates and data from available surveys, the demand estimated in the first year of operation is close
to 5 lakh units.
Even though the product is of a relatively new type, there exist a few close substitutes for the same.
The main competitors for VITRI+ include juices, malt based beverage and daily health supplements.
Multinational brands such as Coca-Cola, PepsiCo, Cadbury,Dabur,Heinz, and Ranbaxy are the major
players in this market.
After analysing the need and the market characteristics, it is essential to develop a strategy make the
brand popular amongst the target segment. Since our target is the relatively well-off section of the
society, a premium image has to be built for the product. This can be primarily done through the
packaging and pricing, supported by an appropriate communication mix.
One serving of 200 ml is proposed to be packed in an eight-edged Tetra Prisma Aseptic Package,
which is expected to lend an advanced image, functionality, and value to the product. Also, at an MRP
of INR 25, VITRI+ would be priced slightly higher than the available products in the market.
To have an exclusive access to the product by its target customers, VITRI+ would be made available
through departmental stores (organised retail), gyms, and in office canteens. It has been documented
by analysts that most upmarket consumers purchase their daily consumables through organised retail
iii

stores. Thus, placing the product at an eye-level in such stores is expected to induce trials for the
same. Additionally, gyms and offices are the places where most of our target segment spends most of
its time. Placing VITRI+ in such locations would increase the visibility and accessibility to the
product. We also propose placing compact display refrigerators in office canteens and gyms to
increase visibility and subsequently the trials for the same.
Communication media such as social networking sites, word-of-mouth, print media, and product
website would be employed to assist in brand building, which is the key to induce trials for any
product.
The financial analysis reveal that the VITRI+ would be able to break even in its first year of operation
and would be able to earn a return on marketing investment of about 20.9% over a five year period.
The costs incurred would be in the form of promotion costs, advertising costs, and web hosting costs.
The plan would be implemented in three stages. The pre-launch stage would involve identification of
the latent need towards a complete micro-nutrient intake through social networking sites and word-of
mouth. The latter would include opinion leaders such as gym instructor and dieticians. The launch
phase would be supported by aggressive print campaigns, playing up the products point of
differences, directed at inducing trials. The post-launch stage would involve floating the success in
numbers of the brand and reinforcing the choice for the same.
Having said this, it does not guarantee success of the product. Feedback from various stakeholders is
necessary to reduce the gap between the expected and the perceived benefits of VITRI+. Online
customer satisfaction polls and comments along with feedback from retailers, canteen operators, and
gym instructors would help in incorporating the changes in the short term operational plans.

iv

SITUATION ANALYSIS
MARKET NEED IDENTIFICATION
In India, there are people in the high and middle income group population with sufficient purchasing
power to consume an adequate calorie diet. However, there is a high possibility that their food is
lacking in important micronutrient content. In 2009, a population close to 570 million was calorie
sufficient but nutrition deficient 1. It means even though people are consuming more than sufficient
calorie rich foods, the intake of micronutrient rich content is low.
To cope up with the fast pace of life, fast-food culture is becoming popular amongst the urban middle
and upper class. With increasing purchasing power, people are more inclined to spend more on
products convenientto consume. This results in an intake of high-fat and high-cholesterol diet, making
people more susceptible to lifestyle disorders 2. By 2015, India is expected to incur an accumulated
loss of INR 11.2 trillion 3 due to unhealthy lifestyles and faulty diet 4.
It is because of this absence of adequate nutrition in diet, that we need an external intervention in the
form of nutraceuticals. Three categories of supplements have been put under the purview of
nutraceuticals: dietary supplements, functional foods, and functional beverages.

MARKET GROWTHAND TRENDS


In 2008, Indias nutraceuticals market was pegged at INR 44 billion. However, there exists a huge
potential market for nutraceuticals.The functional beverages market is expected to reach INR 16.6
billion by 2013 at a CAGR of 19.9%. Earlier, the market grew at astupendous rate of 91.5% from
2003 to 2008. 5
Figure 1: Functional Beverages Market, 20032013, India

Source: Functional Drinks Market in India to 2013, Research and Markets, Feb 2011
1

Nutraceuticals: Critical Supplement for Building a Healthy India, Ernst & Young and FICCI, 2009 (pp 19)

FMHG market in IndiaA close view, Express Pharma Online, 16-31 Mar 2009, Accessed 10 Mar 2012

(http://www.expresspharmaonline.com/20090331/management02.shtml)
3

USD 236.6 billion converted to INR using exchange rate 47.275, one year average (10 Mar 2011 11 Mar 2012)

Preventing Non Communicable Diseases in the Workplace through Diet and Physical Activity, World Health organization

and World Economic Forum, 2008 (pp 14)


5

Functional Drinks Market in India to 2013, Research and Markets, Feb 2011

(http://www.researchandmarkets.com/reports/1583377/functional_drinks_market_in_india_to_2013_soft)

A survey conducted by Agriculture and Agri food, Canada 6 in 2007 showed that 80% Indians gave a
thought to health conditions before making a choice for food and drinks.
Rapid growth of over the-counter (OTC) vitamins and mineral supplement market is an indicator of
increased emphasis on a healthy life. The retail market of vitamin and dietary supplements has
doubled during the period of 2001 and 2008, totalingINR 26.6 billion 7 in 2008. This is expected to
increase to INR 35.4 billion 8 by 2013.
Also, a growing need to stay healthy has paved way for many gyms and slimming centers. During
20052008 the market for slimming centers and gyms grew at a rate of 23% and 33%respectively,
portraying an increased concern in people to keep fit.
According to a survey by ASSOCHAM 9 during Oct 2011 Jan 2012 10, about 78% of people in urban
centres of India consume at least one dietary supplement such as pills, energy drinks, steroids and
high protein supplements on a regular basis. The survey further highlights that Delhi-NCR, Mumbai,
Haryana, Chandigarh, Hyderabad, and Ahmedabad are the top five cities in consumption of dietary
supplements.It also states that 86% respondents consumed sports drinks, 75% vitamin and mineral
tablets, 65% energy drinks, 25% herbal supplements, and 15% consumed protein and milk
supplements. The respondents, on an average, spent upto INR 2,000 4,000 on a monthly basis on
such supplements.

