“Brand Promotion of New Product” A case study on GT&T – HYDERABAD

BY

Shashi Ranjan Kumar (Reg. No.- 5043)

Of VISHWA VISHWANI INSTITUTE OF SYSTEM AND MANGEMENT

Under the Guidance of (Prof. Sunitha Ratnakaram) Associate Professor

A PROJECT REPORT ON

Submitted to the

FACULTY OF BUSINESS MANAGEMET

In partial fulfillment of requirements

For the award of the

POST GRADUATE DIPLOMA IN MANAGEMENT July 2010

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PREFACE

The PGDM program is well structured and integrated course of business studies. The

main objective of practical training at PGDM level is to develop skill in student by supplement to

the theoretical study of business management in general. Industrial training helps to gain real life

knowledge about the industrial environment and business practices. The PGDM program

provides student with a fundamental knowledge of business and organizational functions and

activities, as well as an exposure to strategic thinking of management.

In every professional course, training is an important factor. Professors give us theoretical

knowledge of various subjects in the college but we are practically exposed of such subjects

when we get the training in the organization. It is only the training through which I come to

know that what an industry is and how it works. I can learn about various departmental

operations being performed in the industry, which would, in return, help me in the future when I

will enter the practical field.

Training is an integral part of PGDM and each and every student has to undergo the

training for 45 days in a company and then prepare a project report on the same after the

completion of training.

During this whole training I got a lot of experience and came to know about the

management practices in real that how it differs from those of theoretical knowledge and the

practically in the real life.

In today’s globalize world, where cutthroat competition is prevailing in the market,

theoretical knowledge is not sufficient. Beside this one need to have practical knowledge, which

would help an individual in his/her carrier activities and it is true that “Experience is the best

teacher”

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DECLARATION

I Shashi Ranjan kumar, hereby declare that this project titled “A study on Brand Promotion of

New Product” A case study on GT&T – HYDERABAD “is an original work carried out by me,

under the guidance of Prof.Sunitha Ratnakaram (Associate professor). The report submitted

by me is a bonafide work carried by me of my own efforts and it has not been submitted to any

other University or published any time before.

Signature of the student

Date: Shashi Ranjan kumar.

Place:

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CERTIFICATE

Certified that this Project titled “A study on Brand Promotion of New Product, A case study on

GT&T – Hyderabad is the bonafide work of “Shashi Ranjan Kumar”, who carried out the

research under my supervision, certified further, that to the best of my knowledge the work

reported here is does not form part of any other thesis or dissertation on the basis of which a

degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of the Faculty Guide

Date: Prof.Sunitha Ratnakaram

Place:

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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for XXX Energy

drinks, GT&T India Pvt Ltd.It has been an enriching experience for me to undergo my

summer training at GT&T, which would not have possible without the goodwill and support of

the people around. As a student of Vishwa Vishwani institute of system and management I

would like to express my sincere thanks to all those who helped me during my practical training

program.

Words are insufficient to express my gratitude toward Mr. Gourav Shah, the Business

Development Manager of XXX energy, Hyderabad,Imran sidiqquee Project Guide and

Associate Prof. Sunitha Ratnakaram of VVISM.

My heartfelt thanks go to all who helped me to gain knowledge about the actual working

and the processes involved in various departments.

However, I accept the sole responsibility for any possible error of omission and would be

extremely grateful to the readers of this project report if they bring such mistakes to my notice.

Thanking You

Shashi Ranjan Kumar

Enrollment No.5043

VVISM, Hyderabad

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Executive Summary

I, Shashi Ranjan Kumar felt privileged to be a part of Vishwa Vishwai Institute of System and

management, Hyderabad. I did my summer training program in XXX Energy drinks holdings

GT&T Pvt India Ltd a FMCG Sector company in Hyderabad. My project title is “Brand

Promotion of New Product” A case study on GT&T – HYDERABAD .The Project basic

objective was make awareness of project along with analyzes the awareness of product for

retailer and customer.

The project begins with an introduction of Energy drinks and research of market demand, market

leader and product awareness to retailer and consumer. In this project I surveyed in areas of

Sales in retail outlets of Hyderabad and asked selected questions to the outlet owners who were

either not selling XXX energy drink or selling in very less quantity. We did some research

through questionnaire, to know the consumer perception and brand awareness.

Out of my project I learnt these things:

GT&T should understand the expectations of people If one wants to grow in FMCG sector

one should keep the following factors in mind that the products are easily available to the

consumers, competitive services should be provided to the retailers, the price of the product

should be low and last but not the least the visibility and the most important things are

promotional strategy should be such that it hits people’s mind that create a loyal brand image

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TABLE OF CONTENT

CHAPTER NO TITLE PAGE NO

CHAPTER 1 INTRODUCTION 9- 19General IntroductionObjective of studyNeed of studyScope of studyLimitation of study

CHAPTER 2 RESERCH METHODOLOGY 21- 25

CHAPTER 3COMPANY PROFILE 27- 37INDUSTRY PROFILE 38- 44LITERATURE REVIEW 42 -45

CHAPTER 4DATA ANALYSIS 47- 60

CHAPTER 5FINIDINGS 62RECOMMENDATION 63CONCLUSION 64

QUESTIONNAIRE 65- 67BIBLIOGRAPHY 68

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CHAPTER 1

INTRODUCTION

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INTRODUCTION

After overwhelming success in Mumbai and Goa, XXX, the new sensational energy drink from

GT&T India Pvt Ltd, a part of JMJ group, is now all set to take Hyderabad by storm. XXX will

be unveiled amidst a glittering, high voltage fashion show at Novotel which has Neha Dhupia

and Urvashi Sharma as the show stoppers. Prominent celebrities, socialites and who’s who of

Hyderabad will be seen at this event. But that not all. Hold your breath, The Badshah of

Bollywood, Shahrukh Khan will also spice up the evening in his virtual Avatar, which is

probably a first of its kind for Hyderabad. What is a virtual Avatar? Well, we are not letting the

cat out of the bag for the moment.

