Paper Boat is a brand of traditional Indian beverages produced by Hector Beverages. It focuses on natural ingredients and flavors from local fruits. The survey found that while taste was rated positively, many felt it was not good value for money due to the price. Most respondents were familiar with the brand and willing to recommend it, but awareness could still be improved. The product is seen as reliable but some thought it was overpriced. Offering discounts and improved promotion could help increase repeat purchases.

1. HECTRO BEVERAGES
PAPER BOAT
SUBMITED BY:-
BANDANA LENKA (18202222)
PRAVAT KUMAR SAHOO (18202244)
RAMANJEET SINGH (18202251)
SANJAY KUMAR SAHOO (18202259)
SATYAM BAIDYANATH (18202260)
SWARNIM GUPTA (18202276)
ARIAN QAYOMI (18202297)
KM ANINDYA SINGH (18202286)
SIDDHANT MISHRA (18202281)

2. INTRODUCTION
DIFFUSING INNOVATION THROUGH “Drinks and Memories “
Paper Boat is a brand of traditional Indian beverage and foods produced and marketed by Hector Beverages,
which is headquartered in Bangalore, India .We all are very fond of pour most innocent memories. Our
childhood, our years of growing up. Those were simpler times, completely unadulterated .A memory here,
and a memory there, still gets a smile on our lips.
NUTRITIOUS BENEFITS
1- Natural ingredients&functions
2- Indiantraditional ingredients
3- Great packaging& hygienic
MESSAGE IN A BOTTLE
 The juice market in India is now close Rs 10,000 crore, nearly the same as the carbonated drinks
segment
 Home- grown beverage makers are using innovative ways of stimulates demand ,launching limited
edition drinks around Indian festivals
 Many are tapping into traditional recipes herbs to flavour their beverages

3. Industry Highlights:
 Globally Soft Drink Industry earnings is $310 billion in the year 2015(expected)
 Only Indian beverages industry contributed to $230 million of the $65 billion food industry
 There was increase in aerated drinks from 3 to 14 servings / person
 The current growth rate is 15% and expected rate is 16-17%
 Paper’s Boat biggest competitor Coke and Pepsico covers almost 90% of the market
 Juices will surpass carbonate market by 2016
Recent surveys indicates that consumers are more health conscious and they prefer more healthy beverages
even if they are costlier. Due to increase in health issues like obesity, almost all are shifting towards non-
carbonated juices or beverages. The survey reveals that there has been huge shift in the beverage segment.
People are shifting from carbonated drinks to non-carbonated drinks. This creates non-carbonated beverages
manufacturers new opportunities to capture the market. The recent reports also states that juice segment is
fast growing with almost 30-35% yearly while fruit drink is growing to 10-15%.
In India beverages segment accounts for $230 million in the $65 billion food processing industry. Only soft
drink that is carbonated drinks and juices market share is estimated at 284 million crates annual ($1 billion).
75% of the market is predominantly captured by urbans and rest of the 25% of the market is contributed by
the rural.
1990 onwards people started living a healthy lifestyle. Drinks or beverages that fit them were water and
naturally processed juices such as tea and sodas. Suddenly juice segment started its pace in the market. But
this also made slowdown in the economy by decreasing the beverage sector by 73.2% in transaction value
and 37% decrease in the number of transactions.

4. 1. Product
It has a product range focusing more on traditional Indian drink that helps one to recollect their memories
through its tagline drink and memories that targeted urban India particularly aged above 20 and specially
those who had gone ahead from their native places for their work. They introduced this product and
positioned in the market in such a way that it connects to the consumers emotionally. Aamras and Jaljeera
these were the two products that were launched at its initial stages. Later 2017 witnessed 14 flavours by
Paper Boat that were available easily in the market. They focused on natural tastes made up from local
ingredients and wild fruits that are jamun and kokum. They especially take care of the ingredients quality
that should be of high quality and should be processed more hygienically. For this Paper Boat has made
direct contracts with the ingredients food processors and this lead to encourage farmers to cultivate best
quality raw materials for them. Such as the recent added product “chikki” made up of peanut and jaggery
that came up with 3 variants – sesame, crushed peanut and rajgira that obtained groundnuts directly Rajkot,
Gujarat farmers. Later it added Banana chips, Aam papad, Namak Para, Gur Papad, and Shakar Para. It also
states that they don’t add preservatives.
2. Place
Hector Beverages main focus was retail outlets by giving them 5% more profit margin to the retailers
.They also get associated with the Indigo airlines to sell its product in planes and they especially targeted
school and college students as Paper Boat was healthy and tasty for their health. It has two level
distribution channel that is manufacturers and distributors. Manufacturers was from two places Mysore
and Delhi and distributors in all metro cities.
3. Price
The product is also competing with non-branded products so Paper Boat had selected very carefully its
product pricing strategy. Currently Paper Boat’s 250ml pouch price is Rs.30 per pack and it also
introduced 1 litre tetra pack at Rs.80 that justifies why consumers should go for a premium product.
Several malls like Dmart are having special discounts on the individual packs. Many competitors such as
Coke, Pepsi, Frooti ,Minute Maid are competing on taste, freshness and Paper Boat, to get differentiated
in the market they targeted offering to consumers different flavours with a high price as these flavours
was not available in the market earlier. It connects to the audience emotionally.
4. Promotion
Paper Boat’s promotion has been little depressed because of its low sales that this brand has
recollected. The main promotional strategy of this product was through newspaper, digital
marketing, social media and websites and mainly they are popular for their positive word of mouth
communication. Paper Boat is also active in social media that not only asks for feedbacks but also
enable consumers to share their memories as the tagline reflects upon. They came up with their
digital short film “Rizwan-keeper of the gates of heaven” that created a humour in the consumers
minds. Their product were customer centric as sharbat-e-Khaas and seasonal drinks such as coconut
water. They also get connected with marketing campaigns through ventures in books such as Jungle
book and Three men in a Boat which were given as gifts with Paper Boat.

