Immunité

Marketing Plan
Immunité – a flavoured immunity boosting
drink made with naturals ingredients.

Submitted By:
Group 3 | Section D | PGDM Finance | 2020-22
Saloni Sharma - 313/2020
Himani Garg - 314/2020
Vashima Seth - 315/2020
Rishabh Malhotra - 316/2020
Vidit Mittal - 317/2020
Arpit Lakhanpal - 318/2020
 CONTENTS
Introduction.......................................................................................................................3
What is Immunité?.......................................................................................................................3
Situation Analysis...............................................................................................................4
PESTLE Analysis............................................................................................................................4
Outcomes of PESTEL Analysis.......................................................................................................5
Porter’s Five Forces Analysis.........................................................................................................5
Outcomes of Porter’s Five Forces Analysis....................................................................................5
Product Life Cycle of Packaged Juice...................................................................................6
Assumptions.................................................................................................................................6
Conclusion....................................................................................................................................7
Marketing Strategy............................................................................................................8
Mission.........................................................................................................................................8
Financial Objective.......................................................................................................................8
Marketing Objective.....................................................................................................................8
Segmentation...............................................................................................................................8
Targeting......................................................................................................................................9
Positioning...................................................................................................................................9
Marketing Tactics.............................................................................................................10
Product.......................................................................................................................................10
Price...........................................................................................................................................10
Place...........................................................................................................................................11
Promotion..................................................................................................................................11
Financials.........................................................................................................................12
Costing.......................................................................................................................................12
Forecasting.................................................................................................................................13
Implementation & Control...............................................................................................14
Value chain.................................................................................................................................14
Implementation..........................................................................................................................14
Control.......................................................................................................................................14

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Introduction
What is Immunité?
Immunité is a flavoured immunity boosting drink made with completely natural ingredients like amla,
turmeric, ashwagandha, cumin, moringa with the base of coconut water. It has zero sugar and no
preservatives and contains less than 20 calories per packet. It comes in three enjoyable flavours – Orange,
Lemon & honey, and Watermelon & mint. With rising concerns about the Covid-19 pandemic, Immunité
will serve as your go-to health partner. The all-natural immunity boosting ingredients will boost the body’s
natural defence shield against all kinds of illnesses. It has also been observed that consuming such ayurvedic
herbs on a regular basis helps the body by reducing inflammation and increasing antioxidants. A lot of
herbal drinks available in the market require some sort preparation before they can be consumed. Immunité,
on the other hand, is a ready-to-drink product which comes in 200ML packaging and can be consumed on
the go. We are highly committed towards an environmentally sustainable business practise. The pouches are
made with a special kind of plastic material which ensures maximum shelf-life and only 10% carbon
footprint which is much lesser than other packaging options. Considering the current market demand for
these kinds of products, Immunité is expected to earn desired return in the market and continue to grow even
after the condition stabilizes.

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Situation Analysis
PESTLE Analysis

1. Political:

 The Political environment for immunity booster juices in India will see an upliftment in the near
future and therefore there may be stability in the government policies.
 There will be an upliftment because of the focus on the immunity booster drinks by the Ayush
Ministry. Prime Minister Narendra Modi urged citizens to follow immunity-boosting guidelines
issued by the Ayush Ministry to supplement the fight against COVID-19.
2. Economical:

 Due to corona virus, people have started consuming a lot of immunity boosting supplements,
providing them with a ready to drink product will be profitable at this point of time. People are going
to be conscious about their health even after the vaccine arrives, the magnitude might change, but not
that much that we see a drop.
 Also, for the long-run, people would want to switch to a healthier alternative of sugary drinks.

3. Social:

 Due to novel coronavirus outbreak there is a penetration of Indian markets by TV ads, consumers are
shifting from normal juices to immunity booster juices.
 In the population, health awareness is growing, making it mandatory to preserve fitness and
immunity. Hence, it will increase demand for immunity booster juices.
4. Technological:

 Various foreign players are introducing new technologies through robot-controlled machines to
manufacture immunity booster juices that reduce production costs in the long run.
5. Environmental:

 Soft drinks and other sugary beverage containers use more plastic than water because they need to
have thicker plastic due to their carbonation and/or bottling processes. Plastic packaging will affect
the demand of juices.
 The government is urging the firms in the markets to discard the use of plastic as Polyethylene
terephthalate (PET) is used for juice bottles, Chyawanprash bottles, etc. the use of eco-friendly
products should be promoted.
6. Legal:

 Under the FSS Act, 2006, the Food Safety and Standards Authority of India (FSSAI) was established
to set science-based standards for food products and to regulate their production, storage, distribution,
sale and import to ensure the availability of safe and wholesome foods for human consumption.
 Packaged juice manufacturers are required to obtain a license and get registered with the authority.
Thorough testing is done to ensure that the food product is safe for consumption.

