Post on 12-Mar-2015
description
AMP Energy Juice, India 1
Table of Contents
1. Executive Summary ................................................................................................................ 22. Market Analysis ................................................................................................................ 3-13
a. India Soft Drinks Industry b. Energy Drinks in India c. Competition
i. Red Bull ii. Cloud 9
iii. Power Horseiv. Sobe Adrenaline Rushv. Burn
d. Market Environment i. Unorganized Retail in India
ii. Organized Retail in India3. Cultural Analysis .............................................................................................................. 13-19
a. India Hofstede Scoresb. Indian Culturec. Indian Demographicsd. Indian Consumerse. Tremendous Growth of the Middle Class in India
4. AMP Energy Juice Product Description ............................................................................ 19-205. Marketing Communications Objectives ........................................................................... 20-236. Target Audience Analysis ...................................................................................................... 237. Strategies and Tactics ...................................................................................................... 23-30
a. Sales Promotionb. Advertisingc. Public Relations and Event Marketingd. Direct Marketinge. Internet and Social Media
8. Summary ............................................................................................................................... 309. References ....................................................................................................................... 31-32
AMP Energy Juice, India 2
Executive Summary
Over the past few years, there has been tremendous growth in the functional drink, or
energy drink, category all over the world. Young people are the primary consumers of
functional drinks and continue to fuel growth in this category. AMP Energy Juice, which was
released in the United States in February 2010, is 100% juice infused with the power of
traditional energy drinks. A product launch in India is the perfect opportunity for AMP Energy
Juice to expand and enter the Indian functional drink market which has been growing at a rate
of 50% per year. Indian consumers are increasingly becoming more health conscious, which
means AMP Energy Juice is the perfect product to introduce to this market. This plan highlights
important aspects of the functional drink category in India, the current business situation in
India, and essential information and insight into Indian culture. Communications objectives,
strategies, tactics and creative executions are also provided that will allow AMP Energy Juice to
break into the Indian market successfully. Specific details are provided throughout the plan that
demonstrate that AMP Energy Juice’s strategies and executions are culturally appropriate for
Indian consumers.
AMP Energy Juice, India 3
Market Analysis
Indian Soft Drinks Industry
In order to understand the current situation for the beverage market in India, it is
important to define which beverages are considered soft drinks. The soft drinks market consists
of bottled water, carbonates, concentrates, functional drinks, juices, tea and coffee. It is also
important to note that a functional drink is what Americans typically refer to as an energy drink,
so the terms may be used interchangeably. In 2008, the soft drinks industry in India grew by
7.7% to reach a market value of $3.4 billion and grew by 8.3% to reach a volume of 5.5 billion
liters. Furthermore, an industry analysis conducted by Datamonitor forecasts the Indian soft
drinks market to have a market value of $4.6 billion, an increase of 36.9%, by 2013 and a
volume of 8.2 billion liters, a 49.9% increase, since 2008 (Datamonitor, 2009).
Globally, India is one of the fastest growing non-alcoholic beverage markets. One
positive factor that is driving the beverage market in India is the rising number of people in the
middle class. This group has seen an increase in income and therefore has extra money to
spend on new beverages. Additionally, the actual amount of people in India is a driving factor
for the beverage industry. The key change that is occurring is that Indian consumers are slowly,
but surely, shifting from traditional home-made beverage options to packaged drinks due to
their increasing disposable income and the convenience factor of packaged drinks (Khan, 2010).
However, a large and untapped market opportunity exists. Currently, the majority of
Indian consumers, about 75%, consume non-alcoholic beverages from stores ‘less than once a
day’, indicating the need to increase penetration of these beverages in the market and
AMP Energy Juice, India 4
ultimately increase the consumption and sales of store bought beverages (The Indian Express,
2009). This untapped market opportunity should be taken by AMP Energy Juice.
Energy Drinks in India
The energy drink market in India is currently estimated at around 1.5 million cases (of 24
cans) per year, and has been growing at a rate of 50% a year (Shanbaug, 2010). Red Bull was
really the first brand to enter the energy drink market in India in 2003. After initially launching
in India, Red Bull gradually gained the approval of consumers and the brand was successfully
secured into the Indian market (The Indian Express, 2006). Red Bull’s success basically started
the energy drink market in India and inspired many other brands to enter the market, which
will be discussed in further detail in the competition section.
In fact, the energy drink segment is the fastest growing segment in the ready to drink
beverage category (Maji, 2009). This can be attributed to the fact that energy drinks are
popular among India’s large youth population. Despite the release of negative media reports on
possible side effects of energy drinks, the young population continues to fuel the energy drink
trend and demonstrates that there is a large growth potential for this market (Khan, 2010).
It is extremely important to understand that the consumption of energy drinks varies
inversely with age and directly with income (The Indian Express, 2009). In other words, young
Indians are the primary consumers of energy drinks in India and have stimulated the continuing
growth of this market. India is a young country and energy is one of the important consumer
needs of its youth (Chamikutty, 2008). Additionally, Indian consumers who have greater income
will also be more likely to purchase from this category. Hence, it is easy to understand why
AMP Energy Juice, India 5
young people with increasing disposable income are the target audience for the energy drink
market in India.
