forecasting for a new expansions of energy drinks in india (mgd, slim)

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Table of Contents 1. Executive summary................................................................................................................ 3 2. Introduction ............................................................................................................................ 4 3. Acknowledgment ................................................................................................................... 5 4. Task 01 ................................................................................................................................... 6 4.1 India ................................................................................................................................. 6 Macro environment of India ..................................................................................... 7 4.1.1 5. Task 02 .............................................................................................................................. 10 5.1 Standardize or adapt ....................................................................................................... 10 Adaptation strategy for India .................................................................................. 10 5.1.1 5.2 Target market segments of India.................................................................................... 11 Demographic segmentation .................................................................................... 11 5.2.1 Geographic segmentation........................................................................................ 11 5.2.2 Psychographic segmentations ................................................................................. 11 5.2.3 Behavioral ............................................................................................................... 11 5.2.4 5.3 Branding (Name, Logo, colors, Label & Trademark Registration) ............................... 12 Brand name ............................................................................................................. 12 5.3.1 Logo ........................................................................................................................ 12 5.3.2 Colour ..................................................................................................................... 13 5.3.3 Labelling ................................................................................................................. 13 5.3.4 Trademark Registration .......................................................................................... 13 5.3.5 5.4 Perceptual map ............................................................................................................... 13 6. Media strategy...................................................................................................................... 15 6.1 Outdoor / Billboards ...................................................................................................... 15 6.2 Online and Social media advertising WWW, Facebook, Twitter and YouTube ........ 15 6.3 Magazine ........................................................................................................................ 16

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Table of Contents 1. Executive summary ................................................................................................................ 3

2. Introduction ............................................................................................................................ 4

3. Acknowledgment ................................................................................................................... 5

4. Task 01 ................................................................................................................................... 6

4.1 India ................................................................................................................................. 6

Macro environment of India ..................................................................................... 7 4.1.1

5. Task – 02 .............................................................................................................................. 10

5.1 Standardize or adapt ....................................................................................................... 10

Adaptation strategy for India .................................................................................. 10 5.1.1

5.2 Target market segments of India.................................................................................... 11

Demographic segmentation .................................................................................... 11 5.2.1

Geographic segmentation........................................................................................ 11 5.2.2

Psychographic segmentations ................................................................................. 11 5.2.3

Behavioral ............................................................................................................... 11 5.2.4

5.3 Branding (Name, Logo, colors, Label & Trademark Registration) ............................... 12

Brand name ............................................................................................................. 12 5.3.1

Logo ........................................................................................................................ 12 5.3.2

Colour ..................................................................................................................... 13 5.3.3

Labelling ................................................................................................................. 13 5.3.4

Trademark Registration .......................................................................................... 13 5.3.5

5.4 Perceptual map ............................................................................................................... 13

6. Media strategy ...................................................................................................................... 15

6.1 Outdoor / Billboards ...................................................................................................... 15

6.2 Online and Social media advertising – WWW, Facebook, Twitter and YouTube ........ 15

6.3 Magazine ........................................................................................................................ 16

6.4 Sponsorship .................................................................................................................... 16

7. Conclusion ........................................................................................................................... 17

8. Recommendation ................................................................................................................. 18

9. References ............................................................................................................................ 19

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1. Executive summary

The assignment provides a clear macro environment analysis, product stereo analysis and

media strategy analysis for new expand to India, where we selected the appropriate

adaptation decision according to the macro environment analysis. The forecasting for a new

expansion will be success of energy drinks.

The macro environment analysis some key factors such as political and legal, economic,

cultural and technological. It briefly discusses the opportunities and the threat of this

environment. Opportunities include changing government less focus on business rules,

business low system protecting the foreign investors, the less tax encourages investing and

unemployment gets positive a labor force in lower salaries, changing western way of life

boosting the economy and long-term investment success. And the threats include large

disparities among peoples, different law has to follow, different language, different culture &

region and states, maximum investment and changing global technology systems.

According macro environment, we decided adaptation strategy for strategic reasons. Other

analysis includes the Wild Bull’s most appropriate target market segment such as urban

consumer, male, age groups 18-35, sportsman, professional education students and hard

workers. Adaptation strategy decided the appropriate branding model, perceptual map of

energy drink of Indian markets.

