SUBMITTED BY K.N.JAKANTHAN INTRODUCTION aDewrell India is a famous soft drink manufacturer, manufactures ± Toff (orange drink) & Quench (lemon drink).
a Indian cola market is now in hands of two big
American companies ± Dappy & Bart.
a Viren mitta ± CEO of Dewrell India.
a Arun Kurien ± Old CEO of Dewrell India.
a Vishvesh vaidya ± Marketing manager of DI
KEY ISSUES a Dappy and Bart were running Orange and Lemon segment also. a Because of that Kurein was doubtful in Dewrell¶s orange and lemon segment. a Kurien desired to enter into COLA segment, where Dappy and Bart in peak to beat them in soft drink market. a Now, mitta starts Perron cola and there is some other reasons to enter into Cola segment. Dewrell¶s reasons going for COLA a Dewrell should compete with Dappy and Bart because they are obstructing Dewrell in soft drink manufacturing. a Since they are in peak in cola segment, Dewrell has to pull down them, so Dewrell choosed the strategy to enter into cola segment. a Cola segment is moreover a youth segment, if Dewrell covers this youth segment it automatically raise their brand loyalty in soft drink market. a Cola segment occupies 50% of soft drink market, so to complete the companies range, Dewrell likes to enter into cola segment. a Cola segment also increases bottlers and distributors volume, through retail shops a In international portfolio (parent company in Greece) they are using a cola brand ± Perron. DEWRELL¶S ACTION OVER COLA SEGMENT a Each and every segment products has three sales attributes : Product, image, price differentiations. a Product differentiation is not easy - create new. a Image differentiation is also cost so high, Dewrell cant afford that. a Price differentiation surely work well in Indian market, so Dewrell launched Rs.6 ± 300ml Perron cola ± 25 % cheap than rival (where rival products are Rs.8 ± 300ml ) a Vaidya wants visibility and awareness, since all medium are so expensive, he choose hoading medium (Cheapest medium) ± hired 150 hoading for long term. Cont., a At the same time, Mitta don¶t want dewrell to lose its premium image, so they put dewrell¶s name in small letter in hoarding and then they removed the name completely. a Dewrell introduced parron as it is exclusively made for Indian economy market. a To tackle the Dappy and Bart consumer, Dewrell has to pull down rivals brand image ± so it promotes as ³ A cola is a cola is a cola´. a Dewrell exposed parron cola as fun brand and by above methods it encourage the consumer to rebel against its rivals Defects a Both Dappy and Bart are leading manufacturers in cola segment, so we have observe their growth and image. a Price differentiation can be easily tackled by them by using a strategy ± Rs.6 ± 200 ml (To cover the non loyal consumers). a It is not easy to push their images down by insisting ³don¶t take image seriously´ but they always says ³ Take image seriously´. a Media labelled perron as unoriginal, copycat. a All Dappy and Bart drinkers feel them as Americans but dewrells Low price itself expose it as ³I am not branded, trendy and I am not westernised´. Cont., a Moreover youth segment never mind of spending Rs.2 or 3 extra for their brand and feel. a Image of Dappy and Bart are made stronger by ambassadors like Shahruk khan, Sachin Tendulkar. Its not easy to demolish their image. a Consumer don¶t want to have cheaper cola. This cause perron cola a discernible slowdown. Retailer¶s voice a Dewrell¶s image has gained in leaps and bounds on the strength of its orange drink, Toff. a Cola segment is main in soft drink market, perron cola will surely slowdown the volume of Dappy and Bart products and bottlers. a Retailers are forced to distribute orange and lemon products of Dappy and Bart Cola Manufacturers. a Even though Dappy and Bart priced Rs.8,if it served chilled at Rs.9 ± 10 to those who are in image feel, they don¶t mind it, so it really expose the difference between Rs.6 and 9 Cont., a Vidya wooed retailers because they enthusiastically stocked Perron. a With the image of Toff and quincer, retailer sells Dewrell¶s cola product at Rs.8,it will really increase the Margin value, it will lead to more distribution of perron. Consumer Behaviour a In our economic India, consumer eye will be always on Price, so this Price differentiation will really works.
a Even though the American company lowers their
price by 25% it automatically lowers its quantity by 33%.(Rs.6 ± 200ml)
a If Perron is sold for Rs.8(chilled),consumer will
change to Parron because for Rs.8 they can only feel warm American feel. Ex., Tamilnadu sales and marketing corporation (state Official liquor suppliers - India) Cont., a Indians are fun lovers, they surely loves to try to be like a American in Indian economy, so they surly accept Parron. a Brand loyalty stands until the product retains its image. For Rivals Image is made by big celebrities, if they once advertise Perron, consumer will change to perron. a Consumers are aware of toff and quench taste and brand, so when they come to know perron a product from Dewrell they really accept it and vice versa. a Youth always like to taste new brands. conclusion a The main objective of Dewrell to launch cola is not of market leadership, they just want to have more bottlers and retailers to get volumes and to get a complete portfolio. a At the same time, it has to satisfy the retailer (by allowing to sell at Rs.8),customers(quality at low price). a General liquidity crisis also affects soft drink industry too, because of that there is 35-40 % increase in price. At this time this Perron will really worthy. a A cola is a cola is cola will really works. a Marketers are not black, orange, white they are adults, teenagers or children. Toff will shines because of this perron ± cola strategy. m