Currently, functional drinks are finding favor among health conscious consumers in India
(Khan, 2010). Therefore, it is possible to achieve success in the energy drink market in India by
stressing unique nutritional benefits. Due to the fact that some are still concerned with the
possible side effects of energy drinks, brands need to create differentiation on the basis of
ingredients. Therefore, the demand for energy drinks in India is growing, largely due to youth
and increased disposable income, and consumers are beginning to care more about ingredients
and health benefits of the drinks. It is clear that AMP Energy Juice has the opportunity to enter
the Indian market, given the current conditions.
Competition
There are many energy drinks currently available in India, but Red Bull, Cloud 9, Power
Horse, Sobe Adrenaline Rush and Burn are the most important to discuss. It is important to
understand that while there are clear brand leaders, there are also numerous opportunities for
competitors to strengthen their positions by addressing the three greatest obstacles to greater
consumption- lack of availability, high price, and unappealing taste. The key to the success of
these products in the Indian market definitely lies in the right pricing for the consumer mindset
and widespread retail distribution set-up. Product taste is one of the primary drivers of brand
choice for energy drinks, along with the functional or health benefits the drinks provide to
consumers (The Indian Express, 2009). The Key brands of the market are discussed in further
detail:
AMP Energy Juice, India 6
Red Bull
As previously stated, Red Bull was the first major successful energy drink in India, or the
pioneer of the market. Red Bull’s primary consumers are in their 20s and
early 30s and live a busy lifestyle. According to Red Bull, the product has
been specially developed for times of increased mental and physical
exertion. Red Bull energy drink claims to increase performance, increase concentration and
reaction speed, improve vigilance, improve emotional status and to stimulate the metabolism
(Red Bull, 2010). Red Bull’s main ingredients are Taurine, Glucuronolactone, caffeine, B-group
vitamins, sucrose and glucose. The international tagline for the product is “Red Bull gives you
wings.” The product claims to be valuable to a wide range of consumers from students studying
for exams, to busy professionals and athletes that need an extra boost to get through their day.
Red Bull was not only the pioneer of the energy drink market in India, but continues to
dominate the Indian market with more than 60% market share (Shanbaug, 2010).
Red Bull utilized buzz marketing, or word of mouth marketing, to gain success in India.
The brand also gained popularity with young consumers by sponsoring youth and extreme
sports events as well as promoting the product on college campuses. Surprisingly, Red Bull did
not use a lot of traditional media to gain awareness. Therefore, the majority of the brand’s
marketing budget is spent on sampling and event sponsorships rather than traditional methods
like print advertisements, television advertisements, etc. Red Bull continues to use
unconventional marketing techniques, such as teams driving Red Bull jeeps around handing out
energy drinks to people in offices, gyms, schools, etc (The Indian Express, 2006).
AMP Energy Juice, India 7
Cloud 9
Cloud 9 entered the Indian energy drink market in 2008, and is second behind
Red Bull in the category claiming a 25-26% market share (Adgully Bureau, 2010).
This brand claims to give you “a high you’ll never want to come down from,” and
takes credit as the first Indian natural energy drink with pomegranate (Cloud 9,
2010). It is important to note that Cloud 9 is an Indian energy drink, as opposed to
Red Bull which dominates the market but is not based in India. Cloud 9 promises to help
consumers to lift their spirits, boost energy, perk up, party all night, work 30 hours a day and be
on the move. Cloud 9’s website did not list the specific ingredients, but claims to be the perfect
balance of energy and health. Cloud 9 targets 15-35 year olds with the tagline, “Do More!”
(Cloud 9, 2010). The Cloud 9 brand advertises on local trains and busses, on television, through
outdoor advertisements, as well as in bars, pubs and restaurants. Similar to Red Bull, Cloud 9
gained popularity by handing out free samples at colleges.
Power Horse
Power Horse is another energy drink currently available to Indian
consumers. The Power Horse brand claims to increase physical performance
and mental alertness, reduce stress recovery period, stimulate metabolism,
blood circulation, and the central nervous system. Additionally, Power Horse
claims to contribute to detoxification from harmful substances, strengthen the heart, and to be
a drink for all situations in daily life (Power Horse, 2010). Power Horse’s main ingredients are
Taurine, Glucuronolactone, Caffeine, Sucrose, Glucose, Inositol, Vitamin B12, B2 and B6, Ca-
Pantothenate and Niacin.
AMP Energy Juice, India 8
The brand positions itself for businessmen and businesswomen who need to excel and
perform for longer periods of time at work. Like other energy drinks, Power Horse is also
targeted at students who need to concentrate, athletes who need to regain energy, and anyone
who needs help getting through a tough day. The brand’s tagline is “Power Horse- Free your
energy!” (Power Horse, 2010). Power Horse is the only competitor that provides recipes for
mixing alcohol with the energy drink to make cocktails. This is an interesting approach,
considering many Indian consumers are weary of mixing alcohol and energy drinks due to
reports of negative impacts on health.
