Can an Ethnic Beverage

Brand challenge Coca-

Cola In India

Time Frame
2017 and Later

Consumer Behaviour
Presentation-

• Abhijeet Bhattacharya 01
• Avin Kumawat 10
• Mohd. Tanzeem Javed 34
• Mohd. Muntazir Alam36
• Tejavath Monika 77
• Kiran Hari 25
• Nikita Singh(18-20) 62

This Photo by Unknown Author is licensed under CC BY-ND

 The Case

1. Paper Boat of “Hector Beverages” is a fledging Indian brand, willing to hold its own in the
country against the global giants like “Coca-Cola” and “PepsiCo.”.
2. Neeraj Kakkad( Former Coca-Cola Executive) who set up Hector Beverages in 2010 after
rejecting Ideas in areas like education, child care and women’s empowerment, as he felt
that it had potential in India due to the popularity of functional beverage worldwide.
3. VT Bhardwaj- MD Sequoia Capital, considers Paper Boat to be a “path breaking” product
which has the “potential to transform the beverages landscape in India.”
4. Also in the first half of 2016 Coca-Cola and Pepsi were pushed out of the top five highest
sold beverages in modern trade outlets in India by fruit juices from Dabur and PepsiCo,
and the decades-old rose drink Rooh-Afza by Hamdard.
5. Kakkar and his co-founders thought of Indian beverages only after their first two product
launches — Frissia, a protein drink (in 2011) and Tzinga, an energy drink (in 2012) —
failed to create waves.
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 The Case
• Hector Beverages moved its headquarters from New Delhi to Bangalore in 2014. Paper Boat
has sailed a long way since then. From two flavours in 2013 — Aamras (sweet mango) and
Jalzeera (cumin and lemon) — Paper Boat currently has a portfolio of 13 flavours
• Hector Beverages has two manufacturing plants — one in Manesar near New Delhi and the
second in Mysore near Bangalore.
• Hector Beverages has raised $42 million from angels and venture funds like Sequoia
Capital, Catamaran Ventures and Foothills Ventures.
• Key pillars of Paper Boat’s success are its design, packaging and messaging. Infusing
tradition and authenticity with a contemporary feel has been central to Paper Boat’s
philosophy.
• The packaging, which is unique, functional and efficient, led in this space. The pricing is
premium and the advertising stance with conversations with consumers is unique as well.”
• Paper Boat is a premium beverage and priced more than double that of Pepsi and Coca-
Cola’s products. Pointing out that Paper Boat’s price is intimately linked to the product
quality
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• It can certainly grow to become a ₹1,000 crore brand. However, if it can break the price
barrier it has the real opportunity to break open the cola market.
About Paper Boat

• BRAND – PAPER BOAT, Founded 2009, First Introduced in 2013.

• HEADQUARTER- GURUGRAM, INDIA
• PRODUCT TYPE- DRINK
• SECTOR- FOOD PRODUCT
• TAGLINE- “DRINKS AND MEMORIES”
• USP-Real Fruit Extract, Traditional Flavours, Childhood Memories
• PARENT COMPANY- HECTOR BEVERAGES PVT. LTD.
• HEADQUATER- BENGALURU, INDIA
• MANUFACTURIN PLANT- MANESAR( Near New Delhi) & MYSORE ( Near Bengaluru)
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Industry Overview
• Global Soft Drink Industry- $310 Billion (2015-19)
• Expected Growth Rate- 5.8%
• Indian Beverage Industry- $230 Million(of 65 Billion food processing industry)
• Major Sectors in Indian Beverage- Tea and Coffee (Approx. $87 Million)
• Carbonated Drinks Market- Approx. 284 Million Crates/Year
• Coca Cola: 56%
• PepsiCo- 34%
• Soft Drinks- 46% of the total market out of which;
• Bottled Water- 24%
• Non Carbonated Drinks- 30% ( Inc. Juices(24%), Rest is Energy Drinks
etc.)
• Mineral Water Market- $50 Million (Approx. 65 Million Crates) approx. ₹160 Billion
• Increase in Aerated drinks- 3 to 14 servings/person.
• Current Growth Rate- 15% Expected to grow by 16-17%.