The Energy Drinks Segment is a 500 crore market today. And it is expected to reach Rs. 1,100

crore by 2010. Tapping this potential segment is a new energy drink, SJ XXX Energy that comes

from the house of JMJ Group. It is being launched with the objective of providing an alternative

energy drink to the consumer and is extremely high on energy and high on life.

The brand XXX energy comes in two variants currently- REJUVE and NICOFIX. The USP of

“NICOFIX” is that it is formulated with NPR which reduces the Nicotine urge and “REJUVE” is

an exciting energy drink specially formulated to suit Indian taste buds.” REJUVE” rejuvenates

your mind and body and enhances your immunity, thus increasing your stamina. Both the cans

are very competitively priced at Rs.75/- for 250 ml. These exciting products come to you from

GT&T India Pvt Ltd, a part of JMJ Group and are a strong reflection of the passion of its young

vice chairperson, Sachiin Joshi. Over five years of meticulous research coupled with the

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dynamism and sheer enthusiasm of Sachiin Joshi has given birth to SJ XXX- the energy drink for

the new generation.

XXX Energy drink is filled and manufactured in Dubai and will be launched all over India. It is a

premium brand with an international look to it and has already captured the imagination of the

youth. Sachiin Joshi, Vice Chairperson, GT &T India Pvt Ltd, aptly sums it up when he says,

“My product will speak for itself. And we have set very high targets and standards of excellence

for ourselves.” So, get ready to Xperience the Xtreme Xcitement.

Analysis of Energy drinks

Energy drinks as the name implies refers to energy boosting drinks that energize and refresh you.

So can guzzling a can of energy drink suddenly cause you to have superhuman strength? Well,

energy drinks contain mainly sugar, caffeine and other ingredients which are believed to increase

the stamina and provide you energy. However it is important to note that unlike sports drinks

which contain water and electrolytes, energy drinks "crash-and-burn" effect with the diuretic

effect of coffee leaving the body dehydrated.

It is surprising but energy drinks actually originated in Japan when a pharmaceutical company,

Taisho, released its Lipovitan D drink in 1962 which was designed to help employees work hard

well into the night. In America, the first energy drink was jolt cola which was manufactured in

1980's. Since then the list of energy drinks have grown tremendously with new energy drink

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ingredients such as ephedrine, taurine, ginseng, guarana seeds, amino acids, B vitamins and

ginkgo biloba. Here is an energy drink list along with the reviews of some popular brands.

List of Energy Drink Brands

Red Bull: Red bull is one of the most popular energy drinks in the world and is marketed

aggressively throughout the world as a performance boosting drink. In contains taurine,

glucuronolactone, caffeine, B vitamins, sucrose, phenylalanine, and glucose. While it is quite

popular in America, red bull is banned in countries like Denmark, Norway and in certain German

states as well when traces of cocaine was found in the product. However it does figure in the list

of energy drinks in India and many other countries.

Market Leaders and Price & Product Analysis

Name - Red Bull

Price - $1.99 single

Size - 8.3 ounces

Cool Factor - Although it is one of the most expensive energy drinks on the market, Red Bull is

by far the most popular. In 2003, almost two billion cans were sold in over 120 countries, taking

70 percent market share of energy drinks.

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Name - Vault

Price - $1.15

Size - 20 ounces

Cool Factor - This energy drink comes in a plastic bottle, making it look more like a soda. This

look helped to give Vault the slogan "Drinks like a soda, kicks like an energy drink." Vault

contains many of the same ingredients as Coco Cola's Surge, a highly caffeinated soda that was

discontinued in 2002.

Name - Full Throttle

Price - $1.72

Size - 16 ounces

Cool Factor - As of June 2005, Full Throttle has 7.8 percent of the energy drink market share and

is available in 75 percent of convenience stores.

Name - Tab

Price - $1.76

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Size - 10.5 ounces

Cool Factor - Tab is one of the only energy drinks that has a feminine appeal to it, with a pink

can and minimal calories.

Name - Rockstar

Price - $1.69

Size - 16 ounces

Cool Factor - This energy drink's can lists the names of "trendy cities" like Tokyo, Las Vegas

and Amsterdam.

Name - Lightning Bolt

Price - $1.00

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Size - 16 ounces

Cool Factor - Made specially by Steven Seagal, this drink even has a quote from Seagal beneath

the label stating that his energy drink is one with "natural vitamins and exotic

botanicals."

Name - Rip it

Price - $1.00

Size - 16 ounces

Cool Factor - Along with Lightning Bolt, Rip it is one of the cheapest energy drinks for the most

ounces. You can also buy other Rip it flavors like Lime Wrecker, Citrus X and Atomic Pom.

Effects of Energy Drinks

The consumption and usage of energy drinks is on the rise, and in nearly every part of the world.

The reason? People have discovered that guzzling a can of Red Bull (or that of one of its

numerous competitors) suddenly awakens them from a tired slumber and energizes them like

nothing else does. A majority of these Red bull guzzlers happen to be youngsters, collegians, and

even teenagers. Be it a group of youngsters at an all-night dance party at the pub, or the

overworked corporate community, the consumer base for energy drinks is spread far and wide,

and is only growing as we speak. For those of you who didn't know, over a billion dollars of

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annual sales is what the energy drink industry is worth, at the moment.

On a personal level, I too have had the chance to observe the effects of energy drinks on the

human body from close quarters. Being a performing artiste, I am almost always required to be

on full alert (in terms of energy and enthusiasm). At times, when you've had a long tiring day, it

does help when a couple of cans of a good energy drink instantly pump up your body's energy

levels and make you alive. (By the way, people from the event management industry literally

survive on energy drinks, in case you weren't aware of it). But are energy drinks all good and

zero bad? Or are there any bad effects of energy drinks on the human body.

Objectives of Summer Training

Topics - “A study on Brand Promotion of New Product” A case study on GT&T –

HYDERABAD

I did my summer training on the topics “A study on Brand Promotion” of XXX energy drink

holding GT&T PVT India Ltd.

As doing my training some objective I had kept in my mind for better learning and gain good

experience from my task.

Objectives have mentioned below

A Study on promotion tools and product awareness.

Study those outlets which are not promoting XXX energy drinks in the local area of

Hyderabad.