Sobe Adrenaline Rush
Sobe Adrenaline Rush, by PepsiCo India, was introduced to the market in
2008. According to PepsiCo India, Sobe Adrenaline Rush is a maximum energy
supplement aimed at helping consumers perform at their peak by energizing
their body and mind and charging up energy and alertness levels. This brand
tried to differentiate itself from others in the market through its citrus fruit
punch flavor and the fact that Sobe Adrenaline Rush was developed by a nutritionist to be a
maximum energy supplement rather than a product that just gives a mental kick (PRdomain,
2008). Sobe Adrenaline Rush is targeted at urban youth age 24 and older who are hardworking
and goal oriented. In terms of marketing, Sobe Adrenaline Rush was supported by strong point
of sale promotion and sampling efforts. Sobe’s key ingredients are Taurine, L-Carnitine, D-
Ribose, Inositil and vitamins B and C. PepsiCo is constantly looking to expand sales in the energy
drink market and introduce new products, creating an opening for the launch of AMP energy
AMP Energy Juice, India 9
juice, also a PepsiCo product, to the Indian market. Market share information is not available
for Sobe Adrenaline Rush and others in the category besides Red Bull and Cloud 9.
Burn
Burn, by Coca-Cola, was released to the Indian market In December 2009.
However, this was not Coca-Cola’s first attempt to enter the energy drink
market in India. The Coca-Cola company tried to launch its first energy drink
to the Indian market, Shock, in 2001 but was unsuccessful and took the
product off of the shelves due to poor sales performance (Datamonitor, 2009).
Coca-Cola launched Burn hoping to break the stronghold gained by established brands such as
Red Bull and Cloud 9. Burn’s key ingredients include Guarana, Taurine, Glucuronolactone,
Caffeine, Inositol and theobromine. Burn uses the tagline, “Can you take the heat?” to target
youngsters and socially active adults who are regulars at pubs, clubs, restaurants, bars and
discos. Burn has launched a TV commercial for advertising and has conducted sampling at high
end parties, pubs, resto-bars and clubs to gain brand awareness. The brand also created
innovative merchandise with the Burn logo, which is an iconography of a flame (Afaqs, 2009).
Coca-Cola has high hopes of gaining market share with Burn energy drink in India, and is trying
to avoid poor sales performance of the product by learning from past mistakes with Shock
energy drink.
AMP Energy Juice, India 10
Market Environment
The retail landscape in India is divided into
two sectors, organized and unorganized retail. The
majority of retail in India, 98%, is classified as
unorganized and is made up of counter-stores, street vendors, roadside peddlers, and Kirana
stores or family-run stores (Thathoo & Kacheria, 2007). Organized retail in India refers to
modern retail formats like supermarkets and hypermarkets that are prevalent in most
developed countries like the United States, and accounts for 2% of the retail industry in India. It
is essential to understand that the Indian retail market is in a state of flux, undergoing a
metamorphosis, with a huge potential to stand at par with other international retail markets,
and ready to meet the demands and standards required of a global market (Thathoo &
Kacheria, 2007).
Unorganized Retail in India
As previously stated, unorganized retail in India comprises 98% of the market. It is very
important to understand that the transformation that has taken place in the psyche of the
average Indian consumer is only partial because they will still continue to visit the
neighborhood kirana stores and other street vendors like they are accustomed to doing. The
convenience and personal services like home delivery, small credit facilities, and other last
minute purchases will still keep the unorganized neighborhood stores in business (Indian Retail
Forum, 2009).
Therefore, the main benefit of unorganized retail in India is convenience for the
consumer. Kirana stores and street vendors have the ability to cater to the local population in
AMP Energy Juice, India 11
the area, which is a driving factor for Indian consumers. Home-delivery service is provided for
any size shopping order and is delivered within minutes of calling the order in, with an itemized
hand-written bill. Credit is important to unorganized retailers because they tend to have a loyal
and limited consumer base, allowing them to sell goods on credit and settle the bill at the end
of the month. These stores are located within walking distance, demonstrating that proximity is
valued by Indian consumers (Thathoo & Kacheria, 2007). This is especially convenient for Indian
consumers who prefer to buy goods when they need them rather buying in bulk in advance.1
Organized Retail in India
Even though organized retail in India only makes up 2%, it has a very promising future.
Currently, the flood of products in the market coupled with a wealthier, more informed Indian
consumer have created the atmosphere for the entry of organized retail to tap into the $320
billion Indian retail industry (Thathoo & Kacheria, 2007). Obviously, the organized retail
segment in India is growing, but some important considerations need to be taken into account
in order to enter the organized Indian retail market.
Therefore, it is important for brands, such as AMP energy Juice, wishing to enter this
market to have a thorough understanding of the challenges and shortcomings of the highly
diversified Indian market. The Indian organized retail sector is an untapped space that is likely
to grow at a fast pace with potentials of high return for early market entrants. However, brands
looking to enter the market need to understand the factors and dynamics required for survival
1 This assertion is based on the fact that many Indians do not have access to refrigeration and make more frequent shopping trips to keep food from spoiling.
AMP Energy Juice, India 12
and growth in the Indian retail space, keeping in mind infrastructure challenges and other
regulations (Indian Retail Forum, 2009).
Even though the Indian organized retail industry is growing at a fast pace, there are still
a number of challenges that must be overcome. The first challenge to address is the lack of
sufficient supply chain management and logistics (Indian Retail Forum, 2009). This is a challenge
because the organized retail sector in India is fairly new and still trying to figure out the basics.
