MARKETING MANAGEMENT ASSIGNMENT

FMCG COMPANY- BRITANNIA

Group members
Naihal Purohit (20202220)
Nancy Purohit (20202219)
Nandita Kapoor (20202229)
Shruti Goyan (20202228)
Sushil Patel (20202236)
 TARGET GROUP(S)

FRESH is a ready-to-drink tributary of BRITANNIA which is also known as “King of Biscuits”. It is

targeted at the youth population in the age group of 15-39 years. This age group consists of working
professionals and students. These working professionals and college students are the target segment
for FRESH health drinks.
With a population of 1.3 billion India is one of the largest consumer markets across the globe. It is
also demographically one of the youngest with around 50% of its population underneath the age of 25
and around 65% below the age of 35.
Rising consciousness about heart and weight-related health issues, especially among young adults, has
significantly pushed the consumption of packaged health drinks and growing at a faster pace as
compared to carbonated drinks.
For health-conscious people who are averse to alcohol, our products “Iced Green Tea” and “Energy
drinks” are the perfect substitutes. Consumer profile also includes college-goers who feel need to stay
up late during exams, working class professionals who need extra boosts of energy and athletes who
need energy after exhaustive field activities.
Hence, we have considered the young and adult middle-class people as the main target group for our
marketing strategy.
 CRAFTING THE MIX

1. INSIGHT
❖ Consumer Insight
The main consumers of Fresh are adolescents and young people. At work, at gym, at night club it can
be consumed anywhere at any time, making it easy for consumers to buy. The products that fresh
provide are highly nutritious with natural resources that can boost up with full energy.
❖ Product Insight
FRESH ENERGY is made up of natural caffeine and manufactured in India. We are going to market
the product as a health drink that promotes energy.
ICE TEA COOLER is a product which is quite unique in market.
Health has been an increasing trend in today‟s society and FRESH brand Drinks can be a positive
addition to one's daily diet.

2. PRODUCT
We have launched two products:

● FRESH Iced Green Tea

Bottled and chilled green tea variant containing fruit flavors.

Green teas usually are hot beverages and don’t have many cold versions.

By this initiative, we have tried to introduce Green Tea as a chilled beverage to our
customers.

● FRESH Energy Drink

Fortified with essential nutrients and herbs that help boost up anyone with a lull in their
energy and focus.
Healthy alternative to a high sugar soda or energy drink. It comes in a convenient 350mL
aluminum can, perfect size to throw in a purse, backpack, gym bag, or brief case.
3. PROPOSITION
Both of the FRESH products are non-alcoholic health drinks with natural sources of caffeine and is
targeted primarily at youngsters in urban areas. Although the target age group is 15-39-year-old,
currently the product has a greater appeal to the younger end of the group.
As the market has been dominated by foreign brands, FRESH energy drink’s indigenous origins can
act as the differentiating factor. Likely to be popular among the youth in the urban centers of the
country like Mumbai and Goa, it should be perceived as a funky, cool and in-time with any age group,
yet healthy drink, unlike its competitors.
As for the FRESH Iced Green Tea, it is a unique product with not many competitors. It will attract
the fitness freaks in the targeted age group who are looking for a tastier yet healthy variant for green
teas.
Keeping in mind that for a new brand to step into the market of ready to drink market, we have tried
to make eye-catching packaging with the competitive pricing and introduction of new and different
product as our branding and marketing power.

4. BRAND
The name ‘FRESH’ gives preludes to the ambitions of the company as it plans to surpass all its earlier
successors with fresh initiatives and aim for higher and bigger goals in the future. It also signifies how
the company is dedicated to provide a new and fresh perspective to create healthier yet cheaper
drinks.
The name also signifies a light, happy and elevated state of mind which is calmness, alertness backed
with stamina and concentration, in which the consumer finds themselves after having ‘FRESH energy
drinks’ or ‘FRESH Iced Green Tea’ and yet it is not intoxicating or bland in taste.