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Outcomes of PESTEL Analysis
1. Opportunities:

 We can choose from large number of segments in the markets to target and specialise in it.
 Consumers are shifting towards immunity booster products which can be helpful to us when deciding
the contents of the juice.
 Increased health consciousness among consumers may be used to advertise and sell the products.

2. Threats:

 Difficult to withstand with huge market competitors such as Real (Dabur India), Tropicana (PepsiCo),
ITC and Amul. Other competitors like Auric pose a challenge as they directly cater to the immunity
boosting beverages market. Newer healthy variants from established brands like Amul and ITC’s B-
Natural would be hard to compete with.

Porter’s Five Forces Analysis

1. Bargaining power of buyers:

 Buyers are one of the most significant factors driving both the price and the company's profitability.
 As a smaller customer base appears to have higher bargaining power, any producer would prefer a
larger customer base.
3. Bargaining power of suppliers:

 Profitability largely depends on the suppliers as most of the raw materials required in the final
products are procured from them.
 Like any industry the aim of suppliers too is profit maximization and hence they will try to sell their
products at the highest prices that they can, so it is important to build an efficient supply chain with
many suppliers.
4. Threats of new entrants:

 Emerging market players develop new ideas and technologies that bring pressure on existing players,
thus creating competitive pressures and successful market barriers.
5. Threats of substitutes:

 The bigger the scale of the market, the greater the possibility of new replacements. Substitutes such as
immunity powders, immunity booster capsules and products containing herbal beverages influence
juice sales in various consumer segments.
 In addition to being product-oriented, the business must be service-oriented to fix alternatives in order
to raise customers' switching costs.
6. Rivalry among existing competitors:

 Market shares of various top players in packaged juice industry. Real (Dabur India)- 61.5%,
Tropicana- 28%, B-Natural- 7.2%, Paper Boat- 2.2%, Del Monte- 0.9%.

Outcomes of Porter’s Five Forces Analysis

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Market Leader: Real (Dabur India) and juices market is projected to grow at a CAGR of 15% over the next
years.

Product Life Cycle of Packaged Juice

Assumptions
 Dabur India Limited is the market leader in Packaged Juice segment and commands 61.5% of the
total market size for FY 2019-20. It is assumed that the subject market follows the same sales trends
as Dabur’s Fruit Juice business.
 Dabur’s FMCG business is divided into 8 Categories – foods, health supplements, digestives, OTC &
ethical, hair care, oral care, skin care, and home care. Dabur’s foods business, which primarily
includes its fruit juice brands Real and Réal Activ, contributes 15.9% to its total revenue. It is
assumed that this breakup is similar for the 15 years data under consideration.

(A) (B) = (A) * 15.9% (C) = (B) / 61.5%

Consolidated Revenue Revenue from Packaged Revenue from Packaged
Year
(Dabur) Juice (Dabur) Juice (Industry)
(In ₹ Crores) (In ₹ Crores) (In ₹ Crores)

2006 1757.00 279.36 454.25

2007 2080.00 330.72 537.76
2008 2396.00 380.96 619.45
2009 2834.00 450.61 732.69
2010 3417.00 543.30 883.42
2011 4105.00 652.70 1061.29
2012 5305.00 843.50 1371.54
2013 6169.00 980.87 1594.91
2014 7094.00 1127.95 1834.06
2015 7827.00 1244.49 2023.57
2016 7869.00 1251.17 2034.42
2017 7701.00 1224.46 1990.99
2018 7748.00 1231.93 2003.14
2019 8533.00 1356.75 2206.09
2020 8704.00 1383.94 2250.30
Product Life Cycle - Packaged Juice
2500.00

2000.00
Sales (In ₹ Crores)

1500.00

1000.00

500.00

0.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Years

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To construct the above Product Life Cycle, we have taken years on the x-axis and industry sales on the y-
axis. Industry sales have been calculated based on Dabur India’s net revenue from packaged juice business
under its Real brand.