The final task recommended for less cost and more attractive, innovative media strategy to

Wild Bull in Indain. I recommend the outdoor, online, magazine and sponsorship.

The report finds the current economy is positive to Wild Bull energy drink. The market

threats found solutions by using business strategy in India. Those recommendations include.

Adaptation produces innovative different energy drinks to different market segments.

Energy drink ensures product standard

Media advertisement evaluates cultures, cost, and media availability also government

regulations.

The organization goes a long-time business with Indian suppliers

2. Introduction

The Wild Bull Energy drink has a good demand among the Sri Lankan population. Demand

of energy drink is growing due to increased consumer consumption, usages in the

manufactures of various flavors and flavor ingredients. The organization would expand to

one Asian country due to earn more profit, increase market segment, digital work and use

global unemployment.

The energy consumption has frequently increased India, Sri Lanka, Pakistan, Bangladeshi

and other Asian countries. The selected country India is located in South Asia. In India, more

than 1.23 billion population, approximately 30 languages and a fast growing economy. The

culture is different a peoples lives there such as Hinduism, Buddhism, Islam and Christianity.

Its economy faces market challenges such as poverty, changing political, unemployment and

bribery.

After 2008, the financial crisis is striking, India is a place in the fast grown country and it was

10th place in 1991. The long term business has been being a success than SME due to the

improving technology in the business sector. Some of the industry has been continuously

growing few years such as social sectors, infrastructure sector and food and beverage.

The energy drink has is so much demand in India where Red Bull is a market leader with

more than 40% market share. But, other every competitor is less than 10% market share.

Our organization has to enter into India, where it may good market opportunity reporting on

the market research.

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3. Acknowledgment

I express my sincere gratitude for Mr. Mohamed Imran to provide additional knowledge to

complete this assignment. As well as my thankfulness to the Sri Lanka institute of marketing

for providing changes to follow such as a valuable courses like this, finally I want to give

love acknowledgments for my family members.

4. Task 01

I selected India due to the major population, different cultures, stable economy,

unemployment and various other factors are positive for the Wild Bull organization.

4.1 India

The huge population of India attracts opportunities for a new business organization that

includes 29 states and 7 regions. India is second most populous nation in the world where it is

more than 1.23 billion people and 65 % people's age is 35. Also, according to the forecasting,

India will be number one populated country in the world by 2025.

It is very strong economic country through the gross domestic products and purchasing

power. The current GDP growth rate is 6.4%, which are growing faster from 2012 to 2014.

The most attractive sector is service sector of the investment. Because, it generates high

return. Also, all the business sectors have opportunity availability of the labor pool at a lower

rate.

India is a multi-cultural and multi language, country where people use about 30 languages

such as Telugu, Urdu, Hindi, Tamil, Sanskrit, Punjabi, Kannada, Bengali, Hindi, English.

Both Hindi and English languages are considered as the official language.

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Macro environment of India 4.1.1

The Macro environment analysis describes the external factors of the India, where it analyzed

the important tools of political and legal, economic, social cultures and technologies.

4.1.1.1 Political and legal

The political and legal environment is unit part of the successful business which has to

consider taxing, product standard, and organization registration and government laws.

India follows the common law systems from British where democratic rule is not positive to

among competitive organizations. The restriction of business law called company law that

protects the business investors from the debit, finance and public market.

The regularly changing government is opportunities to foreign investors. But, the government

has two parliaments of Rajya Sabha and Lok Sobha. The president of Pranab Mukherjee was

selected to Rajaya Sabha in 2012 when he may member of the Rajaya Sabha in 2017.

The Indian enforces various laws which are complex for business organization. Those are

employment trademark act 1969, consumer protection act 1960, essential goods and services,

law act 1955, enviromenr protect law, competition law, standard of weights and measure act

1969.

The Indian government has ensured good legal system after the economy liberalized since

1991 when Indian regular agencies are more careful about the production and banking

sectors.

4.1.1.2 Economic

The economic environment includes economic growth, risk, particular food and beverage

sector and career opportunities.

