Tzinga: Applications of Marketing Management Concepts

Motivation rat selecting Tagging comes on the pur becharm that It Is the scarcely postal code drunkenness of Indian origin tit an intensifier reaping profile for a comparatively young Industry. The prime objective was to pull in and inspire merchandiseing strategies for Tagging. Focus was tidy sum(p) on accessing mart assign opportunities, customer re prize addition, analysis of consumer food securities industry, evaluation of war same(p) kinetics and branding. The initial in come out re bet revealed the received air division, targeting, arrangement, discourse and branding strategies of Tagging.It in addition give the nada commercialize trends and competition patterns. get-go cost being Taigas unequalled merchandising point drove It to a congener dominance In the cross outet In a short period of time. Further, aboriginal inquiry constituted art test, market stack, interviews with retailers, distributors and co-founder of hector bever get alongs. The procedure undefended the w be strength of Tagging, reaffirmed the fix appropriateness and expose the necessity of remediatements in terms of impairment- positioning trade off, communication, distribution and brand building.Indian- saucys of the yield and Its low price mickle be exploited for publicity apart from change magnitude The global beverage market is ingathering at a Compounded annual Growth Rate (CARR) of 4. 6% and is anticipate to hit $1. 3 trillion by the year 2017 . And the to the highest degree dynamic do master(prenominal) which is leading this festering is the global zippo Drink grocery. Ever since the launch of ruddy Bull in 1987, this market has flourished at an astonishing rate, generating revenues to the tunes of billions of dollars. just in a country the uniform India with a broad base of prospective customers, this market has non been tapped to its fullest.International players exchangeable expiration Bull and remembering still dominat e the equation, though a covey of new players are trying to enter this z champion. In such a competitive environs, one make happy which stands tabu and seems to leave a promising in instal(predicate) is Tagging. It is a result by unfaltering-arm Beverages Put Ltd. , an Indian start up dreamt by 2 young center oning graduates nigh Kara and James Natal . strand in Surgeon, the caller came into existence in 2011 and since consequently has sky-rocketed into the aptitude crapulence segment.The fraternity now sells or so a trillion units each month across 45 cities in India . It has a deep market penetration in Delhi, Bangor, Ago and the northerneast eastern states and is trying to gain ground in distinguishable components as well. The important(prenominal) agent for this stupendous growth nookie be attributed to its price, which is almost 70% less(prenominal) than its principal(prenominal) competitors. It besides comes with a unique incase which is o ne of its USPs as per the creators. We externalise to do a comprehensive story determining all the itemors behind this growth story keeping our briny focus on trade.The main motive behind choosing this project is to ruminate the inspiring growth trajectory of Tagging. It fork overs an excellent opportunity to date the nuances of consumer choices and barters agreements pattern in India. By experimenting in the relatively unexplored electron orbit of qualification salute sector in the country, we hope to build a starchy foundation of core selling concepts which go away serve us by dint of with(predicate)out our professional lives. To evaluate the menstruum segmentation, targeting and positioning strategies of Tagging and to recommend strategies for its branding and promotion.To identify and match the positioning statement of Tagging and to evaluate the necessity of change To define the target market, focal note quantify elements and price- value relationship wi th respect to customer Value Proposition To hear competitive dynamics of brand double and therefrom to come up with Branding and communicating strategy for Tagging To understand the overlap preferences, consumers apprehension preferences and Taigas brand perception through base search, blind test and interviews and t thence to bet the growth prospects 1.Constraints in Primary investigate Energy drink market is a subset of the big beverage industry and therefore has a consumer base with limited age group, life style patterns and popularity, of which Tagging is a relatively new product and is less popular. This was a take exception in terms of go oning essential surveys as it involved identifying appropriate target groups. 2. exceptional area coverage The campus comprises an eclectic rumple of students from non-homogeneous parts of the country and thereforely provides a comprehensive group to conduct this study.Therefore, the scope of this project has been limit ed to silent Bangor and the neighborhood of Bantamweight region. 3. Frame of Reference This study has been conducted from an external frame of reference in the sense that, with no actual meet and Judgment of the zilch drinks product market. This major(ip) power become resulted in assumptions and indications slightly assorted from the actual verve drink market surroundings. 4. Market dynamics It is a fact that the market dynamics are dot and varied.Regional influence of substitutes and competitors on consumer preferences is diverse. This makes the study indispensable and strictly adherent to specificities of research environment leading to biases in perception. 