CASE FACTSVictor India ltd.(VCIL) originally a coca-based product manufa. & mark.

company launched its coca-based brown milk beverage brand Victor in 1996. They kept price low to gain comp. advantage but failed to reach target. In 2000, company initiated a brand building prog. but results were not encouraging.

Continue. VCIL 2 broad types of product-

i. i) ii)

Consumer products. ii. Industrial products. Consumer products- Includes chocolates & Victor beverage. Industrial products- Semi processed cocoa at different stages of chocolate manufacture.

Ingredients of Victor-

Main ingredient is cocoa powder,sugar, vit. C,salt,flavour,glucose, & emulsifiers.

a) b)

CompetitorsBrown beverages-Bournvita,Boost,Milo,etc. White beverages- Horlicks,Nutramul,etc.

1. 2. 3. 4.

Few imp. FactsHouseholds- 60% of total market. Biggest consumers- Age gp. 6-16 yrs. 60% of high income households are regular consumers. Target- Mothers (key influencer) & children.

ISSUES - on reducing price to get competitive advantage Company too much focus
but still not able to meet target. Simple content-nothing special. Less consumption in south India (brown beverage). Preference of consumers for white beverage. Price- 65 Rs. Relaunching as Victor + In jan. 2000 still flawed. Messed up packaging (color combinations). Improper branding. Confused positioning. Lacking of initiative- Institution segment. Inadequate promotion.

KEY ISSUES Too much price conscious. Incomplete ingredients. Promotion.

 Before launching product they should decide product type (confused

CASE ANALYSIS-

positioning). Who is the target? Proper segmentation & why? Comparing victor to other health drinks shows Inadequacy of nutrients. 60 % of consumers are high income gps. still no A+ & 5% A class retail outlets. Retailers unwilling to stock Victor + (less commission to distributors & retailers). Despite adding extra ingred. price lowest. Eventhough adv. Budget increased to 30 lacs from 8 lacs no other med. Of adv. Other than newspapers & sponored events. Proper branding, packaging.

 Add ingredients which lead to P.O.D ( vit. A, vit. D, Vit. E-women ,

SUGGESTIONS

Min.,protein). Definining it is health drink or chocolate drink. Targeting mother as she is key factor by telling the benefit of product for children . Introducing Victor in different taste- influencing children. Increase price in the range of 85-90 Rs.-The profit gained can be used for promotion ( various media). Change of package & tag line( connect it to victor). Changing people perception of brown beverages . Keeping price somewhat low for Victor in southern part of India comparatively or introducing its malt variant that requires less water. Promoting it in restaurants