Conclusion
The graph is sloping upwards meaning ‘Packaged Juice’ is still in its growth phase. Immunity boosting
drinks will have an almost identical PLC as it serves as an alternative to normal packaged juice. Moreover,
an increase in demand is anticipated as consumers are preferring healthier options in view of the ongoing
COVID-19 pandemic. Also, we expect a bit higher growth in case of immunity drinks, considering the
demand right now.

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Marketing Strategy
Mission
Being a new entrant into the market, our emphasis will be on providing good quality products to consumer
to build our customer base. Thus, our mission is to “Attract, acquire and retain the customers by
delivering unrivalled customer value”.

Financial Objective
 Our main objective being a new entrant would be capturing a big market share, we want to be one of
the top players in the market for this product.
 Maintaining lower costs whilst not compromising with quality and customer satisfaction.
 Considerable amount of money to be spent on Research and Development because this is a relatively
new product in the market and cater to customer needs based on feedback.

Marketing Objective
 Build brand awareness through different types of advertising.
 Create a digital presence, which is much needed during these times.

Segmentation
1. Demographics:

Age-wise Distribution of Indian Population

59.50%
60%
50% 35.30%
Percentage

40%
30%
20% 4.80%
10%
0%
0-14 15-64 65+
Age

Age wise distribution of people in India:

We consider anyone above the age of 5 to be a potential consumer. However, population with 65+ age
and kids have weaker immunities. The older population is expected to grow a considerable amount in
the near future, older age means weaker immunity, higher demand for immunity boosting products can
be anticipated for this segment.
2. Psychographic:
There is a fear amongst people after Covid-19, they have started consuming supplements, vitamin pills
etc. The demand for immunity boosting food products is increasing because of the increasing number of

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 health issues which are not only due the pandemic. The rising consciousness regarding health and
wellness among individuals has been one in all the numerous factors behind the expansion of the
immunity boosting food products market. Lack of proper and timely diet, stress, smoking, and other
unhealthy lifestyle-related choices weaken the body’s system, therefore, Immunité can be their go-to
drink. It can be said that most of the population would see value in the product.

3. Behavioural:
Benefits sought from the drink could be either people compensating their unhealthy life-styles or as a
preventive measure for protection against various diseases. Being a product with benefits like – no
added sugar, low calories and no preservatives, major attributes owing to the frequency could be any of
the reasons stated above or something like people switching for a healthier alternative to quench their
thirst.

Targeting
We will be using the flank attack strategy as a challenger because the immunity boosting juice segment is
still untapped to a great extent and holds great potential for business through targeted efforts. Our target
segments-

 People with unhealthy life-styles

 Segments with weaker immunities
 People looking for a healthier alternative to their sugar-filled drinks
 People consuming immunity supplements, vitamins as a preventive measure without the commitment
of buying an odd-smelling 60-pill bottle.
 It is also an emerging trend in sports and performance category

Positioning
Immunité positions itself as a low calorie, sugar-free, immunity boosting drink. It is a ready to drink
Immunity beverage with coconut water as base making it the perfect hydration partner. It is 100% natural
with no chemicals or preservatives. It is keto friendly, Vegan, and dairy free. Immunité works through three
stage cycle of detox, restore & nourish because of its anti-inflammatory & antioxidant rich formulation.
1. Major competitors and substitutes
Immunity drinks in form of a beverage is not a much-explored market, however there are multiple
substitutes- Dabur Chyawanprash and its other recently launched immunity supplements, ITC’s
immunity juices, Immunity-focused milk products by Mother Dairy & Amul and NIPER’s tea.
2. Distinct Attributes and gaps filled
No sugar, no preservatives, low calorie all-natural drink which provides immunity without
compromising with flavours. Immunité is a blend of various herbs providing anti-inflammatory
action. Amla and Vitamin C are known for their anti-oxidant properties, (while a pinch of) turmeric
provides antibacterial properties.
3. Positioning statement

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 We want to be the go-to immunity drink for the millennials who don’t have time, for kids finding it
hard to gulp down pills and weird-tasting home-made remedies and for the older segment trying to
boost their immunities. Prevention is always better than the cure.