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PESTEL Analysis- Indian Market

• Beverages account for $230 million in the $65 billion food processing industry in
India. In terms of volume, total soft drink (carbonated beverages and juices)
market is estimated at 284 million crates a year ($1billion)
• The market is predominantly urban (75%) and 25% contribution comes
from rural areas
• Market Size of ethnic beverages as of 2016-17 is $250 Million.
• Market Size of unorganized sector is 1% of the unorganized sector.

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PESTEL Analysis- Indian Market- Analysis
The consumption of aerated beverages in India has increased from 44
bottles per capita, in 2016 and is expected to grow to 84 bottles
by 2021. The non-alcoholic beverage segment can broadly be classified
under three categories:
• Carbonated drinks
• Fruit drinks
• Functional drinks.

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 Segmentation

• The view to target urban India, particularly aged above 20 years

old.

• Geographical target was crafted with a view to reach out to

communities that had left their native homes to other parts of
the country in pursuit of work and domestic demands, and
everyone associates it with “The good old days”.

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 Targeting
• Paper boat is majorly targeting people, overwhelmed with Indian
beverages by bringing back nostalgic memories.

• People who prefer natural beverages over aerated ones, who

generally go for fruit based beverages or natural juices. With no
preservatives and high percentage of natural fruit content in its
products, paper boat caters to this group of people.

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 Positioning

• Paper boat has positioned itself as a brand of traditional Indian

juices and drinks.

• Variants have ‘Indianness’ and innocence, portrayed through

their marketing campaigns.

• People can relate to the drinks and hence give them a sense of
reliving their childhood.

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Marketing Mix(Paper Boat)

Product Price
• Paper Boat created a pleasant • Prices premium as no competitor in
experience with its unique terms of the flavors offered
combination of ‘Drinks and
Memories’
• Most ingredients are naturally
available spices, thus differentiating
itself as a niche
• Salty alternatives reaches out to
diabetic capital of the world
• Keeps taste closer to mom’s recipe

It clearly indicates that Paper Boat is amongst the highest priced beverage as compared11
to its close competitors in the 200 – 300 ml range and the second highest after Minute
Maid in terms of the price per ml.
Marketing Mix(Paper Boat)
Place
• Targeted retail outlets by offering 5%
more profit margin to the retailers as
compared to the competitors
• Collaborated with Indigo Airlines to
sell products on board
• Targeted school canteens.
Promotion
• Relatively subdued because of the
unexpected sales since its inception
• Advertises in newspapers, digital
marketing, social media, and most
importantly by positive word of
mouth communication
• Its efforts of posting images about
childhood memories on FB pages are
in sync with their tagline
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 S.W.O.T Analysis
Strengths •Attractive and unique packaging
•Competitive price points
•Available in variety of Indian traditional flavors
•Good distribution and availability at retail stores

Weakness •Less retail shelf space compared to leading players

•Weak brand backing of parent brand

Opportunities •Tie ups

•New range of winter drinks
•Gift packs

Threats •Direct competition

•Cheaper variants possible 13
 CONSUMER BEHAVIOUR
FACTORS EFFECTING CONSUMER BEHAVIOR

• SOCIAL
• Reference Group
• Role & Status
• CULTURAL
• Social Class- Middle and Upper Class as the prices are higher than
the competition.
• PERSONAL FACTORS
• Age
• Personality

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 CONSUMER BEHAVIOUR
• BUYING DECISION PROCESS
• Problem Recognition : Make available of the Indian
traditional drinks in the market.

• INFORMATION SEARCH
• Commercial –Television commercial’s, Print Media
Advertisement, and Social Media.

• PURCHASE DECISION: Uncertain

• POST PURCHASE DECISION: Satisfied

• PERSONALITY
• Freudian Theory : Super Ego ( Parent, Controlling &
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Conscience)
 CONSUMER BEHAVIOUR
• PERCEPTION
• Stimuli 1 – Healthy drink
• Stimuli 2- Large variety of (traditional) flavours suitable to
Indian taste and preferences.

• PRICING STRATEGY: Satisfaction based pricing based on

perceived value.

