Product and Brand

Management
Project Submitted by Group 11

Faculty: Prof. Elkana Ezekiel Group Members:

Anshuman Tewary (180103040)

Bhavya Arora (180103062)

Cedric Cyril (180103066)

Chinmay Bajaj (180103068)

Kashish Kathuria (180103102)

Table of Contents
1.1 Category Analysis:…………………………. ............................................................. 4
2.1 Competition Analysis:…………………… .............................................................. 5
3.1 Consumer Analysis:………………. ...................................................................... 6
4.1 Product Strategy:……………….. ........................................................................ 7
5.1 Brand Positioning:………………… ...................................................................... 9
6.1 Business and Brand Objectives: .................................................................. 10
7.1 Marketing Programs and Communication Strategy: ................................... 12
8.1 Bibliography:…………………………. ................................................................... 14

MADE BY GROUP 11 2
List of Tables and figures

Table 1: Company Shares of Carbonates ................ Error! Bookmark not defined.

Table 2: Financials………………………………………………………………………………………….. 11

Fig 1: Percentage of Flavor preference .................. Error! Bookmark not defined.

Fig 2: Percentage of flavor Dislike…………………………………………………………………….. 6

Fig 3: Percentage of Preference over other brands Error! Bookmark not defined.
Fig 4: Previous launched of Bisleri Pop ................... Error! Bookmark not defined.
Fig 5: Relaunched of Bisleri Pop Error! Bookmark not
defined.…………………………………………………………………….. 8
Fig 6: Brand Resonance Model of Pop.................... Error! Bookmark not defined.

MADE BY GROUP 11 3
1.1 Category Analysis:
The beverage market in India is bifurcated mainly into alcoholic and non - alcoholic beverage.
The further segmentation of non - alcoholic beverage in India comes out to be of carbonated
and non - carbonated beverage. The carbonated drinks are segmented into cola flavored drinks,
lime- lemon flavored drinks, orange flavored drinks and many more. The added CO2 gas
provides the sparkling taste of these beverages and also prevents spoilage. While the category
is still emerging in the rapidly developing markets of India, it has already surpassed its apex in
the markets of the west.

The growth of carbonates was majorly affected by the introduction of GST in 2017, with
carbonated drinks attracting a tax rate of 40% (28% GST + 12% cess). India witnessed a
slowdown due to inventory management issues caused by the GST introduction.

Changing consumer preferences, rising health awareness and tax benefits from the
government have led to the introduction of carbonates with juice content. Moving forward,
carbonates with the juice content are expected to partially offset the slow growth in
carbonates.

With the introduction of new flavors by carbonated soft drinks companies, consumers are
expected to indulge in consuming these soft drinks as they are cheaper than carbonates and
are deemed healthier. The current government is also in favor of introducing carbonates
with juice content, creating a healthy business environment for juice carbonates.

Since the consumers are gradually shifting away from carbonates to healthier beverage
options, so in order to attract consumers and boost sales of traditional carbonates,
companies are introducing new variants. PepsiCo introduced Nimbuz Masala Soda with 5%
lemon content, while Coca-Cola introduced green apple and kinnow flavored carbonates
with 10% (approx) juice content.

When Bisleri launched pop, carbonated drinks market registered sluggish 4% off-trade value
growth in 2017 to reach INR142.3 billion but is now expected to post an off-trade value
CAGR of 1% at a constant 2017 prices over the forecast period, to reach INR145.8 billion in
2022.

MADE BY GROUP 11 4
2.1 Competition Analysis:
Coca-Cola and Pepsi continue to dominate this category. According to Euromonitor, between
2013 and 2016, Coca-Cola India's carbonated market share has shrunk from 59.8% in 2013 to
56.4% in 2016 while PepsiCo India’s carbonated market share has gone down from 33.6% in
2013 to 33.4%. Their combined share was down by 3.6 percentage points in a market that is
growing at a healthy rate of close to 8 percentages per annum.

Further, Coca-Cola India’s carbonated market share shrunk again from 56.4% in 2016 to 56.2%
in 2018 while PepsiCo India’s carbonated market share rose from 33.4% to 34.0% in 2018.

Coca-Cola India and PepsiCo India witnessed slow growth due to changing beverage
preferences among consumers and the availability of cheaper options from regional
companies. Despite growth in the number of regional players, Coca-Cola and PepsiCo
continued to hold the vast bulk of Off-trade RTD volume in 2017. The competitive landscape
continues to be a duopoly.

Nonetheless, Soda Dispensers in tier-I and tier-II cities are also Bisleri’s Pop competitors as
they cater to the younger population in schools and colleges.

Company % Share

Coca Cola India Pvt Ltd 56.2

PepsiCo India Holdings Pvt Ltd 34

Others 9.8

Table 1: Company Shares of Carbonates

MADE BY GROUP 11 5
3.1 Consumer Analysis:
As per the secondary research conducted by us that had 142 responses, only a few tried POP as
there was an acute shortage of the product it did not reach the target audience and the people
who tried it had mixed reviews. We also conducted in-depth interviews as a part of our primary
research and finally were able to draw the following conclusions.