PRODUCT AND ITS CHARACTERISTICS


Value Proposition
Currently there are no / few (imported) functional beverages available in the market providing a onestop solution to nutritional deficiency.Hence, there is a latent demand for the same, especially for
people who are dissatisfied with the available beverages which claim on providing health benefits. To
address this need we plan to launch a health drink, VITRI+, which will satisfy the daily micronutritional requirements of people. This nutraceutical based health drink will have the category
membership of functional beverages.

Product Characteristics
The product would contain all the attributes of a balanced diet i.e. the drink will contain protein,
carbohydrates, fats, vitamins, minerals, and other essential micro nutrients. The potency of the drink
will be kept on the lower side in comparison to diet supplementing pills. This is because it is much
easier for the body to digest liquids in comparison to solids; hence strength of the drink must be

The survey was accessed from the website (http://www.ats-sea.agr.gc.ca/asi/5476-eng.htm#a)

USD 563.2 million converted to INR using exchange rate 47.275, one year average (10 Mar 2011 11 Mar2012)

USD 749.4 million converted to INR using exchange rate 47.275, one year average (10 Mar 2011 11 Mar2012)

Associated Chambers of Commerce and Industry of India

10

The survey was conducted in major states-cities of Delhi-NCR, Mumbai, Haryana, Kolkata, Bangalore, Chennai,

Hyderabad, Ahmedabad, Chandigarh, Jaipur, and Lucknow. The survey involved 2,500 adolescents (almost equal number of
males and females) in the age-group of 14-30 years

reduced to prevent any overdose probability in the consumer 11. Further, no stimulant will be added in
the product although there might be artificial colouring and taste.
The product is an amalgamation of functionalities provided by many products currently available in
the market. To get an accurate understanding of the product that we have envisaged, it would be
effective to compare our product to these existing products. Following is the comparison in terms of
functionality and target population of various health related products compared to our product.
Fruit Juices
Most juices available in the market have been positioned as a healthy alternative to carbonated
drinks 12. These products are advertised to contain sufficient nutrients for them to be a replacement for
a meal. In reality, however, the compositions of juices dont constitute a balanced diet.
Similar to these juices, our product also claims to fulfil nutrient requirement of the body. However,
unlike them, the synthetic composition of our product would allow it to provide a balanced level of
micro-nutrients.
Energy Drinks and Sports Drinks
Energy drinks usually contain a large quantity of sugar in addition to caffeine which stimulates the
body and brings it out of lethargy. However, apart from these two constituents, energy drinks do not
provide any nutritional benefit.
Sports drinks are aimed at consumers who like to replenish the minerals and liquids lost due to
sweating. These products are mainly targeted at athletes and sportspersons 13. Since the sports drinks
are meant to replenish lost minerals they do not fulfil the bodys micro-nutrient demands for day to
day processes.
Malt Based Drinks
Probably the closest substitutes currently available in the market are malt based drinks. Similar to our
offering, malt drinks provide a complete nutritional package. However, these products are mainly
aimed at parents who are concerned about the health of their kids.
The point of difference between our product and malt drinks is a different target segment and ease of
use. As mentioned earlier, malt drinks are developed for children and are available in powder form
which call for require some sort of preparation. Our product, on the other hand, is targeted at healthconscious people having hectic lifestyles and is an on-the-go consumable.

11

Are too many vitamins bad for your health?,ABC News, 27 Feb 2007, Accessed 15 Mar 2012

(http://abcnews.go.com/Health/Diet/story?id=2908054&page=1#.T2NMSRHxq8A)).
12

Power Moves: Dabur, Business Standard, 20 Dec 2011, Accessed 15 Apr 2012,

(http://www.business-standard.com/india/news/real-refreshed/418834/)
13

Gatorade Case Study: Using Consumer Segmentation and Social Media to Drive Market Growth, Datamonitor, 13 Jan

2011, Accessed 15 Apr 2012, (http://www.datamonitor.com/store/Product/toc.aspx?productId=CM00056-009)

MARKET SEGMENTATION, TARGETING, AND DEMAND ESTIMATION


As seen from figure 2, the top three divisions of MPCE 14 category have the capability to spend a
significant amount of money on consumption of processed foods and beverages.
Figure 2: Percentage of People Spending Above Urban Average on Processed Foods and Beverages

Amount spent above urban


average of INR 74

Source: Nutraceuticals: Critical Supplement for Building a Healthy India, Ernst & Young and FICCI, 2009

Analysing figure 2, we find that 23% of the total Indian population resides in urban areas. Further, 7%
of the total population (which resides in urban areas) incurs MPCE above INR 74 on processed foods
and beverages. This implies that nearly 30% 15 of the urban population is a potential market for
processed foods and beverages.

