Identifying problems In Paperboat RTS beverages

3. Hector Beverages
PaperBoat's first production plant was
established in Manesar in 2010. However, with
increase in demand, the Manesar plant couldn't
keep up the production.
The plant also didn't have the facilities
for the manufacture of coconut water and sugar
cane juice, drinks that the company was looking
to launch. This led them to set up a second larger
manufacturing unit in Mysore, Karnataka in 2014
and then headquarter shifted from gurugram to
mysuru. While the Manesar plant has a
production capacity of 80 bottles/minute, in the
Mysore plant it is 380 bottles/minute.

4. Products

5. Marketing Mix
• Focus on traditional authentic Indian
mix.
• 14 Flavor of paperboat available in
market.
• Cost of single pack Rs.20-25 and for
1L Rs.80-100 & Discount provided on
bulk purchase
• Promotion was based on emotional
appeal to consumer by revoking the
pleasant childhood memories. With
tagline ‘Drinks and Memories’.
• Spout Pouches Packaging &
Innovative Strategies for Promotions.

6. Competitors
Major competitors-

7. 1. Paper Boat’s major issues were-
 Distributors pushing the product more in the general trade
and not modern trade when actually the product is
positioned to be a modern trade product
 Distributors lacking presence in modern trade
 Packaging not meant for general trade

8. Solutions-
Develop a strong sales and distribution network in the modern
trade area
 Reduce the communication gap and state clearly to the existing
distributors about the positioning of the product
 Performance based incentives for distributors to encourage them
to sell more in the modern trade
 Could introduce a mass market variant of Paper Boat with
modifications in packaging and selling this new mass
market variant through the existing strong chain of distributors
experienced in general trade to recover the losses

9. 2. What measures to take for instant
results to create more visibility for
this product?
• More emphasis of youth on health food as they are
concerned about their health
• Sponsorship in fashion shows and college festivals.
• Play with the packaging and price.
• Making the retailer aware to put the product in front so that it is
easily visible.
• Distributors and sales men should from time to time take the pain
of finding out the requirement of retailers and the problem they are
facing.
• Advertisement and publicity in the untapped market.
• Introduce content with info graphics and hash tags.
• Social media promotion

10. 2. Conflicts Faced by Hector
Beverages in the distribution
channel
• Hector beverages offered more
margins/commissions for Paper boat
• Existing distributors were strong in the general
trade and did not have much experience in the
modern trade

11. 3. how
the brand can come out of this crisis?
• Use Facebook posts to relive childhood memories. Carefully building
customers for life, by allowing them to creatively interact with the brand.
• Series of front page advertisements in leading newspapers.
• Tie up with domestic airlines, to be served as a mid flight refreshing drink.
• Become beverage partners for events like Marathons or Run For a Cause
etc. or even sport tournaments the Kabaddi League.
• Increase retail shelf space compared to leading players.
• Improvement in Supplychain