2. Name of the Product: Jaul
Type of Product: Green Coconut Water
Ingredients: Pure natural green coconut
water, Sugar, mineral salts, vitamins C.
Container: Stylish glass bottle
Container size: 250 ml, 500 ml, 1 Litre
Product Price: 250 ml for Rs. 12, 500 ml for Rs.
18, 1 litre for Rs. 38
3. Direct competitors: Indirect competitors:
1. Coconut water 1. Diet pepsi
2. Coconut powder 2. Diet coke
3. Tang
4. Rasna
5. Tropicana
6. Dabur- Real
7. Branded mineral water
8. Amul- butter milk
(chaas)
4. The green coconut water will be very much
refreshing and provide great support to the
sick and health conscious people.
Ingredients: pure natural green coconut
water, sugar, vitamin C, mineral salts.
Hot climate areas: Mumbai and Delhi.
6. Population size: Mumbai, Delhi, Kerala and Goa
Market trend:
1. Health conscious people basically the sports person
are one of our largest target market.
2. Our total population is young. This is a significant
number that we have to concern about them and
provide product, which is fit for them.
They prefer to drink :
1. Juices like Tropicana, Real fruit juice, etc.
2. Mineral water like Bisleri, Aqua, etc.
8. These companies can try to entrance our market by
launching new product lines to compete us.
Yet, we have distinct competitive advantage i.e our
product is still brand new.
The other companies will take sometimes to enter
into the market.
Till then we can have a monopoly market condition.
The other advantage that we have is lower price.
Will sell products in reasonably lower price then other
competitors do.
9. To compete with the major competitors we can adopt the
following measures:
1. Providing the best service to create high customer
satisfaction
2. Reasonable and acceptable pricing
3. Promising and providing top quality product
4. Launching highly effective mass promotional activities
5. Continuous innovation and modification of the products
6. Creating and maintaining long term customer relationship
7. Creating “Brand Loyalty” among the target consumers
10. Strengths:
1. Available input materials
2. Low production cost
3. Technological and marketing knowledge
4. Strong distribution channel
5. Easy manufacturing process
6. Reasonable price
Weaknesses:
1. It is easy to copy the idea by others
2. Taste differ from the natural green coconut water
3. Green coconut water cannot be preserved for longer
period
12. It describes the ease of entry for competitors to the
market and start competing, and barriers to entry
which may exist in the industry.
The company named Parle Agro, which sells fruit
drinks like Frooti, Appy, LMN and Saint Juice, said it is
extending its Bailley packaged drinking water
through the new product.
The firm said the move is in line with its vision to be
present across all beverage categories.
Still Real and Tropicana dominate the market with
strong brand name.
13. It describes the ease with which a product or
a service can be substituted or
replaced, especially made cheaper.
Bottled water, soft drinks, coffee, tea, non
carbonated drinks.
Other substitutes are
Frooti, Slice, Maaza, LMN.
14. Major industry players:
(Tropicana, real fruit juice)
Juice industry dominated by big players like
Tropicana and real.
Tropicana and Real juices are the main
leaders of Rs150crore juice industry where
Dabur’s Real owns 57% of the organized
market
15. It describes the position of the seller and
determine whether few or many suppliers
exist.
Sugar, packaging materials and equipment.
Many sources for sugar in the open market.
There are large number of potential suppliers
in the market, therefore, the prices become
competitive.
16. It describes the position of the buyer sand
determines how much customers can impose
pressure on margins and volumes.
Fast food joints, vending machines, supermarkets
and mass merchandising channels.
Fast food joints are important avenue to build
brand recognition and loyalty.
18. Our company wants to develop and introduce a
new Product.
So, we have gathered information through in-
depth interviews.
We made a survey of the market to have a clear
idea about our market, our customer
demand, needs and wants.
This information helps us to know about the
current market and prospects of our new
product.
19. Jaul” wants to satisfy its customers need. Our
first consideration is to provide the best product
to its customers. That’s why we offer three
different sizes of bottle with different prices for
its different segment of customers.
250 ml: The lowest price for the rural mid social
class and individuals.
500 ml: Its target the sick people and tourist
1 litre: For a small family.
20. We have observed and analyzed the market and based
on the nature of the market we segmented the market
in the following sectors:
1. Geographic Segmentation: Basically those places
where we get coconut water. Example: Kerala and
Goa. Even those places where the climate is hot like
Mumbai and Delhi.
2. Demographics: Individuals
Family
Sportsman
Business buyer
21. Psychographics: Higher class
Higher mid class
Middle class
Behavioral: Sick people
Health conscious
Sportsmen
22. Analyzing all the segments, we decided our
target market according to our product category.
The target customers of “Jaul” are sick
people, health conscious people, sportsmen and
tourists.
The company decided to charge Rs. 12 for 250
ml bottles, Rs. 18 for 500 ml bottles and Rs. 38
for 1 Litre bottles.
23. Therefore charging the mentioned prices are
justified. The following graph gives a clear
idea of our target market:
1. Health Conscious - 32%
2. Sick people - 43%
3. Tourist - 3%
4. General people - 22%
24. Health conscious: Health conscious people basically the sports
person are one of our largest target market. One third of our total
population is young. About 5 million people of this total number
are health conscious. They spend about Rs. 500 in a month in
average.
Sick people: Sick people are one of our major considerations.
