Industry Slide

Go to Market StrategyThe Brand Burn 1Indian Energy Drinks Market2Analysis3Target MarketCoca-Cola Burn Repositioning4INDEXFinancials8

The Brand

Industry

Target Group

Coke Burn

Comm

Distribution

FinancialsAnalysis

Choti Bakar

Brand to be revitalized Burn 3.1 Insights and Drivers3.2 Competition Mapping3.3 Need for Revitalizing BurnCommunication Strategy PreLaunch, Launch and Post Launch567

The BrandBurn was introduced by Coca-Cola in India in 2009Target Consumers the trendsetting, socially active and adventurous young adults, who require energy to experience life to the fullestPriced Rs. 75 for 250 mlVariants Apple Blackcurrant/Apple Kiwi/PineappleAvailability Delhi, Mumbai and BengaluruThe Marketing Mix of BurnBTL MarketingBurn Car Brand imagery and sampling at partiesBurn Curate Sponsoring fashion showsBurn Mix Sponsoring DJ ToursBurn Click targeting photographers to capture Burn Cans

Product & PricePromotion Fashion, Music & Art

Place HORECA industryNight channel accounts - Pubs, resto-bars and clubsPremium modern trade outletsGymsAirports

Yet Burn hasnt got the Fire!

Industry

Target Group

Coke Burn

Comm

Distribution

FinancialsAnalysisBURN

Energy drink marketCloud 9

Power Horse

Tzinga

Burn

Red Bull

XXX

Risks

Industry worth: INR 700 CroreCAGR: 25% till 2015Highly fragmented marketBarriers for entry: Low Opportunity of growth: High

Energy DrinksRed BullCloud 9XXXPower HouseTzingaBurnYear of Launch200220082011200320112009Volume (ml)250, 335180, 250250250250250VariantsOriginal/ Sugarfree/ + Cranberry/Lime/BlueberryPremium/ Wild Berry/ Pomegranate/ Red grapesRejuve/ Nicofix/ MinusRegular/ Sugar free/ ColaLemon Mint/ Tropical Trip/ Mango StrawberryApple Blackcurrant/ Apple Kiwi/ PineapplePrices (Rs.)95, 120, 21045, 9575752575PositioningSportingTasty and healthyIndulgenceFree your EnergyFunctional valueIntense EnergyPropositionGives you Wings Big on EnergyExperience, Extreme, ExcitementFeel the EnergyWake up, ValueFuel the Fire

Target Group

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryENERGY DRINKS MARKET IN INDIA

Needed for staying awake to work/study for longer/odd hours; The second factor is to unwind/celebrate with social groups

Taste is loved by Indians. They want more flavors in the energy drinks to avoid the cough syrupy taste. Every player is coming out with new flavors to meet this need

Price is a key deterrent for the people to go for energy drink. Barring Tzinga, all other players are priced around Rs. 75+ for 250 ml. A low priced Tzinga is perceived to be ineffective. Indian Market is very price sensitive

Awareness among retailers, clubs and people is very low. Apart from Red Bull, Tzinga and Cloud 9, other brands are not well known

High Caffeine Content in energy drinks diverts people to prefer substitutes such as sports drinks, juices etc.

Male Dominated customer base; Females need to be targeted as well

Wine Shops, Clubs and Pubs are significant point-of-sales to reach out to consumers who would use the energy drink as a mixer or an alternative to alcohol Risks

Target Group

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryANALYSIS INSIGHTS & DRIVERS

5Burn scores very low on brand equity because of low awareness and availabilityTzinga and XXX are only perceived to be of good tasteTzinga is the only drink which people consider as a value for money optionRed Bull scores the highest when it comes to brand equityRisks

Target Group

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryCloud 9 has a market share but hasnt been able to differentiate itself wellANALYSIS INDUSTRY MAPPING WITH BRAND EQUITY

Low Brand Awareness

Other brands that have launched after Burn have more market share

Occupies less mindshare less availability at potential point-of-sales

Has been essentially a me-too product

Negligible ATL Marketing and Publicity

Couldnt leverage success of Burn brand globally and Coca-ColaBurn, I havent heard of it, I know of Red Bull, Tzinga Shreejita, IIT D StudentThe sales of energy drinks is as much a function of marketing as it is of distribution Rohan Vyavaharkar, Communications Head, Red Bull India

The term energy drink is synonymous with Red Bull, which is famous because of its ads and heavy publicity Vishal Suri, Vice President, Evalueserve Energy Drink is cluttered now due to rise of new entrants in the industry and most of the products have been positioned on similar lines Aditya, Summer Intern at TzingaRed Bull is an established brand; No-one knows that burn is Cokes brand Aditya Jain, Asia Pacific Research Services Manager at BCGRisks

Target Group

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryBURN NEED FOR REVITALISATION