Other challenges include the gap in the demand and supply of the trained workforce, tax
structures that favor small retailers like kirana stores, different sales tax structures in different
states, and the high cost of real estate and limited land available in prime market locations
(Indian Retail Forum, 2009). These challenges and problems still need to be addressed by
organized retailers, but there are also positive factors that contribute to the growth of Indian
organized retail.
Better infrastructure and improved transportation systems have allowed the organized
retail sector to grow. As the infrastructure continues to improve in India, organized retailers will
be able to expand to different areas and have better methods of transporting goods to the
stores. Rising income also benefits the organized retail sector, because many Indians now have
more disposable income to spend on products that they want. This can be explained by the rise
of the women workforce, providing dual income for families, and a young population with
increased spending power. Furthermore, the expanded reach of mass media and
advertisements have led to rising consumer awareness and a new found desire for quality
products. Economic liberation and a rapidly changing lifestyle in India also contribute to the
AMP Energy Juice, India 13
organized retail sector (Indian Retail Forum, 2009). It is clear that these growth factors are only
going to continue to fuel the growth of the organized retail sector, demonstrating the
importance of a brand like AMP energy juice to enter this market at such a key time.
Cultural Analysis
India Hofstede Scores
The Geert Hofstede analysis of cultural dimensions in India produced the following
scores:
Power Distance (PDI) is 77 Long Term Orientation (LTO) is 61 Masculinity (MAS) is 56 Individualism (IDV) is 48 Uncertainty Avoidance Index (UAI) is 40
India’s highest score was in the category of Power distance. India’s power distance score
is higher than the world average, and much higher than the United States average.
Furthermore, India’s power distance demonstrates a high level of inequality of power and
wealth within Indian society. This level of inequality is supported by Indian leaders as well as
AMP Energy Juice, India 14
the Indian population in general. Therefore, the population of India accepts this high power
distance as a cultural norm of their society.
India’s second highest rank was in the category of long term orientation. Again, India
ranked higher than both the world average and the United States in this dimension. Indian
values that coincide with this high long term orientation score are thrift and perseverance. This
high long term orientation score also indicates that Indian culture values steady persistence and
working hard to accomplish tasks and goals.
Masculinity in India was the third highest ranking which measures just over the half-way
point and within a few points of the world average and the score for the United States. In other
words, India lands right in the middle and is not extremely masculine or feminine. Similarly,
India’s individualism ranking of 48 is also close to the middle of the spectrum, but is much lower
than the score for individualism in the United States.
Lastly, India’s lowest ranking dimension was uncertainty avoidance at 40, which is lower
than the world average of 65. India’s uncertainty avoidance ranking indicates that the Indian
population may be more open to unstructured ideas and situations. This score also indicates
that India is more accepting of uncertainty and more tolerant of things that are different from
what they are used to. This score also indicates that Indians are more relativist regarding
religion, which makes sense because of the acceptance of many religions in India. This Geert
Hofstede analysis gives insight into Indian culture to gain a better understanding and is helpful
in deciding how to market to India (Hofstede, 2009).
AMP Energy Juice, India 15
Indian Culture
India has a vast history that has helped to shape the culture that is still present in the
country today. It is not necessary to describe the complete history of India for the purposes of
this paper, but it is important to understand that the culture is deeply rooted in tradition. The
influences of Hinduism and the tradition of the caste system in India have helped to create a
culture that emphasizes established hierarchical relationships and Indians are always conscious
of their status in relation to other people. Interestingly, even though Indians have accepted
modern means of living and have worked to improve their lifestyles, their values and beliefs still
remain unchanged (Gupte, 2009).
Family life and relationships in India are very important to the population. Indians
typically define themselves by the groups that they belong to rather than their individual status.
Respect for elders is a major component of Indian culture, and elders are the driving force of
the Indian family (Gupte, 2009). Indians greatly value respect for one another and a sort of
helpful nature stems from this respect and leads Indians to want to help one another.
Additionally, Indian families are very accommodating and willing to accept change.
It has been said that Indian culture is about respecting elders, honoring heroes and
cherishing love. The culture has a very high level of tolerance and hence the arrival of so many
external cultures was not restricted, resulting in the diverse country that India is today. With
this in mind, it is clear that India’s high tolerance will be beneficial to the Indian market. This is
good news for AMP energy juice, demonstrating that the product will be launched in a culture
that is accepting and accommodating. Furthermore, the arrival of technology and the
emancipation of women in India demonstrates this high level of tolerance and has led Indians
AMP Energy Juice, India 16
to mingle with western concepts. Indian people are very flexible in the sense that they would
like to imbibe the changes dictated by western influence and yet clearly affirm their belief in
traditions (Gupte, 2009).
As far as the culture of business in India, people prefer to do business with those that
they know. Hence, the popularity of Kirana stores and small retailers close to home who can
deal with consumers on a more personal level. Additionally, when doing business in India, it is
advisable to go through a third party introduction because it gives immediate credibility (Gupte,
2009). With this in mind, AMP energy juice can establish credibility with Indian consumers
because the product is made by PepsiCo which has already been established in the soft drink
market in India, as well as the energy drink market through Sobe Adrenaline Rush. Informing
Indian consumers that the product is made by a well known and established brand will help the
product to be accepted in the market and will make the product more approachable for Indian
consumers.