5. SEGMENTATION:-
 They basically focused to segment the country, city, density ,languages, climate , area, population to
introduced the Beverages product “Paper Boat “ for more effective and use of the budget. They come up
was crafted with a view to target ,the urban, rural and particularly aged above 20.
 Demographics they focused on age, gender , income , education , social status , family, life style ,
occupation also . They reach out to communities that had left their native homes others part of country
in pursuit of work and domestic demand .
 Psycho-graphics based on life style , activity , interest , opinion concerns , personality , values , attitudes
are like they know if they going to introduced can be attracted by it because it purely focused on the non
- preservatives juice .
 And behavioural, hence they accommodated with the grand epithet of the real juice with paper boat . So
far paper boat seems to have got its mix night. Its ability to continues to juice out success form its
differentiated strategies will, however, be tested over next few years .
TARGTING:-
 Paper boat’s target market are the people between the age groups 20 to above lining in tier 1 cities
/towns .It’s not just the Indian market but also the Indian disport a which is spread across the globe is
also ended the target group.
 The whole concept is not to market this a kid’s product but not as something that brings the childhood
memories back to life.
 Beside the product clicked with the consumer whom are highly attached with 90’s like the 90’s kid.
POSITING:-
 Why was the dawn of the insight that led to beverages brand paper Boat? This is how paper boat
launched a mission to revive those long forgotten liquid traditions. A few years , several sips , and a
successful run of “ Drinks and memories “.Later paper boat produced a new upholding of Indian
food legacy - a foray into “Food and memories “.
 Basically they wanted to be in the Indian mothers and kids love like the aam ras and the papad .
 And how they different from other beverages because they won’t added any other leads products they
only on focused in the prepared pure juice not added preservative or colours to its products. They
prepared it very safely and hygienically manufactured and packaged in rigorous and exacting
standards maintained by international chocolate.

6. SWOT ANALYSIS
Branding delightful nostalgia case study by blue ocean university includes the focus key swot elements.
Strength, weakness, opportunities, threats.
STRENGTH:-
 Attractive and unique packaging
 Competitive pricing points
 Available in variety of Indian traditional flow
 Goods distribution and availability of retail store
 Health and tasty fruit juice
WEAKNESS:-
 Small portfolio of products concentrated in a few categories of food products.
 Limited and only local distribution network.
 Limited target of advertising and marketing.
OPPORTUNITY:-
 The edible oils category is expected to growth at 6% annually until 2021 in developing
countries .others categories performing well within the packaged food are snack chikki,
beverages.
 Consumer in both developed and emerging countries are increasing their internet
purchase reach consumer by creating an omni channel distribution strategy.
THREATS:-
 Slow global growth in the packaged food market smaller gains means smaller room for
outside companies to win market share as must well established brands use their market
dominance to diversify their portfolio.
 Increasing uncertainty keeps impacting developed market and many scenarios and
variables impact the market, making it difficult to have a clear path for the future .

7. Survey-Analysis and Interpretation
As per our objective, we have designed the questionnaire to capture psychographics and demographics
based on the Product. Our survey has primarily captured consumer preferences for the product and consumer’s
perception, role of brand in buying decision process. We have collected 37 responses and we will be analysin g
on these respondent.
Out of 37 respondent, 20 (or 54.1%) are female and 17 (45.9%) are male from 25 different cities. Our
34 (or 92%) respondent are of age between 19 to 30 years and remaining 3 (or 8%) respondent are of age
between 31 to 60 years.
According to our survey, 19 (or 51.3%) respondents have consumed the Beverage last week, 4 (or
11%) respondents have consumed it within last week and so on, and Pie chart shows the respective Last time
consumption of Beverage.
30% of the respondent included Paper Boat in their response, when asked about Brands that come to mind.
But when we allow our respondent to respond on brands in the given options, then 27 (or 73%) respondent
have marked it as a brand known to them.
19, 51%
4, 11%
7, 19%
3, 8%
4, 11%
Last time consumption of Beverage
Last week
Last month
Last 3 month
Last 12 months
Never