Calculating of Indian economy, the GDP has grown from 4.4% (2013) to 6.4% (2014 3rt

quarter) and the inflation rate was 7.96%.

India is an emerging country where it has various market potentials for business organization.

After 2008, the financial crisis was striking, India is in tenth place in the fast grown country

also, it has been first place since 1991.

The Indian economy is potential development and growth. But, the market needs longer time

for growing in particular fields where the long-time business is more successful rather than

short term.

The unemployment rate is valuable opportunities in lower wages. They are educated and

skill peoples.

High inequality among Indian people who take control in purchasing behavior. The less

consumer has high income and they have more purchasing capabilities.

The larger organization has been growing faster than SME due to the and expertise and

improvements of this business.

The market competition is high in energy drinks due to foreign organizations and local

organizations have capital and expertise.

Some of the business sector has been continuously succeeding this era where that are

manufactured, pharmaceutical and food and beverage.

4.1.1.3 Social cultures

The market has to adjust in the good respect to the cultural and belief. Because, Indian

consumer takes a purchasing decision according to the cultural and belief.

According to Hofsted’s dimension cultural analysis, Indian more interesting group work

rather than individual in their society. Male is the decision maker in the family also they high

unequal relationship between husband and wife also organizations employes. For example,

The manager avoids conversation with lower level staff.

The western lifestyle has accepted in Indian. Because, Indian youth’s life styles is changing

to the western way of lifestyles in drinking alcohol, familiar with the pub, leaving from

cultural belief and responsibilities, increase the female employe rate, changing music, eating

behavior at restaurants, avoid cultural dress and etc.

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There is so many languages such as Telugu, Urdu, Hindi, Tamil, Sanskrit, Punjabi, Kannada,

Bengali, Hindi, English. But the English and Hindi are the official languages.

The majority of youths segments favors energy drink, miners segments favor cool soda as

well as elder flavor to nutrition drink.

The organization has to adopt Indian cultures. Because, different religion involve in this

business such as the major population of Hindu peoples who does not eat meat, less Faver

two chickens and Muslim avoid porks.

Indian peoples are very broad-minded which clearly explained by business languages such as

yes means, yes or maybe or no, tomorrow means in a few days, in 10 days means in a month,

in 6 months means forget about this deal.

4.1.1.4 Technological

The current upgrading technology and using new latest technology is success for innovative

food and drinks

India organization has unlimited opportunity by using new technology which increases the

competitive advantage for the business organization.

After the using good technology, The Indian enhanced the security and testing on harvest,

food and drink and the testing and security system of local and foreign products.

The changing lifestyle and economic growth are encouraging for online business. Indian

intent subscriber increased 88 million (2008) to 137 million (2012). The mobile phone user

increased 44 million, smart phone user increased 4%, 59.38% users have a mobile internet

account. Desktops personal computer subscribers are 86.05%, computer user 57 million

(2013).

5. Task – 02

5.1 Standardize or adapt

International organizations selected standardize and adaptation due to cultural differences and

strategic reason, economic reason and etc.. The standardize is the same product which

focuses all the costumes are the same and less cost for the organization. The adaptation

selected for the strategic reason in the nternationla marketing. Accoditing to macro analysis,

The new entrance need adaptation in India.

Adaptation strategy for India 5.1.1

According to macro environment analysis, I recommend the adaptation for the strategic

reason in India. Following reason are.

To produce the different taste of energy drink

We plan to target three types of market segment (youth, children and elder) by changing

the marketing mix which should be economic of scale.

To satisfy the different religion and belief of the population.

To successfully obtain the available technology

To satisfy different income consumers

To switch the existing consumers from competitors to our organizing and capture the new

chapter to easy way

When we decide the adaptation strategy, it can gain more revenue and capture the different

type of market segment. But, it is expensive than standrazie strategy.

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5.2 Target market segments of India

The major appropriate target market segments are urban consume and middle income

consumer, male, age groups 18-35 and occupation is an athlete, professional education

students, cricket players and hard workers.

Demographic segmentation 5.2.1

It included various factors such as age, gender, income, occupation and etc. the following

appoprtiate demographic segments are below.