6

Workaholic Corporate

Midnight Oil Burning Student18 27 yearsSEC- A1,A2 B-schools, engineering colleges, Medical Colleges, CA aspirantsDifferent benefit seekers: Studying, Gaming, extra-curricular activities22 35 years SEC- A1Residing in Corporate hubsDINKs, Yuppies, BachelorsUsually mix Hard-drinks with energy drinks, Hedonism is a top priority, Loves House music, Energy Drink ~ social statusClub Hopper

23 35 years SEC- A1,A2 Residing in Corporate hubsHighly motivated individual, dedicated towards his/her job, Ambitious, driven by a desire to succeed

High Priority18 35 years SEC- A1,A2,B1Health conscious; either a gym goer or a sports playerNeeds a drink to energize himself but measures his sugar and carbohydrate intake

Fitness Freak NeedsStay awake for workPeer GroupSuccessStay awake for studyPeer GroupInstant energy before any eventUnwind/celebrate with social groupsSubstitute to alcohol/mixer with alcoholRisks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget GroupTARGET GROUP

Is NowThe new an energy drink which revitalizes your mind and makes you think faster Coca-Cola Burn

Available inThree variantsThe ProductPriced at Rs. 60RePositioning

Intense Speed Providing you the to improve your performancewith the excellent tasteCoca-Cola BrandAssociationCoca-Cola BurnFocusAspirational ValueTarget GroupWorkaholic Corporate, Midnight Oil Burning Student, Club HopperFlavorsApple blackcurrant/Apple kiwi/Pineappleto mix well with alcohol and for young crowdCaffeine contentHigh: 0.32%PricingMid: Rs. 60/250 mlPackagingDark party colorsChannel highlightsWine shops, Pubs, restaurants, discosPositioningIntense SpeedBrand PersonalitySpeed

FeaturesRisks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget GroupInstant energy for street smartness, innovativeness and brillianceBrain Energon!Increases performance by improving concentration The Fuel for Mind!Shake that Body and Mind!Energize with the instant kickCOCA-COLA BURN

Pre-Launch

Launch

Post-LaunchCreate a buzz & curiosity through campaigns two weeks before the launchNewspaper: Ad type: Back page, Colored, Solus

TVC CommercialsMild teaser ad with a to be continued story

OOH MediaBus stops, Metros, Billboards Burning soon YouTubeTeasers: 7, 6, 5 days to go..Teasers ads to be contd..

Social MediaFacebookCompetitions to keep people engrossed with BurnWhen do you need speed?Burn the fire in you!

Twitter#Intense Speed

Offline

Online

How to Promote Burn?

Risks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget GroupCOMMUNICATION STRATEGY PRE-LAUNCH

9

Pre-Launch

Launch

Post-Launch

Offline

OnlinePress:Full Back page ad on the launch day in leading English dailies e.g. HT/TOIShowcase Coca-Cola Burn with flavours, price and outletsA Mega Launch: EventLaunch parties in the select cities in a weekParties organized by Bolt, inviting top class DJs Avichi, David Guetta, etc.Attendees to include page-3 peoplePre-Launch Contest winners invitedMalls:Activation campaigns through malls and food courts Can you taste the Fire?A Mega Launch: EventTwitterati , Bloggerati would publicise Burn through social media at the party #burning at F BarPromotion of the event on the InternetCoverage of the event on our Facebook, Twitter and YouTube channelGive impetus to the campaign in one month

How to Promote Burn?Risks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget GroupCOMMUNICATION STRATEGY LAUNCH

10

Pre-Launch

Launch

Post-Launch

Workaholic Corporate

Midnight Oil Burning StudentClub Hopper

Offline

OnlineOOH at metro stations, bus stops etc.College festivals like Malhar, MoodIndigo, Crossroads and RendezvousBurn the Rubber event for bikers in association with YamahaBurntender make cocktails & mocktails with burnSongs/Videos at clubsLadies Nights with BurnSports Bars with Burn speed gamesVending machines at corporate offices etcIntroduce mini burn cans at Rs 30 and provide them during breaks in food courts/cafeteriaBurn arenaAndroid and iOS based free appProvide details of the nearest pubs, restaurants, wine shops where burn is servedGamesDiscount coupons etc.

Burn.inRegister for offline eventsDrive online events

Suggest Clubbing spots, cocktail recipes on Facebook, Twitter

Buy adwords, social media ads on cost per impression basis

How to Promote Burn?Risks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget GroupCOMMUNICATION STRATEGY POST-LAUNCH

ClubsPubsRestaurantsInstitutionsOfficesWhere will consumers buy Burn?Key AccountsFuture ConsumptionImmediate ConsumptionWine ShopWhat about these new points of sale??Being part of key accounts, will be handled by company salesperson onlyThrough the distributor networkMargin to retailers (higher): 20%Product bundling with alcohol e.g VodkaFMCG segment: Intense distributionA number of intermediaries involved to reach to the massesDepartment storeSuper marketModern RetailGrocery storesSmall outletsSutta shop near corporateShop in collegesWine ShopClubsPubs

InstitutionsOfficesEstablished distribution system Competitions among wholesalers to drive sales of BurnRisks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget GroupDISTRIBUTION GO TO MARKET STRATEGY

