2. CASE FACTS Beverage and confectionary company founded in1969
by the merger of Cadbury Brothers Limited and Schweppes. The market
for soft drinks in India has a bright future. Decided to enter
India with the following brands Canada Dry Canada Crush Dr. Pepper
Lemon, soda and a cola drink 3. CASE FACTS Company philosophy: to
maintain a lean organization andoutsource most activities. Task of
franchised bottlers produce & distribute the soft drinks. ABC
Bottlers was given the territory of 5 districts: Pune Sholapur
Satara Kohlapur Sangli All India sales target for year 96-97 8
million cases. 4. BUSINESS PLAN FOR ABC BOTTLERS Market research
revealed Pune market had 5000 softdrink outlets and consumed 1.5
million cases per year. 70% of sales was accounted for by retail
trade, 30% of sales were accounted for by institutional sales. 5.
SALESSoda 30%Lemon 15%Cola 40%Orange 15% 6. COLA Thumps
UpPepsiCoke0%40% 60%SODA BisleriDukeOthers5% 30% 65% 7.
LEMON/ORANGE Gold Spot/LimcaMirinda/7 UpCandy
Dry/CrushOthers35%20%30%10% 35% 8. THE DISTRIBUTION PLAN Mr.Khan
C&F agent for Pune Sub-dealers were chosen and territories were
assigned Margin for C&F agent Rs.20 per case Margin for
sub-dealers Rs. 16 per case Task assigned to dealers Spot selling
40 Outlets per day. Each retail outlet to be serviced twice a week.
150 outlets call cycle. Plan to sell 40 cases per day per truck.
1000 cases per month 9. Distribution Cost was estimated to be Rs.
20,000 per vehicle DISTRIBUTION COST Per Vehicle Lease Rent- Rs.
12,000/ Diesel per month- Rs. 2,000/ Staff Salaries- Rs. 4,000/
Rent of Godown & other Rentals- Rs. 2,000/- 10. PROMOTION PLAN
Intensive advertisement required in Pune start 10 daysbefore launch
and continue 90 days after launch Ads on TV in the months of April,
May and June everyday Ads on 2 channels Doordarshan & Zee TV
Main media at Pune Hoardings 6 press insertions in TOI / Sakaal and
POP in retail shops Promotional tie-ups with movies 11. Local
budget excluding TV 5 lakhs for the launch National TV budget 5
crores Industry Norm Spend Rs. 10 per case for productpromotion
Thus ad budget should not exceed Rs. 8 crores per annum Target
audience for Crush teenagers (romantic theme) Canada Dry cool
campaign did not appeal to the Indian audience 12. PRODUCT FLAVOR
AND PACKAGING Crush: Flavor: the flavor was like fresh orange with
low sweetness and no after taste in the mouth. Packaging: Betsy
Bottle with frosty effect. Canada Dry: Flavor: a combination of
ginger/vanilla/lemon, low sweetness and no after taste in the
mouth. Packaging: the green bottle matched the golden color of the
drink perfectly. 13. PRICING Price realization of bottle- Rs. 6.10
Raw materialsRs. 2.00TaxesRs. 2.50OverheadsRs. 1.60Manufacturing
costRs.6.10C&F Agents commissionRs. 0.65Cost to retailerRs.
6.75Cost to customerRs. 10.00 Commission to distributor- Rs. 20 per
case. Commission to sub-distributor- Rs. 16 per case. 14. THE
LAUNCH Excellent timings of launch. Target of penetrating 40% ofthe
outlets in the first year achieved. Pattern of sale: Pune 50%
Kohlapur 25% Sholapur 25%AUGUST 10%JULY 12%SalesAPRIL 18%MAY 24%
JUNE 36% 15. AFTERMATH OF LAUNCH Mr. Bhasin was awarded the bottler
of the month Mr. Bhasins interview with the press. Retailers
resistance to the product. Mr. Khan, the C&F agents discontent.
Problems faced by Mr. sanjeev, the sub-dealer. Mr. Alam, the
retailer, said that owning CadburySchweppes bottles were not
economical. 16. 5 MONTHS AFTER LAUNCH Meeting with the
distributors. Mr. Bhasin addresses a sales meeting. Restructure the
distribution system. Tie up with Hallmark cards for joint
promotion. 17. PRODUCT LEVELS 18. PURE ECONOMIC BENEFITCost- Money
that a customer pays. Benefit- He buys the Cold Drink Bottle 19.
What are the segments that should be addressed? 20. FeedbackProblem
recognition Information search and evaluation Purchasing Process
Post purchasing behaviourDecision Process 21. Factors Affecting
Consumer Buying Behaviour External Environment 1. Cultural
Influences 2. Social Class Influences 3. Social Group Influence 4.
Family Influence 5. Personal Influence Individual Determinants 1.
Information Processing 2. Perception 3. Learning and Memory 4.
Motivation 5. Attitudes 6. Personality and Self Concept 22.
Consumer Buying Process Problem RecognitionInformation Search And
EvaluationPurchasing ProcessPost Purchase Behaviour 23.
SEGMENTATION & TARGETING Demographic Segmentation 1. 2. 3.