Indian Demographics
In order to market AMP energy juice to the Indian market, it is important to understand
the demographics of the country. India is a diverse country that has 23 official languages and
more than 1,000 dialects (Wharton School, 2008). Therefore, marketing to India is not the same
as marketing to the United States because there are so many official languages and dialects that
are used by various Indian consumers. Additionally, 72% of the country lives in rural India, while
27% resides in urban areas (Census India, 2007). With this widespread distribution of people, it
is vitally important that marketers understand where consumers are in order to target and
reach them efficiently and effectively.
AMP Energy Juice, India 17
India is home to a population of 1,156,897,766 people, as of July 2009, and is currently
the world’s second largest country (CIA World Factbook, 2010). In fact, population projections
for the country anticipate the Indian population to reach 1.5 to 1.8 billion by the year 2050, due
to the 1.407% growth rate that is occurring (Rosenberg, 2009). With this in mind, it is clear that
entry to the Indian market is vitally important as soon as possible to gain brand awareness and
secure a customer base in this growing economy.
As previously stated, India has a large youth population. In fact, Indians make up a fifth
of the world’s citizens below the age of 20. This youthful, enthusiastic generation has been
nurtured on success and are eager to become Indian consumers. Indian youth are still deeply
rooted in Indian culture and traditions but are also connected to and curious about the outside
world. With basic needs satisfied and the future taken into consideration, these young
consumers consider purchasing products that represent ‘the good life’ (Wharton School, 2008).
Therefore, this young population is valuable to marketers because they are willing to spend
beyond their means in order to acquire the products that they desire.
Indian Consumers
In order to market to India’s large population, it is obviously critical to have an
understanding of Indian Consumers. Specifically, despite having a large consumer base that is
growing steadily, the market is complex and the propensity and capacity for Indian consumers
to spend depends on a unique blend of price and value (Wharton School, 2008). Brands that
understand this complexity will be most successful in the Indian retail market, which is
constantly growing. Through word of mouth, their own observations and the media, Indian
consumers can now visualize a better life and they demand it (Wharton School, 2008).
AMP Energy Juice, India 18
Since organized retail has grown in India, consumers have had to undergo a major
transformation from saving and purchasing only bare necessities to spending more money and
indulging themselves more often. Today, armed with a higher income, credit cards, exposure to
the shopping culture of the west and a desire to improve the standard of living, Indian
consumers are spending like never before (Thathoo & Kacheria, 2007). Therefore, the Indian
consumer mindset has shifted from saving and surviving to spending and thriving. This mindset
was created by the growth of organized retail, but this mindset also continues to fuel the
continued growth of the organized retail market. In other words, Indian consumers have
modified purchasing behavior because of organized retail, but their change in behavior
contributes to the continued expansion of the organized retail segment.
Tremendous Growth of the Middle Class in India
India is experiencing tremendous growth of the middle class segment. Specifically, real
average household disposable income has roughly doubled since 1985. Rising incomes in India
have caused an increase in household consumption, and a new Indian middle class has emerged
(Wharton School, 2008). Today’s Indian consumers that are being targeted by brands are
popularly known as aspiring India, or the middle income segment that is growing faster than
ever since the country’s economy has grown at an average of 5.7% per year (Wharton School,
2008). It is clear that aspiring India, which will be referred to as aspirants, are the ideal target
market for brands such as AMP Energy Juice that wish to enter the market in India. This middle
class segment is more willing than ever to contribute to the growth of the Indian economy by
purchasing more than just the basic necessities for the first time in their lives. Furthermore,
AMP Energy Juice, India 19
“As economic growth occurs, the destitute will transform into aspirants and
enter the consumption arena. Aspirants will become climbers with increased per
capita consumption, creating an automatic volume growth for several categories.
The socio-economic transformation of consumers offers a large window of
opportunity for marketers, as 100 million to 150 million consumers have just
begun their journey, while another 100 million are on the road to consumption”
(Wharton School, 2008).
Obviously, the middle class in India is only going to continue to grow in years to come,
making it the perfect time for brands to enter the Indian market and establish a strong
consumer base of brand loyalists. Moreover, as Indian income rises the shape of India’s income
pyramid will change drastically since more than 291 million Indians will move from desperate
poverty to a more sustainable life, adding a number of first-time consumers to the market
(Wharton School, 2008). Therefore, the middle class, currently located at the middle of the
income pyramid, is driving the growth of the consumer goods market. This relates directly to
the energy drink market in India, because increased income leads consumers to purchase
packaged beverages and energy drinks more frequently than ever before.
AMP Energy Juice Product Description
AMP Energy Juice, an extension of AMP by PepsiCo, was released to the
U.S. market in February 2010, and is currently only sold in the United States.
AMP Energy Juice claims to answer the call of energy-deprived souls
everywhere. The new AMP Energy Juice is 100% juice infused with all the
AMP Energy Juice, India 20
power of the original AMP energy drink. This functional drink is also an excellent source of B
and C vitamins. AMP Energy Juice is a great option for those looking to get a boost of energy
and is made with a stimulating blend of Taurine, Ginseng, and Guarana without any added
sugar. AMP Energy Juice was created for consumers who wanted something that went beyond
traditional energy drinks. AMP Energy Juice is available in two flavors, orange and mixed berry,
which are available in 12 oz. single serving re-sealable bottles.