Geographical and Income


The choice of location was to be selected amongst the three cities / towns Ahmedabad, Anand, and
Baroda. Ahmedabad falls under the A category, while the other two fall in C and B-1 respectively.
Ahmedabad has a total population of 17.7 lakhs above the MPCE level of INR 74. This population is
much higher than the entire population of Anand and Baroda. 16 .Also, according to the Forbes
Magazine, Ahmedabad was the fastest growing city in India in 2010. 17 This implies better job
opportunities coupled with an augmented purchasing power in the city. In addition, Ahmedabad has
the highest literacy rate in Gujarat standing at 79.5% 18. Through this we assume, in comparison to
other parts of Gujarat, a significantly larger proportion of population would understand the gravity of
consuming a balanced diet. In effect, we can say that a larger market of people can be targeted in
Ahmedabad who would be willing to spend their income on consumables such as health drinks.
Age

The possible segments can be divided according to age and resultant lifestyle characteristics 19.Since
our product is basically a health supplement drink catering to the nutritional deficiencies, arising out
of lifestyle disorders and imbalanced diet, the appropriate target segment would be the youth and the
14

Monthly Per Capita Expenditure

15

(7/ 23)*100

16

Refer to Annexure I

17

Cheers Ahmedabad! City is racing ahead, DNA, 16 Oct 2010, Accessed 14 Mar 2012

(http://www.dnaindia.com/india/report_cheers-ahmedabad-city-is-racing-ahead_1453361)
18

Ahmedabad, Vibrant Gujarat, Industries Commissionerate, Government of Gujarat

19

Refer to Annexure II

middle-age category, i.e. population broadly belonging to 2050 segment.Thus, the market size of
17.7lakhs is reduced to 8.2 lakhs 20.

Demand Estimation
Further, as stated earlier, about 78% people in urban centres of India consume at least one health
supplement on a regular basis. These people exhibit the behaviour which may be considered as healthseeking. Ahmedabad is one of the top five cities in consumption of health supplements. Thus,
extending the above percentage of dietary supplement consumers to the previous estimate, we obtain a
population of about 6.4 lakhs regularly consuming atleast one dietary segment 21 . Taking a
conservative estimate, we have a considerable market of approximately 5 lakh consumers who
demand nutraceuticals.
Since VITRI+ is a health drink, we need to find out how many people preferconsuming a beverage to
manage their health.Although, the entire set of people consuming beverages for health benefits would
be our target, in the initial years of operation our plan would be to aim at people who are dissatisfied
with consumption of other beverages for health reasons. We obtain a population size of about 0.21
lakhs 22.
Additionally, the normal consumption cycle of dietary supplements is for 23 months at a
stretch,whichcan be re-started after a gap of 15-20 days 23. Taking a conservative estimate, we can say
the consumption cycle of people is 3 months (2 months consumption and 1 month break). This means
VITRI+ can be consumed for 8 months per year by a consumer. Thus the demand for the drink (in
units) can be estimated as approximately 5 lakh units 24,25.

COMPETITOR ANALYSIS
The various competitors to our product that exist in the market can be divided into 4 broad areas:
1.
2.
3.
4.

Malt based beverages:Bournvita, Complan, Horlicks, and Maltova


Juices: PepsiCos Tropicana 100%, Reals Active Juice
Daily food supplements: Ranbaxys Revital, Amways Nutrilite
Glucose powders: Heinz Indias Glucon-D

The competitors can be analysed based on the following parameters:


Strategies and Objectives: GlaxoSmithkline (GSK) has four brands namely Horlicks, Boost, Viva,
and Maltova; Heinz India has Complan; and Cadbury have Bournvita. The visibility of Bournvita is

20

Refer to Annexure III

21

Refer to Annexure IV

22

Refer to Annexure V

23

Ranbaxy Revital (Ginseng, Vitamins and Minerals), HerbalCure India, Accessed 18 Mar 2012,

(http://www.herbalcureindia.com/ranbaxy/)
24

Refer to Annexure VI

25

Assuming a 10% market share in the first year of operation

the highest because of the differently sized (200gm, 500gm) refill pack which provide a better margin
for the retailers 26.
The major competition in our target segment is the Juices in the market which are increasingly
claiming to be 100% natural or containing no sugar etc. Juices inherently have the same nutrient
composition as the fruits that they are made from and provide a variety of flavours.
Revital and Nutrilite are sold through pharmacies as well as direct sales. These products claim to
provide all required nutrients and ingredients such as ginseng to rejuvenate the body. Further, the
other supplements such as whey protein, protein shakes etc. are aimed towards young men who go to
gym regularly. The sales of these products are quite low due to high price (INR 2,000-4,000 for a
pack of 2.27 kg), low availability, and small market segment.
Share of Market: Glaxo SmithKline (GSK) is the current market leader in Malt Based Beverages at
national level with 70% market share followed by Cadbury and Heinz at 17% and 12% respectively27.
In the Indian beverage market (includes juice drinks such as Frooti, Minute Maid etc.) Coca-Cola
leads with a 31% share of sales value followed by Parle Agro with 26% and PepsiCo with 21% of
sales in 2010. Daburs juice drinks are yet to become serious threats to the major players 28. Survey of
Ahmedabads proxy city Anand reveals that each month INR 300,000 worth of Tropicana and INR
400,000 worth of Real juice is sold.
Selecting Customers: Malt based beverages have positioned themselves as products for adolescent
children and more specifically their mothers who are concerned about their growth and all- round
performance. Daburs Real Active fruit juice supplements nutrient requirement and is a more
convenient way for a person with a busy and hectic life style. Products such as Ranbaxys Revital are
aimed at the working class who find it difficult to maintain a work life balance.

