This document provides details of a case study for the launch of soft drink brands Canada Dry and Canada Crush by ABC Bottlers in the Indian market. It includes market research findings for Pune, the business and distribution plans for ABC Bottlers covering their sales targets, product pricing, promotion strategy, and distribution network. It also outlines alternatives for launching the brands, focusing on modifying consumer habits, discounted pricing, distribution strategies involving different dealers and retailers, and promotion plans targeting youth for Crush and adults for Canada Dry using advertising, celebrity endorsements, and tie-ups.

1. Presented by: Aditi Agarwal-61
Romil Ved-83
Manshakaur Dhillon-91
Rishi Uppal-104
Yash Parekh-113
Jehan Bharucha-118

2. CASE FACTS
 Beverage and confectionary company founded in
1969 by the merger of Cadbury Brothers Limited and
Schweppes.
 The market for soft drinks in India has a bright
future.
 Decided to enter India with the following brands Canada Dry
 Canada Crush
 Dr. Pepper
 Lemon, soda and a cola drink

3. CASE FACTS
 Company philosophy: to maintain a lean organization and
outsource most activities.
 Task of franchised bottlers – produce & distribute the soft drinks.
 ABC Bottlers was given the territory of 5 districts:
 Pune
 Sholapur
 Satara
 Kohlapur
 Sangli
 All India sales target for year 96-97 – 8 million cases.

4. BUSINESS PLAN FOR ABC BOTTLERS
 Market research revealed – Pune market had 5000 soft
drink outlets and consumed 1.5 million cases per year.
 70% of sales was accounted for by retail trade,
30% of sales were accounted for by institutional sales.

5. SALES
Soda
30%
Lemon
15%
Cola
40%
Orange
15%

6. COLA
Thumps Up
Pepsi
Coke
0%
40%
60%
SODA
Bisleri
Duke
Others
5%
30%
65%

7. LEMON/ORANGE
Gold Spot/Limca
Mirinda/7 Up
Candy Dry/Crush
Others
35%
20%
30%
10%
35%

9. THE DISTRIBUTION PLAN
 Mr.Khan – C&F agent for Pune
 Sub-dealers were chosen and territories were assigned
 Margin for C&F agent – Rs.20 per case
 Margin for sub-dealers – Rs. 16 per case
 Task assigned to dealers – Spot selling
 40 Outlets per day.
 Each retail outlet to be serviced twice a week.
 150 outlets call cycle.
 Plan to sell 40 cases per day per truck.
 1000 cases per month

10. Distribution Cost was estimated to be Rs. 20,000
per vehicle
DISTRIBUTION COST
Per Vehicle
• Lease Rent- Rs. 12,000/• Diesel per month- Rs.
2,000/• Staff Salaries- Rs. 4,000/• Rent of Godown & other
Rentals- Rs. 2,000/-

11. PROMOTION PLAN
 Intensive advertisement required in Pune – start 10 days
before launch and continue 90 days after launch
 Ads on TV in the months of April, May and June everyday
 Ads on 2 channels – Doordarshan & Zee TV
 Main media at Pune – Hoardings
 6 press insertions in TOI / Sakaal and POP in retail shops
 Promotional tie-ups with movies

12.  Local budget excluding TV – 5 lakhs for the launch
 National TV budget – 5 crores
 Industry Norm – Spend Rs. 10 per case for product
promotion
 Thus ad budget should not exceed Rs. 8 crores per
annum
 Target audience for Crush – teenagers (romantic
theme)
 Canada Dry ‘cool campaign’ did not appeal to the
Indian audience

13. PRODUCT FLAVOR AND PACKAGING
 Crush:
Flavor: the flavor was like fresh orange with low
sweetness and no after taste in the mouth.
Packaging: “Betsy Bottle” with frosty effect.
 Canada Dry:
Flavor: a combination of
ginger/vanilla/lemon, low sweetness and no after
taste in the mouth.
Packaging: the green bottle matched the golden
color of the drink perfectly.