Marketing Communications Objectives
Increasing AMP Energy Juice brand awareness in India
Objective:
To obtain at least 10% of the current functional drink market share by the end of
2011. This is a realistic goal for AMP Energy Juice considering the fact that 2
competitors, Red Bull and Cloud 9, currently have the largest share of the market.
Current situation:
AMP Energy Juice is not currently available in the Indian market. There is potential
to succeed in this market, which is growing at a rate of 50% per year, due to the
youth centric population, increase in the consumption of functional drinks and the
current trend for health and wellness.
How this will be done:
The launch campaign for AMP Energy Juice will focus on the fact that AMP Energy
Juice is 100% juice infused with all the power of regular energy drinks, without
added sugar. Stressing this benefit and the healthy ingredients of the drink will help
AMP Energy Juice, India 21
to differentiate AMP Energy Juice from competitors such as Red Bull, Cloud 9, and
other carbonated energy drinks.
Increasing AMP Energy Juice brand awareness among the target audience through promotions
Objective:
It is crucial to have AMP Energy Juice promotions in India in order to successfully
enter the functional drink market. Above all, promotions will be important to ensure
that both urban and rural Indians are exposed to the product. Rural India is essential
to this marketing campaign, considering approximately 70% of the population live in
rural areas.
Current situation:
AMP Energy Juice does not currently have any promotions because the product has
not been launched to the Indian market yet.
How this will be done:
Sampling will be a key way to expose the target audience to AMP Energy Juice. This
is the ultimate promotional tactic because it can be used to introduce the drink to
the target, build trial and ultimately get new users. Sampling will be done in
supermarkets in key urban areas. Additionally, samples will be distributed in rural
India via AMP Energy Juice vans that travel around. Event marketing will also be
used to launch the product, via the 2010 Commonwealth games in Delhi.
AMP Energy Juice, India 22
Increasing awareness of AMP Energy Juice through marketing media channels
Objective:
AMP Energy Juice will build brand awareness by using all IMC tools to target Indian
consumers, both urban and rural, to reach as many consumers in the target
audience as possible.
Current situation:
AMP Energy Juice does not currently use each IMC discipline to reach consumers.
How this will be done:
This will be done using advertising, public relations and event sponsorship, sales
promotions, direct marketing and internet marketing. Mobile marketing will also be
used to reach the target audience, since mobile subscribers in India are growing at
nearly 100% each year (Prabhudesai, 2007). Social media will also be used to reach
the target audience.
To position AMP Energy Juice as the preferred functional juice drink in India
Objective:
In order to make a successful entry into the functional drink market in India, and
stay there, AMP Energy Juice will need to differentiate itself from the standard
carbonated energy drinks that it will compete with. This will be done by positioning
the product as a healthy beverage that has the added boost of energy drinks,
without the added sugar.
Current situation:
AMP Energy Juice, India 23
AMP Energy Juice does not currently have a position in the Indian market. However,
Indian consumers will want to try the product because it is a new kind of functional
drink and is different from other energy drinks currently available in India.
How this will be done:
Advertising will focus on the healthy benefits of AMP Energy Juice. This will be
beneficial because Indian consumers are becoming increasingly health conscious.
Target Audience Analysis
AMP Energy Juice will target young consumers (18-35), both male and female, urban
and rural, who lead a busy lifestyle. These consumers are hardworking and goal oriented. This
includes students, busy professionals, athletes, party goers and basically anyone who needs an
added boost of energy to get through their busy day or night. These consumers are also
increasingly health conscious. These young consumers have increased disposable income and
tend to have a spending approach rather than a saving approach like previous generations.
Strategies and Tactics
Sales Promotion
Sales promotion is the most important IMC tool for AMP Energy Juice. Following Red
Bull’s example, the market leader, AMP Energy Juice will use sampling to get the attention of
their target audience. By distributing samples of the new AMP Energy Juice, Indian consumers
will be introduced to the product. Additionally, sampling allows consumers to actually taste and
try the product which will generate new users for AMP Energy Juice. It is vitally important that
samples are distributed in supermarkets and hypermarkets in urban areas, as well as in rural
AMP Energy Juice, India 24
areas where the remaining 70% of the population resides. Full re-sealable bottles of AMP
Energy Juice, in both the orange and mixed berry flavors, will be handed out. It is also important
to make sure that the drinks are chilled so that consumers get the right first impression of the
drink. Here are the specifics for culturally appropriate sales promotion of AMP Energy Juice:
Samples will be distributed to young consumers at
supermarkets, hypermarkets, and malls. Due to their
location, these establishments will help to reach young
consumers in urban areas. A booth will be set up outside of
stores and in malls to attract attention to the sample
distribution. AMP Energy Juice reps will also explain the health benefits of the drink to
consumers.
Stickers of the AMP logo will be placed throughout the store,
increasing in size as consumers get closer to the product.
A point-of-sale display will surround AMP Energy Juice
products, in the refrigerated section, to draw attention. Coupons will also be available
via this display.