To analyze the reasons of not selling XXX energy drink at retailer’s level.

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To study the consumer perception.

To find out the ways to enhance the sale of XXX energy drink.

NEED FOR THE STUDY

Today costumers are facing a growing range of choice in the different brands of products

and services. They are making their choice on the basis of their perceptions of brand, quality

service and value.

The company has to adopt strategies to keep brand in consumer’s memory. Strong brand

awareness means easy acceptance of new products. An organization has to measure the level of

awareness of the potential customers and has to adopt different strategies to enhance the

awareness level and to identify the appropriate promotional tool.

Brand awareness is asset which brand managers create and enhance to build brand equity.

It is related to the nature and features of product. It leads to brand strength which is constituted

by measuring the variable like leadership, stability, Market, geographic, trend, support and

protection etc…

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Creating brand awareness with the use of advertising, promotion event management

etc… a different brand has different kind of awareness which retains recognition.

Brand awareness satisfies a need of the consumer. A consumer as aims, ambitions,

motivation drives and desire. Consumer feels more powerful when he uses the brand.

Satisfactions or preference for a brand shows how loyal the consumer is likely to be brand.

In today’s competitive business scenario where every companies product is competing with each

other retaining loyal customer is an essence for which increasing the level of brand awareness is

very vital. This study is not concerned only with brand awareness but deals also with other facts.

It includes a wide preview of

From where did the potential customers come to know about the product?

Which media is effective in communicating the message to the potential

customers?

Did the potential customers feel that the brand is important to purchase?

Which attribute of the product drive the potential customer to prefer the particular

product?

Did the potential customers felt that the branded product matches their

expectations?

How the brands influence the market?

What is the effect of the competitor’s product?

Are the potential customers satisfied with the brand, price, quality etc…?

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Scope of the study

The study helps to evaluate the promotional activities of energy drinks.

The study finds out which way of promotional efforts is required to get new customers in

entire Hyderabad.

The study finds out the perceptions of retailer towards the new launch xxx energy drinks.

This study also helpful to identity specific choice of customers.

It will be useful in finding out the factor influencing the purchase intention of products.

The study will help the company to find the more reaching sources of awareness of the

advertisement.

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LIMITATIONS OF STUDY

It is well known fact that constraint and limitations are bound to be present in any study do this

also has some limitation as:-

The survey has been conducted only in few areas of Hyderabad due to lack of brand

awareness.

It is very difficult to make people understand the significance of conducting survey.

Lack of retailer’s interest to answer the questions is also an important limitation.

Lack of knowledge of area has affected the research.

The information given by the client may be false and biased.

Difficult to collect data to know consumer Perception.

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CHAPTER 2

Research Design And

Methodology

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Research Methodology

Research in common parlance refers to a search for knowledge. One can also define research as

a scientific and systematic search for pertinent information on specific topic. In fact research is

an art of scientific topic. Some people consider research is a movement a movement from the

known to unknown. Research is an academic activity and as such the term should be used in a

technical sense. Research comprises defining and redefining problems, formulating hypothesis

or suggested solutions collecting organizing and evaluating data making deduction and reaching

conclusion and at last carefully testing the conclusion to determine whether they fit the

formulating hypothesis. Social science define the research as the manipulation of things

concepts or symbols for purpose of generalization to extend correct or verify the knowledge aids

in an original contribution to existing stock of knowledge making for its advancement. The

systematic approach concerning generalization and the formulation of the theory is also research.

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Research Design

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to research purpose with economy in procedure. Here

we have used descriptive research design. Since the aim is to obtain complete and accurate

information in the said studies.

The process had to be started from the grass root level and it was very important to understand

the market for this FMCG product which is very fast in production distribution and consumption.

The entire process was more of a Descriptive Research type and incorporated a formal study of

the specific problems. The survey was conducted on the basis of promotion and awareness of

Red Bull and XXX energy drink, preference of energy drink and determine the target market in

energy drink. The data collected had to be systematically arranged analyzed and reported in a

form congenial to take on the spot decisions.

The entire set of various segments in the population comprises all the retail store and outlets each

retail store in the sampling frame constitute the sample unit in brief we can say overall sampling

is based on 500 outlets. Along with the sample also collected by population of 500 people of

Hyderabad in local area to get the consumer awareness.

Sampling Design

A sample design is a definite plan for obtaining a sample from a given population. If it refers to

the technique or the procedure the researcher would adopt in selecting items for the sample.

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Sample design may as well lay down the no of items to be included in the sample. The

researcher must prepare the sample design which should be reliable for research study.

A part from all that mapping is also being done which covered the entire area of operation.

Mapping is nothing but the detailed information about the all markets of Hyderabad. In this we

collected the information about the no. of retailer are selling Energy drinks like XXX ,Red Bull,

Cloud 9,and other’s in the market.

Name of Retailer

Market Name

Location

.

Sampling unit

Decision is taken after concerning the sampling unit, sampling unit is the target markets of

Hyderabad here the selected sampling unit for study is outlet of energy drinks.

Size of sample

It refers to the no of items selected from the universe to constitute a sample the size of sample is

500 from the different markets of Hyderabad.

Collection of primary data

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The task of data collection begins after a research problem has been defined. The primary data

are those data which are collected for first time and thus happen to be original in character.

We collected the primary data during the course of doing experiments. In given problem the

descriptive research is used so we can obtain primary data either through observation or through

direct communication with respondent or through personal interviews. For collecting primary

data we used observation method, interview method and interview through questionnaire.

Collection of secondary data

In the process of research to collect secondary data, it used several existing sources such as:

Company website

Business journals

Internet

Magazines

Research Instrument

The research instrument tool used over here is the questionnaire. I had to do a market research on

the brand awareness. I have taken a structured questionnaire in which there are 10 questions out

of which 7 are open ended questions & rest three are close ended questions. This questionnaire

helped me in finding the percentage of customers and retailer perception about energy drinks. In

quantitative marketing research the application of quantitative research techniques is in the field

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of marketing. It has roots in both the positivist view of the world, and the modern marketing

viewpoint that marketing is an interactive process in which both the buyer and seller reach a

satisfying agreement.