Marketing Tactics
Product
The product has been designed to cater to the needs of today’s health conscious customer. With the advent
of the Covid-19, more emphasis is now placed upon health supplementary products by the people and
rightly so. With Immunité , the idea is to provide ready-to-drink product full of natural immunity booster
ingredients such as fruits rich in Vitamin C (orange, lemon), garlic which contains Allicin (known for its
immune-boosting properties), turmeric which contains Curcumin (immunity booster as well as antiviral
properties), and other ingredients rich in antioxidants and other vitamins and minerals. The icing on the cake
is that Immunité offers all the benefits at zero preservatives.

 Protection against disease – All natural immunity boosting drink which helps in strengthening the
defence system.
 Three different flavours to choose from in 200 ml pack- Orange to stack up on Vitamin-C, Lemon &
Honey for the sweetness of honey, tasty Watermelon & Mint for minty aftertaste for refreshing
breath.
 Multi-layered packaging, only 10% carbon footprint ensures sustainable development.
 The current immunity boosting products available in the market are not consumable straight-off-the-
shelf, Immunité is prepared to fill this gap in the market.
No added preservatives ensure that the consumer gets what is marketed.

Price
Considerations for selecting the price:
Monthly Total Cost 24,00,000
 Cost – The floor price for the product is ₹ 44. ( ⇒ =₹ 44 )
Unit Sales 55,000

 Customers’ Perception – The ceiling price is ₹ 80, beyond which the customers’ perceived cost will
exceed their perceived benefits.

 Competition – In the beverages segment, the key competitors are Tropicana, Real, B-natural, Paper
boat, Del Monte etc. They offer fruit juices in the price ranges of ₹20 to ₹30. Though, their offerings
are low priced, but they are only offering fruit juices and that too with added preservatives. The
substitutes for the product include various immunity boosting tablets, dairy products but these may
not be viable to different consumers (for ex-lactose intolerant can’t consume milk). Hence, Immunité
offers the convenience to the consumers.

 Determining Demand – The demand of such products is highly elastic, though the customer is health
conscious, one will not buy a product if the price goes beyond the ceiling price.

 Pricing Method – The pricing method to be adopted by the company is Perceived value pricing in
conjunction with Value pricing, this will help in gaining customers against the competition. The low
prices will help to retain customers in the short run and create loyalty among customers in the long

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 run. Penetrating Pricing will be followed to maximize market share in conjunction with product
quality leadership, thus, selling high quality goods at low price (challenger).

 Final Price – The different expenditures in cost will be considered while calculating the final price.
The final price for the product after including the wholesaler (8%) and other middlemen’s (16.67%)
margins will be ₹63. MRP with be kept at ₹70 and 10% discount will be offered to attract
customers.

Place
As the focus is on gaining customer loyalty, it is essential that the reach of the product is widened to as
much as possible.

 The inventories will be kept at four places through wholesalers in Delhi (North), Kolkata (East),
Ahmedabad (West), and Chennai (South).
 These inventories will further be distributed by wholesalers to different retailers and ultimately to the
final consumer through different departmental stores, chain stores, etc.
 The products will also be available on the company website and other online retail websites where
customers can directly order the products as per their convenience and to their homes.

Promotion
The focus is on using different resources available to increase the awareness among buyers regarding the
product’s benefits and furthermore to convert the interest of the potential consumer into desire which will
ensure action on the part of the consumer to buy the product.

 Creating Awareness - Being an entrant in the market, the focus will be on employing paid, non-
personal communication channels such as advertisement on TV, social media and other platforms
which will help in spreading the awareness regarding the product across a wider area.
 Building Interest - Once the potential customers are made aware about the product, the immediate
next step would be to engage their interests. This can be done through distribution of free samples in
certain special events in conjunction with personal selling. Various discounts will be provided to
consumers on buying in bulk.
 Word of mouth promotion will be opted as it helps in creating a chain through oral, written, or
electronic media with minimal costs.
 Aimed at Sentiments - Advertisements will be prepared in such a way that emotional loyalty is
established with the consumer.

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Financials
Costing
Particulars Amount (in ₹) Periodicity
Plant & Machinery
(Automatic) 35,00,000 One time
(For preparation and packaging)
Licenses and Certificates
2,50,000 One time
(FSSAI)
Other office equipment
1,00,000 One time
(Printer, Computer, Telephone etc.)

Storage cost
30,000 One time
(Three 1000L Containers for each flavour)

Other cost
5,000 One time
(Racks and cartons)
Factory rent 1,25,000
Per month
(2690 sq. feet in Bawana industrial area)
Outer packaging cost
(Spout sachet outer packaging) 3,89,000 Per month
(₹5 per pc.)