AMP Energy Juice will also distribute samples
in the most populated areas of rural India. This
will be done via AMP Energy Juice vans that
drive through the country, stopping in
populated rural areas, which will be set up in
advance. The van tour will be advertised via
AMP Energy Juice, India 25
print, radio, and television to inform consumers when AMP Energy Juice vans will be in
their area. This mix of communication channels will ensure that the majority of rural
Indians are reached, since many may not have internet yet. The van will park in various
locations to hand out the samples for a 2 hour period in each location, or until the
specified amount of drinks for that location has been distributed. Again, the health
benefits will be stressed to consumers. These vans will also act as moving billboards for
the brand.
AMP Energy Juice will also appeal to rural Indians by
leveraging the power of Kirana stores. Samples will
be provided to various small stores in rural areas to
be distributed after the AMP Energy Juice van tour
has visited the area distributing samples. In doing
so, consumers who missed the van will still be able to sample the product, and the
brand can also form relationships with store owners for future distribution and sales of
AMP Energy Juice.
Advertising
Advertising will be done in a variety of ways to spread awareness, generate trial and
ultimately generate users and increase sales in India. Again, AMP Energy Juice will make sure to
target both urban and rural consumers. The following tactics are culturally appropriate for
advertising in India:
AMP Energy Juice, India 26
Wall paintings will be used as a way to advertise to Indians in rural areas. This is a great
way to attract young consumers who live in rural areas. A graphic of a wall painting is
provided as an example.
AMP Energy Juice will advertise on outdoor billboards in major cities. These billboards
will be useful to introduce the product in urban areas and to inform consumers of the
benefits of AMP Energy Juice.
Print advertising will be used to reach both urban and rural Indian consumers. This is a
great way for AMP Energy Juice to advertise, considering the fact that Indian newspaper
advertising is not only healthy at present, but is also expected to grow at a respectable
9% over the next 4-5 years (Prabhudesai, 2009).
AMP Energy Juice will also utilize online advertising through
banner ads on Yahoo! India, whose primary user base is in
the 18-34 age group, AMP’s target audience. This is a great
way to reach this young target audience, especially because
72% of young people in India access the internet on a regular basis (Prabhudesai, 2009).
This is also beneficial because growth of the internet is also taking place in rural areas.
Television ads will also be utilized. This will be beneficial because many Indians have
televisions, even in rural areas, and the television industry is projected to grow at the
rate of 15% between 2010-2014 (Prabhudesai, 2009).
Lastly, radio advertisements will air on popular stations, for the target audience,
expressing the product benefits of AMP Energy Juice and encouraging young consumers
to try it. Radio has excellent reach in both urban and rural India.
AMP Energy Juice, India 27
Public Relations and Event Marketing
AMP Energy Juice will also utilize public relations and event marketing for the launch
campaign. News releases will be utilized to spread awareness to the target audience about the
launch of the new AMP Energy Juice. These news releases will inform consumers about the
healthy benefits of the product, specifically that it is a 100% juice infused with all the power of
traditional energy drinks, without any added sugar, and the drink provides an excellent source
of B and C vitamins. The stimulating blend that includes taurine, ginseng and guarana, will also
be discussed and the effects of these ingredients on the consumer will also be discussed. It is
important to explain the ingredients due to the current trend of health consciousness among
Indian consumers in the target audience. Event marketing will also be used to launch AMP
Energy Juice by being a co-sponsor for the 2010 Commonwealth Games held in Delhi. This is the
perfect event for AMP Energy Juice, which will be held October 3-14, 2010, for the following
reasons:
Delhi is the largest metropolis by area, and the
second largest metropolis by population in India,
home to roughly 15 million people. This provides a
great reach for the target audience.
This will be the biggest multi-sport event ever
conducted in India.
AMP Energy Juice, India 28
The director of the organizing committee for the 2010 Commonwealth Games estimates
that the games alone will generate about $5 billion (US dollars).
The games are also viewed as a matter of opportunity and business which will give India
return for all investments in a very efficient way.
With a fast-growing population, Delhi is a mega-city experiencing rapid economic
expansion, and Delhi is committed to legacy through venue development and access
and sport promotion to India’s young generation.
This is the perfect event to launch the product because there will be a huge population
present, especially young people who desire energy drinks, to spread awareness and
generate trial.
Direct Marketing
Direct marketing will be utilized via direct mail. This is a great way to reach both urban
and rural Indians considering the postal system in India is one of the best in the world
considering the vastness of India’s geography. AMP Energy Juice will benefit from direct
mailing, especially because mail is delivered twice daily. Mobile marketing will also be utilized
by AMP Energy Juice to reach the target audience. This mobile marketing strategy is culturally
appropriate to the target audience for the following reasons:
SMS text messaging continues to grow in
popularity among young people.
There are a total of 391.76 million wireless
subscribers in India (Prabhudesai, 2009).
AMP Energy Juice, India 29
Wireless phones are growing at close to 13% quarter on quarter in India.
In 5 years, India has gone from
33 million mobile subscribers to
close to 400 million,
demonstrating that this
provides excellent reach to the
target audience (Prabhudesai,
2009).
Mobile advertising is more personal and can be better targeted.
Mobile advertising will reach 309.43 million urban
subscribers and 120.29 rural subscribers, which
provides great reach to the target market throughout
the country.
