Submission on: Business plan

(Soft drinks & shakes)

Submitted to: Arkiti Singhal Mam
Submitted by: Sneha Gupta
Course: Diploma with fashion apparel
Designing
Semester: 2nd
Institute: Vidya institute of fashion
Technology
Submission date: 25th Aprl 2018

Remarks:

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Introduction
(Age group, product income and major competitor)

Age group- 16-25

This age group is independent and can
expend money in these things. My survey result
shows that 75% people of this age group want to
expend money in my brand and 20% of old age (45-
55) is interested in my product.
Product income- 2500000 per year
Major competitor- Marvel street café and lounge
Vaishnavi dairy
Name of the brand:
Logo of the brand:
Market size: This market covers colas, lemon,
orange and other flavoured carbonated soft drinks. It
excludes carbonated fruit juices and waters. Market
size is based on retail (off trade) and non-retail (on
trade) sales. Market size for Carbonated Soft Drinks in
India is given in INR and litre with a minimum of five
years' historical data. Market Forecast is provided for
five years. Included with this snapshot is socio-
economic data for India. Population, Consumer Price
Index (CPI), Gross Domestic Product (GDP), Exchange
Rates.

Segmentation of this market

 Colas
 Lemon/Lemon & Lime
 Orange
Market size, growth rate and overall profitability are three economic
indicators that can be used to evaluate the soft drink industry. The market
size of this industry has been changing. Soft drink consumption has a
market share of 46.8% within the non-alcoholic drink industry, illustrated in
Table 1. Datamonitor (2005) also found that the total market value of soft
drinks reached $307.2 billion in 2004 with a market value forecast of
$367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2
million liters (see Table 2). Clearly, the soft drink industry is lucrative with a
potential for high profits, but there are several obstacles to overcome in
order to capture the market share. The growth rate has been recently
criticized due to the U.S. market saturation of soft drinks. Datamonitor
(2005) stated, “Looking ahead, despite solid growth in consumption, the
global soft drinks market is expected to slightly decelerate, reflecting
stagnation of market prices.” The change is attributed to the other growing
sectors of the non-alcoholic industry including tea and coffee (11.8%) and
bottled water (9.3%). Sports drinks and energy drinks are also expected to
increase in growth as competitors start adopting new product lines. 2
Profitability in the soft drink industry will remain rather solid, but market
saturation especially in the U.S. has caused analysts to suspect a slight
deceleration of growth in the industry (2005). Because of this, soft drink
leaders are establishing themselves in alternative markets such as the
snack, confections, bottled water, and sports drinks industries (Barbara
Murray, 2006c). In order for soft drink companies to continue to grow and
increase profits they will need to diversify their product offerings. The
geographic scope of the competitive rivalry explains some of the economic
features found in the soft drink industry. According to Barbara Murray
(2006c), “The sector is dominated by three major players…Coca-Cola is king
of the soft drink-empire and boasts a global market share of around 50%,
followed by PepsiCo at about 21%, and Cadbury Schweppes at 7%.” Aside
from these major players, smaller companies such as Cott Corporation and
National Beverage Company make up the remaining market share. All five
of these companies make a portion of their profits outside of the United
States. Table 3 shows that the US does not hold the highest percentage of
the global market share, therefore companies need to be able to compete
globally in order to be successful. Table 4 indicates that Coca-Cola has a
similar distribution of sales in Europe, North America, and Asia. On the
other hand, the majority of PepsiCo’s profits come from the United States
(see Table 5). Compared to PepsiCo, Cadbury Schweppes has a stronger
global presence with their global mix (see Table 7). Smaller companies are
also trying to establish a global presence. Cott Corporation is a good
example as indicated in Table 8. The saturation of the US markets has
increased the global expansion by soft drink leaders to increase their
profits. The ease of entry and exit does not cause competitive pressure on
the major soft drink companies. It would be very difficult for a new
company to enter this industry because they 3 would not be able to
compete with the established brand names, distribution channels, and high
capital investment. Likewise, leaving this industry would be difficult with
the significant loss of money from the fixed costs, binding contracts with
distribution channels, and advertisements used to create the strong brand
images. This industry is well established already, and it would be difficult
for any company to enter or exit successfully. Three leading companies
have prominent presence in the soft drink industry. The leaders include the
Coca-Cola Company, PepsiCo, and Cadbury Schweppes. According to the
CocaCola annual report (2004), it has the most soft drink sales with $22
billion. The Coca-Cola product line has several popular soft drinks including
Coca-Cola, Diet Coke, Fanta, Barq’s, and Sprite, selling over 400 drink
brands in about 200 nations (Murray 2006a). PepsiCo is the next top
competitor with soft drink sales grossing $18 billion for the two beverage
subsidiaries, PepsiCo Beverages North America and PepsiCo International
(PepsiCo Inc., 2004). PepsiCo’s soft drink product line includes Pepsi,
Mountain Dew, and Slice which make up more than onequarter of its sales.
Cadbury Schweppes had soft drink sales of $6 billion with a product line
consisting of soft drinks such as A&W Root Beer, Canada Dry, and Dr.
Pepper (Cadbury Schweppes, 2004).
Opportunity:
Make in India: As 2016 welcomes the soft drink makers
with some innovative launches, there is tremendous development in soft drink
market in India. Not only, Indian made brands, but global brands are also joining
the ‘Make in India’ wave by launching drinks that suits to the Indian palate.