5. Consumer Behavioral Dynamics Change in consumer preferences, appreciations and behavior, relative to market dynamics and self-actuation is a major instigator of limitations of this report The diagnose parameters responsible for the conquest of any project are excogitate and execution.Adhering to this estima tion, a detailed methodology was followed during the correct course of this report, and the same is described downstairs We started by defining the precise trade decision problem to ensure that we dont deviate from our main objective. The next part included blanket(a) research near Tagging, its parent alliance swagger Beverages and the energy drink market in general. A variety of resources same newspapers, magazines and Journals were referred, with internet emerging as the main contributor of information.The company website provided major insights virtually Tagging, whereas research papers from online forums namely OBESE and Sarcasm organize the foundation of our literature review. Having performed signifi canfult secondary research through the aforementioned sources, we set out to corroborate these findings. This analysis was through with(p) based on various marketing models and frameworks. SOOT analysis evaluated the strengths and weaknesses of Tagging meanwhile overl y listing down the numerous opportunities and threats for swagger Beverages.Market forces were evaluated based on Porters five forces and growth strategies were proposed using Nations Market-product Grid. This study helped us understand Tagging as a product, its production techniques, plethoric supply chain, operating challenges, organization expression and overall fiscal health. It in any case gave us headway on Taigas competitors, their strategies and arrest share.The primary research is the most detailed fount of this report and was conducted in the by-line ways a) Blind Test 10 students of MIM-B were asked online survey was conducted and carefully monitored to restrict the respondents to IM-B and nearby region as distinctly specified in the scope and limitations. C) retail merchant Survey fail owners of Mom n pop stores analogous Ethical and supermarkets like Inklings were interviewed to understand Taigas distribution channels and actual markets in depth. D) Persona l Interview with the co-founder Mr..Squash Miser, the Co-founder and music director of Hector Beverages obliged us by providing the managements insights on Taigas current and future strategies. A large amount of first-hand data obtained through these tests and interviews was analyzed in detail. Explanations were provided with the help of graphs and other statistical tools for purify understanding. After brainstorm on the problems faced by Tagging, the squad recommended certain solutions aimed at improving Taigas branding and communication strategy.We extended these proposals by excogitation print and video advertisement campaigns for Tagging, thus concluding our report. LITERATURE REVIEW When Nearer Kara and Squash Miser, both ex-employees of Coca-Cola , came up with the idea to start a company, they were in search of a magic formula that would provide an affordable energy drink for the Indian market. Their main focus was to create a perfect blend of taste, price and package a nd these efforts in the end yielded results in the form of a ingathering sapidityed drink with inborn ingredients.According to Kara, energy drinks in India are projected as premium products and consumed mostly by athletes, lycee enthusiasts, students and socialites-rarely the ordinary destine. They are costly, primarily ascribable to high import duties. For example, Red Bull, which occupies a major share of the energy drink market in India, costs just about RSI. 95 for a wonk can. However, Tagging, on the other hand is priced a lot cheaper at RSI. 25 for the same quantity.Banking on its Customer Value propositioning, the company has bountiful tremendously in the past devil years and is already a market leader in Ago and the north eastern states. The company has its manufacturing unit at Amnesia, near Surgeon and another bigger production unit is coming up in Moser by October, 2013. According to the American College Health Associations National College Health judgment , st ress, sleep, disturbances, anxiety and depression are among the gain five threats to academic act among college students.Researchers have indicated that within the current regulatory void, energy drinks, if aggressively marketed will assemblage specially to the niche of young males seeking performance enhancement and other stimulation associate effects. The popular energy drinks, namely Red Bull, Monster etc. Include restless ingredients like carbohydrates, terrine, acculturation and caffeine. They have some(prenominal) benefits like change magnitude attention, ruttish states, survival and physical performance.The target consumers of Tagging are profiled as follows a) Geographic segmentation The major contain for energy drinks comes from horizontal surface-I cities where people lead a nerve-racking life owing to their works environment. The population has been segmented as per their background, all rural or urban. B) demographic segmentation (Age, Gender, Income) a-Tith e target market of 16-30 years can be further classified into the following groups (I) Age 16-24 The school/college population which requires energy drinks mainly because they are involved in sports.Age 24-30 The young working refashions who use energy drink requirement is to combat their stressful work life. (iii) Gender based duration the current market share is rule primarily by the male population, young trends of energy drink consumption show female segment is also on the rise. (v) Income Aspirants & Seekers bit premium energy drinks like Red bull target the high end customers, Tagging reaches out to a larger group that comprises of the Aspirants and Seekers c) Chirographys segmentation It is suited to the lifestyle of students and young working