4.School Children College students Young Adults Working people
Socio-Economic Segmentation 1. 2. 3. 4. 5.Upper Class Upper Middle
Class Middle Class Lower Middle Class Lower Class 24. SEGMENTATION
& TARGETING Geographical Segmentation Rural 2. Urban 3. Semi
Urban 1. Behavioural Segmentation People Who Drink Alcohol 2.
People Who Drink Health Juices and Fruit Juices 3. People Who Enjoy
Aerated Soft Drinks 1. 25. POSITIONING CANADA DRYThe Champagne Soft
Drink CANADA CRUSHThe Orange Drink with Orange Pulp with EachGulp
26. Comment on the choice of people shortlisted 27. TRADE SEGMENT
(70%)1. STORES 2. RESTAURANTS 3. CANTEENSINSTITUTION AL SEGMENT
(30%)1. HOTELS 2. CANTEENS 3. DEFENSEPUNE MARKET (5,000) Outlets
28. PLANNED TO PENETRATE 40% OF OUTLETS IN PUNE PUNE MARKETPlan to
PenetrateRemaining 60%5,000 Outlets X 40% = 2,000 Outlets*The 40%
included both the segments i.e. 1. Trade Segment 2. Institutional
Segment 29. Name of DealerBackgroundNo. of Territory Truck sMr.
Khan C&F AgentRuns Flour Mill Financial Sound No Distribution
Experience5Mr. SanjeevNo Distribution Experience 1 Koregaon Park
Financially Weak Runs more than 1 store Satara Road Achieving the
target is easy Runs Canteen 1 Hadapsar No Distribution Region
Coverage Fatima Nagar Financially Weak Promising CandidateMr.
ApexShri EnterprisesInnocon FoodsM.K. MarketingPimpri/Chinchwad
Deccan Gymkhana Aundh Parts of CampAdd on with Chiwda Market
knowledgeT&C Agreed to the Runs Stores the Selling Experience
Canada of 1 Parts Can use same resources to sell Very Motivated No
Distribution Pimpri/Chinchwad Dry Financially Weak Knowledge of
Consumer BuyingSells Chiwda 1 Singad Road Behaviour and Choice No
Distribution Shadashiv Peth Spot SellingFinancially Weak
Distributes Mineral Water Financially Weak1Kothrudh 30. ESTIMATED
SALES DISTRIBUTION Mr. Khan Mr. Sanjeev Mr. Apex Shri Enterprises
Innocon Foods M.K. Marketing 50%- 1,000 Outlets 10%- 200 Outlets
10%- 200 Outlets 10%- 200 Outlets 10%- 200 Outlets 10%- 200 Outlets
100% -2,000 Outlets 31. What are the various alternatives for
launch? 32. ALTERNATIVE LAUNCH PLAN GOAL: To achieve 40% market
share by the end of 1st year in aereated drink segment CRUSH
:Target market youth CANADA DRY:Target market adultsADVERTISING
BUDGET Rs.8 Crores 33. MODIFYING CONSUMER HABBIT:Changing currently
held habits & converting customer in favour of our
productsExplain the benefitsDiscounted PricingSocio Economic
Factors 34. DISTRIBUTION STRATEGY:FACTORYC&F
AGENTFEEDERDISTRIBUTORDISTRIBUTORDISTRIBUTOR(PUNE)(Kolhapur &
Satara)(Sholapur & Sangli)TELE-CALLER (All Regions) 35.
DISTRIBUTION
STRATEGY:-DISTRIBUTORSDEALERSDEALERSRETAILERSTELECALLERSDEALERS 36.
PROMOTION PLAN:-CRUSH :TV ADVERTISEMENT ON YOUTH ORIENTED CHANNELS
OR PROGRAMSGIVE FREE REFRIGERATORS TO THE RETAILERS WITH CRUSH
PRINTS OVER IT GET TIE-UPS WITH FOOD CHAINS LIKE SUBWAY , KFC ETC.
BUS STANDS ,BUS BACK PANELS & ILLUMINATED KIOSK FOR PROMOTION
SPONSOR COLLEGE FESTIVALS WITH HIGH FOOT FALLS INTRODUCE BIGGER
SIZE OF BOTTLES WHICH WOULD INCREASE THE CONSUMPTION & GET DOWN
THE DISTRIBUTION COSTTARGET CHILDREN BY GIVING ATTRACTIVE FREE
GIFTS 37. PROMOTION PLAN:-CANADA DRY:-CELEBRITY ENDORSEMENT FOR THE
PRODUCT TV ADVERTISMENTS FOR 6 MONTHS WITH SHORTER LENGTH ARTICLES
AND WRITE UPS ABOUT ITS UNIQUE FLAVOUR IN VARIOUS NEWSPAPER AND
MAGAZINES PROMOTE IT VIA VARIOUS COOKING SHOWS WITH NEW MOCKTAIL
& COCKTAIL RECEPIES USING CANADA DRY TAG LINE WHICH WOULD
PROMOTE IT AS A DRINK WHICH IS GOOD FOR HEALTH COME UP WITH
ATTRACTIVE TINS & PET BOTTLES