14. PRICING
 Price realization of bottle- Rs. 6.10
Raw materials
Rs. 2.00
Taxes
Rs. 2.50
Overheads
Rs. 1.60
Manufacturing cost
Rs.6.10
C&F Agent’s commission
Rs. 0.65
Cost to retailer
Rs. 6.75
Cost to customer
Rs. 10.00
 Commission to distributor- Rs. 20 per case.
 Commission to sub-distributor- Rs. 16 per case.

15. THE LAUNCH
 Excellent timings of launch.
 Target of penetrating 40% of
the outlets in the first year
achieved.
 Pattern of sale:
Pune
50%
Kohlapur 25%
Sholapur 25%
AUGUST
10%
JULY
12%
Sales
APRIL
18%
MAY
24%
JUNE
36%

16. AFTERMATH OF LAUNCH
 Mr. Bhasin was awarded the “bottler of the month”
 Mr. Bhasin’s interview with the press.
 Retailers’ resistance to the product.
 Mr. Khan, the C&F agent’s discontent.
 Problems faced by Mr. sanjeev, the sub-dealer.
 Mr. Alam, the retailer, said that owning Cadbury
Schweppes bottles were not economical.

17. 5 MONTHS AFTER LAUNCH
 Meeting with the distributors.
 Mr. Bhasin addresses a sales meeting.
 Restructure the distribution system.
 Tie up with Hallmark cards for joint promotion.

18. PRODUCT LEVELS

21. PURE ECONOMIC BENEFIT
Cost- Money that a customer pays.
Benefit- He buys the Cold Drink Bottle

22. What are the segments that
should be addressed?

23. Feedback
Problem
recognition
Information
search and
evaluation
Purchasing
Process
Post purchasing
behaviour
Decision
Process

24. Factors Affecting Consumer Buying
Behaviour
 External Environment
1. Cultural Influences
2. Social Class Influences
3. Social Group Influence
4. Family Influence
5. Personal Influence
 Individual Determinants
1. Information Processing
2. Perception
3. Learning and Memory
4. Motivation
5. Attitudes
6. Personality and Self Concept

25. Consumer Buying Process
Problem
Recognition
Information Search
And Evaluation
Purchasing Process
Post Purchase
Behaviour

26. SEGMENTATION & TARGETING
 Demographic Segmentation
1.
2.
3.
4.
School Children
College students
Young Adults
Working people
 Socio-Economic Segmentation
1.
2.
3.
4.
5.
Upper Class
Upper Middle Class
Middle Class
Lower Middle Class
Lower Class

27. SEGMENTATION & TARGETING
 Geographical Segmentation
Rural
2. Urban
3. Semi Urban
1.
 Behavioural Segmentation
People Who Drink Alcohol
2. People Who Drink Health Juices and Fruit Juices
3. People Who Enjoy Aerated Soft Drinks
1.

28. POSITIONING
 CANADA DRY
“The Champagne Soft Drink”
 CANADA CRUSH
“The Orange Drink with Orange Pulp with Each
Gulp”

29. Comment on the choice of people
shortlisted

30. TRADE
SEGMENT
(70%)
1. STORES
2. RESTAURANTS
3. CANTEENS
INSTITUTION
AL SEGMENT
(30%)
1. HOTELS
2. CANTEENS
3. DEFENSE
PUNE
MARKET
(5,000)
Outlets

31. PLANNED TO PENETRATE 40% OF OUTLETS
IN PUNE
PUNE MARKET
Plan to Penetrate
Remaining 60%
5,000 Outlets X 40% = 2,000 Outlets
*The 40% included both the
segments i.e.
1. Trade Segment
2. Institutional Segment

