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.

Branding and Brand Management

Branding and Brand Management

Hector Beverages, manufacturers of energy drink Tzinga, have appointed Carat to manage media duties of the brand. The account will be handled by the agency’s Bengaluru office.
On the appointment, Suhas Misra, director and co-founder, Hector Beverages, said, “The category is still underdeveloped and when compared to similar markets, the future growth potential is massive . They wanted a strong and dedicated media agency who can partner them in their growth plans with respect to consumer and media understanding, and they found Carat as a perfect fit.”

Chirantan Chandran, media consultant, Hector Beverages, added, “ they were delighted to see the response they received from Carat on the brief and their huge passion for their business. Their understanding of the brief and the customized media solution recommended by Carat using a combination of insights and cutting edge tools were something they were looking for. They are pleased to have them as a partner and are sure that they would contribute significantly to the business growth.”

On the win, Kartik Iyer, managing director, Carat, said, “It has always been their effort to deliver consumer and business focused solutions and services to all the clients across India and are delighted that Hector Beverages found value in our proposal. We are happy to see that Hector Beverages reposed faith and confidence in their cutting edge media solution backed by relevant consumer insights.”
The product retails at Rs 25 for a 250 ml pack and is available in three flavours. The brand is currently targeted in the 18 to 25 year age group and claims a presence in over 25,000 outlets across India.

Services Marketing

Services Marketing

Hector Beverages said Tzinga is in the category which is still underdeveloped and when compared to similar market, the future growth potential is massive. Tzinga is a pure tangible good, where a service lies in the satisfaction of consumer.

The service of Tzinga for its availability, is increasing in a massive way. It is dominating the urban market and is available in almost every kirana store’s fridge. With its availability it is covering the market and leads to easy accessibility to the consumer. The energy drink is potent and gives you the energy to go about your day.

The employees in the distribution and marketing channel of Tzinga have been given tablets with inbuilt GPS system that optimize their kirana store route for the day and to alleviate the challenges of sales & distribution.

Moreover its packaging is a eye catching one which helps the consumer to look and choose. The price is the adorable aspect of this service, which undoubtedly lead the customer to buy it along with factor of its taste.

Tzinga believes to grow in the market; they need to have a lot of variability of services. So they started investing in good hiring of talented people, which can manipulate the market and work efficiently if there are any obstacles in its sales & distribution. And to polish their skills they have invested a lot of money in the training procedure.

Tzinga is continuously monitoring customer satisfaction level and developing customer information database and system for more personalized service, specially online.     

Product Concept and Product Management

Product Concept and Product Management

Tzinga is an energy drink concept product, largely targeting groups which in need of extra energy to perform their regular activities in a more enthusiastic level. The product is launched to provide a good quality energy drink which can sustain in the market, in competition with the established biggie with a better quality of taste and which can be affordable on a daily basis easily.

The concept of the product is to vertilized and provide energy to the body by breaking carbohydrates and transfer into glucose in a much faster rate, which helps us to stay active and alert for a much longer time. The customer in other sense, is buying energy. Having energy drink on a regular basis is not necessarily good so Tzinga has guarana , a naturally occurring herb that perform the same function without some of the negative effects.

The concept of the product is enlarging and they are bringing more flavors to grab and attract new customers as per their taste. And  their eco packaging system, and the small size of the pouch which is very convenient to carry is what customer expect.

Tzinga is a very new product in the market so branding of the product is not that strong but they are giving a very tight competition with the biggies and has already dominated few markets.

As the time goes the brand has to come up with new strategy and concept, which will determine the potentiality of the product. It will encompasses all the possible augmentation and transformation the product or offering in the future.

Product Life Cycle of Tzinga

Product Life Cycle of Tzinga

Tzinga is a Indian energy drink brand, parent company is called Hector Beverages. Within merely two years of opening a factory and launching the product, it is churning out about a million of its utilitarian pouches a month from its Gurgaon factory.

Initial sales of the brand were less as it took time to cover the market and make a stand among the biggie, and also they don’t have much advertising strategy to promote the brand. But a clear edge in pricing Rs 25 for a funky , 200 ml pouch, against 95-120 by the competitor has mark their presence in the market. And it target group is between 18-25 which is very popular among students and sportsmen.

At present scenario Tzinga is available in  45000 outlets, 45 cities and 22 states and a clear market leaders in Bangalore, Hyderabad, Goa & North-east but lags Red Bull in Pune and Mumbai. During the current fiscal they were in 200 percent growth in sales and has closed an $8million investment round by Sequoia Capital with participation from existing investors Cataram Ventures and footprint Ventures.

  Tzinga is a long term planning product, which has not yet reached its maturity level. It is the beginning of a long road. Success will mostly depends on distribution reach and also returns don’t happen that quickly. It has not yet out with their promotional strategy and much advertising of the product, but expected to outlaid the market with their marketing strategy. It is a new product in the market and they are growing with a great pace. It will be of very much interest to see, how far they can grow and stabilize the profit or it will decline because of increased competition.

Market Structure and Competitors analysis

Market Structure and Competitors analysis

In such a diverse market full of energy drinks, Tzinga has become one of the top selling energy drinks. And it is the pioneer energy drink in India with innovation on product, packaging and distribution and the most important aspect is the price, which they sold for Rs 25.  But it lacks behind and pitted against Red Bull where it falters, which dominates the energy drink category and also gives chances for more players to enter the category.

From smaller company like the pune based Greenways Food & Beverages to big textile companies like Raymond ( Kamasutra energy drink), the number of energy brands is on the rise with the youth as their target audience.

Pegged a notch lower than the Red Bull at Rs 95,  (Restless Action) drink expect to take the category forward and has pitted itself against the market leader. Meanwhile pune based  Greenways Foods & Beverages is also re-entering the category with its brand ( I Can) as there is a chance for second and third player to mark in this category when there is a single leader like Red Bull.

Indian brands like Cloud Nine and XXX have suddenly become low key after advertising heavily across media and even associating with certain IPL teams. Amway has also withdrawn from the category after launching its XL brand of energy drink four years ago.

Fruit drink Concentrate Company Rasna has decided to lower the price points for the energy drink category by creating a mass segment which is still vacant in energy drink. However the real monster in the cupboard is, well Monster. After its 2002 launch in the US, decades after Red Bull, the brand has already grabbed 29 percent  market share. There is no saying what could happen if it decide to take a plunge in the Indian market with serious talent.

Consumers Consumption & buying motives

 Consumers  Consumption & buying motives

Tzinga is a very popular FMCG product  in a very less time and it’s because of the perception and motives behind buying of goods and services by the customers. Customer buying motive depends on various factor and circumstances, right from price, availability  cultural, social, personal, Psychological, occupation and economic factors.

 Tzinga in content  of cultural aspect is based on the consumption and availability of the drink in the surrounding and sometime it becomes a social factors to consume a energy drink as a popular culture in the youth. Whereas price becomes the major advantage for the brand to breakthrough in the market and its availability in the target group section, is helping them to grow and dominating the market without any prime advertising promotion.

People in general buy energy drink not with the brand status but for their necessity, in which Tzinga shoots the bull with their strategy. Personal aspect of consuming Tzinga is based on the fact age and stage in the life cycle, occupation and economic circumstances, personality and self-concept and lifestyle and values.

Customer Value

Tzinga offers the best value for a customer when he is going to buy a energy drink in a store. Tzinga advertising strategy is not as popular but their efficiency of the product value has lifted them with just word-of-mouth promotion. Price is an important aspect of marketing and sales which tzinga dominates through its pricing and its adorable taste retained its customer and attract new one to shift from other energy drink. It satisfied its customer with the its product benefit and services. It is available in the market and has reached corner’s of the urban place.  

Customers estimate which offer they believe, for whatever reason, will deliver the most perceived value and act on it. Whether the offer lives up to expectation affects customer satisfaction and the probability that the customer will purchase the product again.

The company has have recently brought this product and is readily available into the market, and it is indeed a very useful product. The taste is really very good and refreshing then its competitor Red Bull, Battery, XXX . The best thing about the product is that it is completely natural with high energy content, and it doesn’t have any kind of side effects. The energy boost which it gives is very helpful at times. The best thing about this drink is that the price range is very nominal which makes it favorite for many people..

Tzinga- The intro.

Tzinga

In a world where so many energy drinks flood the market, Tzinga is a brand that completely stands out. And not just because of its ultra cool, green packaging but also because of its taste and nutritional value. From this brand comes the Tzinga tropical enrgy drink. The energy drink with a good taste is emerging in the market, challenging the biggie like the leviathan of energy drink, Red Bull and Monster. In a very less time of opening up a factory and launching the product, they have a good stand in the market and has a ubiquitous presence in the fridges of kirana stores in urban India. Churning out about a million of its utilitarian pouches a month from its Gurgaon factory. The biggest strategy of  Tzinga to break through in the market, is the price promotion of the product.

Tzinga came with a concept of energy drink which is cheap, tasty and and flavourable. They have mostly targeted the young generation from 15-30 as student, sportsmen and working professional  are in need of a drink which can vertilize them time to time, and with least side effects..

Tzinga is the flavor to beat, not just for its undeniable proposition in a Rs 25 energy drink, but also for its daring, infectious earnestness and down-to-earth values...