Phase 1 : Launch Target0-2 years Phase 2 : Launch Target3-5 yearsMumbaiDelhi NCRBangaloreHyderabadGoa

ChennaiPuneChandigarhKolkataMangalore

Target cities chosen on the basis of our TG

Risks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget GroupGuesstimateUpper middle & High Income class 30%

Age Group 18-4050%Burn Consumption0.15 x 0.09 x 4Revenue

INR 35.8 croreGuesstimateUpper middle & High Income class 25%

Age Group 18-4050%Burn ConsumptionRevenue

INR 16.5 crore0.1 x 0.15 x 4DISTRIBUTION ROLLOUT STRATEGY

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Risks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget GroupGrowth % of BurnINR CroreMarket Share of BurnFINANCIALSTie-UpsExpansion+YamahaMusic Shows + Sport Events

RESEARCH METHODOLOGYConsumersPoint of SalesIndustryNeedBrand EquitySecondary ResearchCompany WebsitesArticles/BlogsReports, White PapersSocial MediaOnline survey of 155 people; About 100 students; 50 corporates;Assessed need, price and point of purchase of consumersPrimary survey with 46 retailers/pubs etc.Understood procurement, consumption and way of selling energy drinksPrimary survey with 65 people in malls /markets;Measured Brand Equity of competitionInterviews with 10 people across research firms, consultancies and playersUnderstood marketing and distribution strategies of playersHelped understand the players in the industryHelped understand the needs and drivers of the market and how it operates

Success of Plan

Consumer Perception

Research Methodology

Research Design

Consumer AcceptancePrimary Research

ConsumersPoint of SalesSurveyed 10 people in streets of Ferguson Road and Deccan Road, PuneSample was equally from student and corporate backgroundSampleNeed/Reason of buying energy drinkPlace from where drink is boughtInhibitor of buying the drinkCriteria while buying the drinkUnderstoodSurveyed 11 resto-bars/kirana stores in streets of Ferguson Road and Deccan Road, PuneSample was equally between bars and storesSampleBrands stocked; ReasonSales of brandsProcurement of energy drinksMajor consumers of energy drinksReason of consumption of energy drinksUnderstood

Success of Plan

Consumer Perception

Research Methodology

Research Design

Consumer AcceptanceHelped understand the needs and drivers of the Pune market and how it operatesPrimary Research

Tested our BrandRESEARCH DESIGN

Brand AwarenessConsumersBars/KiranasRed Bull is the name for energyOther brands e.g. Cloud 9 and Tzinga are also knownA few know about BurnRed Bull is the name for energyOther brands e.g. Cloud 9 and NRG are knownNone know about BurnPricePeople are sensitive to the high priceEnergy drinks should be priced lowerWill stock brands that are in demand irrespective of the price; but can get influenced on sole brand for high marginsBrand EquityRed Bull scores very high in parameters e.g. Trust, Esteem and EffectivenessThey value Known BrandsRed Bull holds high value; all bars/stores stock it due to its demandPoint of PurchaseConsumers of energy drinks will buy them wherever they are available; but prefer storesBars Energy drinks are used both as alcohol mixer and substituteRetailers Students/Corporates and Party ordersPositioningConsumers were of the opinion that intense energy stands for Red BullBrands are synonymous with energy

Success of Plan

Consumer Perception

Research Methodology

Research Design

Consumer AcceptanceCONSUMER PERCEPTION

PromotionBars/KiranasAre ready to taste/try product through sampling/ festsPlacement of the product can be adjusted with good margins or demandLow PriceIf similar taste and energy is made available at low price, they can change their brand (even Red Bull)Are willing to stock low priced Burn to showcase varietyCan partner solely with Burn in view of high marginsCoca-Cola AssociationCoca-Cola is very trustworthy; hence they are ready to buy BurnCoca-Cola will not cause supply problemsDistributionConsumers can buy from wine shops, sutta shops apart from stores and pubsBars/Kiranas are ready to push the product in case its made well awareWine shops are ready to bundle the energy drink with alcohol

Success of Plan

Consumer Perception

Research Methodology

Research Design

Consumer AcceptanceConsumersCONSUMER ACCEPTANCE

Success of Plan

Consumer Perception

Research Methodology

Research Design

Consumer AcceptancePlatformTarget AudienceCollege Fests50,000Marathons10,000DJ Events20,000Pubs50,000www.burn.in20,000Games20,000Vending Machines50,000Social Media20,000Yamaha Events1,00,000TVC Commercials5,00,000Print Ads5,00,000OOH Media5,00,000 Total18,40,000

We will reach out to about 19 lacs of our Target Audience through our campaignsWith a conversion rate of 5% we will add about 1 lac customers annuallyWith a consumption of a can per week. we will sell 4 lac cansResulting in revenues of INR 2.4 crore, with a profit of INR 0.1 crore

Risks

Coke Burn

Comm

Distribution

FinancialsAnalysis

The BrandIndustryTarget Group