32. Name of Dealer
Background
No. of Territory
Truck
s
Mr. Khan
C&F Agent
•Runs Flour Mill
•Financial Sound
•No Distribution Experience
5
Mr. Sanjeev
•No Distribution Experience 1
Koregaon Park
•Financially Weak
•Runs more than 1 store Satara Road
•Achieving the target is easy
•Runs Canteen
1
Hadapsar
•No Distribution •Region Coverage Fatima Nagar
•Financially Weak
Promising Candidate
Mr. Apex
Shri Enterprises
Innocon Foods
M.K. Marketing
Pimpri/Chinchwad
Deccan Gymkhana
Aundh
Parts of Camp
•Add on with Chiwda
•Market knowledgeT&C
Agreed to the
•Runs Stores the •Selling Experience Canada of
1
Parts
•Can use
same resources to sell
Very Motivated
•No Distribution
Pimpri/Chinchwad
Dry
•Financially Weak • Knowledge of
Consumer Buying•Sells Chiwda
1
Singad Road
Behaviour and Choice
•No Distribution
Shadashiv Peth
• Spot Selling
•Financially Weak
•Distributes Mineral Water
•Financially Weak
1
Kothrudh

33. ESTIMATED SALES DISTRIBUTION






Mr. Khan
Mr. Sanjeev
Mr. Apex
Shri Enterprises
Innocon Foods
M.K. Marketing






50%- 1,000 Outlets
10%- 200 Outlets
10%- 200 Outlets
10%- 200 Outlets
10%- 200 Outlets
10%- 200 Outlets
100% -2,000 Outlets

34. What are the various alternatives
for launch?

35. ALTERNATIVE LAUNCH PLAN
GOAL:• To achieve 40% market share by the end of 1st year in aereated drink segment
CRUSH :Target market – youth
CANADA DRY:Target market – adults
ADVERTISING BUDGET – Rs.8 Crores

36. MODIFYING CONSUMER HABBIT:Changing currently held habits & converting customer in favour of our products
Explain the benefits
Discounted Pricing
Socio –Economic Factors

37. DISTRIBUTION STRATEGY:FACTORY
C&F AGENT
FEEDER
DISTRIBUTOR
DISTRIBUTOR
DISTRIBUTOR
(PUNE)
(Kolhapur &
Satara)
(Sholapur &
Sangli)
TELE-CALLER
(All Regions)

38. DISTRIBUTION STRATEGY:-
DISTRIBUTORS
DEALERS
DEALERS
RETAILERS
TELECALLERS
DEALERS

39. PROMOTION PLAN:-
CRUSH :•TV ADVERTISEMENT ON YOUTH ORIENTED CHANNELS OR PROGRAMS
•GIVE FREE REFRIGERATORS TO THE RETAILERS WITH CRUSH PRINTS OVER IT
•GET TIE-UPS WITH FOOD CHAINS LIKE SUBWAY , KFC ETC.
• BUS STANDS ,BUS BACK PANELS & ILLUMINATED KIOSK FOR PROMOTION
•SPONSOR COLLEGE FESTIVALS WITH HIGH FOOT FALLS
•INTRODUCE BIGGER SIZE OF BOTTLES WHICH WOULD INCREASE THE
CONSUMPTION & GET DOWN THE DISTRIBUTION COST
•TARGET CHILDREN BY GIVING ATTRACTIVE FREE GIFTS

40. PROMOTION PLAN:-
CANADA DRY:-
•CELEBRITY ENDORSEMENT FOR THE PRODUCT
• TV ADVERTISMENTS FOR 6 MONTHS WITH SHORTER LENGTH
• ARTICLES AND WRITE UPS ABOUT ITS UNIQUE FLAVOUR IN VARIOUS
NEWSPAPER AND MAGAZINES
•PROMOTE IT VIA VARIOUS COOKING SHOWS WITH NEW MOCKTAIL &
COCKTAIL RECEPIES USING CANADA DRY
•TAG LINE WHICH WOULD PROMOTE IT AS A DRINK WHICH IS GOOD FOR
HEALTH
• COME UP WITH ATTRACTIVE TINS & PET BOTTLES