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 Indiahas 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.

Porters 5 Force Analysis

New Entrant (High)
High market
potential
Increasing
competition

Buyers (Medium)
Retailers and
departmental
stores
Corporate, airlines

Existing Rivalry
Real Juice,
Tropicana,
Minute Maid,
Maaza

Substitution (High)
Other aerated
beverages
Unorganised
sector juices

Supplier (High)
Only one supplier

Industry Forecasts

Forecast Sales of Soft Drinks by Category: Value 20132018

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
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 moms recipe

Price

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

Prices premium as no competitor in

terms of the flavors offered

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
Hectors Paper Boat come in 7 variants such asAamras (45%
mango pulp),Kokum (20% kokum),Jaljeera (8%
lime),Jamun (10% Jamun),Aampanna,ImliandGolgappe.
Major competitor for this can be Coca Colas 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%)}.
Hectors 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
4years ago.
Mountain Dew is the countrys 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
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
The success of this brand
lies in the combination of
catchy name, very
differentiated
packaging and the
superb recipes

Difference from other

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

Consumer behaviour analysisprimary 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 doesnt matter its an
impulsive purchase

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

About 90% respondents said yes

Consumer behaviour analysisprimary 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 dont 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.businessstandard.com/article/companies/paper-boat-drinks-maker-hectorbeverages-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-hectoris-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