Raw materials
(Ingredients, Fruits etc.) 13,50,000 Per month
(₹17.5 per bottle)
Electricity & water bills 1,50,000 Per month
Salary to employees 1,50,000 Per month
Transportation Cost
75,000 Per month
(₹30 * 2500km)
Selling & Distribution expenses 75,000 Per month
Misc. Expenses 75,000 Per month

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 Monthly Expense Breakup
3% 3% 5%
3%
6% 16%
6%

57%

Factory Rent Packaging Raw Material Electricity & Water

Salary Transportation Selling & Dist. Miscellaneous

Forecasting
We have adopted a conservative approach in determining the sales of the company because the product is
quite niche. Although, the customers are now becoming more accepting of such products. There is already a
shift in consumer preference from soft beverage drinks to healthier drinks and we think this change is here to
stay.
To arrive at the sales forecast, we took the population of Indian (1400 million) and then we found out around
67% of the people lie between the age group of 15-64 years, this is the population that is most likely to
consume our drink.
So out of this 933.33 million people (1400*67%) we assume that around 5.36% people are interested in
buying the drink and consume such products. We have a market of 50 million people.

1. Production:

Machine capacity 6 bottles per minute

Operating hours 9 hours per day
Monthly production capacity
77,760 bottles
(24 working days)
Yearly production capacity 9,33,120 bottles

2. Sales:

Particulars Year 1 Year 2 Year 3 Year 4

Monthly sales (Bottles) 55,000 58,500 62,500 67,000
Yearly sales (Bottles) 6,60,000 7,02,000 7,50,000 8,04,000
Price per bottle (₹) ₹ 50 ₹ 50 ₹ 52 ₹ 52
Monthly sales (₹) ₹ 27,50,000 ₹ 29,25,000 ₹ 32,50,000 ₹ 34,84,000
Yearly sales (₹) ₹ 3,30,00,000 ₹ 3,51,00,000 ₹ 3,90,00,000 ₹ 4,18,08,000

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Sales Breakup

Particulars Year 1 Year 2 Year 3 Year 4

Yearly sales
₹ 3,30,00,000 ₹ 3,51,00,000 ₹ 3,90,00,000 ₹ 4,18,08,000
(₹)
Online ₹ 99,00,000 ₹ 1,05,00,000 ₹ 1,36,50,000 ₹ 1,46,30,000

Distributor ₹ 2,31,00,000 ₹ 2,46,00,000 ₹ 2,53,50,000 ₹ 2,71,78,000

3. Profits
The approximated monthly cost comes to around ₹ 24,00,000. At a price of ₹ 50 per bottle, the monthly
sales comes to around ₹ 27,50,000. The profit in the first month will be around ₹ 3,50,000.

Implementation & Control

Value chain
 Inbound logistics: We will employ the experts to monitor the quality of raw materials to prevent
variation/ deviation.
 Operations: We will use standardised operations for mixing the ingredients and for the packaging
material to maintain standardisation of products.
 Outbound logistics: Through timely delivery of orders and making effective utilisation of
transportation vehicles, we can reduce the cost, we can control the cost of transportation. We will also
make effective utilisation of space in our warehouses to reduce storage cost.
 Marketing and sales: Regular customers will receive loyalty points which can be used to obtain
discounts of future purchases
 After sales services: Customers will be requested for feedback after each sale to gauge their
satisfaction level and improve or expand our drinks range based on their recommendations.

Implementation
We have set the following priorities for us to execute our plans:
1. Procurement of space for inventory
2. Website development
3. Advertising Campaign
4. Digital marketing

Contingency plans:

 If focussing on increasing immunity does not work for our products, we can reposition our product as
purely natural, no sugar, flavoured beverage.
 We can also place our product for diet conscious segment
 We can lessen our production if we do not meet the expected targets.

Worst case scenario:

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  We might lose out to competition, then we would be forced to liquidate our assets.
 We never achieve our expected market share.
 Customers don’t adapt to the taste of the company’s products.

Control
We will use the following measures to control the performance of our product:

 Revenue: the actual sales will be compared with the projected sales, and then we will analyse the
causes for deviation, if any.
 Monitoring expenses to generate profit margins and calculate the break-even point of sales.
 Customer sentiments: Conducting the market surveys to know about the customer sentiments towards
our drink.
 The effectiveness of sales staff, advertising, sales, promotion, distribution will also be considered.

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