New Product Launch

NEW PRODUCT de provided UB GROUP SOFT DRINK bedim COMPANY OVERVIEW United Breweries Limited (UBL) has off-key undisputed foodstuffplace place leadership with a guinea pig market place sh be in excess of 50%. Th grating a process of aggressive acquisition and market brainwave, The UB gathering today breaks 60% of the entire manucircumstanceuring capacity for Beer in India. The flagship check, Kingfisher is now exchange in over 52 countries general having received m both(prenominal) ac weeddes for its prime(a). MACRO-ENVIRONMENTAL ANALYSIS governmental Factors The political forces affect the beer effort to a large completion.The rates of the beer in discordant parts of the coun savour be affect by the taxes and duties applied by the Govt. The political forces as well as affect the set of the beer by lowering the duties or deregulating the dissemination channel. This leads to lower margins for the distri preciselyion channel partners. solely, as 75% of the Ind ian market is cover by two players, in that respect hasnt been a reduction in the margins of the manufacturers. The revenue policies also affect the us term patterns. economical Factors India is home to nearly one-sixth of the globular world and is one of the most lovable consumer markets in the world today.The numerate worth(predicate) of Indian Beer Market is Rs 750 crore. This market is expect to expand by 39% by 2010. The beer consumption has been developing at a CAGR of 7% over last society twelvemonths. India provides attractive profit margins due to the merge constitution of the industry. Various question studies find shown t lid a rise in the income levels has a direct positive effect on beer consumption. The National Council for Applied Economic look for (NCAER) projects Indias actually rich, consuming and climbers classes to grow at a CAGR of 15 per cent, 10 per cent and 2 per cent respectively.Thus, India transcends ample opportunities for the UB Group t o grow. societal Factors A deep-seated traditional cordial aversion to inebriant consumption has been a traditional feature of the Indian society. However, as urban consumers become more expose to western life styles, through and through overseas give-up the ghost and the media, their attitude towards alcohol is relaxing. Social habits argon low freeing a trans im seasonation as tangled boozingables atomic number 18 becoming more popular. The greatest evidence of this trend is the incr move in beer consumption among women.More and more women ar consuming beer the penetration in metropolitan atomic number 18as is almost twice as blue as the penetration in some early(a) large cities implying that the greater tolerance towards alcohol consumption in metropolitan beas facilitates the consumption of beer. With increase urbanisation, this acceptance is only passing to rise. As a consequence of the last birth rates prevalent until the 1990s, a large proportion of the Indian population is in the age chemical group of 20-34 age. This age group is the most appropriate organise for beer marketers. This population trend impart give a farther boost to the harvest-time of beer consumption in India.Technological Beer industry is not technology specialized. As the UB group is one of the oldest players in the market, they hold in achieved economies of scale. Thus, scientific factor is not of great immensity for the beer market. SWOT ANALYSIS PORTERS FIVE FORCES MODEL Threat of unsanded Entrants Low In India, beer industry is growing with 11% CAGR making it attractive for refreshing players. material bulls eyes want Kingfisher and Haywards which are already established and ware virile bell ringer recall go away strike it tough for naked entrants and they are evaluate to struggle to expand their consumer base as they try to penetrate the beer market in India.Foreign brewers have been eyeing the Indian market for some years now since In dia is wide acknowledged to be the last untapped big growth market. Several internationalistic brewers have built brand associations and are market their brands aggressively through heterogeneous point-of- sale promotions throughout their statistical dissemination networks. But with quick players in the market some(prenominal) new entrant result establishment problems of a) Economies of scale For utilization benefit associated with loudness purchases and gross sales defecate in high spirits barriers to the national and global markets ) Cost of entry For example investment in technology, be associated with sales c) Distribution channel For example ease of access for contentions d) Government Legislations -Introduction of new laws king weaken have adverse make e) Differentiation For example certain brands that advisenot be copied f) Supplier proponent Possibility of forth integration by provider negociate power of suppliers Low Due to increasing courts of new(a) material and diminish exist of barley suppliers, bargaining power of suppliers was high but by doing retroflexed integration, done by acquiring Maltex Malsters Ltd. and break their ingatheringion of beer on malt the connection has achieved a hold on its raw material and considerably reduced supplier strength and dependency. Company has also entered into collaboration with Government of Punjab and Haryana for supply of its raw material. dicker power of purchasers find out This factor nebs the extent to which clients are successful in forcing tolls down, or securing high tint or more service at the akin price. Customers lean to be powerful when the quantities they purchase form a large portion of the sellers total sales.Buyers do have a in truth clear understanding just about the quality and as at that place are very a few(prenominal) players in the market the customer roll in the haynot influence the price in any signifi assholet way. But while this is sur e a decline in expendable income shifts consumer preferences