8. Around 65% of respondents have heard about the Paper Boat in the last 12 months, while 11% of respondents
have never heard about Paper Boat. In our respondent, they have heard about the brand mostly by Friends,
Family members, or colleagues and at the store (which is 43.2% in both the case, Friends, family members,
and colleagues and at the store).
On the scale of familiar with the brand Paper Boat, we can observe that 7 (18.9%), 5 (13.5%), 7 (18.9%), 8
(21.6%) and 10 (27%) have responded 1, 2, 3, 4 and 5 respectively. Some of respondents are very much
familiar with Paper Boat while some are not very much familiar. Company should focus on promotion to make
customer aware of the Product and Company. As in below pie chart 21.6% have never heard people talking
about the Paper Boat. This pie chart shows how often the respondent heard people talking about “Paper Boat”.
The overall opinion about “Paper Boat” is not so impressive, respondent rated fairly towards neutral to
excellent. So, Hector Beverage has a lot of opportunities to make aware of the Company.

9. Now coming to the first reaction to the Product Boat, Respondents have almost same perception as
compared to Brand. They responded very much similar to the overall opinion. This implies that Hector
Beverage is known by its product Paper Boat.
As from the responses, the rating of taste of the product is successively distributed from neutral to
excellent. 11 (29.7%), 12 (32.4%) and 13 (35.1%) respondent has rated neutral, very good and excellent
respectively. Paper Boat products seem to be little less worth of money. Though, Respondents consider it as
an excellent quality and taste but they don’t completely agree with the price that they offer products. It can
also be seen in the rating diagram which describes Paper Boat in terms of “Reliable, High quality, Useful,
Unique, Good value for money, Overpriced, Impractical, Poor quality and Unreliable”. The products of the
Paper Boat should be sold at discounted price.
As we have seen earlier, 43.2% of the respondents have heard about Paper Boat from their friends,
family members, or colleagues (which is equal to the promotion at store). 24 (67.56%) of the respondents are
more likely to recommend the product “Paper Boat” to a friend, family member or colleague.

10. The above bar graph reflects the perception of the product Paper Boat more accurately. Most
importantly, they consider Paper Boat as a reliable product. 17 (46%) of the respondents has rated as reliable.
One of most interesting fact that can be observed in above bar graph is that 15 (40.5%) of the respondents
have termed as the Unique product. Talking about the negative feedback from the respondents, only 13.5%
has considered it as overpriced. It is good news for Paper Boat that none or very few of our respondents have
considered it as impractical, impractical, poor quality and unreliable.
It can be observed that 25 (67.5%) of the respondent are likely to repeat the purchaser. Whereas, it is found
that 9 (24.3%) of the respondent are not likely to purchase the product. As we have seen in the description of
Paper Boat in terms of value for money, ineffective and overpriced, Paper Boat can shift these 3 (8.1%) of the
respondents to the repeat purchaser. By offering products at discounted price and concentrating in promotion
can lead to these 19% neutral respondent to repeat purchaser.

11. Factor Analysis Result
Factor extraction=84.351%
Consumer Preference Factorin beverages (“paperboat”)
1) Taste/quality-According to our survey, 35.1%, 32% and 29.7% respondent has rated Paper Boat in terms
of quality and taste as Excellent, Very Good and Neutral respectively.
2) Value of money-51.3% are getting value of money.27% can be shifted by increasing quantity at same
price.
3) Packing-62.1% are attracted,16.2% are not attracted and 21.6% can be shifted by packing.
4) Word of mouth-62.1%, will recommend paper boat.
As per the factor analysis conducted , we can infer that all the attributes are significant as only one
component has been extracted .So, equal emphasis is to be given to all the attributes in order to enhance the
sales volume and to expand the potential market share as there is not much variability between the various
attributes .(reffer exhibit 1,2)
(The model is very good, as the cumulative variance is 84.351 %(which is > 60%)
Interpretation
From above analysis we can conclude “Paper boat” which has no issue with taste as data
provide us positive indication. Value of money is which they have to think of nearly 50% are
not getting vale of money. In Indian market it may be biggest disadvantage for this brand.
Packing of paper boat attract customer but it can be improved further by introducing cane.
Word of mouth 62.1% which is good sign to company their productis accepted by marked
and recommended too.
Exhibit 1: data set Exhibit 2: factor analysis Exhibit 3: Questionnaire Exhibit 4: Response

12. Suggestion for Marketing Mix
1. In order to be exclusive in the market, all the variants can be bundled together and it can be promoted as
a gift pack which will invoke the customers to try out all the variants.
2. The major disadvantage is that all variants have positioned itself as a healthy summer drink. So, it should
introduce new variants keeping in view the rainy and winter seasons as well.
3. The placement of the product near the billing counters of the big retail outlets like big bazaar ,spencers
etc. which will invoke the customers for impulse purchase.
4. They should increase the margin of the retailers as they are directly connected to the customers which
will help to increase the sale. So that retailers will prefer to sell more product.
5. Paper boat has confined itself with regard to market penetration. Limited visibility has a direct impact
on the sales growth as well the growth of market share. So, it should come out of its niche marketing
strategy.