More than 1 million children suffer from diarrhea that need liquid
food. Not only child but also the adult might suffer from those
types of problems.
Tourists: Every year a huge number of tourists visit India. We want
to provide them with “Jaul”.
General Customers: Besides the above segments, the general
customers will acquire a significant portion of our target market.
25. Our objective is fully professionalized and we
have the target to provide service in a familiar
atmosphere and with greater warmth
26.
27. Name of the Product: Jaul
Type of Product: Green Coconut Water
Ingredients: Pure natural green coconut
water, Sugar, mineral salts, vitamins C.
Container: Stylish glass bottle
Container size: 250 ml, 500 ml, 1 Litre
Product Price: 250 ml for Rs. 12, 500 ml for Rs.
18, 1 litre for Rs. 38
28. We have decided to set a reasonable price for our product when
we will develop it. We considered many factors in setting the
pricing policy. We will describe a six-step procedure:
1. Setting the pricing objectives
2. Determining Demand
3. Estimating costs
4. Types of cost and level of production
5. Analyzing competitor’s costs, prices and offer
6. Selecting a pricing method
29. Our company has decided where it wants to
position its market offering. We have chosen
our objective to maximize market share. We
believe that a higher sales volume will lead to
lower unit costs and higher long-run profit.
We have set the lower price because we
assume that the market is price sensitive. Our
overall objective is to capture the maximum
market share by setting lower price.
30. Determining Demand:
1. Each price will lead to different level of demand and therefore
have a different impact on company’s marketing objectives.
Estimating costs:
1. We have estimated the cost and want to charge a price that
covers the cost of production, distribution and selling the
product, including a fair return for its effort and risk.
Types of cost and level of production:
1. There are two types of cost: a) fixed and b) variable. In our new
product development project fixed cost is Rs.2,00,00,000.
Fixed cost includes- machinery, monthly bills, and salaries of
employees and so on, regardless of output.
2. There are some variable costs like-cost of bottle, packaging
and so on. These costs tend to be constant per unit production.
We have estimated that per unit variable cost is Rs. 6.3 for 250
ml, Rs. 12.6 for 500 ml and Rs. 24.4 for 1 litre.
31. Analyzing competitor’s costs, prices and offer:
1. We have analyzed our competitors’ price and
found that coconut water charges Rs.10 and
coconut powder packets charges Rs. 25.
Selecting a pricing method:
1. We have chosen the target costing method to set
price for our product; pricing that starts with an
ideal selling price based on customer
considerations, then target cost will ensure that
the price is met.
32. To acquire a strong position in the
market, we need to give special emphasis on
effective promotional activities. In order to
get the maximum market share we will have
to use all four tools of marketing promotion.
Specially, advertising through mass media
will support us a lot.
33. Advertising:
1. We initially will give more emphasis on paper ads and TV
commercials. Because, advertising through these media is
the most effective way to reach the customers and position
our product in their mind. We are anticipating that this will
have a massive impact on the teenagers and other
enthusiasts. Few neon signs and bill boards of “Jaul” also
can be set up in some core points of the city. We hope to
reach 75% of our customers through effective advertising.
Personal Selling:
1. Though personal selling skill is not that much effective for
convenient products like “Jaul”, we will inspire and train the
sales persons of the retail stores to convince people to buy
our product when they will come to buy any drinks item.
The sales persons will inform the consumers about the
cool refreshing taste of “Jaul” and about the nutritious
aspects. We hope that will play a significant role to
increase our sales.
34. Promotional Tools:
1. We have also planned to apply some promotional tools. Initially
for sometimes we will distribute our product at 50% discount
just make our new product familiar with the customers. This will
be the market-testing period for our product. Later, we may
apply the strategy of giving gifts, lucky coupons, tour tickets
depending on the market and competitive situations.
Public Relations:
1. We have future plans to hold seminars, commit social
development, supporting social activities, to arrange cultural
functions and mobile game shows for publicity purpose.
Distribution Channel
1. In the initial stage, we will distribute the products with our sole
distribution channel. When our market will spread out, we will
distribute our products through dealers. We will set our own
outlets in few core market positions. When we will go for mass
marketing, we will supply our product nationwide through
dealers. Our dealers will take the products to every district of
the country. “Jaul” will be available in all retail stores of the
country.
35. Locations
1. We will set our manufacturing and other working areas in
convenient locations. We will prefer the locations to set up our
manufacturing firms, warehouses and inventories in different
core business points of the country where it will be easier to
both collect the raw materials and transport the final goods to
the market.
Human Resource
1. The board of directors will be responsible for the recruiting
activities. Recruiting will be done through written tests
followed by interviews.
Technological Aspects
1. To create and innovate new quality products we need to use
advanced technology. We need high tech machineries imported
from the foreign countries. Not to mention, skilled people to
operate them. We have already studied all the technical
aspects and prepared a list of instruments and their costs. The
machinery will be collected when required.
The green coconut water will be very much refreshing and provide great support to the sick and health conscious people.
The Soft drink industry is very much competitive. Many soft drink and juice companies have acquired a significant portion of the market. But the unique features of “Jaul” will take it far beyond the reach of the competitor. Because, no one has yet thought about selling green coconut water in such a specialized way.
The green coconut water will be very much refreshing and provide great support to the sick and health conscious people.