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Analysis
By Group B
Neeam.S, Ramya R, Rahul, Rahul.G, Rahul.O,
Krishnan, Jagannathan
Submitted By: Group B
•Price advantage in the crowded milk market. Was available at the lowest
price: Rs 65
• Various nutrients like Vitamin A,B1,B2,B12 as well as minerals, niacin and
iron were added.
• Increased Budget for Advertisements in 2000: from 8 lakhs in 1999 to 30
lakhs in 2000
• Aggressive marketing through regional newspapers and promotion through
sponsoring cultural festivals in 100 B class towns
• Attractive commission policy to retailers.
Weakness:
• Only 25000 retail outlets when compared to the larger companies which had
over 1 lakh
• Advertising only at the regional level. National Market is neglected
• Some ingredients could not be added to victor plus because of their
incompatibility and machinery constraints.
• Almost nil presence in A+ retail outlets and only 5% in class A retail outlets
• Retailers perceived Victor plus as a brand which lacked appeal and visibility
and may not move.
Opportunity:
• Pure Taste: North and West Indians use Victor Plus as a milk additive/taste
enhancer. An extension of Victor Plus as a pure taste enhancer can be
launched in these areas.
• Pure Health: Target segment can be old people and South Indians which
constitute a major share of the market for white beverages.
Increase the Price: Price of competing brands is much higher than the Victor Plus’
price. In order to be seen at par with its competing brand, it may increase its price
by 20% i.e., Rs. 84 instead of current Rs. 70. By increasing the price, VCIL could
improve the nutrients and the packaging. It may come up with a reusable container
or some promotional schemes to lure the kids.
MRP of VCIL 70
This shows that the company’s target should be to achieve 456 tonnes of sales of
Victor Plus. But let us take a different angle to this.
Total Overhead costs comes to be Rs. 6,89,16,000. This shows that company is
nearly able to cover its fixed and variable costs as a whole. Thus company is in
good position but it should try to increase its revenue to generate profit or return on
investments through the points we have mentioned earlier. The next year’s target
Table 1: Brand – Ingredient Utility Matrix (Combination of Table 2 and 10 from the
case)
The above table thus indicates that Victor plus doesnot have any ingredient that
contributes to immunity and Metabolism. This thus becomes the point of
differentiation. Rest of the utilities is the point of parity with the competitors.
Table 2: Brand –Nutrient Utility Matrix (Combination of Table 3 & 11 from the case)
Victor
Plus 1 1 1 1 1 1
Nutram
ul Data Not available
The above table indicates that victor plus is at point of parity with the competitors
at all the utilities possible. It also takes care of immunity via the nutrients added to
the brand. However, only Vit B2 contributes for metabolism.
From the above perception map we can see that Victor Plus is almost similar to
Maltova in price and taste. It ranks high on both parameters and has better taste
than Boost, Milo and Nutramul and lags behind only Bournvita. Victor Plus is also
priced better than most competitors like Milo, Boost and Nutramul.
Victor Plus is perceived to be very low on Nutrition content as well as brand name. It
is found to lag behind all its competitors in these two areas. This shows that the
brand’s positioning as the Nutritious cocoa drink is not working and the consumer is
not able to associate the Victor as a nutritious drink. Hence the brand’s positioning
needs to be changed and the brand should be positioned on its core strength which
is its taste. More so as its competitors like Bournvita, Nutramul who are positioned
as health drinks are doing very well.
From the above perception map we can see that Victor Plus is considered an easy to
mix product. It ranks high on this attribute as compared to other competitors.
However the packaging of Victor is not very attractive as compared to others like
Milo, Boost, Maltova and other products.
1. The current positioning of the drink as nutrition drink does not go down too well with the
consumer as shown in the perception map.
2. The positioning of Victor initially was as energy drink then changed to nutrition and tasty
drink. The brand attempts to compete with its existing competitors on all attributes rather
than positioning itself on its core strength and build on that strength.
3. The positioning statement “ The tasty and Nutritious Cocoa drink with milk” does not
strike a chord with the consumer and is not catchy either.
4. The brand needs to create an identity for itself, find a word or associate itself with
something that becomes synchronous with the brand. For example, when u talk to boost
we immediately think of it as a source of energy, as their positioning, promotions and
advertisements are all centered around the word energy.
From the Ingredients utility table, we get the following composition of victor plus
and the utility it contributes to.
Energy Position
Victor Plus
Gives Growth of Tas Immun Digesti Metaboli Energ
Form tissue te ity on sm y
Malted Barley 0 1 0 0 0 0 1
Sugar 0 0 1 0 0 0 1
Salt 1 0 1 0 0 0 0
Cocoa 1 1 1 0 0 0 0
Potassium
Bocarbonate 0 0 0 0 0 0 0
Caramel 0 0 0 0 1 0 0
Added Flavour 0 0 1 0 0 0 0
Glucose 0 0 1 0 0 0 1
Count 2 2 5 0 1 0 3
We can see that Victor Plus is high on taste followed by energy content.
From the first perceptual map, we can see that the consumers rate Victor plus high
on taste as compared to other competitor’s products. This can also be seen from
the blind taste tests that were done where the consumer chose Victor Plus over
other products.
Hence we suggest Victor Plus to be repositioned as “The Tasty Energy Drink”. Also
by this positioning both target segments of children and mothers can be captured.
Comparing with the competitor’s labels, we observe the following drawbacks of the
current label:
– Too many colours. The colour of the label should represent the brand
to create an identity for the brand
– Brand name is not clearly visible on label, should have bold and
blocked fonts so that brand name is visible at a distance
Keeping above points in mind, we have designed the new label as follows:
The main aim here is to ensure the brand has its own distinct identity. The colour
Blue was chosen as the brand colour and the emphasis of the packaging is on
attracting children and mothers and drawing attention to the taste factor of Victor
Plus.
Packaging:
The idea is to create a packaging that creates a point of differentiation with respect
to other products.
We suggest that they should not stick to one form rather have different forms for
different quantities and have special packs. The different forms of packaging could
be:
– Bottles that could double up as water bottle, once the content is used
up. This could draw the attention of many children and parents.
Eg:
– Smaller container packs to promote the taste. These packs could serve
as trial packs for new customers and this type of packaging involves
low cost. These could serve as refill packs too.
Eg:
– Use of one colour on all packs -> ensure the brand identity
Promotion strategy:
– Heavy advertising to ensure high awareness of the brand and its benefits.
– The new packaging of the Vicro Plus sold in water bottles can be promoted.
– They could continue the promotions across schools and colleges.
– Trial offers to attract new customers
– They could also sponser some huge kid’s event or television series on T.V
which would increase their visibility. For eg: The Bournvita Quiz contest is a
very popular T.V quiz show.
Advertising Channels:
If the brand Victor Plus needs to compete with other national brands it has to be
advertised extensively in local as well as national media. Some of the channels
could be:
– Television Ads
– Radio Ads
– Billboards at various locations
– Print Ads in newspapers and children’s magazines
critical purchase criterion for brand choice. On the contrary, low price may
give the perception of poor product quality.
• So, we need to decide if we have to focus on high-income households or
institution segment. Accordingly, the pricing strategy should be devised.