• Most of them disliked the excessive fizziness in the drink

• Consumers were enthusiastic about trying the different flavors, especially Pina Colada
but were not able to adapt the flavor and related it to cough syrup

• The most liked flavors were Spyci and Fonzo as they were unique in taste

Fig 1: Percentage of Flavor preference Fig 2: Percentage of flavor Dislike

Fig 3: Percentage of Preference over other brands

MADE BY GROUP 11 6
4.1 Product Strategy:
Bisleri International Pvt. Ltd is an Indian beverages company best known for its
eponymous Bisleri brand of bottled mineral water. Bisleri was an Italian mineral water company
and was launched in Mumbai in the year 1965. The Parle Group purchased Bisleri in 1969.
Bisleri came up with four fizzilicious flavors - PinaColada, Spyci, Limonata, and Fonzo under the
brand name “Bisleri Pop” in early 2016 but withdrew them almost 2 years after the launch.
There were multiple reasons so as to why it was called back, the major ones being the acute
shortage of the product and thereby the product was restricted to Delhi, Mumbai, Kolkata, and
Chennai.

Also, the CEO of Bisleri International Pvt. Ltd Mr. Ramesh Chauhan said that the problem lies
within their distributors too as they always wanted to promote Bisleri’s mineral water instead
of the carbonated drinks. Nonetheless, when Bisleri entered the carbonated drinks market, the
market was on a decline.

So, after doing a lot of research and keeping in mind all the above reasons, we have planned to
relaunch the product.

Initially, Bisleri's Pop will be re-launched in 3 flavors i.e. Spyci, Pina Colada and Fonzo.

 Spicy- Cola market is huge in India and Bisleri came up with the unconventional "masala"
flavor which is the spiced version of Cola, appropriately made to suit Indian taste buds

 Pina Colada is essentially a mixture of vanilla, coconut and pineapple juice

 Fonzo was the favorite flavor of the consumers as it is a unique product as there are no fizzy
mango drinks in the market currently

These three flavors will be focused upon for the first three years and post that we will try to
introduce Limonata with enhanced features and will try to introduce new flavors as well.

Naming Convention –

Now, Bisleri is the name which people mostly associate strongly, with pure water.

A lot of times, we have heard people asking at small retailer shops "Bhaiya, ek Bisleri dena."
Thus, Bisleri has strong brand equity but it is difficult for people to think of Bisleri as something
other than water. Also, Bisleri has health, reliable associations, and Bisleri POP on the other side
is a carbonated drink with a high amount of sugar.
MADE BY GROUP 11 7
During our survey, we asked people who were unaware of Bisleri POP that what according to
them is this, most of them replied that this sounds like flavored water.

Thus, we have decided to use Bisleri's brand equity for the distribution only however we will
change the name of the drinks from Bisleri POP to Spyci POP, Fonzo POP, and Pina Colada POP.

When it was launched in 2016, it looked it this –

Fig 4: Previous launched of Bisleri Pop

Now, as per the above naming convention, it will be relaunched as –

Fig 5: Relaunched of Bisleri Pop

MADE BY GROUP 11 8
5.1 Brand Positioning:
Positioning Statement - " To all the Indian youth of Tier I and Tier II cities who need to quench
their thirst, Bisleri POP is the brand of new generation refreshing carbonated drink with
unconventional flavors and is both fizzy as well as healthy because it has the highest percentage
of fruit juices as compared to the competition. "

The four variants of Bisleri Pop namely Fonzo, Limonata, Pina Colada and Spyci was restricted to
Mumbai, Delhi, Chennai, and Kolkata, but now except Limonata, all the three variants will be
available both in Tier-I and Tier-II cities.

Fig 6: Brand Resonance Model of Pop

MADE BY GROUP 11 9
6.1 Business and Brand Objectives:
The Financials for the first three years are as follows –

The overall carbonated market (in terms of volume) is expected to have 3441.4 million liters.
Pop is expected to have a market share of 0.25% in FY2020 which leads to 860.35 million liters.
Since, we have three SKU's i.e. 200ml, 250ml and 300ml which add to 750 ml and we will be
equally dividing the volume to all the three SKU’s and all the three flavors respectively.
Therefore, in FY20 3.82 crore of each SKU will be made and we expect our market share to
increase by 20% in the subsequent FY’s.

The pricing strategy would be that in FY20 we will have the same selling price that we had in
2016 when we launched the product i.e. for 200 ml and 300 ml PET bottles, we will sell at 10 Rs
and 15 Rs respectively and for the 250ml Can we will sell at 20 Rs. Then in the next two years,
we will increase the price as stated in the below table.

The production cost will be 4 Rs/Litre, as per the industry standards. The Salary and Admin
related cost will be 14% (approx) of the sales revenue, while Inventory and Storage will be 17%
(approx) of the sales revenue. The Promotional cost will be 50 crores in the first year, followed
by 2.5 crore increment in the subsequent years. Since Bisleri has a very good distribution
network, the distribution cost will be minimal but the distributors and retailers margin account
to approx 20% of the no. of units sold.

