Group10:

Amitabh Dash
Gourav Mundhra
Manjul Vyas
Nitish Gupta
Payel Sarkar
Sanchit Agarwal
Vishnu Chander
 Industry Overview

Industry Highlights:
• Global Soft Drink Industry – $310Billion(2015 Expected)
• Indian Beverage Industry – $230 Million of the $65Billion Food
Industry
• Increase in aerated drinks: 3 to 14 servings/person
• Current Growth Rate: 15% & Expected Rate: 16-17%
• Coke & PepsiCo covers 90% of the market.
• Juices will surpass carbonate market by 2016
 Indian Market Analysis
PESTLE
• Beverages account for $230 million in the $65 billion food processing
industry in India. In terms of volume, total soft drink (carbonated
beverages and juices) market is estimated at 284 million crates a year
($1billion)
• The market is predominantly urban (75%) and 25% contribution
comes from rural areas
• In the latter part of the year 2000, due to the economic slowdown, there
had been a negative impact on the food and beverage industry. The
beverage sector witnessed a decline of 73.2% in terms of transaction value
and 37% decline in the number of transactions.
• The consumption of aerated beverages in India has increased from a
meager three servings per person, per annum in 1993 to 14
servings in 2013.  The non-alcoholic beverage segment can broadly be
classified under three categories: carbonated drinks, fruit drinks and
functional drinks.
Porter’s 5 Force Analysis

New Entrant (High)

• High market
potential
•Increasing
competition

Buyers (Medium)
Existing Rivalry
•Retailers and Supplier (High)
Real Juice,
departmental •Only one supplier
Tropicana,
stores
Minute Maid,
•Corporate, airlines
Maaza

Substitution (High)
•Other aerated
beverages
•Unorganised
sector juices
Industry Forecasts

Forecast Sales of Soft Drinks by Category: Value 2013-

2018 Source: Euromonitor International

Future looks good for the brand as well as the

product category
Parent Company Hector Beverages Pvt. Ltd.

Category Beverages

Sector Food product

Tagline/Slogan Drinks and memories

USP Real Fruit Extract, traditional flavors, childhood

memories
STP
Segment Beverage market

Target Group Youth and Middle age(30-40) of all income

groups

Positioning Brand synonymous with Indian old familiar

taste
Marketing mix of Paperboat
Product Price
•Paper Boat created a pleasant
experience with its unique combination
of ‘Drinks and Memories’
•Most ingredients are naturally available
spices, thus differentiating itself as a
niche
• Salty alternatives reaches out to
diabetic capital of the world
•Keeps taste closer to mom’s recipe •Prices premium as no competitor in
terms of the flavors offered

Place
•Targeted retail outlets by offering 5%
more profit margin to the retailers as
compared to the competitors
•Collaborated with Indigo Airlines to sell
products on board
•Targeted school canteens
Promotion
•Relatively subdued because of the
unexpected sales since its inception
•Advertises in newspapers, digital
marketing, social media, and most
importantly by positive word of mouth
communication
•Its efforts of posting images about
childhood memories on FB pages are in
sync with their tagline
Drinks and memories
 SWOT Analysis
Strengths •Attractive and unique packaging
•Competitive price points
•Available in variety of Indian traditional flavors
•Good distribution and availability at retail stores

Weakness •Limited brand recall and brand awareness among

customers
•Less retail shelf space compared to leading players
•Weak brand backing of parent brand
Opportunities •Tie ups
•New range of winter drinks
•Gift packs
Threats •Direct competition
•Cheaper variants possible
Paperboat Analysis
Hector’s Paper Boat come in 7 variants such as Aamras (45%
mango pulp), Kokum (20% kokum), Jaljeera (8%
lime), Jamun (10% Jamun), Aampanna, Imli and Golgappe.
Major competitor for this can be Coca Cola’s Minute Maid having 6
variants such as Pulpy orange (11.8% Orange), Nimbu fresh (5.7%
of lime), Guava (15.5% guava), Apple(17% apple), Mango(11%
mango) and Mixed fruit {Mango Pulp (10.7%), Guava Pulp (2.9%),
Banana Puree (2.9%), Papaya Puree (0.3%)}.
Hector’s Paper Boat has comparative advantage over other brands
as Hector has given drinks traditional names which are catchy and
attracting the consumer and also fruit content of Paper Boat drinks
are higher than its competitor brands.
Paperboat
variant
analysis
Paperboat price
analysis

It clearly indicates that Paper Boat is amongst the highest priced

beverage as compared to its close competitors in the 200 – 300
ml range and the second highest after Minute Maid in terms of
the price per ml.
 Competitor Analysis

• Considering entire beverage market including

juices and water, Coke leads the market with
close to 56% market share, followed by Pepsi
with approx 34% market share. Rest 10%
includes Parle Agro, Dabur etc
• When only carbonated soft drinks are
considered, Coke again leads with 55% share
and Pepsi 45%
• Sprite replaced Pepsi as the #2 brand
4 years ago.
• Mountain Dew is the country’s fastest
growing aerated drink but declined to
divulge market share
• Coca-Cola emerges as overall market leader
without considering the bottled water sale. It is
then followed by PepsiCo
• Dabur Real is the market leader in juice
segment which is followed by Tropicana
from PepsiCo
Consumer behaviour