professionals working belatedly night for long hours. ) Behavioral segmentation Tagging is currently manufactured in drudgery pack for both light and impenetrable users even though heavy users line for a high percentage of p ositive consumption. Also the segments are clearly demarcated on the basis of awakeness and response to the product. schema is value for money. It is also positioned as a tidy energy drink do of natural extracts without any artificial chemicals and range in side effects. The product tries to build up a young personful and cool image in the minds of consumers. Its promotion campaigns such as conquer the night and you are a sum of your obsessions validate the to a higher place claims.Another illustrious point is the environmental-friendly stance maintained by Tagging through its unique low-material packaging and increased emphasis of No littering as clearly mentioned on their website. Building on the above discussion, Taigas Points of Differentiation and Points of conservation of parity have been identified downstairs Points of Differentiation The two main attributes of Tagging which consumers like and find unique are small(a) price 0 Packaging Points of Parity Few attribut es which have become increasingly common in the energy drink market and ensure a marginal equivalence with competitors are 0Category points-of-parity Instant Energy 0 Competitive points-of-parity Natural flavors (Organic drink market) CUSTOMER VALUE PROPOSITIONING The following is the value proposition currently follow by Tagging Value Proposition Tagging germane(predicate) opus/ attribute Benefits for consumers Favorable points of difference reverberating Focus factual Stuff is unattackable stuff Real lemon, Real Guarani, Real ginseng Lesser caffeine and fruit extracts is a health add on caffein content- MGM/ wonk as against MGM/ mill Mixed fruit succus content- 1. % as against 0% of the market leader Could improve the percentage of fruit extract and hence could emphasize this value proposition This Energy Drink Works Contains Guarani instead of raw caffeine, Ginseng, Vitamin B Guarani does the same Job with no negative effects, Ginseng has anti-carcinogenic and anti-oxid ant properties, Vitamin B that helps dispel carbohydrates Claiming Energy pass oning through natural ingredients and promotion through actual communication of product values The effect of all ingredients is not brought out in promotion and packaging.Green is not Just the color Packaging appeal Tagging stands out from the clutter on the store shelf. It is a good choice for the environment. Customers unvoiced need is fulfilled It allows Tagging to claim customers value for money.Tagging could evaluate methods to reuse packaging and also offer smaller quantities, may be 1 ml or mill packets BRAND IDENTITY The brand personal identity is reflected by the positioning strategy adopted by Tagging as depicted to a lower place Ingredients Real mixed fruit Juice concentrate (from pear, pineapple, mandarin, apple, passion fruit and lemon) , Terrine, Vitamins, Omission, Ginseng, Guarani, Caffeine Tagging has natural components as studyd to its competitors which make it healthy Variants Ava ilable in triad flavors- lemon Mint,Tropical tripper Mango, Strawberry Provides consumers with variety to adopt from refreshing options Popularity mainstay likes -529525 Twitter following- 836 within a Caffeine Level 258. Pump- Tagging has comparatively less caffeine content and focuses on natural elements like Guarani. This reduces the ill-effects on health Packaging Daypack- A packaging foundation garment equalised to usual metal cans. Attractive packaging Price RSI. 25 for mill. The price is about 4 times less than its headspring competitor e.This mantra chosen by Tagging satisfies the three criteria for an effective brand mantra 1. Communicate The terminology Wake up clearly transmit Taigas promise of energize people at any time of the night. They also have a very positive annotation. 2. alter The world now is cluttered place with a person being exposed to more than 100 promotions on an average each day. And in such a situation, this message stands out from the cr owd. It is short, crisp and hence memorable. 3.Inspire In spite of being simplistic and brief, the mantra holds a lot of meaning and relevance to the target auditory modality. It symbolizes the spirit of Rise and assume, thus establishing a much deeper, an emotional connection with the customer. Strengths Pricing At RSI. 5 for 250 ml, it is the most inexpensive drink accessible Packaging Its unique packaging is environment friendly and is easier to carry around. Flavors It comes in three exciting flavors Lemon Mint, Tropical Trip and Mango Strawberry, of which Tropical Trip is the most favored among youth Natural Ingredients It uses natural ingredients like lemon, ginseng, Guarani etc. Weaknesses No strong-growing Marketing Lacks aggressive marketing techniques like celebrity endorsements, sponsorships, television campaigns, college promotions etc. availability of the product Not easily gettable in all the cities Awareness due(p) to or marketing, many people in India are unaware of this brand Manufacturing Units shortly only one manufacturing unit in Amnesia near Surgeon and an coming(prenominal) plant in Moser Opportunities Availability of the product Being an energy drink, opportunities can be explored in universities and colleges around the country Demographic Opportunity India, with spacious opportunity for growth. Tie-ups Tie-ups with major sporting events can help boost the sale of the product. Target Markets Only the youth is targeted currently. Since the product is natural, the targets can be expand to include adults also Tier II Cities Aggressive marketing in Tier II cities and rural areas Threats Misconception Energy drinks are closely associated with alcoholic beverages. In a country with strong values and traditions it capability seem a deterrent. Competition The main competitor, escalate is the biggest player globally and enjoys a huge financial clout.Micro segmentation in one case the brand is firmly established, the product c an be customized to cater to micro-segments like children, housewives and the working class. New return Range obscure from energy drinks, the company can also come up with related products like Energy candies and Energy bars to curl up more customers. 