Most of the growth in mobile subscriptions is taking place in rural areas, providing
another way to reach these consumers.
Internet and Social Media
AMP Energy Juice does not currently have its own website, so the brand will launch a
new website. Furthermore, social media, specifically Orkut and Facebook, will be used by AMP
Energy Juice to reach the target audience. Social media is a great way to inform consumers
about the product and to allow them to interact with the brand. Even though the entire Indian
population does not have the internet, this will be a great way to reach the target audience
AMP Energy Juice, India 30
who are younger and tend to use the internet more. The use of social media is culturally
appropriate for the following reasons:
Orkut, the leader of the online social scene in India, has
over 17 million unique visitors per month.
Facebook holds the number 4 slot of among all websites
in India, with nearly 13 million unique viewers per
month, resulting in a Facebook office opening in India due
to this success (Amar, 2010).
This is a great way for Indian users to find out about the
product, events, and other information they would want to know about AMP Energy
Juice.
A huge portion of the India’s roughly 60 to 65 million internet users are participating in
top social media portals (Amar, 2010).
Social media marketing via online community creation is also a rising trend in India.
Summary
The market and cultural analysis provided give insight into India’s current business
situation and competitive climate. Additionally, this analysis describes Indian consumers and
culture, which must be understood in order to successfully enter the market in India. Each of
the culturally appropriate objectives, strategies and tactics provided above will allow AMP
Energy Juice to successfully enter the market in India.
AMP Energy Juice, India 31
References
Adgully Bureau, . (2010, February 1). Cloud 9:we are more than ready to take on
any national or international giants. Retrieved from http://www.adgully.com/agtalk/cloud-9-we-are-more-than-ready-to-take-on-any-national-or-international-giants.html
Afaqs, V. (2009, December 4). Coca-cola launches energy drink, burn. Retrieved
from http://www.marketing-interactive.com/news/16753
Amar, S. (2010, April 4). Social media destination: india. Retrieved from
http://www.internetevolution.com/author.asp?section_id=687&doc_id=190530
Census of India. (2007). Retrieved from
http://censusindia.gov.in/Census_Data_2001/India_at_glance/rural.aspx
Chamikutty, P. (2008, November 4). Will Energy drinks become the taste of new
generation?. Retrieved from http://www.news.org.bd/?p=8570
CIA world factbook, Initials. (2010). Retrieved from
http://www.indexmundi.com/india/demographics_profile.html
Datamonitor.. (2009, June). Soft drinks in india.Retrieved from library database
Datamonitor, Initials. (2009, November 27). Coca-cola: a second shot at energy
drinks. Retrieved from http://www.datamonitor.com/store/News/coca_cola_a_second_shot_at_energy_drinks?productid=6BD05C0B-EA89-4593-BD39-9C95310FB3E7
Gupte, K. (2009). India culture. Retrieved from
http://www.indianchild.com/culture%20_1.htm
Hofstede, G. (2009). Geert hofstede cultural dimensions. Retrieved from
http://www.geert-hofstede.com/hofstede_india.shtml
Indian retail forum, . (2009). Retrieved from
AMP Energy Juice, India 32
http://www.indianretailforum.com/retail-india/organized-retail-in-india.html
The Indian Express.. (2006). Brand strategy. Retrieved from
http://www.expresshospitality.com/20060731/management03.shtml
The Indian Express, Initials. (2009). India gulps. Retrieved from
http://www.expresshospitality.com/20090831/highspirits01.shtml
Khan, I. (2010, April 5). Drink worth taken. Retrieved from
http://www.fnbnews.com/article/detnews.asp?articleid=27309§ionid=49
Maji, J. (2009, April 2). Energy drink market set to double in next two years.
Retrieved from http://www.mydigitalfc.com/companies/energy-drinks-market-set-double-next-two-years-850
Mobile Marketing Watch. (2009, September 23). India youth love mobile ads.
Retrieved from http://www.mobilemarketingwatch.com/india-youth-love-mobile-ads/
Prabhudesai, A. (2007, November 2). Need to reach rural indian consumers? Think
mobile advertising. Retrieved from http://trak.in/tags/business/2007/11/02/rural-indian-consumers-mobile-advertising-reach/
Prabhudesai., A. (2009, June 3). The Future of indian print media advertising.
Retrieved from http://trak.in/tags/business/2009/06/03/the-future-of-indian-newspaper-print-media-advertising/
PRdomain, Initials. (2008, October 30). Energize with ‘sobe adrenaline rush’ the
new offering from pepsico. Retrieved from http://www.prdomain.com/companies/P/Pepsi/newsreleases/2008103167403.htm
Rosenberg, M. (2009, July 27). India’s population. Retrieved from
http://geography.about.com/od/obtainpopulationdata/a/indiapopulation.htm
Shanbaug, A. (2010, April 5). Energy drink companies take 'health' route to gain
market. Retrieved from http://in.news.yahoo.com/248/20100405/1582/tnl-energy-drink-companies-take-health-r.html
Thathoo, R, & Kacheria, R. (2007, June 12). Retrieved from
http://cs.stanford.edu/people/thathoo/retail.pdf
AMP Energy Juice, India 33
Wharton school of the university of pennsylvania, Initials. (2008, May 29).
Retrieved from http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4289