In this survey the primary data is of at most importance. The customer’s face to face interaction

through questionnaire with their feedbacks is taken as the primary data. And the customers who

are the regular & irregular consume energy drinks in the twin cities respectively are taken as the

sampling units.

As a social research method, it typically involves the construction of questionnaires and scales.

People who respond (respondents) are asked to complete the survey. Marketers use the

information so obtained to understand the needs of individuals in the marketplace, and to create

strategies and marketing plans.

Statistical-tools

To analyze various statistical primary and secondary data. The statistical tools that I have taken

are as follows

Tabulation

Graph

Percentage

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CHAPTER 3

COMPANY PROFILE

INDUSTRY PROFILE

LITERATUTE REVIEW

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Company Profile

SJ XXX Energy is a sensational product by the renowned JMJ group, marketed by GT&T (a part

of JMJ group). It is a global brand manufactured in Dubai. It has been a successful brand since

it’s inception in Middle East. So they decided to launch it in Indian market, which is a huge

potential market.

They entered in Indian market with a bang being a primary sponsor for Kolkata Knight Riders

(KKR) in the DLF IPL T20 cricket tournament. They are also official and primary sponsor for

Commonwealth Boxing Championship which is to be held in the forthcoming year.

It is being launched with the objective of providing an alternative energy drink to the consumer

and hence giving him a winder extremely high on energy and high on life.

The brand XXX energy comes in two variants currently- REJUVE and NICOFIX.

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The USP of “NICOFIX" is that it is formulated with NPR which reduces the Nicotine urge and

“REJUVE" is an exciting energy drink specially formulated to suit Indian taste buds." REJUVE”

rejuvenates your mind and body and enhances your immunity, thus increasing your stamina.

Both the cans are very competitively priced at Rs.75/- for 250 ml.

These exciting products come from Goa Trade and Technology India Pvt. Ltd. (GT&T a part of

JMJ Group) which is an Rs.1000 Cr. company and are a strong reflection of the passion of its

young Vice Chairperson, Sachin Joshi.

Over five years of meticulous research coupled with the dynamism and sheer enthusiasm of

Sachin Joshi has given birth to SJ XXX- the energy drink for the new generation.

CUSTOMER SERVICE DEPARTMENT

Customer Service is a support function to sales and marketing Department and is concerned

with effectively dealing with all customer complaints

This starts from:

Ensuring Receipt, Documentation and Follow Up of all complaints to be take care of within a

specified time in order to achieve the ensure Customer (retailer) distributor and consumer

Satisfaction. The Customer complains directly through phone or pager or through the sales

team visiting them. Types of Complaints handled are related to:

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Consumer

Signage and Schemes

Supply and Service

Quality of Product

Cooling Equipment

A Customer Service executive who in turn co-ordinates with Customer Service

Representative positioned in the entire sales in Hyderabad heads customer service department

at the unit office. These Customer Service Representative handle customer service functions in

their respective territories.

MARKETING DEPARTMENT

Marketing department is mainly concerned with promoting "TOM" i.e.” Top of the Mind

Awareness for XXX as it is a consumer oriented organization. It performs the following

functions to build consumer and customer preference.

Signage: This includes putting up of glow gings, banners, wall paintings, hoardings, kiosks

etc.

Promotions: This includes ad campaigns, sales promotions, new packages and brand

launches. Events this includes sponsoring events at national, state, district and city level e.g.

sports tournaments, rock shows Musical Nights, Dance competitions, School and college

annual festivals etc.

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All these activities are carried out by the unit office with the help of guidelines issued by the

BU in the form of an annual marketing calendar and budget.

Marketing department at the Unit Office is headed by a Marketing Manager and has three

Marketing Executives. The marketing department co ordinates entire part of Hyderabad mainly

must develop areas to implements the various marketing programs

TARGET CUSTOMERS

The energy drink market is viral, thanks to youngsters, ravers, computer nerds, athletes and even

seniors who have discovered this new fast, cheap and legal way to get a buzz. People are

pounding them back like water for all sorts of reasons. For instance, athletic types down a can or

two whenever they need to improve their stamina on the courts, while older men are using them

to enhance their physical performance in the bedroom. Others want to be caught swallowing a

can because of its designer status. There is a ton of proof that energy drinks like Red Bull are big

in celebrity circles. As a result, the club-goers are paying twice as much to swill them like rock

stars in nightclubs.

who are the customer of energy drinks

Energy drinks are generally geared towards athletes, ravers, night clubbers, daredevils, shift

workers, executives, long-distance drivers and the hip-hop crowd. That means the energy drink

market is revving up everyone between the ages of 15 and 30 years old. However, on the flip

side of the coin a select niche of energy drinks is aimed at the health conscious. It seems they’ve

cornered the market!

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We all know how the younger generation flocks from new fad to new fad – especially when you

factor in a celebrity endorsement. This has many outsiders predicting that energy drinks will be

another flash in the pan, and something better and stronger will come along to grab their

attention. However, many energy drinks are actually older than the kids drinking them. In fact,

some brands have been waiting for their moment in the spotlight for over 20 years now. The

energy drink market is basking in popularity, as manufacturers race to find new ways to jolt the

system with byproducts like energy drink powders. The public is also doing its part as well. Ever

since magazines began featuring celebrities mixing their energy drinks with alcohol, alcoholic

energy drinks have carved a cool little niche for themselves in the club scene.

That’s why the marketing of these drinks is causing some concern in medical circles. If they’re

not being marketed to mix with your favorite brand of vodka, they’re being promoted to teens

and kids who aren’t sure how to read the labels properly. That’s why warnings are popping up

and people are being urged to read the labels on the cans. But really, who would think that a

drink you buy legally at the corner store, or even at a night club, would contain hazardous

ingredients?

In reality, most energy drinks contain a combination of mind and body-altering ingredients –

stuff like caffeine, taurine, guarana, ginkgo, sugar, vitamins, inositol, carnitine, ginseng and milk

thistle. These ingredients affect people differently, depending on their health and if they have any

underlying conditions. For instance, while a healthy guy might feel a slight high after drinking a

can, his buddy with high blood pressure might sweat excessively, get the shakes and feel dizzy

after the same amount. Maybe it would be okay if people were just consuming one can a day, but

when a raver consumes 5 energy drinks in a row so he can dance all night and then collapses

from dehydration, studies need to be done

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to determine the exact highs and lows these drinks produce.