With Narendra Modi’s announcement at ‘Start-up programme’ asking the

beverage giants to at least include 2% fruit drinks in the aerated drinks giving a
growth projections to farmers who are a major growth driver in the development of
food processing industry in India seems going smooth with soft drink makers
launching tweaked products.

Soft drink manufacturing company K K Beverages is

looking for franchisees, connect to know more!
K K Beverages - We are a soft drink manufacturing company based in
Pondicherry as well as in Odisha. We are in to this trade from last 14 years. Our
product has set an unachievable milestone in front of its competitors.
Why Franchise?
 A proven business format for success
 Highly trustable name of the brand
 Continuous ongoing support
 Standardized process

Franchise Facts:
 Investment: Rs. 10,000 - Rs. 50,000
 Franchise/Brand Fee: Rs. 50000

Franchise Benefits:
 Marketing assistance
 Advertisement support
 Brand name & logo to use
 Low investment business model
Opportunity is available, connect now to know more about franchise!
Thanks & Regards
K K Beverages Team
 Psychographic study : the overall drink market has been
considered. The overall drink market refers to any cold beverage, including:
sodas, juice, energy drinks, milk-based drinks, water, sports drinks, and so on –
but not alcohol products. While some of these product categories would be
considered indirect competitors, they can be all clustered into the same overall
market.

The purpose of this market segmentation example is to demonstrate that while

consumers are all buying some form of beverage, their needs and situations are
different across the market segments, which means that they are seeking
different product benefits.

In this market segmentation example for drinks, eight different market

segments have been identified. This example is using a mix of situational
influences and primarily a benefit segmentation approach. There are eight
market segments identified in this example, as follows:

Really thirsty

On the go

Need a boost

Variety seekers

Hezalth focus

Sporty

Hold the sugar

Just feel like it

REALLY THIRSTY

This group of consumers is seeking a fairly straightforward functional benefit

from their consumption of a beverage. They are in a situation where they
simply need to quench their thirst. In this case, they would be attracted to fairly
simple styles of beverages, such as water or juice.
 This segment is less likely to be attracted to milk-based drinks and drinks
containing caffeine. They would be attracted to packaging words such as
“refreshing” and “hydrating”.

ON THE GO

The on the go market segment is a busy group of consumers who tend to eat
and drink while they are traveling. This is a growing segment and is quite
common across a range of convenience foods markets.

Because of this approach to their lifestyle, these consumers often look to a

beverage as a meal replacement. Because they are typically quite time-poor
during the day, they do not always have time to consume a meal and a “filling”
beverage is a good alternative. Therefore, for this particular market segment,
convenience foods represent an indirect competitor to a beverage.

This market segment would be seeking a fairly substantial type of beverage,

such as a milk-based drink, a thicker juice mixture, or a larger serving of a more
traditional soft drink.