• PERCEIVED RISK:
• Functional and
• Physical Risk

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BEHAVIOURAL LEARNING THEORY

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 PAPER BOAT ANALYSIS
• Hector’s Paper Boat come in 13 variants some of which are  Aamras
(45% mango pulp), Kokum (20% kokum), Jaljeera (8% lime), Jamun
(10% Jamun), Aampanna, Imli and Golgappe.

• Major competitor for this can be Coca Cola’s Minute Maid having 6
variants such as Pulpy orange (11.8% Orange), Nimbu fresh (5.7%
of lime), Guava (15.5% guava), Apple(17% apple), Mango(11%
mango) and Mixed fruit {Mango Pulp (10.7%), Guava Pulp (2.9%),
Banana Puree (2.9%), Papaya Puree (0.3%)}

• Hector’s Paper Boat has comparative advantage over other brands as

Hector has given drinks traditional names which are catchy and attracting
the consumer and also fruit content of Paper Boat drinks are higher than
its competitor brands.
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 COMPETITOR ANALYSIS

• Considering entire beverage market including juices and water, Coke leads the
market with close to 56% market share, followed by Pepsi with approx 34%
market share. Rest 10% includes Parle Agro, Dabur etc
• When only carbonated soft drinks are considered, Coke again leads with 55%
share and Pepsi 45%
• Sprite replaced Pepsi as the #2 brand.
• Mountain Dew is the country’s fastest growing aerated drink but
declined to divulge market share
• Coca-Cola emerges as overall market leader without considering the bottled
water sale. It is then followed by PepsiCo
• Dabur Real is the market leader in juice segment which is followed by
Tropicana from PepsiCo

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 COMPETITOR ANALYSIS

• Considering entire beverage market including juices and water, Coke leads the
market with close to 56% market share, followed by Pepsi with approx 34%
market share. Rest 10% includes Parle Agro, Dabur etc
• When only carbonated soft drinks are considered, Coke again leads with 55%
share and Pepsi 45%
• Sprite replaced Pepsi as the #2 brand.
• Mountain Dew is the country’s fastest growing aerated drink but
declined to divulge market share
• Coca-Cola emerges as overall market leader without considering the bottled
water sale. It is then followed by PepsiCo
• Dabur Real is the market leader in juice segment which is followed by
Tropicana from PepsiCo

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 STRATEGIES AND RECOMMENDATION
• Penetration of Paper boat is very limited: 
• With limited visibility, it has a direct impact on the sales of the Paper boat. It must
make sure that it is present in all retail outlets where maximum footfall happens.
• Generally there are long queues at the billing counter in big retail outlets e.g. Big
Bazaar. It would also be wise to run discounts and offers for the first few weeks of
existence, in order to draw in more potential customers
• In bars and pubs, 30-40% people don’t take hard drinks. Instead look for drinks
which add to their taste. This is one of the area which is untapped by many
beverage players and there is a huge demand in these channels
• Owing to the price of the drink and affordability as compared to other drinks in
the same category, Paper boat needs to tie up with schools where majority of
the drinkers are children. They are going to be the potential.
• In order to increase the visibility of Paper boat, company should give
incentives to shop owners to keep the stock and keep it at a position where
display of the product is proper. Retail Schemes like certain number of bottles
free per case, display schemes, target schemes, installation of refrigeration 21
facilities
 STRATEGIES AND RECOMMENDATION
• One of the problems is that most of the consumption of the drink
happens during summers.
• All the variants i.e. Aamras, Aam panna, Jamun kala khatta, Kokum, Golgappe ka
pani and Imli are all summer coolers. Paper boat should try to introduce some
winter drinks also. This would not only keep up the sales during winters but also
keep the brand visible and connected throughout the year.
• The promotion strategy could consist of advertisements which
relate Paper boat with taste and healthy drink. 
• An emphasis on the healthier aspects over things like coffee must be stressed in
an early advertisement campaign. Associating Paper boat with a tagline will help
in the increasing the percentage of recall for the brand.
• In order to maintain exclusivity, Paper boat should also come in gift
packs where all the variants are packed together. 
• Most of the people nowadays prefer giving some gifts whenever they visit
friends. This will help in circulating all the flavors and urge the people to try out
all the flavors.
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