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Marketing Group Assignment 250827 150840

The case study analyzes Tzinga, an energy drink launched by Hector Beverages in 2011, focusing on its market positioning, product specifications, and competitive strategies. Tzinga targets young urban consumers with a health-focused, affordable alternative to premium brands like Red Bull, utilizing grassroots marketing and eco-friendly packaging. Recommendations for improvement include enhancing brand awareness, expanding distribution, and leveraging its Indian origin to compete against global brands.

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0% found this document useful (0 votes)
12 views16 pages

Marketing Group Assignment 250827 150840

The case study analyzes Tzinga, an energy drink launched by Hector Beverages in 2011, focusing on its market positioning, product specifications, and competitive strategies. Tzinga targets young urban consumers with a health-focused, affordable alternative to premium brands like Red Bull, utilizing grassroots marketing and eco-friendly packaging. Recommendations for improvement include enhancing brand awareness, expanding distribution, and leveraging its Indian origin to compete against global brands.

Uploaded by

souvikkumarsingh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MARKETING

CASE STUDY:
TZINGA
Presented by- Group 5
TABLE OF CONTENTS

01 Energy Drink Market

02 Introduction to Tzinga and Industry Analysis

03 Marketing Mix

04 Competitors’ Strategy

05 SWOT & Relaunch Analysis

06 Problem Identification and Recommendations


Energy Drink Market
Energy Drink Market
Market Players
Marketing Strategies
College activations Sports Sponsorships

Lifestyle and Aspirational Branding Strong Brand Recall


INTRODUCTION TO TZINGA

HECTOR BEVERAGES ABOUT TZINGA


Founded in 2009: Released in 2011
Hector Beverages aimed to offer healthier, Natural & India-focused: Made with lemon
tastier alternatives to soft drinks. juice, guarana, ginseng; no
carbonation/preservatives; lemon-mint
Backed by Catamaran Investment (N.R. flavor for Indian tastes.
Narayana Murthy’s $129M VC fund) +
Footprint Ventures + 4 angel investors. Youth-Centric Target: Aimed at urban 12–35
segment — students, professionals, athletes.
₹6 Cr funding secured — Catamaran’s first
startup bet, showing confidence in Hector’s Launch: Started in Delhi-NCR & Bangalore
validation, team, and efficiency. with sampling promotions; positioned as a
safe, affordable energy boost.
PRODUCT SPECS: TZINGA

SPECS AT GLANCE ABOUT


■ Non-carbonated, preservative-free
APPEARANCE Coloured Liquid with natural ingredients
Mango Strawberry, Lemon ■ Eco-friendly pouch packaging vs.
FLAVOURS
Mint, Tropical Trip metal cans

CARBONATION No Carbonation NUTRITIONAL CONTENT


CARBOHYDRATE 12 g
PACKAGING &
Pouches, 250 ml
SIZE SUGAR 11 g

Guarana, Ginseng, Mixed Fruit PROTEIN 0g


Juice Concentrate, Acidity
INGREDIENTS
Regulator, Taurine, Caffeine, FAT 0g
Inositol, D-glucuronolactone
PORTER’S 5 FORCES
RIVALRY AMONG THREAT OF NEW BARGAINING POWER
COMPETITORS ENTRANTS OF SUPPLIER

Intense rivalry: Red Bull, ● Existing players exploring cheaper ● Low switching cost,
Cloud 9, Power Horse, Burn variants standardized inputs → weak
(Coca-Cola), SoBe (Pepsi), ● International brands eyeing Indian supplier power
Gatorade, XXX expansion ● Low raw material cost, easy
substitution of inputs

BARGAINING THREAT OF
POWER OF BUYER SUBSTITUTES
● Large consumer Alternatives: Fresh juice,
base → weak buyer power packaged juice, tea/coffee,
● Attractive low-price options sports drinks, soft drinks,
(₹25) drive adoption enhanced water
STP
SEGMENTATION TARGETING POSITIONING