For the most part, the public is fine and dandy with drinking a can of instant party, but how many

cans until a person cross the line? If you want to find out exactly what’s in your energy drink all

you need to do is read the nutritional label. You also need to make sure you don’t overdo it and

drink more than the recommended amount because, like cigarettes and alcohol, energy drinks

have been shown to be addictive.

Market of Energy Drinks in India

The food and beverage (F&B) market in India is worth $232 billion and it has experienced a

compounded annual growth rate (CAGR) of approximately 18% over the past few years. Despite

the size and growth of the industry, related sub sectors such as store-bought nonalcoholic

beverages remain underpenetrated, offering substantial growth opportunities to beverage

companies and their subsidiaries. This is due to a lack of overall consumption, a lack of routine

daily consumption, poor brand differentiation and ineffective or irrelevant product positioning

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Boston Analytics has conducted a study of over 7,900 locals across 14 different cities in India on

carbonated beverage, fruit juice and energy or sports drinks product categories. Chart 1 shows a

snapshot of the study.

Market challenges

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• Lack of consumption

Approximately 120 billion liters of nonalcoholic beverages are consumed by Indians every year,

but only 5% represent store-bought packaged beverages. Some 75% of the Indians surveyed said

they consume ‘less than one’ store-bought non-alcoholic beverage a day. They cite health

concerns and a preference for preparing their beverage according to their taste as reasons for not

consuming store-bought packaged beverages. Here are more reasons why they do not consume

many store-bought beverages:

• The three main reasons for low demand for carbonated beverages are health concerns, taste and

the lack of preferred flavors,

• Respondents said they do not like the taste of fruit drinks; the beverages are not available in

their preferred flavors and cite health concerns for low consumption, and

• Respondents find energy or sports drinks not easily available; the beverages are deemed

unaffordable and do not suit their taste.

• Lack of routine consumption

Routine consumption here is defined as a regular consumption of beverages at the same time

each day. In India, there is a lack of routine consumption for all product categories and

approximately 60% of respondents said they consume a carbonated and/or fruit drink at “no

fixed time” of the day. About 9% of the respondents said they consume energy drinks routinely.

• Lack of brand differentiation

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Brand differentiation is achieved when consumers are able to differentiate a product or a brand

from its competitors based on particular product attributes or services. Pepsi for example is

differentiated from Coca Cola because it achieved significantly higher consumer ratings for

‘taste

’.There is however little differentiation among brands in India’s carbonated beverages, fruit

drinks and sports or energy drinks sectors. In an analysis of several product attributes such as

product taste and quality, freshness, packaging, health benefits, brand image and promotions,

non-alcoholic beverage brands were found to share similar ratings. This indicates that there is no

product leader based on brand differentiation.

• Poor product positioning

Most brands in the store-bought non-alcoholic beverage market in India do not position

themselves based on attributes that respondents value. While respondents ranked “attractiveness

of packaging” as the second most important buying criteria for energy and sports drinks, none of

the brands available in the market received an average rating of above five on a scale of one to

10, with 10 being “excellent”.

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While some of these attributes may require significant long term investments in product

innovation (such as creating healthful carbonated beverages), companies could work on areas

that require a relatively less expensive and shorter term investment (such as creating an attractive

packaging).

Meaningful brand differentiation and positioning

The study found that health concerns are a significant inhibitor of consuming store-bought non-

alcoholic beverages, as brands in various product categories received poor ratings in terms of

their health benefits. The average ratings for health benefits for each brand were lower than those

for product attributes such as taste, packaging and availability.

If a brand can differentiate itself from the others in terms of its perceived health benefits, it

would strengthen its existing consumer base and attract new ones. One company for example has

announced a soft drink to address anemia amongst the rural Indian females.

Customer segmentation

Beverage companies need to categorize the diverse Indian consumer market and identify viable

growth segments. The highest penetration of store-bought non-alcoholic beverages can be found

in the larger metropolitan areas such as Delhi, Mumbai and Kolkata, where there is a high

frequency of consumption. Routine consumption is also found to be the highest in these cities.

36

The frequency of consumption across age and annual household income groups is reported to be

the highest for the group between 18 and 25 years old and those in the income bracket of 10.1-20

Lakhs INR ($25,000-$50,000). Consumption is generally seen to directly increase with income

(with the exception of the highest income group) and decrease with age.

Routes to market

About 90% of trade in India is considered “traditional” or managed via independent mom-and-

pop shops or grocers. Energy or sports drinks manufacturers in particular need to know how to

navigate the fragmented traditional trade/retail routes in the country in order to enable greater

consumer access to their products.

Competitor analysis

Red Bull ---------------------------------------------------------- 50%

Hansen Natural--------------------------------------------------- 18%

Coca- Cola (Rock Star, Full Throttle)------------------------- 17%

Pepsi (Amp, No Fear)------------------------------------------- 10%

Others ------------------------------------------------------------ 5%

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Industry Profile

Energy drinks are beverages which contain legal stimulants, vitamins, and minerals, including

caffeine, guarana, and taurine, various forms of ginseng, maltodextrin, carnitine, creatine, and

ginkgo biloba. Some may contain high levels of sugar or glucose.

It may well have come from Scotland in the form of Irn-Bru, first produced in the form of "Iron

Brew" in 1901. In Japan, the energy drink phenomenon dates at least as far back as the early

1960s, with the release of the Lipovitan. Most such products in Japan bear little resemblance to

soft drinks, and are sold instead in small brown glass medicine bottles or cans styled to resemble

such containers. These "genki drinks", which are also produced in South Korea, are marketed

38

primarily to the salaryman set, to help them work long hours, or to stay awake on the late

commute home.

In UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for "aiding the

recovery;" in the early 1980s, it was promoted as an energy drink for "replenishing lost energy."

In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US beverage

company.