MACRO ENVIRONMENT
Demographic Environment
Population Growth: The population of Ahmedabad grew by 5.8 % from 20012011. The increase in
the urban population is due to the increase in the migration from the villages of Gujarat in search of
the jobs in the booming construction and manufacturing sector. Also increasing job avenues and
educational institute in the city has attracted people from other parts of India. The purchasing power
of the immigrant labour class may not be high but the white collar job holders carry a good market
potential for the health drinks.
Population Age Mix:About 46.4% of the population falls under the age group of 20-50. Thus, there is
a huge market potential in the youth and middle-age segment. Their attitude and aspirations vary from
the elder generation and their consumption behaviour is guided by health concerns.

26

Successful Sales Promotion, A. Toop, R. Elliott, P. Choudhury, R. Elliott, A. Toop, 1991

27

Fullertron Securities: Investment, 17 Mar 2011, Accessed 21 Mar 2012,

(http://www.fullertonsecurities.co.in/equity/markets/rsch_reports/1_0_19032011Fullerton_GSKCHL_17_Mar_2011.pdf)
28

Fruit / Vegetable Juice in India, Jan 2011, Accessed 19 Mar 2012, (http://www.euromonitor.com/fruit-vegetable-juice-

in-india/report)

Literacy level of the population: The literacy level of the population in the city is also high. A higher
literacy level has good implications for decision making in favour of consumption of a healthy diet.
As people become literate, they become more aware of their health issues and take preventive
measures.

Economic Environment
Income Distribution: Households lying in the upper and upper middle class category are more
inclined to consuming health related products. There are approximately 17.6 lakh people who have
the capacity to spend above urban average of INR 74 on processed foods and beverages.The demand
for health drinks is likely to increase as a result of growth in income and the number of households
with increasing purchasing power. This provides additional opportunities for new health drinks that
will address the needs of the new consumers.

Sociocultural Environment
Ahmedabad has a diversified culture where people having different interests reside. However, the
tastes are largely homogenous. The Gujarati society shapes the norms, beliefs, and values of the
people and this unconsciously influences the consumption pattern of food and beverages. The popular
beverages of the Gujarati society remain tea and buttermilk. Majority of Gujarati population attaches
health benefits to the latter.It would, hence, be difficult to break into families having a strong
preference for the same.

Political-Legal Environment
Increase in business legislation: The Indian Food Safety and Standards Bill, 2005 has been signed
into law, promising a significant impact on the Indian dietary supplement industry, and opening up a
potential market of one billion people for dietary supplement companies throughout the world.29
Growth of Special Interest Groups: An important force driving the consumption of health drinks is the
consumerist movement. To protect the consumers, the Consumer Protection Act,1986 recognizes a
few rights of the consumers, such as right to safety, information, and choice.
Hence, the external environment does not seem to be posing much of a threat to VITRI+.

CUSTOMER PROFILE
The behaviour of our buyers could be categorized as complex buying behaviour. Since it is a health
good, consumers would have a high risk perception regarding the dosage and the frequency of intake
of the drink in a day. The consumer will conduct a thorough pre-purchase search about the
composition of the product. Hence, a busy professional would have little time for physical fitness
because of his long working hours and would look for a product with less calories and sufficient
minerals and vitamins to take care of the nutrient deficiency. Price would be of little importance to
him because health is the apex in his priority list.

29

Indian Food Bill with supplements category becomes law, Nutra Ingredients, 16 Oct 2006, Accessed 18 Mar 2012,

(http://www.nutraingredients.com/Regulation/Indian-Food-Bill-with-supplements-category-becomes-law)

As mentioned earlier, the target customers catered by the product would be the relatively well-off
young and the middle-aged people falling in the age-group of 2050 years. The primary condition for
the target segemnt is that they should have an ability and a willingness to spend a decent amount of
money on products catering to their health. A few important characteristics of the customers have
been illustrated in the figure 30:
Figure 3: Types of Customer Profiles

OBJECTIVES
The objectives of the plan would be to:

Increase product awareness in the target segment using relevant communication mix
Build a (premium) brand image by positioning the brand as a one-stop solution to their daily
micro-nutrient need in the minds of the target customers
Make the product visible and easily available to the target customers through appropriate
distribution channels

Through these measures, we expect to break-even in the first year of operation itself and earn a return
more than or atleast equal to the industry average. In every subsequent year (for five years), we plan
on increasing the percentage of target market captured by 10% of the existing market. Further, the
objective is to obtain an operating profit margin of close to 10% by the end of the 5 year period.
30

The pictures in the figure have been sourced from ClipartOf website

POSITIONING
The image of the product would be designed to occupy a distinct place in the minds of our target
customers. The product will have the category membership of functional beverages and would be
positioned as a one stop solution for all micro-nutrient needs for people having a hectic work
schedule and who often tend miss out on a balanced diet.
Since a lot of similar products are available in the market, the objective of the communication strategy
would be to frame a distinct image of our product in the minds of the consumers. Playing up the
points of difference would be the major highlight of the strategy. The points of parity will make the
consumers view the product as a legitimate and a credible offering within the functional beverage
group, and the points of difference would demonstrate a clear superiority of our product for the target
segment. Hence the positioning strategy used is associating the drink with an attribute of quick
solution and health benefit of meeting the micro-nutrient deficiency.

BRANDING
Branding has been done keeping in mind the benefits the product provides to its consumers. The
following are the brand elements:
Name: VITRI+ is a combination of vitality and nutrition, which means, it Figure 4: VITRI+ Logo
provides those vital micro-nutrients to the consumers that are essential for a
balanced diet. + is an indication of the extra boost which the product is going to
impart in the lives of the consumers. The name is short and easy to recognize and
remember.
Logo: The two semi-circles at the top and the bottom of the text symbolise
completeness and emphasise that VITRI+ is a complete source of all micronutrient needs.
Colour: The neon-blue colour portrays that the consumer would remain charged up and would not
feel fatigued due to lack of proper nutrition and the green-coloured + sign symbolises good health.
The vibrant colour scheme will help the customers retain and recall the product easily. Also, the black
base with a subtle blue-white-green colour-scheme lends a premium image to the product.
Tagline: The Daily Dose of Good Health connects with the benefits of the product and would
enable the customer to think about the micro-nutrient deficiency that would be sufficed by the
product, resulting in good health. The word daily is to emphasise on the regularity of consumption
which the drink calls for.