NEED A BOOST

This particular market segment, in this example, consists of those consumers

are feeling rundown or tired during the day, or consumers who need a kick start
to their day. Traditionally, coffee would be the prime beverage products
solution, but increasingly cold beverages are encroaching on this consumer
need.

These consumers would be highly attracted to energy drinks, some sports

drinks, vitamin water, and even some traditional soft drinks containing larger
amounts of caffeine.

VARIETY SEEKERS

Variety seekers are consumers that have limited product loyalty and tend to
consume a broader selection of beverages, primarily depending upon their
taste and situation at the time.
Variety seekers are fairly common market segment in most food markets. They
tend to be brand switchers by definition, but are often heavy users as well. The
goal is to try and increase share-of-stomach by offering a broader product
range with different flavors and varieties.

HEALTH FOCUS

The health focused market segment consists of consumers who tend to make
all their food and beverage choices based upon being healthy and eating well.

In the cold beverage market that would be primarily attracted to water,

vitamin water and juice. They tend to be quite brand loyal, relying upon brands
that they know and trust and have a reputation for providing health benefits.

Compared to other market segments, they are more highly involved in the
purchase decision, but can be attracted to a new brand on rational health
benefits – often communicated through packaging or in-store displays. They
are less responsive to sales promotions and special offers outside of their
normal brand choices.

SPORTY

In this example market segment, consumers are looking for products that are
helpful when they are undertaking sporting events, such as running or playing
some form of organized sport, or working out at the gym.

They differ from the “health focus” market segment example in that these
consumers do not necessarily look to eat healthy for every meal or drink.
Instead they seek functional benefits of beverages when they are involved in
strenuous or endurance activities.

They are attracted to simpler product solutions such as water for

regular training sessions or they are more likely to utilize sports
drinks that offer the benefit of fast water replacement or some form
of energy boost. The packaging of the drink is also a consideration,
both in terms of the shape and size of the bottle (for example, easy
to hold while running) and the lid dispenser (looking for a container
that offers a no spill solution).
 Although outside of their sports activities these consumers mimic
the consumer behavior of the other market segment (such as the
variety-seekers segment), when purchasing a suitable drink for their
sports activities they are likely to be highly brand loyal to products
offering clear functional benefits.
Market survey:
Action plan:
Marketing Mix 4P’s

The marketing mix definition is simple. It is about putting the right product or a
combination thereof in the place, at the right time, and at the right price. The
difficult part is doing this well, as you need to know every aspect of your business
plan.

As we noted before, the marketing mix is predominately associated with the 4P’s
of marketing, the 7P’s of service marketing, and the 4 Cs theories developed in
the 1990s.

#1 Marketing Mix – Product

A product is an item that is built or produced to satisfy the needs of a certain
group of people. The product can be intangible or tangible as it can be in the
form of services or goods.

You must ensure to have the right type of product that is in demand for your
market. So during the product development phase, the marketer must do an
extensive research on the life cycle of the product that they are creating.

#2 Marketing Mix – Price

The price of the product is basically the amount that a customer pays for to
enjoy it. Price is a very important component of the marketing mix definition.

It is also a very important component of a marketing plan as it determines your

firm’s profit and survival. Adjusting the price of the product has a big impact on
the entire marketing strategy as well as greatly affecting the sales and demand
of the product.

#3 Marketing Mix – Place

Placement or distribution is a very important part of the product mix definition.
You have to position and distribute the product in a place that is accessible to

potential buyers.
This comes with a deep understanding of your target market. Understand them
inside out and you will discover the most efficient positioning and distribution
channels that directly speak with your market.

#4 Marketing Mix – Promotion

Promotion is a very important component of marketing as it can boost brand
recognition and sales. Promotion is comprised of various elements like:

 Sales Organization
 Public Relations
 Advertising
 Sales Promotion
Advertising typically covers communication methods that are paid for like
television advertisements, radio commercials, print media, and internet
advertisements. In contemporary times, there seems to be a shift in focus offline
to the online world.

Public relations, on the other hand, are communications that are typically not
paid for. This includes press releases, exhibitions, sponsorship deals, seminars,
conferences, and events.
UPS (unique selling point):
Total project cost:
Conclusion: