Holistic Marketing

Holistic Marketing

The management of Hector Beverages is very efficient and effective. Owner Neeraj Kakkar and James Nuttal were part of Wharton’s MBA programme and with a long time coke hand has made them efficient enough to manage marketing function professionally and sustain a holistic marketing system.

They are performing effective relationship marketing with their distributor and consumer by making a healthy relation with them. They are monitoring  distributor and consumer behavior and trying to uplift with the growing time.

They are very skilled and perform an efficient integrated marketing, totally rely on print and digital marketing against their competition with Red Bull and other drinks who spends so much of investment in promoting their product. And through their integrated marketing they manage to save lot of money.

Internal marketing of Hector Beverages is very much professional. They integrated holistic function, which benefit the distributor, consumer and employee’s of the company.

Their performance in the present scenario is at the peak point. Where they are performing each an every step in a very professional manner, resulting in the growth of their marketing performance. 

 

Marketing Strategies and Importance of serving

Marketing Strategies and Importance of serving 

Tzinga in a very less time, stands in the market for various factors which helps them to dominate the market in competition with the biggie Red Bull and other energy drinks.

The pack itself stands in the crowd. It is flexible soft-pack feel to the bottle and according to their website TZINGA.IN it actually consumes less material then the bottled or can drinks.

The drink comes in 3 flavours-Lemon Mint, Tropical Trip and Mango Strawberry. Needless to say , my loyalities veered towards Lemon Mint. I simply LOVE those two flavours and the combo really hit the spot. The other two were a mix of flavours with Tropical Trip being more grape'y and Mango Strawberry tasting like bubblegum (which was quite a pleasant surprise for me!).Now comes the good part.  A little bit of reading into the fine print and looking up the ingredients online, these drinks contain real ginseng (formerly popular in Twinnings tea) and real guarana.Guarana  is a killer natural alternative to caffeine, which gives you the same amount of kick at a much lower cost to your body. And ginseng, you must already know, has massive amounts of anti-oxidants. So each swig you take from the porta-flask-esque pack of TZINGA, you get a power-packed dosage of uber-healthy stuff that should give you a few more hours of battery life.And I am writing this blog drinking TZINGA, see how much it works.

The cherry on top, each pack costs only Rs.25/- Even I didn't believe it at first, and thought probably they're fibbing about the ingredients or the print must be wrong. But lo and behold, the price checked out and the ingredients are guaranteed natural, and the drink even tasted great!I think it's a great addition to the line of affordable energy drinks available to us.It also made for us some cool flavoured mixers for a round of vodka, limes, rums and whiskeys!

Tzinga targeted group is fragmented in urban areas with the age group of 18-25, mostly students and sportsmen. So their marketing is based on this targeted group and availability of the product to this section. Tzinga is a very new company to established so they are targeting the capital region for now, but with the progress in this very less time, they are expanding their market to the rural areas. With the increase in demand for its efficiency in marketing in the right targeted they will dominating the energy drink market in the near future.

Organisational Buying Behaviour

Organisational Buying Behaviour

Hector Beverages is the parent company of Tzinga. And despite its low price tzinga doesn’t cut corners in its ingreidients. It has the usual suspects like caffeine , taurine and B-family vitamins, while also piling on some exotics like Ginseng and Guarana.

The buying behavior & buying situation of Hector Beverages are

Straight rebuy: In a straight rebuy, the purchasing department reorders bulk supplies such as the chemicals, B-vitamins and the natural exotic ingredients on a routine basis and choose from supplier on a approved list. The suppliers make an effort to maintain product and service quality and often propose automatic reordering system to save time.

Modified rebuy: Hector Beverages in a modified rebuy wants additional participants on both sides and if the out supplier seeks the opportunity they shift the supplier. Which compiles of low price of product and availability of product on time.

New task: Hector Beverages looks for better supplier and when they found larger participant, they gather information and decide the new supplier.

Hector Beverages buying behavior content is vast differ from its consumer buying behavior.

Hector Beverages deals with far fewer, much larger buyers than its consumer do. And because of its smaller supplier base and the importance and power of the larger customer, suppliers are frequently expected to customize their offerings to individual customer base. And whereas customer behavior is limited to its individual choice. Hector Beverages goods are purchased by trained purchasing agents, who must follow their organizations purchasing policies, constraints and requirements, whereas consumer buy the final product. The demand for Tzinga is ultimately derived from its customer demand. The total demand for Tzinga and its services is inelastic, much not affected by the price change but consumer behavior largely depends on price change. The demand for Tzinga and its services tends to be more volatile than the demand of its consumer. The geographical concentration helps Hector Beverages to reduce selling cost, but doesn’t help the consumer behavior as it requires easy availability. 