■ Geographic: Tier-I cities, ■ Young students and working ■ Core Positioning:


urban stressful lifestyles professionals between the age Value-for-money, healthy energy
group of 16-30 years drink
■ Demographic: Age 16–30;
students, professionals; ■ Lower and middle income groups ■ Youthful, cool image via edgy
male-dominated but female campaigns
users rising; priced for ■ People living in urban areas -
aspirants/seekers Metros, Tier-I and Tier-II cities ■ Eco-friendly low-material
packaging, anti-litter stance
■ Psychographic: Fits ■ Sport enthusiasts / Performers
late-night, high-energy ■ Differentiation: low price,
youth lifestyle packaging | Parity: instant energy,
natural flavors
■ Behavioral: 250ml packs for
light & heavy users;
segmentation by awareness
& response
MARKET MIX (4 Ps)

PRODUCT PRICE
● Made with natural ingredients ● ₹20 for 200ml vs ₹85 Red Bull
● Healthier alternative: no carbonation, ● Affordable pricing to democratize energy
preservatives drinks
● Positioned as a youthful lifestyle brand ● Strong value-for-money for mass market

PLACE PROMOTION

● Launch in Delhi-NCR, Bangalore ● Free sampling in colleges, youth spaces


● Retail focus: malls, gyms, cafes, colleges ● Grassroots visibility over mass-media ads
● Dedicated team with loyalty programs ● Health, affordability, youthful energy
positioning
COMPETITORS’ STRATEGY
RED BULL MONSTER ENERGY XXX ENERGY

● Premium global brand: ● Distributed by Hansen Natural, ● Premium niche brand for
“revitalizes body & mind” aggressive branding high-income youth
● High-price strategy ● Heavy reliance on extreme sports ● IPL KKR sponsorship boosted
● Sports sponsorships sponsorships early visibility
● Strengths: leadership, global ● Strong punch taste for hardcore ● Variants: NICOFIX, REJUVE
identity, strong campaigns consumers with immunity focus
● Weaknesses: high price, limited ● Low visibility in India vs Red Bull ● ₹75 pricing, positioned
portfolio, replicable recipe between Red Bull & Tzinga
● 60%+ share in Indian market

STRATEGIC POSITIONING OF TZINGA


➔ Affordable, health-focused alternative to premiums
➔ One-fourth Red Bull’s price, wider youth reach
➔ Indianized strategy: local taste, grassroots sampling
SWOT Analysis for Tzinga
Strengths Weaknesses

● Most affordable at ₹25 / 250ml ● Lacks aggressive marketing (ads,


● Eco-friendly, easy-to-carry endorsements, promotions)
packaging ● Limited availability across Indian
● Three flavors: Lemon Mint, Tropical
cities
Trip, Mango Strawberry
● Natural ingredients: lemon, ● Low brand awareness due to poor
ginseng, guarana marketing
● Only one manufacturing unit

Opportunities Threats
● Expand availability in universities ● Aggressive marketing in Tier II &
● India’s young demographic rural areas
● Tie-ups with major sporting events ● Strong competition from Red Bull’s
● Expand target beyond youth to dominance
adults ● Health concerns around caffeine
● Aggressive marketing in Tier II & consumption
rural areas
Relaunch Analysis 2017-18

● Reformulation & Compliance: Removed ginseng per FSSAI rules;


12-month international testing.

● Targeted Pilot Launch: Rolled out in 6 metros + Assam to rebuild


trust.

● Aggressive Expansion: Aimed for 100,000 outlets in 6 months, from


just 7,000.

● Low-Price Focus: ₹20 for 200ml, 60% cheaper than rivals via spout
pouch packaging.
PROBLEM IDENTIFICATION

Internal

Marketing and Brand Operational


Distribution Challenges Positioning Ambiguity
Awareness Constraints

External

Market Perceptions of
Intense Competition Price vs Paradox
Energy Drink
RECOMMENDATIONS
1 2 3
RECO. 1 RECO. 2 RECO. 3

Stronger Positioning Integrated Brand Balance


Communication: Building: Blend social Promotion–Pricing
Highlight value, pouch media with mass Trade-Off: Scale
packaging, natural marketing & visibility, even with slight
ingredients. sponsorships. price increase.

4 5
RECO. 4 RECO. 5

Improve Availability & Distribution: Leverage Indian Origin Advantage:


Expand to kiranas, supermarkets, Position as local challenger to
Tier-II cities. global MNCs.
THANK YOU

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