Age - 18 – 35

Gender - Males are the major target audience also female is very less part

Incomes - Urban consumers and middle income consumers

Education – Young professionals

Occupation - Hard workers, working professionals and sports person

Geographic segmentation 5.2.2

In India, Various segments have identified from states, city, and regions. Following the

geographic market segment are below.

Area - Urban area, middle urban areas

Region – All the region

Psychographic segmentations 5.2.3

Psychographic Segmentation is based on personality, attitudes, interest or lifestyle of the

potential customer group. Following appropriate psychological factor segmentation below.

Lifestyle - Hard work, sportsman,

Personality - Ambitious, aggressive

Benefits - Superiority energy

Behavioral 5.2.4

Behavioral role is an important factor of energy drink. It can be identified the behavioral

segments of angry drink.

Level Energy and fresh

Benefits sought

Brand loyalty

Produce user rate

5.3 Branding (Name, Logo, colors, Label & Trademark Registration)

Selecting the brand name is an important part in global business. It has adapted the cultural

and belief of people, can easily identify from the competitor’s brand and should be good

remained in consumer minds.

Brand name 5.3.1

The current energy drinks make the best impression to existing customers who don’t know

about our brand and our company. So, we have to select easily remember names that follow

common languages such as English.

The consumer belief, the energy drink reduces the tiredness and making new impression

when consumers drinks. So, our product name should be positioned the meaning as “increase

your strength and your power”.

A brand name which isn't taken a meaning in the dictionary, is a common language (English)

and it should suggest the characteristics engery and impression.

Logo 5.3.2

The logo is an important to remain in consumer's mind. Our logo, which relate to being bull

products, differentiate and identify very easily compare then competitors’ brand. The logo

should express the strong energy in consumer minds.

The energy drink purchase needs a fresh and extra energy. So, The logo should give strong

recognize for the fresh and strong energy.

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Colour 5.3.3

Color effects country societies. It expresses the positive value and negative value of to

business. In business, colours use different in different societies. Selecting the appropriate

color, It maximizes the target audience and accetaple the cultural impact. The yellow is the

“Symbol of a Merchant” color in India, where it is appropriate to all religion and cultures.

Labelling 5.3.4

The label should clearly describe the received soft drink standard from India, integrations,

nutrition facts, produced date, expire date, brand logo, price and etc.

Trademark Registration 5.3.5

The Indian foot and beverage brand register in the act 1999 [under the rules 24 (1)]. The

registration must for every drink, which can confidently among the costumes. And it avoids

the fake drink from local producers as a same name in India.

5.4 Perceptual map

There are several energy brand in India such as Red bull, Cloud 9, power hose, Rhino,

Current bullet, Amway xl, Pepsi sobe, coca cola burn, Gatorade and etc. The Austria’s red

bull is a market leader that brand is a higher health benefit and high brand awareness.

I have decided to show the high brand image and high health benefits of our products.

Bild Bll

Red Bull

Cloud 9

Gatorade Amway Xl

Coca Cola Power Hose

Pepsi Sobe Current Bullet

High Health

Benefit

High Brand

Awareness

Low Brand

Awareness

Low Health

Benefit

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6. Media strategy

Advertising is an important strategy, however success of a global advertising campaign

depends on regulatory environment, media availability, cultural differences, and cost of

media. The media advertisement is less cost that can reach more target audience in global

marketing. The following media advertisement appropriates to Wild Bill Brand.

6.1 Outdoor / Billboards

The billboard advertisement is the most effective media and less cost. We can design the

billboard positive technology and hiring graphic designers. The billboards adverisment place

takes in the displays, road billboards, poster and playground stadium.

It is most effective methods due to the very least cost medium and reach millions of people

every day, continuously reminding for our products, easily identifying the brand, increase

reputation of the company and products, design can attract a potential customer, work for a

guide to new customers and fixed brand image.

6.2 Online and Social media advertising – WWW, Facebook, Twitter and YouTube

The consumer has been a day to day using social media advertisement such as Facebook,

Twitter, YouTube and Google which are more attractive advertisement to youths. The

organization should make an interesting to consumer about the brand and organization. The

advertisement is very less or no cost to organize, it can reach a larger type of consumer and

most of the users are same of our market segments.