BRAND IDENTITY
VITRI+ would have a strong physique, represented by a tough looking tetra pack, thus making the
product an embodiment of fitness and strength. The product emphasises on the importance of a
balanced diet in the consumers fast-paced routine, thus reinforcing the age-old culture of
wholesomeness in his / her life. As the consumers of the product would be a relatively wealthy section
of the society who place high premium on their health, they would reflect a responsible and a
perfection-seeking attitude.
9

VITRI+ would have an image of being a one-stop solution to all micronutrient needs of the day. The
product would give the health-conscious consumers the liberty to consume their choicest food without
worrying about their nutritional balance. Thus, it would symbolize the personality of a partner who
ensures complete health of the person. Even though the product provides functional benefits, the
relationship with the product would be predominantly emotional.

PACKAGING
Initially, the product will be available in a 200 ml pack for on-the-go consumption in Tetra Prisma
Aseptic Package 31,32. The packaging material has been designed in a way that retains the colour,
texture, taste, and nutritional value of the liquid for 12 months without the need for refrigeration or
preservatives. On a need-value matrix 33 , the pack is perceived to have an advanced image,
functionality, and a higher value, thus adding a premium image to VITRI+.
Tetra Prisma Aseptic Package with straw hole has an 8-sided shape with a metallised printing
option. This gives us more space for elaborating upon the brand story 34, which is essential given the
high consumer involvement in our product category. The package also provides great grip and
symbolises robustness, which makes it perfect for on-the-go consumption. This, combined with high
quality metallic printing options, is expected to tempt the senses of the target segment and infuse a
superior image to our brand.
Also, depending upon the market response, the product can be introduced in a 1,500 ml pack in the
near future. Since the 1,500 ml product would be heavy, Tetra Gemina Aseptic Package 35,36 with
stream cap option is proposed as it makes the pack convenient to handle. This packaging also
provides a longer shelf life 37 to the product. Additionally, it also lends a cool image and a modern eye
catching look to the product. The pre-launch test conducted for this packaging 38 yielded that the
consumer perceives it as modern, easy to open and close, easy to pour from and good to hold.

PRICING
In a market research conducted for the product category, it was observed that the health conscious
customers are willing to pay premium price for better product and quality 39 . Hence, the pricing
objective of our firm would be product-quality leadership. Thus, VITRI+ would be priced at a
premium to represent high perceived quality, taste, and status.

31

Our Package Portfolio, Tetra Pak

32

Refer to Annexure VII for the pack design

33

Refer to Annexure VIII

34

It helps to convey our vision and promise to the customers, offers possibilities of identification and makes a

considerable contribution to the formation of brand preference


35

Our Package Portfolio, Tetra Pak

36

Refer to Annexure III for the pack design

37

After breaking the protective seal

38

By Tetra Pak

39

Coca Cola in India: A study on product portfolio and distribution adaptation, IJRFM volume 2, Issue 2, Feb 2012

10

As per our estimations, there is sufficient number of buyers in the market (considering the first year of
operations) with a reasonable demand for VITRI+. This demand would be less price-sensitive as the
product is distinct and there are no close substitutes currently available in the market with such a
multi-nutrient base. The other substitutes, such as Revital, are low priced and have a perceived drug
status which leads to a lower demand in our target segment. A premium price which is within
consumers reach would help us to position the product to have more prestige and exclusiveness.
The closest competition comes from the fruit juice category. These products are priced according to
the exclusivity of the flavour, with premium price of INR 22 40 per 200 ml pack being charged for
unconventional flavours such as apple, orange, cucumber, cranberry, and pomegranate and lower
price of INR 18 for conventional flavours like mixed fruit. Additionally, the sugar-free versions of the
products are also priced higher at INR 22. The cost of manufacturing for both conventional and
unconventional flavours is around 60-70% 41 of the retail price. This cost does not include margins of
channel partners which vary with the type of distribution channel employed.
The cost of our product including sales, distribution, and promotional expenses comes out to be INR
22.9 42,43 per 200 ml. This cost also includes the retailers margin. Taking this cost and the perceived
value of our product as the base, the price would be INR 25 for a 200 ml pack which is a 10% markup on the cost of sales. The 1,500 ml pack, which would be launched in future, would be with a retail
price of about INR 160.

DISTRIBUTION
VITRI+ caters to a premium market, thus, its availability would be limited to places which are
accessed primarily by the target segment. The main points of sale for the product would be organized
retail, departmental stores located near posh colonies, canteens of BPOs and other corporate offices,
and gyms and fitness centres. Depending upon the nature of the selling point it would be marketed
through either a one level marketing channel (organised retail, characterised by centralised buying) or
a two level marketing channel (in case of departmental stores, office canteens, gyms, fitness centres,
etc.)
Figure 5: A Two Level Distribution Channel for Office Canteens and Gyms

40

Data collected from Primary Survey of various juice brands available in retail market

41

Based on analysis of Daburs Annual Report, 2010-11

42

Refer to the section on Financial Analysis

43

Inclusive of fixed and variable cost

11

Figure 7: A One Level Distribution Channel


for Super Stores

Figure 6: A Two Level Distribution Channel for


Departmental Stores

Organised Retail
To get our potential buyers buy the product, it would be marketed through under one roof shops
which include departmental stores and super markets like Big Bazar, D-Mart, and Vishal Mega Mart.
Apart from these three major retail outlets we would also place our product in few other famous
stores 44. Presently there are about 230 organised retail stores in Ahmedabad, of which about 20 stores
are super stores and the rest 210 are departmental stores45. We plan to cover all super stores and
about 10% of the departmental stores in the first year. The reach would be gradually increased in the
subsequent years.