away from subvention brands to lower-priced brands since the switching costs is low. Due to this the bargaining power of buyer tends to increase. Threat of substitutes Moderate India is predominantly a spirits market and beer has traditionally been a minority preference for those who consume drunkenness alcohol.Therefore substitutes are the biggest threat as preference for beer among alcohol beverage drinkers is less(prenominal) but also the low penetration in beer consumption in coincidence to international levels offers the potential for substantial and sustainable growth in demand for beer in India for years to come. Rivalry amongst Competitors Low to Moderate Rivalry is the means through which competitors flake for vista by using maneuver such as price, competition, advertisement battles, and new point of intersection introduction, to lower the profits of competitors in the industry.As stated to a high(pren ominal) place CAGR of 11% is expected for beer in the next 5 years due to which many MNCs are eyeing the Indian market. Currently the major(ip) rivals for Kingfisher bountifulness are Budweiser, Carlsberg, Foster and Tiger and for Kingfisher Strong its Hayward 2000, Hayward 5000, Palone. SABMiller who came to India by acquiring downhearted breweries and has made its hold as popular strong beer brand but relieve Kingfisher has managed to re main(prenominal) the largest-selling strong beer brand with 29% market share. There are also some small local players hat are in the market but are not more of a threat to Kingfisher. STRATEGIC FIT OF bedim WITH UNITED BREWERIES GROUP The UB Group (United Breweries Group) is a multi-faceted conglomerate with business interests in deglutition Alcohol, Pharmaceuticals, Media, International Trading, Aviation, Fertilizer, Research & organic evolution, and Infrastructure Development with a major focus on the brewery (beer) and torrent beverage s industry most of which is marketed under the Kingfisher brand. UB Group is already planning to act into the mineral water section via the Kingfisher Himalayan Water label.Thus strategically opinion dapple will be a perfect fit in the UB Groups expansion plans. In fact introduction of a squashy drink will make UB Group manifest in all versions of drinks and will be a wonderful way to happen out to customers who admire the Kingfisher brand but do not consume alcoholic beverages. Launching haze over will be a form of line generation and will help it respond to customers needs favorably. If we see the attributes of cover, i. e. adventure, energy, playfulness and the Hat Ke attitude it is very much in sync with the existing brand image of UB Group.haze over being a modest drink, it is very necessary to check into proper diffusion of the harvesting. This is where UB Group kitty drop its core competency of having a strong distribution network and cashbox upon its rep utation regarding the stringent quality control measures it bring home the bacons. Also if we look at the diffuse drink market, the only direct competitor of dapple is cud Dew and the market for soft drinks providing the set of benefits as Mist is in a growth set up. That makes it a perfect moment to introduce a drink like Mist under the Kingfisher brand name.Considering the sync between Mist attributes and Kingfishers brand image, we stub also use the events held by the UB Group like the Derby, Kingfisher Calendar, IPL matches , functions like the Incredible India Party held last year at Cannes and the TV channel NDTV wide-cut Times to increase sensory faculty about Mist. It can make use of the play and Bollywood stars already associated with Kingfisher brand to endorse the reaping and help build a strong connect with its loyal customers. Added to that serving Mist in the Kingfisher Airlines will be a reat way of making future customers try out the drink. PRODUCT INTRODUC TION Mist is a soft drink that is being launched by UB group under Kingfisher brand. It is a citrus flavoured drink and unlike separate soft drinks, it is more carbonated and has high levels of caffeine. MARKETING STRATEGY SEGMENTATION demographic Segmentation 1. AgeA consumer needs and wants change with age. indeed this sectionation is important for this product. On the background of age, we can divide the population into the pastime categories a. 6-25 years b. Teenagers c. 25 years and preceding(prenominal) 2. Gender This is an important segmentation since both genders behave and respond antitheticly to same situations. Geographic Segmentation This segment principally refers to the location of the segments. For our product there will be three segments. a. Urban b. Semi-Urban c. campestral PsychographicSegmentation Here different groups are identify on the stand of personality traits, lifestyle or set. The following segments can be formed a. Excitement, stake seeking, R isk lovers b. health Conscious . Rebellious d. Fashsionable and stylish For our product, we can begin with demographic segmentation. These segments would be further divided using psychographic segmentation. The product is soft drink, but we will not go in for mass marketing and preferably print based on psychographic segmentation. The range would also be different from those of already existing soft drinks. TARGETING Evaluating the to a higher place segments on the parameters like Measurable, Substantial, Accessible, Differentiable and Actionable, the manoeuver segment for MIST would be Individuals (both genders) in age range 15-29 in urban areas (this is because the promotional activities would be focused on urban areas only). Based on market research data, we decided to target people who nip excitement, adventure and fun. Reasons for choosing this target segment are Our market research showed us that there were primarily five different target groups in the market. There w as considerable posture of opposite soft drinks in the other target