Paper-Boat-Beverage Paper-Boat-Beverage Paper-Boat-Beverage Paper-Boat-Beverage Paper-Boat-Beverage Paper-Boat-Beverage

1. Can an Ethnic Beverage
Brand challenge Coca-
Cola In India
1
Time Frame
2017 and Later
Consumer Behaviour
Presentation
NIKHIL B. DATTANI - 200303007
DIVYESH A. BHIMANI - 200303005
KHUSHAL A. AKBARI - 200303001
DEEP S. BADODARIYA - 200303004
UTSAV J. BORAD - 200303006

2. 2
The Case
1. Paper Boat of “Hector Beverages” is a fledging Indian brand, willing to hold its own in the
country against the global giants like “Coca-Cola” and “PepsiCo.”.
2. Neeraj Kakkad( Former Coca-Cola Executive) who set up Hector Beverages in 2010 after
rejecting Ideas in areas like education, child care and women’s empowerment, as he felt
that it had potential in India due to the popularity of functional beverage worldwide.
3. VT Bhardwaj- MD Sequoia Capital, considers Paper Boat to be a “path breaking” product
which has the “potential to transform the beverages landscape in India.”
4. Also in the first half of 2016 Coca-Cola and Pepsi were pushed out of the top five highest
sold beverages in modern trade outlets in India by fruit juices from Dabur and PepsiCo,
and the decades-old rose drink Rooh-Afza by Hamdard.
5. Kakkar and his co-founders thought of Indian beverages only after their first two product
launches — Frissia, a protein drink (in 2011) and Tzinga, an energy drink (in 2012) —
failed to create waves.

3. 3
The Case
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Hector Beverages moved its headquarters from New Delhi to Bangalore in 2014. Paper Boat
has sailed a long way since then. From two flavours in 2013 — Aamras (sweet mango) and
Jalzeera (cumin and lemon) — Paper Boat currently has a portfolio of 13 flavours
Hector Beverages has two manufacturing plants — one in Manesar near New Delhi and the
second in Mysore near Bangalore.
Hector Beverages has raised $42 million from angels and venture funds like Sequoia
Capital, Catamaran Ventures and Foothills Ventures.
Key pillars of Paper Boat’s success are its design, packaging and messaging. Infusing
tradition and authenticity with a contemporary feel has been central to Paper Boat’s
philosophy.
The packaging, which is unique, functional and efficient, led in this space. The pricing is
premium and the advertising stance with conversations with consumers is unique as well.”
Paper Boat is a premium beverage and priced more than double that of Pepsi and Coca-
Cola’s products. Pointing out that Paper Boat’s price is intimately linked to the product
quality
It can certainly grow to become a ₹1,000 crore brand. However, if it can break the price
barrier it has the real opportunity to break open the cola market.

4. 4
• BRAND – PAPER BOAT, Founded 2009, First Introduced in 2013.
• HEADQUARTER- GURUGRAM, INDIA
• PRODUCT TYPE- DRINK
• SECTOR- FOOD PRODUCT
• TAGLINE- “DRINKS AND MEMORIES”
• USP-Real Fruit Extract, Traditional Flavours, Childhood Memories
• PARENT COMPANY- HECTOR BEVERAGES PVT. LTD.
• HEADQUATER- BENGALURU, INDIA
• MANUFACTURIN PLANT- MANESAR( Near New Delhi) & MYSORE ( Near Bengaluru)
About Paper Boat

5. • Global Soft Drink Industry- $310 Billion (2015-19)
• Expected Growth Rate- 5.8%
• Indian Beverage Industry- $230 Million(of 65 Billion food processing industry)
• Major Sectors in Indian Beverage- Tea and Coffee (Approx. $87 Million)
• Carbonated Drinks Market- Approx. 284 Million Crates/Year
• Coca Cola: 56%
• PepsiCo- 34%
• Soft Drinks- 46% of the total market out of which;
• Bottled Water- 24%
• Non Carbonated Drinks- 30% ( Inc. Juices(24%), Rest is Energy Drinks
etc.)
• Mineral Water Market- $50 Million (Approx. 65 Million Crates) approx. ₹160 Billion
• Increase in Aerated drinks- 3 to 14 servings/person.
• Current Growth Rate- 15% Expected to grow by 16-17%.
Industry Overview

6. • Beverages account for $230 million in the $65 billion food processing industry in India. In
terms of volume, total soft drink (carbonated beverages and juices) market is estimated at
284 million crates a year ($1billion)
• The market is predominantly urban (75%) and 25% contribution comes from rural
areas
• Market Size of ethnic beverages as of 2016-17 is $250 Million.
• Market Size of unorganized sector is 1% of the unorganized sector.
PESTEL Analysis- Indian Market

7. PESTEL Analysis- Indian Market- Analysis
The consumption of aerated beverages in India has increased from 44 bottles per
capita, in 2016 and is expected to grow to 84 bottles by 2021. The non-alcoholic
beverage segment can broadly be classified under three categories:
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Carbonated drinks
Fruit drinks
Functional drinks.