Office Canteens
Most private corporate offices and BPOs have in-house provision for fast food and cold drinks.
VITRI+ would be sold in such offices in tetra pack of 200 ml. As most people spent a significant part
of their day in offices, the idea is to make the product easily available by stocking VITRI+ in the
office place near their dining / snacking area.

Gyms
Health conscious people going to gyms and fitness centre largely plan their diet as per the guidance of
their instructor. Hence, to make our product available to this group of the target segment we would be
collaborating with upmarket gyms and fitness centres.

44

Stores such as Sanzari Departmental store in Astodia, Gujrat General Stores in Kalupur (Central Ahmedabad);

Narayan Departmental store in Sabarmati, Arihant Departmental Stores in Sahibaug ( North Ahmedabad);
Adarsh Co-op Departmental store Ltd in Maninagar (South Ahmedabad); AM PM Super market in Ghatlodia,
Jay Yogeshwar General Store in Mem Nagar, A to Z family super market in Navrangpura and Vastrapur, Hind
Super market in Navrangpura (Western Ahmedabad)
Source: ClickIndia Ahmedabad Website, Accessed 26 Apr 2012, (yellowpages.sulekha.com/ahmedabad/retailshopping/department-stores/289.htm)
45

Refer to Annexure X

12

PROMOTION
VITRI+ would be primarily sold through large retail stores, office
Figure 8: Compact Display
canteens, and gyms. The distribution channel for large stores is shorter as Refrigerator (Merchandise)
they purchase directly from the manufacturers. So, higher margins can be
offered to them as the channel length is small. Majority of their customers
are in the higher income group. To attract these buyers we would buy eye
level shelf space in these retail outlets.
Our target customers have long office hours, so we would also be retailing
through office canteens. The distributors would supply the product to
these outlets. The canteen operators could be paid an extra monthly
amount if they would keep our compact display refrigerators.
Additionally, merchandise would also be placed at the point-of-purchase to attract more attention
towards the product.

COMMUNICATION MIX
Since the product is new and available only in the Ahmedabad market, the message strategy would
focus more on creating awareness about the product. It would involve use of social networking sites,
print media (newspapers and magazines), and product website.

Social Networking Sites


With social networking sites such as Facebook and Twitter gaining popularity amongst people across
age groups and interests, it is an ideal medium to generate a pre-launch buzz about the product. With a
limited advertising expenditure, social media, with its extensive reach, can assist in creating
awareness about the utility of the product. Thus, social media is the right platform to communicate the
solution to the peoples micro-nutritional problems.

Word-of-Mouth
Opinion leaders, such as gym instructors and dieticians would play a crucial role in inducing trials for
the product. They would be of tremendous importance during the pre-launch phase of the product.

Print Media
The print media would be used for communication at the launch of the product in the market. The
rationale behind its use is to catch the attention of the target population when they are cognitively
active. In addition to making people appreciate the benefits of VITRI+ and making them realise its
importance in their hectic lives, this medium would also help us in announcing our presence in the
market place. An advert at the time of launch is displayed in Annexure XI.

13

Newspapers
The newspapers chosen are popular English dailies (city-run editions), The Times of India 46 and The
Economic Times 47, having the highest circulation in the upmarket areas of Ahmedabad. The Times of
India would give access to the upper middle class and the young working population and The
Economic Times would give a premium image to the product amongst the officers, executives,
businessmen, self-employed, and professionals.
As per the thumb rule, we would like to ensure that the potential consumer gets exposure to our
product atleast three times. Hence, the idea is to float a full page advertisement on the right side 48 of
the newspaper at the time of launch, followed by two half page advertisements in due course of time.

Magazines
Communication would also be routed through popular monthly Lifestyle magazines, such as
Cosmopolitan and Readers Digest, having a good reach in the upmarket areas of Ahmedabad. This
would help create awareness about the product amongst those particularly interested in balancing their
health. The idea is to float full page advertisements for three months to increase the product exposure
for the target population.

Product Website
With the availability of affordable web hosting services, launching a product website is an excellent
medium to satisfy the curiosity of the target customers. Since the buyer behaviour is presumed to be
that of high involvement, the website would seek to serve as a platform to quench their need for every
minute piece of information and detail about the product. The website would be an interactive
platform for the customers where they could voice their satisfaction / dissatisfaction about the product
and would be easy to browse through.

