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Copy of Strongbow Cider in India

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amanpreet singh

on 2 November 2013

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Transcript of Copy of Strongbow Cider in India

Strongbow Cider in India
Strongbow Cider
Organizational Analysis
Situational Analysis
Summary
Enter the Indian Market as trading partner with United Breweries. (leverage the distribution network).
Create awareness about Strongbow Cider Brand and Cider as an alcoholic beverage drink.
Use positioning and promotional activities to pull audiences from traditional alcoholic beverages.
Follow the Implementation Plan and evaluate using the specified measures to check the success of the Strongbow Cider Launch.
Based on the success, decide on expanding the product offerings or setting up bottling and production facilities in India to obtain cost leadership.
Take early mover advantage and obtain significant market share in the fairly nascent Indian Cider Market.

Marketing Strategy
Forecasts and Budgets
Marketing Goals and Objectives
Integrated Marketing Communications Plan
Implementation and Evaluation
Product Strategy
Pricing Strategy
Distribution Strategy
People, Physical Evidence and Process
Strategy
Promotions Strategy
Environmental Analysis (PESTLE)
Product and Market Analysis
Customer Analysis
Industry Analysis ( Porter's Five Forces)
Competitor Analysis
Critical Issues
Heineken -- Facts and Figures
Heineken Mission and Vision Statement
Core Competencies
SWOT Analysis
Competitive Advantage
Strongbow Cider
India as a Target Market
Product Offerings
Direct Competitors
Indirect Competitors
Magner Irish Cider
Tempest Cider
Indian Brand well-established in the states of Himachal Pradesh and Haryana.
Backward Integrated ( apple orchards and breweries) and strong distribution network in North India.
Catering to general public with below average income, Separate target market from International Cider brands,
No reach in other parts of India and no current expansion plans.
Poor Marketing Capabilities and Financing Issues due to the heavy costs associated with production and distribution.
Capable of capturing similar segments in other parts of India.
Aspall Cider
Well established International Brand.
World recognized in terms of quality and claims to contain 100% apple juice.
Returning to Indian market after 110 years, some recognition possible.
Quality second to Strongbow and Magners.
Unsuccessful in penetrating US markets due to needs mismatch and strong competition, may face issues in India.
Rolling out 11 stores in Mumbai; operated by Godrej Nature's Basket.
Less capable of creating a strong brand image and achieving strong customer base.
One of the top Cider brands in world, 2nd in UK
Very strong marketing capabilities, advertised as being "poured over ice"
Can obtain strong brand recognition and high reach in India.
Quality better than Strongbow and Aspall, very high calories may be an issue.
Financially strong and has a capture over 40 markets worldwide.
Launched into the Indian Market recently through Kaama Impex.
Weak Distribution Network can be disadvantageous over Strongbow and Aspall.
Capable of obtaining a significant market share with marketing strategies if distribution improves.
Strongest Competitor to Strongbow Cider.
Heavy Competition from Traditional Alcoholic Beverages such as Beer and Wine.
Less Awareness of Cider and Changing People's taste -- Big Challenge.
Very Strong Existing Distribution Network, Marketing Capabilities, Production Facilities.
Strongbow directly competing with other Heineken products -- Cannibalization.
Strong preferences towards local makes such as Sula Wines.
Long-term investment as it will take time to change people's perceptions.
Political: Different states have different rules for liqour, time limits, limit on drinking age (25 yrs).

Economic: Disposable of average middle class Indian increasing at an alarming rate. (39% in last 4 years)

Social: 20% of India's population expected to be below 30% by 2030, pubs and discotheque culture on rise.

Technological: Advanced brewing technology can be used later for production strategies.

Legal: Alcohol Market controlled by State Government, fully banned in Gujarat, advertisment restrictions.