     

Consumer Behaviour

 Consumer Behaviour

Tzinga is preferred by the targeted group of student and sportsmen ageing 18-25, which is in high requirement in todays youth scenario. Consumer buy Tzinga as it is cost efficient in compare to other energy drink and taste good. It is a tangible good of use & through in daily basis, and the behavior of the consumer for this product is positive because of its packaging also. A plastic pouch is always compatible in case of tin can’s.

However consumer behavior towards Tzinga depends on various factors. In cultural factor consumption of Tzinga is based on the fundamentalism of the family to agree or disagree. As it is a energy drink and its consumption have side effectd to.

In addition to consumer behavior for Tzinga, social factor is a important factor of its sales as it represent individual Roles and Status. People in general will not consume Tzinga in a social place for reference groups, family, status effect, as it is not categorized as cool as Red Bull or any other drink.

Personal factors like age and stage in the life cycle also determined consumer behavior towards Tzinga. As it is an energy drink, it is limited to desired group and mark a heavy competition. Also occupation and economic stand is a important factor for the buying behavior of individual. Consumption  and buying of Tzinga is based on individual personal characteristic.

Distribution Decisions & Sales Management

Distribution Decisions & Sales Management

The distribution channel of Tzinga is very effective. They have targeted their groups and distribution is generally in the urban place. Which helps them to distribute efficiently with the availability of good infrastructure and transportation. They have design the product in a very clean  

Some of the other challenges that the group had to face included a fragmented distribution network and different tax laws. But after overcoming the hurdles, Hector Beverages has a strong distribution network of 150 dealers and it is looking at a setting up another plant at Hosur in South India. Tzingainitially was sold in the capital region and now it has spread to 22 states

They have design the design the distribution channel of Tzinga in a very effective and organized.

It is the basic chain of distribution

1. Producer

2. Distributor

3. Wholesaler

4. Retailer

5. Consumer

Tzinga is efficiently  managing the distribution channel by hiring skilled professional and trained them to overcome the market obstacles. They are very much effective to reach the designated target places and and are given tablets to monitor the route place of the stores and monitoring the complaints.

Control of the distribution channel is under proper management as Tzinga is a new company and cannot afford mismanagement, specially in the distribution field.

Sales is the key factor of any business and Tzinga is promoting it sales through it price promotion. Sales function is the key ingredient in marketing the product campaign and consist of collective incentive tools, and it is designed to stimulate quicker or greater purchase of the product. Advertising offers reason to buy Tzinga and sales promotion of it offers an incentive.

Sales promotion of Tzinga includes the tool for its consumer promotion, such as (samples, coupons, cash refund offers, prices off, premium prizes, patronage rewards).

Promotion Decisions, Communicating to masses and individual target groups

Promotion Decisions, Communicating to masses and  individual target groups

Advertising can be a cost-effective way to disseminate messages, to build a brand preference or to educate people regarding the product. Tzinga start by identifying the target market and their buying motives.

Money- Tzinga has not much spend on advertising the product. They have not yet promoted the product in the mainstream television which is a major cost-effect for them. They completely promoting through outdoor advertisement. Their objective of promoting the product is targeting the area of interest. They are relevant to the print and digital advertising.

Mission- Tzinga is a very new product in the market and and their mission is to accompolish the goal of competiting in the market with the biggie and increase sales in the targeted group.

Message- Tzinga is promoting its efficiency through its price promotion and delivering the message of its utilization in the cheap cost

Media- Tzinga is primarily concerned with print & digital media.

Measurement- Tzinga is continuously monitoring customer satisfaction and the sales impact in the targeted group.

Tzinga in a very less time has covered the targeted group and now enlarging it to the corners of the region. They started communicating to the masses by promoting the brand in the live platform and live objectification. They are communicating with the mass through its product effectiveness and not by celebrity promotion.

Tzinga is completely communicating to the targeted groups which is 18-25 students & sportsmen by promoting the product in the right place. School, colleges, sports stadium.

Pricing Concepts, effects and decisions

Pricing Concepts, effects and decisions

Pricing is one of the major aspects of a brand to breakthrough in the market. Pricing the energy drink at Rs 25, Tzinga is cheaper than rivals Gatorade and Red Bull largely on account of the advantage offered by domestic manufacturing and lower packaging cost.

The biggest benefit for Hector Beverage to breakthrough in the market is the price of the product, as they are local brands and most of the other energy drinks right now in India are imported and import duties on the finished product is around 60%. We import our ingredients and pay duties close to 10%. So that has helped Tzinga offer lower prices.

Neeraj Kakkar and James Nuttal were part of wharton’s MBA programme which ostensibly didn’t recommend forking out large sums of money on instinct alone. So they took the benefit of being a local manufacturer and got instant price and compared to other product. They name their price and breakthrough in the market. As per the fact of price elasticity, the demand is already high for the product and its emerging in the market.