Comet Soda is launching a new sports drink called Hyper-Light. To maximize its success, Comet Soda should focus on key customer segments and ensure Hyper-Light has a unique value proposition. Comet Soda also needs to capture 12.5% of the electrolyte drink market to break even. To achieve this, Comet Soda will need aggressive marketing campaigns, celebrity endorsements, and guaranteed distribution channels to drive awareness and sales in the initial launch markets.

1. Comet-Soda
New Product Launch
UTD Consulting Case Competition
Team Blue
Arundati Chadaga
Narotham Anam
Mehul Doshi
Aditya Kanitkar
Vikrant Sagar

2. Introduction
Firm Infrastructure
HR Management
R &D Technology
Procurement
Inbound
Logistics
Operation
Outbound
Logistics
Marketing
and Sales
Services
Margin
3
Strong
Brand
Mix
Strong
Supply
Chain
Production of Concentrates
Bottling & Packaging
5 Bottling Plants
Distribution Network
Our Recommendation
↑ Launch Hyper-Light and focus on growth aggressively based on the declining
state of overall soda-drink beverage industry !
↑ Hyper-Light must not be a “me-too” product and focused on key customer
segments with tailored offerings!
↔New Product Launch
↔Hyper-Light- A new foray into sports-drink
↔Lower Sugar/Higher Electrolytes/Increased Appeal
? How to maximize the success of Hyper-Light Launch

3. State of the Industry
Key Industry Drivers
┌ Health Index – Increasing focus on healthy diet
┌ Disposable Income- Lower Levels leads to more focus on bulk
packaging and generic brands
Key Impact
 Falling per capita consumption despite increased consumer
spending.
0.5%Total Market Size $ 28 Billion
Product InnovationProduct Innovation
 Dynamic Consumer Demands
must be taken in account
especially for product packaging
and sizes
 Changing Taste Perception leads
to demand newer products
Organizational
Capabilities
Organizational
Capabilities
 Large Size beneficial due to
robust production capabilities
and scale economies
 Ability to expand globally and
ramp-up production and
distribution.
Market PositioningMarket Positioning
 Dominant Market share
beneficial for price dynamics with
strong consistent branding
 Price-competitive and well-
established product loyalty
State of
the
Industry
Critical
Success
Factors
Data sourced from 1) IBIS World – Industry Reports 2014, 2) Data Monitor Beverage Market Research

4. Key Success Factors for a Product in Beverage Industry
• Higher Revenues and Sales with leveraged network effects
• Accessible Products - Focus on Distributions and Inbound Logistics
• Product Availability – Mitigate high impact of raw material and concentrates supply
• Marketing and Sales
• Strongly articulated Value proposition
• Aggressive marketing and clear brand associations
• Production Optimization for Higher Margins
• Economies of Scale – Minimize sourcing overheads and reliable output volume
• External Contracts and Partner Relationships- Minimize SG & A costs.
Top 3 Beverage Producer – Competitive VRIO
advantages
Integrated Supply Chain and In-house Brand Design
and Marketing
Negative Brand Association for Healthy Positioning
Late-mover effect leading to higher cost of
acquisitions and constrained celebrity endorsements
Large size of Strongly associated market (77 M)Sports
drinks users with increasing Health-conscious users
(103M)
Diversification opportunities such as a base for
emerging combo-products
Parity Products may lead to market erosion due to
lower barrier of entry for top competitors.
High risk of regulated sports drinks or restrictions on
potential markets like school kids.
S
W
O
T
Cost Structure
Data sourced from 1) IBIS World – Industry Reports 2014, 2) BevIndustry Reports

5. Which factors should Comet Soda consider and act on before launching Hyper-Light into the US beverage market
Customers
Identify Market Segments and
Clear Value Proposition
 Demographic
 Cultural
 Geographical
Is it possible to sell at price set by market by balancing
current production costs
Competitors
• A highly fragmented market indicates a demand for local
responsiveness.
• Top Competitor response - Parity products at lower cost
• Impact – Price inelasticity and higher negotiation power for
channels.Organization
Key Resources available after
constraints
• Production
• Packaging
• Distribution
Key Activities
• Capabilities of the firm in
Marketing & Sales
Channels
! Incremental Market Profit
! Are current retailers open
to provide Shelf Space
! Ideal Distribution Channels
Super-Markets / Grocery stores /
Vending Machines
Data sourced from 1) U.S BLS 2) AmeriBev Trade Reports

6. Based on the target price and up-front fixed costs, what share of the electrolyte
drink market would Hyper-Light need to capture in order to break even?
Market Share
• Total electrolyte drinks market - 400 million gallons
• Electro-Light sales in millions of gallons- 50 million gallons at
16-ounce units
• So, Electro-Light would need to capture a 12.5 percent
market share of electrolyte drinks in order to break even
Net Margin -10 cents
Fixed Cost investment - $40 million.
So, Electro-Light would need to sell 400 million units in order
to break even
Electro-Light needs to be the 2nd-favourite drink in its category to break-even

7. What would Comet Soda need to do to gain the required market
share for Hyper-Light following its launch?
Customer
 Segment Consumers by
Geography and Cultural
aspects.
 Maintain overall product
perception and Image
 Quality and Taste/Coloring
must match consumer
demand
Brand Marketing
 Leverage top-3 associations
through pricing and Bundling
with other top-selling
products in segmented
markets
 Celebrity endorsements and
partner relationships
through promotional
campaigns
Capabilities
 Guarantee Distribution
Channels in major retail
stores initially for awareness.
 Develop resources to handle
accelerated sales and
production demands
 Ensure ramp-up production
and sustained aggressive
marketing
Product Launch Clusters
Low Price/ Bad
Timing
Good Research/
Good Timing
High Price/
Poor Support
Reduced Risk

8. Recommendations
Marketing Campaigns
 Guerilla marketing in SF/NY marathons, Sports events and matches
 Launch of fun-group fitness events like Zumba, aerobics, yoga and free distribution
of sample pouches in these events
Product Recommendations
 Use of Hyper-light as a base for bubble teas, Shaved ice, popsicles, base for flavored
customizable concoctions
 Launch product in 12 ounce packets that makes it lucrative to try. These can be
targeted to young adults and millennials (16-21)
Geographic Markets
 Launch of product in top 10 active cities of the US: Dallas-Fort Worth, Boston,
Philadelphia, Chicago + Evanston, New York, Pittsburgh, Atlanta, Los Angeles,
Miami, Tampa

9. Thank you
We open the floor to your questions