The below table denotes the financials for FY20, FY21, and FY22.

FY-2020 FY-2021 FY-2022

Revenues
200 ml PET Bottles
Units (in Crore) 3.82 4.584 5.5008
Growth wrt no. of units NA 20% 20%
Price per unit (in Rs) 10 11 12
Sales (in Crore) 38.2 50.424 66.0096

300 ml PET Bottles

Units (in Crore) 3.82 4.584 5.5008
Growth wrt no. of units NA 20% 20%
Price per unit (in Rs) 15 16 18
Sales (in Crore) 57.3 73.344 99.0144

250 ml Cans

MADE BY GROUP 11 10
 Units (in Crore) 3.82 4.584 5.5008
Growth wrt no. of units NA 20% 20%
Price per unit (in Rs) 20 21 23
Sales (in Crore) 76.4 96.264 126.518

Total Sales Revenue (in Crore) 171.9 220.032 291.542

Expenses (in Crore)

Total Fixed Cost (in Crore) 103.289 120.71 145.378

Promotional cost 50 52.5 55
Salary and Admin cost 24.066 30.8045 40.8159
Inventory and Storage cost 29.223 37.4054 49.5622

Total Variable Cost (in Crore) 71.08 88.0464 111.156

Production cost 36.7 44.04 52.848
Distribution cost 34.38 44.0064 58.3085

Total Expenses (in Crore) 174.369 208.756 256.535

Gross Profit -2.469 11.2757 35.0078

Tax @30% 0 3.3827 10.5023

Profit after tax (in Crore) -2.469 7.89298 24.5054

Profit Margins -1% 4% 8%

Table 2: Financials
After all the calculations, we came to a conclusion that in the FY20 the Profit Margins would be
-1%, but in the next two years, it will have positive Profit Margins which would be 4% and 8% in
FY21 and FY22 respectively.

Further, in the years to come, we will analyze that which is the most liked flavor and which is
the most purchased SKU. We will then build a future strategy.

MADE BY GROUP 11 11
7.1 Marketing Programs and Communication Strategy:
Marketing Programs –

• Who: POP will be bought by the urban population of the age 12-35 years old

• What: Consumers buy a refreshing non-alcohol beverage. The drink can be consumed
directly or as the primary ingredient of the other mocktails/cocktails

• Where: A soft drink is an impulse consumption product and the consumer does not like to
spend time looking for it. Besides, most of India’s soft drink consumption is done outdoors.
Bisleri will use its large distribution network for POP. POP will be available at places like
railway stations, college canteens, grocery stores etc and will be available in pet bottles
and cans as an individual drink. But, in modern trade and online grocery stores like the big
basket, groafers, amazon pantry etc, it will be available in the pack of 4 and pack of 6

• How: POP will be priced lower as compared to the other carbonated drinks with the
premium look and feel

• When: POP can be used as a refreshing drink that people may carry while they are
traveling (thus the SKUs are of lesser quantities so that bottles and cans can be consumed
and thrown and need not be stored), it can be offered to the guests in the individual pet
bottles itself, or consumed along with the meals or in breaks between the meals

• Why: The POD of the product is the unique taste and unconventional/fruity soda flavors.
Almost all the fruit juices brand like Tropicana, Real use the fruit concentrates and so does
the POP

• Promotions: On social and digital media mostly, sampling at MT etc.

Communication Strategy and Media Planning –

“POP will be communicated as a colorful & quirky, refreshment drink which is all about happy-
go-lucky attitude.”

Mediums used: TVC, Social Media Marketing, Banners and Posters (Outside the shops), Digital
Marketing

Implementation: Online Communication will be an integral part of our communication strategy.

The campaign will use the new age ad technology and focus mostly on Digital and social media
marketing.

Brand ambassador: Alia Bhatt

POP will be launched 15 days prior to Holi

MADE BY GROUP 11 12
  The revival of Instagram, facebook and twitter page- general posters plus various 40
seconds mocktail recipes where POP will be the main ingredient.
 Use of interactive promotion by creating a fun-filled Instagram filter
 POP will partner with HalfBrick to develop an easy Instagram friendly game like
FruitNinja which will be used to unlock discount codes
 5 second catchy Youtube ads
 Other PR related activities
 Events, promotions and sampling activities in various malls
 Last time the Ads were not appealing to the youth which will be taken care of this time

Potential Problems: There are a lot of brands with a similar brand persona like Mirinda, Limca
etc. it will be a major challenge to stand apart and break the clutter. Also, it will be difficult to
find the combination of highly responsive and trained social media team which can respond to
the audience in a witty manner and is able to create viral content.

Potential Success: 10-20% conversions where people in first 2 months earn the discount codes
online and use them. That would require extremely high reach and engagement.

MADE BY GROUP 11 13
8.1 Bibliography:
www.portal.euromonitor.com

www.thehindubusinessline.com

www.economictimes.indiatimes.com

www.outlookbusiness.com

www.livemint.com

www.statista.com

MADE BY GROUP 11 14