In Europe, energy drinks were pioneered by Dietrich Mateschitz, an Austrian entrepreneur who

developed Red Bull based on the Thai drink Krating Daeng, itself based on Lipovitan. Red Bull

was introduced to the US in 1997 and is the dominant brand there, with a market share of

approximately 47%.

By the year 2001, the US energy drink market had grown to nearly 8 million per year in retail

sales. Over the last 5 years, it grew an average of over 50% per year, totaling over $3 billion in

2005. Diet energy drinks are growing at nearly twice that rate within the category, as are 16-

ounce sized energy drinks. It is estimated to hit nearly 4 billion in 2006, and both Goldman

Sachs and Mintel predict that the energy drink market will hit $10 billion by 2010. Major players

such as Pepsi, Coca-Cola, Molson, and Labatt have tried to match the small companies'

innovative and different approach, with marginal success.

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Energy drinks have also become popular as mixers. Many malt beverages such as Sparks, 3sum

malt beverage and Max capitalize on the effects of caffeine while drinking alcohol.

Energy drink industry in India is growing with very convincing speed. It can be said that the

industry was established by Red Bull. It entered the Indian market sometimes back in the year

2003 and since then the energy drink market took its way.

Energy drink market was of Rs.100 Cr. till 2005 but it gained acceleration from then on and the

energy drink market in India is growing rapidly above 50%. It estimated that the metros are

populated by young, trend setting adults which are also the largest energy drink consuming

markets in India. Today it has a market potential of Rs.500 Cr. + in India.

There are many companies who entered into this energy drink segment after Red Bull. Some of

them are Power Horse, Burn (Coca Cola), Cloud 9, SJ XXX (JMJ – launched this year). Among

these brands Red Bull holds the market share of about 78%, followed by Power Horse with 13%

and Cloud 9 with 7% and rest by other brands including Burn & SJ XXX. A new product is

launched in this segment by PepsiCo with the name SoBe.

The industry expects that the market will see a capital growth of Rs.500 Cr. i.e. the

energy drink market will be of Rs.1000 Cr. by the end of 2010.

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Organizational Structure

41

Literature Review

42

Doing training was really an opportunity before me when I could convert my theoretical

knowledge into practical and of real world type. Fortunately, the company I got is a true

follower of the various principles of management and also is the FMCG industry. The

working environment that I was being provided was extraordinary and helped me a lot in

delivering my work properly and with full potency of mine. Any company can survive

through the stiff competition of the market if its has brand loyal customer. Today many major

companies in the market has brand loyal customers and they adopt many strategies to maintain

and improve there branded equity. Without creating a proper Brand awareness they cannot build

brand image.

● Product availability where and when customers want them.

● Involves all activities from raw materials to finished products

Basic Channels of Distribution

Distribution (Place) Strategies

Distribution Objective

Minimize total distribution costs for a given service output

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Determine the target segments and the best channels for each segment

Objectives may vary with product characteristics

e.g. perishables, bulky products, non-standard items, products requiring installation &

maintenance

DISTRIBUTORS

Distributors are appointed agents of the company who make orders to the company by paying

in advance through drafts, stock the products in their godowns and supply them to outlets

through their fleet of delivery was and a team of salesmen and drivers. They are allowed to sell

to company's product to the retailers in a specified area. The company divides this area into

routes. Each route is covered by one unit i.e. one de livery van, one salesman one driver, one

helper etc. These units and godown are their main investment. Distributors have to invest in

empty bottles and crates too, so that they can maintain a specified quantity of reserve stock and

facilitate the quick rotation of glass crates.

The company evaluates its distributors at the end of the year and makes plans for the next

year. Company fixes the targets for each distributor according to market size, last year’s sales,

potential growth assumption based on deposit of empties and installation of coolers at outlets.

Distributors are awarded with a fair margin for their service. This margin could be increased for

the sale above the targets, company offers are met with distributors before appointing them. If

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distributor does not agree with the conditions of these agreement company may reduce the area

of distributor or may even terminate the relationship.

A promotion plan outlines the promotional tools or tactics you plan to use to accomplish your

marketing objectives. To the new or inexperienced marketer, the promotion plan might be

mistaken as the entire marketing plan because it outlines where the majority of the marketing

budget will be spent. It is, however, just one component of the marketing plan - there are

additional strategy and planning components described in a marketing plan.

You might choose to include the following components in your promotion plan:

Description (or listing) of the promotional tactics you plan to use.

Projected costs for the year.

Explanation of how your promotion tactics will support your marketing objectives.

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Manufacturers/products

Agents/brokers

Wholesalers/distributors

RetailersRetailers

Consumers and organizational end users

PlacePlace

Description of promotional adjustments for cyclical businesses, if yours is indeed

cyclical.

Laying the Groundwork for Effective Promotional Tactics

When you're deciding upon the best promotional strategy for reaching your target market, you

need to:

Do research

Keep your customer in mind

Be creative

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CHAPTER 4

DATA ANALYSIS

DATA ANALYSIS

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Project

“Analysis of Brand Promotion of New Product of GT&T Hyderabad ”

Description

The trainee was required to find out those areas and retailers which are either not selling know

about XXX energy drink or selling in very less or big amount. Region for the project was

Hyderabad region. This project was aimed at finding out the retailers, which were known about

product and selling competitor brands. It was also aimed at knowing the promotion behavior of

outlets in the region, their requirements from company and willingness to sell XXX energy

drink .

Purpose

Main purpose for this project was to make management make awareness and promote the

product and also know the further need of promotion and promotion tolls in their region which

were not selling XXX. It was also to plan their new course of action keeping in mind the

current market position of its competitor as well as its own. This was viewing the market share

of Red Bull in comparison of XXX. This report gives information to management about the

outlets uncovered by Pepsi and their requirements to the company.

The marketing of its brand is still showing slow growth and not able to reach in every

region and promote and create an image in retailer mind to sell this product . Overall the

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market of Red bull brand huge in comparison with XXX. There are very only few outlets which

are selling XXX Energy drink.

DETAILS OF THE SURVEY

The trainee was required to visit all the outlets in the specified area of his distributor,

which was told to us by the CE concerned. We were required to be given the route map of the

specified area. The area was to thoroughly survey without leaving any of the outlets.