Facebook is most popular social media over the 500 million users around the world. The 50%

of people login with each day also the one user has a friendship with 130 persons and liked

with 80 public pages.

YouTube is another well-known social media advertisement in video. The 18-34 age segment

people are sharing more videos and more than 50% login with each week.

Companies promote the brand to lager costumers via the twitter social media also it linked

with companies' websites.

6.3 Magazine

The most effective advertising commonly uses in the professional group who get an interest

of the organization offers. The magazine has so many opportunities in India. Because, its

focus special professional target segment, long time being with customers compare with

newspapers, it's used as office, classroom and doctor's waiting room, the same magazine,

including sport interest advertisement and information about sports, people passing to another

when read interesting information.

6.4 Sponsorship

The organization pays or providing free resources to the new sports team. More companies

spending money to increase consumers in future. The bull is strong energy drink in consumer

minds a and the target consumers are sporsmnet so, we can sponsor to one or two of car race

bike races, horse race football, running games. When you selection effective sponsor, you

plan about the cost and market segments.

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7. Conclusion

The assignment provides a clear market analysis of India. The suitable adapt decision has

selected according to the macro environment analysis. The forecasting for a new expansion

will be provided a market success in India.

The new expansion will be successful in India, where have various opportunities as well as

some threats. The benefits are described the changing government less focus on business

rules, business low system protecting the foreign investors, the less tax encourages investing

and unemployment gets positive a labor force in lower salaries, changing western way of life

boosting the economy and long-term investment success.

Also, the new entry has various threats which describes the large disparities among peoples,

different law has to follow, different language, different culture & region and states,

maximum investment and changing global technology systems.

The adaptation is an appropriate strategy for expansion in India. The research identified

target segments who are sportsman, high educates students, hard workers and etc. The

consumers do not purchase an energy drink every time but they recommend a good brand to

their family and friends. But, less consumers know the benefits of energy drinks.

The international media advertisement is influenced by many factors such as media

availability, cost of media, legal barriers and various other micro environmental factors. The

TV advertisement is a great attraction, but it more cost likes India, we decide billboards,

online advertising, sponsorship advertisement for our new expansion.

8. Recommendation

The recent years, The current energy demand belongs to the ingredients of non alcohol drink.

Because, Indian consumer is very religion. So, the energy drink ingredients should avoid the

alcohol as well as your packaging should clearly explain the ingredients to market segments.

The changing the lifestyles and income level deciding good energy of drink in differing test

two different market segments. Your drink should target young consumers as well you

decided cool soda and nutrition milk to other segments. So, you can reach more market

segments and reduce the cost and gain economies of scale.

The boosting Indian economy is not success in short time business, the organization will

select a long time investment.

The large population of India has different cultures and different languages. So, when you

select an appropriate advertisement media access the indian borders. You decide lower cost

and more effective advetisment such as bill borders, online advertisement, sponsorship and

magazine rather than television.

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9. References

International marketing. Cengage Learning- Indian edition.

http://en.wikipedia.org/wiki/India

http://www1.fee.uva.nl/fm/conference/legal/2008%20ecgi%20india.pdf

http://www.ukessays.com/essays/economics/analysis-of-macroeconomic-environment-in-

india-economics-essay.php

http://soniajaspal.wordpress.com/2011/09/04/risks-of-doing-business-in-india/

https://www.youtube.com/watch?v=gF69nGzrnGU

http://www.bms.co.in/technological-environment-in-india/

http://www.academia.edu/3852603/INTERNATIONALIZATION_STRATEGY_BETW

EEN_ADAPTATION_AND_STANDARDIZATION

http://manansilawat15.wordpress.com/2013/10/05/segmenting-targeting-and-positioning/

http://www.empower-yourself-with-color-psychology.com/cultural-color.html

http://www.ipindia.nic.in/tmr_new/default.htm

http://www.slideshare.net/abhizar/energy-drinks-market-india

http://www.knowthis.com/types-of-advertising-media

http://www.toprankblog.com/2010/12/social-media-advertising-tips/

http://www.medianama.com/2012/12/223-india-has-137-million-internet-users-44-

million-smartphone-subscribers-report/