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..