Value based segmentation 

who drink energy drinks simply for the experience and the taste
Strength enhancement athletes and fitness
enthusiasts who uses energy
drinks as a pre workout drink
to increase energy
Cognitive capability late night corporate workers
and students who believes
caffeine as a s stimulant  uses
energy drinks to  their minds
activated for late night work
and projects 

Pleasure who drink energy drinks

simply for the experience and
the taste

Distribution channels for energy drinks  -  

 Supermarkets/hypermarkets
 Convenience stores 
 Drug stores
 Mass merchandisers
 Kiosks

Targeting :
 According to the value based segmentation Urzza should
target the segment who drinks Urzza for pleasure , because
Urzza doesn’t contain caffeine and tastes better than the rest
of the energy beverages in the market. 
Urzza should target kiosks for school , college and office
goers to increase their other distribution channels . Along
with this , it should target supermarkets, convenience stores,
drug stores( because it is devoid of caffeine) . 

PROMOTION
Urzza should use in line marketing( social media) to educate
the masses about the harmful effects of caffeine and how
urzza is different from the rest of the products of this
category. This will increase the target segment for urzza.
 

Problem-

Market position and segmentation of urzza is not well defined.

How can the beverage market be segmented and who should urzza target.

Q.1. How can the beverage market be segmented? Who should Urzza target?  (ST)
Problem-
Market position and segmentation of urzza is not well defined.Energy from the energy
drinks comes from sugar but people perceive that energy comes from caffeine present
in other energy drinks.Urzza doesn’t have stimulants such as guarana and taurine
present in other energy drinks such as red bull.People have the perception that energy
drinks should taste like red bull which are due to these stimulants.This is an availability
heuristic problem.There pricing is of a premium energy drink but they have marketed it
for all demographics.Urzza was not launched in multiple variants.
Proposed Solution-
Segmentation-
Urzza should segment the market according to behaviour,geographic, demographics.
Target-
Urzza should market Urban and Suburban teenagers along with youngsters that drink
other energy drinks.Along with this Urzaa should use kiosks for targeting office going
segment for energize them.Even during parties youngsters can use it as an alternative
to other energy drinks.Urzza should use through the line marketing to educate about the
harmful effects of stimulants and
Caffeine with alcohol.This can help in increasing the market share of urzza.

Positioning-
Urzza should do above-the-line marketing that spreads awareness about the cause of
energy drinks, sugar.
                        

 Q.2. In your view, what positioning options are available for Urzza? Discuss their pros
and cons.(P)

    

Q.3. Discuss the pros and cons for Urzza in creating a product category different from
energy drinks that could generate mass appeal.    ()   

Pros-

Cons-
Pricing,                                                                          
2. In your view, what positioning options are available for Urzza? Discuss their pros and cons

Positioning
•Creating a favorable & distinctive image (or position) for the
product in the mind of the consumer.
•To Develop a conducive position, brand requires optimal
Points-of-parity (POPs) and Points-of-difference (PODs)

Perpetual map of URZZA

Strong Caffeine

Red
Bull

Coke
Cloud Zero Coke
Pepsi
9

Pepsi
Next
No Sugar/ High Sugar
Healthy

URZAA

No Caffeine

Positioning Pros Cons

1.Usage of Vit B & C , Already established brands like

tartaric acid instead of Red bull have got first mover
guarana & taurine make advantage and Negative
high appeal to perception in this segment
Healthy and power drink health conscious consumers makes it hard to position as a
and also its immune to healthy drink .
regulations applicable to
caffeinated drinks.

2. Other competing
products tastes bad and
price is also higher .

Tasty Sports Drink 1.Favourable perception as an 1. Limited market size of INR 2

(low sugar) energy boosting drink as billion as opposed to the energy
compared to energy drinks drink market at INR 7 billion
2. Low scope of gaining
2. Higher growth rate of market significant mkt share due to first
segment at 30% p.a. (as mover advantage of less costly
opposed to 20% p.a. for energy competing products
 drinks)
Family-friendly Energy Booster 1. low penetration, low 1.Loses some appeal to the
(No caffeine) per capita consumption youth, its most significant target
so we can cater to audience
people of all ages
2. Inherently good 2.Higher priced than most
perception by virtue of drinks in the market segment
its positioning as a
family drink 3.
3. Potentially a unique
product within its
segment; creating a
niche within the
segment

Answer to 3:

Alternatively, Urzza could position itself as a 'Non-caffeinated Budget Energy drink'.

Following are some of the pros associated with such a proposition:

1. We would tap the untouched 'Rural' and the semi-urban markets. We would choose
Sushil Kumar (wrestler) as the brand ambassador (from a remote Delhi village), with
whom the rural audience (especially the youth) can connect to. Also, he had won a
Silver medal at the 2012 London Games 2012 (a hot prospect). This would also adhere
to the non-selection of 'brand hot celebrity' criteria opted by Chauhan. 

2. We would have an advantage here because of our relatively lower prices than other
energy drinks. By introducing the perception of 'Budget drink', we would be politely
emphasizing to the rural audience of the comparatively lower price of our product while
they search for an energy drink.

3. We would also be correcting the misconception of caffeine-requirement for the

'energy-component' in energy drinks. This would also aid in being perceived as a
'healthier drink' to the rural parents while buying an energy drink for their sports-
enthusiastic children

However, following are some of the cons:

1. Due to being positioned as 'Budget drink', the parent name 'Bisleri' might lose some
market share from the ultra-rich/rich audience

2. Some initial efforts might be involved in correcting the misconception of caffeine-

requirement for the 'energy-component' in energy drinks

3. Possibility of Some errors in determining the possible market size of the rural
segment due to being an untapped one
Q.4. Do you think the target volume set for Urzza is achievable? Justify. What should
Urzza do next?(The way forward)

It would be difficult for Urzaa to achieve this volume scale as this target would require it
to capture ~50% of the market share

1. Sports Celebrity Endorsements highlighting the health benefits 

2. Line extension by including new flavours like watermelon, lichi
3. Diversify the product into rural markets by introducing a new variant with different
pack size and price points( 35 Rs for 200 ml)
4. Contemporary challenge. People prefer caffeinated drinks as of now. Change our
tagline to “ Non-caffeinated drinks’’ to spread awareness.
5. Navigating cash challenge of brand creation by giving
perks/incentives/merchandise to the employees to meet Urzaa sales targets.