8. Segmentation
• The view to target urban India, particularly aged above 20 years old.
• Geographical target was crafted with a view to reach out to
communities that had left their native homes to other parts of
the country in pursuit of work and domestic demands, and
everyone associates it with “The good old days”.

9. Targeting
• Paper boat is majorly targeting people, overwhelmed with Indian
beverages by bringing back nostalgic memories.
• People who prefer natural beverages over aerated ones, who generally
go for fruit based beverages or natural juices. With no preservatives and
high percentage of natural fruit content in its products, paper boat caters
to this group of people.

10. Positioning
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Paper boat has positioned itself as a brand of traditional Indian juices and
drinks.
Variants have ‘Indianness’ and innocence, portrayed through
their marketing campaigns.
• People can relate to the drinks and hence give them a sense of reliving
their childhood.

11. Marketing Mix(Paper Boat)
Product
• Paper Boat created a pleasant
experience with its unique
combination of ‘Drinks and
Memories’
• Most ingredients are naturally available
spices, thus differentiating itself as a
niche
• Salty alternatives reaches out to
diabetic capital of the world
• Keeps taste closer to mom’s recipe
Price
• Prices premium as no competitor in
terms of the flavors offered
It clearly indicates that Paper Boat is amongst the highest priced beverage as compared11 to its close
competitors in the 200 – 300 ml range and the second highest after Minute Maid in terms of the price per
ml.

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Marketing Mix(Paper Boat)
Place
• Targeted retail outlets by offering 5% more
profit margin to the retailers as compared
to the competitors
• Collaborated with Indigo Airlines to sell
products on board
• Targeted school canteens.
Promotion
• Relatively subdued because of the
unexpected sales since its inception
• Advertises in newspapers, digital
marketing, social media, and most
importantly by positive word of mouth
communication
• Its efforts of posting images about
childhood memories on FB pages are in
sync with their tagline

13. S.W.O.T Analysis
Strengths •Attractive and unique packaging
•Competitive price points
•Available in variety of Indian traditional flavors
•Good distribution and availability at retail stores
Weakness •Less retail shelf space compared to leading players
•Weak brand backing of parent brand
Opportunities •Tie ups
•New range of winter drinks
•Gift packs
Threats •Direct competition
•Cheaper variants possible

14. 14
CONSUMER BEHAVIOUR
FACTORS EFFECTING CONSUMER BEHAVIOR
• SOCIAL
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Reference Group
Role & Status
• CUL
TURAL
• Social Class- Middle and Upper Class as the prices are higher than the
competition.
• PERSONAL FACTORS
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Age
Personality

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CONSUMER BEHAVIOUR
• BUYING DECISION PROCESS
• Problem Recognition : Make available of the Indian
traditional drinks in the market.
• INFORMATION SEARCH
• Commercial –Television commercial’s, Print Media
Advertisement, and Social Media.
• PURCHASE DECISION: Uncertain
• POST PURCHASE DECISION: Satisfied
• PERSONALITY
• Freudian Theory : Super Ego ( Parent, Controlling &
Conscience)

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CONSUMER BEHAVIOUR
• PERCEPTION
Stimuli 1 – Healthy Drink
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• Stimuli 2- Large variety of (traditional) flavours suitable to
Indian taste and preferences.
• PRICING STRATEGY: Satisfaction based pricing based on
perceived value.
• PERCEIVED RISK:
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Functional and
Physical Risk

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PAPER BOAT ANALYSIS
• Hector’s Paper Boat come in 13 variants some of which are Aamras (45%
mango pulp), Kokum (20% kokum), Jaljeera (8% lime), Jamun (10% Jamun),
Aampanna, Imli and Golgappe.
• Major competitor for this can be Coca Cola’s Minute Maid having 6 variants such as
Pulpy orange (11.8% Orange), Nimbu fresh (5.7% of lime), Guava (15.5%
guava), Apple(17% apple), Mango(11% mango) and Mixed fruit {Mango Pulp
(10.7%), Guava Pulp (2.9%), Banana Puree (2.9%), Papaya Puree (0.3%)}
• Hector’s Paper Boat has comparative advantage over other brands as Hector has
given drinks traditional names which are catchy and attracting the consumer and
also fruit content of Paper Boat drinks are higher than its competitor brands.

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COMPETITOR ANALYSIS
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Considering entire beverage market including juices and water, Coke leads the market
with close to 56% market share, followed by Pepsi with approx 34% market share. Rest
10% includes Parle Agro, Dabur etc
When only carbonated soft drinks are considered, Coke again leads with 55% share
and Pepsi 45%
Sprite replaced Pepsi as the #2 brand.
Mountain Dew is the country’s fastest growing aerated drink but declined to
divulge market share
Coca-Cola emerges as overall market leader without considering the bottled water
sale. It is then followed by PepsiCo
Dabur Real is the market leader in juice segment which is followed by Tropicana
from PepsiCo

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