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  • Tzinga Energy Drink Term Paper Analysis

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    Ajit Kumar
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    Tzinga is an energy drink produced by Hector Beverages Private Limited, a Gurgaon-based company founded by alumni from Wharton and IIM. Their only product, Tzinga, contains caffeine and other natural ingredients but claims to have no side effects. It competes with other energy drinks and soft drinks at a price of Rs. 20 for 200ml. During its initial years, the company spent most of its budget on sampling and sponsoring college events to spread awareness through word of mouth. This low-cost advertising led to increased sales and popularity among students aged 12-35. However, gaps remain in reaching more target consumers due to a lack of advertising funds and promotional schemes outside of peak seasons

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    Hector

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    Tzinga is an energy drink produced by Hector Beverages Private Limited, a Gurgaon-based company founded by alumni from Wharton and IIM. Their only product, Tzinga, contains caffeine and other natural ingredients but claims to have no side effects. It competes with other energy drinks and soft drinks at a price of Rs. 20 for 200ml. During its initial years, the company spent most of its budget on sampling and sponsoring college events to spread awareness through word of mouth. This low-cost advertising led to increased sales and popularity among students aged 12-35. However, gaps remain in reaching more target consumers due to a lack of advertising funds and promotional schemes outside of peak seasons

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    28 views8 pages

    Tzinga Energy Drink Term Paper Analysis

    Uploaded by

    Ajit Kumar
    Tzinga is an energy drink produced by Hector Beverages Private Limited, a Gurgaon-based company founded by alumni from Wharton and IIM. Their only product, Tzinga, contains caffeine and other natural ingredients but claims to have no side effects. It competes with other energy drinks and soft drinks at a price of Rs. 20 for 200ml. During its initial years, the company spent most of its budget on sampling and sponsoring college events to spread awareness through word of mouth. This low-cost advertising led to increased sales and popularity among students aged 12-35. However, gaps remain in reaching more target consumers due to a lack of advertising funds and promotional schemes outside of peak seasons

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 8

    Term Paper on The Energy Drink TZINGA

    Manas Ajit Kumar- 2010SMF6836

    Company Background
    Hector Beverages Private Limited Gurgaon based company Bottling plant in Manesar Opened by 2 Wharton school alumni and 1 IIM C alumnus Only product Tzinga Before Tzinga the company did distribution of some other beverages in order to develop a network Started commercial operations in 2011 Initially started with lemon mint flavour Is Currently available in two more flavours Started with NCR region with gradually moving to other parts of the country

    Industry structure
    Beverages segment, energy drink segment Austria-based Red Bull is the world-wide market leader with an approximate market-share of 65% the market for energy drinks in India was estimated at Rs. 499.2 crore in the year 2008 and growing at the rate of 50% Brands in the Energy Drink market are Red Bull, Cloud 9, SJ XXX, Power Horse, Rock star, Burn, SoBe and Amway

    Product description/category
    Only product Tzinga drink that give the consumer the desired energy boost, yet is completely healthy and have no side effects associated with other drinks Tzinga contains Water, Sugar, Lemon Juice, Taurine, Caffeine, Vitamin C, Inositol, Ginseng Extract, and Guarana Extract Available in three flavors Price of Rs 20(for 200 ml pack) Lies in the category of energy drink(contains caffeine ) Target customer( 12-35) age group, who is seeking a drink that will give him energy boost but at the same time is also healthy and cheap Competitors
    At the price level all the soft drinks At the product level- all the energy drinks

    Budget
    During peak season most of the budget is spent in sampling Giving sponsorship to college fests Some amount is also on posters, danglers, other display items Sponsoring prizes for quizzes etc conducted on social networking sites Being in initial years budget is very high as compared to revenue

    Advertising campaigns and Rollout


    Sampling
    It spreads Word of mouth and creates awareness. It makes product visible and increases sales. It doesnt require huge amount of money. Consumers reaction can be known easily and accurately. Since it is free consumers take interest in it

    Counter display in shops Use of posters and danglers Participating in college fests Use of social media(facebook etc.) T-shirts and caps distributed to shopkeepers and distributors No advertisement in tv, newspaper, radio (dont have enough budget)

    outcome
    Good response from most parts of the country Specially becoming popular among students Able to get desired recognition in the consumer age bracket 12-35 Increase in loyalty of sellers and distributors Increased sales

    Gaps
    Unable to reach many target consumers due to lack of advertising funds Dont have any scheme for shopkeepers as such apart from margin on product(20%-25%) No promotion schemes during off season Core advertisement limited to stores

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