FINANCIAL ANALYSIS
As stated earlier, the communication mix would involve advertising, interactive marketing (product
web site), and sales promotion. The marketing expenditure incurred would be as under:

46

Times of India Maintains its All-India Dominance, The Times of India, 23 Dec 2011, Accessed 21 Apr 2012

(http://articles.timesofindia.indiatimes.com/2011-12-23/india/30550621_1_lakh-readers-average-issue-readership-toi)
47

The Economic Times, The second highest selling English language business broadsheet daily in the world, Publicitas,

Feb 2011
48

The right side of the newspaper gathers more eye-balls and thus also has a higher cost compared to the left side

14

Table 1: Initial Marketing Investment on Awareness Creation and Brand Building


Initial Marketing Investment
Particulars
Advertising
Newspapers 49
Full Page
Half Page
Magazines 50
Web Hosting 51
Merchandise 52
Total Investment

Quantity

(in INR Lakhs)


Amount

Rate

1
2
3

8.24
4.35
4.00

200

0.04

8.24
8.70
12.00
0.10
7.56
36.60

The market share aimed to be captured by the product in the first year is 10%. The share is assumed to
grow by 10% every subsequent year (with constant unit price). The manufacturing (variable) cost is
taken to be 65% 53 of the selling price and selling and distribution expenses have been assumed to be
20% of the revenue. The fixed costs comprise writing off the initial marketing expenditure
(considering a 5 year time frame), website maintenance cost 54, and annual promotion costs 55.
The expected income from the business over the next five years as under:

49

Refer to Annexure IX for newspaper rates

50

Modern Publicity Service Website, Updated 7 Feb 2012, Accessed 21 Apr 2012 (http://www.modpub.com/Display.htm)

51

Refer to Table 4

52

'Table Mini Fridge With Glass Door For Wines and Drinks', Alibaba, Accessed 22 Apr 2012,

(http://www.alibaba.com/product-gs/323057825/Table_Mini_Fridge_With_Glass_Door.html)
53

The figure has been quoted by analysingDaburs Real cost structure

54

Refer to Table 4

55

Refer to Table 5

15

Table 2: Projected Operating Income for First Five Years of Operation


Financial Analysis
(in INR Lakhs)
Particulars

Year 1
Amount

Sales
Units Sold
Price (in INR)
Revenue
Cost
Variable Cost
Selling and Distribution Expenses
Total Variable Cost
Contribution
Marketing Expenses Written Off
Website Maintenance
Annual Promotion Costs

Year 2
%

Amount

Year 3
%

Amount

Year 4
%

Amount

Year 5
%

Amount

4.99
25

5.49
25

6.04
25

6.64
25

7.31
25

124.80

137.28

151.01

166.11

182.72

81.12
24.96

65.0
20.0

89.23
27.46

65.0
20.0

98.16
30.20

65.0
20.0

107.97
33.22

65.0
20.0

118.77
36.54

106.08

116.69

128.36

141.19

155.31

18.72
7.32
0.10
1.60

5.9
0.1
1.3

20.59
7.32
0.10
1.88

5.3
0.1
1.4

22.65
7.32
0.10
2.22

24.92
7.32
0.10
2.62

27.41
7.32
0.10
3.08

7.8

11.29

8.2

13.01

Total Fixed Cost

9.01

Operating Income

9.71

9.30

4.8
0.1
1.5

9.64

4.4
0.1
1.6

10.03
8.6

14.88

16.91

Table 3: Break-Even and ROMI


Break-Even Point
2,40,372
64,70,698

Return on Marketing Investment 56

20.9%

As can be verified, the break-even can be achieved in the first year itself. The ROMI (Return on
Marketing Investment) is expected to be about 20.9%, which is more than the ROI of about 15%
generated by most fruit juice brands 57.
The annual costs pertaining to website maintenance and promotion are given as under:

56

Calculated using the IRR formula in Ms. Excel

57

Marketing Plan for Tropicana Pomlife, Business Marketing Analysis Program Students, George Brown College, 1 May

2006

16

65.0
20.0

4.0
0.1
1.7

10.49
9.0

The break-even and the return on marketing investment (ROMI) are calculated as under:

Units
Revenue (in INR)

9.3

Table 4: Annual Cost of Website Operation


Website Hosting Cost
Particulars

Months

(in INR)
Amount

Rate

Initial Investment
Website Building Cost

10,000

Annual Cost
Business Domain Fee
4GH Hosting
Maintenance

1
12
1

600
350
5,000

600
4,200
5,000

Total Annual Cost

9,800

Table 5: Sales Promotion Cost for First Five years of Operation


Annual Sales Promotion
(in INR)
Particulars
Promotional Material at PoP
Shelf Space 59,60
Super Stores
Departmental Stores
Additional Expenses
Total

58

Year 1
4,160
56,160
19,282
80,000
1,59,602

Year 2
4,160

Year 3
4,160

61,776
42,420
80,000
1,88,356

67,954
69,992
80,000
2,22,106

Year 4
4,160

Year 5
4,160

74,749
1,02,655
80,000
2,61,564

82,224
1,41,151
80,000
3,07,535

IMPLEMENTATION
Having outlined the tasks to be performed, it is essential to plan the implementation of the same.
The plan would be implemented in three phases. The firstpre-launch phase would start a couple of
months before the launch of the product and would encompass buzz creation on social networking
sites and conventional media. Word-of-mouth promotion would be routed through opinion leader such
as gym instructors and dieticians to make the target segment aware of their latent need for the product.
The objective of the second phase, the product launch, would be to induce as many target customers
to try the product by playing up the points of difference. It would be accompanied by aggressive print
media advertisement campaigns in newspapers and magazines. The promotional material would be
58

The promotional material at point of purchase (PoP) is available at INR 10 per piece

'Flex Banner Printing, Gandhinagar', ProMarket, Accessed 24 Apr 2012, (http://promarket.in/p1856-flex-bannerprinting.html)


59

The amount paid for shelf space has been computed using the formula: Price of Shelf Space = Retail Selling Price *

Percentage Margin *(Unit Sold in a Given Period / Units of Retail Space Used)
Source: 'Suppliers, Retailers, and Shelf Space', James P. Cairns, American Marketing Association, 3 Jul 1962, Accessed 22
Apr 2012, (http://www.jstor.org/stable/1248298?seq=2)
60

Refer to Annexure II for break-up of retail stores into super stores and departmental stores

17

displayed around the stores and compact refrigerators (displaying our logo prominently) would be
distributed in office canteens and gyms for a building a better brand appeal. This is expected to
continue for about first two years.
The third phase,post launch, would be aimed reinforcing the choiceof the product by floating the
success of the brand throughoccasional print advertisements.Word-of-mouth would be the major
source of information for the new buyers.