Initially the survey was to start with the local retailers of the sales man of area. Two days

had to be devoted with the route vehicle and noting down the name of the outlets and other

particulars where ever their sales man visited the outlets. It was to get familiarized with the

area. The next couple of days had to be surveyed individually in the same area trying to find

out those outlets in that area which was not attended by sales man or attended. This was how

the whole survey was to be conducted.

The main aim of this survey was to find out those outlets which are either new or remain

unnoticed/unattended by sales man and also to get , are retailer know XXX and intended to

buy or not which are the places where XXX energy drinks were not reaching asking from

retailers its reason.

For XXX these outlets are going to be the main focus of the survey. It was to know the

exact need of promotion for xxx energy and getting about retailer perception and demand of

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XXX energy drinks by customer and its selling in that particular area . The trainee was required

to collect the following information from each outlet he surveyed.

Name of the outlets

Address of the outlets

Status of the outlet

Cooling Equipment

Sale of the outlet

Brands on sale

Requirement of outlet

Willingness to sale XXX energy drink.

Reason for anti XXX

Name of the outlets:

The trainee was to note down the name of the outlet visited

Address of the outlet:

Complete address of the outlets was to be noted by the trainee

Sale of the outlet

Sale of the outlet was to be noted on per day basis.

Brands on sale

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Check out the brands available at the outlet.

Requirement of outlets

Ask what the shopkeeper wants from the Company.

Willingness to sale XXX energy drink

To know if shopkeeper want to sell XXX or not.

Reason for anti XXX energy drink

To know why shopkeeper is not selling/selling less XXX.

Status of the outlet

The status of the outlet was to be enquired of from the outlet owner and also by

observation. Status here meant the nature of the outlet.

This was to know whether the outlet sold only XXX, Red bull,cloud9 or all of these. It

will help to know the nature of market in that area.

Comparative Analysis Of Retailer

Question 1. Stock of product to retailer.

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Red bull 240 38%

Cloud 9 80 13%

XXX 30 5%

Red bull and cloud9 170 27%

All product 25 4%

No any 90 14%

Fig no- 1

Interpretation – According to my survey in Hyderabad Red Bull is dominant player with 52 %

and cloud 9 doing well and XXX still trying to capture market

Question 2. Product Awareness of XXX energy drinks.

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Yes 70 14%

NO 430 86%

Total 500 100%

Fig no- 2

Interpretation - According to survey it can easily nullify that XXX lagging behind in

promotion and awareness, only few percent people know about XXX. So its need strong

promotion tools and strategy to raise brand awareness.

Question 3. Retailer interested to buy XXX energy drink.

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Yes 90 18%

No 220 44%

Can’t say 190 38%

Total retailer 500 100%

Fig no-3

Interpretation – On the basis of survey of retailer we can analyze that company should be opt

new strategy to create demand by consumer and also promote the product in various which can

create an image in retailer and as well as customer

Question 4. Satisfaction by product Service.

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Yes 75 15%

No 90 18%

Can’t say 335 76%

Fig no- 4

Interpretation - it difficult to get the data of service which given by XXX, because still very

few retailer are selling this drink, but we have found that company is failure to provide better

services in compare of its competitor. Delivery and distribution system are not affective till now.

Question 5. Daily sale of XXX energy drink in particular outlet.

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Average 35 64%

Good 15 27%

Very good 05 9%

Fig no- 5

Interpretation – XXX energy drinks launch in Hyderabad in February 2010, so yet now

company showing less interest to promote the product in local region because of this there is no

awareness of XXX energy drinks to customer and they prefer loyal brand instead try a new

brand. So as a result daily sale of retail outlet in Hyderabad region is appreciable.

QUESTION 6.- Reason of being anti XXX energy drink.

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No Brand Awareness of XXX 192 38%

Tie up with Red Bull /red bull approached first 125 25%

XXX service not suits 78 16%

Schemes are not as good as Red Bull 105 21%

TOTAL 500 100%

Fig no- 6

Interpretation – Due to recent launch in market, XXX energy drink is not able to create

awareness , making approach , provide good service and scheme as like as its competitor Red

Bull which is dominant player of energy drinks from last six years , and crate a good market

value and image in the mind of customer and seller.

Question 7. Price affects the sale off XXX energy drink.

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Yes 69 17%

No 19 5%

Can’t say 322 78%

Fig no- 7

Interpretation – The price of XXX energy drinks are same as other energy drinks such as Red

Bull, cloud9 and rock, but even then more of Retailer can’t say anything about this, because

either they don’t sell the product or they are unaware about price affect.so we can say that price

are not as much as affecting its selling because other energy drink have same price.

Question 8. Source of information to get about XXX energy drink.

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Through sales man 288 70%

Advertisements 23 5%

Through another retailer 27 7%

Through customer 72 18%

Total 410 100%

Fig no - 8

Interpretation - If we look the graph carefully then we can easily say the promotion of XXX are

not affective and tools which are using by company is unable to create awareness of product and

lot of retailer get about this product after visiting the shop by sales man. And very few get about

product by other promotional tools and strategy.

Analysis of Customer Awareness and Perception

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From the analysis of the data collected we get the mixed reaction in terms of customer perception

and awareness of XXX energy drink in Hyderabad in some areas the people know very well

about this product but in some areas people haven’t heard this product name. The awareness

level of red bull is very strong and capture more than 90% of total sell in Hyderabad and other

are only 10%. In Energy drink brand XXX is new so still struggling to capture market and create

revenue.

There are some analyses made during the process:

Energy drinks business behavior is govern by brand loyalty so the availability of the right

brand at right place at right time is the key for winning consumer in Energy drink

business only some of the customers are brand preference.

The most important satisfying observation is that other than Red Bull such other energy

drinks companies such as monster, cloud9, and rock are still struggling as like XXX in

spite of having a long time to introduce in market of India and Hyderabad.

The price of such flavor of Cloud9 energy drink are more than the price of XXX energy

drinks both flavor.

If we observe carefully by data so we can say that for consumer only Red bull is loyal

Brand.

