THE COLA TRAP

SUBMITTED BYSUBMITTED BY

K.N.JAKANTHANK.N.JAKANTHAN

INTRODUCTIONINTRODUCTION

Dewrell India is a famous soft drink manufacturer, manufactures –

Toff (orange drink) & Quench (lemon drink).

Indian cola market is now in hands of two big American companies – Dappy & Bart.

Viren mitta – CEO of Dewrell India.

Arun Kurien – Old CEO of Dewrell India.

Vishvesh vaidya – Marketing manager of DI

KEY ISSUES

Dappy and Bart were running Orange and Lemon segment also.

Because of that Kurein was doubtful in Dewrell’s orange and lemon segment.

Kurien desired to enter into COLA segment, where Dappy and Bart in peak to beat them in soft drink market.

Now, mitta starts Perron cola and there is some other reasons to enter into Cola segment.

Dewrell’s reasons going for COLA Dewrell should compete with Dappy and Bart because

they are obstructing Dewrell in soft drink manufacturing. Since they are in peak in cola segment, Dewrell has to

pull down them, so Dewrell choosed the strategy to enter into cola segment.

Cola segment is moreover a youth segment, if Dewrell covers this youth segment it automatically raise their brand loyalty in soft drink market.

Cola segment occupies 50% of soft drink market, so to complete the companies range, Dewrell likes to enter into cola segment.

Cola segment also increases bottlers and distributors volume, through retail shops

In international portfolio (parent company in Greece) they are using a cola brand – Perron.

DEWRELL’S ACTION OVER COLA SEGMENT

Each and every segment products has three sales attributes : Product, image, price differentiations.

Product differentiation is not easy - create new. Image differentiation is also cost so high, Dewrell

cant afford that. 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 )

Vaidya wants visibility and awareness, since all medium are so expensive, he choose hoading medium (Cheapest medium) – hired 150 hoading for long term.

Cont., 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.

Dewrell introduced parron as it is exclusively made for Indian economy market.

To tackle the Dappy and Bart consumer, Dewrell has to pull down rivals brand image – so it promotes as “ A cola is a cola is a cola”.

Dewrell exposed parron cola as fun brand and by above methods it encourage the consumer to rebel against its rivals

Defects Both Dappy and Bart are leading manufacturers in

cola segment, so we have observe their growth and image.

Price differentiation can be easily tackled by them by using a strategy – Rs.6 – 200 ml (To cover the non loyal consumers).

It is not easy to push their images down by insisting “don’t take image seriously” but they always says “ Take image seriously”.

Media labelled perron as unoriginal, copycat. All Dappy and Bart drinkers feel them as Americans

but dewrells Low price itself expose it as “I am not branded, trendy and I am not westernised”.

Cont.,

Moreover youth segment never mind of spending Rs.2 or 3 extra for their brand and feel.

Image of Dappy and Bart are made stronger by ambassadors like Shahruk khan, Sachin Tendulkar. Its not easy to demolish their image.

Consumer don’t want to have cheaper cola. This cause perron cola a discernible slowdown.

Retailer’s voice

Dewrell’s image has gained in leaps and bounds on the strength of its orange drink, Toff.

Cola segment is main in soft drink market, perron cola will surely slowdown the volume of Dappy and Bart products and bottlers.

Retailers are forced to distribute orange and lemon products of Dappy and Bart Cola Manufacturers.

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.,

Vidya wooed retailers because they enthusiastically stocked Perron.

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 In our economic India, consumer eye will be

always on Price, so this Price differentiation will really works.

Even though the American company lowers their price by 25% it automatically lowers its quantity by 33%.(Rs.6 – 200ml)

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., Indians are fun lovers, they surely loves to try to

be like a American in Indian economy, so they surly accept Parron.

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.

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.

Youth always like to taste new brands.

conclusion 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.

At the same time, it has to satisfy the retailer (by allowing to sell at Rs.8),customers(quality at low price).

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 cola is a cola is cola will really works. Marketers are not black, orange, white they are

adults, teenagers or children. Toff will shines because of this perron – cola strategy.

Thank you !!!Thank you !!!