Environmental: Restrictions on Carbon Footprint that needs to be considered for later production strategies.
Launch with Strongbow Original Cider and Strongbow Sweet Cider
Ideal Time to Launch in India -- March (beginning of summer)
Packaging retained to original packing in UK. "Indianising" not useful for our target market.
Sold in bottles of 330 ml and 440 ml. No "can" offerings during the launch phase.
Other offerings such as Strongbow Dry Cider, Pear Cider and Clear Cider to be launched based on the response of initial offerings. Other packages such as cans, cartons can be introduced gradually.
Leverage Heineken Beer Brand to get a brand holding for Strongbow Cider.
Combination of Premium Pricing and Price Skimming -- Early Mover Advantage
Pricing also considers internal organization
factors - Adoption of Global Strategy, Increasing
Disposable Income of Youth in India, Strong Distribution Network.
Use of Big Mac Index and aligning it with the Purchasing Power Parity
Base Price --216.15 Rs for 330 ml bottle and 260 Rs for 440 ml bottle.
Actual price not to be above 25% of the base price as cider is a superior good with high price elasticity.
Avoid Price Discrimination in the initial stages to avoid effects on brand reputation.
Take advantage of existing Strategic Alliance with UB (United Breweries).
UB is the Official Distributor of Heineken Products in India.
Strong Distribution Network to Wholesalers and Liquor Retail Outlets/Bars and Pubs.
Distribution Network Group Scale -- 60% Share in Spirits and 54% Share in Beer.
Most distributors have been loyal UB Group Partners for multiple decades.
UB has contacts with reputed hotel chains such as JW Marriot, Taj Hotel Group, Oberoi, Sheraton and Radisson.
UB Distribution accounts for 46% of Alcohol Consumption in India.
Utilize the same distribution channels as Heineken Beer products.

People
Brand Management Team
Public Relations Team
Distribution Partners
Import Partners
Advertising Partners
Sales Team
Physical Evidence
Cider Tasting Events
Cider Expositions
Strongbow Cider India Website
Road Shows
Process and Packaging
Fast and Efficient Distribution Network
Customer Feedbacks
Customer Support Team
Quality Processes
Attractive and Innovative Packaging
Different Shapes and Sizes
Above-the-Line Media
Surrogate Advertising on Television
Sponsoring a Cricket Team in IPL
Surrogate Advertising in Sports and Fashion Magazines
Billboards and Hoardings
Endorsements
Below-the-line Media
Banners, Signages, Advertisments at PoS
Brochures and Flyers Distribution at PoS
Direct Marketing -- Email ID Harvesting
Social Media Marketing
Emerging Indian Economy

Westernization Trends

Climate Suitability

Untapped Market

Tax Revenue Source for Govt.

Demographics (younger generation)
Dry Cider produced by H.P. Bulmer in England since 1962.

World's leading Cider with over 10% of the global cider market.

Blend of bitter-sweet cider and culinary apples, with 50 different varieties of apple used.

In January 2011, Heineken started making the Strongbow brand global.

Alcohol Content: 4.5 - 5%.
Goals
Objectives
BCG Growth Matrix
Product Life Cycle Stage for Strongbow Cider
Target Market for Strongbow Cider
World Cider Trends
Growing Trend of Overall Alcohol Sales in India ( GDP vs Mn Litres )
Heineken ranks as the third largest brewer in the world.

Acquired Asia Pacific Breweries (APB), Singapore and Asia Pacific Investment Pte Ltd (APIPL) in 2012.

On a pro-forma basis, emerging markets now account for 64% of the Group’s consolidated beer volume and 59%

Innovations introduced in the markets within the last three years now represent EUR1 billion or 5.3 per cent of revenues.

Strengths:
Global marketing scale
Superior brand campaigns
Strong execution in the marketplace

Increased investments in 2013 will be focused on brewing capacity expansions, the upgrading of existing production facilities and new commercial equipment.

Marketing/Branding Expertise
Adherence to Total Productive Management
Passion for Quality
Striving for Innovation
An eye towards Sustainability
Segmentation, Targeting and Positioning
Positioning Map
Segmentation:

Geographic: 6 Metro Cities in India for first phase launch and expand to other cities in the expansionary phase.

Demographic: Youth population in the age bracket of 25 to 35 with income above-average, rich and uber-rich group. Restricted to Hindu, certain Christian sects and Sikhs.

Psychographic and Behavioral: People who enjoy drinking beer and wine regularly, with affluent lifestyle, who consider socializing and maintaining social status. Westernization trends catching up.