•It is a well known fact that Difference from other

we carry a limbic imprint of
certain preferences in our
brain
•Paper boat is a result of an
amazing insight that urban
youth crave for something
that is simple, delightful
and non-transactional
companies:
•Independent of competition
•Purely based on human
insights and had no references
in the market
•A Blue Ocean Strategy
Single aspect used in Paper Boat
design
Desire for Simplicity

•The success of this brand

lies in the combination of
catchy name, very
differentiated
packaging and the
superb recipes
Consumer behaviour analysis-
primary research results
What category of beverages do you prefer?
Out of 75 respondents surveyed maximum prefer aerated beverages with a close
second preference to fruit drinks and milk based drinks. However consumer
behaviour is changing and fruit based drinks show positive growth

What is the average ticket price you are willing to consume for your
beverage?
63 Out 75 respondents prefer the price range of 0-20 Rs as they prefer small
SKUs and one time consumption beverages, Paperboat is however priced on the
higher side, the premium due to the competitive advantage

How often do you consume your preferred beverage?

A very close call between “once daily”, “twice a week” and “doesn’t matter its an
impulsive purchase”

Do you like the novel idea of Indianising the beverage flavours?

About 90% respondents said yes
Consumer behaviour analysis-
primary research results
What is the preference between the following in terms of flavours for
your drink?
A majority of respondents prefer Indian and ethnic flavours and show greater
acceptance of the same

What is favourite Paperboat flavour?

Popular flavours are Aam panna, Jamun, Jaljeera and chilled Rasam

How much importance do you give to packaging, look and feel of the
drink ?

Around 70% of the respondents give importance to the

packaging, look and feel of the drink where Paperboat stands a
clear winner

What according to you is the most striking feature of the

product?
A very close call between the Indian traditional feel, the
flavours and the distinctive packaging
 Strategies and
Recommendations
• Penetration of Paperboat is very limited: With limited visibility, it has
a direct impact on the sales of the Paperboat. It must make sure that it is
present in all retail outlets where maximum footfall happens. Generally
there are long queues at the billing counter in big retail outlets e.g. Big
Bazaar. It would also be wise to run discounts and offers for the first few
weeks of existence, in order to draw in more potential customers
• In bars and pubs, 30-40% people don’t take hard drinks. Instead look for
drinks which add to their taste. This is one of the area which is untapped
by many beverage players and there is a huge demand in these
channels
• Owing to the price of the drink and affordability as compared to other
drinks in the same category, Paperboat needs to tie up with schools
where majority of the drinkers are children. They are going to be the
potential buyers and thus it is important to encash this opportunity at its
early stage
• In order to increase the visibility of Paperboat, company should give
incentives to shop owners to keep the stock and keep it at a position
where display of the product is proper. Retail Schemes like certain number
of bottles free per case, display schemes, target schemes, installation of
refrigeration facilities
 Strategies and
Recommendations
• One of the problems is that most of the consumption of the drink
happens during summers. All the variants i.e. Aamras, Aam panna,
Jamun kala khatta, Kokum, Golgappe ka paani and Imli are all summer
coolers. Paperboat should try to introduce some winter drinks also. This
would not only keep up the sales during winters but also keep the brand
visible and connected throughout the year.
• The promotion strategy could consist of advertisements which
relate Paperboat with taste and healthy drink. An emphasis on the
healthier aspects over things like coffee must be stressed in an early
advertisement campaign. Associating Paperboat with a tagline will help in
the increasing the percentage of recall for the brand.
• In order to maintain exclusivity, Paperboat should also come in
gift packs where all the variants are packed together. Most of the
people nowadays prefer giving some gifts whenever they visit friends. This
will help in circulating all the flavors and urge the people to try out all the
flavors.
 References

• Business Standard, March 2015, ‘Paper Boat drinks makes Hector

Beverages on Expansion Spree, http://www.business-
standard.com/article/companies/paper-boat-drinks-maker-hector-
beverages-on-expansion-spree-115031101078_1.html
• Business Standard, July 2015, ‘How Hector is riding in Paper Boat’,
http://www.business-standard.com/article/companies/how-hector-
is-riding-high-on-Paper Boat-115072101271_1.html.
• Livemint, July 06, 2015, ‘Paper Boat maker valued at over $100
million’,
http://www.livemint.com/Companies/hxB2kObnjQthGcgEBZEOCM/F
undraising-values-Paper-Boat-maker-at-100-mn.html
• Yin, Robert K. 2003. Case study research: design and methods,
Thousands Oak, CA, USA: Sage Publications (Third Edition)
• Kotler, Philip., and Keller, Kevin Lane. 2016. Marketing
Management, Pearson India (Fifteenth Edition)
Thank You