The energy drinks mainly consume by people if age 15- 30, and this kind of consumer

mostly prefer Brand to create an image among society and friend and also they prefer

brand which have a great celebrity. So XXX is on way to create brand image by choosing

brand ambassador the great actor and celebrity of India Shahrukh Khan.

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Pub, night club, disco playing more important role to increase sells of product because

mainly youth purchase energy drink for night club to drink it with wine and energy drinks

are more costly than soft drink so mainly the youth who belong to high class society use

to drink this.

Very few percent of youth read magazine and other mass of media from there they get

about XXX so the idea opt by XXX to introduce and launch the product with full of

glamour and rock and organizing event in disco and club helping to increase awareness in

mind of such customer .

After having a great expense on launching parties still its promotion strategy and tools are

not able to create awareness in target customer because of this most of customer haven’t

heard name of product .

The regular customer of drinking energy drinks is very few in Hyderabad only the people

who belong to good class or sports person use to drink energy drinks regularly except

drink most of customer drink occasionally or very lass in a week or month .

Suggestion

If proper attention is given then many of the shops in these areas have the capacity & will to

become the exclusive XXX outlets. In my View those shops which have a good regular sale of

5 to 10 cases per day should be targeted to convert them in exclusive outlets.

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CHAPTER 5

FINDINGS AND

RECOMMMANDATION

FINDINGS

Survey of Anti XXX outlets shows that there are considerable no. of outlets which are not

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selling XXX.

There are various reasons of anti XXX energy drinks behavior of retailers as:-

Large no. of retailers wants coolers.

Company does not provide schemes properly.

Company does not provide discount properly.

Some retailers are not satisfied with service of XXX so they are selling other energy

drink.

XXX is not available so retailer suffers with shortage of stock.

Retailers need display & schemes so that they can increase the sale of XXX.

Retailers need the sign boards to attract customers.

The distribution is not so proper or we can say not satisfactory.

Many retailers have tie up with Red Bull but GT&T company don’t approach them at

Right time.

In many area Red Bull enjoying monopoly and somewhere XXX.

Retailers complain about lower margin on cold drinks due to rising electricity bills and other

expenses that are incurred.

Route agents and salesman do not cover their routes properly.

Retailers complaints about shortages during summer season and complained that route

agents and salesman do not visit their outlets during the summer season.

Some Outlets owners are very angry with the company’s performance

Our product start off late as result other brand reach the retailers &capture the markets

RECOMMENDATION

CE needs to personally contact with retailers who help in knowing the activities of the

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distributors as well as help in Promoting the business.

It should focus its attention to the untapped market where it can considerably increase its

market share.

Distributors and sales men should from time to time take the pain of finding out the

requirement of retailers and the problem they are facing.

There should attention be paid to the consumer Perception .

XXX energy should work hard more to increase its market share in some areas like

secundrabad station Road and most develop areas of Hyderabad.

Advertisement and publicity in the untapped market by way of signage, racks, paintings,

banners, hoarding etc. should be expanded.

Margin to retailers should be taken care off and may be possible ought to be increased

without increasing the overall price.

Distributors should check the working of route agents or salesman on regular basis.

Shortages of the freeze and other cooling equipment during the summer season if

possible should be reduced. It communicates bad message among the retailers as well as

the consumers.

Merchandise should be installed against the sale performance of the outlets as well as the

need of the market.

Survey by the top officials should be made in the untapped areas to access the real

situation and should be done as a surprise visit instead of planned visit.

Conclusion

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Red Bull is superior brand than XXX that’s why company need to promote it product in entire

Hyderabad and also in India. Except Mumbai the brand promotion lagging behind in other state

of India such as Hyderabad. Delhi, Kolkata. The popularity of Red Bull is far better than new

launch XXX. Still it’s difficult to predicate product future.

Conclusion has been drawn:-

Company should be opt new strategy to create brand awareness.

It must be advertise through Board, Hoardings and Banner in specific areas of Hyderabad.

Company should be make good relation with retailer by providing them good services,

margin and sales tie-up.

To capture target Market Company should be opt new promotional tools in compare of its

competitor.

Still some sales men are doing good job but company needs more potential sales to reach

every retailers.

Questionnaire

1. How old you are ?

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a. 15- 20 years

b. 20- 25 years

c. 25- 35 years

d. 35- 50 years

2. Do you drink energy drink ?

a. Yes

b. No

3. Do you know XXX energy drink?

a. Yes

b. No

4. How you did get about XXX energy drink?

a. Magazine

b. Board & hoarding

c. News paper

d. Friends

e. Any others _____________

5. Which of these is your favorite energy drinks?

a. XXX

b. Red Bull

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c. Cloud 9

d. Monster

e. Any other ______________

6. How often do you drink energy drinks?

a. More than once a week

b. Once a week

c. 1-3 times in a week

d. Less than once a week

e. Never

7. Do you feel any change after drinking energy drink?

a. Yes

b. No

8. Where do you buy energy drink?

a. Local shops

b. Retail shops

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c. Night clubs

d. Wine shops

e. Any other places ____________

9. What makes you do try a new energy drinks?

a. Brand

b. Price

c. Advertising

d. Celebrities

e. Others __________

10. How satisfied are you with your energy drink of choice?

a. Very satisfied

b. Satisfied

c. Unsatisfied

d. Very unsatisfied

Bibliography

Books

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Philip Kotler (2009), PRINCIPLES OF MARKETING, 13th Edition, Pearson

Dennis Adcock, Ray Brad field (1995) MARKETING PRINCIPLES AND

PRACTICES 2nd Edition Pitman Publishing

Lamb, Hair, Mc Daniel ((2004), MARKETING 7th Edition,Thomson, South

Western

E Jerome Mc Carthy (1987),BASIC MARKETING-A MANAGERIAL

APPROACH, Irwin Publication

Mike Worsaw, D Berkeley (1995) 1st Edition,MARKETING IN ANAGEMENT,

Pitman Publishing

Subhash C Jain (2007) 7th Edition,BASIC MARKETING ,Tata Mcgrill

Website

www.Energydrink.com

www.xxxenergydrink.com

www.12manage.com

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