EVALUATION AND CONTROL


Having elaborated the plan, it does not guarantee success of the product. Feedback from various
stakeholders is necessary to reduce the gap between the expected and the perceived benefits of
VITRI+. Since the product type is relatively new to the market, the firm would have to be on its toes
to incorporate feedback in its annual operational plans. Also, the R&D department would have to be
flexible enough to integrate the relevant changes in a short span of time.
Control would be enforced through monitoring the revenue on a regular basis monthly, quarterly,
and annually. The trends in buying behaviour can be gauged by partnering with gyms and fitness
centres, which would not only help in understanding the type of customers consuming the product but
also their level of satisfaction. The views and recommendations of the retailers and the office canteen
operators would be a major source of knowing customer needs.
The level of satisfaction could also be measured by running online polls on the website and social
networking sites. The comments on such platforms could also be taken into account for better
understanding of the consumer needs.

18

ANNEXURES
ANNEXURE I
Table 6: Filtering of Population of Ahmedabad, Anand, and Baroda on the Basis of MPCE 61
Ahmedabad

Anand 62

Baroda 63

Population (2011 Census)

58,97,312

3,00,462

16,02,424

% Population above MPCE INR 74 on


processed foods and beverages
(Considering an average of 30%)

17,69,194

90,139

4,80,727

Considering that the population above the MPCE mark of INR 74 in Ahmedabad is much more than
that of Baroda. Further, even if one argues that Anand being a NRI city has a substantial population
in the higher purchasing power segment, we see that the per capita MPCE of Ahmedabad is far more
than the entire population of Anand, thus giving us an opportunity to serve a larger market.

ANNEXURE II
Table 7: Characteristics of Various Segments (Divided by Age)
Teenagers

Youth

Middle-Age

Elderly

Age

< 19 years

2030 years

3050 years

>50 years

Lifestyle

Easy,
Less / No stress,
Fast-food culture

Demanding,
Increasing stress,
Fast-food culture

Increasing
responsibilities,
High stress,
Middle-age
syndrome

Weakening body
systems,
Less / no stress

Nutrition
Imbalance
Less

Nutrition
Imbalance
Increasing

Lifestyle
Disorders
High

Age-Related
Problems
High

No

Yes

Yes

No

Result
Concern for Health
Feasibility (according to
product attributes)

61

Above urban average of INR 74

62

Estimated (2011)

63

Estimated (2011)

ANNEXURE III
Table 8: Distribution of Population (above MPCE mark of INR 74) in Ahmedabad
Age Group (Years) 64

% of Population

Absolute Population

019

36.5

6,45,756

2049
50+

46.4
17.1

8,20,906
3,02,532

ANNEXURE IV
Table 9: Estimated Population Consuming atleast One Health Supplement in Ahmedabad
%

Absolute Population

Market Segment filtered by geography, income, and age

8,20,906

% Population consuming atleast one dietary supplement regularly


Conservative Estimate

65

78%

6,40,307

-20%

5,12,245

ANNEXURE V
Table 10: Estimated Population Dissatisfied with Present Consumption of Beverages for Health Benefits
in Ahmedabad
%

AbsPopulation

Previous Estimate

5,12,245

% People consuming fruit juices for health benefits

9.67%

% People dissatisfied with consumption of fruit juices for health purposes

66

42%

49,534
20,804

ANNEXURE VI
Table 11: Consumption (in units) of Our Health Drink in the First Year in Ahmedabad
Target Market

20,804

Market Share

10%

2,080

Consumption in days

240

4,99,200 (units)

64

Age Group Division as per 2011 census

65

80% of population consuming atleast one dietary supplement regularly

66

Consumer Behaviour Towards Ready-to-Eat Food Products, Department of Agribusiness Management,

College of Agriculture, Dharwad, Aug 2008

vi

ANNEXURE VII
Figure 9: Pack Design,Tetra Prisma Aseptic Package

Figure 10: Pack Design,Tetra Gemina Aseptic Package

ANNEXURE VIII
Figure 11: A Need Functionality Matrix for Tetra Aseptic Packages

Source: 'Our Package portfolio, Tetra Pak

vii

ANNEXURE IX
Table 12: Newspaper Rates for the City Edition of Times of India + Economic Times for Ahmedabad
Newspaper Rate Chart
Particulars
Full Page Measurements 67
32.9*52.5
Total Page Area
1,727.25
68
Rate (TOI + ET: City-run Edition)
530.00

Unit
sq. cm
sq. cm
INR per sq. km.

ANNEXURE X
Table 13: Number and Types of Departmental Stores in Ahmedabad
Type 69

67

No.

Reliance Stores
Big Bazaars
Other Super Markets

7
4
10

Super Stores
Departmental Stores

21
206

Total Stores

227

'The Times of India (India)', Publicitas, 15 Jan 2009, Accessed 21 Apr 2012

(http://www.docstoc.com/docs/26152189/Title---The-Times-of-India-(India))
68

Modern Publicity Service Website, Updated 7 Feb 2012, Accessed 21 Apr 2012 (http://www.modpub.com/Display.htm,

http://adrates.timesofindia.com/PPMetro.html)
69

Sulekha.com

viii

ANNEXURE XI

ix