By Nikit Chaudhary (pgp28262) Shashank Mishra (pgp28268)

Target group will be different for Aroma Gold and Aroma instant Attributes of the target group for Aroma Gold and Aroma Instant are given below

Attributes

Aroma Gold

Aroma Instant

Income
Age

Upper middle, Upper

20 34 , 34 - 49

Lower middle and middle

20 34 , 34 - 49 Households + Local/roadside beverage joints

Consumptio Households + Premium beverage joints n

Occasion
User status Physiograp hic

Morning/evening drink + Social gathering

Potential users, first time users + regular coffenia classic users Innovators, experiencers Target group having above attributes likes upscale and premium products. It also consists of youths who like to experiment and change

Morning/evening drink + Social gathering

Potential users, first time users + regular coffiena instant users Strivers Target group having above attributes consists of cost conscious customers who would like to upgrade to coffee

 Youths are basically strivers. They are trendy and fun loving people

having high aspirational quotient. Even though they have low disposable income they are eager to experience new things and have higher convincing power about their likings

Catching youth young would make them brand loyal consumers future

 Coffee has only 13% of share of throat among all the beverages, so there

is huge scope for market development for both the players hence we will be using blue ocean strategy and will not pursue an aggressive frontal attack and innovative media campaigning

Focus will be on new potential customers through attractive packaging Coffee is a very strong substitute of tea. Since it offers greater value

proposition it would be easier to get tea drinkers as first time customers and future customers rather than non tea drinkers who might be averse to caffeine

 We would like the newspaper to take a balanced approach to incorporate

innovative ads as well as editorial support

Innovative ads and Advertorial support for coffee would help us to attract the youth

and other first time potential users who are strivers and innovators

Editorial support would help us to attract the mature segment who is already

buying coffee from other competitors like SPOC but would change the brand preference if made aware about the brand

Calculation for Question 4 and 5

Calculation Involved in Increasing the Market Share by 5%

Present Population of Delhi(Source: Wikipedia.org) 16.75 Million

Exposure

90% ( 0.9 probability) 60% ( .54 probability) 33% ( .18 probability) 70% (.13 probability)

Average Annual National Consumption of Coffee in India( www.ibitimes.com) 85 gram/person Annual Consumption in Delhi Share of SPOC ( 12%) Increased consumption required for 5% increase in Market share 1423.75 Million Grams 170.85 Million Grams 8.5425 Million Grams

Processing

Communication effects and brand positioning Target audience action/ decision to purchase

Hence on an Average nu. Of new customers to be added to increase 5% market share Hence number of new customers to be exposed to the advertising will be

8.5425 Million Grams/85= 0.1005mn New Customers

=0.1005/0.13=0.773 mn

Market share

Profit

So to increase market share by 5% we have to acquire 0.1005 mn customers for which we have to target 0.773 mn customers

HT City rate card w.e.f. Feb 2012

Advertising through HT city

Why HT city? Delhi centric and youth oriented Assuming print media budget to be Rs.10 million This would include innovative ads + Advertorial support on coffee drinking+ other solutions to make people switch to Aroma/consume coffee more

Cost calculation for print Ads in HT city Size of one Advertisement(15cm*15cm) 225sq.cm

Cost of one AD (Base rate = 1500 + page 3 premium= 600)

1500+225*6 00=Rs.1,36,0 00

Total number of Ads given 74 per year Hence around 6 Ads (15cm *15cm) per month will be given in HT city

We will invest Rs.3 million for radio and online campaigning

Target Radio fever 104 for Delhi to promote Aroma targeting mostly housewives and younger audience. In the online media we will be targeting Shine.com and Htcampus.com to attract young crowd

Remaining Rs.7 million will be kept for Events

Considering the fact that coffee consumption increases during winters we will be focusing mainly events held during Q3 and Q4 So we will be organizing events from the month of October to February