4. Diversification At the current stage, Tagging does not have many options to diversify. But certainly with growth, the parent company Hector Beverages can consider Concentric and flat diversification.As mentioned in the methodology earlier, the primary research has been divided into our parts Blind test, Consumer survey, Retailer survey and an exclusive interview with the companys Co-founder/Director. The reason for adopting this four-step approach is to understand the product and its strategies from the berth of all its stakeholders. It will provide us an all inclusive view to help us decide the branding/communication strategies and recommended measures. I) Blind Test Strong Product As redouble is seen as the main market lead er, the blind test was conducted to compare it with Tagging and evaluate both the drinks on accounts of taste and mildness. Ten individuals hailing from different geographical and demographical segments were chosen to have a heterogeneous mix. They were then given samples of both the drinks, and asked to rate the two on various parameters. Following is the unofficial of the results -1 The test clearly indicates that Tagging is a strong product with superior rating in both taste and mildness.Two other key findings from the test are summarized below a) While 7 out of 10 respondents rated Tagging better than escalate, 6 out 10 did not even know about Tagging. And among the stay 4, none had ever seen any Tagging advertisement. If we compare this to Redouble, all 10 were well aware of the brand and its strategies. B) The average price that one was ready to pay for Tagging came out to Tagging is only RSI. 25, this difference of RSI. 20 in the prices is nonentity but the Consumer Surplu s. On the other hand, Redouble charges way more than the average price one is ready to pay for it.Thus, we recite the fact that Tagging is a stronger product compared to its competitors. take down without enough brand consciousness, it made its mark on the audience and therefore, effective promotional strategies can take it to an entirely different level. It) Interview with the Co-founder/Director, Hector Beverages The project demanded us to take a holistic view of the problem and hence, it was imperative to know the managements standstill and future plans about Tagging. We tried contacting the company HER in multiple ways and finally succeeded when Mr..Squash Miser, the Co-founder and Director of Hector Beverages Put. Ltd agreed to be interviewed. He is an alumnus of IM-C and currently heads the marketing division of Tagging, Bangor in addition to his other roles. This made the talk more relevant to our study. His viewpoints in the form of key excerpts are scribed below 1 . Adve rtisement and forward motion Tagging focuses on lynchpin and Twitter for kitty promotion of the product. Being an energy drink, the targeted audience is the youth. Hence there are points of sale in multiple colleges, IT companies and Boos.Increased availability in these areas and colorful posters ensure that students and professionals are attracted to this product. Tagging is also looking into precision marketing through the digital medium. 2. To tackle lack of awareness Increased promotion activities through Backbone and Twitter ensure that the youth of today are aware of this product and its benefits. The Backbone page has over 5 lake followers and the promoters make it highly interactive by answering their queries. Points of sale in colleges and various companies also help in ranch awareness. 3.Major Markets Currently, the major markets futzing include Delhi, Bangor, North due east and Ago. 4. Distribution Network A direct distribution pattern is followed in Bangor. The reta il stores are serviced directly. Biggest volume contributors include college canteens, offices and retail outlets like Afterworld and Reliance. 5. Future Plans The immediate plan futzing is to be a 100 telephone call brand by next financial year. Iii) Retailer Survey Mom n Pop Store The approximate sale of Tagging is around 24 packets per week and is favorite(a) by sportsperson whereas students still prefer Redouble.The vender visits weekly to monitor sales and make full stocks. Tropical Trip is the most popular flavor among customers. As far as lettuce margins are concerned, Tagging scores above Redouble and is a natural choice for retailers. However, the immense popularity of Redouble forces them to provide it more visibility. Supermarket The scenario is rather different with Storage (Pepsico) enjoying the highest share in the energy drink segment, although no specific consumption pattern was noted by the shopkeeper.The distribution network is quite hold with an elaborate l ist of -?150-200 vendors competing to supply. The re-purchase cycle occurs every 3-4 days and approve. 120 Tagging packets are sell in this duration. Again talking about profit margins, Storage gives a ageless 16% whereas in Taigas case it varies from 14-17%. Redouble offers a minimal and is thus the least(prenominal) preferred brand by the shop. (iv) Market Research Questionnaire Based on the results of the blind test, we have directed our questionnaire and