Analyzing a Brand Extension

1. Ankit Verma
PGP30246
Analyzing BRAND EXTENSION by Parle Agro

2. How the analysis works – The STAGES
1 2 3 4

3. Knowing about the Project - Introduction
CAFÉ CUBAPARLE AGRO
CARBONATED
DRINKS
PARLE AGRO
Manufacturer Category Brand Extension

4. Going About It....
The Company The Category The Extension

5. Going About It....
The Company

6. PARLE AGRO – The ‘Company‘
6,00,000
Outlets
75
Manufacturing
Facilities
3500
Channel
Partners
2500 CR+
Company
Est 1959

7. PARLE AGRO – The ‘Market Share‘
INDIAN SOFTDRINK MARKET
2014 2013 2012
2.8
%
60%
2.9%
3.00 %
Parle Agro Market Share

8. PARLE AGRO – The 'Growth Rate‘
INDIAN SOFTDRINK MARKET
60%
Parle Agro Growth Rate
2012 2013 2014
12.2 % 14.2% 22.4%
2012 2013 2014
23.3% 20.2% 19.1%
Soft Drinks Industry Growth Rate

9. Going About It....
The Category

10. The Category - Carbonated Drinks
Sales Volumes

11. The Category - Carbonated Drinks
Volumes Growths

12. The Category - Carbonated Drinks
Company Shares
% Volume
Coca-Cola Pepsico Parle Agro Others

13. Going About It....
The
Extension

14. The Extension – CAFE CUBA
Parle Agro's re-entry into the Carbonated Soft Drinks
Operations
Started
Carbonated
Drinks sold to
Coca-cola
Launched
Appy Fizz
Launched
Hippo
Launched
Spiced
Soda
Launched
Café Cuba
1959 2005 2009 20121993 2013

15. The Extension – CAFE CUBA
Parle’s Product Share by Volume
By % Volume
Frooti Hippo Appy Fizz Bailley Café Cuba

16. The 4 Ps of Marketing for Cafe Cuba

18. Café Cuba
First-of-its-kind
- New Concept, entirely new
category in the beverage segment
Revolutionizing
- a revolution' born
of coffee beans
Strong Product
- The identifiable taste,
not competing with other
products
Coffee Flavored Soft Drink
- Combination of roasted coffee
beans with carbonated fizz
The Product

20. The Price
Rs 15 for
250 ml PET
Bottle
Rs 20 for
250 ml can
Slightly
Premium
Pricing

21. PLACE

22. The Place
Targeting Urban
Areas
Targeted at the Youth
Hotels, Restaurants, Canteens, Sup
'markets, Big Retailers

24. The Promotion – Cafe Cuba Ad
Campaign

25. The Promotion – Cafe Cuba “COFFEE
REVOLUTION“
Targeting Urban
Areas
Targeted at the Youth
Pan-India marketing & brand communication campaign introducing 'The Coffee Revolution'
Edgy, bold & rebellious promotion, targeting experimental mind-set of the progressive Indian youth
TV played the
lead medium
Aggressive
focus on
‘Digital Brand
Building’
Supported
by Print,
Outdoor,
Cinema Ads
Aim to
connect with
evolving
youth of
today
Delivering the message of
'The Coffee Revolution'
with the edginess of an
underground movement

27. Segmentation – Based on Type of Soft-
drink

28. Segmentation – Based on Demographics
Demographics
Youth (10-19 yrs.)
-Majority of Consumers
- Spending Power
- Loyalties develop with age
Adults (25+ yrs.)
- For diet and caffeine free
products
Young Adults (20-24 yrs.)
- For diet purpose

29. Segmentation – Based on Psychology
Lifestyle
Personalities
Frequency of use
Attitudes
Image of “Self-Expression”
Associating “Cool” with
the product

31. TARGET
SEGMENTS
- Targeting Individuals, not Families
- Targeting the Youth segment
- Creating a passionate
experience
- A ‘Revolutionary’ campaign
to create loyal customers
- 70% of carbonated beverage market still
located in urban areas
- Initially targeting major urban areas in India
- Edgy, Bold and Rebellious
- Targeted at the experimental mind-
set of the progressive Indian youth
Target Segments and Consumers for
Cafe Cuba

33. Soft
Drinks
Carbonated
Beverages
Coffee with
a Fizz

35. Carbonated Drink
Provides Refreshment
Non-Alcoholic
Thirst Quencher
Modern and Inspirational

37. Revolutionary
India’s First Carbonated Coffee
Different Taste
Coffee with a Fizz

38.  www.cafecuba.in
 www.parleagro.com/cafe-cuba.html
 GMID - www.portal.euromonitor.com/portal/statistics/tab
 http://articles.economictimes.indiatimes.com/2013-09-24/news/42361327_1_new-
product-frooti-market-share
 http://www.livemint.com/Companies/TsSmeRi8MRhSkpXXgsQQvJ/Parle-
reenters-fizzy-drinks-market-with-Cafe-Cuba.html
 http://www.campaignindia.in/Video/383045,cafe-cuba-takes-colas-head-on-
beckons-youth-to-join-the-revolution.aspx
 http://www.business-standard.com/article/management/we-aren-t-targeting-
families-but-individuals-with-cafe-cuba-prakash-chauhan-113092401002_1.html

39. THANK YOU!!