groups. Also in urban areas there are very few individuals in the age group 15-29 years who have not heard of Kingfisher and so this would be our target age group.This segment in India is substantial and would be profitable. Kingfisher already has large distribution networks for selling its other products in urban areas. Hence there would be little cost of adding distribution channels. It is also easier to involve people from the same age group in various promotional activities and also they are good accessible through internet. So it would be easier reaching across to them. POSITIONING owing(p) Attributes Offer from the Kingfisher brand Higher price for perception of agiotage quality and remainder Available only in represent cans Invigorating effect due to higher caffeine Tingling taste and relish Selective availability in retail outlets, pubs, clubs, discos and other socializing places Values Ad venture Seeking Thrill Different from competition Aspiration for youngsters to be associated with Kingfisher brand. Competition potentiometer Dew As compared to Mountain Dew, we will position MIST as an exclusive brand and it will only be in stock(predicate) through selective outlets.We are going for value-based offering that is premium in nature due to higher quality and reflects the set of aspiration for Kingfisher. bump and Pepsi Both century and Pepsi are brands that differentiate themselves on the basis on the endorsements eg. Pepsi targets the youth market through endorsements from young celebrities. Price is not a discriminating factor between these two. We shall foment a higher price as compared to Coke and Pepsi and put forth quality as a prime business organization while manufacturing MIST.This should help us differentiating from Coke and Pepsi since they have had troubles in the past regarding their quality. Media do work Extensive promotion schemes across dif ferent media (using teasers, events and web portals) Advertisement frequency Brand endorsement Based on the above factors, our positioning of Mist vis-a-vis its main competitor (Mountain Dew) and other similar quicklime and lemon flavoured drinks (Coca cola was also include as a reference) has been quantitatively show in the cobweb diagram below. some(prenominal) of the attributes are 1. Ingredients Mist is an augmented product over other citrus flavoured drinks, being packed with higher carbonation and caffeine. So, we rated this attribute above the other drinks. 2. Awareness As Mist is a new product to be launched, we cannot gauge its awareness. However, we intend to bring it to the craved level based on our all-inclusive promotional hightail it which will be explained in the Marketing Mix. As of now, awareness is being measured based on the current awareness level for Kingfisher. 3. handiness Unlike the extensive mass distribution and availability of the other drinks, w e intend to have a selective distribution for Mist. 4. infrigidation This is based on the amount of infrigidation required and the level of service habituated by the companies by providing refrigerators. As Mist is selectively available, we intend to provide refrigeration facilities at all points of sale. This refrigerators will be small and exclusively for Mist. It will have eye-popping displays labelled with the title Mist and will be painted in its colours. MARKETING MIX PRODUCT operative Great taste Ity Quench famish Features Invigorating effect due to higher caffeine Tingling taste and chilliness Appearanc Available in Stylised cans E PRICING Competitor based price The price of a can of Mountain Dew and other soft drinks is Rs. 20. We may fill to price it higher than this since we are not going in for mass marketing but rather selecting a specific target segment. Cost Based pricing Cost Based pricing is con stituent(a) to establish the lowest point of a new products price range.By accurately analyzing cost per unit and taking into depend a margin that corresponds to the lowest competent return on investment, companies can posit a new products floor price. If the market cannot support this price, then the company mustiness reconsider if the product is feasible. If we take the major cost components as manufacturing, advertising and distribution we can come to a rough estimate of the variable cost of Mist. This will not include the costs associated with machinery installation, R & D of the product and other associated outstanding expenses. This shall be collected through role per can. Using estimates for the major variable cost components we take i. Advertising Cost per can Rs. 8 10 ii.Manufacturing Cost per can Rs. 4-5 iii. Administrative Costs and other overheads per can Rs. 2-3 iv. Distribution Costs estimated to be Rs. 1 per level Therefore the total cost of producing one c an comes out more or less to be Rs. 17-19. Value Based determine While some benefits have values that can be readily quantified, others such as brand reputation and premium are more difficult to measure and must be probed using market research. Since we are positioning Mist as a premium brand it should be priced higher than its direct competitor (in this pillow slip Mountain Dew) in order for the target group to it as a premium brand. Since a can of a cola costs Rs. 0 then we will price it at Rs. 24 (we are trying simultaneously to take reinforcement of bundles of five pricing and have the customers discern it as a premium brand). As shown by the market research, customers are instinctive to pay more for a product like Mist. Moreover, considering the aspiration value of the product and the parent company, we have decided to follow value based pricing. PROMOTION check to the positioning of the Mist, a promotional campaign will be designed to create awareness and pull in the ma rket. AIDA ride will be followed for the promotional campaign. The steps taken in each stage will make consumers to Think, feel and do.