5. PRICE
FRESH currently provides competitive prices in the market for both its products.
● The “FRESH Iced Green Tea” has been priced at Rs.40 per 200 mL bottle.
● The “FRESH Energy Drink” has been priced at Rs.80 per 350 mL can.
The above prices for both our products are comparatively lower than our alternatives. We would like
to see the company branch out and start selling bulk packs in convenience stores, and vending
machines like its energy drink competitor and market leader Red Bull.
 OPPORTUNITY SIZING
Opportunity size = (No. of potential customers that would be fit for our product) *
(Average sale value) ………………………………..(A)

= 16.35Cr * 880 Qty (From B and C)

= 14,388Cr

⮚ The first part of the equation (A) can be found by determining the No. of potential customers that
would be fit for our product

● The age group targeted by us for our FRESH brand is between 15-39 years which is
approximately 58.4Cr.
● This target group is comprising of both lower- and upper middle-class population of
India.
● At present, we are targeting only the upper middle-class population in the given age
group which is about 28% of India’s population.
58.4∗28
Thus, the No. of potential customers that would be fit for our product =
100
= 16.35 Cr. ……(B)
⮚ The next part of the equation (A) can be found by determining the Average sale value
● By research, we have found that an average rural person spends approx. Rs. 113
monthlies on beverages whereas, an average urban person spends approx. Rs. 236
monthlies on beverages.
● If we look at the prices of our products, then
o Energy drink = Rs. 80
o Iced Green Tea = Rs. 40
● These prices are much cheaper than the same products offered by any other brands
present in the market.
● Making an assumption that a person consumes about 12 quantities of green tea and about
5 quantities of energy drinks per year, then

the Average sale value = (5*80) + (12*40) = 880 qty. …………………(C)

Information Source

● http://mospi.nic.in/› default › filesPDF

Youth in India - MoSPI

● https://www.thehindu.com/news/national/how-much-do-indians-spend-on-food-and-other-basic-
amenities/article30088427.ece
 MIX DEPLOYMENT

INVESTMENT

1. COST OF PROJECT:

The project shall cost ₹ 609.2 lacs as detailed below:

Sr. No. Particulars ₹ in Lacs

1 Land 72.0

2 Building 55.0

3 Plant & Machinery 102.0

4 Furniture, other Misc. Equipment 08.5

Other Assets including Preliminary / Pre-operative

5 10.2
expenses

6 Margin for Working Capital 361.5

Total 609.2

(Data taken from project report uploaded on standupmitra.in)

2. PROMOTION ₹ 60.92 Lacs

Reason: When a company comes in the market with its new products, it has to deal with several
challenges. People love to buy from trusted brands that have already captured the market. So, it is
very difficult for a new product to beat the huge competition and convince people to buy his/her
products/services.

Through different business promotional activities, we make people aware of our new
products/services. A knowledgeable customer always loves to buy our products/services if we meet
their specific needs very well.

Promotional activities-
1) Digital marketing (like social media advertising, ads on television, etc.)
2) Free sampling
 3) Print media advertising (like magazines, billboards)
4) Campaigns (drink healthy, think better)
5) Sponsorship/ Celebrity endorsements
6) Sales promotion (gift offers, scratch cards)

3. RESEARCH & DEVELOPMENT ₹ 152.3 Lacs

Reason: Business can’t innovate without research – it’s as simple as that. Innovation is incredibly
important for all companies and the wider economy, and can give businesses a competitive
advantage. R&D can lead to better products, more creative designs and processes which could over
time develop into value for the company. Prove you are an innovative company by investing in a
significant R&D project.

TOTAL INVESTMENT ₹822.42 Lacs

Information Source

https://howtostartanllc.com/business-ideas/energy-drinks

Time Taken to reach the Sales Target of 1Cr

Before we calculated the time taken, the first and foremost thing we did was to conduct an
extensive market survey of comprising approx. 1000 people from the various metro cities of India.
The survey was to determine the like ability of our products, “FRESH Energy Drink” and “FRESH Iced
Green Tea”.

After deeply analyzing the market survey results, we came to the conclusion that 40% of the people
are willing to give our new products a chance. The reason they specified was the low cost and
attractive packaging of the product that makes it seem like a luxury product.

We also drew the conclusion that about 60% of people liked our products and will willingly
reconsider it above other brands, the next time they make a purchase for them.

After analyzing the market and drawing successful conclusions from it, the next we did was to
analyze our production unit. At present, our plant has a capacity to produce 20,000 cans of energy
drink and 30,000 bottles of green tea coolers.

After doing all the above observations and gathering their results, we were able to calculate a daily
sale value for both our products. Considering 40% of production to be consumed,

The sales value for Energy Drink will be:

20000*40*80
100
= ₹6,40,000

The sales value for Green Tea Cooler will be:

30000*40*40
100

= ₹4,80,000

Thus, the total sales value will be:

6,40,000 + 4,80,000 = ₹11,20,000

The above value, i.e. 11,20,000 is our daily sales value for both our products.

Next, we calculated the time taken to reach the sales target of 1Cr which came out to be:

10000000
1120000

= 8.93 days.

Thus, keeping the other factors constant, it will take approx. 9 days to reach the sales value of 1Cr.