Ideal Target Segment:

Target Customer in the above-mentioned metro-cities. (58%)
People within the age bracket 25-35, male and female. (40.2% of above segment)
People with above-average income. (14% of above)
People without alcohol consumption restrictions (83% of above)
Most importantly people who consume alcoholic drinks regularly while socializing or while celebrating with family and who would want to try new alcoholic beverages. (30% of above)


Positioning:

Position as premium beverage brand in the country
Place for Cider needs to be created in Indian Market.
Pursue Symbolic Positioning in the form of Self Image Enhancement, Belongingness and Social Meaningfulness.
Make it a part of Indian Culture fulfilling regular beverage needs by sensory and cognitive simulations.
Special Taglines and Slogans such as " Forget Beer, Cider is Here" and "Healthy and Tasty Way to Beat The Heat".
Appropriate pricing and promotion strategies to position Strongbow Cider in consumer's mind.
Reposition based on Customer Feedback after Launch phase if required.
Alcohol Consumption by Demographics in India
Alcohol Consumption by Geography in India
Need and Influencing Factors Leading to Loyalty
Overall Consumer Behavior
Need for a change or variety in the category of alcoholic beverages.
Need for enjoying a refreshing and a high fruit content drink.
Need for having a comparitively low calorie alcoholic beverage.
Excellent Customer Service at various Touchpoints (most importantly PoS).
Word-of-mouth recommendations and regular positive feedbacks from loyal customers (Brand Propogation).
Ensuring proper distribution to avoid lost opportunities.
Proper handling of Customer feedbacks ensuring Customer Satisfaction.
Youth in the age bracket of 25-45 would be enthusiastic to try a new alcoholic beverage.
Creating Brand Awareness is the first thing to trigger favorable consumer behavior.
Quality is extremely important to ensure repeat business and Brand Propogation.
Promotional Activities and Branding Strategies extremely useful to influence consumer behavior.
Wide distribution network is important to be available to target customers.
Possible that a wide range of customers not chose to try or move back to traditional alcoholic beverages.
Appropriate Positioning required to keep customers attached to the product.
Sample Innovative Strongbow Cider Advertisements
(no surrogate advertising here)
Source : Government of India Statistics Dept.
Source: Government Of India Health Department
2014
2018
2022
2028
Years
Contingency and Scenarios
"Heineken's core values - respect, enjoyment and a passion for quality - help define our corporate culture and working methods. They are fundamental to the way in which we do business today; they support our drive towards economic, environmental and social sustainability. These 3 dimensions are strategically important for the long term success of Heineken."
Vision Statement
Mission Statement
HEINEKEN is a proud, independent global brewer committed to surprise and excite consumers everywhere. Four key attributes make the Company different: Heineken® is the first and only truly global beer brand, enjoyed in 178 countries around the world; a unique, worldwide footprint with operations in 71 countries, ensuring a broader reach for our brands than any other brewer; an internationally diverse, dynamic, committed and entrepreneurial team of around 70,000 employees; and the passion of the Heineken family remains as strong today as it was in 1864 when we first started brewing beer.
Strong Control on Cider Quality.
Strong Distribution Network due to existing Strategic Alliance.
Existing Marketing, Promotional and Brand Management Capabilities.
Experience of Market Penetration in new markets such as US, Russia.
Existing Reputation of parent company gives a brand boost.
Porter Generic Strategies
Sample Implementation Gantt Chart for Launch Phase (
Detail attached in Report
)
Evaluation
What to Measure

Brand recall from the customer surveys and panel interviews to measure advertising through surrogate advertising and event sponsorships.
Number of hits through print media based on promotional offers availed.
Measure the Exposure and Gross Rating Points from outdoor advertising .
Measure the increase in sales at PoS by comparing before and after sales from banner, signage and video advertisements.
Measure the link redirection hits from the email list and actual purchases.
Measure the impact on various touchpoints after the cider tasting and other promotional events to measure the success.
Measure the average number of website hits and time spent on average on the website.
Assumptions
Predicted Marketing Costs
Cost and Margin Calculations
Profit and Loss Statement
Total Investment Required and Interest Calculations
Valuation
Ratios and Net Profit Margin
Working Capital Calculation
When to Measure

Measurement to be done within a week after the activity launch for local promotional activities. Measurement to be done after 2 weeks for over a period of 3-4 months for above-the-line promotional activities.
How to Measure

Customer Feedback, Panel Interviews, Customer Surverys for brand recall.
Sales revenues for above-the-line media activities and other activities such as road shows, cider tasting events.
Website Redirection Hits and Email Redirection Purchases.
Net Promoter Score to measure brand engagement
Presentation By: (Group 18)
Shipra Gupta (GMAY13IT094)
Ashish Tripathi (GMAY13GLM044)
Shreyansh Bhandari (GMAY13IBWM070)
Sahil Uppal (GMAY13IT092)
Nilesh Dalvi. (GMAY13CMM022)

We carried out Regression & Analysis for the same :
Full transcript